FinTech and Transformation of the Financial Services Industry ------ SSE Executive MBA Dr. Robin Teigland Stockholm School of Economics [email protected] www.slideshare.net/eteigland @RobinTeigland


The Presentation inside:

Slide 0

FinTech and Transformation of the Financial Services Industry ------ SSE Executive MBA Dr. Robin Teigland Stockholm School of Economics [email protected] www.slideshare.net/eteigland @RobinTeigland January 2016


Slide 1

Today’s schedule Morning: Financing Innovation 9:00 to 10:30 Lecture Michal Gromek, PhD SSE, FundedByMe, Lendico, Rocket Internet 10:30 to 11:30 Groupwork: Funding your Startup 11:30 to 12:00 Group presentations Afternoon: FinTech and Industry Transformation? 13:00 to 15:00 Lecture 15:00 to 17:00 Discussion: Disruptor vs Industry Incumbent Anna Fellander, Digital and Futuring Economist, Swedbank Henrik Rosvall, CEO and Founder, Dreams


Slide 2

Groupwork: Funding your startup Prepare a max 5 minute presentation How much funding do you need to get your idea off the ground? Which form(s) of financing will you go after? And When? What will you give in return for financing? E.g., equity, reward, nothing How long will it take for you to provide the return for your “investors”? What do you need to do to prepare for raising financing?


Slide 3

If the rate of change on the outside exceeds the rate of change on the inside, the end is near.... -Jack Welch


Slide 4

What triggers industry transformation? Johnson & Scholes 1997 Politics and government Environment Technology Legal structure Social and demographic structure International/ national economy Industry structure


Slide 5

Two dimensions of transformation Core activities – Recurring actions a company performs that attract and retain suppliers and buyers (profit-making activities) Core assets – Durable resources, including intangibles, that make a company more efficient at performing core activities McGahan, HBR, 2004


Slide 6

Trajectories of industry transformation McGahan, HBR, 2004


Slide 7

1980-1999 US Industries’ Share of Transformation McGahan, HBR, 2004


Slide 8

Industry transformation Picture: http://andrewkarpie.com/wordpress/?p=469


Slide 9

Number of firms in industry over transformation Economies of scale


Slide 10

What trajectory is the financial services industry on? McGahan, HBR, 2004


Slide 11

Digitization of the banking industry


Slide 12

Further changes…


Slide 13

Screenshot from Factom.org


Slide 14

Banking is essential, but banks are not. Bill Gates


Slide 15

What is FinTech? Accenture/CB Insights Technologies for banking and corporate finance, capital markets, financial data analytics, payments, and personal financial management Finance Technology FinTech


Slide 16

What is Fintech?


Slide 17

FinTech World Personal Finance Payments Bitcoin & Blockchain Currency Currency Remittance & FX Lending Crowdfunding Robo-investing & Asset Management Tech Consumer Banking & Saving The Wharton FinTech Club What is FinTech?


Slide 18

FinTech Overview


Slide 19


Slide 20

http://www.slideshare.net/eteigland


Slide 21

2007, NASDAQ acquires OMX Group Unicorns such as Skype, King, Spotify and Mojang founded 2014, FinTech Funding in Stockholm Explodes Long history of “FinTech” in Stockholm http://www.slideshare.net/eteigland/stockholm-49722748


Slide 22

In just the past few years in Stockholm…


Slide 23

Stockholm #2 FinTech city in EU 2010-2014 investment $532 Mln 2014 investment $266 Mln http://www.slideshare.net/eteigland/stockholm-49722748


Slide 24

”Innovative Lending & Investing” emerging 2013 Stockholm FinTech revenue & Investing Our report: http://www.slideshare.net/eteigland/stockholm-49722748


Slide 25

Crowdfunding rapidly growing in Europe


Slide 26

Crowdfunding growth 2012-2015 USD 34 bln E


Slide 27

But in China alone in 2015… http://www.crowdfundinsider.com/2016/01/79612-report-china-p2p-lending-topped-150-billion-in-2015/


Slide 28

Four forms of crowdfunding


Slide 29


Slide 30


Slide 31

Democratizing innovation and investment? Women in USA <30% of business owners <15% of angel investors <10% of venture capitalists Marom, Robb and Sade 2014 Women on Kickstarter 35% of project leaders 44% of investors Women invested in women project leaders (>40% of projects) VS


Slide 32

Competing for investment?


Slide 33

Crowd equity


Slide 34


Slide 35

New forms of ownership…crowd equity


Slide 36

One step in the financing chain


Slide 37

Using the crowd to identify investment opportunities Nesta


Slide 38

zopa


Slide 39

P2B lending in Sweden


Slide 40

Enabling local community?


Slide 41


Slide 42

http://www.fundable.com/blog/crowdfunding-infographic---the-jobs-act-explained


Slide 43

Emerging forms of collaborative investing Crowdsourced hedge fund Activist hedge fund +


Slide 44

Developing investment skills online https://www.quantopian.com/home


Slide 45

Enabling financial inclusion


Slide 46

Cryptocurrency mining equipment http://techcrunch.com/2014/09/04/kncminer-raises-14-million-to-take-bitcoin-mining-to-the-moon/


Slide 47

Transforming insurance


Slide 48

What is a cryptocurrency? Digital Decentralized, peer-to-peer (P2P), i.e., no central, third party Uses cryptography to validate/secure transactions Also uses cryptography to generate currency itself Non-technical explanation of Bitcoin https://www.youtube.com/watch?v=t5JGQXCTe3c


Slide 49

Within 6 years: Challenging the fiat money system? Bitcoin – An emergent phenomenon Open source project on SourceForge in Jan 2009 Original source code by “Satoshi Nakamoto” – pseudonym? Developed by self-organizing community of thousands of strangers across globe Approx USD 6.5 bln market cap and approx 180,000 daily transaction volume of USD 101 mln 1 BTC = USD 431 (Jan 14, 2016) Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707


Slide 50

How does Bitcoin work? Screenclip from: How Bitcoin Works under the hood, by “Curious Inventor” Blockchain Shared public ledger All transactions ever made logged Chronology and integrity enforced by cryptography


Slide 51

Enabling records, oversight Image from the FT


Slide 52

Screenshot from the Economist


Slide 53

But also Vendor Transparency AML and KYC Features…


Slide 54


Slide 55


Slide 56

IoT and smart contracts Ownership attached to asset/property (e.g., real estate, shares) and can be verified Run on Bitcoin ledger, execute legal rules between two entities: people, organizations, machines Trustless because no center, no one in middle – the network is the middleman Example: I run a private weather station using neighbors’ sensors. Smart contracts enable payment to neighbors for data sent from their sensors to my weather station. But time will tell… uses we cannot imagine today. https://www.youtube.com/watch?v=JsC4ptn2Aik


Slide 57

IBM + Samsung


Slide 58

From “trusted”, centralized human authorities to trustless, decentralized networks IBM Institute for Business Value (PDF)


Slide 59

La’Zooz – Decentralized transportsharing http://lazooz.org/


Slide 60

FinTech World Personal Finance Payments Bitcoin & Blockchain Currency Currency Remittance & FX Lending Crowdfunding Robo-investing & Asset Management Tech Consumer Banking & Saving The Wharton FinTech Club What is FinTech?


Slide 61

FinTech – An increasingly crowded space Growing number of entrepreneurs with experience from established finance industry Increasing number of FinTech incubators Collaboration among established banks Open innovation through open APIs Other big non-banking entrants


Slide 62

Industry transformation Picture: http://andrewkarpie.com/wordpress/?p=469


Slide 63

Trajectories of industry change McGahan, HBR, 2004


Slide 64

Responses to disruptive strategic innovation Charitou, C. D., & Markides, C. C. (2012). Responses to disruptive strategic innovation. MIT Sloan Management Review


Slide 65

Why not embrace disruption? Charitou & Markides, 2003


Slide 66

Incumbents running incubators “Innovation labs are a sign that banks are taking the FinTech threat seriously as they recognize that we’re coming to eat their lunch.” -FinTech Entrepreneur


Slide 67

Opening up innovation… Citigroup Capital One BBVA Compass Silicon Valley Bank Bank of America


Slide 68

P2p industyry incumbents


Slide 69

Betting on the Blockchain - Together Goldman Sachs, JPMorgan, Credit Suisse, Barclays, Commonwealth Bank of Australia, State Street, RBS, BBVA, UBS, Nordea, SEB, + …… +


Slide 70

FinTech challenges Regulation Privacy Security Untested in periods of high interest rates, increased risk, and reduced investment


Slide 71

Previously… In the eight-year period between the Netscape IPO and the acquisition of PayPal (one of the winners of this era) by eBay, more than 450 attackers – new digital currencies, wallets, networks, etc. – attempted to challenge incumbents. Fewer than five of these survive as stand-alone entities today. McKinsey, 2015


Slide 72

Underperformers vs outperformers


Slide 73

Two models of industry transformation McGahan, HBR, 2004


Slide 74

Thomas Jefferson (1816) “Laws and institutions must go hand in hand with the progress of the human mind.” The problem is that the human mind itself can’t keep pace with the advances that computers are enabling.  http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/


Slide 75

The future is already here, it’s just not very evenly distributed. - William Gibson


Slide 76

Robin Teigland [email protected] www.slideshare.net/eteigland @robin.teigland If you love knowledge, set it free… If you like this presentation and would like to contribute to our research, we accept bitcoins: 14hs4JbnQLXE87GGzu84uXGaspmxmnLpwC. Thank you!!!!!


×

HTML:





Ссылка: