1. RFi Group Global Retail Banking
Conference Series – Canada
Opportunities in Digital Banking and FinTech
9th
June 2016
Toronto Region Board of Trade, First Canadian Place

2. Canadian Retail Banking Conference 2016
2
SESSION THREE: INNOVATION, DIGITAL ADVICE & WINNING IN CUSTOMER LOYALTY
Innovation and Partnerships:
Learning from core technologies used by start-ups and
leading IT companies
Marc Lijour, Director, Savoir-faire Linux

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Innovation Catalyst

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13. Savoir-faire Linux | Marc Lijour 13https://web.liferay.com/partners/service-partners

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15. Savoir-faire Linux | Marc Lijour 15Credit: www.kewlwallpapers.com
Speed of Change

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Today's Challenges
› Speed of Innovation
› Customer Experience
› Omnichannel (Web & Mobile first)
› Security
› New talent
Digitization
Drivers

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From IoT to Cloud
Infrastructure
CLOUD ARCHITECTURE
Industrial
EMBEDDED ARCHITECTURE
Entreprise
APPLICATION ARCHITECTURE
Agility

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Meanwhile, in a country nearby...
In the US, FinTech investments showed the largest increase in 2015
(183% vs 133% for healthcare in 2nd
place). NVCA & PwC (January 15, 2016)
Global investments tripled in 2014. Accenture (2015)
3x

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Canada
$1 B since 2010
US
$9 B in 2014 alone
World
$12 B in 2014
Toronto
3rd
largest FinTech
cluster in N. America
(May 9, 2015)

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Remittances
Cutting prices by 5% can save up to $16B per year (World Bank)
1.2% (CAD MEX)→8 -12% (CAD MEX)→
● $582 bn in 2014 ($435 bn to developing countries)
● Average cost: 7.53%
● Mexico accounts for half of remittances
Fact Sheet

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Lending
?
Goldman Sachs' 2015 report: Socialization of Finance
Crowdfunding is “potentially the most disruptive of all new models of finance.”
● Crowfunding could reach $96 bn per year in developing countries by 2025 (World Bank)
● TAM = $1 Trillion (according to Foundation Capital -invested in Lending Club)
● UK industry alone:
● raised over $7 bn (P2P Finance Association)
● $3.9 bn in 2015 (86% of alternative finance market ; and 10x equity crowdfunding)
● Nearly half of humanity lives with less than $2 a day (UN)
● 2.5 bn people are unbanked
Fact Sheet
China would have +1500 P2P platforms (Wangdaizhijia)

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Digitization means Disruption

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“Banks need to take on Amazon and Google, or die”
Francisco Gonzalez, Chief Executive of BBVA (2013, 2015)
“Half of the world's banks will disappear”
“Silicon Valley is coming”
Jamie Dimon, CEO, JP Morgan Chase (April 8, 2015)

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A Napster moment?

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A Napster moment?
Digital currencies Man-powered ATM
P2P Lending
Digital Autonomous Organizations (DAO)
Remittances
Mobile payment
Smart Contracts

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Learning from the Internet
Credit to Paul Baran (1964), part of a RAND Institute study to create a robust military communication network (ARPANET).

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Accenture's Pilars of Corporate Cultural Shift
› Built for change
› Data driven
› Embrace disruption
› Digital risk awareness
#techvision2016
Pace of
Change
xn
“Openness, Collaboration and
Investment are the critical themes that
emerge for existing banking players”
The Future of FinTech and Banking
Accenture (2015)

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The world is Open
https://www.blackducksoftware.com/future-of-open-sour
ce

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Collaboration is key across Big IT

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Collaboration is key across Industries
4th
Industrial Revolution

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“25% of the world's
economy will be
digital by 2020.”
Accenture #techvision2016

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Substitution Augmentation RedefinitionModification
Path to Digitization
Adapted from Dr. Ruben Puentedura, Ph.D. http://www.hippasus.com/rrpweblog/
Today's banking industry New, redesigned industry

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Substitution Augmentation RedefinitionModification
Path to Digitization
Adapted from Dr. Ruben Puentedura, Ph.D. http://www.hippasus.com/rrpweblog/
Today's banking industry New, redesigned industry
●
Online banking
●
Web-based chat
● Omni-channel
● Budget tracking
● Big data for lending
● Roboadvisors
● FX / Remittances
● Tax preparation
● ...
● FinTech Bank
● Marketplace banking

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Substitution Augmentation RedefinitionModification
Path to Digitization
Adapted from Dr. Ruben Puentedura, Ph.D. http://www.hippasus.com/rrpweblog/
Today's banking industry New, redesigned industry
●
Online banking
●
Web-based chat
● FinTech Bank
● Marketplace banking
Cooperation
with FinTech
Platform
Play
(owning the customer)(Speed and Customer XP)
● Omni-channel
● Budget tracking
● Big data for lending
● Roboadvisors
● FX / Remittances
● Tax preparation
● ...

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Collaboration in Practice
Bank
M&A
FinTech
White
Labelled
Center of
Innovation
Incubation
FinTech
Platform
Academia
Public
Sector
Community
FinTech
Sales
Channel
Pure
Tech
Partner

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WIN THE CUSTOMER WITH

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Competing against Disruption with clear Focus
Substitute &
Augment
Reduce
Cost
Modify &
Redefine
All, but
in order

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We know how