http://techsylvania.co

1. RED TO BLUE
RONALD VERBRUGGE – CEO

2. We’re living in a transformational
era for Financial Services. Our
children will look back at these past
decades and laugh at how we
banked”
Bradley Leimer, Mechanics Bank, California

3. The FINTECH Revolution

4. What started
once upon a time
in 2007…..

5. 08-09 BNP Paribas Freezes Funds as Loan Losses Roil Markets
08-14 Goldman and Investors to Put $3 Billion Into Fund
08-15 Countrywide Financial ‘risks bankruptcy’
08-17 Fed Cuts Discount Rate to 5.75% to Ease Credit Crunch
08-21 SachsenLB Has EU3 Billion in Subprime, Person Says
08-22 H&R Block Taps Credit Line, Cites `Unstable’ Markets
08-22 Lehman, Accredited, HSBC Shut Offices; Crisis Spreads
08-23 Fed lends $2 billion to banks to ease credit woes
08-29 Basis Yield Files Bankruptcy Over Subprime Defaults
09-06 ECB injects 250 Billion euros into markets
09-14 Northern Rock Gets Emergency Bank of England Funding
09-17 Government guarantees Northern Rock deposits
09-17 NovaStar Can’t Pay Dividend, Forfeits REIT Status
09-18 Stocks Surge on Big Fed Rate Cut

6. continued in 2008..

7. 04-30 Citigroup Increases Stock Offering to $4.5 Billion
03-11 Central Banks inject $200 billion of liquidity into markets
03-14 JPMorgan and Fed Move to Bail Out Bear Stearns
03-25 Seeking Fast Deal, JPMorgan Quintuples Bear Stearns Bid
03-31 U.S. Treasury Backs Regulatory Overhaul, Broader Fed Role
04-01 UBS writes down another $19 billion
04-01 Deutsche Bank to write down $4B
04-04 MBIA Loses AAA Insurer Rating From Fitch Over Capital
04-08 Washington Mutual Raising $7 Billion
04-14 Wachovia’s Loss a Grim Sign for Banks
04-18 Citigroup Reports Loss on $15 Billion of Credit Costs
04-21 Funds to invest up to $8bn in National City bank
04-22 Merrill Raises $9.55 Billion in Sales of Debt, Preferred Shares
04-22 RBS aims to raise $24B in new capital
04-29 Citigroup Sells $3 Billion of Stock to Boost Capital
04-29 HBOS Plans to Raise 4 Billion Pounds in Share Sale

8. 05-06 Fannie Mae to raise $6bn new capital
05-07 Town of Vallejo, California goes bankrupt
05-09 Citigroup to wind down $400bn of assets
05-19 Banks Keep $35 Billion Markdown Off Income Statements
05-26 UBS Falls After Saying More Mortgage Losses Possible
06-02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
06-02 Bradford & Bingley shares plunge as lender warns on profits
06-05 MBIA, Ambac, $1 Trillion of Debt, Lose S&P AAA Rating
06-09 Lehman Brothers to post $3 bln loss; sets $6 bln stock sale
06-09 Lehman to post $2.8 billion quarterly loss
06-09 Lehman Cuts $130 Billion of Assets to End Bear Stigma
06-12 KeyCorp to raise $1.5 billion, cut dividend 50%
06-18 Fifth Third Falls on Plan to Raise $2 Billion, Cut Dividend
06-25 Countrywide Sued by California Over Mortgage Loans
06-25 Countrywide Financial Faces Suit Over Mortgage Loans

9. 05-06 Fannie Mae to raise $6bn new capital
05-07 Town of Vallejo, California goes bankrupt
05-09 Citigroup to wind down $400bn of assets
05-19 Banks Keep $35 Billion Markdown Off Income Statements
06-30 Florida Sues Countrywide
07-07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
07-10 U.S. Mulls Future of Fannie, Freddie
07-11 IndyMac Seized by U.S. Regulators Amid Cash Crunch
07-18 Barclays and HBOS cash calls shunned
07-25 National Australia Bank tumbles on new $830m provision
07-28 Merrill Has $5.7 Billion of Writedowns, Sells Shares
08-08 Auction-Rate Buybacks: The Bottom Line
08-20 Fannie Mae and Freddie Mac shares fall on fears of size of potential losses
08-20 Lehman’s secret talks to sell 50% stake stall
09-07 Paulson Engineers U.S. Takeover of Fannie, Freddie

10. 06-30 Florida Sues Countrywide
07-07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
07-10 U.S. Mulls Future of Fannie, Freddie
09-15 Lehman Files Biggest Bankruptcy After Suitors Balk
09-15 Bank of America to Acquire Merrill as Crisis Deepens
09-15 Fed Widens Collateral, Banks Set Up $70 Billion Fund
09-16 Fed to lend $85 billion to AIG, take 80 percent stake
09-18 Lloyds TSB seals £12.2bn HBOS deal
09-25 WaMu (US), Assets Sold to JPMorgan in Record Failure
09-29 B&B nationalisation is confirmed
09-29 Iceland nationalises Glitnir bank
10-03 Dutch part of Fortis is nationalised
10-06 Hypo Real Gets EU50 Billion Government-Led Bailout
10-07 UK makes massive rescue plan for banks
10-08 Fed Will Lend Directly to Corporations
10-12 Australia to guarantee bank deposits for three years: PM

11. 10-13 RBS, HBOS and Lloyds to get $64 billion from U.K.
10-13 Fed Says ECB, Others to Offer Unlimited Dollar Funds
10-13 EU Nations Commit 1.3 Trillion Euros to Bank Bailouts
10-13 Germany Pledges EU500 Billion in Bank Rescue Plan
10-15 European central banks pump $250bn liquidity
10-15 EU backs emergency accounting changes
10-16 ECB Widens Collateral Rules, Slashes Required Ratings
10-13 EU Nations Commit 1.3 Trillion Euros to Bank Bailouts
10-13 Germany Pledges EU500 Billion in Bank Rescue Plan
10-15 European central banks pump $250bn liquidity
10-15 EU backs emergency accounting changes
10-16 ECB Widens Collateral Rules, Slashes Required Ratings
10-16 ECB gives Hungary €5bn credit line
10-16 Swiss banks raise emergency funds to fight crisis
10-22 Wachovia reports 23.9 billion loss

12. is continuing today….

13. - Euro crisis
- Spain, Portugal, Italy, Cyprus on the edge of bankcrupcy, still
- Many banks were nationalized saved by the tax payers
- The credit crisis was turned upside down, companies no longer get financed
- Many houses are “under water”
- Discussions of the rich countries to return to their former currency
- People no longer can get mortgages
- House prices dropped with 30% - 40% in many countries
- The banks that did not go bankrupt, fired 40% -to 60% of their personnel

16. The word BANK..ruptcy got a
totally different meaning the
past years, don’t you think?

17. COMPLEXITY + LEGACY = BOOM!
-IT Legacy
-Cultural Legacy
-Organizational Legacy
-Historical Legacy
-Political Legacy

18. Consumers TODAY

20. Consumers today?
• 30% would consider a branchless digital bank
• 75% only wants a bank to be transaction driven
instead of relationship driven
• 55% wants a bank to proactively recommend
products and services for their financial needs
• 50% is interested in real-time and forward
looking spending behavior

21.
Would you bank with a new independent
Fintech company ?
75% of People < 35 years say
YES!

22. Bankers TODAY?

24. AUTHENTICYTY
LOVE
PURPOSE
The Bank of the future is about

25. SO, THAT MEANS DEEP
TRANSFORMATION!
By the Banks?
No of course not, by

26. YOU!

27. By me?
I Am An IT-er
WHAT CAN I DO?

28. YOU
TECHNOLOGY
FUTURE OF FINANCE
+
=
+
INNOVATION

29. • It is up to you to create the
real POWERSHIFT
• People in the driverseat
• Banks in the backseat

32. TOGETHER
Trust
Save
Lend
Invest
Purchase
Share Risks
Create
Vote
Share Knowledge
Negotiate
Create
Play
Carry
Complain
Choose
Share
Experience

33. Near future?
Changed position of people in the power balance
1. People own their financial data at the bank
2. People make money with their own data, marketing
is dead!
3. People group in closed communities, they own
4. People organize their purchase power, together
5. People create transparency
6. People create the financial products they need
7. Communities employ their own financial experts

34. 1. FSI’s (banks, insurance cie’s) focus on operational
excellence (faster, cheaper, better)
2. Banks merge and a few back office hubs will remain
3. Banks loose all of their retail clients
Near future?
Changed position of banks in the power balance

35. FINTECH!
Finance is Dead, long live

36. FINTECH main categories
1. Extensions of banks on their traditional services
2. Independent extensions on top of banking services
3. New initiatives replacing traditional Financial services

37. FINTECH

38. Some current FINTECH examples
1. Personal Finance
a) Mint
b) Betterment
2. Crowdfinance
a) Lendingclub (peer to peer)
b) Symbid
c) MUNT mortgages

39. Of course: Wearable first

40. Some upcoming FINTECH trends
1. Virtual Finance Agents
a) Robo Analytics (Big data, Machine learning,
functional programming)
b) Physical health decision support engines
2. Networking Finance
3. People like me