BANKS, RETAILERS AND FINTECH IN THE RASHOMON OF PAYMENTS PART III: FINTECH PERSPECTIVE

Zilvinas Bareisis and Gareth Lodge December 2015

This report was commissioned by ACI Worldwide, at whose request Celent developed this research. The analysis and conclusions are Celent’s alone, and ACI Worldwide had no editorial control over report contents.

CONTENTS

Introduction.......................................................................................................................... 1

Key Research Questions ................................................................................................. 2

Opportunity in Payments for Fintech ................................................................................... 3

“Unbundling of Banking” .................................................................................................. 3

Fintech in Payments: Attacking All Payment Flows ........................................................ 4

Not All ‘Fintech’ Is The Same .............................................................................................. 7

The Challenge of Defining Fintech .................................................................................. 7

An Alternative View of ‘Fintech’ ....................................................................................... 8

Banks’ Approach to Fintech .............................................................................................. 11

Glancing Into The Future .................................................................................................. 13

Leveraging Celent’s Expertise .......................................................................................... 15

Support for Financial Institutions ................................................................................... 15

Support for Vendors ...................................................................................................... 15

Related Celent Research .................................................................................................. 16

INTRODUCTION

Imagine a family of three generations:

Of the two kids, one is in her late teens and another in his early twenties. They are full of energy, optimism and youthful exuberance. Technology is second nature for them, although they sometimes find it difficult to connect with people in the “physical space.” While incredibly smart, the teens occasionally display a hint of naivety about how the real world works. Unencumbered by the past, they have visions of changing that world and writing history themselves.

Their parents are in late forties. They are doing well and hold respectable jobs, but feel hassled and harried by the pressures of life, “keeping up with the Joneses” and particularly, the speed of change around them. They also hold a bit of a grudge against the older generation – they don’t think parents have done enough for them, having spent most of their life “in it for themselves.”

It is true, the grandparents are still fairly wealthy, but they also have bills to pay – those bodies are starting to creak a bit; their grandkids call it “a legacy challenge.” They never had the best of memories, and these days often find that their “right hand doesn’t know what the left one is doing.” The rapidly changing world frightens them; they don’t want to become irrelevant and secretly hope that it’s all a fad that will just go away.

There is a rich uncle who likes nothing more than to indulge the kids and throw money at their latest ideas. He knows that many of those ideas will come to no good, but the thought that one of them just might indeed change the world, keeps him coming back for more.

There is also a mean uncle who has taken on the mission to keep the family in-check and make sure they don’t misbehave. He takes his role rather seriously and meddles quite a bit, although not always consistently. As a result, none of the family like him that much and most think he is against them.

Now, replace “the kids (teens)” with “Fintech”, “parents” with “retailers”, “grandparents” with “banks”, “rich uncle” with “VCs/ PE firms” and “mean uncle” with “regulator” and read the text again. Sounds familiar? Indeed, just like a family is locked into a set of relationships, banks, retailers and FinTech form a payment ecosystem that we believe is more symbiotic than many would want to admit.

As merchants that sell goods, retailers care about accepting payments efficiently and effectively. As corporates, they also have various other needs, from physical cash management to borrowing money and paying suppliers. Retailers traditionally have relied on banks to provide many of those services, although the relationship has often been strained. The merchants have long argued that the cost of payment acceptance is too high, and the silos between the retail and corporate sides of the bank have not helped to see a full picture of the relationship. Not surprisingly, retailers are increasingly susceptible to alternative solutions offered by technology firms.

Retail banks have been responsible for most of the payment instruments issued to consumers and used at the merchant tills. As cheques declined, the growth in card payments has been remarkable, even though the use of cash remains at stubbornly high levels in most countries. Yet, it is corporate banks that have the main relationship with retailers, and even though both sides may belong to the same universal bank, they often operate in silos. If the bank is also an acquirer, those operations would typically be in another siloed unit.

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Fintech firms sense the opportunity and are “muscling in.” What will their growing presence mean to the relationship between banks and retailers? Will it prove to be a wedge further driving them apart or the glue that bonds everyone together?

Figure 1: Banks, Retailers and Fintech – a Symbiotic Ecosystem?

Source: Celent

We believe that it is time to reimagine the payments relationships between banks, retailers and Fintech. Combative stances and door slamming will only result in lost opportunities for all.

To reimagine those relationships, it is helpful to start by understanding the perspectives of each main party. In Rashomon, a film by the famous Japanese director Akira Kurosawa, four people have witnessed the same crime, yet recount very different stories. Similarly, banks, retailers and Fintech are participating in the same ecosystem, yet each is looking at it from its own perspective.

Each of the three reports in this series explores the perspective of a different stakeholder. This report looks at Fintech and examines three research questions below.

KEY RESEARCH QUESTIONS

1 How can the Fintech market be segmented? 2

Why are Fintech firms excited about the opportunity in payments?

3 Why should Fintech care about banks?

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OPPORTUNITY IN PAYMENTS FOR FINTECH

“UNBUNDLING OF BANKING” In the last few years, an unprecedented amount of money has been poured into the technology sector, especially into companies focused on Financial Services which are known as Fintech. According to Oliver Wyman’s analysis

1, $23.5 billion of venture capital

has been invested into Fintech firms between 2010 and 2014. Economist Intelligence Unit

2 estimates that 4,000 Fintech firms received investment in the past five years.

Indeed, no area of banking seems immune to Fintech attack. All banking services – from making and receiving payments, to borrowing and financing, to saving and investing – are facing competition from new, smart and nimble technology firms – see Figure 2. Some call this process the “unbundling of banking.” And it is not limited to consumer services; commercial banking relationships are also under threat from Fintech.

Figure 2: “Unbundling of Banking” by Fintech

Source: Celent

For example, consumer peer-to-peer lending platforms, such as Lending Club, Prosper and Zopa have facilitated billions of dollars’ worth of loans. At the time of writing, Lending Club has originated over $13.4bn of loans in its seven years of existence. In December 2014, the company raised nearly $900 million in the public market. Its stock appreciated 56% on its first day of trading, valuing the company at $8.5bn. In the meantime, companies such as Affirm and PayPal Credit offer credit to consumers at the time of purchasing.

At the same time, many Fintech companies are focused on commercial lending, particularly to small business. Firms like Kabbage, OnDeck and others incorporate a broad range of data sources into an automated model that can make a lending decision in minutes rather than weeks that a bank might take. Reluctance of banks to lend to SME customers after the financial crisis also contributed to rapid growth of new competitors in this space.

Similarly, both consumers and businesses with money to save and invest have plenty of options beyond banks. Crowdfunding sites such as indiegogo and Kickstarter enable

1 The Fintech 2.0 Paper: Rebooting Financial Services, report published by Santander InnoVentures, Oliver

Wyman and Anthemis Group 2 The Disruption of Banking, Economist Intelligence Unit

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consumers to finance projects they find particularly appealing, whereas Nutmeg offers “smart investing for everyone” – a fully managed investment portfolio at much lower fees than available alternatives. Finally, firms such as Biz2Credit and Finpoint bring together corporates and businesses to lend money to each other.

FINTECH IN PAYMENTS: ATTACKING ALL PAYMENT FLOWS While there are few areas of banking that are yet to experience disruption from Fintech, it is payments that has captured imagination of many startups and technology companies. According to Oliver Wyman

3, of $23.5 billion venture capital invested in 2013/14, 23%

was in payments, with 27% going into consumer and 16% into business lending.

Again, there seems to be no area of payments immune from Fintech competition. One way to look at it is by analysing payment flows. Major payment flows include:

Consumers paying friends and family within their country/ region

Consumers sending money abroad

Consumers paying retailers and service providers – in-store, online, in-app, etc.

Retailers and other businesses paying their suppliers

Retailers and other businesses paying their employees and contractors

Consumers now send money to each other via P2P offerings from non-bank technology providers, such as Venmo, Square Cash, Google Wallet, Facebook Messenger and others – see Figure 3. If they want to send money internationally, they can go to companies such as TransferWise, Azimo, Xoom, or perhaps even use Bitcoin. Similarly, businesses can join networks such as Ariba and The Money Cloud to interact with and pay to their suppliers, while companies like Earthport and Dwolla can help facilitate payments to employees, freelancers and contractors.

Figure 3: Fintech in Payments: Attacking All Payment Flows

Source: Celent

3 Fintech 2.0 report, see footnote 1.

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To help facilitate payments between consumers and retailers, there are Fintech offerings for both consumers and retailers. Consumers can choose to pay using wallets offered by technology firms, such as PayPal, LevelUp and Seamless (SEQR), or by downloading the merchant apps, such Starbucks and Subway. More recently, device/ OS-based wallets such as Apple Pay and Android Pay have given mobile payments a boost.

Many Fintech firms are focused on helping retailers accept payments. Companies like Adyen, Braintree and Stripe help retailers enable new payment methods and accept traditional card payments in new ways, such as online and in-app. Others such as Square and iZettle bring electronic payments to new market segments like small businesses and sole traders.

Why do Fintech firms like payments? While motivations for each company might be slightly different, we believe it boils down to five fundamental reasons:

1. Revenue: depending on what is included in calculations, payments can contribute up to 40% of the banks’ revenues. Capturing even a small share of that represents a big opportunity. Furthermore, as discussed above, some Fintech companies “grow the pie” and uncover new revenue sources in payments.

2. Transaction data: payments data can offer rich insights into customers and their behaviour. While transaction data ownership is a sensitive topic, opportunities to monetise data through analytics attract many players.

3. Merchant opportunity beyond payments: merchants typically tend to bear the cost of payment transactions, so ultimately they are an important revenue source. However, serving merchants around payments presents Fintech with additional opportunities to capture their marketing and technology budgets, and even offer short term credit and cash flow financing.

4. Synergies with the core business: some firms enter payments not just to capture the associated revenue, but to exploit synergies with the rest of their business. For example, retailers are looking to reduce costs and boost customer loyalty, while mobile network operators expect to reduce customer churn.

5. Enriching the platform: while somewhat similar to the previous point, we believe this is the main reason why technology giants such as Apple, Google, Amazon, Facebook, Alibaba and Tencient are interested in payments. Ability to pay is a key daily function that creates further stickiness among consumers and adds value to the overall platform.

As Figure 3 on page 4 shows, Fintech firms are inserting themselves into what traditionally would have been a relationship between banks and retailers. Will Fintech prove to be the wedge that will drive banks and retailers further apart or a glue that brings them together? We believe it is the latter, as all parties increasingly recognise the value

Key Research Question

1

Why are Fintech firms excited about the opportunity in payments?

The specific reasons may vary, but most firms are attracted by revenue, transaction data,

opportunity to provide a range of services to merchants, synergies with the core business

and platform enrichment.

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that each brings to the ecosystem. We will come back to this later, but first, let’s take a look at different types of Fintech companies and how banks are responding.

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NOT ALL ‘FINTECH’ IS THE SAME

THE CHALLENGE OF DEFINING FINTECH Everybody talks about Fintech these days, but not everyone agrees what exactly should be included. For many people Fintech equates to startups in Silicon Valley, London and other high-tech centres. On the other hand, American Banker and BAI compile a “Fintech 100” list, which has traditional financial services technology companies such as ACI, Cognizant, FIS, Fiserv, Jack Henry, Misys, TCS and others in the top 20.

Fintech is a new entry into the Oxford Dictionary, where it is defined as4:

“Computer programs and other technology used to support or enable banking and financial services.”

Wharton Fintech Club proposes the following definition5:

“Fin·Tech (noun): an economic industry composed of companies that use technology to make financial systems more efficient.”

Both of those definitions take a broad view of Fintech, which encompasses all types of financial technology providers. Others disagree; for example, Chris Skinner writes in his Financial Services Club blog

6:

“I think of fintech as being a new market that integrates finance and technology. This new market is a hybrid of the traditional processes of finance – working capital, supply chain, payments processing, deposit accounts, life assurance and so on – but replaces their traditional structures with a new technology-based process. In other words, the term fintech describes a whole new industry.

Fintech builds a new world of finance using a digital core that is IP-enabled. It sits hand-in-hand with the Digital Bank, as the new definition of finance and banking.

Fintech is a new market. It is 21st century finance. It is the new form of banking, and is related but very different to the old form. Some of the old form players will metamorphose into these new digital fintech players. Some, not all. Some of the new players will take over the markets of the old incumbents. Some, not all.”

We agree with Chris that Fintech is less about specific companies or their origins and more about the market, the energy and the pace of change, and what various players are trying to achieve. However, we also believe that in order to fully appreciate the scale of changes taking place, it is important to take a rather broad perspective.

4 http://www.oxforddictionaries.com/definition/english/fintech

5 http://www.whartonfintech.org/blog/what-is-fintech/

6 http://thefinanser.co.uk/fsclub/2015/01/ghgh.html

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AN ALTERNATIVE VIEW OF ‘FINTECH’ When segmenting the Fintech market, most people look at the company’s focus, i.e. whether it is looking to disrupt payments, lending or banking more broadly. We propose an alternative view that looks at Fintech’s attitude to banking and what type of company is behind a particular offering – see Figure 4.

While most Fintech is disruptive, their attitudes to banks are not uniform. Some are actively competing, either as outsiders or by becoming banks themselves and seeking to challenge the incumbents from within with their own banking license. Others are actually serving banks and are looking to help them change and adapt to the new world order. Increasingly more players find themselves partnering with banks, at least in some areas, often while competing in others.

For the purposes of this analysis we include a broad range of companies under the “Fintech” banner. Of course, our segmentation has Fintech that everyone recognises, such as “startups”, i.e. small to medium sized companies, as well as “unicorns”, i.e. private companies valued at more than $1billion. According to Finovate’s analysis in July 2015, there were 29 Fintech “unicorns”, of which 13 were in payments and 11 in lending. However, we think it is also interesting to include the offerings from technology giants and other industries, as well as the traditional FS technology vendors.

Figure 4: An Alternative View of Fintech

Source: Celent

Traditional FS technology vendors have the clearest relationship with banks. Most of them are there to serve their banking clients, either as providers of software (e.g. ACI, FIS) and services (e.g. Fiserv, TCS) or as partners (e.g. First Data’s joint venture with Bank of America for merchant services).

It is also pretty clear where the “unicorns” stand. They have achieved their impressive scale and valuations mainly by competing with banks in a specific niche and focusing on being the best-in-class in that area. Often, it is in merchant services, such as those provided by the likes of Stripe, Adyen, Square and Klarna, while TransferWise is

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successfully attacking banks in the international payments market. Yet, even among the “unicorns” there are those that have chosen to partner with banks, such as iZettle which has partnerships with Nordea, Santander and other banks in Europe.

At the “smaller end” of the Fintech market, a full range of business strategies can be observed. Some startups and smaller technology firms are clearly there to provide technology solutions to banks and other players in the industry. For example, Encap Security is providing an authentication platform, Five Degrees is offering a modern middle and back office solution for banks, while Chain.com has provided technology and tools for Nasdaq’s distributed ledger-based exchange for shares in private companies.

Others have either set-out from the start or have come to realise that they would achieve more by partnering with banks. Earthport and Ripple, individually and together, are working with banks to assist them with international payments, while Dwolla has partnered with BBVA and other banks and credit unions for its real-time payments network in the US. And while Moven originally set out to compete with banks, in March 2015, it announced partnering with Accenture to “jointly develop next-generation digital banking solutions […] and to provide digital banking solutions to banks globally, enabling the banks to launch new digital capabilities faster and more cost-efficiently and deliver innovative digital products and services to their customers.”

Of course, many Fintech payments companies compete with banks, such as for example, LevelUp or Seamless with its SEQR wallet. Both of them rely on banks to provide funding for their account, but both offer third-party-branded wallet solutions which in the eyes of consumers compete with the bank offerings.

Finally, at least in some markets, a number of “challenger” banks are seeking, or have already obtained, a banking licence and are getting ready to tackle the industry challenges from within. The UK Government is keen to promote competition in the banking sector. As a result, the UK has seen more such banks than most markets with new names such as Atom, Mondo, Starling and others launching or obtaining a license in the last year or so. Similarly, Germany’s Fidor Bank combines a full banking license with its own technology with a strong focus on APIs, and has won Celent’s Model Bank of the Year award in 2015. As Matthias Kroner, CEO of Fidor Bank has said when asked if Fidor is a bank or a Fintech company:

“If a bank is not a fintech company, you as that bank will face increasing problems caused by the general and increasing speed of technical development in your environment.”

Most of these banks are still relatively small at the moment. They hope to grow by providing superior customer experience, first and foremost to the Millennials. However, to build scale, they will face the challenge of enticing customers of other banks to switch away – not a straightforward task given the inertia and habits formed over many years.

New banks that don’t face the same challenge and operate at scale right from the start are WeBank and MYBank, online banks launched in 2015 by Tencent and Alibaba respectively. They can tap into a large customer base that is already using other services on their platforms. According to its CEO, MYbank “has a goal of servicing 10 million small and medium enterprises and hundreds of millions of consumers in five years.” Also, let’s not forget that PayPal, for a long time the banks’ “disruptor in chief,” has a banking license in Europe.

Large players from other industries have also entered payments mainly as competitors to banks. Most notable examples include mobile network operators, such as Safaricom with

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its m-Pesa solution in Kenya as well as Orange, Vodafone and others in Europe, and retailers, particularly the MCX consortium in the US.

Finally, while large platform players in China have entered banking directly, other technology giants have so far taken a more collaborative approach. Apple, Samsung and Google have partnered with banks to launch their respective “Pay” solutions. Google is even positioning Android Pay as an open solution which can serve banks as they develop their own offerings. The big question is whether the tech giants will be content with such a role or whether they would take a more aggressive approach going forward.

Key Research Question

2

How can the Fintech market be segmented?

“Fintech” is not easy to define, but we propose looking at Fintech’s attitude to banking and what

type of company is behind a particular offering.

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BANKS’ APPROACH TO FINTECH

What do banks make of all this activity around Fintech? Banks clearly have taken notice and know that they have to respond. They do so by deploying a range of strategies – from strategic transformation and industry collaboration to “if you can’t beat them, join them” approaches.

Figure 5: Banks’ Approach to Fintech

Source: Celent analysis

Figure 5 demonstrates a selection of the most common bank strategies towards Fintech and illustrates them with examples:

1. Transforming: All banks know that they have to change and many have been very public about their digital transformation journeys. BBVA’s Chairman Francisco Gonzales is on the mission “to turn BBVA into a totally digital company, including all our products and services, and with our over 100,000 employees working digitally.” Lloyds is planning to invest £1 billion in digital banking capability over the next three years. Others decided that launching banking offerings under separate brands would be the best catalyst for change. Examples include BNP Paribas’ Hello Bank, Aegon’s Knab in the Netherlands and BRE’s mBank in Poland.

2. Collaborating: Banks are also looking for ways to collaborate with each other to launch industry-wide services (e.g. clearXchange and Early Warning) and develop standards (e.g. The Clearing House). They also team up to investigate new technologies – for example, R3CEV is a collaborative initiative among 30 of the world’s largest banks seeking to explore how to “design and apply distributed ledger technologies to global financial markets.”

3. Incubating. Other strategies follow “if you can’t beat them, join them” principle. Banks all over the world have launched incubators, accelerators and labs, i.e. spaces where they can nurture startups and collaborate with third parties to gain better insight into their technologies. Examples include Techstars, Barclays’ Tech accelerator, Bank of America’s Lab of America, HSBC’s Singapore Innovation Lab

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and many others. Level39 in London’s Canary Wharf offers space for startups and hosts events to exchange ideas and support its members.

4. Investing. A number of financial institutions are establishing venture funds to actively invest in startups. In October 2015, Santander’s InnoVentures has invested $4 million in Ripple and is investing in MyCheck, Cyanogen, and iZettle. BBVA Ventures has invested in companies like FreeMonee, SumUp, and Radius, and plans to spend more than $100 million on new projects over the next year. HSBC has said that it would start a venture fund with up to $200 million in investments. Wells Fargo and Citibank have started with funds of around $100 million within the Silicon Valley. Often a hot startup would receive backing from a number of flagship investors. For example, Visa, Nasdaq, Citi, Capital One, Fiserv and Orange invested into Chain.com. While this is a good way to get deep into emerging disruptors, the required financial commitment is likely to be prohibitive to all but the top banks.

5. Acquiring: While there have been many acquisitions in the financial technology space where one vendor acquires another, there hasn’t been that many examples where FIs have outright acquired Fintech companies. Perhaps the most notable example is BBVA’s acquisition of Simple in 2014. Others include Barclays’ acquisition of The Logic Group, payments and loyalty specialist and Commonwealth Bank of Australia acquiring Tyme, a company that builds digital banking solutions. All need to carefully manage the risk that as these offerings are brought closer to the parent company, the legacy processes and functions don’t bleed into the new acquisition, hampering growth and essentially killing the viability of the product.

6. Partnering: Finally, banks and Fintech increasingly partner to launch solutions where both parties benefit. A well-known example of partnering in payments has been the launch of Apple Pay and more recently, Android Pay and Samsung Pay. BBVA Compass is partnering with Dwolla to offer real-time payments services, iZettle is partnering with Santander, Nordea and others, while Chase surprised everyone at Money 2020 by announcing a partnership with MCX, the merchant consortium.

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GLANCING INTO THE FUTURE

It has become fashionable to pronounce that banks have no future and that Fintech is going to rule the world. Celent does not subscribe to that school of thought. Doing so would risk ignoring rich history of developments in banking, from the Medici family in 14

th

century and beyond. Of course, we acknowledge Fintech’s role in disrupting the industry and recognise that banking is changing. We simply don’t agree that banks will disappear, at least not all of them.

We believe that banks and Fintech need each other to succeed – see Figure 6. It is pretty obvious why banks need Fintech – this is where a lot of new ideas are coming from. Fintech can offer banks access to new technologies and help bring new ideas to market at speed. Banks have a lot of data, but Fintech players actually know what to do with that data. And by working with Fintech, banks get exposed to a completely different culture.

However, it’s not a one way street. For all their shortcomings, banks have managed to retain huge amount of trust from their customers. Some of it is down to pure inertia, but much of it is built on long standing relationships based on providing core services safely and securely over many years. As Fintech players grow and look to achieve scale, they need access to banks’ customers. And most of Fintech companies don’t want to be regulated as Financial Services providers; partnering with banks can help avoid excessive regulation.

In payments, banks are in a privileged position in terms of access to clearing and settlement in Central Bank money. This might change over time, but for now most Fintech offerings rely on bank instruments to fund their accounts. And payments is an incredibly complex topic, the expertise around which tends to reside in banks and established technology players. Many enterpreneurs are not payments experts and had been on a steep learning curve. Just like banks have a lot to learn from startups, entrepreneurs can learn a thing or two from bankers around payments.

Figure 6: Banks and Fintech in Payments: A Symbiotic Ecosystem

Source: Celent

We clearly sense that attitudes in the industry are beginning to change, with different parties starting to appreciate the value they each can bring to the party and exploring

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ways to collaborate. As Ben Milne, the CEO of Dwolla, said in a recent Wall Street Journal interview

7:

“Time humbles you. Working with banks is the difference between running a sustainable business and just another venture-funded experiment.”

Just like the family described at the beginning of this report, banks, retailers and Fintech are in an ecosystem more symbiotic than many are prepared to admit. Clearly, not all of today’s banks will survive. However, many of today’s Fintech will not last either. The survivors will be those that reimagine relationships with their customers and partners.

Was this report useful to you? Please send any comments, questions, or suggestions for upcoming research topics to info@celent.com.

7 Banks and Fintech Firms’ Relationship Status: It’s Complicated, Wall Street Journal, 18 November 2015

http://www.wsj.com/article_email/banks-and-fintech-firms-relationship-status-its-complicated-1447842603-lMyQjAxMTA1MzE5ODYxNzg4Wj

Key Research Question

3

Why should Fintech care about banks?

Despite their shortcomings, banks still have a lot to offer and can be valuable partners to Fintech

community.

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LEVERAGING CELENT’S EXPERTISE

If you found this report valuable, you might consider engaging with Celent for custom analysis and research. Our collective experience and the knowledge we gained while working on this report can help you streamline the creation, refinement, or execution of your strategies.

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RELATED CELENT RESEARCH

Breaking the Payments Dam: External Forces Transforming the Payments Ecosystem

November 2015

Payments Tokenisation Evolution: Glancing into the Future October 2015

Top Trends in Retail Payments: A Year in Review. 2015 Edition January 2015

Defining a Digital Financial Institution: What “Digital” Means in Banking December 2014

Apple in Payments: What to Expect? March 2014

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AMERICAS EUROPE ASIA

USA

200 Clarendon Street, 12th Floor Boston, MA 02116

Tel.: +1.617.262.3120 Fax: +1.617.262.3121

France

28, avenue Victor Hugo Paris Cedex 16 75783

Tel.: +33.1.73.04.46.20 Fax: +33.1.45.02.30.01

Japan

The Imperial Hotel Tower, 13th Floor 1-1-1 Uchisaiwai-cho Chiyoda-ku, Tokyo 100-0011

Tel: +81.3.3500.3023 Fax: +81.3.3500.3059

USA

1166 Avenue of the Americas New York, NY 10036

Tel.: +1.212.541.8100 Fax: +1.212.541.8957

United Kingdom

55 Baker Street London W1U 8EW

Tel.: +44.20.7333.8333 Fax: +44.20.7333.8334

China

Beijing Kerry Centre South Tower, 15th Floor 1 Guanghua Road Chaoyang, Beijing 100022

Tel: +86.10.8520.0350 Fax: +86.10.8520.0349

USA

Four Embarcadero Center, Suite 1100 San Francisco, CA 94111

Tel.: +1.415.743.7900 Fax: +1.415.743.7950

Italy

Galleria San Babila 4B Milan 20122

Tel.: +39.02.305.771 Fax: +39.02.303.040.44

China

Central Plaza, Level 26 18 Harbour Road, Wanchai Hong Kong

Tel.: +852.2982.1971 Fax: +852.2511.7540

Brazil

Av. Doutor Chucri Zaidan, 920 – 4º andar Market Place Tower I São Paulo SP 04578-903

Tel.: +55.11.5501.1100 Fax: +55.11.5501.1110

Canada

1981 McGill College Avenue Montréal, Québec H3A 3T5

Tel.: +1.514.499.0461

Spain

Paseo de la Castellana 216 Pl. 13 Madrid 28046

Tel.: +34.91.531.79.00 Fax: +34.91.531.79.09

Switzerland

Tessinerplatz 5 Zurich 8027

Tel.: +41.44.5533.333

Singapore

8 Marina View #09-07 Asia Square Tower 1 Singapore 018960

Tel.: +65.9168.3998 Fax: +65.6327.5406

South Korea

Youngpoong Building, 22nd Floor 33 Seorin-dong, Jongno-gu Seoul 110-752 Tel.: +82.10.3019.1417 Fax: +82.2.399.5534