THE FUTURE OF BANK-FINTECH COLLABORATION

ICEEFEST15 JUNE 2017

@JEFFTIJSSEN

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“SILICON VALLEY IS COMING”JAMIE DIMON, CEO, JPMORGAN CHASE (2015)

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THEY ARE MEETING THE CHALLENGE

HEAD ON

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THEY’VE GOT A LONG HISTORY OF

INVESTING IN STARTUPS

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BUT RECENTLY THEY’VE BECOME A LOT MORE FOCUSED

ON FINTECH

MORTGAGES AUTO FINANCE

SMALL BUSINESS LENDING COMMUNICATIONS

ONLINE BROKERAGE PAYMENTS

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LARGEST COMPANIES

BY MARKET CAP

2001

2006

2011

2016

#1 #2 #3 #4 #5

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3ANNUAL SWITCHING RATE FOR

BANKS IN THE UK

37PEOPLE WHO HAVE BEEN WITH THEIR BANK FOR 20+ YEARS

% %

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77%PERSONAL ACCOUNTSUK MARKET

SHARE

85%BUSINESS ACCOUNTSUK MARKET

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GALLUP MILLENNIALDISRUPTION INDEX

73 69MILLENNIALS WHO PREFER TO HAVE A DIGITAL RELATIONSHIP

WITH A BANK

MILLENNIALS WHO WOULD TRY FINANCIAL OFFERINGS

FROM NON-FINANCIAL BRANDS

% %

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THE RISE OF THE CHALLENGERS

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REGULATORS ARE DEMANDING MORE COMPETITION IN

BANKING

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SHOULD YOU BE CONCERNED?

SOURCE: SAVEONSEND.COM

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76%OF SENIOR BANKERS DON’T BELIEVE THAT DIGITALISATION

WILL AFFECT THEIR BUSINESS MODEL(I KNOW… SHOCKING...)

SOURCE: GARTNER

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IT’S ALL ABOUT COLLABORATION

“

”

Old foes, new friends: Nordic banks and startups increase collaborationComputerWeekly

Collaboration Is The Way Forward For Banks And FintechForbes

Collaboration between banks and fintechs is key to survivalInformationAge

HSBC partners with Tradeshift as banks increasingly see fintech as friends not foeBusiness Insider

Banks rushing to collaborate with fintech startupsFinextra

SocGen extends fintech collaboration mission to GermanyFinextra

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NEW PARTNERSHIPS ARE BEING

ANNOUNCED ON A REGULAR BASIS

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10 TYPES OF CORPORATE INNOVATION

PROGRAMMES

SOURCE: VENTUREBEAT

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BANKS ARE INCREASINGLY

LOOKING TO INVEST IN FINTECH STARTUPS

SOURCE: CB INSIGHTS

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>30%CORPORATE PARTICIPATION IN FINTECH DEALS IN

2016SOURCE: CB INSIGHTS

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60%OF GLOBAL BANKS ARE OPEN TO

PARTNERING WITH FINTECH FIRMS

25%OF GLOBAL BANKS WOULD CONSIDER

A FINTECH ACQUISITION

SOURCE: SAP/IDC

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“WE NEED TO CHANGE OUR CULTURE”“WE NEED TO LAUNCH AN INNOVATION LAB”

“WE NEED TO BE MORE AGILE”“WE NEED TO PARTNER WITH STARTUPS”

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BANKS

STARTUPS

//FASTER TIME TO MARKET//SOLVE SPECIFIC INDUSTRY PROBLEMS

//FOCUS ON THE CUSTOMER//AGILE WAYS OF WORKING

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COMMON PITFALLS

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PR VALUE > ACTUAL RESULTS

LEGACY INFRASTRUCTURE

NO REAL SENSE OF URGENCY

CANNIBALISE EXISTING REVENUE STREAMS

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LACK OF EXPERIENCED INNOVATORS

CULTURE CLASH

LACK OF OWNERSHIP & SPONSORSHIP

“COMPARTMENTALISED” INNOVATION

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RISK-AVERSE CULTURE

GOVERNANCE, GOVERNANCE, GOVERNANCE

THE-50-PEOPLE-WHO-SAY-NO PROBLEM

FEAR TO KILL NEW IDEAS (QUICKLY)

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SO HOW DO YOU TACKLE THIS?

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IT AIN’T EASY…

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THIS IS NOT INNOVATION...

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NEITHER IS THIS…

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WHAT’S YOUR PURPOSE & FOCUS?

CAN YOU TEST-LEARN-ITERATE-DEPLOY-KILL QUICKLY?

HAVE YOU GOT YOUR BASICS RIGHT?

CAN YOU HANDLE FAILURE?

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“INNOVATION REQUIRES A LONG-TERM WILLINGNESS TO BE MISUNDERSTOOD”

THANK YOU@JEFFTIJSSENJEFFREY.TIJSSEN@CAPCO.COMWWW.CAPCO.COM