11/15/16

Confidential. Do not distribute.

Who’s Eating Your Lunch? The New Competition

11/15/16

22

The Usual Question: Startups vs Incumbents?

•  Speed•  Focus•  ModernTech•  CultureofRiskTaking

•  Experience•  Process•  Hard&so?assets•  CultureofRiskManagement

vs.

33

Better Question: Tech Titans vs. Incumbents

vs.

Google.Facebook.Alibaba.Amazon.Apple.Tencent.

•  Gigascale–franchiseof1B+consumersastablestakes•  Mobile–smartphoneiscoretheirDNA&strategy•  Data–richer,moreuniversaldatasets+cuMngedgeanalyNcs•  Mindset–“What’sPossible?”vs“Wehaven’tdoneitthatwaybefore.”

44

Money2020 attendance had Tech Titans in force

0 10 20 30 40 50 60

BofAGoogle

SynchronyPayPal

JPMAmazon

EquifaxFacebook

Numberofa+endeesin2016@Money2020

55

Tech Titans are Eyeing Financial Services…why?

66

Hallmarks of Tech-driven Transformation

TransparencyLessFricNon DeflaNonary+

77

If I’m right … so what?

1

2

3

FinTechstartupsrepresentapetridishofexperimentaLon.Monitorforwinningideas.

TechTitansrepresentmuchgreaterthreatthanstartups.Monitortheirstrategicmovesclosely.

ExisLngrevenuepoolswilldecline,whilecostsalsofallwithtech.“CreaLveDestrucLon”ofOppty.

Incumbentscan,andshould,collaboratewiththeFinTechstartupstocountertheloomingthreatposedbyTechTitans.