As money becomes increasingly stored as digital data and moves

with us on our mobile devices, it will flow fluidly, and at a far lower

cost from person to person; from consumer to vendor; and from

investor to business.

Financial tech firms are after the big three: speed, ease and industry disruption.

Financial tech companies want to be like Uber. Why? “They make it so…easy,” said Heather Cox,

chief client experience, digital, and marketing officer at Citi Global Consumer Banking.

Fintech is the term given to financial service firms whose product or service is built upon

technology, often resulting in highly innovative, pioneering services. “Fintech” as a term is a

compound of “finance” and “technology”.

News Release

JUNE 25, 2015

Fintech Investment in U.S. Nearly Tripled in 2014, According to Report by Accenture and Partnership Fund for New York City

Fintech Investment in U.S. Nearly Tripled in 2014, According to Report by Accenture and Partnership Fund for New York City Deal value in New York City reached new high of $768 million in 2014

NEW YORK; June 25, 2015 – Investments in financial technology (FinTech) continued at a

remarkable pace last year, nearly tripling in the United States in 2014, according to a new report

by Accenture (NYSE: ACN) and the Partnership Fund for New York City.

The value of FinTech investments in the United States soared to $9.89 billion in 2014, up from

$3.39 billion in 2013. This 191 percent increase dwarfs the increase in 2013, when FinTech deal

values in the United States climbed 68 percent. In New York, FinTech deal values grew by 32

percent in 2014, to a new high of $768 million.

The report, “Fintech New York: Partnerships, Platforms and Open Innovation,” was released today

at the FinTech Innovation Lab’s fifth annual Demo Day event in New York. According to the report,

global FinTech investment tripled in 2014, to $12.2 billion, from $4.05 billion in 2013. By

comparison, the overall market for venture-capital investing increased only 63 percent during that

period.

“This past year marked a paradigm shift in how financial services companies approach and

embrace FinTech innovation, as they recognize the vast potential that this strong network

provides,” said Robert Gach, managing director of Accenture Strategy Capital Markets. “An

increasing number of banks and insurers are investing in connecting into the FinTech ecosystem,

whether through accelerator or incubator labs, venture investments or in other ways. We believe

this explosive growth in FinTech will help drive innovation within some of the world’s largest

financial institutions.” Where the Money is going The report notes that hot areas for FinTech investment in 2014 included payments, lending,

trading technologies and wealth management. Payments accounted for the largest number of

FinTech deals in the United States in 2014, 29 percent. In New York, however, the total number of

FinTech deals in payment companies has trended downward, from 33 percent of all FinTech deals

in 2012 to 21 percent in 2014. Lending was the second-biggest investment area for U.S. FinTech

investments in 2014, accounting for 16 percent of such investments.

The report also highlights that New York is attracting more venture investments into wealth

management and markets (which includes trading platforms) segments on a percentage basis

than the rest of the United States. More than four of every 10 (42 percent) FinTech deals in New

York in 2014 were in one of the segments highlighted above. These same FinTech segments,

however, represented just 21 percent of deal volume in the United States.

Maria Gotsch, President and CEO of the Partnership Fund for New York City and co-author of the

report, said, “For FinTech entrepreneurs, New York provides key advantages that no other city can

match – notably close access to potential customers, and a deep talent pool of individuals with an

intricate understanding of the financial services industry. With each passing year, New York City’s

FinTech industry becomes more established and a larger force in the city’s entrepreneurial and

financial services ecosystem.”

“Fintechs have the technological edge over banks, and as technology develops, we will only see

more pioneering solutions offered uniquely by fintechs

Venture capital funding in UK FinTech dramatically increased in 2014, rising to $539 million, with

the UK taking half the total investment in FinTech businesses in Europe. Some of the most

prominent names in UK FinTech all took part in large growth rounds to help speed up their

development both domestically and internationally.

UK & Fintech in 2015 Fintech is currently worth £20 billion in revenue of the UK economy, with

18% coming from emerging businesses, and thanks to the historic dominance of the City of

London, the UK has four FinTech incubators. Fintech is 1 of the 3 sectors that CBI predicts will be

worth a combined £300 billion to the economy.

As this happens, the traditional revenue streams big banks and brokers have enjoyed monopolistic

control over will be challenged — money transfer fees, account management fees, trading fees

and more — as the banking technology they have charged us to use is rebuilt and improved by

FinTech entrepreneurs and simply downloaded to our phones.

For example, Betterment and Wealth front, two of the better known robo-advisors, took half a

decade to accumulate about $2 billion in assets. Old guard firms Vanguard and Schwab noticed

their growth, launched their own robo-advisors earlier this year, and now manage over $20 billion

after just a few months. Because of their massive scale, they can match or undercut on price and

they can offer a wider array of services that people are not used to.

Goldman Sachs estimates that upstarts could steal up to $4.7 trillion in annual revenue, and $470

billion in profit, from established financial services companies. Even a fraction of a point of market

share represents significant business, so investors are falling all over themselves to back new

entrants. Or to get in themselves: Goldman is so impressed with FinTech, it is launching its own

online lending operation. Venture capitalists invested $23.5 billion globally in FinTech in the past

two years, according to estimates by Santander.

How much is funding to Fintech startups booming?

Almost $14b in last 12 months Great set of data put together by our friends at Upfront Ventures. That's probably coming down

even further, right? When you look at Amazon Web Services and Microsoft Azure and Google, all

trying to make the cost of hosting and things even cheaper. I can see it for us, as an emerging

tech company ourselves, benefiting from this. The cost of launching a tech startup is going down

and that's manifesting itself in early stage activity.

Disruptive, discontinuous innovation rarely comes from your giant

competitive peers.

This is a space that, in no uncertain terms, is booming. In the last 12 months, we've seen almost

$14 billion of funding into this space. When we look at the quarterly trend, you see there is a very

steady uptick in both funding and deal activity. Q2 of 2010 saw $1 billion of funding and now we're

seeing nearly $3 billion in Q1 2015. So a very steady, healthy climb in investment into

emerging companies. So these are all private company investment from payments to wealth

management, from peer-to-peer lending to crowdfunding, a new generation of startups is taking

aim at the heart of the industry—and a pot of revenues that Goldman Sachs estimates is worth

$4.7 trillion. Like other disrupters from Silicon Valley, “FinTech” firms are growing fast. They

attracted $12 billion of investment in 2014, up from $4 billion the year before. Many of these

businesses are long past the experimental phase, as our special report this week explains.

Lending Club and OnDeck, two new lenders, have gone public; users of Venmo, a payments app,

transferred $1.3 billion last quarter. In his latest annual letter to shareholders Jamie Dimon, the

boss of JPMorgan Chase, warned that “Silicon Valley is coming.” Fintech is nimble and making sprightly leaps towards mobile. This, in part, because of the

almighty Millennial, the largest generation in American history, 84 million strong, born between

1980 and 2000. The Millennials are a tsunami of new consumers entering the work force, making

money, and demanding a different relationship with the institutions that safeguard their money.

That money will represent $7 trillion in liquid assets by 2020.

Findings from the Millennial Disruption Index (MDI), a three-year study of industry disruption, are

frightening for banks but great for FinTech startups: 1 in 3 Millennials would switch banks in the

next 90 days and more than half of the 10,000+ respondents don’t think their banks offer anything

different than other banks. These Millennials are looking to financial technology startups to change

the face of the banking industry. To wit, over 70% of Millennials said they would be more excited

about a new offering in financial services from Google, Amazon, Apple, Paypal, or Square than

from their own nationwide bank.

Recently, Business Insider analyzed Goldman Sachs’ business segments and said that it had

more engineers and programmers, at 9,000, than Facebook, Twitter or LinkedIn. The headline

captured BI’s takeaway: Goldman Sachs is a Tech Company.

But it’s not just Goldman. A booming FinTech industry is incubating surrounding exchanges,

hedge funds, banks and proprietary trading firms. But startups developing technology for trading

and “markets”.

Financial markets are active, and banks, hedge funds and traders will need to make money no

matter where the S&P 500 trades. Fintech startups in the trading space are still open to disruption,

but aren’t subject to individual investors’ emotions.

Dis-intermediation of Banks Fintech has resulted in dis-intermediation of banks. People are consulting online search engines

like Google increasingly in order to search for their financial concerns and are relying less and less

on the financial institutions for advisory services. Furthermore, social networks have increased the

culmination of this trend even more.

Social networks have provided a single virtual or physical avenue where people who are searching

for the same questions could address their concerns and gather all the relevant information

accordingly. This would lead to decreasing reliance on banking services lesser and lesser.

Stampede Core Fintech Platforms

1. EMM Flow Trade Platform (EMM)

2. Cloud Computing Platform (HAS – Hosted Algorithmic Suite)

3. Trade Finance Platform (TFP)

4. Techno Wealth Management Platform (TWP)

EMM Flow Trade Platform

EMM Industry Size:

EMM (Automation of Knowledge) Work is ranked second to Mobile Internet by McKinsey

report out of 12 disruptive technologies.

McKinsey estimates $ 9trillion size of economic value to be impacted in next 10years.

Platform Solutions:

Providing Liquidity and Market Making.

Revenue Model:

Stampede revenue comes from Rebates, Trade Flows and Bid/Ask Spreads.

Cloud Computing Platform

Cloud Computing Industry Size:

Cloud technology is the 4th largest disruptive technology and going to touch around $ 6.2

trillion by 2025 as per McKinsey report.

Platform Solutions:

Fair Pricing, Historical and Live Data Simulations, SAS and R Algorithms, CAPM, DPI, VWAP,

TWAP, Monte Carlo Algorithm Asset Simulation, Tracking Index and Risk Management.

Revenue Model:

Stampede revenue comes from licensing the hosted platform solutions.

Corporate Trade Finance Platform

Trade Finance Industry Size:

Globally, the Trade Finance market size is $18 Trillion, India is around $1 trillion, Russia is around

$3 trillion and China is around $5 Trillion.

Platform Solutions:

Fx Debt Swaps, Debt Syndication, Trade Flow Management, Underwriting Fx Risk Management,

Trading.

Revenue Model:

Stampede revenue comes from 40-400 Bps on platform charges and 400-800 Bps on

Underwriting.

Techno Wealth Management Platform

Platform Solutions:

Lending & Financing through global exchanges.

Revenue Model:

Stampede revenue comes from the spreads between repo and reverse repo.