Payments innovation

Riding the wave of FinTech

Don Ginsel | Holland FinTech9 March 2015

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Fintech is Big!

Sub-sector Market Size Venture Capitalallocation

Details

Banking IT Spend $ 180 billion 29%Banking IT spend by is expected to total $179.2bn in 2013 (from Celent). IT spending is expected to grow by 3.6% in 2014 and 3.4% in 2015.

Capital Markets $ 513 billion 5%* Foreign Exchange: global FX and remittance market $513bn in 2011,rising +7% by 2015.

Payments $ 20 billion 28% Mobile payments: $17bn in 2013, rising to $110bn by 2017.Virtual currencies: $2.1bn in 2012, rising to $4.8bn by 2016.

Banking/Corporate $ 4 billion 5%*P2P lending: $1bn in May 2012 in US, £250m in 2012 in UK, rising to£1bn by 2014.Crowdfunding: $3.2bn globally in 2012.

Personal Finance $ 3900 billion 14% Personal wealth management: market globally $3.9tr of retail assets under management.

Data analysis $ 16 billion 19% Data analysis / big data is upcoming and difficult to assess in market size

Sources: Datafox.com and Forbes.com

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Phase 1: optimising existing financial infrastructure

• Payments

• Customer experience

• Risk management

Phase 2: independent financial services

• Foreign exchange

• Remittance

• crowdfunding

Phase 3: new financial infrastructure models

• Block chain technology

• Sharing models

• Peer to peer everything

The role of regulators in fintech

• Traditionally: regulate institutions• Future: regulate functions

• Slowly opening up to innovation (PSD2)• Still a large barrier to entry… and innovation

Government & regulatory support

Investor deal support

Startup growth support

Corporate innovation support

Research & news service

Incubator with housing & local network

Live connections & Events

International network of FinTech Hubs

• Hollandfintech.com