Will The Banking Industry Be Uberized? (SHU conference 2015)

Will the banking industry be Uberized?Geoffroy de Schrevel

March 19th 2015

T h e F u t u r e o f F i n a n c e

2

What has Uber (or AirBnB) done?

Gambit Financial Solutions - 2015

What has Uber (or AirBnB) done?T h e s u c c e s s f u l d i s r u p t o r s


N o t a n e w p r o d u c t … J u s t f i l l e d a g a p

A c t o r o f h i s / h e r o w n l i f e S e n s e o f c o m m u n i t y i n e v e r y d a y l i f e

Five (dying?) myths about banks

MYTH 1

People care about their banks

MYTH 2

People care about their bank

account

MYTH 3

People have lost trust in their

banks

MYTH 4

Banks have spent so much money on their brands

that the barriers to new entrants

are too high

MYTH 5

Digital is a nice opportunity for

banks to improve their efficiency

and the quality of their services


Five (well alive!) myths about Investors


MYTH 1

Investors are cash addicts

MYTH 3

Investors have all the same definition of risk

MYTH 4

Investors only want a single

recommendation.

Investors want to have choices

MYTH 2

At the end of the day, only returns matter

MYTH 5

Finance is complex and therefore expensive


PayPal, Alibaba, Lending Club,… What else?

Alternative FinanceW h a t t h e 2 0 1 4 f i g u r e s t e l l

Investors are interestedby the real impact of theirinvestments…

…and increasingly readyto go outside the traditional financialindustry channels


Golden Circle: Who will be able to inspire?

WHY

HOW

WHATSimon Sinek


After payments, after lending… an “Uber” example in Savings

T h e M a s s A f f l u e n t m a r k e t i s p o o r l y c o v e r e d

Expected Return

Simplicity

Accessibility/Transparence

Availability

Savings Account

Funds

Private Banking

The missingproduct


Inspirational…

F o r e v e r y t h i n g w e d o , w e b e l i e v e i n m a k i n g e v e r y o n e ’ s m o n e y a b e t t e rs u p p o r t f o r w h a t c o m e s n e x t

WHY

HOW

WHAT

T h e w a y w e d o t h i s i s b y m a k i n g o u rp r o d u c t v e r y e f f i c i e n t , e a s y t o u n d e r s t a n d a n d t r a n s p a r e n t

A n e w i n v e s t m e n t p r o d u c t t h a t i s a s s i m p l e a s a s a v i n g s a c c o u n t a n d a s p e r f o r m a n t a s a p r i v a t e b a n k i n g s e r v i c e



Low-cost savings solutions to everyone with a disposable amount as low as 1.000 € that

Maximizes the fit with personal profile and objectives AND

Gives a real influence on the societal usage of their savings

What the Promise should be

Some interesting features

Simple100% online subscription

No financial jargon

No arbitrage to execute

EfficientGambit optimization algorithm

Regular rebalancing

Gambit technology for potential crisis detection

AvailableInvestment as available

as a savings account

AccessibleMin investment only 1.000 €

Integrated risk profile and personal goals

Low feesFree for smaller investments

Only management fee <1%

Inexpensive underlying

TransparentNo retrocessions

No hidden costs

Clear reporting


The Uberization Has Started

Wealthfront (US)Founded in 2012

Betterment (US)Founded in 2010

AUM (Q3 2014)

1,5 Mrd $

Capital (Q2 2014)

99 Mio $

Capital (Q2 2014)

32 Mio $

AUM (Q3 2014)

875 Mio $

UK UK France Germany Germany


The Uberization Has Started

A favorable time-to-market

01Gap in the investment products offering for the Mass Affluent market

Competitive Context 02

Probable end of retrocessions for funds

MiFID, MiFID II

Regulatory Context 03

Low performance of saving accounts and euro investment funds

Economic Context


So at the end…


FinTech, Banks, Web Giants:

Who will be tomorrow financial services

champions?


Economy & Finance

Will The Banking Industry Be Uberized? (SHU conference 2015)