The Digital Disruption has already happened

Transcription

1 12 th February 2018

2 The Digital Disruption has already happened World s largest taxi company owns no taxis: Uber Largest accommodation provider owns no real estate: Airbnb Largest phone companies own no telco infra: Skype & WeChat World s most valuable retailer has no inventory: Alibaba Most popular media owner creates none of its own content: Facebook World s largest movie house owns no cinemas: Netflix Largest software vendors don t write the apps: Apple & Google

3 Framework of Exponentials: Diamandis 6 Ds Digitised Deceptive Disruptive Dematerialise Demonetise Democratise

4 Apple 30 Things video

5 Democratisation When a technology spreads across the world Predicted there will be a billion handsets in Africa this year

6 Force: Rising Billion

7 Right now, a Masai warrior using Google on a smart phone in the middle of Kenya has access to more information than the U.S. president did just 15 years ago

8 Artificial Intelligence (AI), Robotics, 3D Printing, Synthetic Biology, Media Tech, Nanotech, Solar, Networks & Sensors

9 Internet of Things

10 Technology is a Resource Liberating Force Converting Scarcity Abundance

11 Yet-to-be-Disruptive Meat Growing Tech

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17 Amazon Prime Air

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19 Artificial Intelligence Augments Human Intelligence

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22 Complex Communication

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26 The price of solar has dropped 99.5% since 1977

27 Price of Energy Storage

28 By 2030 Electric Vehicles will be cheaper than the cheapest car sold in the US in 2015

29 Current Automative Model Underutilised Polluting Time Consuming Dangerous <4% utilisation on a 24 hour day 45% of global oil demand. 70 gal/person on earth annually 400bn hours of time spent operating a vehicle 1.3mm traffic related deaths globally

30 Self-driving cars

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32 Smartphones for diagnosis

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36 What is a genome?

37 DNA Sequencing Explosion

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39 Treating the healthy, not the sick Personalised medicine

40 Is Finance OK?

41 Framework of Exponentials: Diamandis 6 Ds Digitised Deceptive Disruptive Dematerialise Demonetise Democratise

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43 Smartphones for under R600

44 Half a billion Smartphones will be sold in Africa by end 2020

45 In developing countries more households own a mobile phone than have access to electricity or sanitation

46 A bank in 2020 will store, monetise & license a customers data You can deposit data like money. Lend, spend, invest and earn interest from your data

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48 Prediction: By 2025 virtual currencies will compete with national currencies

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51 Complex Communication

52 Robo-advisors

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55 User base: 50, 000+ registered data scientists

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58 WHAT FINTECH COVER S PERSONAL FINANCE PAYMENTS/ BILLING INSURANCE CAPITAL MARKETS REGTECH WEALTH MANAGEMENT BLOCKCHAIN / CRYPTO MONEY TRANSFER/ REMITTANCES LENDING MORTGAGE/ REAL ESTATE

59 # 1 F I N T E C H R E B U N D L I N G Unbundling leads to rebundling

60 Before: Unbundling the bank Over the last ten years, fintech startups have targeted single underserved financial products with better UI, digital marketing, and branding

61 Now: Fintechs build, buy, and partner to grow MONO -P R O D U CT T O M U L T I P RODUCT Startups move beyond a oneproduct model and are launching new services to expand customer s digitalfootprint LE VE R AG ING TE C H F O R P RODUCT I N N OV AT I ON Startups focused on personalization create new methodologies to deliver services more efficiently and holistically OP EN N EW N V ES T I N G H AN N ELS I C Startups are creating nextgen investment platforms for newasset classes ahead of bank offerings

62 MO V I N G B E O N D A N A G G R E G A TO R EX PAN D I N G INTO T A X Total Funding $368.5M Select Investors Ribbit Capital, QED Credit Karma provides Investors, free credit scores CapitalG and monitoring for 75M+ members. In 2016, the company did over $500M in revenue by aggregating financial products and offering them to its members Competitors. $82.5M $105M ~1 million Users filed tax returned with the IRS through Credit Karma s free tax software in 2017 In January 2018, Credit Karma partnered with MetaBank to offer online refund advances up to $1,000. Users of the no-interest loan receive the advance via an American Express prepaidcard.

63 From POS to lending, is crowdfundingnext? Square patent grant highlights how data and technology can lead to product innovation The recently granted patent details how a merchant might make the request through the Square point-of-sale terminal, include specific terms (e.g. return on investment), and be evaluated based on its processed transactions history.

64 FI N T ECH S EX PAN D I N T O N EW AS S ET CLAS S ES AH EAD OF BAN KS Total Funding $85.98M Select Investors Balderton Capital, Index Ventures, Ribbit Capital Revolut is a personal finance app for customers to buy, hold, and exchange currencies at a reduced fee. In addition to applying for a banking license, Revolut added fintech partnerships & added cryptocurrencies to the platform in Competitors $52.6M $138.2M $14.6M 6 4

65 # 2 C H A L L E NG E R B ANK S Fintechs will expand their global footprint

66 More to come in 2018? In 2018, European banks from the UK and Germany may look to challenge US fintech for market share and tech talent PUT T I N G D O W N G L O B A L R O O T S LAU N C H I N G IN T H E U S TransferWise is launching its new borderless account and debit card that can hold 28 currencies in one account January 18, 2018

67 # 3 BANKS INC R E ASE F INTECH PRODUCT CR E ATIO N Banks forgo partnering in favor of fighting fintech with fintech

68 Early incumbents backed wealth tech startups Q1 12 Q4 17 (11/14/17) Lines represent equity investment rounds

69 Now, incumbents prefer to launch their own robo-advisor instead of white WHITE- LABEL labeling 2017 LAUNCHED 2017 UNDER DEVELOPMENT

70 Problem: The cost of medical aid puts it out of reach of most South Africans Solution:

71 Problem: Most asset managers underperform the market, yet still ask big fees

72 Problem: SA bank fees are high and South Africans don t save enough

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74 Thank you