World Financial Symposium 27 28 September 2017 Convention Center Dublin (CCD) Ireland World Financial Symposium 2014 World Financial Symposium 2017
Innovation Jam Session World Financial Symposium 2014 World Financial Symposium 2017
Innovation Juan Ivan Martin Head of Innovation FDS, IATA Pavel Voronin CIO, S7 World Financial Symposium 2014 World Financial Symposium 2017
Innovation JAM World Financial Symposium 28 th Sept 2017 World Financial Symposium 2014 World Financial Symposium 2017
IATA s VISION To be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches our world #IATAWFS World Financial Symposium 2017
Key FDS Projects NDC NewGen ISS IFG SAI One Order TIP #IATAWFS World Financial Symposium 2017
Innovation Radar Launched Exploration Pipeline TIP NewGen ISS Blockchain Digital Trust One ID easypay Biometrics Self booking tools Dev Portal Uberization Platform Economy NDC Patents One Order Open APIs Predictive analytics Meta -searching B.I. 2.0 Business Intelligence Smart Cities Big Data Cloud Computing Artificial Intelligence Mobile BB onboard Wearables & internet of things Millennial consumer Digital Customers Apps Social Media Gaming 3D glasses +augmented reality Speed of sound flights Space travelling Inter -modality New Travel Parabolic flights Low cost models 3D printing Robotics Geolocation Electric Vehicles Intelligent Vehicles Renewable Energies Drones Self-flying Planes Autonomous Vehicles #IATAWFS World Financial Symposium 2017
Innovation Open Community Vision / Governance Ideate Communicate Fund Hack Incubate Grow #IATAWFS Culture & Mindset Resources Methodology & Measurement Partnerships World Financial Symposium 2017
Many options internally externally community #IATAWFS World Financial Symposium 2017
S7 How do we innovate Private company, efficiency is important, have to be flexible and fast to be competitive In-house RnD team (Big Data, Blockchain, ) Fast time to market / margin generation driven organization Early adoptive culture Ready to be first Blockchain solution for ticket sale system: from idea to delivery 6 months #IATAWFS World Financial Symposium 2017
S7 Blockchain use case Selling tickets using blockchain technology Purpose: Introduce a new instrument of mutual settlement with the agent network, optimize financial guarantees and deposits Fast and secure information exchange via smart contract between agent, bank and airline company allows: Transition to settlements with agents in real-time (23s instead of 2 weeks), reduction of accounts receivable gives agents the ability to work directly with the airline without providing additional financial guarantees, reduces volumes of circulation of documents online agent s stock management possibility of not limiting stocks #IATAWFS World Financial Symposium 2017
S7 Blockchain solution ❾ S7 s account Agent ❽ ❹ ❷ ❼ ❸ ❺ ❻ ❶ Agent s account Blockchain with smart-contract ❶ Agent requests purchase from S7 ❷ S7 transfers purchase data (sum, ticket number and etc.) into Blockchain ❸ Smart-contract refers to Alfa-Bank s systems and checks whether there is enough funds on Agent s current account ❹ Data on the adequacy of funds is received by the S7 s system ❺ In case of sufficient funds on the Agent s current account, S7 starts the process of issuing tickets #IATAWFS ❻ Smart-contract refers to the systems of Alfa-Bank, and the Bank makes a writeof the funds form Agent s current account to S7 s current account ❼ The result of transaction is transferred to smart-contract ❽ Smart-contract transfers data into S7 system ❾ S7 issued tickets to the Agent World Financial Symposium 2017
S7 Blockchain platform for B2B payments Driven by usecases we created platform for automation b2b trade interaction in business processes with multiple contractors (ticket sale system is only one particular case) Information exchange and payment support of trade operations on the basis of blockchain technology and smart contracts Platform participants are legal entities participating in one or more repetitive processes of buying and selling goods or services as a contractor or bank Smart contracts define the rules for interaction and document circulation between contractors, and also automate payments #IATAWFS World Financial Symposium 2017
S7 - Benefits Configurable for different purposes, such as paying for ground services or refueling Automatic fulfillment of contractual terms based on smart contracts, incl. payments in fiat currency (rubles) Legal framework of contractual relations Integration with banks for fiat payments #IATAWFS World Financial Symposium 2017
Innovation Jam THANK YOU! S7 example (2/2) Juan Iván Martín Head of Innovation, FDS, IATA martinj@iata.org linkedin.com/in/jimartin Pavel Voronin CIO, S7 p.voronin@s7.ru Facebook.com/pvoronin World Financial Symposium 2017
S7 ready to collaborate Different ways to innovate: Grow internal RnD team Fast adoption of solutions Outsource innovative tech companies Startups acquisition and integration, collaboration with venture capitals or/and create your own Multi companies collaboration S7 Group is very interested in IATA innovation groups/hacks/jam/etc #IATAWFS World Financial Symposium 2017
The Fintech Revolution Scott Robinson Founder & VP, Plug & Play World Financial Symposium 2014 World Financial Symposium 2017
Financial Innovation FinTech + Corporate Strategy Trends
Corporate Innovation Methods Internal vs. External
Engaging with new tech
The Cycles are moving faster.
Build vs. Buy? How to envelop change within the organization Creative destruction - Joseph Schumpeter 1942 i.e. The Traitorous 8
The FinTech Ecosystem Multiple Stakeholders, Complex Regulations Financial Institutions Enablers Venture Capitalists Regulators Startups
Internal: Incremental Change Optimizing Current Business Units Wells Fargo Accelerator 6 Month Program Stakeholder Business Units Capital ($50k - $500k) Notable Alumni
External: Revolutionary Change Corporate Investments that cannibalize FI services
Corporate Investors Startup Capital from Corporate Venture Units
Corporate Investors Startup Capital from Corporate Venture Units
Accelerate 1:1 & Consortium Models
Hack a hack Problem Sets + Data + API Access
Engaging with new tech 1. Streamline business unit interactions 1. Create Tech-focused Task Forces (Strategy, IT, Executives) 2. Specify KPIs and objectives (Define timelines) 2. Cut the fat of your Master Service Agreements 1. Remove the barriers as much as possible 2. Remember, you have 1000s of lawyers, startups have one 3. Offer data and data resources 1. Do you have API access? 2. Do you have dummy data? 4. Expedite the on-boarding process 1. Clearly communicate the steps required for engagements 2. Aim for less than 90 day windows ( fail fast, iterate quickly )
Moving Quickly 1. Priorities are defined and socialized 1. Each constituent has budget & strategy 2. Specify the path of success 2. Providing resources 1. SDK, API, Dummy Data, Sandbox 2. Technology-facing service 3. Earmark Budget & Milestones 1. Do you have startup facing budget? 2. What are the internal processes for next steps? 4. Moving to a fast NO instead of MAYBE 1. A forthright no saves $ & time 2. Building a culture of transparency
Thank you Scott Robinson Founder & VP scott@plugandplaytechcenter.com
Why Silicon Valley? You can teach an engineer finance but you cannot teach a financial executive how to code. - John Donovan, ex-coo of Lending Club
Why Silicon Valley? Dozens of FI s innovation arms are here!
Why Silicon Valley? Most of the capital is deployed here!
Why Silicon Valley? Some of the Most Successful FinTech Startups Are Based Here!
Why Silicon Valley? Lots of purple (globally)
Why Silicon Valley? SV = UK, Europe, China, Australia & S. America combined
Plug and Play History
Portfolio EXIts $ 20M - 100m $100M + $500 M + $1B +
Our FinTech Community Leveraging Experience and Human Capital and dozens more
Our FinTech Track Record Investing in FinTech Startups since 2000
Our Process
Our Model
Thank you Scott Robinson Founder & VP scott@plugandplaytechcenter.com
Business is Changing Retail banking is shifting The incumbents risk becoming merely capital-providing utilities that operate in a highly regulated, less profitable environment, a situation unlikely to be tolerated by shareholders. - Antony Jenkins, ex-barclays CEO
Business is Changing Technology = driver Traditional banks may not exist by 2025.
Business is Changing Investment banking is transitioning
Business is Changing Where will the revenue be?
The Consumer. Focusing on the Experience
The Implications Doomsday Scenarios 1000 Cuts Horizontal Mobile
The Impact of Tech 1000 Cuts Silicon Valley is coming. There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking We are going to work hard to make our services as seamless and competitive as theirs. And we also are completely comfortable with partnering where it makes sense. - Jamie Dimon, CEO of JPMorgan Chase
The Impact of Tech Horizontal What happens when Facebook flips on a billion wallets?
The Impact of Tech Mobile Do you have an Uber-like interface or on-demand services?
The State of FinTech An exploding ecosystem
Craigslist Services
Startup per Service
Wells Fargo Services
Unbundling of Finance
Tech Areas of Note
Regional Interests Vary
Growth Capital
Lots of innovation
Innovate-Accelerate-Deliver Michael Doersam SVP Group Finance, Emirates Chairman of IATA Financial Committee World Financial Symposium 2017
Dublin WFS 2017 Innovate Accelerate Deliver World Financial Symposium 2017
How are we doing on industry Initiatives? The Inside view The Outside view World Financial Symposium 2017
We ve had some very engaging and lively discussions
WFS 2017 Key take-aways (1) What are the most disruptive elements for our industry and impact on Finance? Losing distribution power & payments process control NDC & ONE Order eco-system Blockchain (across multiple industries) DATA power / ownership of 3 rd parties / high volume analytics Future GAFA strategies World Financial Symposium 2017
WFS 2017 Key take-aways (2) How can we accelerate our current industry agenda? Definition of common enemy (e.g., taxes, burdensome regulations, etc.) Concept of early adopters/ leaders & followers Critical mass approach Supplier engagement at industry level & collective purchase power Partnership model - early involvement of service providers Agile voting enabling rapid early adoption World Financial Symposium 2017
WFS 2017 Key take-aways (3) Industry ecosystem to innovate faster IATA model of focused innovation (crowd funding, innovation fund) IATA R&D budget Initial innovation pilots with interested airlines/ early adopters Investors communities to tap into Talent/ 3rd party identification capability World Financial Symposium 2017
Supporting Airline Industry Achievement of Sustained Financial health Beyond WFS 2016 White Paper 2 nd Edition Get in touch with us! World Financial Symposium 2017