THE FINTECH INDUSTRY

Theory and Career Perspectives

AGENDA
• Intro.

• Industry Context and Evolution.

• New Business Models, Challenges and Solutions.

• Case Studies.

• One Step Further: additional themes for the future.

• Additional Q&A.

• Resources.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

2
Andrea Maria Cosentino
Business Development Manager.

Founder & VC.

Editor Business & Finance.

Teacher, Mentor and Speaker.

Advocate & Mentor.

Advocate & Fellow.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

3
1, 2, 3. . .

The 4 th Industrial Recolution

 “It is a new chapter in human development, enabled by
extraordinary technology advances. These advances are
“
merging the physical, digital and biological worlds in ways that
create both huge promise and potential peril.”

- World Economic Forum -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

5
QUESTIONS SHAPING THE FUTURE

How do Countries develop ?

How organizations create value ?
What it means to be human ?

The real opportunity is to look beyond technology:

find ways to give the greatest number of people
the ability to positively impact their families,
organizations and communities.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

6
WH-EXT
• AI
• Data
• Cloud
• Cybersecurity
• Automation
Social Digital
E-Commerce-isation
&
API-isation
Rejuvination Efficency
• Education • Back-Office Industries
• Healthcare • Capital Efficiency
• IoT • Financial Inclusion
• Future-Food • Co-Sharing

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

7
Being Successful in 2030

New Industry, New Skills.

 “
“There is this mythology that says that when people are born,
their brains are essentially fixed very early on and they're not
able to change their connections. I was aware that was a myth
and that people could learn new skills.”

- Daniel Tammet -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

9
SKILLS FOR THE PRESENT-FUTURE

Cognitive Flexibility
Digital Literacy
Digital Media Literacy Analytical Thinking
Numerical Thinking
Computational Thinking

Decision Making
Creative Problem Solving
Emotional/Social Intelligence
Innovative Mindset
(Remote) Leadership
Entrepreneurship
Communication Skills
Customer Service
Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com
10
No More Excuses

Launch Your Next Venture

 “
“If you’ve got an idea, start today. There’s no better time than
now to get going. That doesn’t mean quit your job and jump
into your idea 100% from day one, but there’s always small
progress that can be made to start the movement.”

- Kevin Systrom, co-founder of Instagram -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

12
THE OPEN SOURCE ENTREPRENEURIAL ECOSYSTEM

EVERYTHING From FinTech to Food, the new world we live in

trends towards perfect competition.
CAN BE BUILT
The fact that an industry or new niche is overloaded
+ does not prevent a new entrants to be successful.

API This is fostered by tectonic shifts in the new economies:

& • All industries that are being digitalised.

CLOUD
• Digitalization changes customer reach potential.
+ • Ruthless marketing & pricing practices.

WHITE • The consumer is short term committed

LABELING but long term unloyal.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

13
The New Economy of New Economies

Evolving Business Models

 “
“...they sell dollar bills for seventy-five cents
and take credit for how fast they’re growing.”

- Dan Lyons -
Author: Lab Rats: How Silicon Valley Made Work Miserable for the Rest of Us

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

15
FROM GIG TO CROWD AND MORE

GIG ECONOMY CROWD ECONOMY

HEALTH ECONOMY
ALT-FOOD ECONOMY CLOSED-LOOP ECONOMIES
FITNESS ECONOMY
DATA ECONOMY
(DAO) DECENTRALISED MULTIPLE (DIGITAL)
AUTONOMOUS ORGANIZATIONS WOLRDS ECONOMY
CRAFT vs MASS ECONOMY
OPEN ECONOMY
Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com
16
Past, Present, Future.
Brief History of Money, Trust
and FinTech
 “Money is only a tool.
It will take you wherever you wish,
“
but it will not replace you as the driver.”

- Ayn Rand -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

18
TRUST & MONEY

TRUST

Noun: “ firm belief in the reliability,

truth, or ability of someone or
something”
MONEY
Verb: “ believe in the reliability,
“Money is any good that is widely used
truth, or ability of.”
and accepted in transactions
involving the transfer of goods and
services from one person to another.
Economists differentiate among three
different types of money:
commodity money, fiat money, and bank
money.”

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

19
THE MIDDLEMAN

CENTRALISED VEICHLES OF TRUST REPRESENTED BY MONEY

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

20
THE INDUSTRY

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

21
The day FinTech Happened
Raise and Growth of the
industry of the future.
 “
“Ignoring technological change in a financial system based
upon technology is like a mouse starving to death because
someone moved their cheese”
– Chris Skinner -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

23
 THE NEW INDUSTRIAL REVOLUTION

E-TRADE
ONLINE BANKING
CHALLENGER BANKS
1982 2013
SMILE TO PAY
1950
PANTELEGRAPH 1971 2009 2017
TELEGRAPH
1860
1966
’07 / ’08

1967 2011
1918 1960
QUOTRON
1981
2015
1998

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

24
A NUMBER’S GAME

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

25
MIFID2, Electronification, Automation
MIFID2 It is a cornerstone of the EU's regulation of financial markets seeking to improve their
competitiveness by creating a single market for investment services and activities and to ensure a high
degree of harmonised protection for investors in financial instruments.

MiFID sets out:

• Conduct of business and organisational requirements
for investment firms;
• Authorisation requirements for regulated markets;
• Regulatory reporting to avoid market abuse;
• Trade transparency obligation for shares; and
• Rules on the admission of financial instruments to trading.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

26
PSD2
PSD2 PAYMENT SERVICE DIRECTIVE 2
PSD2 will break down the bank’s monopoly on their user’s data. It will allow ‘merchants’, businesses like Amazon, to
retrieve your account data from your bank - with your permission. That means when you buy something they can
make a payment for you, without having to redirect you to another service (like PayPal or Visa).

• Contribute to a more integrated and efficient European payments market.

• Level the playing field for payment service providers (new players).
• Make payments safer and more secure.
• Protect consumers.
• Encourage lower prices for payments.

PSD2 outlines two types of

regulated TPP that will be granted
direct access to customer accounts:

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

27
OPEN BANKING
OPEN BANKING «forces the UK’s nine biggest banks – HSBC, Barclays, RBS, Santander, Bank of Ireland, Allied Irish
Bank, Danske, Lloyds and Nationwide – to release their data in a secure, standardised form, so that it can be shared
more easily between authorised organisations online.»

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

28
Modern Problems
Modern Solutions
 “
“We’re witnessing the creative destruction of financial services,
rearranging itself around the consumer. Who does this in the
most relevant, exciting way using data and digital, wins!”

– Arvind Sankaran -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

30
A NEW INDUSTRY

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

31
A NEW BANKING

32
A NEW RETAIL
PARADIGM

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

33
Let’s Get Real
Case Studies
 “
“If banks can’t offer something more valuable than Amazon
Prime, then we’re probably in the wrong business.”

– Ramy Nassar

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

35
NEW PAYMENTS
ECOSYSTEM

36
NEW
ECOSYSTEM

37
CASE STUDY: MONZO

Monzo (formerly Mondo) was founded in 2015 with a

view to building a banking experience centred around
the smartphone.

Monzo made the decision to build its technology platform in-house from scratch, using open-source
technologies rather than buying off-the-shelf products from vendors. It also uses plug-and-play
technology such as cloud-based IaaS for hosting servers and SaaS for data warehousing.

Monzo believes that this approach will enable it to scale rapidly and efficiently, and allow it to process
data and transactions in real time rather than in batches.

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

38
CASE STUDY: REVOLUT

London-based mobile bank Revolut’s two million customers can set up an app-based current
account, spend in over 150 currencies with no fees and send free domestic and international
money transfers using the interbank exchange rate.
Although only a recent development, neobanks like Revolut, which has blossomed with over
10 million users, enjoy lower infrastructure costs thanks to services like AWS and Azure. And
the most significant barrier, a banking license, has become obtainable from regulators or via
a partnership with incumbent banks. Revolut and it’s $800M+ in venture capital is not the
only Neobank shaking things up.

https://blog.bottomup.io/case-study/revolut-case-study/

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

39
CASE STUDY: BLOOMBERG

The Bloomberg Terminal's success in the 1980s birthed an empire. Today, that empire is
under siege from competitors, government regulations, and the changing nature of
finance itself. More than 320,000 people around the world — mainly traders, analysts,
and brokers — pay about $24,000 a year each to use the Bloomberg Terminal to access
real-time market data, communicate with other users, get the latest news, pull company
data, and more.

Today, the Bloomberg empire spans everything from financial data to television. It has a
venture capital arm, a research arm, and a whole suite of products for trading in the
capital markets.

https://www.cbinsights.com/research/report/bloomberg-terminal-disruption/

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

40
Break It
Or .. Watch It
The Future of Banking by Henry Arsalanian

(Click to Play)

42
New Themes
Financial Inclusion
 “Financial inclusion matters not only because it promotes
“
growth, but because it helps ensure prosperity is widely shared.
Access to financial services plays a critical role in lifting people
out of poverty, in empowering women, and in helping
governments deliver services to their people.”

— Sri Mulyani Indrawati -

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

44
To Be or Not To Be . . . Banked.

• ACCOUNT OWNERSHIP: Globally, 69 percent of adults have an account, up from 62 percent in 2014 and 51
percent in 2011. Account ownership varies among economies and by individual characteristics like gender and income.

• UNBANKED: About 1.7 billion adults remain unbanked—without an account at a financial institution or through a
mobile money provider. In 2014 that number was 2 billion.

• THE IMPORTANCE OF SMARTPHONEs AND CONNECTIVITY

3 DIMENSIONS OF FINANCIAL INCLUSION

- ACCESS TO FINANCIAL SERVICES
- USAGE OF FINANCIAL SERVICES
- QUALITY OF PRODUCTS AND SERVICE DELIVERY

45
G20 PRINCIPLES FOR DIGITAL FINANCIAL INCLUSION

46
TECH-FOR-INCLUSION

47
New Themes
Gamification & Democratization
 “The Game gives you a Purpose.
“
The Real Game is, to Find a Purpose.”
― Vineet Raj Kapoor

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

49
THE ASPIRATIONAL CLASS
The “aspirational class” refers to a category of individuals whose status is defined by cultural sophistication
rather than income.

The aspirational class distinguishes itself from both the “leisure class” that emerged in the late 19th century
and the “yuppies” of the 1990s.

They differentiate by taking informed decisions. It’s the cost of information, not objects, that forms this
barrier. In other words, it’s not about being able to afford almond milk, it’s about knowing its nutritional
value, or where to find it, or why it’s better for the environment… Not knowing these things is tantamount
to exclusion.

50
GAMIFICATION & DEMOCRATIZATION

51
Additional
Resources
 “Happiness is only real when shared.
“
― Christopher McCandless

Andrea Maria Cosentino – Copyright 2020 – www.licasventures.com – www.andrecose.com

53
Resources
Subscribe to my newsletter to get the latest updates at
www.andrecose.com and www.licasventures\

Read my latest articles

on my Blog: https://andrecose.com/blog
Follow me on Medium: https://medium.com/@andre.cose
Follow me on Ninjamarketing: https://www.ninjamarketing.it/author/amcosentino/

Watch my panel at ESCP on AlgoTrading -

https://www.youtube.com/watch?v=ZVbB0oArdlo&feature=emb_title
Exclusive: my last publication on Financial Inclusion on the MIT Tech Review.
https://insights.techreview.com/financial-inclusion-fintech-ing-the-underbanked/

Let’s connect on LinkedIN: https://www.linkedin.com/in/andrecose/

FollowMe on Twitter: https://twitter.com/andrecose
Follow Licas Ventures on Linkedin: https://www.linkedin.com/company/licasvc
and Twitter: https://twitter.com/licasvc

54
THE ASPIRATIONAL CLASS
• https://www.openbanking.org.uk/

• https://www.innovatefinance.com/

• https://fintechcircle.com/

• https://cfte.education/

• https://rise.barclays/

• https://www.level39.co/

• https://www.youtube.com/watch?v=EM7NB1_NtC4&feature=youtu.be

• https://www.henriarslanian.com/

55
Resources
Nutmeg – Start your Managed Fund with 6 Months Fee-Free
https://nutmeg.mention-me.com/m/ol/jx3ac-andrea-maria-cosentino

Revolut - Get your Revolut Account with Free Card

https://revolut.com/referral/andreafgw

Freetrade - Invest in stocks and ETFs commission-free. Sign up, get a free share worth up to £200.
https://freetrade.io/freeshare/?code=E5CYAXG059&sender=NICGXTSW

Finmize – Subscribe and get free Finance & Economy news, analysis, Events and Perks.
https://www.finimize.com/invite?kid=HQRZ1

Bloomberg – Get access to Bloomberg.com for 3 months, starting April 22 through July 31st.
https://www.bloomberg.com/help/question/free-student-access-through-july-31st/

CashCoach - Manage Money Like A Champion, Saving challenge, Smart analytics, Daily motivation.
https://cashcoach.app.link/YaaBYp1su6

Genuine Impact – Claim 1 year Free Access to Analysis and Research tools.
http://genuineimpact.io/claim?h=%E2%80%8B4bae8e
56
Additional

Q&A
Thank
You