12 th February 2018 The Digital Disruption has already happened - PowerPoint PPT Presentation

12 th February 2018

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

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

Apple 30 Things video

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

Force: Rising Billion

“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“

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

Internet of Things

Technology is a Resource Liberating Force Converting Scarcity ⟶ Abundance

Yet-to-be-Disruptive Meat Growing Tech

Amazon Prime Air

Artificial Intelligence Augments Human Intelligence

Complex Communication

The price of solar has dropped 99.5% since 1977

Price of Energy Storage

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

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

Self-driving cars

Smartphones for diagnosis

What is a genome?

DNA Sequencing Explosion

Treating the healthy, not the sick Personalised medicine

Is Finance OK?

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

Smartphones for under R600

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

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

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

Prediction: By 2025 virtual currencies will compete with national currencies

Complex Communication

Robo-advisors

User base: 50, 000+ registered data scientists

WHATFINTECHCOVER S PA YMENTS/ INSURANCE BILLING PERSONAL CAPITAL FINANCE MARKETS WEAL TH MANAG EMENT REGTECH MONEY BLOCKCHAIN TRANSFER/ / CRYPTO REMITTANCES MORTGAGE/ REA LEST A TE LENDING

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

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

Now: Fintechs build, buy , and partner to grow 1 2 3 MONO -P R O D U CT LE VE R AG ING TE C H OP EN N EW I T O M U L T I – P RODUCT F O R P RODUCT N V EST I N G C I N N OV AT I ON HAN N ELS Startups focused on Startups are creating next- Startups move beyond a one- personalization create new gen investment platforms product model and are launching methodologies to deliver for newasset classes new services to expand services more efficiently and ahead of bankofferings customer’s digitalfootprint holistically

MO V I N G B E O N D A N A G G R E G A TO R EX PAN DI N G INTO T A X T otal Select ~1 million Funding Investors $368.5M Ribbit Capital, Users filed tax returned with the IRS Q E D Credit Karma provides through Credit Investors, free credit scores and Karma’s free tax softwarein 2017 CapitalG monitoring for 75M+ members. In 2016, the company did over $500M in revenue by aggregating financial In January 2018, Credit Karma products and offering partnered with MetaBank to offer online refund them to its members advances up to Competitors. $1,000. Users of the no-interest loan receive the advance via an American Express prepaidcard. $82.5M $105M

From P O S to lending, is crowdfundingnext? Square patent grant highlights how data and technology can lead to product innovation Therecently 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.

FI N T ECH S EXPAN D I N T O N EW ASSET CLASSES AH EAD OF BAN KS T otal Select Investors Balderton Capital, Funding Index Ventures, $85.98M RibbitCapital Revolut is a personal finance app for customers to buy , hold, and exchange currencies at a reducedfee. In addition to applying for a banking license, Revolut added fintech partnerships & added cryptocurrencies to the platform in2017. Competitors $52.6M $138.2M $14.6M 6 4

# 2 C H A L L E NG E R B A NK S Fintechs will expandtheir global footprint

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

# 3 BANKS INC R E ASE FINTECH PRODUCT CR E A TIO N Banks forgo partnering in favor of fighting fintech with fintech

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

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

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

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

Problem: SA bank fees are high and South Africans don’t save enough

Thank you