FINTECH SERIES S1.E1. A look into the hottest topic of Prepared by Abdulrahman Abdi FINTECH SERIES S1.E1-25 MAY 2016

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1 FINTECH SERIES S1.E1. A look into the hottest topic of 2016 Prepared by Abdulrahman Abdi

2 WHAT S ON FOR TODAY? ü What is FinTech? & What s the big deal about it? What are emerging tech/categories under FinTech? Our FinTech Startup guest: Moussa Beidas Co-Founder/CEO

3 WHAT S ON FOR TODAY?

4 WHAT IS FINTECH? As a definition, Fintech is usually applied to the segment of the technology startup scene that is disrupting sectors such as mobile payments, money transfers, loans, fundraising and even asset management

5 THE WHY? There are two main reasons why FinTech is having such a moment right now: The first is the financial crash of That crash resulted in lay-offs at the big banks, meaning there were plenty of qualified finance professionals around to join or create new start-ups The second reason why FinTech is booming is a more cyclical one. Reports 1 show that the cost of starting a business has come down by a factor or around 1000 since the year Cost used to be a big barrier to entry for plucky companies looking to break into finance, but that's becoming less of a factor thanks to the rise of things like cloud computing 1. CB insights (2016)

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7 Payments Lending Personal Finance Bitcoin

8 EMERGING SECTORS TECHNOLOGIES Mobile Payments Money Transfer Personal Finance Blockchain/Bitcoin Lending InsurTech Crowdfunding Online Wealth Management

9 POPULAR TOPICS Mobile Payments Money Transfer Personal Finance Blockchain/Bitcoin Lending InsurTech Crowdfunding Online Wealth Management

10 LENDING Perhaps the biggest area of upheaval has been in the way people and organizations lend and borrow money Startups have found a way to squeeze these margins and offer a better deal to savers and, often borrowers, by adapting an online model Where banks can take weeks to approve a business loan, peer-to-peer lenders take as little as 24 hours

11 PAYMENTS Alongside the way people lend cash, the way we pay for things is also being overhauled Startups like Bridg are making it easier to accept cashless payments, even when you re completely offline International money transfers are also being disrupted, such as WorldRemit have attracted big investments from Silicon Valley funds for their approach to international money transfer 22 banks from around the world, including JPMorgan, Credit Suisse, and Barclays, recently formed a coalition to develop common standards and use cases for the blockchain in banking

12 BLOCKCHAIN A distributed ledger technology was first developed to underpin digital currency bitcoin. It basically uses a network effect to police transactions rather than a trusted middleman a central bank or a clearing house

13 CROWDFUNDING A model pioneered in the US by Kickstarter, crowdfunding lets ordinary people fund projects online, either by lending them money or buying equity in the project or company In US, platforms like Kickstarter and Indiegogo are dominated by idea or cause based crowdfunding campaigns people can fund cool ideas like the Pebble smartwatch before they're built

14 R3 CONSORTIUM Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland, and UBS have all formed a partnership to draw up industry standards and protocols for using the blockchain in banking The partnership is being led by R3, a startup with offices in New York and London headed by David Rutter, the former CEO of ICAP Electronic

15 LOCAL DEVELOPMENTS

16 ABU DHABI FINTECH HUB Announced on March 2, 2016: Abu Dhabi is aiming to become the capital of FinTech in the Arabian Gulf A plan in cooperation with international and regional partner on a roadmap towards achieving the Fintech goal, in collusion with stakeholders in the region and abroad Expected this year to of global uncertainty and market volatility. These factors had increased risks in the global system and increased the need to focus on financial innovation and technology to minimize these risks, he said.

17 ABU DHABI FINTECH HUB FINTECH REGLAB First of such initiative in the Middle East and North Africa (MENA) region, the RegLab has been formulated specifically to cater to the unique risks and requirements of FinTech participants The proposed RegLab continues to promote FSRA s objective in developing a stable and sustainable financial services sector in Abu Dhabi, while fostering innovation within scoped parameters buffered by risk-proportionate regulatory safeguards

18 ABU DHABI FINTECH HUB FINTECH REGLAB A bank sheet approach Instead of being subjected to the full suite of authorization regulation and rules from the outset, a customized set of rules will be applied FinTech participants enjoy a two-year period to develop, test and launch their products and services in a controlled environment Dedicated online FinTech portal Strategic Partnerships

19 It s important that the balance on regulation in this emerging industry is correct. Some allowance for the appropriate degree of regulation at an early stage to encourage alternate lenders makes sense Governor of the Bank of England Mark Carney

20 FINTECH SERIES S1.E1. Thank You