Bill Sullivan, Global Head of Market Intelligence at Capgemini dives deeper into the findings of the World FinTech Report.

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Bill Sullivan
Global Head of Market Intelligence
Capgemini Financial Services
#WFTR17
@WFSullivan3

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- The Wall Street Journal, 18-Nov-2015
- The Banker, 10-Jun-2015 - Time, 8-Jul-2015
- Payments Industry Intelligence, 15-Jul-2016
Technology threatens the
insurance business
- The Economist, 16-Mar-2015
- Tech Crunch, 5-Aug-2015
- Forbes, 22-Dec-2015
WeAreAllFamiliarwiththeMediaHypearoundFinTech

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Our World FinTech Report Is a Multi-Prong Collaboration
World FinTech
Report 2017
Agents of Change Executive Roundtables
Finance Connect
FINTECH Conference

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Check Out Our Agents of Change Already Released

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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3

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Global FinTech Financing Activity ($billion), 2008-15
Source: CBInsights
$billion
1.1 1.7 1.8 2.3 2.8
4.3
12.6
17.8
163
220
317
437
582
748
848
1,062
0
300
600
900
1200
0
5
10
15
20
2008 2009 2010 2011 2012 2013 2014 2015
Deals
Exponential Growth in FinTech Financing Since 2013

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China and India Lead Customer Adoption of FinTech
84.4%
76.9%
69.6%
53.5%53.3%53.0%51.6%48.8%
45.8%
42.8%40.6%39.6%
36.2%
30.4%29.8%
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
Customers Using At Least One Non-Traditional Firm for Financial Services, 2016

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Younger, Tech-Savvy, and Affluent Lead Adoption
Customer Usage of Non-Traditional Firms, 2016
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016

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Trust Advantage Flips with Positive Experience
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
52.9%
56.3%
0%
15%
30%
45%
60%
Traditional Firms Non-Traditional
Firms
Customer Trust for Traditional and
Non-Traditional Firms (%), 2016
Trust for Traditional and Non-Traditional
Firms for Customers with a Positive
Experience (%), 2016
36.6%
23.6%
0%
15%
30%
45%
60%
Traditional Firms Non-Traditional
Firms
Gen Y and Tech-Savvy customers have
higher trust in traditional firms, they
also have higher distrust in traditional
firms

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Traditional Firms Regaining Value Perception
Customer Value Perception for Traditional vs. Non-Traditional Firms, 2016
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey 2016
Ability to access services from
other institutions through your FS
institution’s Apps
Contextual experiences
Forte of Traditional
Firms
Even Competition Forte of Non-
Traditional Firms
Personal interaction
User experience
Security and Fraud Protection
Access to product/services more
innovative and relevant to me
Transparency
Ability to integrate my social
world with my financial world
Quality of service
Better value for moneyConvenience
Brand
Timely and efficient service
Low Importance Medium Importance High Importance
Non-Traditional Firms
Advantage Noted in
2016 WRBR

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Most Firms Struggling to Meet Customer Expectations
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
Top Three Moments of Truth for Customers, by Domain, 2016

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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3

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Incumbents See FinTechs As Potential Partners
22.4%
43.1%
53.7%
62.7%
76.7%
Fintech Firms Will Not Survive on Their Own
Fintech Firms Pose a Significant Threat
Fintech Firms Are Good Acquisition Targets
Fintech Firms Are Setting the Bar Higher
Fintechs Provide Opportunity for Partnership
Executives’ View of FinTech Firms (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016

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Active Partnering with FinTechs & Building In-House
18.6%
26.3%
29.6%
34.3%
38.0%
59.2%
60.0%
Acquisition of FinTech Firm(s)
Others
Setting Up of Accelerator
Partnering with an Educational Institute
Investment in FinTech
Developing In-House Capabilities
Partnership/Collaboration with FinTech
Firms’ Activeness in Various Approaches (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016

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Relatively Confident FinTech Strategy in Place
Confidence Level of Executives About Strategy to Address the
Challenges Posed By FinTechs (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
Medium LowConfidence Level High
13.0%
43.0%
44.0%

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Significant Opportunities to Better Deliver Results
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
Effectiveness of Achieving Results while Implementing
FinTech Capabilities (%), 2016
Very Effective, 10.0%
Moderately Effective, 82.5%
Not Effective, 7.5%

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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3

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Four-Step Framework to Effectively Apply Innovation
Source: Capgemini Financial Services Analysis, 2016; https://www.capgemini.com/applied-innovation-exchange/applied-innovation-exchange-framework
Facilitate the discovery of
emerging technologies,
sector issues, and how these
impact your organization
Co-locate to help shape
ideas and insights into
business models,
prototypes, and technical
architectures
Guide executive alignment
and deployment to ensure
innovation is adopted at
speed and scale
Help advance innovation
processes, improve
proficiency, and implement
best practices
Organizational Culture
Clear Vision for Innovation
Senior Leadership Buy-In and Commitment
Capgemini’s AIE Framework to Apply Innovation

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64.0%
50.7%
29.3%
17.3%
17.3%
17.3%
12.0%
10.7%
Executive Leadership Support and Buy-In
Shifting the Cultural Mind Set of the Organization
Clear Strategic Vision and Plan
Willingness to Take Calculated Risk
Willingness to Think Outside of the Box
Strategic Budget Allocation
Willingness to Replace Legacy Technology
Ensuring Innovation Plan and Business are in Sync
Leadership and Culture Are Key Success Factors
Key Success Factors on Applying Innovation (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016

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Selecting Right
Partners and
Engagement
Model
Commitment
from
Leadership
Protecting
Customer Data
Preserve
Culture of
FinTech
Being Open to
Ideas from
Other
Industries
Creation of
Sandbox
Environment
Source: Capgemini Financial Services Analysis, 2016
Collaboration Will Require New Ways of Working
Incumbents and FinTechs – Pillars of Collaboration Strategy
Pillars for
Collaboration
Strategy

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Closing Thoughts
• FinTech is clearly gaining momentum and driving change in the industry
• Emerging markets, Gen Y, and affluent are earliest adopters of FinTech
• We have a seen an explosion of activity by incumbents to adapt to this change
• We are still in the very early stages as firms search for the right formula
• Most innovation to-date focused on incremental vs. transformational change
• Firms can benefit from systematic approach– Discover, Devise, Deploy, & Sustain
• Bigger disruption could be on way with Blockchain, Big Tech and Platformification

22. The information contained in this presentation is proprietary.
© 2017 Capgemini. All rights reserved.
www.capgemini.com
in collaboration with
About Capgemini
With more than 180,000 people in over 40 countries,
Capgemini is one of the world’s foremost providers of
consulting, technology and outsourcing services. The
Group reported 2015 global revenues of EUR 11.9 billion.
Together with its clients, Capgemini creates and delivers
business, technology and digital solutions that fit their
needs, enabling them to achieve innovation and
competitiveness. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on
Rightshore®, its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini
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