fintech practice brochure

SERVICE OFFERING OVERVIEW — FINTECH PRACTICE FINTECH PRACTICE — SERVICE OFFERING OVERVIEW

FINTECH PRACTICESERVICE OFFERING OVERVIEW

© GreySpark Partners 2016© GreySpark Partners 2016


To achieve our objectives, we have developed a proprietary framework that is built on:

1. COLLABORATION WITH VENDORS GreySpark receives regular updates on vendors’ products, key features and market trends.

2. STRONG RELATIONSHIPS GreySpark sustains strong and lasting relationships with financial markets organisations.

3. HANDS-ON EXPERIENCE GreySpark has experience at offering and delivering tailored solutions that suit all our clients’ needs.

BACKGROUND

Sell-side Institutions Buy-side Institutions Solution Providers

Investment Banks Venture Capital Funds Exchanges / ECNS

Corporate Banks Private Equity Funds Market Data Providers

Brokers and Dealers Hedge Funds Established and Emergent FinTech Companies

Market Participants

Financial services have entered a new era where digital strategies, data driven decisions and technology improvements have become key success factors to survive. GreySpark Partners understands how critical the application of technology is in today’s modern wholesale finance environment and continuously monitors and analyses the FinTech marketplace. The FinTech Advisory Practice has evolved from GreySpark’s strong experience advising clients on the use of and investments in new technologies and financial applications.

GreySpark’s goal is to bridge the gap between the hundreds of emerging FinTech players and financial institutions that have identified a need to assess the technology behind their services and, hence, become more efficient. GreySpark aims to bring a realistic view/opinion on the market in order to help its clients differentiate between noise and substance in the FinTech industry.



GREYSPARK

INSIGHTIDENTIFICATION OF MARKET DRIVERS

PRACTICAL INVOLVEMENT IN THE DIGITAL TRANSFORMATION

FOR FINANCIAL SERVICES

NETWORKCONTINUOUS DIALOGUE WITH FINTECH COMPANIES

CULTIVATING A COMPLETE ECOSYSTEM OF INNOVATORS

DIRECT INVOLVEMENT WITH ALL SIDES: CLIENTS, VENDORS & REGULATORS

KNOWLEDGETEAM OF EXPERTS

DEEP PRODUCT UNDERSTANDING

FACT/DATA-BASED ANALYSISSTAYING AHEAD OF THE FINTECH REVOLUTIONBased on its continuous strategic, commercial and technological monitoring of the FinTech marketplace, GreySpark provides thought leadership, decision support and proprietary research.

GreySpark leverages its place at the heart of the financial industry to act as a facilitator between the different communities covering innovative FinTech firms, private equity funds, global & regional financial institutions and exchanges.

© GreySpark Partners 2016

FINTECH PRACTICE — SERVICE OFFERING OVERVIEW


DUE DILIGENCE SERVICES ARE AVAILABLE TO STRATEGIC INVESTMENT FUNDS, TRADE BUYERS AND FINANCIAL INSTITUTIONS. WE HELP YOU MAKE BETTER INVESTMENT AND FINTECH SELECTION DECISIONS

COMMERCIAL DUE DILIGENCE• Market sizing• Key market drivers and trends• Competitive positioning• Market entry/exit strategy• Partnerships/technology ecosystems• Acquisition target screening• Portfolio review

OPERATIONAL DUE DILIGENCE• Lean business process review• Software delivery process improvement• Business process automation/re-engineering• Staffing and talent management• Senior leadership team evaluation

TECHNOLOGY DUE DILIGENCE• Enterprise architecture• IT process• Total cost of ownership modelling• Software audits/best practice assessments

GreySpark’s due diligence services are available to strategic investment funds, trade buyers and financial institutions. We help you make better investment and FinTech selection decisions.

FINTECH INVESTOR DUE DILIGENCE SERVICES




COMMERCIAL STRATEGY• Market sizing• Key market drivers and trends• Competitive positioning• Pricing strategies• Market entry/exit strategy• Partnerships/technology ecosystems

CORPORATE DEVELOPMENT• Business strategy – advisory and execution• New product strategies• Client segmentation and sales strategy• Product development strategy• Roadmap development• Capital raising support

GreySpark helps you grow faster, accelerating your momentum through the market across the key criteria of commercial strategy and corporate development.

FINTECH DEVELOPMENT SERVICES

THANKS TO ITS PLACE AT THE HEART OF THE FINANCIAL INDUSTRY GREYSPARK IS ABLE TO PROVIDE SERVICES RANGING FROM COMMERCIAL STRATEGY TO CAPITAL RAISING SUPPORT




There has been an explosion in the number of new technology-led entrants in financial services in the last few years, broadly operating under the term FinTech. Senior business leaders have watched/heard about all the significant innovations FinTechs have brought without having the opportunity to engage with them and develop strong and long term action plans.

To support clients in the process of developing a FinTech response, GreySpark offers a progressive three-step approach.

FINTECH IMPACT ANALYSIS AND SUPPORT

SENIOR BUSINESS LEADERS HAVE WATCHED AND HEARD ABOUT ALL THE SIGNIFICANT INNOVATIONS FINTECHS HAVE BROUGHT WITHOUT HAVING THE OPPORTUNITY TO ENGAGE WITH THEM

1. EDUCATEBaseline understanding of the FinTech space e.g. landscape,

key trends and key market drivers

Provide thought leadership and support to senior management on how it relates to clients’ core business

Organise stakeholder workshops to help to develop a better understanding of product functionalities

2. VALIDATEIdentify and validate opportunities for early stage

companies to transform the business

Research and analysis to match business needs with relevant solution providers

Initiate engagement by introducing client to the selected companies

3. TRACKPrioritisation of engagements with the right companies

Long term strategy context

Sizing of the expected returns

Overview of the comprehensive GreySpark program




GreySpark is developing the only tool that maps FinTech solutions to our clients’ business functions.

By providing clients with access to its proprietary mapping of market structure and FinTech trends GreySpark is responding to an increasing need from industry participants to position themselves on this moving/changing market.

GreySpark analyses companies and products so that clients can not only develop a deep understanding of the marketplace, but also remain abreast of any new advancements and hence react fast and take fact based decisions.

FINTECH SOLUTIONS

AGGREGATION

MATCHING

BUSINESS NEEDS

FINTECH MARKET SCANNING& ANALYSIS SUPPORT



INDUSTRY FOCUS3. TECHNOLOGY-ENABLED

FINANCIAL SERVICES•Cybersecurity&fraudprevention•Socialtrading&wealthplatforms•Alternativelending(consumer&business)•Peer-to-peer&crowdfundingplatforms•Blockchain/cryptocurrencies

4. BANKING & INSURANCE •Front-enddigitalchannelsolutions(mobile&PFM)•Lendingsolutions•Payment&cashmanagementsolutions•Corebanking•Insurancesolutions(front-toback-end)

5. PAYMENTS•Internationalpayments&remittance•Paymentgateways&merchantacquiring•Mobilepayments,pre-paid&e-wallets•Analytics&loyaltyschemes

1. CAPITAL MARKETS•Financialcontent(information&analytics)•Trading,risk&compliancetechnology•Datamanagement•Tech-enabledmarketinfrastructures•Post-tradetechnologies&services

2. INVESTMENT MANAGEMENT•Front-endsolutions(adviser,onboarding&knowyourcustomer)•Portfoliomanagement•Performanceattribution&reporting•Risk&compliancesolutions•Back-officereporting&processing

GreySpark has grouped FinTech into five thematic areas to help client focus. GREYSPARK HELPS

LEADING MARKET PARTICIPANTS TO ADDRESS THE INCREASING NEED FOR INNOVATION, EFFICIENCY AND TRANSPARENCY IN THE FINANCIAL SERVICES INDUSTRY



WHAT WE OFFER1. THOUGHT LEADERSHIP AND SUPPORT• GreySpark provides thought leadership and market intelligence services

tailored to its clients through publications and subscription services.

• GreySpark is actively supporting innovation in finance through active involvement in the digital transformation of incumbent financial systems.

• GreySpark’scontinuousdialoguewithFinTechcompanies(throughtheCapitalMarketsIntelligencedepartment)enablesittocultivateacomplete ecosystem of innovators and therefore develop an intimate understanding of products and key market trends.

2. ADVISORY SERVICES• GreySpark’s growing team of industry experts enable to provide sound

advice to interested FinTech investors and financial institutions.

• We have demonstrated our knowledge and strong expertise in advising clients from all sides across the Capital Markets industry to help them stay abreast of new technologies that are being developed and assist them in challenging projects.

3. ACCESS TO PROPRIETARY RESEARCH AND MARKET MONITORING TOOLS

• GreySpark provide its clients with an intimate understanding of FinTech market and its trends.

• Greyspark provide a comprehensive and unbiased information on technology solution providers globally across the capital markets industry.

• GreySpark has developed a unique proprietary framework to approach commercial, operational and technical due diligence of financial technology solution providers.

GreySpark’s FinTech practice is built on a combination of proprietary research and practical experience.



FINANCIAL TECHNOLOGY PROJECT DEVELOPMENT CATCH-UP WITH THE FINTECH TREND

Context and ObjectivesMany traditional institutions are trying to replicate certain key FinTech design principles by using mechanisms such as customer experience labs, rapid prototyping research and test new services. The main goal of such initiatives is to create more intuitive products. In this context, our client asked us to assess the level of threat in one of their high value segment and come up with strong and structured action plans aligned with their long term strategic goals.

Approach The project was delivered in different phases – from the least to the most complex objective. The source of information for the deliverables:• Existing knowledge, benchmarks and models from

Capital Markets Intelligence practice and consultants• Market analysis; top-down approachof the key

functionalities that the solution should feature• Assessment of the project feasibility; several discussions

with law firms and the regulators• Interviews with market participants including top

industry players• Regular briefing sessions with the client’s Project

Management team

DeliverablesIn the first part of the project, GreySpark got engaged in several Q&A sessions, both on site and remotely. The goal

was to provide our client with all news, events, research and insights in the FinTech regulatory and technology related to innovative initiatives in the secondary trading space.

Later in the project, our team took part in the final innovation sprint of the project and went on site for about a month in order to contribute to the elaboration of the final reports/deliverables intended to be reviewed by the top management committee of the institution. The final business case included a defined market entry strategy, a precise market sizing, a roadmap, the time to market approach, an implementation plan as well as a high level view on the different revenue streams and the business model.

Client BenefitsAs a result of the project, the client:• Acquired significant knowledge in the field of innovative

financial technology solution providers• Was able to send the very positive signal that the company

is not only on its way to developing and integrating innovative solutions but also preventing new entrants from gaining traction in their space.

• Developed new strategic options for the future e.g. reach new types of clients and expand its existing network of stakeholders

• Explore new revenue sources that could act as a natural hedge for the client’s traditional trading and settlement services

ProblemHelp to position our client within the Fintech ecosystem so that the senior leadership team remains aware of new developments and can prioritise engagements with the right companies that will make a positive difference to our client’s business• Deliver a clear and comprehensive cartography of client’s

options with Fintech in line with the current strategy• Designing a target interaction model that is both more

effective for Fintech companies and more efficient for the bank

• Outlining what the operational interactions with Fintech companies will look like in 3-5 years

Approach GreySpark supported the process by operating in three different phases:We started by providing FinTech thought leadership and support to senior management on the FinTech landscape and how it relates to the client’s core business

Then, we identified and validated opportunities early stage companies to transform the business, within the context of the client new IT architecture and strategic plan

Finally, we helped to position the client within the FinTech ecosystem so that the senior leadership team remains aware of new developments and can prioritise engagements with the right stakeholders

ContextOur client’s Global Markets management team wanted to become more engaged in the area of Fintech. The team wished to understand the changing landscape better and identify the right early stage companies that can both enhance their business and benefit from interaction with their leadership team.

Client Benefits• Clear and optimised engagement and investment strategy

defined by client’s business priorities• Prioritisation and sizing of the associated investments or

Fintech engagements• Confidence that client is properly leveraging the Fintech

ecosystem in line with business objectives

CONTACT US:

CASE STUDIES

GreySpark Partners – LondonCapacity House2-6 Rothsay StreetLondon SE1 4UDUnited Kingdom+44 (0)20 7011 9870

GreySpark Partners – Hong KongUnit 1706B, 17/F, FWD Financial Centre308 Des Voeux Road CentralHong Kong+852 3955 8868

GreySpark Partners – SydneyLevel 12 Plaza Building Australia Square95 Pitt StreetSydney NSW 2000Australia+61 2 9299 9298

GreySpark Partners – Edinburgh93 George Street, Edinburgh EH2 3ES United Kingdom+44 131 240 1241

GreySpark Partners – New York25 Broadway, 5th Floor (Suite 5107)New York, NY 10004USA+1 646 494 8371

For more info please go to: greyspark.comor contact: [email protected]

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