larc2014 - payments innovation looking forward to the future
TRANSCRIPT
1 SWIFT Latin American Regional Conference (LARC) - 2014 28-28 May 2014
Andres
Fontao
Next Bank
Global
Ricardo
Hissao Leo Vernazza
CIP-Camara
Interbancaria de
Pagamentos
Brazil
Paganza
Uruguay
Payment Industry Innovation: Future Perspectives
Innovation Special Interest Session
#LARC2014
@swiftcommunity
Daniel Rojas
Rocket
Colombia
May, 2014
Payments Innovation Ricardo Hissao
Payments Timeline
Pre 9000
BC 1960s
Barter
1970s 1980s 1990s 2000s 2010z
RTGS
Switching
Services
Automated
payments ATM
Credit Card Online
payments
POS PC
Pre-Paid
card system
Online
auctions
Online
banking Cross border
payment
message Magnetic
Stripes
Barcodes
What is innovation?
“In many cases innovation in retail
payments represent only incremental
improvements to existing and established
payments service”
How to Innovate?
Analyzing
Planning
Listen to your
clients
Collaborate across IT
and Business
Welcome
diruptive
technologies
Start Small
Think Big
Examples:
Barriers to Innovation
Inadequate attention
with Security and Fraud Limited
interoperability
Central Bank
Central Banks have very
measured view about the
anticipate impact of innovation in
their countries
Barriers to Innovation
IT systems and culture are the biggest barriers to innovation
Ranking of barriers to innovation, by size of bankWhere 1 is the highest barrier nad 6 is the lowets barrier
Large Banks Medium banks Small Banks1 IT Systems IT Systems IT Systems
2 Culture Culture Regulation
3 Organisation silos Organisation silos Financial
4 Regulation Regulation Culture
5 Management priorities Management priorities Management priorities
6 Financial Financial Organisation silos
Efma-Infosys Innovation Survey 2013
Note: Size of Bank is based on rankings from The Banker magazine: Large is 1-50, Medium 51-300 and Small is > 300
Payment phobia more common than fear of spiders
26% of people are ‘paynuphobes’, which is defined as
people who avoid using contactless payment cards and
mobile phone banking because of fears around security
68% of people experience some sort of phobia
25% of people are scared of spiders; 34% are scared of
heights; 14% are scared of enclosed spaces
(claustrophobia); 5% are scared of clowns; 3% are scared
of bridges; nearly 1% are scared of buttons
Source: The Payments Council - UK
36% of people would avoid using a
contactless payment card and 42% would
avoid using mobile phone banking
Security Enhancement
Biometric ATM
Voice
Checking
Eye retina
scan
What is coming …
Cash and coins: Anonymous
form of payment will be one of
the reasons why hard cash
continues to survive
Digital Jewelry: Pieces of
security jewelry to payment
authentication
NFC placed
inside wearable
smart technology
NFC chip
under skin
Problem: Payments Regulation Today
The increasing number of policy and
regulatory stakeholders focusing on
payments can create uncertainty
Constant changes in the financial
market, witch requires monitoring
extremely dedicated
The rate and pace of change
compromising the effectiveness of
existing legislation
Smart Prism Framework Innovation Inside of Payments Regulatory Process
Thanks !
App para el pago de gastos mensuales.
PROBLEMA
PROBLEMA
- App #1 categoría Finanzas del App Store
- Ganador BBVA Open Talent 2013
- Premio Nacional de Innovación 2013
- 2da startup más disruptive en LATAM (NextBank Innotribe Bogotá)
- Mención especial del BID-Fomin 7 tecnologías para inclusión financiera 2012
- Elegida entre las 20 apps más innovadoras del mundo, app Circus, Barcelona, 2014
RECONOCIMIENTOS
- Comisiones
- Reducción de costos
- + Transacciones (+ información)
- Servicio innovador
- Sin costo de TI
BENEFICIOS PARA EL BANCO
- Mobile-first
- Especialización
- Tecnología
- Marketing digital
KNOW HOW DE PAGANZA
- 10 facturas por usuario por mes
- México:
- 60% de los celulares que se venden son smartphones
- 20 millones de smartphones
OPORTUNIDAD
Optimal financial
Decisions
53%
Piensan que no hay diferencia entre las ofertas de bancos
1 de 3
Están dispuestos a irse a otro banco en 90 días
Prefieren ir al dentista que oír al Banquero
Problem.
People handle their money
poorly. They make bad financial decisions and
choose the wrong financial products.
Solution. )
v USERS
A free and anonymous platform
to make correct financial
decisions.
_ BANKS
Connecting the right
Clients with the correct
products.
70% IN ACQUISITION COST.
>
%
& 4 FINANCIAL TOOLS
# 1. HOW TO ACHIEVE A FINANCIAL
GOAL-
$ 2. FIND THE BEST FINANCIAL
PRODUCT-
! 3. HAVE AND MAINTAIN A BUDGET-
" 4. DIAGNOSIS OF PERSONAL
FINANCE-
Thinking different to solve
an obvious problem %
• Financial Mindset + alternative view of the problem.
• Big difference between USA and Latam (Not only cut and paste).
• Long process of reinvention and iteration of the tools and approach of
rocket.
• Learning of the acceleration process of an entrepreneurial ecosystem.
• Not being afraid to make mistakes, learn and keep doing
+
+
=
+
+
Rocket Users Experience. ¥
Business Model. '
SELL OF LEADS
Finance.
1. Follow Up Lead: Leads are paid as
long as the loan is not in default.
2. Delivered: Leads are paid when the
financial product is Delivered.
3. Long: Leads are paid when the user
fills the complete questionnaire
4. Basic: Leads are paid when the user
fills the sort questionnaire
Retail.
• Delivered: Leads are paid with
effective sell of the goods.
• Sample: Leads are paid when the
users begin a trial.
• Basic: Leads are paid when the users
general data is acquired.
WHITE LABEL
• Sale of simple variation of the tools
of Rocket, adapted to the web page
of banks .
• Only for strategic allies.
ACCESS TO DATA
• Access to our data set of users and
financial product information.
• Standardized reports of information
to entities.
More than
big Enough. h
Usd$ 5,8 Billion a year.
The market opportunity
150M Banked users
4M New credits (monthly)
$150 Acquisition cost of the banks
per each client
Currently
6-12 months
12-24 months
Long Term Opportunity. †
The creation of value to our users using the Rocket
tools allows us to gather "Big and Smart Data"
essential for the solution of making optimal financial
decisions for Latin-Americans.
Users Data. Financial Products
Data.
Business
Intelligence. The best tool for
financial decisions.
_ ) o + * = ( ) x
Our Team. x
Daniel Rojas
CEO Daniel worked for 7 years in the integrated financial
regulator, developing standards for financial
inclusion, consumer rights and financial risks. mx.linkedin.com/pub/daniel-rojas/2b/816/a60/en
Felipe Gaviria
CFO / CCO Felipe has a Master degree in economics. He has
worked for the financial regulator and has occupied
management positions in the securities market self-
regulator. co.linkedin.com/pub/felipe-gaviria/25/aab/bb9
Sergio Orjuela
Senior Analyst of Mathematical models Studied economics and he is specializing in
statistics. co.linkedin.com/pub/sergio-orjuela-ruiz/53/356/287
Juan Martitegui
Growth Hacker Expert in Internet Marketing, Social Media, Digital
Media y Productivity. ar.linkedin.com/in/juanmartitegui
Hugo Marín
CDO / UX (Product director) Bachelor in Philosophy and arts, Hugo has 8 years
of experience in design and interface usabilty. co.linkedin.com/in/marinhugo/
Javier Moreno
Director of Mathematical models Mathematician, worked for the integrated financial
regulator and for the public retirement pension
fund. es.linkedin.com/pub/javier-moreno/5a/890/185
Objetivo Fintech. %
• Mirar que es lo que los clientes quieren que su banco le ofrezca. No lo que les
imponemos que usen.
• El manejo de la data mas critico que el fondeo.
• Mirar como hacer para que lo usen bien y recurrentemente.
• Eliminar ineficiencias que los usuarios deben pagar.
• Buscar ventajas competitivas, de los bancos dándole competitividad a los
clientes.
• Ser un “Middleman” responsable. El producto adecuado, en el momento
correcto.
• Tener fácil y rápida adaptabilidad a las nuevas tendencias y tecnologías.
Retos. %
• No todos los retos son regulatorios y tampoco son el escudo, ( miren google-
uber)
• Entender que es más fácil innovar por fuera del Banco.
• Es importante para los bancos ver que esta pasando con los Startups.
• Entender que somos Startups
• La mayor competencia de los bancos no son los otros bancos, son lo
disruptivos del Fintech.
• Las alianzas se construyen no se compran.
THE ROI OF FINTECH IS THAT YOU'RE
STILL IN BUSINESS IN 5/10 YEARS
52 SWIFT Latin American Regional Conference (LARC) - 2014 28-28 May 2014
Andres
Fontao
Next Bank
Global
Ricardo
Hissao Leo Vernazza
CIP-Camara
Interbancaria de
Pagamentos
Brazil
Paganza
Uruguay
Payment Industry Innovation: Future Perspectives
Innovation Special Interest Session
#LARC2014
@swiftcommunity
Daniel Rojas
Rocket
Colombia