offers and whitespaces€¦ · © 2020 ipsos 1 fintech and innovation for banking, finance and...

© 2020 Ipsos 1

FINTECH AND INNOVATION FOR BANKING, FINANCE AND INSURANCE

© Ipsos | Webinar on Fintech and Innovation for Banking, Finance and Insurance

Speakers

2 ‒

IPSOS WEBINAR SERIES: FINTECH & INNOVATION FOR BFI

Adrian Lo

Senior Consulting Manager,

Ipsos Advisory

Technology and Fintech

➢ VC Investment Trends

➢ Disruptive Fintech Examples

Mark Kidd

Executive Director,

Head of Innovation and

Financial Services Sector

➢ The Rules for Successful Innovation

© 2020 Ipsos 3

FINTECH VC INVESTMENT TRENDS


ArtificialIntelligence

4 ‒

FINTECH ENCOMPASSES MANY ASPECTS OF THE ECOSYSTEM INCLUDING VARIOUS BFI SERVICE SECTORS AND A NUMBER OF KEY ENABLING TECHNOLOGIES

“THE FINTECH LANDSCAPE”

Banking Payment & Transaction

Risk Management

and Compliance

Insurance

Financing and Funding

Investment and Wealth

Management

Fintech

Artificial Intelligence

Blockchain

Cloud Computing

Big Data and Data

Analytics

Internet of Things

Banking

Payment and

Transaction

Investment and

Wealth Mgmt.

Financing and

Funding

Insurance

Risk

Management and

Compliance


Note: Not all sub-segmentations of applications and services have been included. These are the most prevalent segments.5 ‒

FINTECH IS MADE UP OF A WIDE SPECTRUM OF FINANCIAL APPLICATION AND SERVICES

Fintech Sub-segments for the Banking Financial Insurance Industry

Banking

Dig

ital

/ V

irtu

al b

anki

ng

Op

en

AP

I / B

anki

ng

Ban

k-as

-a-S

erv

ice

Payment and Transaction

Mo

bile

/ O

nlin

e P

aym

en

t

Dig

ital

Wal

let

Cro

ss-b

ord

er /

Fo

rex

Tran

sact

ion

Re

po

rtin

g

Bill

ing

and

Invo

icin

g

Investment and Wealth

Management

Fin

anci

al P

lan

nin

g an

d I

nve

stm

en

t To

ols

Dig

ital

Bro

kera

ge

Dat

a A

ggre

gato

rs

Ro

bo

-Ad

viso

rs

Po

rtfo

lio M

gmt.

Risks Mgmt. and Compliance

Ente

rpri

se R

isk

Mgm

t.

AM

L/K

YC

Tax

Mgm

t.

Trad

e M

on

ito

rin

g

Po

rtfo

lio R

isk

Mgm

t.

Op

era

tio

n R

isk

Mgm

t.

Frau

d D

ete

ctio

n

Cyb

erse

curi

ty a

nd

Dat

a P

riva

cy

Financing and Funding

Cre

dit

Dat

a

Invo

ice

/ T

rad

e Fi

nan

cin

g

Bu

sin

ess

Len

din

g

Co

nsu

me

r Le

nd

ing

Cro

wd

fun

din

g

P2

P L

en

din

g

Re

sid

enti

al /

Mo

rtga

ge L

en

din

g

Insurance

Infr

astr

uct

ure

/ B

acke

nd

Mar

ketp

lace

GI I

nsu

ran

ce

Life

/Hea

lth

Insu

ran

ce

Inte

rnet

of

Thin

gs


Global FinTech VC Investment Trends (USD B)

Source: CBInsights, Ipsos Analysis

6 ‒

INCREASED INNOVATION AND DISRUPTION ENABLED BY CONSISTENT GROWTH IN GLOBAL FINTECH INVESTMENTS

4 8

17 20 19

41

33

608 838

1,200 1,400

1,600

1,900

900

-

500

1,000

1,500

2,000

2,500

-

5

10

15

20

25

30

35

40

45

2013 2014 2015 2016 2017 2018 2019E

Investments (US$ B) No. of Deals

Annual VC Investments

7x

2013-2019

2x

2015-2019

Over 60 Fintech

Unicorns to date

24 new Fintech

Unicorns in 2019


Geographic Share of FinTech VC Investments

7 ‒

VC INVESTMENTS FOCUSED ON INNOVATION / DISRUPTION IN THE US AND ASIAN MARKETS

~50%~50%

~50%

~30%

~60%

< 15%

2015 2016 2017 2018 2019E

North America Europe Asia ROW

~10B

> 50B

~2B

~20B

~5B

> 50B

~17B

~130B

2015 2016 2017 2018 2019E

Cumulative FinTech VC Investments

across the regions (USD B)


Asia VC Investment (USD B)

Source: CBInsights, Ipsos Analysis

8 ‒

S.E.A. IS STARTING TO CAPTURE A LARGER SHARE FINTECH DISRUPTORS’ INTERESTS

5 7 69

4 -

5.00

10.00

15.00

20.00

25.00

2015 2016 2017 2018 2019E

Asia Ant Financial

3%1%

4%3%

24%

-

0.05

0.10

0.15

0.20

0.25

0.30

2015 2016 2017 2018 2019E

S.E.A’s Share of the VC Investments in Asia


Focus of Fintechs in Asia

NOTE: Companies who provide services targeting one or more areas of financial services. i.e. one company could be involved in more than one verticals

9 ‒

ASIAN FINTECH'S WILL CONTINUE TO INNOVATE AND DISRUPT ACROSS MANY AREAS OF THE BFI INDUSTRY

500

139

259

209

413

Banking Insurance Data Payment Lending

8

34

17

10

Banking Insurance Data Payment Lending

Focus of Fintechs Unicorns in Asia

© 2020 Ipsos 10

FINTECH TRENDS

Insurance Market Place

© Ipsos | Webinar on Fintech and Innovation for Banking, Finance and Insurance11 ‒

INSURERS DIGITAL COMPARISON TOOLSONLINE INSURANCE

MARKETPLACE

ONLINE INSURANCE MARKETPLACE PLATFORMS COULD DISRUPT THE INSURANCE INDUSTRY BY PROVIDING CHOICES AND PERSONALISED SERVICES

➢ Traditional insurers : Omni-

channels

➢ Virtual insurers : fully

digital service experience

➢ Only purchase insurance

products for the same

providers

➢ Transparency

➢ Easy

➢ Comparison

➢ General insurance →

health, critical, and life

insurances

➢ Driven by “Digital

Economy”

➢ Research, compare,

purchase, manage and

claim

➢ Insurance products from

different insurers

➢ ‘Service’ layer is important


One

Insurance

wefox’s digital marketplace serves customers, brokers and

insurance companies

12 ‒

weFox Group

INTEGRATION OF A VIRTUAL INSURER AND A DIGITAL MARKETPLACE

Sources: Crunchbase, weFox, Ipsos research and analysis

CU

ST

OM

ER

S

BR

OK

ER

INSURERS

Investments

$ 268M

Valuation

~$1.65B

Revenue

$100MCustomers

500K

Digital

Marketplace


WEFOX BUSINESS MODEL

Independent Brokers

Sales / Marketing

Individuals

AI/IoT platform

Fast and easy coverage

weFox Markeplace

Insurers: A portal drive campaigns

Cloud Hosting Salaries Office

Customer Service

Tech. staffs

Paperless and 100% digitalMunich RE – Reinsurance Cover

Automated / fast insurance coverage

Policy premiums

On-demand insurance

ONE INSURANCE

Insurance Companie

Brokerages

Brokers / Insurance Engagement

All-in-One Digital Marketplace

Receive 10 to 25% of every policies consumer pays from the insurance companies once consumer sign up on their app

One Insurance

Independent Brokers

Insurance Companies (i.e. AXA, Swiss Life)

Personalised consultation with brokers through the app

Integrated , end-to-end experience for insurance products from different

insurers

Brokers: Streamline client management & engagement

Customers: A single app connecting different policies

from different insurers

Mobile App / Web

weFoxMarketplace

Reward Claims

Insurance Cloud Platform

Reinsurance cost

© 2020 Ipsos 14

FINTECH TRENDS

Fintech-as-a-Service


Rapyd

PAYMENT-AS-A-SERVICE COULD CHANGE PAYMENT BEHAVIOUR AND CHANGE THE PAYMENT LANDSCAPE

Source: Rapyd

A single API and SDK supporting any businesses, any payment forms, anywhere around the world

Collect Wallet Issuing Disburse

eCommerce Marketplaces Banks

Investments

$ 170M

Valuation

~$1B

Revenue

$10-50M


Slice

ON-DEMAND INSURANCE ENABLED BY THE CLOUD COULD DISRUPT TRADITIONAL INSURANCE MODEL OVERTIME

Sources: Slice, Crunchbase

Cloud-based on-demand insurance experience

Investments

$ 35M

Revenue

$10-50M


FINTECH-AS-A-SERVICE ENABLES RAPID LAUNCH OF MODULAR SERVICES ACROSS DIFFERENT VERTICALS

460 Banks

1,800 Partners

# of users

5M+

Revenue

$210M

Gamma O

one-stop

“App Store”

AI

customer

servicing

Blockchain

Networks

Digital

Banks

Insurance

Technology-as-a-Service platform for the financial institutions with over 50 cloud-native services

© 2020 Ipsos 18

FINTECH TRENDS

Beyond the Core Services


CUSTOMERS INCREASINGLY DESIRE HOLISTIC APPROACH TO SERVICES, AND SEAMLESS INTERACTIONS BEYOND JUST THE CORE FINANCIAL SERVICES

Automation

OptimisationBeyond

the Core

Frictionless

Always

Available

Single

Source of

Truth

Recommendation

Omni-channel

Interactions

Contextual

Understanding


PARADIGM SHIFT IS HAPPENING ENABLED BY OPEN-API AND CLOUD-ENABLED ECOSYSTEM

IT HR

Ac

co

un

tin

g

⚫⚫⚫

Service Providers

Ecosystem

API Enabled Ecosystem with / through the Banks

SMEs

Pa

rad

igm

Sh

ift Bank Services

Cloud

Cash

Mgmt.Trade

Finance

Payment

Loan

Bank

Ecosystem

Pa

ym

en

t

Lo

an

Ca

sh

Mg

mt.

⚫⚫⚫

Beyond Banking Ecosystem

Services

Cloud

IT

HR

Suppliers

AccountingCRM

Taxes

Block-

chain

AI / ML

Analytics

BigData

Technology

Services

Cloud

SMEs


Revolut is a fully-app based digital banking alternative

based in the UK

21 ‒

API’S ENABLE NEO-BANKS TO RAPIDLY PARTNER WITH OTHER FINTECHS IN LAUNCHING NEW SERVICES

Source: Crunchbase, Revolut, Techcrunch,

Investments

$ 800M

Valuation

~$5B

Revenue

$50-100M

Open Banking Partnership

single-

source of

truths

Partnership

Automation

© 2020 Ipsos 23

KEY TAKE-AWAYS


KEY TAKE-AWAYS

• Significant Fintech investments globally and across Asia

• Disruptions are imminent and will be across all financial service areas

• Innovations and disruptions will focus not only on the core services, and beyond the core services

• Important to think beyond the core – and think Ecosystem

• Understand competitors, and your customers


FINTECH RELATED CASE STUDIES

Case Study 1 – Becoming a relevant player in Indonesia’s fintech payment landscape

Case Study 2 – E-commerce Merchant Financing Partnership in APAC

Case Study 3 – Fintech applications in SME Banking

Case Study 4 – Beyond Banking Dashboard Development for SME Banking

Case Study 5 – Digital Banking Market Study in Indonesia

Please reach out to us if you are interested in more details from these case studies

© 2020 Ipsos 26

THE RULES FOR SUCCESSFUL INNOVATION

© Ipsos | Webinar on Fintech and Innovation for Banking, Finance and Insurance27

WHAT IS DIGITAL INNOVATION?

Durables Services

Refill plans, subscriptions

etc.


WHAT DO WE MEAN BY DIGITAL INNOVATION?

Blurring lines between products, services and channel

Interconnected products, services and integrated experiences

Quantifiable self

Wearables for activity,

mood, sleep and more

Connected Health

Self monitoring and

remote doctors

Smart Home

Appliances,

environment, security

Lifestyle

Entertainment,

productivity,

communication, sports,

hospitality, dining, travelFinancial Services

New business models

e.g., pay per mile

insurance with device

Apps and Websites are ultimately channels for delivery of a service


WHY SPEND ON RESEARCHING DIGITAL SERVICES?

Availability is soaring – it’s a much tougher market

1,800,000AppsQ4 2019

2,900,000AppsQ4 2019

It used to be easy…

Have an idea?

Develop it (inexpensive)

Do some A/B tests

Launch

Now the category landscape

has changed


OUR EXPERTISEFor 35+ years, we have helped manufacturers outside of packaged goods. We have tested over 39,000 products.

We know how innovation works best in services, technologyand durable products.

Digital Innovation is the confluence of these categories and

we are uniquely positioned to play in this space.

Digital Innovation

Financial

ServicesTechServices


SINGLE-MINDED FOCUSWHAT’S THE GOAL?

DIRECT REVENUE

• One time fee

• FreemiumWhich features should be free and which

ones paid? How much?

• SubscriptionMonthly? Annual?

• Usage based pricingHow many plans? What levels of usage?

INDIRECT REVENUE

• Share of Wallet/Deposits

• Share of transactions

• Ad based

• Retention

• Acquisition

• Cross Sell

• Drive product usage

• Trojan Horse

OTHER

• Data Monetization

• Cost savings

• Brand Equity

• Customer satisfaction


Cognitive Salience

Measure Consumer Interest

Likelihood to Sign up


CONNECTION TO OUR DATABASE OF OVER 7000 FINANCIAL SERVICES TESTS

Key Measures

Seek Information

Intent

Liking

Price/Value

Uniqueness

Believability

Need Fulfillment

Placement in Vantis Database

Top 20%

Above Average

Average Below Average

Bottom 20%

Database Comparisons Market Success Score Archetypes


Key Measures

Seek Information

Purchase Intent

Liking

Price/Value

Uniqueness

Believability

Need Fulfillment

Worst Best

LEMONADE

03

It’s your money

02

Pays claims

super fast

01

Simple and

transparentWant Lemonade’s Key Measure pattern

indicates a Want archetype. This is

often the observed pattern for trend

setters.

135 Market Success Score: Lemonade

indicates a strong likelihood of success

Top Phrases


Key Measures

Seek Information

Purchase Intent

Liking

Price/Value

Uniqueness

Believability

Need Fulfillment

Worst Best

HIPPO

03

25% less expensive

02

Discounts on your

premiums

01

Better, cheaper home

insurance Me-TooHippo's Key Measure pattern indicates a

Me-Too archetype, which indicates it will

have difficulty standing out, and that its

unique benefits need to be more clearly

conveyed.

148 Market Success Score: Hippo

indicates a strong likelihood of success

Top Phrases


METRICS MAPPED TO THE DECISION JOURNEY REVEAL TRUE POTENTIAL

Download Timing Account CreationMoney

Commitment

Share Credit

Card Info

Setting Permissions Priority on Device

Higher Friction with each

decision requires higher

commitment

Measures customised for each

product


3939


EmotionalResonance

Assess Stickiness

Likelihood to Stay


MEASURING EMOTIONAL RESONANCE ISN’T SIMPLE..

Joy of DiscoveryEase & Customization

Sharing, new,exciting, curation

EnjoymentVariety

Sad Limitations

AnnoyingLimitations

Grumpy Limitations

AcceptanceHabitual, ease, simplicity, norm

Togetherness Social

Anticipation

ApprehensionRelevance

Excitement

Boredom

ControlEase

Liberation Convenience, speed

FearSecurity

Interest

Surprise

Trust

Intrigue

Control

Recognition

Security

Power Choice

DisgustEthics

Delight Incredible

Love Skepticism

Consumers find it hard to

classify their own emotions

There are a vast number of

possible emotions that drive

behaviour

1

2


EMOTIONAL MEASUREMENT REQUIRES A CONVERSATIONAL APPROACH LEVERAGING TOOLS THAT ARE INTUITIVE FOR CONSUMERS

Video Feedback

Authentic Reactions

Visual Cues

Think back to the last/first

time you used X, where

were you, what were you

doing?

What makes you decide to

use X?

How does it feel?

Please select five images

which illustrate how you

feel about X. Why did you

select those images


THE DIFFERENCE IN DEPTH OF RESPONSE

I love how easy it is to book a table, especially if you are a big group. I don’t

have to keep calling to find the right person at the right time and figure out

when the place is open. Once it’s booked, there is no chance of

miscommunication, it’s in the system, it’s done!

It’s easy and convenient

Video Response

Text Open End


SYSTEMATIC TAGGING

Identify the

emotions

Measure the time

spent delving into

each emotional

state


• ~100 mins of video footage

• Over 120 tags identifying underlying emotions

PAYMENTS IS GENERALLY NOT CONSIDERED TO BE A CATEGORY WITH EMOTIONS, WE SET OUT TO PROVE OTHERWISE


MAPPING EMOTIONAL RESPONSE

• Amazon Payments – control and a sense of

security• Stemming from their current use of Amazon and familiarity

• PayPal - control (less than Amazon Payments) and

a lack of Vitality

• Venmo – vitality and conviviality• Social network, getting people excited about P2P payments.

PayPal is the old wise guy in the room – no

news. It’s built for the web, not really for mobile

It’s young! It’s sexy!


Emotional Resonance

MEASURING EMOTIONAL RESONANCE


A Combination Of

Cognitive Salience And Emotional Resonance

Cognitive Salience

EmotionalResonance

The strongest digital services connect with users on both levels

Likelihood to Stay

Likelihood to Sign up


BRINGING THE FRAMEWORK TO LIFE - MANY PATHS TO SUCCESS

Emotional Resonance

Co

gn

itiv

e S

ali

en

ce

STICKY

FADS

UTILITARIAN

LOST IN COMPETITION


5252

ENTERTAINMENT

STICKY

FADS

UTILITARIAN

LOST IN COMPETITION

Co

gn

itiv

e S

alie

nce

Emotional Resonance

Seems like any other music service.

Can I share a plan with my family?

Artists curate music –this will be good;

I don’t need another social media platform;

Where’s the catch? It says free but it’s Apple, it can’t be

It helps me discover new music;

like seeing the story behind the lyrics;

I like sharing on the family plan.

I can see what my friends are listening to;

Free version is limiting


UX E-CUBE ANALYTICAL FRAMEWORK

Observe navigation in real time

The need for a dual lens….. Usability / Communication

Think outside the box


5454


Text Messaging

Hold to talk voice messaging

Broadcast (one to many) messaging

Video calls

Video games

Location sharing

Facebook integration

Photograph filters

Auto-translation

Official corporate accounts

WeChat moments

VOIP

Pay bills

Order goods

Transfer money

In store payments

Digital wallet – credit and debit cards

Red envelopes

Enterprise WeChat

Heatmap crowd density

WeChat Index

Search

Friend radar

Augmented reality

Branded collaborations

Taxi hailing

Food delivery

Doctor’s appointments

offers and whitespaces€¦ · © 2020 ipsos 1 fintech and innovation for banking, finance and...

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