Fintech: unbundling the bank model? more info & insights on http://blog.idate.fr

1. FinTech
Unbundling the bank model?
Co-organized by
IDATE DigiWorld - Atelier BNP Paribas
15-17 November 2016

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FinTech: a booming sector

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FinTech: Challenges vs. New Opportunities
Source: BNP-Paribas

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Main Sub-segments of the FinTech
Source: BNP-Paribas

5. Blockchain

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Blockchain Key trends
Blockchain is a technological disruption in secured infrastructure.
• Secure and immutable data storage
• With no need for a trusted third party
Being used more and more for FinTech applications: payment solutions,
investment, loans, speculation, back-office tools…
Potential outside the realm of finance, as a tool for managing
property rights and automating contracts, but legal uncertainties remain.
Veteran trusted third parties are adapting to the shift, opening up
possibilities for new products and services: managing software portfolios,
contractual expertise, cheaper services.
Current technical limitations with respect to large-scale deployments
are limiting the ability to offer decentralized consumer applications.

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The blockchain ecosystem
Blockchain
initiators
P2P node
developer
P2P node
operator
“miners”
Apps that use
the
blockchain
User
Associated
services
Blockchain infrastructures Applications and services
Source: IDATE DigiWorld, Blockchain, October 2016

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Blockchain and FinTech
Thanks to massive financial backing, the blockchain's financial applications
still account for the majority:
• A banking system rebuilt around cryptocurrencies
• Using the blockchain to streamline traditional services’ costs
Far from being a threat, the blockchain opens up major opportunities for the financial industry.
Cryptocurrency economy Optimise traditional processes
• Exchange platform
• Wallet app
• Price speculation
• Loans & investments
• Blockchain audit
• Private blockchain & back-office
• International interbank payments
• Capital market
• Smart contracts for payments when due, or on
delivery
• Insurance
• Shareholder agreements

9. Mobile payment

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The payment ecosystem
A very segmented mobile and online payment market
Source: IDATE DigiWorld, Mobile payment, April 2016

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Mobile payment market:
Mobile commerce (m-commerce) payment market
Online payment systems are still dominated by debit and credit cards
• Debit and credit cards account for 78% of online checkouts according to TSYS.
• Alternative online payment was led by PayPal:
- 12% of online checkouts according to TSYS
- mobile payment volume reached 66 billion USD.
• Similar services from other players are less
used by mobile websites and applications.
• Amazon Payment was catching up in 2015:
- over 23 million users
- Transaction volume rose 150% YOY
- 200% rise in number of merchants using Amazon Payment.
Evolution of worldwide e-commerce and m-commerce market
(Billion EUR)
Source: IDATE DigiWorld, Mobile payment, April 2016
1220
1418
1606
1792
1969
2136
263 369 497
654
792
944
2014 2015 2016 2017 2018 2019
E-commerce revenues in bn €
of which M-commerce revenues in bn €

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Mobile payment market:
Mobile commerce (m-commerce) payment market
Growth in m-commerce transactions is steady and strong
• M-commerce revenue growing faster than in overall e-commerce (CAGR: 26.5% vs 10.8%).
• The share of m-commerce in e-commerce is rising, from 26% in 2015 to 44.2% in 2019.
Trends
• 40% of online payments occurred across
multiple devices in Q4 2015, both on
mobile and PC.
• Growing popularity of in-app shopping
for physical goods and services, rather
than only for digital goods.
• Greatest barriers are on security and
privacy issues.
M-commerce revenues, in bn€ with annual growth rate, and its
share in E-commerce revenues, in %
Source: IDATE DigiWorld, Mobile payment, April 2016
+49% +40% +35%
+32%
+21%
+19%
0%
10%
20%
30%
40%
50%
0
500
1000
1500
2000
2500
2014 2015 2016 2017 2018 2019
E-commerce revenues in bn €
of which M-commerce revenues in bn €
M-commerce share in E-commerce, in %

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Mobile payment market: In-store mobile payment market
In-store mobile payment is in its early stage
• Installation of NFC-enabled point-of-sale (POS) terminals will increased considerably:
- From 21.4 million in 2014 to 74.9 million worldwide in 2019 at a CAGR of 28.4%, according to Berg Insight.
• This market will grow fast at a CAGR of 74%, but its share of trillions of total POS
transactions is tiny.
Remaining barriers
• End-user adoption: low awareness, concerns
around ease of use, and security and trust issues,
involving tokenisation and HCE.
• Business model: disappointing added value
(such as a data-based approach) to merchants if
commission fees are not very competitive.
• Integration of mobile payments
into legacy POS systems and omnichannel strategies.
Global in-store mobile payment volume
(Billion EUR)
Source: IDATE DigiWorld, Mobile payment, April 2016
4.5
11.0
24.4
44.0
70.6
100.4
2014 2015 2016 2017 2018 2019

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Agenda
• Latest FinTech trends by Atelier BNP-Paribas
• Round-Table 1
Disruptions in the Financial ecosystems
• Keynote
Alexis Collomb: Blockchain: what impact on the financial
system?
• Round-Table 2
Digital transformation in the banking industry
• Closing keynote
Jean-Hervé Lorenzi, Président du Pôle Competitivité
Finance Innovation