Slides from my talk at FinSum, Tokyo (Sept '16)

1. 1
Shantanu Bhagwat
@Sh4ntanu
21st September ‘16
FinTech Summit, Tokyo
Social Innovation through Fintech
aka
Fintech in Development
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2. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
 The world of “micro” and p2p
 Blockchain and the sharing economy
 The dawn of “cashless”
 Q & A
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3. Social Innovation through Fintech
 The Opportunity with the "unbanked"
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Percentage of Total Adult Popular Not Using Formal/Semi-Formal Financial Services

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Things are getting better…
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…but not enough
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8. Source: Global Findex 2014, World Bank, Bill & Melinda Gates Foundation 8

9. Guess which regions are shown here…
9Source: Global Findex 2014, World Bank, Bill & Melinda Gates Foundation

10. 10Source: Global Findex 2014, World Bank, Bill & Melinda Gates Foundation

11. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
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17. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
 The world of “micro” and p2p
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18. Water ATMs: 24x7 pay-per-use
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• 25m people lack access to drinking water
• 1600 deaths daily due to acute diarrhoea
• 700 hrs wasted annually on collecting water

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23. p2p lending minus the intermediary…
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24. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
 The world of “micro” and p2p
 Blockchain and the sharing economy
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25. Building Trust in the Sharing Economy..
“…we believe blockchain could help
accelerate the adoption of P2P lodging and
generate $3 - $9 billion in incremental
revenue opportunity through 2020”
25Source:” Profiles in Innovation: Blockchain” report, May 2016, Goldman Sachs

26. Building Trust in the Sharing Economy..
 The blockchain, an emerging technology, replaces the
need for third-party institutions to provide trust for
financial, contract and voting activities.
o …Assets can be shared, creating not just new efficiencies but
also whole new business models and opportunities for social
self-organization.
 Expected Tipping Point: 2027
26Source: World Economic Forum

27. From Paper-based, manual processes
 Online, real-time verification
27Source: Fintech 2.0, Santander report

28. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
 The world of “micro” and p2p
 Blockchain and the sharing economy
 The dawn of “cashless”
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The cashless economy
Research by Westpac Bank predicts Australia
will be a fully cashless society by 2022 – just
six years away. Already half of all commercial
payments are now made electronically.

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But still some way to go…

31. But still some way to go…
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32.  Faster transactions, lower cost and less room for error
 Increased transparency
 Easier access to financial services
 Reduced leakages in subsidies and wages
 Better monitoring of financial transactions (reduced risk of illegal money
flows)
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 Still lags cash on ease of use, convenience, affordability, access (proximity)
and security (incl. perceived security)
 Loss of privacy
 Increase risk of fraud and cybercrime
 Risk of increasing impulse consumption
The cashless economy

33. Is cashless really good for the poor?
 Poor people are the ones
who most use cash…
 Are they also the ones
that most ‘need’ cash?
 Can they be better served
by digital means?
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34. Closing thoughts
 Massive opportunity for fintech to be a powerful force in
development and affect fundamental transformation
 …but can be a double-edged sword
o may exacerbate lack of access to products and offerings, creating
further inequality
o increases risk of financial fraud, particularly for the most
vulnerable
 Some evidence of “leapfrogging” in the developing world
 “Financial inclusion” remains a common concern across
regions
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35. Social Innovation through Fintech
 The Opportunity with the "unbanked"
 Nudge, behavioral change and non-financial risk profiles
 The world of “micro” and p2p
 Blockchain and the sharing economy
 The dawn of “cashless”
 Q & A
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36. Contact me @
Shantanu Bhagwat, Venture Partner
LGT IV - Impact Ventures UK
Shantanu.Bhagwat@lgtiv.com
@Sh4ntanu
ImpactVenturesUK.com
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37. Disclaimer
 The thoughts expressed in this presentation are personal and do not
necessarily represent the views of firms or organisation I am associated with
 Images of products/services offered by different companies have been taken
from website screenshots solely for the purpose of illustration and information
 Mention of such companies (or their products, services) does not imply
endorsement or promotion of their offerings
 The main purpose of this presentation is to increase awareness about the
opportunity for financial technology to positively impact global developmental
challenges
 Please do not make copies or otherwise distribute this content without express
permission from me
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