Presentation about the status and future of finance market and distributed finance services at TEN Capital event in Austin, TX. We can learn from the history and other industries, and see how the finance industry can handle its disruption.

1. Grow VC Group ++
www.growvc.com ++
@growvc ++
Enabling Digital Finance ++
Copyrights © Grow VC Group 2018
The Status and Future of Tokenization, Blockchain and Finance Disruption
Austin, Texas, October 9, 2018
Jouko Ahvenainen

2. FinTech, Data & Finance
Services
Digital Infra & Consulting Exits
Grow VC Group
Worldwide pioneer and leading holding company
in enabling technology and data in FinTech
Hong Kong - London - Zurich - New York - San Francisco
Crowdfunding

3. We work with industry leaders

4. Observation #1
Technology enables disruption,
but
new business models implement it

5. Incumbents Newcomers
Leading telecom and media companies
have survived Internet disruption,
but
most new business and profits have gone
to newcomers
Observation #2

6. Bank’s operations, legacy IT systems and
business models are most probably
obsolete, but
traditional finance industry money, assets
and instruments still have value
Observation #3

7. 1849 gold rush made only few gold miners rich,
but
it was mainly shovel sellers and service
providers that made a fortune
Observation #4

8. It is not so difficult to predict the future,
but it is almost impossible to predict the timing

9. ▪ We are still in very early phase with tokenization and
distributed finance models, but we can predict:
1. Distributed models and tokenization come to all asset
classes and instruments, including truly digital
instruments, smart contracts and blockchain based
settlement
2. Traditional institutions have hard time to adapt to the
new reality, and there will be new stars in the market
3. Tokenization comes to main stream with big traditional
asset classes, not e.g. with startup equity ICOs
4. Finance becomes a plug-and-play component to many
other services
5. We’ll see a revolution in finance IT solutions, and new
technology and platforms cut IT costs to 1/100th from
the traditional banking IT
5 Predictions

10. ▪ Real time onboarding, data-driven decisioning, pricing and
unprecedented data points; e.g. totally new loan and debt
market
▪ If central ownership of data is no longer a requirement – is the
fundamental fabric of the Internet changing
▪ Open APIs (e.g. PSD2) and privacy (e.g. GDPR) are important for
data, but it is very unlikely that banks could create platform
business
Data and AI come to the core of all processes

11. 1. Many independent cryptocurrencies, ICOs and technical solutions
■ Companies and projects issue their own tokens often based on unclear underlining assets and services
■ Even if technically possible to exchange to other digital assets, exchange rates and values hard to evaluate
2. Not linked to fundamental regulatory requirements, e.g. KYC and AML
■ It is hard to believe regulators would allow anonymous users and transactions
3. So far no models to link to the bigger financial ecosystem to underwrite, syndicate and trade
■ Each service targets to have its own assets and investors, when different cooperation models in the traditional finance
sector are the key to success
4. No common models to get and use data to value, monitor and rate assets
■ A slide show or white paper is not enough to analyze any asset and especially follow, how its value develops
5. No independent 3rd parties to analyze, rate and value assets
■ Common models, practices and independent evaluations are an important part of the system to value assets and keep
the market stable; now ICOs or crypto funds can even manipulate the market
The market is still in early phase

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Current ownership 60%
Rent to investors $700
Maintenance $150
Increase or decrease your ownership
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10% decrease compensation: $49,000
Rent increase monthly: $160
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1. Take a photo
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4. Information Check
5. Decision in 30 seconds
Plug-and-play Distributed Finance (Examples)
E-Commerce Real Estate PoS Lending

13. Case: Distributed Models change Finance and Internet
private data concierge

14. Prifina – Premium service to manage your own finance data

15. Case: Anyone can make finance services without expensive IT
•
•
•

16. Difitek: Build easily & pay as you use
Native 3rd Party Blockchain
Intelligence Layer
Functional layer
Solution Layer
Fintech Application
Onboarding
Simple Onboarding
Smart KYC
Organization
Onboarding
Smart KYB
Dual KYC Check
Origination
Loan Origination
Share Issue
Secondary Market
Sale
Real Estate Offering
Share Split
Transactions
Wallet Transfer
Smart Payment
Purchase &
Settlement
ERC-20 Transaction
Card Issuance
Risk
Credit Scoring
Bond Pricing
Asset Valuation
Historical Volatility
Analytics
Onboarding Drop-
off
Funding Probability
Fraud Detection
Volume Projections
Out of the box solutions for the toughest business requirements

17. Read more at my columns and blogs
Email: jouko@growvc.com
+44 7889 833 165 (UK),
+1 646 363 6664 (US)
Twitter: @jahven,
LinkedIn: /joukoahvenainen
Jouko Ahvenainen
Founder & Chairman,
Grow VC Group

18. ENABLING
DIGITAL
FINANCE
www.growvc.com
THANK YOU!