1. January 2013 – MIT Forum
Social Finance and the end of
traditional banking
Yoni Assia
Co-Founder & CEO
eToro©2010 Presentation materials are confidential and should not be copied, distributed or passed on, directly or indirectly, to any other person. 30-Jan-13 1

2. Finance is BIG and ready for disruption
“When I was young I thought that money was
the most important thing in life; now that I am
old I know that it is.”
Oscar Wilde
Financial services
Aerospace Insurance, $670.57 Oil and Gas, $3,962.45
Agriculture IT, $381.33
Automotive Health, $834.55 Retailing, $1,844.08
Conglomerate Conglomerate,
$1,156.03
Health Financial
Automotive,
IT $1,443.53 services,
$2,760.05
Insurance
Oil and Gas
Retailing Telecommunications,
Aerospace, $757.27
Agriculture, $315.38
Telecommunications $129.97
In billions of revenues
2010 figures
Global Revenues by Sector ($b) CNNMoney
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3. Banks are currently focused on reducing costs and risk
After the crisis, banks are focused on:
 Centralization aligned with de-risking
 Reducing counterparty risk & operational risk
 Increasing levels of change & regulations
 Increasing corporate client expectations
 Desire to address legacy expenses
Source: Deutsche Bank
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4. Banks focus on reductions makes them overlook the fact…
Banking is boring
“ “
Institutions will try to preserve
the problem to which they are the
solution.
Clay Shirky
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5. Banks have to adjust to the new age of networks
Information Economy
2012
2006
Industrial Economy The age of social networks
1971
The age of information
50 Years
1908
The age of mass production
1875
The age of electricity
1829
The age of steam and railways
1771:
The industrial revolution
200 Years
1750 1850 1950
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6. The new age of networks is driven by various trends
 Consumerization (Added Value on consumers)
 Social Gamification
 Globalization – One brand for ALL
 “Appli”-fication - Everything as a service
 Open networks of (Big) data – No secrets
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7. So how do information and networks change our world?
Industrial paradigm Information paradigm
 Vertically integrated  Distributed
 Scarcity  Abundance
 Financial capital  Talent
 Financial Products  Web products UX
 Scale  Resilience
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8. Networks growth is staggering
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9. Users connectivity is going to double itself
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10. Where are we on the Solical Era Cycle
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11. Social financial services are emerging and growing
Sean Park, Anthemis Group
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12. Payments Services
Sean Park, Anthemis Group
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13. Payments Services – One new global currency ?
Sean Park, Anthemis Group
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14. Personal Finance – Manage your expenses
Sean Park, Anthemis Group
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15. Risk Management
Sean Park, Anthemis Group
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16. Wealth Management
Sean Park, Anthemis Group
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17. Business Banking
Sean Park, Anthemis Group
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18. Investments
Sean Park, Anthemis Group
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19. eToro is the #1 social
investment network that
allows users to invest in a
fully transparent & engaging
community by sharing and
copying from one another
eToro©2010 Presentation materials are confidential and should not be copied, distributed or passed on, directly or indirectly, to any other person. 30-Jan-13 19

20. Copying and sharing using eToro’s OpenBook
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21. eToro has changed investments as we knew them
Investing through a bank / broker Social investments with eToro
 “Boring”  Social and exciting
 Knowledge required  Using the wisdom of the crowd
 Private and local  Open global community with 2.5
million users form 200 countries
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22. “ You never change things by fighting the
existing reality. To change something build
a new model that makes the existing
“
model obsolete.
Buckminster Fuller
Thank You
Yoni Assia yoni@eToro.com
CEO Tel: +972 54 4277789
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