www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
The Evolution of Irish Fintech
Presentation to a European Bank
1
Peter Oakes
Board Director & Advisory Committee
Fintech and Regtech
Fintech Ireland
Thursday 26th April 2018
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Thanks to people who have contributed content and directed me to source material
I respect the copyright of third parties when drafting material. If you use material created by Fintech Ireland, please also note our & others’ copyright
The Map, Pie Chart and Survey are located on www.fintechireland.com
This presentation is located at https://fintechireland.com/events.html
Housekeeping
Board Director
Advisory Boards
Fintech
Regtech
Platforms
LawBanking /Finserv
Training
Strategic
Intelligence
Capital Raising
Regulator Advisor
Peter Oakes, Company Board and Advisory Board Member - FinServ,
FinTech, RegTech and Service Providers
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
1) Fintech Ireland www.fintechireland.com
2) Regtech Ireland www.regtechireland.com
3) Fintech UK www.fintechuk.com
4) Regtech UK www.regtechUK.com
5) UKRegtech www.UKregtech.com
Increasing Regulatory Costs (1/2)Free Platforms
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Fintech Ireland Event Collaborators
Dave Anderson, Fintech community organiser and DevOps Transformation Consultant
https://ie.linkedin.com/in/daveandersonireland@supergingerdave @gingertechie
Peter O’Halloran, Vice President & General Manager, eCommerce, EMEA at First Data
https://ie.linkedin.com/in/peterohalloran @p_ohalloran
Alex Lee, Investor and Board Advisor to FinTech firms
https://uk.linkedin.com/in/alexjameslee @AlexLeeFinTech
5© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Fintech Ireland – Origin & by the Numbers
1. Origin of Fintech Ireland
2. Numbers• 177K+ = number of visitors in last year
• 27,441 = number of current average monthly visits in Jan & Feb 2018
• 4,380+ = followers on twitter (10,00 across all twitter accounts)
• 1,100+= number of fintech enthusiasts who subscribe to the email list
• 45 = number of local & international events at which Fintech Ireland has presented
6
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Fintech Ireland – in one word
7
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes 8
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Where does Fintech Ireland Fit?
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
• Many Voices
• One Message
We Connect the Dots
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
We support a number of initiatives to put Irish Fintech on the global map, including
◦ The Fintech 50 (www.thefintech50.com) ◦ we promote the inclusion of Irish Fintech on the annual list
◦ 2017 saw the inclusion of two Irish Fintech - Fenergo and AQ Metrics
◦ 2018 should see even more Irish fintech on the list
◦ The Fintech 20 Ireland: we’re one of the three original stakeholders, together with Irish Tech News & The Fintech 50. Have today confirmed our commitment to the 2017 event this October (www.irishtechnews.com)
Extensive Travel – Across Europe, Asia, USA and Australia
11
© Fintech Ireland / www.fintechireland.com
International engagement & future development
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Two pioneers of Irish Fintech – international & local
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes 13
© Fintech Ireland / www.fintechireland.com
Fintech Ireland – Map (1/2) (Dave Anderson)
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes 14
Fintech Ireland – Map (2/2)
143 firms on Map
Top 3 sectors:
• Payments 36 (25%)
• Regulation 21 (14.5%)
• Accounting 14 (10%)
We are tracking 300
names in total
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Regulated Fintech & Regtech (Payments, E-Money, MiFID)
Authorised by Central Bank: 2 x E-money
13 x Payment Services (PS)
1 x MiFID (Regtech)
Authorised in EEA, passport into Ireland: Approx 554 x E-Money & PS
15
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Fintech Ireland Survey / Census
We are conducting a Fintech Survey / Census
It is available to all fintech firms in Ireland
https://fintechireland.com/fintech-survey.html
24 questions straightforward questions
Average time it takes to complete = 18 minutes
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Financial Services - Employment
50,000 - employed in FinServ
35,000 - employed in international FinServ◦ these employers contribute €2bn per year in taxes
7,000 - employed in Fintech
10,000 - target for increasing direct employment in the international Finserv by 2020
17
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Ireland – A Blockchain Leader
18
Funderbeam - Blockchain
Report 2017
Blockchain industry has
grown since 2013 from
funding circa $75mn to
$856mn.
North America has seen the
most funds raised, but
Ireland is reported at 6.26%
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Funding Figures - (1/2)
18% of €994 million in funds raised by Irish SMEs in 2017 for Fintech (€179mn)
Source: ©Irish Venture Capital Association (www.ivca.ie)
19
© Fintech Ireland / www.fintechireland.com
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Funding Figures - www.IVAC.ie (2/2)
◦ Deposify €200k
◦ Flender €1.95mn
◦ TransferMate €30mn
◦ YepUp €570k
◦ Rockall €450k
◦ Arex €3mn
20
© Fintech Ireland / www.fintechireland.com
◦ Fire €4mn
◦ Grid Finance €30mn
◦ Linked Finance €20mn
◦ My Future Now €3mn
◦ Options €100mn
◦ TouchTech Payments €600K
The 2017 figures from the Irish Venture Capital Association note the
following fintech raises:
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
While we are talking numbers … consider these figures
$153tn in value will be sent cross border in 2018 for B2B transaction $13tn (8.5%) will be processed by non-traditional payment institutions (i.e. banks)
Revolut achieves ‘unicorn’ ($1bn valuation) status following latest funding round Digital banking alternative targets 150,000 Irish customers this year
PayPal processed $132 billion in payments in Q1 2018, up 32% from a year earlier adds 8mn active users, grows mobile volume 52%
Ant Financial said to be in talks to raise US$10b in Temasek-led IPO deal could give Ant a $150b valuation, making it the world’s largest start-up
Money Social / Peer-2-Peer / Message Apps WeChat, Whats App, Facebook, Venmo (PayPal) processed $12bn in volume
Zelle (created by the US top banks) - Bank of America processed $9bn in volume Plynk
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Add we not even at the beginning of the evolution
Regulation – PSD2 leads to Open Banking, Emoney, MiFID (e.g. robo-advice), Insurtech, virtual currencies, distributed ledger technology, ICOs
Sandboxes (regulatory and private)
Innovation Hubs & Labs
How would you describe the impact of all of these on traditional banking, insurance & wealth management
We’re in Ireland – got a smart idea for innovation for credit unions? Now there is opportunity!
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
A couple of closing points1. Chatbots for customer service
2. Machine learning and AI for fraud detection
3. Omni-channel banking and obsolescence of bank branches
4. Biometrics for stronger security
5. Blockchain for digital transactions
Source: ©Dennis Gada – Infosys (https://www.finextra.com/blogposting/15105/five-ways-fintech-is-disrupting-the-financial-services-industry)
All the above will see exponential growth now that we are more deeply connected to digital channels via the internet and of course our smartphones
Question is, is the right term ‘FinTech’ or will it be ‘TechFin’?
And we haven’t touched on the Internet of things in this presentation!
www.fintechireland.com www.peteroakes.com [email protected] @fintechireland @oakeslaw
© Fintech Ireland © Peter Oakes
Thank you
https://ie.linkedin.com/in/peteroakes
https://www.linkedin.com/groups/8321352
Ireland: +353 87 273 1434
UK: +44 75 635 26834
24