Driving Exponential Growth and Improvement in Financial Services

Financial Services Forum – London - November 22nd 2016

Rohit Talwar – CEO - Fast Future

rohit@fastfuture.com @fastfuture www.fastfuturepublishing.com

Tomorrow’s Agenda

Build Mindset, Talent, Agility and Innovation Culture

‘Future Proofed’ Organisations Work on 3 Horizons in Parallel

4-10+ YearsUnderstand

Future Drivers

1-3 YearsSearch for

Growth

1-12 MonthsOperational Excellence

Emotional vs. Rational Responses to the Future

A US$78-120 Trillion Opportunity

10 Key Disruptions are Shaping the Global Business Environment, Driving Change and Creating Opportunity 1. Shift from Physical to Digital Mindsets2. Exponential Science and Technology

Developments – e.g. Internet of Things, Big Data, Artificial Intelligence and Robotics

3. Linear Versus Exponential Business Thinking4. Human Versus Machine5. Potential for Major Shifts in Employment Patterns6. ‘Financial Stress’ Driving New Economic Thinking7. Migration from Central Control to Distributed -

Digital Currencies, Blockchain and CryptoContracts8. New Industries are Emerging9. Desire for Trust and Transparency10. Social Structures and Political Governance Models

at the Crossroads – Brexit, Trump

When Two Worlds Collide A

Digitized Society With

a Global Brain

A Physical & Local World

How will we Change our DNA?

Play by the

Rules of the

Game

Create a

New Game

Every Sector will Transform by 2020

But Are Our Vehicles Fit for Purpose?

‘Financial Stress’ is Rising

Derivative Risk - Something Has to Give

New Economic Thinkinge.g. Star Wars vs. Star Trek

AbundantHealth

Science is Spawning New Mega-Sectors e.g.

Age Extension and

Human Enhancement

Potential for Major Shifts in Employment Patterns1Bn+ Jobs Automated by 2030?

Time for a New Economics?

Guaranteed Basic Incomes?

What Could the Products Look Like?

Reworking Economic Models

Digital Currencies New Economic Models / Transaction Flows / Forms of Speculation / Risks

Empowering the 6 Billion?

The Power of Exponential Growth

Nanotechnology / Atomically Precise

Manufacturing3D / 4D Printing

New Computing

Architectures

Hyperconnected Internet of Humanity

Immersivity / Mixed Reality

Living

Food ChainTransformation

Energy Innovation

Robotics / Drones

Brain Uploading

Exponential Science and Technology

Developments

Blockchain Technology

Healthcare Transformation

Artificial Intelligence / Conscious Technology

Synthetic Biology

Human Augmentation

Integrated Robot Systems- Hadrian X

Rapid Modular Construction – 57 Storeys, 19 Days

Truly Disruptive Innovation e.g. Hyperloop

Pursuit of Exponential GrowthAirBnB Hotels 90x more listings per employee

GitHub Software 109x more repositories per employee

Local Motors Automotive

1000x cheaper to develop a new car model 5-22x faster to manufacture a car

Quirky Consumer Goods 10x faster product development (29 vs 300 days)

Google VenturesInvestments

2.5x more investments in early stage start-ups10x faster through design process

Valve Gaming 30x more market cap per employee

Tesla Automotive 30x more market cap per employee

Tangerine (formerly ING Direct Canada) Banking

7x more customers per employee4x more deposits per customer

Strati – First 3D Printed Car (Local Motors)

Exponential Market Cap ImprovementAge (yrs) 2011 valuation 2016 valuation Increase

Haier 31 $19 billion $60 billion (2014) 3x

Valve 19 $1.5 billion $4.5 billion (2014) 3x

Google 18 $150 billion $533.4 billion 3.6x

Uber 8 $2 billion $62.5 billion 31xAirBnB 7 $2 billion $25.5 billion 12.8x

Github 7 $ 500 million (est.) $2 billion 4xWaze 7 $ 25 million $1.15 billion (sold to

Google in 2013)46x

Qirky 6 $ 50 million Closed 40x at peak

Snapchat 4 0 $16 billion 16,000x +

What’s Next in ICT - we can Anticipate at Least 60%of the Technology Timeline

It is Key to Understand the Core Trends…

A Continuous Technology Evolution in Power, Performance and Size - from the Mainframe...

…to the Desktop…

...Portable and Mobile ...

...Wearable...

...Embedded...

Pervasive, Embedded, Augmented, Connected to a Multi-Sensory “IoE” = Immersive

Intelligent Assistants and Digital Twins

Blockchain Blockchain was created

for Bitcoin

Eliminates central clearing mechanisms by distributing transaction ledgers across the web securely

All parties involved remain anonymous

“The dumb money has shown up” - Fred Wilson Union Square Venture

Ethereum and Smart Contracts• Ethereum - platform to

create private blockchains and smart contracts

• Goldman Sachs Estimates:– Legal savings of $US11

- 12 billion per year from streamlining clearing and settlement of cash securities

– $US2 - 4 billion annual legal saving on moving real estate titles to distributed ledgers.

Capabilities and Application Domains are Proliferating

Image classificationSpeech processingHandwriting recognitionText processingLanguage translationProduct developmentTransaction processingCustomer serviceLoan analysisRobotic process automationSentiment analysisThreat assessmentFraud detectionStock tradingSelf-driving vehiclesMedical diagnosis

Exponential Growth and Improvement• Operations

• Research Insight

• New Services / Customers

• New Sectors

• New Business Models

• New Asset Classes

Fintech TargetsLower cost of customer acquisition

Lower cost of serviceInnovative data applications

Segment-specific propositionsLeveraging existing infrastructure

Managing risk and regulatory stakeholders

How do we Avoid Eliminating Personality and Differentiation?

“What was once a sit-down conversation between a client and their personal private banker might now be accessible through a mobile app to broad audiences, 24/7.“ Diwakar Choubey, CEO of online lender MoneyLion

Operations – Complexity / Security

• Customer Interface

• Operational Processes

• Organisation Design

• Management of Data / Information / Knowledge / Systems

• Regulatory

• Human

Chatbots• Rant & Rave powers

customer service of over 50% of FTSE. Real time customer feedback and ‘sentiment’ analysis

• Swedbank Nuance Nina -human-like conversational service. 78% first-contact resolution, 80% of questions answered; 89% of consumers want to use virtual assistants to find information quickly.

Cyber Attack Detection – e.g. PatternEx

Fraud Detection e.g. Feedzai

Environment Managers

A Robot on the Investment Board

Life Expectancy and Cyclical Careers

New Services / CustomersExamples

• Unlocking revenue from

exhausted assets

• New market solutions

• Whole of market solutions

• New consumer services

New Revenue Streams from Exhausted Assets - Flightcar

Asset Provenance and Ownership – E.G. Everledger

Whole of Market Solutions E.g. Habito

Sweep – Instant Bill Payment and Micro-Savings

BofA Erica - Credit Score Checking, Spend Analysis, Bill Payment Advice, Money Movement

Goldbean – The Financial Netflix

ING - Designing Digital Products for Non-Customers

New SectorsS&T Innovation and New Ideas are

Enabling Tomorrow’s $1Tn+ Sectors

Info. and Communications Technology Mobile Internet - Devices, Services,

Infrastructure, Commerce Next Generation Intelligent,

Personalised Internet Cloud Based Applications,

Infrastructure, Services Internet of Things / Internet of

Everything / Internet of Humanity Big Data, Data Mining and the

Automation of Knowledge AI, Deep Learning and Robotics Blockchain Systems and DAOs

Production and Construction Systems & Technologies

Advanced Robotics / Drones

3D/4D Printing and Advanced Materials

Genomics and Synthetic Biology

Biomimcry Applied to Product Design and Engineered Systems

Rapid / Green / Sustainable Construction

Citizen Services and Infrastructure Health 2.0 – Wellness, Personalisation,

Prevention, Diagnosis, and Treatment Elder Care Human Modification / Augmentation /

Body Shops Clean Domestic Water and Sanitation

Services Smart Homes – Smart Devices, Air

Conditioning, Waste to Power Green / Electric / Autonomous / Near-

Autonomous Vehicles Education Systems Transformation

New Business Models

Decentralized Autonomous Organizations

AI is Enabling a Business Concept Revolution

Working with New Asset Classes

Valuing Non-Monetary Assets

First they ignore you,then they laugh at you,then they fight you,then you win.

Mahatma Gandhi