Future of Financial Tech

Poornima Vijayashankerpoornima@femgineer.com

@poornima

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Background

• R&D Engineer @ Synopsys

• Founding Engineer @ Mint.com

• Founder & CEO @ BizeeBee

• Founder of Femgineer.com

• Instructor @ Duke University

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Rich history.

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Financial Tech.

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What is financial tech?

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Payments

Investments

Reporting

Funding

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Agenda

• Online

• Devices

• Financial Reporting

• Future of Financial Tech

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Life used to be pretty simple...

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Life used to be pretty simple...

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Little more sophisticated.

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Commerce

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Fancy Financiers

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Simple storage.

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Boring.

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People started moving around...

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and money came along!

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Money evolved.

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Meanwhile markets started to feel a crunch.

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Housing crunch.

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Banking crunch.

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Widespread!

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But let’s get this clear...

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All of this....

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Did not lead to this!

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Financial tech frees people.

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Collect(Selling

goods and services.)

Track(Flow of funds.)

Financial Technology

e-commerce & devices online banking

Finance(Borrowing

and lending.)

micro-lending & crowd funding

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Goal of technology is to make life easier.

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Contributed to growth globally.

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Online and in emerging markets.

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By democratizing access to capital.

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Cheaper to start a business.

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But it is still up to the owner to become profitable!

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Depends on product.

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Speeding up the movement of funds.

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Depends on amount of money and where it’s going.

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Adding transparency to the system.

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Other Financial Tech Use Cases

• Trading platforms

• Forecasting

• Risk Assessment

• Reporting

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Commerce

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Very limiting in terms of geography.

Seller

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Very limiting in terms of available goods and services.

Buyer

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But now we have e-commerce!

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Opened Up More Markets

• Peer-to-Peer

• Larger inventory

• Access across geographies

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Made it easier to sell!

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Simple Setup

• Sign up for an Account: 15 minutes.

• Bank makes deposits to check ownership: 1-2 business days.

• Post goods and services: 15 minutes.

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What’s the future of e-commerce?

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US Retail e-commerce Sales

2013: $259B 2012: $225.5B

14.8% Increase

e-Marketer: Retail Ecommerce Set to Keep a Strong Pace through 2017

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?vs

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?

In the US in 2012

Online fraud cost e-retailers $3.5B in 2012

0.9% of Online Revenue

Higher incidents internationally but order rejection higher.

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Online Reputation

• Fraud scoring model

• Web site behavior

• Order history

• Order velocity monitoring

• Identity trail - Good citizen vs. Bad citizen

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More Sophisticated Methods

• Card verification - doesn’t work if card is stolen

• Two-factor authentication

• Address verification services

• Contact card issuer

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Balancing Competing Interests

ScalabilityHandle large sets of

transactions.

SpeedProvide liquidity faster.

Get goods faster.

SecurityVerify identity with more sophisticated

algorithms.

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Benefits of Devices

• Easier to get approved

• Easier to transact

• Lower transaction fees

• Offer quicker funds transfer

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Device Market Limitations

• Commoditized

• Fragmentation

• Maybe suffer the same fate as credit cards - unless there is an aggregator!

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Device Agnostic

• Invoicing

• Billing

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What about for the consumer?

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Peer-to-Peer exchange gotten easier.

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Financial Planning

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Financial Planning

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Unsolved Problems

• Access to capital for the unbanked

• Identity theft

• Payday loans

• International banking

• International employment & taxation

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Future of Financial Tech

• Improving the experience of financial transactions for businesses and consumer.

• Financing

• Digital currency

• Devices

• Identity management

• Reporting and Forecasting services

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It’s not just about making $ it’s about securing it.

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Review

• Online

• Devices

• Financial Reporting

• Future of Financial Tech

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Additional Resources

• Office Hours

• Online Mentoring

• Courses

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Q&A

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