11/15/16
Confidential. Do not distribute.
Who’s Eating Your Lunch? The New Competition
11/15/16
22
The Usual Question: Startups vs Incumbents?
• Speed• Focus• ModernTech• CultureofRiskTaking
• Experience• Process• Hard&so?assets• CultureofRiskManagement
vs.
33
Better Question: Tech Titans vs. Incumbents
vs.
Google.Facebook.Alibaba.Amazon.Apple.Tencent.
• Gigascale–franchiseof1B+consumersastablestakes• Mobile–smartphoneiscoretheirDNA&strategy• Data–richer,moreuniversaldatasets+cuMngedgeanalyNcs• Mindset–“What’sPossible?”vs“Wehaven’tdoneitthatwaybefore.”
44
Money2020 attendance had Tech Titans in force
0 10 20 30 40 50 60
BofAGoogle
SynchronyPayPal
JPMAmazon
EquifaxFacebook
Numberofa+endeesin2016@Money2020
55
Tech Titans are Eyeing Financial Services…why?
66
Hallmarks of Tech-driven Transformation
TransparencyLessFricNon DeflaNonary+
77
If I’m right … so what?
1
2
3
FinTechstartupsrepresentapetridishofexperimentaLon.Monitorforwinningideas.
TechTitansrepresentmuchgreaterthreatthanstartups.Monitortheirstrategicmovesclosely.
ExisLngrevenuepoolswilldecline,whilecostsalsofallwithtech.“CreaLveDestrucLon”ofOppty.
Incumbentscan,andshould,collaboratewiththeFinTechstartupstocountertheloomingthreatposedbyTechTitans.