FinTech Group : Core Banking System€¦ · The powerful, reliable und future-proof banking...

FinTech Group : Core Banking System

The Standard Platform for Private and Specialised Banks

FinTech Group AG | April 2018

1. Our Company FinTech Group AG

2. Trends and Threats in the Financial Services Industry

3. Opportunity to Face the Change

4. The Financial Services Platform FTG:CBS

5. Design of Shared Banking Platforms

6. Innovative Outlook into a Future Vision

Agenda

FinTech Group AG – Financial Services Technologies2

1. Our Company FinTech Group AG

Financial services technology supported by in-depth banking know-how

The complete value-chain of white label banking and business process outsourcing

Modular software services

Full service provider for banking, online banking, payments, trading, regulatory compliance etc.

Long standing partnerships and success stories both in the B2B and the B2C world

Own certified data center (ISO 27001) in Germany

Fully licensed bank with EU-passport and high IT automation

Specialized in white label banking, business process outsourcing and securities processing

Digital online bank with highest process efficiency

Banking license granted by the German Federal Financial Supervisory Authority (BaFin) in 2005

Successful online banking and online brokerage brand in Germany and Austria for many years

The GroupFinTech Group AG is one of the leading providers of innovative solutions for financial services in Europe

FinTech Group Bank AG

FINFinTech Group AG

TECH


FinTech Group – at a glance

Employees Offices Number of

Customers

Customer Cash

Deposits

Securities under

Custody

Number of exchanges

and OTC-partners

Approx. 480 8 € 1 bn € 10.3 bn 64

Executed

Trades*

Executed

Trade Volume*

Credit Book*

(collateralized)

Average Interest Rate

(Loan Book)

TIER-1

Capital

Return on Equity p.a.

(before Tax)

12 m € 80 bn € 200m 4.3% p.a. € 41 m 22%

* FY2017 est.

>200k

B2C

>100

B2BBerlin

Zwickau

Willich

Andernach

Frankfurt a.M. (HQ)

Kulmbach

Dusseldorf

Vienna


Our ReferencesThe combination of our technology and banking know-how enables our clients to build top-class products and services

Key partner Notable clients

FinTech Group was chosen to

set-up the technological

infrastructure for digital online

retail banks in Germany and

Austria including providing

several respective regulatory

banking processes

FinTech Group AG developed,

maintains and runs LOX, the

ETP OTC system for Deutsche

Bank AG and Commerzbank AG

- 3bn price feeds and 50k

transactions - per day.

FinTech Group Bank AG werechosen by Equatex - one of theleading European stock optionplan administrators with >3bnEUR AuC – to provide bankingand custody services; opening250k accounts in 4 weeks.

FinTech Group AG is the central

IT service provider for the

Federal Association of German

Banks, providing key

technology platform to run the

German Deposit Guarantee

Scheme.


2. Trends and Threats in the Financial Services Industry

Digitization increases the pressure on integration of customers and processes:

Despite the support of top management, many companies have not developed an overall strategy yet

Key Issues in Banking

8 FinTech Group AG – Financial Services Technologies

Start-ups: New competitors in the market lead to a decomposition of the value chain in banking

Business Analytics is gaining importance in sales: More “soft” customer data (from more sources) exploiting the potential of customer data and more effective customization of products

Cost structures to the test: The majority of banks are reviewing their cost structure -one focus is IT and possible consolidations

Regulatory: The banking supervision’s (ECB, NFSA) demand on the management of banks are increasing (BCBS 239, IT security law, IRBA, MIFID II, etc.)

Growing market demands affect all banks equally. The developed solutions here in the undifferentiated area will help banks to focus on their core competencies in banking

BANKING INFRASTRUCTURE FOLLOWS RELUCTANTLY AND SLOWLY. THIS ENDANGERS ECONOMIC PROGRESS.

1980 20202000

PLATFORM*

collaborative flexible

PROPRIETARY

individualised specialised

FACTORY

automated integrated

Development of IT Architectures

The financial industry has to keep up with the

real economy

EFFIC

IEN

CY


*e

.g.

SA

P, I

nd

ust

ry 4

.0, a

uto

mo

tive

pla

tfo

rm,

tele

com

mu

nic

ati

on

s: N

etw

ork

fu

nct

ion

s vi

rtu

aliza

tio

n (

NFV

)

Threats in BankingC

HA

LLE

NG

ES

:

Strong cost pressure in the industry

Growing market and regulatory requirements

Start-ups attacking classic banking business models

The financial industry has to keep up with other economic sectors

SO

LU

TIO

N:

Development of a sustainable, innovative IT concept out of current web and cloud solutions

Non-differentiating infrastructure, applications, processes and services can be shared

Participating financial institutions save up to 25% IT costs and 30% process costs

FinTech Group provides these shared services for financial institutions

A new IT full-service provider would help banks to face these upcoming challenges

The financial services industry is facing a disruptive game change


3. Opportunity to Face the Change

?

Fiducia & GAD IT AG

Two out of the Three German Banking Groups use Shared Banking Platforms

CLOSED AREA

Financial IT

CLOSED AREA PRIVATE AND SPECIALISED BANKS

The standard platform

FinTech Group AG


Staus quo: Jede Bank nutzt ihre eigene Infrastruktur, Anwendungen und Prozesse

In t

he

ne

xt

5 t

o 1

0 y

ea

rs, t

he

ba

nk

ing

se

cto

r w

ill ch

an

ge

dra

ma

tica

lly w

hile

fa

cin

g d

isru

pti

ve d

eve

lop

me

nts

Customer

Business processes

Applications

Infrastructure

National Bank

National Financial

Supervisory Authority

80% of the costs go to

face internal and

regulatory expenses*

New Competitors

New Technologies

PayPal

Start-ups

Non & Near-Banks

Apple

Alibaba

Google

Amazon

Cloud

Web-based Platforms

Blockchain

Business Intelligence

Maintenance

Processes

Transparent Data

Regulatory

Reporting

Tax(FATCA, etc.)

BANK 1...N

Banks concentrate their resources on internal tasks and lose the customer access to new market participants

* P

riva

te b

an

k s

ect

or

(Eu

rop

e)


Future: Banks Share Non-differentiating Services, Infrastructure, Applications, Processes

BANK 1...N

Customer Customer Customer

Shared Infra-

structure

Bank 1

Bank 2

Bank n

Reduce annual IT costs by up

to 25%

Applications

Business Processes

Customer

Infrastructure

Transform traditional brick-and-mortar to a sustainable “web based cloud” to reduce IT costs by up to 25% (and process costs up to 30%)

Weiteres Potential

* P

riva

te b

an

k s

ect

or

(Eu

rop

e)


5 Clearly Segregated Goals for the Future Development

OF A COMMON TECHNOLOGY SUPPORT PLATFORM FOR P&S BANKS

MarketStandard for Private and Specialised

Banks

Expansion of Capabilities & Regulatory Compliance

Quality & StabilitySound & Stable

Process Standards & Full-service Provider

Innovative & Future-proof

ECONOMIC & SUSTAINABLE

The powerful, reliable und future-proof banking platform offers the right combination for technology requirements and services all private and specialised banks’ needs


The FinTech Group Platform Provides All Crucial Financial Services for All Private and Specialised Banks

Shared Services

Omnichannel & FinTech

FS Platform

Hosting/ General Ledger

Full-service Provider

Digital

t2m

€

INC

OM

E

FLEXIBILITY

Service Portfolio for SMB*

1Shared services and BPO streamlining processes and operation of commodity-based business processes (reporting, payment, loan processing, communication, procurement...)

2Omni-channel & digitisation customer-bank, intra-bank and inter-bank processes FinTech landing platform (HBCI/FinTS; EDIFACT/Block chain; MT 940/CAMT.053)

3Banking + standard and individual applicationsStandard core banking, shared standardapplication, individual applications anddevelopment

4

Hosting; IT Infrastructure and cloud servicesThis portfolio includes the hosting of IT especially the general ledger and other standard applications such as SAP, trading systems, etc.


Das Full Service Provider ModellIS A CENTRAL SUCCESS FACTOR OF THE SHARED BANKING PLATFORM

Full-service Provider

Digitisation

Business Processes

Banking Software

Data Centre

Management

Administration

IT Organization

Regulatory, NFSA, reporting

Mobile solutions

Blockchain; CAMT; EDIFACT; etc.

Process design

Shared services, BPO

Product management

Development

Regulatory

24/7

High-security data centre

All IT issues are managed by the full-service provider. The operation of the data centre and software development can be outsourced


Build Out the Ecosystems as Part of Your Digital Platform

Intelligence

18

Collaboration Orchestration Creation Matching

B2B Developer GateKeeper B2C Community Provider Business Agency Developer Developer User/ Buyer User/ Buyer Seller Partner Partner Buyer

API

API

API

1 Access new sales and distribution channels

2 Provide new customer interactions

3 Provide new capabilities

4 Extend or create sets of products and services

PLATFORM BUSINESS MODELS

Customers

IOT IT Systems

Ecosystems

Ecosystems Ecosystems Ecosystems Ecosystems


Differentiation through use of the ecosystemThe Platform Acts as Landing Platform for Start-up Companies to Get Access to Banks and Clients

BANK

Omni-channel

DWH / BI

Additional individual applications

Additional shared applications

Shared core application

Regulatory platform

General ledger

The financial services platform is based on international standards and innovative solutions


4. The Financial Services Platform FTG:CBS

FinTech Group AG has built the most modern and extensive financial services platform to enable banks, FinTechs and

corporates. This includes infrastructure, software, banking and services. By leveraging technology and banking we are able to

offer the complete value chain for White-Label Banking Services and Business Process Outsourcing.

The Financial Services Platform (1)


The Financial Services Platform (2)IN COMBINATION WITH IT-FULL SERVICE PROVIDER

DATA CENTERS ISO 27001

SEPA SWIFT EXCHANGES …

Application Use Cases

API Layer

FinTech Group PlatformSoftware + Banking

FinTech GroupData center

Financial System Infrastructure

BanksPaymentInstutions

Corporates

API

…

flatexBrokerFintech

Start-ups

API

FinTech Group Bank

Regulatory Umbrella

BPO


The Financial Services Platform (3)

The use cases for the platform are vast. Our platform serves as the backbone for online brokers, retail banks, lending platforms, securities processing and payments services. The modularity and the broad range of possibilities makes our platform a great partner for digital solutions.

Retail BankingWe provide you with a full and completely white-labeled retail bank on top of our platform with services outsourced to our bank.

Online BrokerWe have built one of the largest online broker (flatex.de) in the DACH region on top of our platform.

LendingTechnology-backed lending is one of the big trends in FinTech. We offer a fully digital solution for lenders.

Corporate PaymentsManage your payments with our fully digital solution “Corporate Payments”. We hide away the complexity so that corporates can concentrate on their business.

Umbrella Banking LicenseFinTech Group Bank AG, our fully regulated bank, is specialized in White-Label Banking and Business Process Outsourcing. FinTechsand international financial institutions are using our services.

Securities ProcessingOur highly automated platform offers the most efficient securities processing in Europe. Completely white-labeled.


5. Design of Shared Banking Platforms

Gartner’s Recommendation: Bi-modal ITTHE IT RESPONSE: NO MORE ONE SIZE FITS ALL

Closely examine the purpose of the selected IT

System ofInnovation

System ofDifferentiation

System of Record

TraditionalMode

Required Reliability

(ITIL, CMMi, COBIT)

NonlinearMode

Accept Instability

(DevOps, automation,

reusable)

45%of CIOs currently havea second fast/agile mode of operation

+-

GO

VE

RN

AN

CE

+-

CH

AR

GE

Source: Gartner annual CIO Survey, 2014


InnovationAgility

Flexibility

StabilityReliabilityEfficiency

Architectural DevelopmentOF THE SHARED BANKING PLATFORM FROM A BI-MODAL APPROACH TO A CONVERGED ONE

Fu

ll-s

erv

ice

IT

Pro

vid

er

(FS

IP)

Sh

are

d B

an

kin

g

Tech

no

log

y P

rovid

er (S

BT

P)

TIME VALUE

2020

2025

2017

Mode 1 platform• incremental• integrated

Mode 1 platform• as is• factory

Mode 2 platform• SaaS• ecosystem

Mode 2 platform• technology

platform

Traditional core banking vendors ----- Cloud service provider

Mode 1/2 converged• collaborative• cloud native

Using past experience and sustainable technology to develop a future-proof solution (don’t make the same mistakes again!)


6. Innovative Outlook into a Future Vision

Payment Today

cashcash

Banks

Credit cards

eCommerce

Industry

80% citizenswith a bank account

20% citizenswithout a bank account

Apple

Bitcoins

Google

PayPal

Central Bank


Cashless w/o IDpay

Banks

Credit cards

eCommerce

Industry

80% citizenswith a bank account

Central Bank

20% citizenswithout a bank account

Apple

Bitcoins

Google

PayPal


Cashless with IDpay

Protocol Layer eMoney

Apple

Bitcoins

Google

PayPal

All citizenswith IDpay

eCommerce

Banks

Central Bank

Credit cards

Industry


Start your business now!

Stephan Simmang

CTO

FinTech Group AG

Rotfeder-Ring 5-7

60327 Frankfurt, Germany

[email protected]

www.fintechgroup.com

mailto:[email protected]

FinTech Group : Core Banking System€¦ · The powerful, reliable und future-proof banking...

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