WELCOME TO LUXEMBOURG MEETS SLOVENIAN FINTECH...
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LUXEMBOURG MEETS SLOVENIAN FINTECH ECOSYSTEM - INNOVATIVE AND CONCRETE SOLUTIONS - WELCOME TO OCTOBER 25 @ 08:15 - 11:00 Partner Supported By Media Sponsor
Transcript of WELCOME TO LUXEMBOURG MEETS SLOVENIAN FINTECH...
LUXEMBOURG MEETS SLOVENIAN
FINTECH ECOSYSTEM- INNOVATIVE AND CONCRETE SOLUTIONS -
WELCOME TO
OCTOBER 25 @ 08:15 - 11:00
Partner Supported By Media Sponsor
Agenda
8:15 Registration opens
9:00 - 9:15 Welcome addresses
9:15 – 10:15 Concrete business case: “PSD2 compliant digital transformation” by Comtrade Digital
Services
Overview of Slovenian Startups ecosystem
Block: Slovenia Fintech startups revealed (presentations of top Slovenian startups in the
field)
• Netis
• Silver Bullet Risk
• Bitnik
• Krip.to
10:15 – 10:50 Panel discussion:
Jean-Pierre Borsa, Senior Adviser, ABBL; Matt Elton, Co-Founder, FinnoLux; Pierre-
Olivier Rotheval, Head of Innovation, BIL; Johan Lönnberg, Director Business
Development, Comtrade Digital;
Moderator: James Dakin, Culture Change and Business Development Director, IndigoJas
Ltd, UK
10:50 - 11:00 Q & A and wrap up
11:00 Networking
PSD2 IN DIGITAL
TRANSFORMATION
OF THE BANKING WORLD
Comtrade
Digital
Services
Headquartered
in Slovenia
Global
Delivery
Proven track
records of
successful
projects
Ryanair, HMH,
Vodafone, Skrill
(PaySafe), HP,
Addiko Bank,
VitaSystems,
Roche,...
Years
Experience
Employees
Technology
Centers
25
1500+
3
Development
Campuses
10
Digital
Transformation
Disrupt
or be
disrupted
Mindset
shift
pushed
by Millennials
CHALLENGES
ON THE MARKET
Making it
easyMaking it
funMaking it
free
1 2 3
Plattform
Economy / APIs
changes the
value chain
DIGITAL
CHALLENGES
ON THE MARKET
World’s largest taxi company owns no
taxisUber
Most popular media owner
creates no content
Largest accommod
ation provider owns no
real estateAirbnb
Largest phone
companies own no
telco infrastructur
eSkypeLargest
coffee shop becoming one of the
largest banks
Starbucks
World’s most
valuable retailer has
no inventoryAlibaba
From
classical
retail to
Online
CHALLENGES
ON THE MARKET
Cross
Platforms
UserExperience
Speed of
Evolving
1 2 3
The intention
of PSD2
• Creating a unified digital market in Europe
• Creating a common legal framework for the
operations of payments
• Boost European innovation - An increase in
competition and choice by facilitating market
entrance for regulated non-bank players (i.e.
payment institutions)
• Enable new types of services and roles for
market participants
• Enhance transparency, customer
protection and security
• Improved economies of scale for the
Single Euro Payments Area (SEPA)
The use of
internet
banking in Europe
Percent of persons that have used
internet banking in last three months.
Source: Eurostat
Rise of
Fintech
THE PAYMENTS
CHALLENGE
36%
21%13% 12%
7%
Tech &
E-Commerce
(i.e. Amazon,
Apple)
Traditional
retailers,
Telecoms
New
Banks
Payment
players
(PayPal,
Square)
P2P
lenders
Source:
The
Economist
Intelligence
Unit,
Temenos
New Entrants Posing the Greatest
Threat
to Traditional Bank.
How the
organization
of bank’s
competitors
looks like?
Flexible
Excellent
Using
latest
technologi
es
Streamline
d
and
automated
operations
Quick
decision
makingFocused
on narrow
product
set
Rigid
versus
Flexibility
CHALLENGES
POSED BY
REGULATORS
Rigidorganization(Basel III, …)
PSD2 and third party access to accounts
Comply without lowering
customer
experience
1 2 3
What are
the real
challenges
to the
bank?Cleaning out of legacy procedures and technologies
Maintaining a secure banking environment
Maintaining and fulfilling regulatory requirements
Reshaping the organization and embracing the
digital challengeIncreasing the traditional digital innovation
investment from 1-2% of the budget for a
period of time to something similar to the tech
companies 10-20% of the budget
Reinventing the products and services portfolio
Managing the new PSD2 Ecosystem and a
new partnership structure
To comply
with PSD2
standard
and wait
To comply
with PSD2
standard,
to be active
and rethink
your
business
model
TheImplicationsof PSD 2and thirdparty accessto accounts
CHALLENGES
POSED BY
REGULATORS
Compliance programs are only now kicked off
PSD 2 extends the scheme to new service roles
More than half of banks are rethinking revenue
modelsBig, established non-bank players and new entrants
Security is the biggest concern (XS2A rule)
Many
disconnected
legacy systems
CHALLENGES
WITHIN
BANKSSilos & legacy systems & legacy organization
Need forspeed
Costs &improvedcustomer
experience
1 2 3
Responding to threats
CONTINOUS INNOVATION
1ALL-DAYBANK
2FOCUS ON USER EXPERIENCE
3EXTEND THE ECOSYSTEM
4
Legacy Systems
Legacy Organization Digital
Organization
HOW TO CONNECT THESE TWO WORLDS?
Challenge
The new
Banking
PlatformBack end Services and Legacy Systems
Business logic layer
CUSTOMER EXPERIENCES
THE NEW BANKING
PLATFORM
Web,
mobile,
branch
BANK THIRD-PARTIES INTERNAL CUSTOMER
EXPERIENCES
Web
and
mobile
Smart
machines3rd party
devs
Analytics Branch
operatorsCross/
up-selling
Platform Marketplace
APIs
Internal Algorithms, Information, Resources, Analytics
PSD2 COMPLIANT
Comtrade‘s
approach to
PSD2 / Digital
transformatio
n
INNOVATIV
EFast
production
track for New
Front end
functionalities
ADAPTIVELearn how to
use APIs and
create
functions
base on your
need and
pains
COMPLIAN
TBe ready for
regulatory
and/or
industry
standard
changes
Comtrade’s
Solution
is an
UNIFIED API
PSD2
UNIFIED
APIs
Oursolution
PSD2 Digital
channels
Hybrid
channels
FinTech
companiesFinancial
institutions
UNIFIED API LAYER
Integration layer
Business logic layer
LEGACY CORE BANKING SYSTEMS
Keybenefits
Enablessmoothtransition toµ-
services
1Hides away complexity from client apps
2Provides reuse of legacy LOB apps with new tech
trends
3Standardized cross-channel
management and analytics
4
Our
approac
h• Agile
• Pragmatic
• Quick time to
market
Initial rapid
onsite scanning
& analysis
Check
existing
system,
limitations
Requirements
Assessment
Prepared
Roadmap
High
level
architecture
Systems,
vendors
List of
limitations
List of
assumptions
Proposed
solution,
process
Landscape
Effort
estimates
with
phases
Next steps
Heat map
Project
organization
proposal
The
Comtrad
e
way
Gestation
Inception
Prototype
Rollout
Rapid Growth
Expansion
Maturity
AGILE MATURE ORGANIZATION
The
Comtrad
e way
Proven& FastApproach
1SuperiorUser
Experience
225+ yearsexperiencein banking
& Fintech
3Flexibility
& capacity
to
accelerate
new
product
development
4
Is your
bank
ready
for it?PSD 2
is coming…
THANK YOU!
SLOVENIAN FINTECH
COMPANIES
Bitcoin exchange
First bitcoin exchange with EU licence
BITSTAMP
Bitcoin exchange
LOYALBIT
EXCHANGE
Enterprise risk management
SILVER BULLET
RISKhttp://www.silverbulletrisk.com/
ATM bitcoin exchange services
Reload – rebuy bitcoins on the fly
BITNIK
https://reload.bitnik.eu
https://bitnik.eu
An automated arbitrage trading platform for
cryptocurrencies
KRIP.TO
Blockchain development
Consulting & Advisory
Managing blockchain infrastructures
Security for blockchain systems
NETIS
https://www.netis.si
https://www.creditbit.org
NETIS
Blockchain technologies
Tomislav Mučič
Ecosystem
Coins Blockchains
Ethereum Tokens
Coinmarketcap
Possibilities of blockchain
Blockchain cryptocurrency
Blockchain file system
Blockchain database
Blockchain messaging
Blockchain world wide web
Blockchain remote hardware control
Blockchain email system
Blockchain governance – notariat
Blockchain digital shares
Blockchain loyality card
Blockchain telemetry
Blockchain selective cryptocurrency
Our cryptocurrency
Mining facility
We speak blockchain
Consulting for blockchain
projects
Development
Security for blockchain
technologies
Blockchain system ecosystem
maintanace
BITNIK
• Leading user-facing crypto company
• Education, workshops, consulting
• Bitcoin OTC traders (bitcoin ATM, SEPA)
• Since April 2014
SIDE PROJECTS
• Video: Bitcoin in Ljubljana
• Service: Bitnik Reload
Bitcoin OTC business
• Profitable
• Fast growth
• Straightforward
• Bitnik proven on market
But also
• Regulated?
• Hard to scale
• Crypto related business problems
OTC LOOKING FOWARD
• Market consolidation
• Increase in compliant solutions
• Separating crypto related risk from retailers
• Uberisation?
• Continued market growth (1B/y ++)
OPORTUNITY
• Centralized OTC seller with partners as customer
front
• Service takes care of:
• Crypto liquidity (also risks associated)
• Global marketing
• Compliance (AML,…)
• Legal
• Retail partner sells crypto as any other product
(Paysafecard)
Hurdles
• Banks
• AML policies
• Bad press
• Blockchain yes, bitcoin no
Bad ‘press’ examples• “…Despite third party reporting suggesting the use of anonymous currencies
like Bitcoin by terrorists to finance their activities, this has not been confirmed by
law enforcement…”
Europol, 18th January 2016
• “money laundering risk associated with digital currencies is low”
UK HM Treasury, MLFT national risk assessment, October 2015
• “…given that terrorists and other criminal groups are currently able to transfer
money within virtual currency networks by concealing the transfers or by
benefiting from a certain degree of anonymity on such exchange platforms…”
ECB opinion CON/2016/49, 12th October 2016 (on proposed changes to AML
policies related to cryptocurrency)
• from same document by ECB: “…if substantially increased in the future, could
in principle affect the central banks’ control over the supply of money…”
Bad ‘press’ examples
• “…Despite third party reporting suggesting the use of anonymous currencies
like Bitcoin by terrorists to finance their activities, this has not been confirmed by
law enforcement…”
Europol, 18th January 2016
• “money laundering risk associated with digital currencies is low”
UK HM Treasury, MLFT national risk assessment, October 2015
• “…given that terrorists and other criminal groups are currently able to transfer
money within virtual currency networks by concealing the transfers or by
benefiting from a certain degree of anonymity on such exchange platforms…”
ECB opinion CON/2016/49, 12th October 2016 (on proposed changes to AML
policies related to cryptocurrency)
• from same document by ECB: “…if substantially increased in the future, could
in principle affect the central banks’ control over the supply of money…”
SILVER BULLET RISK
IGOR ZGONC (CEO)
Mitigating risk – creating EBITDA
HOW DO YOU DECIDE?
WHAT DO WE NEED?
• Key risks – financially evaluated
• Assessment of overall risk exposure
• The needs for cash flow and capital• The assessment of the likelihood of insolvency and the assessment of the credit rating of the company
“Companies in the top 20% of risk maturity generated three times
the level of EBITDA as those in the bottom 20%.”
Ernst & Young
SEGMENTATION ?!
• The calculation of risk-adjusted margin at the level of major customers
• Cutting by customers, by markets and the risk factors
• Segmentation between the customer and the adjustment of the pricing policy
• Evaluation of the (different) segmentation on the profit and value of the company
Market Pain:
Conclusion:
The market has evolved and the current solutions don‘t solve the PROBLEMS. Everyone want‘s a simple solution – ONE DASHBOARD !
no comprehens
iveoverview
no common assasement of
all risks
Non combinablereports spreadsheet
s
no common denominator for different
risks
different risk management
approach/program
many independent
units/ sectors / silos
ENTERPRISE RISK MANAGEMENT
• Bigger the company – greater its complexity
• Huge piles of data and spreadsheets all in vertical siloes
• Every department for himself (strategic, operational, …), no common ground
• Non combinable reports
• Not enough or to much data
• Doesn‘t bring any added value„75% of firms with risk management department use spreadsheets for managing and reporting data.“
Ernst & Young
• Evaluate the risks!
• Different types of risks
• Risk management culture
• KPI
• Typical errors• Overlooked risks
• Concealed risks
• A missed communication
• Risk management in real time
• Many risks isn`t a better management
• Decisions taken without considering the register
WHERE ARE THE MAJOR FRACTURES?
SOLUTION ! 3 main objectives
1. Dashboard2. Involve everyone3. Increase EBITDA
Competition
• MS Excel (75%)
• GRC vs. ERM
• Compliance vs. EBITDA
• Vertical silos, project or IT
• Real time status results, reports
• Fast implementation cycle
• Database of cases, threats, vulnerabilities and measures included
Spreadsheets
UP-TO-DATE TECH• Blockchain
• audit trail• Security
• Data collection (SAP Hana)• Operational risks • Financial risks* • Strategic
„Risk oversight is a high priority on the agenda of the most boards of directors.“
(Coso ERM report)
Božo ReckoLead Developer, project management,information security consultant, business continuity consultant, web developer 18 years
Igor ZgoncCEO, marketing & sales,entrepreneur, risk management, IT management, business continuity and information security specialist16 years
Aleš GrmExpert programmer, web developer, DB admin12 years
SILVER BULLET CONSULTANCY
TEAM• 11 people working on SBR
• 15 years of experience with risk assessment in various industries
• Experts for Information Security and Business Continuity systems
• British Standard Institution certified ISO 27001, ISO 22301, ISO 31000
• Understanding of in-depth issues in implementing ERM
Thank you !
www.silverbulletrisk.comIgor Zgonc – CEO [email protected]
“Companies in the top 20% of risk maturity generated three times the level of EBITDA as those in the bottom 20%.”
Ernst & Young
„THERE IS NO SILVER BULLET FOR RISK„
– EXCEPT –SILVER BULLET RISK
Contacts
Comtrade: Matej Sosteric - [email protected]
Netis: Tomislav Mučič - [email protected]
BITNIK: Peter Trcek - [email protected]
Silver Bullet Risk: Igor Zgonc - [email protected]
KRIPT.TO: Miha Pulko - [email protected]
Thank you and enjoy networking!
