apidays London 2022 - From Open Banking to Embedded Banking, Simon Torrance, Super App Strategies

apidays London 2022 - The Path from Open Banking to Embedded Finance
October 26 & 27, 2022

From Open Banking to Embedded Banking
Simon Torrance, Founder & CEO, Embedded Finance & Super App Strategies
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Transcript

1. Embedded Finance A $7.2 Trillion market opportunity (and how to realise it) Simon Torrance CEO, Embedded Finance & Super App Strategies simon.Torrance@embedded-finance.io www.embedded-finance.io
2. 2022 SERIES OF EVENTS New York JULY (HYBRID) Australia SEPTEMBER (HYBRID) Singapore APRIL (VIRTUAL) Helsinki & North MARCH (VIRTUAL) Paris DECEMBER (HYBRID) London OCTOBER (HYBRID) Hong Kong AUGUST (VIRTUAL) JUNE (VIRTUAL) India MAY (VIRTUAL) APRIL (VIRTUAL) Dubai & Middle East JUNE (VIRTUAL) Check out our API Conferences www.a pida ys .globa l Want to talk at one of our conferences? apidays.typeform.com/to/ILJeAaV8
3. Introduction Leadership Advisor • New Growth Strategy • Platform & Ecosystem Strategy • Venture Building www.embedded-finance.io Market Map
4. What is Embedded Finance? Financial services functionality… …Abstracted into software …So, any product manager or developer …Can create new customer experiences ...Using FS a visible add-on or an invisible component …Quickly, cheaply, flexibly Payments, Lending, insurance Payments, Credit, Insurance, Rewards, Pensions Payments, Lending & Insurance Lending & Insurance Examples Payments, Lending & Insurance
5. Traditional Financial Institutions… Source: Simon Torrance, based on FICO Bank Study 2020 Unmet financial needs • Smart purchase decisions • Path to more household income • Using and managing debt • Relevant and fair insurance • Tracking towards desired lifestyle • Relationship of $$ and happiness
6. Copyright: Simon Torrance 2022 Traditional Brands (Big & Small) Embedded Finance ‘Operating Systems’ Consumers & Businesses License & Capital Other Financial Services Other FS Capabilities Other Compliance & Alternative Capital Banking Products Banking Capabilities Other Underwriters Non-FS Value Added Services Non-FS Capabilities Bank Underwriters New Real Time Data (Open Finance, Sensors) Digital Platforms (Big & Small) A New FS Value Stack is emerging Orchestrate Supply and Innovation Demand Supply Real-time insights Aggregate demand and support decision making
7. Significant commercial benefits for all types of brands + Insurance 100m new customers Source: Simon Torrance analysis, industry interviews B2B Software Businesses Digital Platforms + Credit + Insurance +20% to order value +50% conversion Retailers & Manufacturers + Payments + Loans + Insurance 5x SaaS TAM/ARPU
8. Consumers are increasingly interested… 75% 67% 51% Gamers: in-game accounts, for virtual goods and rewards Home fitness fans: health insurance based on fitness habits DIY Enthusiasts: savings accounts for large projects Source: Cornerstone Advisors survey of 2555 US Consumers, Q1 2022 60%+ Gen X, Gen Y, Gen Z (42% Baby Boomers)
9. As are Small Businesses… Source: Accenture global survey, December 2021 % interested in Embedded Finance from a digital service provider Type of EF offering
10. Financial Technology = the world’s new innovation platform Embedded Payments Companies Embedded Lending Companies Embedded Insurance Companies Top 30 Global Software Companies Top 30 Global Financial Institutions $3.6 Trillion* $5.1 Trillion* $7.2 Trillion* 2020 2020 2030-5 Licenses & Deposits Internet + Cloud + Mobile Tech + Financial Technology Wealth Mgt etc Source: Simon Torrance analysis 2021 They Exploit: * Market Value
11. #1 success factor = ‘Ambidextrous Organisation’ 3. Effective Governance 1. Optimise the Core 2. Fast-Track the New SPEED BOATS • New markets • New business models • New talent SUPER-TANKER • Deepen relationships • Automate processes • Learn new skills • Economies of scale and scope • Unfair advantages • Fit for the future
12. A Noble Purpose… Financial Wellness solutions baked into the Everyday Lives of Everyone
13. Six key points 1. All aspiring ‘super brands’ need a (more) ‘super app’ 2. Fintech is a new hook and glue for customers 3. Educate leaders about ‘The Art of the Possible’ 4. Create a proper strategy and a portfolio of experiments 5. Your current organisational structure is your #1 barrier 6. Embedded Finance = Financial Wellness for all
14. Embedded Finance The $7.2 Trillion market opportunity (and how to realise it) Simon Torrance CEO, Embedded Finance & Super App Strategies simon.torrance@embedded-finance.io www.embedded-finance.io