FinTech Business

Applications

1
Fintech Cube

2
Continued
 P2P Lendimg
• P2P which blends technology, innovation, and disruption to provide an
improved lending experience, potentially impacting millions of
borrowers all over the world

4
Continued

• The world’s first MPL (Market Place Lending), Zopa, was founded in
the UK in the year 2005.
• The first MPL in the US, Prosper, was founded in 2006, and the first in
China, Paipaidai, was launched in 2007.
• Initially, such platforms enabled retail borrowers and investors to
contact each other directly, or ‘peer-to-peer’ (P2P) without the
intervention of a middle man.

5
6
Continued

7
Myths and Facts

• P2P lending is Unsafe

• P2P lending is the same as Crowdsourcing
• P2P lending is challenging to avail
• P2P lending needs a lot of money to invest
• P2P lending interest rates fluctuate

8
 How P2P Works
• In a standard scenario, services of the P2P platform can be divided into 3
major key areas:
• 1. Loan application and credit evaluation
• 2. Investor funding
• 3. Loan repayment

• The interest rate calculated by the platform combines the cost of capital in the real market
and the fee charged by the platform. This is because, unlike a bank, P2P platforms cannot
make money through interest rate difference but they make money by charging
commissions for their services. 9
10
The 6 C’s of P2P

11
P2B Lending

P2B lending is an investment form where people invest in business

loans through business lending platforms. Business loans are very
different from consumer loans, which most P2P investors invest in.

Primary Criteria Secondary Criteria

Collateral Average Interest
Validator Availability of Projects
Loan-to-Value ratio

12
Asset Management
• Asset management helps investors in investing and trading in a wide range of
investment options.
• Fintech, with its unique combination of finance and technology, has the
potential to completely change the way asset management is conducted. 

13
Continued

• Multi-Asset Class Support: Easier access to a wide

variety of investment options
• Real-time Data: Increased personalization of asset
management advice
• Risk Management: The use of robo advisors in asset
management

14
 Wealth Tech

• Wealth Tech industry has witnessed a marked rise in India and the world
at large.
• The primary reason behind the ground-breaking success of this industry
is its unparalleled dynamism and variety.
• The most relevant and popular types of WealthTech services are
robo-advisors
personal finance management and
digital brokerage
15
16
Top Five promising Wealth Tech Companies in India

17
 Neobank
• New-age banks without any physical location, present entirely online.
They provide digital, mobile-first financial solutions for payments,
money transfers, lending, and more.
• They allow customers to make deposits and withdraw money. They
offer debit cards, investment facilities, and more. They even provide
credit and lending services. 
• However, most neobanks do not have a banking license and cannot
operate stand-alone — they partner with licensed banks to provide
financial services.

18
  Better than traditional banks?
• While traditional banks have been slow to adapt to the changing needs of their
customers, neo-banks differentiate themselves by providing a superior
User Interface (UI), User experience (UX), and Customer Experience
(CX)

19
Continued

20
How do Neobanks make money?

21
Continued
• Traditional banks, which typically generate revenue from interest rates charged
on loans and credit cards, low account balance fees, overdraft fees, ATM fees,
and annual fees for credit cards

• NEOBanks generally make money in two ways: collecting out-of-network

ATM fees and through interchange fees—the fee merchants pay when
consumers swipe a credit or debit card.

• The vast majority of NEOBanks generate revenue through interchange fees.

• NEOBanks operate without physical locations, resulting in lower overhead,

which allows them to operate more efficiently 22
Alternative Credit scoring
• Using AI and ML, FinTechs are now focusing on formulating
predictive models for alternative credit scoring, based on data
collected from different behavioral attributes of potential
customers. 
• Data from non-traditional and non-financial sources such as
messaging content, social media footprints, digital payments
history, online browsing behaviour, telecommunications data
and locational data

23
24
25
9/3/20XX Presentation Title 26
Examples of InsurTech in an Ecosystem

OLA tied up with ACKO (full digital insurance

company in India -2017) – OLA ride insurance
for lost baggage, laptops, missed, accidental
medical expenses and ambulance transport
MANTRA LABS coverage.

Offers the first-AI driven solution support for insurance

back office works. - Religare, Aditya Birla Health, IBM
POLICY BAZAAR – Compare
Watson. policies, track policies and claims assistance.
 Alternative insurance underwriting
• FinTech companies are building variable premium computing
mechanisms with alternative data points such as social signals,
lifestyle, and medical history.

• Combined with intelligent and self-learning algorithms, these

InsureTech companies can determine:
1-whether or not to give insurance
2- provide different terms and conditions
3- offer alternative payment options (for example, co-pay options)
9/3/20XX Presentation Title 28
Continued
Pros Cons

•Easy to access for all and sundry •Insurance values are often small
•Consumers find it fairer •A single strategy cannot be adopted across all
insurance types

9/3/20XX Presentation Title 29

Continued

30
API in Banking

31
32
 An Evaluation of FinTech Models

1.FinTech for Businesses

2.FinTech for Consumers
3.FinTech for Investors
4.FinTech for Startup Founders
 Benefits of FinTech for Businesses

• Benefit 1: Access to More ◦ Benefit 3: Better Retention Rate for Businesses

Resources

• Benefit 2: Business Process

Optimization
 Benefits of FinTech for Consumers

1.Secure, Personalized, and User-

Friendly Financial Service
2. Access to Complex FinTech
Services Together with Robo or
Human Adviso
3.A More Convenient Access to
Credit Pool
 Benefits of FinTech for Investors
1.FinTech is the Ultimate field for
Disruptive Innovations

2.The Growth of Startups Increases

the Chance to Invest in the Next
Unicorn

3. Alternative Investments are

Becoming more Profitable
Benefits of FinTech for Startup Founders

37