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 AG – Financial Services Technologies4
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
FinTech Group AG – Financial Services Technologies5
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.
FinTech Group AG – Financial Services Technologies6
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
FinTech Group AG – Financial Services Technologies9
*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
FinTech Group AG – Financial Services Technologies10
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
FinTech Group AG – Financial Services Technologies12
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
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)
FinTech Group AG – Financial Services Technologies13
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)
FinTech Group AG – Financial Services Technologies14
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
FinTech Group AG – Financial Services Technologies15
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.
FinTech Group AG – Financial Services Technologies16
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
FinTech Group AG – Financial Services Technologies17
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
FinTech Group AG – Financial Services Technologies18
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
FinTech Group AG – Financial Services Technologies19
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)
FinTech Group AG – Financial Services Technologies21
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
FinTech Group AG – Financial Services Technologies22
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.
FinTech Group AG – Financial Services Technologies23
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
FinTech Group AG – Financial Services Technologies25
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!)
FinTech Group AG – Financial Services Technologies26
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
PayPal
Central Bank
FinTech Group AG – Financial Services Technologies28
Cashless w/o IDpay
Banks
Credit cards
eCommerce
Industry
80% citizenswith a bank account
Central Bank
20% citizenswithout a bank account
Apple
Bitcoins
PayPal
FinTech Group AG – Financial Services Technologies29
Cashless with IDpay
Protocol Layer eMoney
Apple
Bitcoins
PayPal
All citizenswith IDpay
eCommerce
Banks
Central Bank
Credit cards
Industry
FinTech Group AG – Financial Services Technologies30
Start your business now!
Stephan Simmang
CTO
FinTech Group AG
Rotfeder-Ring 5-7
60327 Frankfurt, Germany
www.fintechgroup.com