Startups vs banks: the struggle for virtual wallets
One of the most popular and promising areas of startups is FinTech & online payments. This definition hides projects in the area of financial services and online payments. Despite the promising direction, the work in it involves a huge number of pitfalls - primarily because of the difficulties of government regulation.
The direction of FinTech is technology related to the provision of financial services. There are two main types of products based on them. The first ones, which have been on the market for quite some time, provide software and services to financial services, that is, they use the B2B model. The latter, which have been actively developed lately, are focused on the end user, that is, B2C. The latter face an extremely ambitious task - to compete with traditional financial service providers in the struggle for a mass customer.
The range of specialization of such projects is very wide - ranging from online and mobile applications, and ending with the areas of trading, currency exchange, personal finance management.
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Financial services today are one of the most trending in the world - not only in the US, but also, for example, in Israel, where this year’s start-up market was blown up by two FinTech projects: the financial giant Citi announced the creation of the first accelerator in Israel sector, and after him the Israeli bank Leumi, together with the accelerator Elevator officially announced the opening of the FinTech Innovation Hub for financial startups. The fashion for the development of the segment came to Russia, where, for example, last year the venture fund “Life.Sreda” was created with specialization in investments in mobile and Internet projects in the financial sector.
In Ukraine, electronic payments, unfortunately, are not as well developed as in Europe and the USA. This is explained by the fact that according to the law on payment systems and transfer of funds, only banks own the right to issue electronic money in the country. In this case, the rules of the electronic money system must necessarily be coordinated with the regulator - the National Bank. Experts believe that in order to develop the market of electronic payments, it is necessary at the legislative level to allow the issuance of electronic money to a wide range of companies, not just banks, like the present.
Nevertheless, the turnover of electronic money in the country is estimated at between 250 million and several billion dollars a year. For comparison, according to estimates of J'Son & Partners, in 2012, the turnover of Russian Internet banking systems amounted to 591 billion rubles (about $ 18 billion). And by 2018, this figure, as agency analysts predict, should more than tripled. Statistics NBU shows that the turnover of electronic money is growing about 10 times a year. Therefore, despite the legislative barriers, the sphere will unambiguously develop. If only because there is not a single promoted micropayment service on the market.
It is obvious that FinTech can become one of the most promising start-up areas in the CIS. However, entrepreneurs who take the risk to master it, have to solve the difficult problem of meeting the requirements for capital of financial services, as well as other various aspects of government regulation. And, of course, access to the global level and product integration with existing services.
One of the interactive workshops that will be held at the Startup AddVenture conference (to be held in Kiev on December 4-5) will focus on solving these tasks. Its participants will explore the possibilities for projects in both B2B and consumer segments. And also they will discuss the latest trends in the development of directions, both in Europe and in the world.
The participants of the workshop, led by the world's best experts in the area of financial services, will be looking for effective marketing techniques to quickly turn a startup into a successful business. It is planned that 100 developers and entrepreneurs will take part in the workshop, which will be divided into 10 teams. During the event, each of them will work out specific live case studies on financial topics. This will allow group members to get useful, practical information that can be used to develop financial services in our region.
The event will be attended by real FinTech experts:
1. Udayan Goyal , founder of Anthemis Group SA - one of the largest investment funds in FinTech - (UK). This fund invests in financial startups around the world at the seed stage. Now there are 22 iconic projects in the portfolio - incl. giants such as TheCurrencyCloud.com , an online stock exchange and currency exchange, and a social network for eToro.com traders. Udayan is considered one of the most experienced specialists in investment transactions in the direction of financial startups. There are more than 200 specialized projects in its portfolio, including Worldpay , Interswitch and Network International .
2. John Lunn , Head of PayPal Developer Network. John has been developing payment and security systems on the Internet for over 15 years. He is a consultant to many companies and startups on payment systems. An experienced developer of PHP, Java, Android. For 4 years he is responsible for all technical aspects of PayPal in Europe.
3. Mike Sigal (Mike Sigal) , founder of the Agile Credit startup in the field of financial technologies and services, aimed at solving the problem of lending to small businesses in the global market of $ 4 billion.
4. Chris Larsen (Chris Larsen) , co-founder and CEO of E-LOAN (consumer lending) and Prosper (p2p lending market). In 1999, he led E-LOAN to a successful IPO.
You can find out more information about the workshop and register for participation at the Startup AddVenture website www.venturesummit.eu
The direction of FinTech is technology related to the provision of financial services. There are two main types of products based on them. The first ones, which have been on the market for quite some time, provide software and services to financial services, that is, they use the B2B model. The latter, which have been actively developed lately, are focused on the end user, that is, B2C. The latter face an extremely ambitious task - to compete with traditional financial service providers in the struggle for a mass customer.
The range of specialization of such projects is very wide - ranging from online and mobile applications, and ending with the areas of trading, currency exchange, personal finance management.
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Financial services today are one of the most trending in the world - not only in the US, but also, for example, in Israel, where this year’s start-up market was blown up by two FinTech projects: the financial giant Citi announced the creation of the first accelerator in Israel sector, and after him the Israeli bank Leumi, together with the accelerator Elevator officially announced the opening of the FinTech Innovation Hub for financial startups. The fashion for the development of the segment came to Russia, where, for example, last year the venture fund “Life.Sreda” was created with specialization in investments in mobile and Internet projects in the financial sector.
In Ukraine, electronic payments, unfortunately, are not as well developed as in Europe and the USA. This is explained by the fact that according to the law on payment systems and transfer of funds, only banks own the right to issue electronic money in the country. In this case, the rules of the electronic money system must necessarily be coordinated with the regulator - the National Bank. Experts believe that in order to develop the market of electronic payments, it is necessary at the legislative level to allow the issuance of electronic money to a wide range of companies, not just banks, like the present.
Nevertheless, the turnover of electronic money in the country is estimated at between 250 million and several billion dollars a year. For comparison, according to estimates of J'Son & Partners, in 2012, the turnover of Russian Internet banking systems amounted to 591 billion rubles (about $ 18 billion). And by 2018, this figure, as agency analysts predict, should more than tripled. Statistics NBU shows that the turnover of electronic money is growing about 10 times a year. Therefore, despite the legislative barriers, the sphere will unambiguously develop. If only because there is not a single promoted micropayment service on the market.
It is obvious that FinTech can become one of the most promising start-up areas in the CIS. However, entrepreneurs who take the risk to master it, have to solve the difficult problem of meeting the requirements for capital of financial services, as well as other various aspects of government regulation. And, of course, access to the global level and product integration with existing services.
One of the interactive workshops that will be held at the Startup AddVenture conference (to be held in Kiev on December 4-5) will focus on solving these tasks. Its participants will explore the possibilities for projects in both B2B and consumer segments. And also they will discuss the latest trends in the development of directions, both in Europe and in the world.
The participants of the workshop, led by the world's best experts in the area of financial services, will be looking for effective marketing techniques to quickly turn a startup into a successful business. It is planned that 100 developers and entrepreneurs will take part in the workshop, which will be divided into 10 teams. During the event, each of them will work out specific live case studies on financial topics. This will allow group members to get useful, practical information that can be used to develop financial services in our region.
The event will be attended by real FinTech experts:
1. Udayan Goyal , founder of Anthemis Group SA - one of the largest investment funds in FinTech - (UK). This fund invests in financial startups around the world at the seed stage. Now there are 22 iconic projects in the portfolio - incl. giants such as TheCurrencyCloud.com , an online stock exchange and currency exchange, and a social network for eToro.com traders. Udayan is considered one of the most experienced specialists in investment transactions in the direction of financial startups. There are more than 200 specialized projects in its portfolio, including Worldpay , Interswitch and Network International .
2. John Lunn , Head of PayPal Developer Network. John has been developing payment and security systems on the Internet for over 15 years. He is a consultant to many companies and startups on payment systems. An experienced developer of PHP, Java, Android. For 4 years he is responsible for all technical aspects of PayPal in Europe.
3. Mike Sigal (Mike Sigal) , founder of the Agile Credit startup in the field of financial technologies and services, aimed at solving the problem of lending to small businesses in the global market of $ 4 billion.
4. Chris Larsen (Chris Larsen) , co-founder and CEO of E-LOAN (consumer lending) and Prosper (p2p lending market). In 1999, he led E-LOAN to a successful IPO.
You can find out more information about the workshop and register for participation at the Startup AddVenture website www.venturesummit.eu
Source: https://habr.com/ru/post/201912/
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