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The FinTech50 2015 The fifty hottest FinTechs in Europe


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The FinTech50 2015

Adyen (9) Algomi (27) BehavioSec (15) Blockchain (9) BUX (27) Byhiras (15) Calastone (28) CommuterClub (28) Credit Benchmark (16) CrowdCube (28) Currency Cloud (10) Cybertill (10) Darwinex (29) DueDil (16) Earthport (10) Ebury (29) eToro (29) ETRONIKA (23) Fidor Group (23) Five Degrees (24) FundApps (16) Funding Circle (30) GoCardless (11) Guidants (30) Holvi (24)

Insly (17) InvoiceSharing (17) Ixaris Systems (11) Klarna (11) Kreditech (17) LendInvest (30) Mambu (24) mBank with efigence (25) Merit Software (25) Nutmeg (31) OpenGamma (18) Osper (25) Parmenion Capital Partners (31) Squirrel (31) Stockomendation (32) Sybenetix (18) Symetrics (18) The Hot Ten SynerScope (19) Aire Tink (32) cfinancials TransferWise (12) ClauseMatch Derivitec Traxpay (12) Essentia Analytics Trunomi (19) Finexkap Finlytics Trustly (12) investUP WoraPay (13) SavingGlobal ( ) 13 ZooZ Sonovate


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The FinTech50 2015 panel

Pierre Suhrcke Director, Acorus Capital Santiago Tenorio Director Innovation & Payments, American Express

Roy Vella Managing Director, V2 Ltd

Nasir Zubairi Venture Partner, FinLeap Debu Purkayastha Entrepreneur in Residence, Octopus

Gareth Lodge Senior Analyst, Celent

Dave Birch Consult Hyperion Alex MacPherson Head of Ventures, Octopus

Ian Morgan Industry Director Financial Services, Google

Richard Peers Banking Industry Lead EMEA, Microsoft

Travers Clarke-Walker Managing Director EMEA, Fiserv

Christian Erlandson European Leader, Dun & Bradstreet

Chris Skinner Chairman, The Financial Services Club


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Alex McCracken Managing Director, Venture Services, Silicon Valley Bank

James Cameron Associate, Accel Partners

Nicky Cotter Co-Founder, ICON, The FinTech50 & FinTechCity

John Chaplin Chairman, Ixaris Alex Batlin Group CTO Applied Innovation (R&D) & Market Research Director, UBS

Conny Dorrestijn Shiraz Partners Jon Barrett Product Adviser, Silicon Valley Bank

Andrew Vorster Technology Foresight Consultant

James Le Brocq Adviser, Ensygnia

Eddie Harding Head of FinTech, ICON Corporate Finance

Menno Van Leeuwen Team Lead Innovation Centre, ABN AMRO

Fearghus Barkley FinTech50 Research

Julie Lake Co-Founder, The FinTech50 & FinTechCity


Anyone can have an idea, it takes vision to make it happen Now, more than ever, the world needs entrepreneurs with skill, drive and imagination – people who are ready to turn their innovative ideas into successful businesses. Every year Barclays helps entrepreneurs of all kinds realise their ambitions and create a future that’s better for everyone. We are proud of the Barclays Accelerator, powered by Techstars, helping FinTech startups fast track their businesses. Visit barclaysaccelerator.com to find out more

Barclays Bank PLC is registered in England and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP.


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The FinTech50 2015 Julie Lake and Nicky Cotter Founders, The FinTech50 Here’s a big financial forecast to begin with. According to Silicon Valley Bank research, FinTech will be one of three sectors predicted by the CBI to deliver, between them, a whopping £300bn to the UK economy by 2020. In anyone’s money, that’s a phenomenal trajectory by the sector since we launched the first FinTech50 in 2012. Back then we had just 150 FinTechs on our long-list. This year we considered just shy of 800. 2012 was the year of the ‘start-up’. In 2015, we not only saw even more potential game-changers than ever before, we are also witnessing the birth of the billion-dollar FinTechs. It is these characteristics that distinguish this year’s 50 from previous ones. In a nutshell, it’s a tale of new and ingenious technologies (of course), but also of maturity and scale – in a truly global sense. It is also very much about Europe – if, admittedly, our geographic scope owes more to Eurovision than to Google Earth. The UK dominates the list with 27 companies, but it’s now impossible to ignore the rise of FinTech cities across Europe who are emerging as powerhouses of innovation – and collaboration. FinTechs from The Netherlands, Germany and Sweden make up 30% of this year’s list. Cyprus, Finland, Ireland, Israel, Lithuania and Poland are also represented. We have grouped this year’s list into four mini sector parcels: Banking, Platforms, Payments and Big Data/ Risk. Platforms and payments predominate this year, but the 2015 50 also highlights hotspots such as analytics, insurance, microfinance, aggregation and virtual currencies. A lot of people helped us to deliver this year’s list: our partners and sponsors, our ever-collaborative global community of innovators, financial services, VC investors and global techs. And, of course, our always-insightful panel (see p4-5) who had the very tall order of reducing a long list of 800 inspirational FinTechs to the 50 who appear in this book. If you would like to get involved in our 2015 programme, we would love to hear from you. fintechcity.com


“Payments are moving from the domain of the banks to next generation platforms that can combine acquiring, processing and payment gateway services under one roof, across all channels, globally. This need is driven by the global nature of the internet and eCommerce, the need of merchants for a smooth service with maximum conversion and the desire of consumers for simplicity of transacting.� Jan Hammer, Partner, Index Ventures

Payments


9

Adyen

KEY PEOPLE

CEO & Founder: Pieter van der Does Co-Founder: Arnout Schuijff FOUNDED

2006 SECTORS

Payments HEADQUARTERS

Amsterdam, The Netherlands ON TWITTER

@Adyen ON THE WEB

adyen.com Adyen provides a single platform to accept payments anywhere in the world through any sales channel. The company enables businesses to process payments across online, mobile, and POS (Point-of-Sale) with over 250 payment methods in 187 transaction currencies. New payment methods this year include SEPA direct debit, POLi, Interac, DragonPay, and Apple Pay. Clients include Airbnb, Spotify, Groupon, Vodafone, Mango, SoundCloud, Indiegogo and KLM.

Blockchain

KEY PEOPLE

CEO & Founder: Nicolas Cary Co-Founders: Ben Reeves, Peter Smith FOUNDED

2011 SECTORS

Payments   HEADQUARTERS

London, UK ON TWITTER

@blockchain ON THE WEB

blockchain.com    

Blockchain is a Bitcoin platform and currently the provider of the world’s most popular Bitcoin wallet, the most widely used Bitcoin APIs and the most popular block explorer and search engine. It also has what is widely recognized as the strongest, most trusted brand in Bitcoin, with 2.5m users.


10

Earthport

Currency Cloud

FOUNDED

KEY PEOPLE

CEO: Mike Laven Founder: Nigel Verdon FOUNDED

2012 Payments & FX HEADQUARTERS

London, UK ON TWITTER

@currency_cloud ON THE WEB

currencycloud.com Currency Cloud is a B2B platform providing administration and control features to automate the entire payments lifecycle of businesses. The company delivers Cross-Border Payments-as-aService, providing access across a multitude of payment networks and exchange rate providers. It also provides comprehensive administration and control features and fully automates the entire payments lifecycle from compliance, pricing and beneficiary management, through execution and receipt to settlement and reporting.

1997    SECTORS

Payments

Cybertill

SECTORS

KEY PEOPLE

CEO: Hank Uberoi

KEY PEOPLE

CEO & Founder: Ian Tomlinson   FOUNDED

2001 SECTORS

Retail Payments Software HEADQUARTERS

Knowsley, UK ON TWITTER

@cybertillretail ON THE WEB

cybertill.co.uk Cybertill has developed an award-winning fully hosted multi-channel cloud-based retail software product, offering retailers a fully integrated end-to-end eCommerce, EPOS and Enterprise Supply Chain Management solution. In 2014 Cybertill teamed up with MercuryPay to bring their cloudbased POS system to the US. The company’s software is currently installed at over 4,000 locations with over 4,500 Points of Sale and 250 websites across the UK, Europe and the USA.

HEADQUARTERS

London, UK ON TWITTER

@Earthport ON THE WEB

earthport.com Earthport provide white-label crossborder payment services delivering high volumes of low value payments efficiently, cost-effectively and transparently. In December 2014 it announced a global partnership with Ripple to offer real-time international payments capability, (Ripple is the open-source payments protocol for free and instant exchange of any form of money or value). Earthport’s clients include two of the top five banks globally and four of the top 20 US banks including Bank of America Merrill Lynch, Western Union and HSBC.


11

Ixaris Systems

KEY PEOPLE

CEO & Founder: Alex Mifsud Co-Founders: William Lorenz, Damon Hart FOUNDED

2002

GoCardless

KEY PEOPLE

CEO & Founder: Hiroki Takeuchi Co-Founder: Matt Robinson

SECTORS

Payments HEADQUARTERS

ON TWITTER

@ixaris

FOUNDED

2011 SECTORS

Payments HEADQUARTERS

London, UK ON TWITTER

@GoCardless ON THE WEB

gocardless.com GoCardless is a UK-based service that allows smaller merchants to easily set up interbank transfers for customers. The company makes collecting by Direct Debit easy for everyone, from one-man bands to multi-nationals throughout Europe. Clients include, Crowdcube, Funding Circle and The Guardian.

London, UK

ON THE WEB

ixaris.com    

Klarna

KEY PEOPLE

 CEO & Founder: Sebastian Siemiatkowski                        Co-Founders: Niklas Adalberth, Victor Jacobsson FOUNDED

2005 SECTORS

Payments HEADQUARTERS

Stockholm, Sweden ON TWITTER

Ixaris offer a range of co-branded payment applications that enable enterprises and financial institutions to capitalise on the growing market for prepaid payment solutions. Its payment applications provide access to electronic payments for consumers unwilling or unable to access credit card services.

@Klarna ON THE WEB

klarna.com Klarna is one of Europe’s leading providers of payment solutions for eCommerce. The company separates buying from paying, allowing buyers to pay for ordered goods after receiving them. At the same time, Klarna assumes all credit and fraud risk for e-stores so that sellers can rest assured that they will always receive their money. The company is in 16 countries and used by over 45,000 merchants. Clients include ASOS and Marks & Spencer.


12

Traxpay TransferWise

FOUNDED

2010 SECTORS

FX HEADQUARTERS

London, UK ON TWITTER

@TransferWise ON THE WEB

transferwise.com TransferWise lets expats, foreign students and businesses move money globally. During the last 12 months the company has introduced new mobile platforms, including iOS 8 (iPhone +iPad) and Android. The business also rebranded, redesigned their payment flow and launched their first national TV campaign. The company has been valued at close to $1bn.

KEY PEOPLE

CEO: John Bruggeman        FOUNDED

2012

KEY PEOPLE

CEO & Founder: Kristo Käärmann Co-Founder: Taavet Hinrikus

SECTORS

Payments HEADQUARTERS

Frankfurt, Germany ON TWITTER

@Traxpay ON THE WEB

traxpay.com   Traxpay’s platform allows businesses in a supply chain, to make payments to each other. The platform combines secure, flexible, real-time 24/7/365 electronic payments with any and all structured and unstructured data related to the transaction. Strategic relationships and investments include Commerzbank, MasterCard, and Software AG. In the last 12 months, Traxpay has expanded into the US market.

Trustly

KEY PEOPLE

CEO & Founder: Carl Wilsson                              Co-Founders: Joel Jacobsson, Lukas Gratte FOUNDED

2008 SECTORS

Payments HEADQUARTERS

Stockholm, Sweden ON TWITTER

@trustlyEN ON THE WEB

trustly.com   Trustly is an online PSP (paymentsservices-provider) offering both B2C and C2C payments. Its payment methods were created for mobile devices and offer crossborder payment functionality, which makes the platform well suited for international eCommerce on mobile and tablet devices. The company covers 57 banks, serving over 67m customers.


13

WoraPay

KEY PEOPLE

CEO & Founder: Aurimas Bakas Co-Founders: Vaidas Adomauskas, Nerijus Celkonas FOUNDED

2012 SECTORS

Payments

ZooZ

HEADQUARTERS

Vilnius, Lithuania ON TWITTER

@WoraPay

FOUNDED

ON THE WEB

worapay.com  

WoraPay is a mobile payments platform for mWallets that enables payment for goods and services. The company is used by a number of financial institutions and mobile wallets to provide seamless payment solutions in restaurants, petrol stations, taxis, entertainment arenas, tickets and coupons, donations and account top-ups. The company is integrated with the largest Horeca POS cashier system in the Eastern Europe, which is operational at over 35,000 locations.

KEY PEOPLE

CEO & Founder: Oren Levy Co-Founders: Eyal Kotler, Ronen Morecki

2010 SECTORS

Payments HEADQUARTERS

Kfar Saba, Israel ON TWITTER

@ZooZpayments ON THE WEB

zooz.com ZooZ offers a secure, and easyto-use payment solution for eCommerce websites and mobile apps. The company provides retailers with a set of tools that enables them to increase shopping conversion rates, reduce shopping cart abandonment and grow their businesses based on smart consumer insights generated by the platform. 2014 saw the company partner with AliPay, China’s popular online-payment service. Clients include IKEA and Groupon.


“We expect to see more and more collaboration between start-ups and financial institutions, as the ‘disruptive’ ideas coming from outside the financial world hit diminishing returns. Start-ups and Banks will need to work together to share talent, expertise, distribution and traction to create viable innovation.” Mariano Belinky, Managing Director, Santander Innoventures

Big data, business intelligence & analytics


15

BehavioSec

KEY PEOPLE

CEO: Neil Costigan Co-Founders: Olov Renberg, Kristofer Nygren, Hans Peterson FOUNDED

2007 SECTORS

Biometrics, Security HEADQUARTERS

Lulea, Sweden ON TWITTER

@behaviosec ON THE WEB

Byhiras

behaviosec.com BehavioSec uses behavioural biometrics to verify identity, measuring typing speed, pressure, mouse movements and voice patterns for authentication purposes. BehavioSec will flag up any unauthorised access to any mobile devices or computer. Clients include the sci-fi military research organisation DARPA and a number of high-profile financial institutions.

KEY PEOPLE

CEO & Founder: SAM Lusty FOUNDED

2011 SECTORS

Buy-side HEADQUARTERS

London, UK ON THE WEB

byhiras.com Byhiras is an innovative solution to enable institutional investors better to manage the entire life-cycle of their allocations and investments and to comply with increasingly stringent governance and regulatory reporting requirements. Byhiras has developed highly scalable technology which also provides a range of risk and performance analytics. Through Byhiras, buyside institutions, their employees, suppliers and clients are able to collaborate on investments in a secure environment.


16

Credit Benchmark

KEY PEOPLE

CEO: Elly Hardwick Founders: Donal Smith, Mark Faulkner FOUNDED

2012

DueDil

SECTORS

Finance, Banking, Credit Risk, Capital Markets, Risk Management

HEADQUARTERS

London, UK

@CreditBenchMark

2011

Credit Benchmark is increasing transparency in the financial markets by creating a totally new information resource. The company pool forward-looking estimates of the creditworthiness of sovereigns, banks, corporates and funds produced by the world’s largest financial institutions, unlocking an untapped but immensely valuable data source in a highly scalable way.

Big Data HEADQUARTERS

London, UK ON TWITTER

@duedil

KEY PEOPLE

CEO & Founder: Andrew White FOUNDED

2010 SECTORS

Compliance, Asset Management, Hedge Funds

SECTORS

ON THE WEB

creditbenchmark.org

KEY PEOPLE

CEO & Founder: Damian Kimmelman FOUNDED

ON TWITTER

FundApps

HEADQUARTERS

London, UK ON TWITTER

@FundApps ON THE WEB

fundapps.co

ON THE WEB

duedil.com DueDil aggregates public data on companies from a variety of databases, then uses it to create new metrics to indicate how solvent or successful the business is. It is the largest source of free private company information in the UK and Ireland. DueDil data powered the new Investec Mid-market Index of 24,000 mid-sized UK companies.

FundApps and its flagship product, Rapptr, provide pre-trade and post-trade compliance to the investment fund industry. Rapptr is a cloud-based compliance engine with a web front end for monitoring UCITS, contractual restrictions, internal guidelines as well as major shareholdings, short selling and takeover rules in 82 jurisdictions globally. Clients include some of the world’s largest investment banks, asset managers, hedge funds and institutional investors.


17

Kreditech

KEY PEOPLE

CEO & Founder: Sebastian Diemer Co-Founder: Alexander Graubner-Müller FOUNDED

InvoiceSharing

Insly

CEO & Founder: Risto Rossar Co-Founder: Ando Kivilaid

2014 SECTORS

Insurance Software HEADQUARTERS

London, UK ON TWITTER

@insly_com ON THE WEB

insly.com Insly is a spin-off from IIZI Group – the most successful insurance broker group in the CEE region. The company creates standardised insurance industry tools and models that make buying and selling insurance simpler and more profitable. Its cloud-based software enables clients to manage sales from start to finish and administer all insurance policies. Clients include Volvo, AON, Dansk Bank and LHV Bank. The company hail from Tallinn, Estonia.

KEY PEOPLE

CEO & Founder: Jeroen Volk Co-Founder: Vincent Prooij   FOUNDED

2013

KEY PEOPLE

FOUNDED

SECTORS

Office Operations HEADQUARTERS

Rotterdam, The Netherlands ON TWITTER

@InvoiceSharing ON THE WEB

invoicesharing.com InvoiceSharing is a financial services marketplace which enables 100% free electronic invoicing. After the company raised funding in 2013 they went freemium – offering free digital invoicing to all suppliers. InvoiceSharing earn money when they provide additional services to purchasing departments. Premium ‘add-ons’ include, invoice financing, online payments and advanced reporting, as well as the ability to connect with all accounting and ERP systems.

2012 SECTORS

Big Data, Information, Banking, Analytics HEADQUARTERS

Hamburg, Germany ON TWITTER

@Kreditech ON THE WEB

kreditech.com Kreditech is a Big Data finance company based on automated Big Data and machine learning credit scoring. The company extends loans to individuals in real-time, using a fully automated credit scoring system and banking backend infrastructure. It operates independently from credit bureaus and traditional banking infrastructure. In just 20 months, Kreditech has scored more than 1.5m individual loans. The company is at the forefront of the rapidly changing consumer finance market. Using 15,000 dynamic data points, its technology is capable of scoring everyone worldwide, including the 4bn individuals without a credit score. Funds can be paid out within seconds to a credit card, bank account or NFC wallet, 24/7. 


18

Sybenetix (formerly Investment Intelligence)

OpenGamma

KEY PEOPLE

CEO & Founder: Mas Nakachi Co-Founder: Kirk Wylie FOUNDED

2009 SECTORS

Risk Management, Analytics HEADQUARTERS

London, UK ON TWITTER

@OpenGamma ON THE WEB

opengamma.com OpenGamma develops financial analytics and risk management software for the financial services industry. Due to global regulatory overhaul (Dodd-Frank, EMIR), the need for standardised risk analytics and margin calculations will continue to grow, as firms look to reduce internal IT costs and optimise their use of capital. Clients include banks and four of the five largest clearing houses in the world.

KEY PEOPLE

CEO & Founder: Taras Chaban Co-Founder: Wendy Jephson FOUNDED

Symetrics

2011 SECTORS

FOUNDED

2012

Enterprise Behavioural Analytics HEADQUARTERS

SECTORS

London, UK ON TWITTER

@sybenetix ON THE WEB

sybenetix.com Sybenetix’s Enterprise Behavioural Analytics platform is used by leading hedge funds, banks and asset managers to systematically improve investment performance and “conduct management”. Behaviour profiling algorithms and real-time decision support tools, enable investment professionals to improve success rates, capital allocation, stock selection and timing. The platform is also used by compliance professionals to automatically analyse all trades and flag up any suspicious activities based on unusual behaviour – and enable immediate investigation.  Financial institutions use Sybenetix to measure and manage skills, counter behavioural biases and poor conduct, to transform standards of performance and reputation management.

KEY PEOPLE

CEO & Founder: Martijn van Eck

Risk Management Software HEADQUARTERS

Breukelen, The Netherlands ON TWITTER

@SyTwits ON THE WEB

symetrics.eu Symetrics’ flagship product, SyMath, provides institutional investors with SaaS based risk management software. SyMath can stress-test investment portfolios using real-world economic scenarios, protect portfolios for future risks, measure the effects of adverse shocks on ROI and simulate human investment behaviour. Symetrics also aims to provide its technology to individual investors to enable them to manage their own portfolio and assess their risk profile independently.


19

SynerScope

KEY PEOPLE

CEO & Founder: Jan-Kees Buenen Co-Founder: Danny Holten FOUNDED

2011 SECTORS

Big Data, Analytics

Trunomi

HEADQUARTERS

Eindhoven, The Netherlands

ON TWITTER

@synerscope

FOUNDED

2013

ON THE WEB

synerscope.com SynerScope is a leading provider of enterprise business analytics products focusing on Big Data and Business Intelligence for the banking and insurance industries. Its technology is currently being used in Claim Analytics by a number of large insurance companies, providing them with improved insight into pricing, risk calculations and operational processing. SynerScope has partnerships with major companies, including SAP, Accenture, CGI Logica, IBM, Dell, NVidia, and VCE (an EMC/Cisco/ VMware JV).

KEY PEOPLE

CEO & Founder: Stuart Lacey

SECTORS

Data, Online Identity Management, Security HEADQUARTERS

Dublin, Ireland ON TWITTER

@trunomi ON THE WEB

trunomi.com Trunomi’s platform helps banks’ on-board customers five times faster and at 20 per cent of the cost of today’s manual process. It simplifies KYC (Know Your Customer) capture and review, allowing organisations to quickly conduct due diligence and create shareable digitised KYC datasets for each customer, with a full audit trail.


On the map The 2015 50 by location

Knowsley GBR (1)

 Llandudno GBR (1)

Dublin IRE (2)

 Amsterdam NLD (2)

Bristol GBR (1)

 Exeter GBR (1)

Rotterdam NLD (1)

 Eindhoven NLD (1)

London GBR (22)

 

Breukelen NLD (2)

 Frankfurt DEU (1)

   

Payments Big data, business intelligence & analytics Banking & Finance Platforms


Lulea SWE (1)

Stockholm SWE (3)

 Helsinki FIN (1)

Tallinn EST (1)

Hamburg DEU (1)

 Vilnius LTU (2)

 Berlin DEU (1)

Lodz POL (1)

  Munich DEU (2)

Limassol CYP (1)

 Kfar Saba ISR (1)


“At the moment, FinTech innovation is a ‘white hot’ space. Established and emerging players are transforming the industry, increasingly designing products and services around the evolving behaviours and needs of customers and clients. One of the key accelerants driving this is the open innovation between large scale commercial entities and start-ups.” Derek White, Chief Design and Digital Officer, Barclays

Banking & financial


23

ETRONIKA

KEY PEOPLE

CEO & Founder: K stutis Gardžiulis Co-Founder: Jonas Šulcas FOUNDED

2000   SECTORS

Banking HEADQUARTERS

Vilnius, Lithuania ON TWITTER

@EtronikaTweets ON THE WEB

etronika.com

Fidor Group

KEY PEOPLE

CEO & Founder: Matthias Kroner FOUNDED

2009 SECTORS

Banking HEADQUARTERS

Munich, Germany ON TWITTER

ETRONIKA develops solutions for finance and online businesses, helping financial institutions to serve both retail and corporate customers better. Their e-banking solutions combine banking and retail, personalisation and loyalty, enabling banks to transform their service offerings from being designed to fit the average customer profile to serving a personalised one. The service is available on multiple channels making the bank accessible anytime, anywhere.

@ficoba ON THE WEB

fidor.de Fidor is an online bank with a full banking licence in Germany, offering mainstream retail and corporate banking products. Their online platform includes virtual currencies trading, social media banking, Facebook and Twitter payments. Available in Germany, Fidor has expanded into the US, UK and Russia. 2014 also saw the company integrate with the Ripple payment network (Ripple is the open-source payments protocol for free and instant exchange of any form of money or value).


24

Five Degrees

KEY PEOPLE

CEO & Founder: Martijn Hohmann Co-Founder: Bjorn Holmthorsson FOUNDED

2009 SECTORS

Banking HEADQUARTERS

Breukelen, The Netherlands ON TWITTER

@fivedegrees ON THE WEB

fivedegrees.nl  

Holvi

KEY PEOPLE

CEO: Johan Lorenzen Founders: Tuomas Toivonen, Teemu Hukkanen, Kristoffer Lawson

2011

FOUNDED

HEADQUARTERS

Helsinki, Finland

@Holvi

2011 SECTORS

SECTORS

Banking

KEY PEOPLE

CEO & Founder: Eugene Danilkis                        Co-Founders: Frederik Pfisterer, Sofia Nunes

FOUNDED

ON TWITTER

Five Degrees has developed a next generation core banking software platform designed for existing banks as well as new ones. The company provides a fully automated banking services hub supporting any segment, product or channel through a rich middleoffice environment, connected to any (legacy) back-office of choice. Matrix, (the company’s proprietary technology) offers an agile customer centric architecture that supports banking operations in a future proof manner, significantly lowering cost whilst enhancing agility in the banking environment. Matrix is a proven fully automated (STP) core business process management (BPM) banking solution ready for SaaS and (private) cloud setups.

Mambu

Banking, Microfinance HEADQUARTERS

Berlin, Germany ON TWITTER

@Mambu_com ON THE WEB

mambu.com

ON THE WEB

holvi.com Holvi replaces traditional bank accounts with a Pan-European alternative, unlike traditional banks that are tied to a single country. Holvi completely replaces bank accounts with a service that offers a smart checking account.  Full bank payments can be made, both in and out, and all accounts have International Bank Account Numbers (IBAN) that enable seamless banking across Europe.  The company has customers in 8 European countries.

Mambu helps banks, microfinance institutions, financial innovators and digital banking disrupters to reach the world’s 3bn unbanked. The company enables customers to deliver essential loan and deposit products to individuals and emerging enterprises around the world. In 2014, the company enhanced its core platform to provide end-to-end digital loan origination and scoring.


25

mBank with Efigence

KEY PEOPLE

CEO: Michał Panowicz FOUNDED

2000 SECTORS

Banking HEADQUARTERS

Lodz, Poland ON TWITTER

@mBankpl / @Efigence ON THE WEB

mbank.pl / efigence.com

mBank is the first established European bank to undergo a comprehensive, mass-scale, Bank 3.0 revolution of its direct channels including modern UI/ UX of transactional banking, PFM, video banking, transactional, realtime marketing, social channels, gamification and mobile banking and is the leader of e-banking in Poland. Part of BRE Bank (owned by Commerzbank) it is currently the 3rd largest retail bank in Poland in terms of number of customers. The company also operates in the Czech Republic and Slovakia.

Merit Software

1998 SECTORS

Banking BPM Software HEADQUARTERS

Dublin, Ireland ON TWITTER

KEY PEOPLE

CEO & Founder: Kerril Burke Co-Founder: Paul Burke FOUNDED

Osper

@meritsoftware ON THE WEB

merit-soft.com Merit Software is the industry leader in investment banking and broking operations’ receivables and payables processing and case management. Merit has recently developed a centralised matching platform (“The Utility”) with a transactional-based business model and the ability to automate these processes on an industry-wide basis. In 2014 the company agreed an exclusive partnership agreement with one the world’s largest clearing houses for the global distribution of The Utility.

KEY PEOPLE

CEO & Founder: Alick Varma FOUNDED

2012 SECTORS

Children’s Banking HEADQUARTERS

London, UK ON TWITTER

@osper ON THE WEB

osper.com Osper offers a safe MasterCard prepaid debit card with a simple mobile banking app with separate logins for young people and parents. All money on Osper is managed by a European regulated bank and its mobile banking app creates visibility for parents and children on spending in real time.


“The concept of finance platforms will evolve in 2015 from the ‘supermarket’ model to an experience that is much simpler and more personalised to the individual. The key challenge will be building trust from clients that you as a business are ‘on their side’.” Rob Moffat, Principal, Balderton Capital

Platforms


27

Algomi

KEY PEOPLE

CEO & Founder: Stu Taylor Co-Founder: Usman Khan FOUNDED

2012

BUX

SECTORS

Big Data, Bond Trading HEADQUARTERS

London, UK

ON TWITTER

@Algomi_Ltd

FOUNDED

2013

ON THE WEB

algomi.com Algomi combines Big Data with social networking to suggest trade opportunities between investors and banks transacting multi-million dollar financial trades. The company’s flagship product “Honeycomb” connects clients including professional bond investors with the Big Data repositories that Algomi installs inside global banks. With existing offices in London and New York, Algomi plans expansion in Asia. 

KEY PEOPLE

CEO & Founder: Nick Bortot Co-Founders: Robbert Bos, Joost van de Wijgerd, Egbert Pronk

SECTORS

Trading Gamification HEADQUARTERS

Amsterdam, The Netherlands ON TWITTER

@BUX_NL ON THE WEB

getbux.com

BUX turns trading on the stock market into a game. The company’s mobile trading app bridges the gap between casual gaming apps and traditional trading platforms. Users can start for free trading with funBUX, then play with real money via seriousBUX. Traders can compete against each other in BUXbattles and track the success of other users. BUXbattles are timed contests to see who can make the best returns. The company launched in the UK and The Netherlands and it plans to expand in Germany, France and Italy.


28

Crowdcube

Calastone

CEO: Julien Hammerson Founders: Ian Taylor, Philip Goffin FOUNDED

2007 SECTORS

Trading HEADQUARTERS

London, UK ON TWITTER

KEY PEOPLE

@CalastoneLtd ON THE WEB

calastone.com Calastone helps fund managers, providers and fund administrators by automating funds processing. The company has replaced the expensive and cumbersome pointto point approach to industry connectivity, with a single oneto-many alternative connectivity network, that enables the industry to reduce the cost of electronic transactions by 60%. In 2014 Calastone introduced a new structured products service in collaboration with Novia and Investec.

CommuterClub

KEY PEOPLE

CEO & Founder: Petko Plachkov Co-Founder: Imran Gulamhuseinwala FOUNDED

2013 SECTORS

Lending, Payments HEADQUARTERS

London, UK ON TWITTER

@CommuterclubUK ON THE WEB

commuterclub.co.uk CommuterClub offers low-cost loans to customers, allowing them access to the big discounts offered by season tickets or annual travelcards. For example an Oyster Card for the London Underground, can be 30 per cent cheaper than weekly or monthly travelcards. Customers get the savings but pay for them via a monthly instalment plan. The lender operates in partnership with the P2P site, Ratesetter, who provide the low interest rates.

KEY PEOPLE

CEO & Founder: Darren Westlake Co-Founder: Luke Lang FOUNDED

2010 SECTORS

Equity Crowdfunding HEADQUARTERS

Exeter, UK ON TWITTER

@Crowdcube ON THE WEB

crowdcube.com Crowdcube is one of the UK’s most successful investment crowdfunding platforms, having raised more than £50m for over 180 businesses from a 125,000-strong crowd of registered investors. 2014 saw the successful launch of Crowdcube Mini-Bonds and the Crowdcube Venture Fund, Crowdcube is the only crowdfunding platform and the largest partner to be appointed to the Government-backed London Co-Investment Fund.


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eToro

Ebury

KEY PEOPLE

CEO & Founder: Salvador Garcia Co-Founder: Juan Lobato FOUNDED

2009 SECTORS

Darwinex

KEY PEOPLE

CEO & Founder: Juan Colón Co-Founder: Javier Colón FOUNDED

2012 SECTORS

Trading, Brokerage, Asset Management, Hedge Fund HEADQUARTERS

London, UK ON TWITTER

@Darwinexchange ON THE WEB

darwinex.com Darwinex (formerly TradeSlide) is a social trading broker and asset manager. Its trading platform has a tool that dissects a trader’s strategy and rates it according to its risk, scalability, performance and experience. This allows other investors to view the risks involved with a particular trading strategy. Plans for 2015 include a Hong Kong office to cater to the needs of their growing Asian customer base.

FX, Lending, Currency Forecasting HEADQUARTERS

London, UK ON TWITTER

@EburyUK ON THE WEB

ebury.com Ebury enables small and mediumsized businesses transact and trade internationally. Companies can finance their imports, make and receive payments in foreign currencies and hedge currency risk in more than 120 currencies. In 2014 the company lent more than £1m to UK SMEs, growing the client base over 100% month on month. On the currency side, they reached over £5bn in foreign exchange transaction volume.

KEY PEOPLE

CEO & Founder: Yoni Assia Co-Founder: Ronen Assia FOUNDED

2007 SECTORS

Social Trading HEADQUARTERS

Limassol, Cyprus ON TWITTER

@eToro ON THE WEB

etoro.com eToro is the world’s largest social trading and investment network, offering traders easy access to the currency, commodity and equity markets. In 2014 the company launched their mobile app for traders on-the-go, offering over 200 plus stocks including all of the FTSE stocks. Plans for 2015 include the launch of a brand new platform which the business believes will be a game changer.


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Guidants Funding Circle

KEY PEOPLE

CEOs & Founders: Robert Abend, Thomas Waibel FOUNDED

KEY PEOPLE

CEO & Founder: Samir Desai Co-Founders: James Meekings, Andrew Mullinger FOUNDED

2009 SECTORS

Debt Crowdfunding HEADQUARTERS

London, UK ON TWITTER

@FundingCircle ON THE WEB

fundingcircle.com Funding Circle was created with a big idea: to revolutionise the outdated banking system and secure a better deal for everyone. The investors on the platform have since lent more than £300m to over 5,000 SMEs. 2014 saw expansion in the US, the appointment of Wall Street heavyweight Robert K Steel (former deputy to New York mayor Michael Bloomberg) and a landmark tie-up with Santander, the first high-street bank to refer its customers to an online P2P lender. The British Business Bank, 11 councils, a university and financial institutions are all lending to businesses via the platform.

2012 SECTORS

Trading HEADQUARTERS

Munich, Germany ON TWITTER

@guidants   ON THE WEB

guidants.com Guidants enables investors and traders to monitor, analyse and discuss the financial markets, free of charge. The company enables users to select market data in the form of over 30 widgets. Each widget has one task such as displaying a chart, or giving direct access to a broker. The user can modify each widget according to their needs (size, content, appearance) to compile their personal market overview.   Clients and partners include, Deutsche Bank, Commerzbank, DZ Bank, UBS, RBS, HSBC, ING Markets, Goldman Sachs, BNP Paribas, Yahoo, CMC Markets.

LendInvest

KEY PEOPLE

CEO & Founder: Christian Faes Co-Founder: Ian Thomas FOUNDED

2013 SECTORS

Crowdfunding   HEADQUARTERS

London, UK ON TWITTER

@LendInvest ON THE WEB

lendinvest.com LendInvest is a P2P lending platform for residential and commercial mortgages. It offers a crowdsourcing alternative to bank-backed mortgages. In 2014 the company was featured on the front page of the FT for completing the world’s largest peer-to-peer loan of £4.23m. LendInvest has completed over £100m of investment in mortgages through its platform.


31

Nutmeg

KEY PEOPLE

CEO: Lee Cowles Founders: Nick Hungerford, William Todd FOUNDED

2010 SECTORS

PFM, Consumer Finance HEADQUARTERS

Parmenion Capital Partners

London, UK ON TWITTER

@thenutmegteam ON THE WEB

nutmeg.co.uk Nutmeg offers portfolio management services to anyone with as little as £1,000 to invest and has over 35,000 registered users. Customer acquisition in 2014 put Nutmeg in the top 25 of wealth managers in the UK, where the market is worth £500bn. The business is targeting 100,000 customers by Q2 2015. Nutmeg puts together portfolios to match customers’ attitude to risk. The underlying funds are “passive” index trackers. The lower-risk fund baskets have more of their money in bond funds, while the higher-risk options favour share-based funds.

KEY PEOPLE

CEO & Founder: Richard Mein FOUNDED

2006 SECTORS

Investment Management Services HEADQUARTERS

Bristol, UK ON TWITTER

Squirrel

@parmenionuk

KEY PEOPLE

CEOs & Founders: Mutaz Qubbaj, Emanuel Andjelic FOUNDED

ON THE WEB

parmenion.co.uk

2014

Parmenion has developed the UK’s first automated online discretionary investment management services platform. Parmenion’s online CIP (Centralised Investment Proposition) enables IFAs to spend less time on administration and more time with clients, providing an efficient, costeffective service which has been recognised nationally through numerous adviser-voted awards, including Defaqto’s 5 Star DFM (Managed Portfolio Service) 2014. Parmenion is the only UK platform to hold discretionary management (managing investments) permission from the FCA.

PFM, Employee Benefits

SECTORS

HEADQUARTERS

London, UK ON TWITTER

@asksquirrel ON THE WEB

squirrel.me Squirrel is a technology platform offering digital PFM (personal financial management) tools.  Squirrel’s aim is to help people to fix their finances, foster financial freedom and end the need for costly credit cards. The company partners with employers to provide simple and intuitive tools to help their employees save, budget and manage their bills directly from their payroll, thereby helping staff avoid the payday loan and overdraft markets.


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Stockomendation

KEY PEOPLE

CEO & Founder: Paul Roberts FOUNDED

2013 SECTORS

Financial Markets, Platforms, Trading, BI HEADQUARTERS

Llandudno, UK

Tink

ON TWITTER

@Stockomendation ON THE WEB

stockomendation.com Stockomendation is a stock-tip aggregation and comparison site. The company aggregates, compares and performance-monitors stock tips from newspapers, investment magazines, financial websites, blogs and newsletters, creating a ranking of success and failure. The platform creates accountability and facilitates trust with access to tipster track records, helping retail investors, invest on the basis of a proven record of achievement. The platform also allows institutions, financial platforms and online brokers to deliver exciting stock tip content to encourage trading. In 2014 the company appointed Nick Ogden, founder and CEO of WorldPay, as Chairman.

KEY PEOPLE

CEO & Founder: Daniel Kjellén            Co-Founder: Fredrik Hedberg FOUNDED

2012 SECTORS

PFM HEADQUARTERS

Stockholm, Sweden ON TWITTER

@tink ON THE WEB

tinkapp.com  

Tink is a mobile app that continuously collects, sorts and analyses multiple data points about a user’s personal finances and delivers it in a clean and simple timeline. The aim is to show exactly where a user’s money is going and how better to manage their money. The company has over 200,000 users in Sweden, making it the largest third party personal finance app in Sweden. 2015 plans include European expansion.


Derivitec provide cloud-based portfolio risk analytics, for derivatives practitioners. The service is on-demand payas-you go, allowing clients to scale their analytics costs with their needs. Clients include small Hedge Funds and mini prime brokerage firms. The company was established by a trio of senior technologists and equity strategists from Goldman Sachs, UBS and Schroders. derivitec.com Essentia Analytics helps Hedge Fund managers continuously improve their performance. The company’s software applies behavioural finance principles and advanced analytics to trade, market and biometric data, and feeds it back to the fund manager in the form of actionable, personal insights. This enables them to improve their investment skills. The company is based in the UK with offices in NYC. essentia-analytics.com

The Hot Ten (our additional ones to watch in 2015) This year our panel looked at 800 FinTech companies across Europe, which made selecting just 50 a very tall order. To say that this year’s list was hotly contested would not do justice to the debate. But if selecting fifty was a tough call, we did all agree that these ten highly enterprising innovators deserved a special mention. Meet our Hot Ten: Aire is aiming to change the way people are assessed on their credit score. Current credit models depend on past repayment patterns to calculate credit scores. Any missing credit history and your score drops. New borrowers like students, migrants & expats can be rejected for credit because they have a “thin-file”. Aire’s credit scoring algorithm looks at deeper datadriven analysis to generate a score based on educational background, professional history and knowledge and understanding of financial risk. aire.io TIPERsm, by cfinancials.com, is a unique security indicator on 16 million financial products, which offers a real-time & objective assessment on the quality of any financial product in the world. TIPERsm also ensures that the financial industry will meet 100% of the requirements set out by MiFID II and is currently the only solution of its kind which can help the industry to be fully compliant with the regulation. cfinancials.com ClauseMatch is a cloud-based contracts management system for trading agreements in commodities and financial markets. The company’s system makes it easier to negotiate and conclude master agreements, thus improving the liquidity for OTC commodities and derivatives trading. clausematch.com

Finlytics has developed a platform to help funds and investment institutions carry out some of their middle office functions more efficiently, including post-trade reporting functions, control and analytics. The company’s platform not only transforms and controls the post-trade function, but it enables drastically reduced costs. Initially the company was established in 2006 as a joint venture with ABN Amro, but has since become independent. finlytics.com Finexkap is a web-based marketplace providing a web solution to short-term capital funding. Bringing together SMEs and qualified investors, the company offers a short-term, flexible and paperless funding solution. In just a few clicks, SMEs can sell their receivables and gain access to short-term funding with competitive advantages compared to factoring solutions. finexkap.com investUP is a debt and equity aggregator allowing investors to invest directly into crowdfunding opportunities. UP integrates the debt and equity markets enabling investors to have one free go-to point of access to the crowdfunding world. The platform allows users to manage all their crowdfunding investments on the UP platform. investup.co SavingGlobal, with its German brand “WeltSparen”, provides a retail deposit brokerage platform, connecting savers with the best deposit products from international banks via an online platform. The team, who all hail from the financial services team at McKinsey, felt that if various banks offer different interest rates on deposits that all fall under the same EU-wide deposit insurance scheme, why not create a platform that would allow savers to seamlessly access these rates from the comfort of their browsers. weltsparen.de Sonovate combines industry leading finance and back-office into an intuitive, simple to use cloud-based application. Designed exclusively for the recruitment industry, the company provides the finance needed to run contractors, with a bespoke technology platform offering office admin tools, such as payroll, invoicing and a host of real-time reports ranging from financial forecasting through to timesheets. sonovate.com


Kemp Little FinTech: Solving technology law issues whilst they’re still in beta_ www.kemplittle.com/fintech.html FinTech@kemplittle.com

Kingston Smith – understanding FinTech Tom Moore and Jon Dawson, Kingston Smith For the last 90 years Kingston Smith has provided expert accountancy and business advice to start-ups through to multinationals. Today, we continue to help our clients achieve their objectives. We work with a variety of businesses across the FinTech sector including payment facilitators, data consultants, platform developers and software providers. We understand that FinTech companies are different to the average technology business as they also face scrutiny from the Financial Conduct Authority (FCA), who authorise and regulate some of their activities. Finding a trusted adviser who can assist throughout the whole business life-cycle, as well as on regulatory issues, is vital for the success of any FinTech company with plans for the fast growth we see in the sector.

At Kingston Smith, we have a dedicated team of FinTech accountants and advisers; our experience in both the technology and financial services sectors means we can advise our clients on all elements of their business operations. Offering a full spectrum of advice; from FCA PMS 279 PMS 368 PMS 151 PMS 2587 regulatory compliance and advisory and internal audit, through to core audit, corporate finance, accounting and tax work; we are trusted advisers who help our clients succeed, by understanding their business aims and objectives.   We have alsoPMSbuilt a strongPMSreputation in FinTechPMS 191 637 GREEN PMS the 396 market for our tax planning services. We advise clients on how to operate tax efficiently and get the most value from their business; ways in which business owners might incentivise key staff, such as Enterprise Management Incentives and alternative share schemes; advise on and implement schemes to ensure companies are attractive to external investors, such as EIS/SEIS; and ensure other valuable tax reliefs, such as Research & Development, are not overlooked.   Our international ties also provide a unique offering in the marketplace, enabling our clients to plan for the move to multinational and global status; whether it is in the US, Europe, India, South America or elsewhere, Kingston Smith are fully equipped to provide expert advisory services in over 70 countries. kingstonsmith.co.uk

@kingstonsmith


35 Surely it has never been easier to raise investment for FinTech? Well maybe. We are seeing plenty of seed money – £250k to £1m, plenty of Series B – £5m plus, but the big ugly void is in the post-seed investment – the ‘A’ round investors – £1m to £5m.

Smashing through the Series A Alan Bristow and Eddie Harding, ICON Corporate Finance FinTech, FinTech, FinTech, what used to exist before FinTech? The truth is it has always existed – now, however, it has truly arrived and is having an impact few would have envisaged a few years ago. A heady cocktail of slow moving traditional incumbents, new innovators and disrupters, large markets to go after, innovators winning with scale, smart people, smart technologies, rejection of the status quo, the march of the entrepreneurs, need for transparency, power to the customer, failure of the incumbents to innovate, failure of credit markets and, and, and… all rocket fuelled by digital connectivity and an easy to plug into global infrastructure, sending the traditional barriers to entry tumbling. The success of Monitise, Funding Circle, TransferWise, Currency Cloud, Zopa, Fidor, Klarna, iwoca, Five Degrees, eToro, DueDil, Crowdcube, Parmenion, SynerScope and many others across the FinTech landscape, has caught the mood of investors with high rewards for those brave enough to take the early bets. There’s a lot of talk about all the money available for FinTech, and London’s position at the epicentre of international financial markets makes it the natural draw for early stage FinTech entrepreneurs and investors. We have seen the rebirth of specialist FinTech VC funds, accelerators, incubators, startup camps, high net worths, corporate seed funds, family offices, plus a significant number of new institutional funds emerging across Europe dedicated to FinTech. Many of the major US funds are also in London looking for the European gems.

The life of an early-stage company remains a race to get to the next lump of cash and, without paying customers, a seed investment does not last long – 10 to 15 months. For the entrepreneurs it is an absolute race against time. In that very short runway the seed funds need to get the fledging business to real demonstrable progress – fast – otherwise the Series A will be as elusive as a unicorn in the forest. Investors are happy to punt some small amounts of cash on the seed to try and prove a model and back an inspired entrepreneur, but then the ‘A’ round investors want hard evidence as the quantum of funds gets larger and the bets bigger. So what are the key points to smashing through the ‘A’ round and getting on that pathway to the big funds and major investors? Here’s what ICON sees as the five winning features to securing that ‘A’ round: 1. The entrepreneur – leadership, inspiration, vision, clarity – making things happen out of nothing and inspiring people to come along with you, from leading influencers in the market to interns – the best CEOs and founders inspire, excite and create belief in achieving the impossible. Charismatic leadership definitely helps in securing the ‘A’ round. 2. The focus – keep it tight yet agile, demonstrate and secure early wins from significant others in the market who have impact with investors. Be prepared to react quickly to change the model, given entrepreneurial instincts and initial reactions from the market. 3. The traction – try and build momentum in the market, build a presence, use social and business media to build a following. Metrics do not need to be financial but whatever they are, they need to be impressive and to demonstrate something is stirring. 4. The revenues – perhaps the biggest single factor to securing the ‘A’ round – the more success on the calibre, quality and scale of revenues the bigger the likely round and the better the valuation. Revenues provide investors with significant validation as to the investment case. 5. The valuation – progressing from the seed round valuation is essential and no money would be raised without demonstrable progress. However, do not kill the round by overpricing – it is still very high risk capital and it’s the value of where the cash can take you that is the most important factor.

The ‘A’ round is the hardest place to be to raise funds. Get the fundamentals working and the Series A will be competitive with investors and you will get the round away with the right amount of funds, with the right valuation. You then have the platform to crack on to the next challenges and keep striving to deliver the vision. Go on – smash it! iconcorpfin.co.uk

@ICONcorpfin


36

36

Championing entrepreneurship At Barclays we believe that entrepreneurship is a vital component of any successful economy. If some industries are called the engine room of the economy, entrepreneurial businesses are the R&D lab. The fresh ideas, products and services that are developed create new markets and economical niches - which in turn helps generate jobs and ultimately drives growth. The entrepreneurial ecosystem To promote entrepreneurial growth several environmental factors need to work harmoniously. Firstly we must listen to entrepreneurs. Not just at the beginning when they start out, but during all the different stages of their business lifecycle. We should make it our business to find out what is working for them, what isn’t quite right and most importantly, where they need help. Secondly, we need a united front. The wider political, business and academic communities must work together to explore how we can all meet the needs of the entrepreneurs and start up businesses. And thirdly, those same politicians and industry leaders need to make a long-term commitment to improve the entrepreneurial ecosystem.

Unemployment and underemployment are high and this restructuring of the labour market has a challenging impact on the global economy. But with challenges come opportunities. Opportunities to create environments that value and practise lifelong learning, encourage direct ownership, and promote responsibility of economic and societal challenges. At a more granular level we need to create more environments that not only encourage innovation but also remove the stigma of failure. Failing is an essential part of the road to success and entrepreneurs need to feel confident that they will not be excessively penalised or stigmatised if they fail along the way. This support must come from successful entrepreneurs, investors, teachers, professors, local councils, the government, local and national businesses. The Barclays Accelerator The Barclays Accelerator, powered by Techstars, is a 13-week intensive programme designed to offer just that type of support to start-up businesses. The first programme, which ended in September last year, saw a range of innovative ideas being pitched to industry leaders – including a new credit scoring system and a unique peer-to-peer lending platform that could revolutionise the home-buying process.

And that is where our mission starts. Barclays, as a champion of the entrepreneurial ecosystem, will work with new partners and discover new ways to improve this exciting and fertile business area.

But that was just the beginning. As well as continuing mentorship from top Barclays executives, a number of business engagements between the start-up teams and Barclays have started to evolve. Three teams even joined the Mayor of London on his trade mission to Asia, as representatives of London’s disruptive and innovative technologies.

Entrepreneurs and the global economy Start-up businesses are catalysts for employment, both directly and indirectly. The innovations and inventions they generate play key roles in the raising of the standard of living. And new ideas and businesses stimulate the redistribution of wealth to more people and new geographic areas.

Those selected for this year’s programme, which is due to start in March 2015, will again have world-class mentorship from industry experts and the optimum environment to thrive – at the London Escalator in Mile End. And for the first time they will also have access to a catalogue of Barclays APIs and data to help them refine their ideas and business models.

In short, entrepreneurs are very important to the global economy.

And when you combine new ideas, fresh solutions and disruptive technologies with the experience of Barclays and Techstars you can have the perfect recipe for prolonged success.

And that’s more important now than ever. It’s an unfortunate fact that across the world we have seen relatively slow economic recovery over recent years.

barclaysaccelerator.com


37 The digital age The digitisation of everyday processes has significantly influenced the banking sector which is now offering more digital options. From person-to-person payments to remote deposit capture, growing numbers of customers demand service via mobile channels. This means that the financial sector needs to be agile enough to meet this growth and develop their offerings. Our research shows that three quarters (75%) of account holders log on to their online banking at least once a week, while more than half (56%) use a banking app every week. It’s not a choice of a few customers; it’s becoming the way in which people operate their finances.

Banking 2020 Travers Clarke-Walker Managing Director EMEA, Fiserv The UK retail banking sector is continuing to undergo rapid change and with more new players entering the market, and the speed of technological innovation, the landscape is set to look very different by 2020. A new chapter Historically there have been three key hurdles for new players looking to enter the UK banking sector: the complexity of the authorisation process, the substantial capital requirements and the high cost of establishing an IT solution. However, a reduction in the minimum amount of initial capital required from £5m to £1m announced by the regulator in 2013, coupled with public and political desire for more competition, represent a shift in the industry. In the past year alone, these changes have led to the authorisation of five new banks and the submission of 25 new banking applications. We should see more new players entering the market over the next five years, while current players continue to expand on their existing offerings. Virgin Money’s Essential Current Account, for example, is only available at stores in Scotland and Northern Ireland but the provider will be rolling it out more widely next year. Meanwhile, the Post Office announced in June 2014 it would be extending its pilot current account scheme to another 81 branches ahead of a full roll-out in 2015. So with the authorisation process and capital requirements barriers broadly overcome, IT is perhaps the one remaining hurdle. The introduction of Agiliti™ removes this remaining barrier meaning that more players can enter the market.

Overall, the technological developments allowing for the recent surge in mobile and online banking give significant advantages to potential new entrants to the banking market. A trend in attitudes away from branchbased banking means that the barriers to entry are much lower than in the past. However, more people embracing the digital era doesn’t necessarily mean that the branch is dead. Our research shows that 17% of adults still visit their local high street branch at least once a week and almost half (48%) do this at least once a month. Though the traditional bank branch is going through a period of transformation, a strong argument remains for being a multichannel provider. Child’s play According to the Office of National Statistics, the percentage of UK adults aged 16-24 using internet banking has almost doubled since 2007 when under a third (30%) were using it, compared to 56% today. However, despite this rapid growth, internet banking usage amongst this age group is still lower than most others. This is due to the fact that these services are typically only available to those aged 17 or above and as a result, by the time they get to the age where they can benefit from them, they’re not familiar with the technologies so take longer to begin using them. While we are likely to see the launch of more products and services targeting this demographic this is a widely underserved market with significant growth prospects. The future of banking is digital, so whether it is the hyped omni-channel experience or a seamless payments experience, technology is dictating how banks interact with customers. The message from customers is clear: provide service anytime, anywhere and any channel. But is everyone listening? Agiliti™ from Fiserv is accelerating the UK financial services industry transformation by bringing flexibility and speed to market for new and existing financial services providers. fiserv.com

agiliti-fiserv.com

@Fiserv


The FinTech revolution, becoming reality

Payment systems – the next steps

Alex McCracken and Jon Barrett, Silicon Valley Bank

This is the time of year when we look at proposed changes to the legal framework, and set that against our dealflow. In 300 words, I get to select the most significant. In some years this can be difficult, but not this year.

The UK continued to position itself at the heart of FinTech innovation in 2014. Venture Capital funding in UK FinTech dramatically increased in 2014, rising to £342m, with the UK taking half the total investment in FinTech companies in Europe. Some of the most prominent names in UK FinTech all took part in large growth rounds to help accelerate development both domestically and internationally, including: Borro, Powa, Funding Circle, TransferWise, Blockchain, Zopa and Nutmeg. In 2014, $1 in every $5 invested in the $2.8bn global FinTech funding market went to UK companies and in 2015 we predict this trend to continue as the sector continues to evolve. There are still challenges to overcome; banks remain the “enablers” of many FinTech verticals and there is work to be done to remove barriers to entry by evolving regulation, compliance and technology. However, banks represent the biggest group of potential customers and distribution networks to many FinTech verticals and the relationship remains a complex one as banks work with all parties to understand their new operational realities. George Osborne’s 2014 statement of intent to make the UK the “FinTech capital of the world” has driven action across Government, regulators, banks and FinTech companies, fostering an ecosystem of partnership which will strengthen the sector. Individual segments within FinTech are collaborating, from the success of the crowdfunding industry in getting its activities regulated by the FCA, to HM Treasury groups established to assist the digital currency community. The breadth and depth of the FinTech sector is evolving rapidly and the establishment of Innovate Finance in 2014 is a key development. At Silicon Valley Bank, we recognise the importance of FinTech in the UK and are proud to provide banking and lending to innovative FinTech businesses, as well as adopting some of their solutions to help better serve our clients. svb.com/uk

@svb_uk

Tim Leeson and David Willbe, DWF LLP

Government figures for 2013 (the latest published) indicate that payment systems enabling funds transfer between people and institutions processed 21bn transactions, worth more than £75tn. We don’t yet know the scale of the increase for 2014. The office of the Payment Systems Regulator (PSR), a new economic regulator for the payments industry, is to become fully operational on 1 April 2015. Its latest consultation, entitled “A new regulatory framework for payment systems within the UK”, closes on 12 January 2015. The Government has previously highlighted its principal concerns in relation to the ownership (largely, by the banks), the lack of innovation and the barriers to serviceprovider access to these payment systems. Addressing these concerns is part of a more widespread Government initiative to create a more competitive banking industry. Often referred to as the plumbing of the UK’s financial system, the PSR’s remit not only includes electronic payment systems such as Bacs, CHAPS and credit clearing, but also the underlying infrastructure of hardware, software and secure telecommunications environments to support the clearing and transfer of those payments. As to access, there are comparatively few service providers with direct access rights. There is a proposal in the consultation to provide open access on an objective, risk-based and transparent basis. Breaking open an oligopoly is familiar territory for die-hard technologists; those of my vintage will recall very similar issues being considered by (then) OFTEL over many years regarding access to fixed line and mobile networks, by other operators and service providers. Other payment systems (e.g. LINK, MasterCard and Visa) which are likely to be regulated by the PSR are already subject to access requirements under European Legislation. dwf.co.uk

@DWF_Law


The FinTech50 2015 Yearbook  

The FinTech50 2015 - the 50 hottest FinTechs in Europe, as selected by our panel.

The FinTech50 2015 Yearbook  

The FinTech50 2015 - the 50 hottest FinTechs in Europe, as selected by our panel.

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