OLIVER WYMAN IBERIA CASE COMPETITION

BEING ENTREPRENEURS
OCTOBER, 2016

Oliver Wyman

The opportunity of your dreams

You have just finished your studies and got a job at one of the largest
Spanish Banks. After a couple weeks in the Company you are having some
beers with your new-hire friends and you realise that all of you had the
same dilemma before applying: was it better to start your career in a large
corporate or to become an entrepreneur?
A discussion begins around the topic: advantages here disadvantages
there. Things get really interesting when one of the group says out loud
what already was in everyone's mind: guys, we need to do something
together. A short silence invades the table. It is not that unrealistic, you all
get well along, want to create something new, each one comes from a
different background and together you could contribute to launch
something exciting.
As time (food and drinks) pass by, the flow of ideas some realistic, other
closer to fantasies does not stop... Could it be something technologic?
Maybe a new service? How about the next generation investment
algorithm? National? Global?
The aura does not break until the waiter interrupts the discussion Its 2am
and the whole bar is empty. Suddenly all your imaginary CEO, CFO,
roles vanish and reality hits back: tomorrow 7am wake up and back to your
desks. You leave the place a bit frustrated, however something has
changed, you know that if the opportunity arises, you will definitely catch it.
You wake up next morning, and you cant believe the e-mail you read on
your phone
Oliver Wyman

The opportunity of your dreams

From: Bank CEO
To: #Bank_AllStaff

Today, 7.02am

FinTech start-up competition 2016

Dear All,
As you already know, we are living really challenging times. The industry is evolving fast towards new
technologies, and clients are becoming more and more demanding about services offered. We believe that in
the future FinTech will be the heart of our business and that it needs to become part of our culture. With this
in mind, the Bank is launching the first FinTech startup competition open to all members in our Bank.
Our innovation department is planning to launch a new FinTech service in one of these three segments:
1. Crowdfunding/Crowdlending,
2. Payments or
3. Personal Finance,
however, we would like our staff to be the core driver of this new opportunity.
Thats why, we invite anyone in the Company to share their ideas and proposals with us. The winning team
will be directly integrated to the new initiative and start working on a daily basis with the Executive Team to
make their vision a reality. Additionally, the bank will invest 200,000 in the start-up and be ready to provide
additional funding once the start-up becomes successful. Full details available in attachment.
Please, send-in your ideas and business plans before October 23rd .
We are excited to hear from you, and best luck to all!
CEO

Before you finish reading the full e-mail, a whatsapp pop-up appears on
your phone You have been added to Being Entrepreneurs group and you
receive a pdf titled FinTech insights from one of your friends
Oliver Wyman

Your friends insights

Oliver Wyman

The FinTech market can be segmented into six large areas based on a basic
financial products classification

1. Lending

FinTech
taxonomy
structure

1.1 - P2P lending

1.2 - Crowdlending/crowdfunding
1.3 - Credit
1.4 - Other on lending

2. Payments

2.1 Direct Debit

2.2 - Platforms
2.3 Point of Sale Terminal
2.4 - Others

3. Investment/
markets

3.1 Robo/Quant advisor/ financial advisement

3.2 - Trading platforms
3.3 - Investors SSNN

4. Currency

4.1 - Currency
4.2 Bitcoin/ Blockchain

5. Equity
Finance

5.1 - Equity Finance

6.1 - Personal financing

6. Others

6.2 - FS comparators
6.3 - Financial infrastructure/ administration
6.4 - Real Estate
6.5 - Others

Source: Spanishfintech.net
Oliver Wyman

The FinTech sector has been growing exponentially in last years attracting
over $22BN in investments in 2015, driven mainly by North America
Global FinTech Financing activity
2012-2015

Number of >$50M FinTech deals

2015-2015
94

30,000

1,108

1,200

14

1,100
25,000

22,265

871
772

20,000

900
800
700

610
15,000

600

12,688
10,000

500

52
6
6
61

400

20

300
5,000

19

Deal Volume #

Investments $M

In terms of key transactions

Europe remains competitive
compared with the APAC region

1,000

4,590
3,175

100
0

2012
APAC

2013
Europe

RoW

North America

2014

2015
Global deal volume

9
1
5

13

2013

2012
RoW

40

200

Europe

2014
APAC

2015
North America

Note: Only deals with amount reported by CB Insights

Source: Accenture analysis on CB Insights data

Oliver Wyman

FinTech phenomenon has also landed in Spain with multiple players lining up
to exploit the opportunity

Why?

How in Spain?

Population culture has evolved to

Madrid has already become a FinTech

a digital live style in almost all aspects

(with a growing % of digital natives)

not reacting to this new wave would

World financial crisis has

crashed population trust into
traditional financial entities

Digital technologies have arrived to

Financial Services due to its cost
reduction growing trend

Banking is not somewhere

you go, but something you do

originator center within Europe

displace the country from top positions in the
financial services industry

Key national players have already set the

bases for these new market conditions:
Traditional banks and big corporates
such as Santander, BBVA or Telefonica
as an example have already invest in
digital innovation
Business schools launching new
programmes and investigating papers
focused on Digital
Hedge funds investing in FinTech startups

Fuente: IEB: La transformacion digital de la banca espaola Estudio Banca Digital Espaa 2015 and press research

Oliver Wyman

We already have a well populated FinTech map covering all key content
areas related to Financial Services
Spanish FinTech map per category
(3Q 2016)
1.1 - P2P lending

1.2 - Crowdlending/crowdfunding

2.1 Direct debit

2.2 Platforms

1.4 - Other on
lending

1.3 - Credit

1. Lending

2.3 PoST

2.4 Others

2. Payments

3. Investment/
markets

Checkowt

3.1 - Robo advisor/ financial advisement

3.2 - Trading
platforms

3.3 - Investors SSNN

4. Currency
4.1 - Currency

5. Equity
Finance

4.2 Bitcoin/Blockchain

5.1 - Equity Finance

6.1 - Personal
financing

6. Others

6.2 - FS comparators

6.3 Financial infrastructure

6.4 - Real
Estate

6.5 - Others

administration

Source: SpanishFinTech.net map as of Sep 2016

Oliver Wyman

The challenge

Oliver Wyman

Final submissions need to be delivered in a 10 15 slides ppt presentation

The Bank at this early stage would expect a business plan covering the
following concepts:
Remember to add a
one page Executive
Summary at the
beginning of the
presentation
containing all key
assumptions and
conclusions!

Concept
( 4 5 slides)

Market Context
( 2 4 slides)

Business Case
( 5 7 slides )

Competitors analysis
Which segment have you
Functionalities, differences
chosen
with our proposition, price,
(Crowdfunding/Crowdlending,
client reviews,
Payments or Personal Finance)?
Size (ie. nm. downloads),
Why?
market share,..
Introduction to the new concept
Others
Name, logo,
Gross market size estimation
brand/commercial strategy
Key functionalities description
and design
Principal value added, key
strengths,
Target customers,
geographies, etc
Others

Launching Plan (calendar, tasks,

human resources, )
Business volume projections
(downloads/clients/)
Economics
Revenue model (sources of
income, price, ..)
Costs model (initial
investment and OPEX
breakdown, ..)
Financial Projections
(revenues and costs
evolution,)
Note: source of any external
information used must be specified

This framework is just a guidance, feel free to suit it to your particular case!!
Oliver Wyman

To have a better understanding of current market context, almost all key

players in the industry have recently issued interesting reports on the content
but you can also identify other relevant sources to be further investigated
Key information data sources
Reports examples

Relevant webpages on the topic

For a deeper
understanding of
the FinTech
industry in Spain
you can visit:

http://spanishfintech.net/
http://fintechspain.com/

For national
statistics
(incl. digital) you
can refer to:

INE
Eurostat
http://www.worldbank.org/
http://www.imf.org/external/country/

For apps
downloads and
customer
valuations:

https://play.google.com/store/apps/cate
gory/FINANCE?hl=en

This is just a starting point, go ahead and have a look on the web!!!
Oliver Wyman

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Case Competition logistics

THE DELIVERABLE needs to be a Power Point presentation with a maximum length of 10-15 slides
Use this file title: SCHOOL_TEAM NAME

SUBMISSION
Will be via e-mail, presentations must be sent to OWICC@oliverwyman.com
Deadline is at 23:59 on Sunday 23rd October
We will announce and communicate THE FINALISTS on 29th October 2016
We will have a canap and drinks reception with the finalists on the evening of Thursday 3rd November
The final round, will then take place in our office on Paseo de la Castellana 216 (Madrid) on Friday 4th
November
We will arrange travel and accommodation for the finalist teams
All presentations, documents and stages will be conducted IN ENGLISH!!!

All suggestions/proposals should be properly supported by quantitative analysis

Internet research on company results, market trends, etc. is allowed
Oliver Wyman

11

For any doubts, please contact us at

OWICC@oliverwyman.com

Oliver Wyman

12