disruption in financial services? a silicon valley perspective
TRANSCRIPT
![Page 1: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/1.jpg)
Disruption in Financial Services?
A Silicon Valley PerspectiveMay 2016
![Page 2: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/2.jpg)
NEA is the Largest VC Firm in the World
Founded in 1978 $16.8 billion in committed capital across 15 funds Currently investing out of $3.1 billion NEA 15, the largest VC fund ever
raised Global presence: Menlo Park, CA; Chevy Chase, MD; Shanghai & Beijing,
China; and Mumbai, India 500+ funded companies 200+ IPOs and >300 M&A exits since inception 20 IPOs in 2014 and 2015
![Page 3: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/3.jpg)
Our Partners Build Transformational Companies
![Page 4: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/4.jpg)
Why does the world favor disruptors?
VS
![Page 5: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/5.jpg)
5
Innovators are Riding Multiple Waves…
![Page 6: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/6.jpg)
The 4 Major Pillars of Financial Services Disruption
MillennialBehavior
NewPlatforms
Big Data
FavorableRegulation
![Page 7: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/7.jpg)
The “Unbundling” of Financial Services
Sources: Tom Loverro and Plaid
![Page 8: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/8.jpg)
8© 2016 NEA CONFIDENTIAL
Genius or Insanity?
Disruption is a Leap of Faith…
![Page 9: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/9.jpg)
Source: CB Insights
2011 2012 2013 2014 20152.1 2.4 2.8
6.7
13.8298397
484587
653Annual Global FinTech Financing
VC-Backed FinTech Investment ($Bn) VC-Backed FinTech Deals
>$25 Billion in VC Investment in FinTech in 5 Years
![Page 10: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/10.jpg)
How is P&C Insurance Changing?
Car Insurance By the Mile, 100% Mobile Distribution
![Page 11: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/11.jpg)
How is Asset Management Changing?
100% Mobile, Free Trading, No Customer Acquisition Cost
Over $2B in transactions in
12 months!
![Page 12: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/12.jpg)
Data First Health Plans, Personalized for Self Insured Companies
How is Health Insurance Changing?
The ACA will force ~300,000 businesses to self-insure…
![Page 13: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/13.jpg)
How is Banking Changing?
>7 Billion
transactions collected
in18 months!
Any App to Any Bank, One Platform
![Page 14: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/14.jpg)
Key Considerations for Evaluating Disruptors
What are their core competitive advantages?- Technology? Regulation? User experience?
What segment of the market are they attacking?- Is it an unprofitable niche or disruptive innovation?
When will they impact your core business?- Can you afford to ignore them now?
![Page 15: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/15.jpg)
Understand Your “Existential” Threat
![Page 16: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/16.jpg)
Modernize Distribution Across Channels
Old Salesforce Modern Reps
VS
![Page 17: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/17.jpg)
Embrace New Technology to Compete
Archaic Technology Modern IT
VS
![Page 18: Disruption in Financial Services? A Silicon Valley Perspective](https://reader036.vdocument.in/reader036/viewer/2022062522/589f2cc71a28ab4d568b542f/html5/thumbnails/18.jpg)
Partner with Best-of-Breed Vendors