Slide 1: A profitable FinTech Bank
A profitable FinTech Bank Paolo Di Grazia, Deputy General Manager FinecoBank November 28th 2019 FINECO. SIMPLIFYING BANKING Milan Fintech Summit 1
Slide 2: What does a FinTech do?
What does a FinTech do? FinTech do things that banks should do, but that they don’t do because they are inefficient 2
Slide 3: FinTech DNA: a unique customer experience
FINTECH DNA: A UNIQUE CUSTOMER EXPERIENCE THE FOUNDATIONS OF OUR QUALITY ONE-STOP BEST PRICE/ WORD OF MOUTH AS VERY LOW SOLUTION… QUALITY RATIO KEY ACQUISITION CHANNEL CLIENTS CHURN RATE (~ 2%) 1. Best-in-class products 2. Powerful and easy-to-use multichannel 3. platform both for clients and PFAs T
Slide 4: A unique business model
A UNIQUE BUSINESS MODEL Brokerage Banking Investing N.1 platform in Europe Full-service Banking and Extensive PFA network since 2004 Credit multichannel platform coupled with open architecture platform Multiproduct approach vs vertical approach of most Fintech companies 4
Slide 5: Paying attention to profitability
PAYING ATTENTION TO PROFITABILITY Consistent results in every market conditions Net Profit adjusted (net of DGS)(1), mln CAGR 12.8% 62.6 74.7 72.5 59.0 66.2 63.2 65.6 51.2 49.8 52.0 54.8 51.7 52.6 61.0 60.4 47.8 45.9 55.1 47.7 37.3 40.1 36.4 40.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 6: A history of innovation
2017 A HISTORY OF INNOVATION Start of UK operations The bank for the future…dating back to 1999 2018 1999 FAM established BUSINESS INNOVATION Birth of Fineco (helps to enhance time- to-market financial 2008 2001 products) Digital + PFA Platform one-stop-solution (first and only one players in 2019 o
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Slide 8: Leveraging on a deep-rooted internal IT know-how
LEVERAGING ON A Senior management experienced in IT DEEP-ROOTED No external consultants nor system integrator INTERNAL 17% FTEs in IT Department KNOW-HOW 24% FTEs in Back-Office OUR INTERNAL IT KNOW-HOW A STRATEGIC CHOICE resulting in unmatched user experience for both our clients and PFAs Core syst
Slide 9: A proprietary, integrated back-end
A PROPRIETARY, In-house development and automated processes: 1. enhancing our time to market INTEGRATED BACK-END 2. leading to an efficient cost structure Customer Marketing Products Back-office PFAs Care BUSINESS INTELLIGENCE to better serve our customers FOCUS ON OUR OPERATING LEVERAGE COST/INCOME
Slide 10: Strong data management extracting more value from big data analytics
STRONG DATA MANAGEMENT Low risk business model, with high quality lending portfolio Very low Cost of Risk at 15bps and continuously declining EXTRACTING MORE VALUE FROM BIG DATA ANALYTICS WE HAVE AN ACCURATE IDEA OF OUR CLIENTS’ FINANCIAL NEEDS X-Net: our cyborg-advisory platform better than robot-
Slide 11: FinTech DNA: Simplifying Banking
FINTECH DNA We communicate as a Fintech since the beginning Effectively communicating our core message… Strong internal ADV know-how COHERENT WITH OUR Leveraging on our single database CUSTOMERS PERCEPTION to better target customers Marketing culture to grow organically 97 % CUSTOMER SATISFACTION SI
Slide 12: FinTech DNA: Simplifying Banking
CUSTOMER FINTECH DNA: SIMPLIFYING BANKING 12 97 % SATISFACTION
Slide 13: 9M19 results
9M19 RESULTS Net profit(1): Best 9M ever, +11% y/y in a more complex environment Net Profit (1) Revenues (1) +10.8% +5.2% 198.1 mln y/y 489.0 mln y/y 9M19 9M19 Operating Costs (1) Operating Leverage +1.3% +6.4% -1.4 p.p. y/y 185.2 mln +10.9% clients Cost / TFA (bn) Income 9M19 (1) Figures adjusted n
Slide 14: Thanks for your attention
THANKS FOR YOUR ATTENTION 14