Fineco UK
Presentation
Paolo Di Grazia
Deputy General Manager and Head of Global Business
FINECO. SIMPLIFYING BANKING | Milan, May 11th 2020 |
WHY FINECO CAN BE SUCCESSFUL IN THE UK
The UK market is fragmented among many highly specialized operators. Fineco will intercept traditional banks users, combining high quality and convenience into a "one-stop shop"
3 N E E D S
ONE STOP SOLUTION
BROKERAGE INVESTING PAYMENTS
PREMIUM SERVICE WITHOUTPREMIUM PRICE
H I G H | 1 | C O M P E T I T I V E | ||
Q U A L I T Y | P L AT F O R M | |||
F E E S | ||||
2
WHAT WE HAVE LEARNT FROM OUR CLIENTS
Customers use all account services: trading, payment and multicurrency
MULTICURRENCY | TRADING & PAYMENTS |
N A T U R A L A C Q U I S I T I O N | S I G N I F I C A N T O V E R L A P |
50% | 50% |
of our customersdid at least | of our traders |
one multicurrency operation | |
uses the debit card | |
46% | FINECO MULTICURRENCY USERS |
INVEST OR TRADE WITH COMPETITORS |
Source: Fineco survey, march 2020
we plan to intercept these users with investing products, a new trading pricing and a targeted communication
3
MULTIPLE TARGETS, MULTIPLE SOURCES, INFLOW FROM TRADITIONAL BANKS
Thanks to an integrated business model, Fineco can acquire customers from various sources, including traditional banks, not only from specialized operators.
TARGE | SOURCE | NEW COMERS | MARKET SIZE |
T | AVG Y/Y | ||
OTC | Traditional banks, | +17K | 102 K retail traders (1) | ||
users | new comers OTC competitors | ||||
Stock | Traditional banks, | +70K | 790K investors (1) | ||
broking | stockbroking, DTC platform | ≥1 share deal/year | |||
Funds | Traditional banks, | +23bn | 1 trillion | (1) | |
self | stockbroking, DTC platform | (11% yoy) | addressable wealth uk | ||
investors | |||||
Multi | Traditional banks | 4.2M UK freq. travelers | |||
currency | personal income £60k+ (2) | ||||
Fineco inflows from 2017 up today
+310K
O V E R L A P
A M O N G S T O C K B R O K I N G &
S E L F
I N V E S T O R S U S E R S
22%
O F L A S T
Y E A R N E W
P L A T F O R M
U S E R S U N D E R 3 5
(2) | |||||||
24%23%12%10% | 9% | 4% | 3% | 15% | |||
Barclays | HSBC | Nat West | Lloyds Bank | Santander | Halifax | Nationwide | Other |
- Source: Investment trends 2019
- source: Internal research
4
FINECO VS COMPETITORS - PRODUCT/SERVICES
Next Coming - see page 16
5
FINECO VS COMPETITORS - FEATURES
Fineco platform: usability, reliability and advanced tools
6
Unique Selling Proposition
FOR OTC AND STOCK BROKING
BEST IN CLASS PRICING 100% SUSTAINABLE
(*)(*)
(*)(*)
(*) Plus Custody fees Benchmark data: March 2020
7
A COMPETITIVE MULTICURRENCY OFFER
Multi-currency accounts are typically expensive services for premium customers. FinecoBank multicurrency account is free.
› | Best spreads - no commission | ›Free payments towards EEA |
› | Visa debit in £ and in € | ›20+ currencies |
CHANGE RATE COSTS
10k-100k-1mln simulation for payment and investment
8
THE MOST COMPETITIVE PLATFORM FEES
PLATFORM FEES
TRANSACTION FEES
(*)
C O M P E T I T O R S
D O N ' T H A V E
- Multicurrency
- Bank Account
- Debit Cards
- Wide Trading offer
(*) Buy cost only
Benchmark 2020
9
TWO-STEP MARKETING STRATEGY
Acquisition first step will focus on the segment with the highest and fastest margins - brokerage - then the campaign will be also extended to investing
PREMIUM SERVICE WITHOUT PREMIUM PRICE
2Q 2020 | 4Q 2020 | |
TRADING | D2C INVESTING | |
£0 CFD equity | Max 0.25% annual platform fee | |
Index | Competitive pricing | |
£2.95 stock brokerage | Enhancement multi manager open | |
platform | ||
10
MARKETING LAUNCH
BRAND NEW WEBSITE | ADVERTISING CAMPAIGN |
Designed for trading and tailored for the UK market
11
MULTI-SUBJECT CAMPAIGN
Brand message
Product messages
(some
examples)
12
CURRENT BROKERAGE POSITIONING
New Clients path drivers
- Repricing
- Positioning on brokerage
- One Stop Solution
- New Website
- Volatility
13
FINECO UK CLIENTS - NEW CLIENT ACQUISITION
Accounts vs Active Traders | March/April Picture | |||||||
CPA | ARPU | |||||||
overall | Active Traders | |||||||
€608 | €1115 | |||||||
ott-19 | nov-19 | dic-19gen-20 | feb-20mar-20 | apr-20 | + | 111 | % | +98% |
Active Traders | Accounts |
ClientsTraders
acquisitionActivation
Revenue split OTC vs Listed
Oct-19 | Nov-19 | Dec-19 | Jan-20 | Feb-20 | Mar-20 | Apr-20 |
Listed | OTC | TOT Revenue | ||||
14 |
+133% +114%
OTC users | Listed users |
+270% +230%
OTC trades | Listed trades |
Internal elaborations by GB Dept.
Fineco UK Clients - New Clients
% Clients activation first month | Highlight new Active Traders |
Stock vs New |
25% | 24% | |
20% | 20% | |
15% | ||
10% | ||
5% | 3% | 4 |
% | ||
0% | ||
0 | 10 | 20 |
New | Old |
59% | 57% |
of them | of their |
>5 trades | trades |
per month | on CFDs |
Revenue Split - Stock vs New
Internal elaborations by GB Dept.
15
Next steps
STEP 0: Done | STEP 1: 2020 | STEP 2: 2021 | |
Repricing | Funds Branch | ||
Wider funds offer | |||
trading | SIPPs | ||
ISAs | |
New website | Funds |
Regular | |
Wider funds offer | |
saving plan |
A GROWTH PATH WITH A CLEAR GOAL:
CLIENTS' WORLD CLASS EXPERIENCE
16
Funds development
STEP 0: Done | STEP 1: 2020 | STEP 2: 1H21 |
~ 80%
D2C
Funds
coverage
AND MORE COMING
17
Disclaimer
- This Presentation may contain written and oral"forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
- The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
- Pursuant the consolidated law on financial intermediation of 24 February 1998 (article154-bis, paragraph 2) Lorena Pelliciari, in her capacity as manager responsible for the preparation of the Company's financial reports declares that the accounting information contained in this Presentation reflects FinecoBank's documented results, financial accounts and accounting records.
18
Attachments
- Original document
- Permalink
Disclaimer
Finecobank S.p.A. published this content on 11 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2020 12:18:05 UTC