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FinecoBank
Investor Presentation • May 11, 2020
4321_cp_2020-05-11_93bb3e8c-cd65-477b-a60c-58d1a515f261.pdf
Investor Presentation
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Fineco UK Presentation
B 112 Paolo Di Grazia Deputy General Manager and Head of Global Business
FINECO. SIMPLIFYING BANKING Milan, May 11th 2020
1
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"
WHAT WE HAVE LEARNT FROM OUR CLIENTS
Customers use all account services: trading, payment and multicurrency
MULTICURRENCY
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
TRADING & PAYMENTS
50%
of our customers did at least one multicurrency operation
50%
of our traders uses the debit card
46%
Source: Fineco survey, march 2020
FINECO MULTICURRENCY USERS INVEST OR TRADE WITH COMPETITORS
we plan to intercept these users with investing products, a new trading pricing and a targeted communication
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 T |
SOURCE | NEW COMERS AVG Y/Y |
MARKET SIZE | 310 + K |
|---|---|---|---|---|
| OTC users |
Traditional banks, new comers OTC competitors |
+17K | 102 K retail traders (1) |
O V E R L A P A M O N G S T O C K B R O K I N G & |
| Stock broking |
Traditional banks, stockbroking, DTC platform |
+70K | 790K investors (1) ≥1 share deal/year |
S E L F I N V E S T O R S U S E R S |
| Funds self investors |
Traditional banks, stockbroking, DTC platform |
+23bn (11% yoy) |
1 trillion (1) addressable wealth uk |
22 % O F L A S T |
| Multi currency |
Traditional banks |
4.2M UK freq. travelers personal income £60k+ (2) |
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)
Fineco inflows from 2017 up today
FINECO VS COMPETITORS - PRODUCT/SERVICES
| FINECO A N |
( | HARGREAVES LANSDOWN |
Revolut | HSBC | ||
|---|---|---|---|---|---|---|
| Bank Account | X | × | > | |||
| BANKING | Multi Currency | > X |
X | > | > | |
| Debit Cards | > | X | X | > | > | |
| Shares | > | 1 | 1 | > | V | |
| TRADING | Bonds | > | × | 1 | × | V |
| Futures & Options | 1 | X | × | × | X | |
| CFDs | 1 | 1 | X | X | × | |
| FX | 1 | 1 | X | × | X | |
| Analytic tools | S | X | × | X | X | |
| Funds | X | > | X | 1 | ||
| INVESTING | ISA | > Carlos C |
1 | 1 | X | 1 |
| SIPP | V C | × | 1 | X | X |
Next Coming - see page 16
FINECO VS COMPETITORS - FEATURES
Fineco platform: usability, reliability and advanced tools
| FINECO BANK |
HARGREAVES LANSDOWN |
Revolut | () + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + | ||
|---|---|---|---|---|---|
| Free Basic Market Data |
1 | > | > | > | > |
| Real time DMA |
1 | paid | X | × | × |
| Advanced Charting tool |
1 | X | × | × | × |
| Recurring investments |
1 | X | 1 | X | 1 |
| Strategie ordini (OCO, conditionals etc.) |
1 | 1 | × | X | X |
| Stock screener |
1 | X | X | X | X |
| Payments | > | X | × | > | 1 |
| Budget track |
1 | × | X | 1 | X |
| Open banking |
1 | × | X | 1 | 1 |
Unique Selling Proposition FOR OTC AND STOCK BROKING
BEST IN CLASS PRICING 100% SUSTAINABLE
| (*) | (*) | |||
|---|---|---|---|---|
| (*) | (*) |
Benchmark data: March 2020 (*) Plus Custody fees
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
| FINECO | Revolut | 21 TransferWise |
STARLING BANK | > > HSBC | HARGREAVES LANSDOWN |
interactive investor | |
|---|---|---|---|---|---|---|---|
| £10.000 | €25 = | €28,04 = | €42 = | €45 = | €84 = | €95 = | €168 = |
| £22,3 | £25 | £37,44 | £40,7 | £74.88 | £84,7 | £150 | |
| £100,000 | €250 = | €532 = | €420 = | €450 = | €840 = | €950 = | €560 = |
| £222,88 | £474.28 | £374.43 | £401.2 | £748,8 | £847 | £499,24 | |
| £1,000,000 | €2500 = | € 5.572= | €3200 = | €4500 = | €8400 = | €9500 = | €2800 = |
| £2228,8 | £4.967.46 | £2852.8 | £4.011.77 | £7.488.6 | £8.470 | £2.496 |
10k-100k-1mln simulation for payment and investment
THE MOST COMPETITIVE PLATFORM 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
PLATFORM FEES
| Portfolio size | FINECO | HARGREAVES LANSDOWN |
JAJBell | BARCLAYS | F Fidelity | () + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + |
|---|---|---|---|---|---|---|
| £10,000.00 | 0.25% | 0.45% | 0.25% | 0.20% | 0.35% | 0.25% |
| £50,000.00 | 0.25% | 0.45% | 0.25% | 0.20% | 0.35% | 0.25% |
| £100,000.00 | 0.25% | 0.45% | 0.25% | 0.20% | 0.35% | 0.25% |
| £250,000.00 | 0.25% | 0.45% | 0.25% | 0.20% | 0.35% | 0.25% |
TRANSACTION FEES
| (*) | |||
|---|---|---|---|
| (*) Buy cost only Benchmark 2020 |
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 TRADING
£0 CFD equity Index £2.95 stock brokerage
4Q 2020 D2C INVESTING
Max 0.25% annual platform fee Competitive pricing Enhancement multi manager open platform
MARKETING LAUNCH
BRAND NEW WEBSITE
Designed for trading and tailored for the UK market
ADVERTISING CAMPAIGN
MULTI-SUBJECT CAMPAIGN
Brand message
Product messages
(some examples)
CURRENT BROKERAGE POSITIONING
- New Clients path drivers
- ›Repricing
- ›Positioning on brokerage
- ›One Stop Solution
- ›New Website
- ›Volatility
FINECO UK CLIENTS – NEW CLIENT ACQUISITION
14
Listed OTC TOT Revenue
Fineco UK Clients - New Clients
% Clients activation first month Stock vs New
Highlight new Active Traders
59% of them >5 trades per month
57% of their trades on CFDs
Revenue Split – Stock vs New
Next steps
A GROWTH PATH WITH A CLEAR GOAL: CLIENTS' WORLD CLASS EXPERIENCE
Funds development
AND MORE COMING
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 (article 154-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.
