TransferWise Here Comes the Boom! East coast

Transcript:TransferWise Here Comes the Boom! East coast:
TransferWise Here Comes the Boom! East coast global consulting Agenda Challenge Delia Key Issues & Objectives Recommendation Analysis Alternatives Chelsey Implementation Plan Allison Financials Jennifer Risks & Mitigations What Success Looks Like Delia EAST COAST GLOBAL CONSULTING 2 Challenge How can TransferWise dominate remittance services market and approach zero-fee target? EAST COAST GLOBAL CONSULTING 3 Key Issues Emergence of blockchain technology Outflow exceeding inflow Changing regulatory environments Reputational challenges Industry currently dominated by Big Banks EAST COAST GLOBAL CONSULTING 4 Key Objectives Increase client volumes to maximize revenue growth Manage liquidity position Mitigate potential security risks Curate reputation to obtain bigger clients EAST COAST GLOBAL CONSULTING 5 Recommendation Develop strategic partnerships with major banks to become the world’s leading low-cost remittance provider EAST COAST GLOBAL CONSULTING 6 Analysis Delia warren International Remittance Environment THREATS: Blockchain disruption threats remittance services industry – eliminates fees Industry rife with money-laundering, sanction avoidance, and fraud Space dominated by large scale commercial banks & inexpensive, globally present competitors Lack of trust in online money transfer services EAST COAST GLOBAL CONSULTING 8 OPPORTUNITIES: 30% of financial services to be owned by tech. companies, not banks by 2026; globalization Banks make international currency exchange expensive and cumbersome Avg. remittance fee $US12; avg. remittance amount $US200 – migrant populations Peer-to-peer money transfer gaining relevance and trust Operating in highly complex space with unpredictable future but huge potential TransferWise Internal Analysis EAST COAST GLOBAL CONSULTING 9 STRENGTHS: Powerful investors, “world’s most successful fintech unicorn” 10% international market share Transparent operations, registered compliance teams Operating in 50 countries globally Successful partnerships with small, startup banks WEAKNESSES: Lack of experience Service offering lacks innovation Navigating complex regulatory space – high risk Reputational damage (false ads, Hawala comparison) Susceptible to data breaches Facing liquidity issues Must navigate carefully to avoid major scandals and curate reputation to grow business Competitive Environment EAST COAST GLOBAL CONSULTING 10 Value proposition not unique enough to compete with established, low-fee remittance providers Strategic banking partnerships provide access to client volume and improve reputation – bigger clients Financial Snapshot Jennifer button Financial Snapshot EAST COAST GLOBAL CONSULTING 12 $ US 151 Million Revenue 78% Revenue Europe 22% Rest of World Remittance Market EAST COAST GLOBAL CONSULTING 13 US$ 574 Billion in Remittances -Competitors 25% of this Business -US$ 430 Billion Available Transfer wise is saving customers US $2.65 M daily Goal of reducing transaction fees to zero (10