FinecoBank S p A : Presentazione Fineco UK

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

1. Source: Investment trends 2019
2. source: Internal research

4

FINECO VS COMPETITORS - PRODUCT/SERVICES

Next Coming - see page 16

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FINECO VS COMPETITORS - FEATURES

Fineco platform: usability, reliability and advanced tools

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Unique Selling Proposition

FOR OTC AND STOCK BROKING

BEST IN CLASS PRICING 100% SUSTAINABLE

(*)(*)

(*)(*)

(*) Plus Custody fees Benchmark data: March 2020

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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

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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

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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

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MARKETING LAUNCH

BRAND NEW WEBSITE

ADVERTISING CAMPAIGN

Designed for trading and tailored for the UK market

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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.

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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

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Funds development

STEP 0: Done

STEP 1: 2020

STEP 2: 1H21

~ 80%

D2C

Funds

coverage

AND MORE COMING

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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.

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