17nov/160

L’innovation numérique en Afrique : la singularité des modèles de développement

pouillot_lubrano

Didier Pouillot & Sophie Lubrano , IDATE DigiWorld
Contacter

Face au défi de la digitalisation des gouvernements, de l’économie, et des individus, l’Afrique innove avec des modèles spécifiques de développements s’appuyant sur les dernières technologies.

L’Afrique présente des singularités qui façonnent un modèle de développement original. Tout d’abord, le faible pouvoir d’achat dans la plupart des pays a favorisé un marché low-cost, tant sur les services que sur les terminaux mobiles, dans un modèle pré-payé ; la migration vers les services de données pourra se faire dans cette même logique, avec des offres d’entrée de gamme tarifées au volume. A terme, la classe moyenne en développement permettra de sortir de la logique low-cost avec des offres à valeur ajoutée.

Par ailleurs, la région a pu bénéficier de la mise en place des dernières technologies dans une logique leapfrog, avec notamment l’usage des technologies sans-fils pour l’accès ; elle pourrait également profiter à terme des technologies innovantes telles que les constellations (drones, ballons, micro-satellites) pour desservir les zones rurales. Enfin, l’Afrique a su développer des services innovants, notamment dans le domaine financier (avec le succès bien connu de l’e-money), de la santé, de l’agriculture et de l’éducation. Ajoutons également les services d’entertainment, avec les pôles de production audiovisuelle déjà bien établis mais également les premiers pôles de jeux vidéo.

Ainsi, l’Afrique a vu émerger une filière numérique, avec la création de hubs technologiques, d’incubateurs de start-ups, de réseaux d’échange et de collaboration au niveau régional, avec le support des gouvernements locaux et des leaders internationaux du numérique.

growth_rate_services_and_telecom_market_growth_africa_middle_east_digitalafrica_dp

Pour aller plus loin à propos des Smart Cities avec les derniers rapports d'IDATE DigiWorld
World Telecom Services Market: Trends & Analyses, July to December 2015 – Jan. 2016
World LTE market & MBB spectrum: Markets at June 2015 & Forecasts to 2019
World FTTx market: Markets at December 2015 & Forecasts to 2020 – Jul. 2016
Telco investment challenges: CapEx dynamics – Dec. 2015

Pour suivre l’actualité de l’économie numérique, n’oubliez pas de vous inscrire à notre newsletter

17nov/160

5G will be here by 2020: What will that really mean in Japan, South Korea and the United States?

pujol_frederic

Frédéric Pujol, Head of the mobile services, IDATE DigiWorld
Contact

Europe’s future society and economy will rely heavily on 5G infrastructure. The impact will go far beyond existing wireless access networks, with the of having faster communication services that are available everywhere, all the time.

 

5G is a real opportunity for the European ICT sector, which is already well positioned in the global R&D race. 5G technologies will be adopted and deployed globally in line with the needs of developed and emerging markets.

While many of the technical aspects attached to 5G are scaling up globally, requirements analysis for key vertical sectors is progressing rapidly. The emergence and deployment of 5G technology is likely to trigger innovation in the industry, thus leveraging sustainable societal change.

There is a vision for 5G to become a stakeholder-driven, holistic ecosystem for technical and business innovation, integrating networking, computing and storage resources into one programmable and unified infrastructure. In addition, thanks to real-time and larger traffic volume capabilities, 5G is expected to enable the transport of software to the data rather than the other way round, i.e. executing software on the device where the data are produced instead of sending all data to a centralised datacentre – thereby paving the way for new opportunities in the cloud computing market, where European companies could gain a significant market share.

In the long run, it will not be enough to explore the requirements of vertical industries, and a proper analysis will also need to be conducted of market trends to sense new, upcoming technology, especially from companies outside the industrial mainstream. Potentially disruptive technologies typically go widely undetected by the established industry, but clearly have a real potential to become engines of significant technical change and innovation. Unanticipated 5G features are likely to emerge from future technological, legal, societal and socio-economic considerations

mobile_networks_forum5g_fp

 

DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS

World LTE market & MBB spectrum: Markets at June 2015 & Forecasts to 2019 Players - Technologies - CapEx – Pricing – Dec. 2015
Key outcomes from WRC-15: Four years to pave the way for the future of telecoms, Feb. 2016

 Subscribe to our newsletter and keep up to date with events and latest news.

15nov/160

Financial market transformation: The challenges and opportunities of FinTech for the financial industry

copigneaux_bertrand

Bertrand Copigneaux
Senior Consultant, IDATE DigiWorld
Contact

Banking has long represented a big market for IT and digital technologies. It is probably one of the sectors that has invested the most in information technologies over time, for retail banking activities, and more recently for risk control systems to ensure compliance with banking and finance regulations.

More recently, however, digital innovation in this sector has been overtaken by the explosion of FinTech. Hundreds of start-ups have demonstrated the potential to innovate and transform the banking and finance as we know it. In light of recent events, several areas of innovation have emerged from the development of FinTech, either in competition or partnership with veteran banking industry players.

Every corner of the financial sector is affected, from payment solutions, to credit and lending activities faced with crowdsourced alternatives, the use of blockchains and cryptocurrency-based solutions, to the emergence of high frequency trading, big data analysis solutions and AI roboadvisors.

These technologies are disrupting the finance ecosystem, and paving the way for new players, and new business models. They also open up opportunities for the industry to transform itself and become more efficient and profitable.

decentralised_application_business_models_using_blockchain_fintech_bc

 

DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS

 Mobile Payment: The state of the industry, amid new stakes, Apr. 2016
Privacy Business: How will privacy issues affect Internet business models, Jan. 2016
Blockchain, Oct. 2016

 

 Subscribe to our newsletter and keep up to date with events and latest news.

15nov/160

Ultra-Fast Broadband Public Policies Does any one country provide a model of reference?

attali_moreno

Pierre-Michel Attali & Nicolas Moreno, IDATE DigiWorld
Contact

Europe 2020, the key document in Europe’s growth strategy for the coming years, published by the EuropeanCommission in May 2010, unveiled the objectives of the Digital Agenda for Europe (DAE).

 

One of the main questions concerns the efficiency of the different national plans (technological approach, funding, regulation…) which have been designed to achieve the objectives of the DAE.

National programme objectives in sync with the Digital Agenda for Europe

With the exception of France, whose coverage objectives are two years behind Europe’s, and Sweden which does not have specific time-related targets, many national plans are in line with DAE coverage objectives. Most European countries have also set additional targets, in most cases to achieve more ambitious UFB objectives, either in terms of connection speeds (France, Italy) or time frame (Germany, Sweden).

Currently disparate landscape

The disparate coverage levels in European countries cannot be attributed to any single factor, but rather to a combination of demographics, technological choices and the strength of private investment. Each European country has established a public policy (objectives, technologies) based on its own situation and features. These national plans are vital but in themselves not enough to achieve complete superfast coverage, or nationwide ultrafast 100 Mbps coverage down the road.

european_superfast_ultrafast_rankings_pma_nm_futurenetworksforum

 

DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS

World FTTx market: Markets at December 2015 & Forecasts to 2020,July 2016
Digital Agenda Europe, Europe (EU-28) at the end of 2015, July 2016
Public policies for UFB, Benchmarking 7 countries in relation to the Digital Agenda for Europe, June 2016
Telco investment challenges, CapEX dynamics, Dec. 2015

 Subscribe to our newsletter and keep up to date with events and latest news.

13nov/160

Keynote: Trust in the Digital Age

fernandez_ramon_orange_300x300v3

Interview avec : Ramon Fernandez,
Directeur Général Délégué, Directeur Financier et Stratégie Groupe, Orange

"La confiance est un atout essentiel dans un monde toujours plus numérique et complexe"

Pourquoi parle-t-on tant de la confiance aujourd’hui ? 

Peut-être parce qu’elle est devenue une denrée rare ! Nous traversons une crise de la confiance, qui est globale et s’étend à toute la société au-delà de l’économie. Aujourd'hui, en Europe et dans notre industrie, de nombreuses personnes ne font pas confiance aux acteurs de notre écosystème dans l'utilisation des données personnelles qu’ils partagent pourtant au quotidien. De plus en plus de services sont totalement dématérialisés. Nombre de très grands acteurs digitaux ne sont pas présents dans le monde physique, n’ont pas pignon sur rue, et une part croissante de la relation client est assurée par des robots…Si les données sont le carburant de notre monde digital, la confiance, elle, est incontournable pour réussir dans la durée.

La notion de « tiers de confiance » - souvent  entendue au sujet des opérateurs télécom a-t-elle encore un sens ? 

Plus que jamais, dans le monde digital qui est le nôtre, nous opérons dans un environnement de plus en plus ouvert, fragmenté, toujours mouvant. Il devient alors de plus en plus important de bénéficier de points de repères. Avec l’émergence des acteurs digitaux, la confiance s’établit au travers de repères nouveaux et évolutifs, elle devient distribuée : par exemple un ensemble d’avis d’autres utilisateurs pour un loueur d’appartement sur Airbnb ou de voiture sur Drivy, ou encore l’algorithme à la base du blockchain… Plus qu’un « tiers de confiance » à proprement parler, les clients sont à la recherche d’un véritable ‘partenaire de confiance’. Orange souhaite jouer ce rôle.

Comment le projet de banque mobile d’Orange s’articule-t-il avec ce positionnement de « partenaire de confiance » ?

C’est sur la base du « capital confiance » construit dans la durée auprès de ses millions de clients dans le monde qu’Orange peut aujourd’hui être légitime pour gérer l’argent de ses clients. C’est aussi sa crédibilité en termes d’innovation qui fait d’Orange un acteur attendu pour proposer une nouvelle expérience de la banque entièrement mobile. C’est enfin l’opportunité de capitaliser sur l'expérience accumulée en Afrique avec nos 20 millions de clients Orange Money. Il y a donc une certaine logique pour Orange à lancer ses propres services bancaires ce que nous faisons en partenariat avec Groupama.

Pour suivre l’actualité de l’économie numérique, n’oubliez pas de vous inscrire à notre newsletter

9nov/160

La constitution d’un marché unique de l’audiovisuel : est-ce uniquement un problème d’harmonisation du droit d’auteur ?

LEBORGNE-Florence_NB

Florence Le Borgne,
Head of the TV & Digital Content Practice, IDATE DigiWorld
Contacter

Si la directive 2001/29/CE harmonise les copyrights à l’échelle de l’Union, les détenteurs de droits ne bénéficient pour autant pas d’une protection unique sur l’ensemble du territoire de l’UE. Leur couverture est en effet constituée d’un ensemble de droits nationaux dont le champ géographique demeure limité au territoire de l’État membre qui les accorde.

A l’heure où les consommateurs sont de plus en plus nombreux à regarder de la vidéo sur des terminaux mobiles et s’attendent à pouvoir le faire n’importe où, la territorialité du droit d’auteur pose des difficultés au regard de l’accès transfrontière et de la portabilité de ces contenus. Selon la Commission européenne l'accessibilité à un service de vidéo dans un autre État membre n'est ainsi garantie que pour moins de 4 % de la totalité du contenu en VoD dans l'UE. Par ailleurs, en voyageant d’un pays européen à un autre, un consommateur n'a souvent pas la possibilité d’accéder aux services audiovisuels auxquels il est abonné dans son pays de résidence pour des motifs liés au droit d'auteur.

La territorialité du droit d’auteur est toutefois loin de constituer l’unique limite au développement de services transfrontières. Parmi les autres facteurs figurent avant tout les exclusivités par territoire imposées par les ayants droit pour garantir le préfinancement des contenus, mais aussi :

  • les coûts et contraintes liés à la nécessité d’employer un personnel multilingue pour le service clients ;
  • les différences de réglementation entre les pays en matière de copie privée, de protection des consommateurs et des mineurs, de taxation, de fenêtres d’exploitation… ;
  • les frais de sous-titrage et de doublage ;
  • les coûts d’adaptation des plans marketing à chaque pays ;
  • l’absence de standards techniques pour la distribution du contenu ;
  • le manque d’équipement et/ou d’accès au haut débit dans certains pays ;
  • la faiblesse de la demande pour des services transfrontières.

Un plan moins ambitieux, qui se contenterait de garantir la portabilité des contenus partout en Europe, semblerait plus réaliste. Il s’agirait pour les fournisseurs de services de négocier avec les ayants droit une exception clairement définie et encadrée à la territorialité des droits, pour pouvoir autoriser leurs clients à visionner leurs programmes depuis un autre pays de l’UE.

flb_insight_tv_video_forum_dws16

 

Pour aller plus loin à propos des marchés TV avec les derniers rapports d'IDATE DigiWorld

TV in the Digital Single Market: Impact of current regulatory changes on the audiovisual value chain, Dec. 2015
World TV & Video Services Markets: Terrestrial - Satellite - Cable - IPTV - DVD - Blu-ray - Video on demand, Dec. 2015
Video-On-Demand: Europe’s main markets in the aftermath of Netflix world conquest, May 2016
Video Solution Providers: Towards Software-Defined Video, Jul. 2016

Pour suivre l’actualité de l’économie numérique, n’oubliez pas de vous inscrire à notre newsletter

6nov/162

La confiance facteur décisif du succès des smart cities

baudouin_philippe

Philippe Baudouin,
Head of Smart City Practice, IDATE DigiWorld
Contact

Les perspectives ouvertes par la Smart City se fondent sur une intensification de la présence du numérique dans  les multiples composantes de l’écosystème urbain : transports, sécurité, gestion des réseaux, de  l’environnement et des déchets,.., transformation du commerce, tourisme, relations aux services administratifs, etc.

Il est entendu que les projets de Smart City ne peuvent se développer avec succès que si les applications sont pertinentes (utiles et acceptées) et si elles s’inscrivent progressivement dans une dynamique transversales à l’échelle de la métropole.

Mais au-delà, le succès des initiatives  dépendra pour une grande partie de la confiance des usagers dans les infrastructures et les services numériques proposés ainsi que la capacité à mobiliser tous les acteurs de l’écosystème urbain. La prise en compte de ces conditions doit être au cœur de la gouvernance  des projets de Smart City.

Quelle démarche adopter pour convaincre les usagers de l’intérêt des projets smart city ?

  • Comment la démocratie participative (civil tech) peut trouver toute sa place dans la conduite d’un projet de Smart City  ?
  • Comment l’open data peut-il contribuer à renforcer la confiance au sein des smart cities ?
  • Comment éviter que la Smart City se réduise à la juxtaposition d’opérations dans des silos sans synergies ?
  • Comment débattre des risques  de la cybersécurité dans un projet de Smart City?
  • Quelle démarche mettre en place pour assurer le développement d’une smart city résiliente ?

smart_city_forum_trust

Pour aller plus loin à propos des Smart Cities avec les derniers rapports d'IDATE DigiWorld
Privacy Business: How will privacy issues affect Internet business models – Jan. 2016

Pour suivre l’actualité de l’économie numérique, n’oubliez pas de vous inscrire à notre newsletter

3nov/160

Découvrez les startups nommées aux DigiWorld Awards 2016

logo_dwa2016

Les récompenses des start-ups du numérique créées par des français à l’étranger !

 

 

À l’occasion de la 38ème édition de son DigiWorld Summit, IDATE DigiWorld, en partenariat avec Business France et la French Tech, organise la seconde édition des DigiWorld Awards, pour récompenser des start-ups du numérique créées par des Français à l’étranger.   

Les nommés 2016 sont…

Parmi l’ensemble des candidatures reçues, le Jury a procédé à un premier classement à partir des dossiers en distinguant les 12 meilleurs. 4 lauréats seront distingués par grande zone géographique : Afrique-Moyen Orient, Amériques et Asie-Pacifique. Les startups qui ont participé ont répondu aux critères suivants :

 • Avoir été créées hors de France par au moins un Français

 • Exercer leur activité principale dans le domaine du numérique : équipements & terminaux, réseaux & télécoms, services & application Internet (BtoC, BtoB…), M2M & IoT…

 • Démontrer leur potentiel de croissance dans leur domaine et à l’international

Nommés aux DigiWorld Awards
APrivacy Gatecoin Locolo Smart Alpha
Boosst Group HelperChoice Pzartech Virtuafit
Chalkboard Education JITbase Rilos YOO Sourcing

Un cinquième lauréat, coup de cœur du Jury, sera sélectionné parmi les startups tournées vers l’international issues de l’écosystème de la Région Occitanie.

Nommés pour le coup de coeur du Jury
CopSonic Emersya Intuilab

Les belles histoires de ces startups créées par des Français aux quatre coins du monde 

« Lancé en 2015, ce prix ce veut différent des nombreux autres qui distinguent nos pépites aux divers stades de leur développement. », déclare Jean-Dominique Séval, Directeur adjoint de IDATE DigiWorld. « En mettant l’accent sur ces entrepreneurs français qui ont choisi de créer leur start-up dans un autre pays, nous souhaitons tout autant les faire connaître que donner un signal fort sur l’immense valeur que représentent ces talents pour l’avenir du numérique national. »

C’est surtout une illustration parfaite des talents de la « French Tech », initiative impulsée par l'État, portée et construite avec tous les acteurs, dont Business France est un membre fondateur. Depuis 2015, des French Tech Hub sont devenus actifs dans plus de 15 grandes métropoles internationales, représentant des territoires majeurs de développement pour les startups de la French Tech. L'objectif est de susciter une mobilisation collective et de fédérer sous cette bannière les divers acteurs publics (Business France, consulats, chambres de commerce, collectivités,…), un réseau d'entrepreneurs bien implantés sur place (startups, grands groupes, investisseurs, ingénieurs ou développeurs), pouvant jouer le rôle de mentors pour les jeunes pousses souhaitant se développer sur un territoire donné, et d'ambassadeurs de la French Tech auprès des décideurs locaux.

Dans ce cadre, les DigiWorld Awards sont une occasion unique d’identifier les nombreux entrepreneurs qui ont créé leur startup tout autour du monde, et de distinguer ceux qui ont connu le succès, avant, peut-être, de venir s’implanter en France !

Prix et récompenses

Les lauréats de chaque catégorie recevront leur trophée en présence du Président du Jury, Pierre Chappaz, Président de Teads, lors de la cérémonie du 16 novembre 2016 à 19 heures (Le Corum, Montpellier).

Chaque prix sera doté par les parrains de l’opération – Accenture, Capgemini, Ericsson et Orange – qui mettront à disposition des startups primées leur dispositif Innovation au niveau international. Sans oublier la Région Occitanie qui parrainera le Coup de cœur du Jury.

 • Les startups récompensées seront invitées, avec le soutien de notre partenaire Air France, à participer au DigiWorld Summit pour la cérémonie de remise des prix en session plénière du DigiWorld Summit.

 • Les lauréats seront intégrés au Wproject (www.wproject.fr), la plate-forme de référence des entrepreneurs français de l'étranger.

 

> Tous les détails : http://www.digiworldsummit.com/awards/

> Télécharger le communiqué de presse

Une compétition organisée par IDATE DigiWorld

logos_awards

27oct/161

Digital Innovation & Finance Transformation, Interview with Jean-Hervé LORENZI

jean_herve_lorenzi

"Digital Innovation & Finance Transformation"
DigiWorld Economic Journal n°103

Interview with Jean-Hervé LORENZI
Chairman of the Pole of Competitiveness "Finance Innovation"

Conducted by Yves GASSOT CEO IDATE DigiWorld and Maximilien NAYARADOU, Director of R&D projects,
Pôle de Compétivité Mondial Finance Innovation

 

 

DW Economic Journal: Finance vs. FinTech, where are we seeing innovation today?

Jean-Hervé LORENZI: Without a doubt, it is new entrants in what is commonly referred to as FinTech that are driving innovation today. FinTech start-ups are the myriad micro, small and medium businesses that combine information technologies and finance, and are coming to disrupt a sector that has long been protected by regulation. FinTech innovations range from new payment systems that make it possible to decrease the cost of digital transactions, to new financing platforms: crowdfunding of course, but also seed capital, stocks, robo-advisors that digitise financial consulting, blockchains that lower the cost of certifying transactions by decentralising the process, and of course the plethora of digital services that FinTech companies are ushering in: account aggregation, generating coupons based on individual shopping habits, etc. Added to this are the myriad possibilities opened up by big data: extra-financial analysis that, at last, selects financially-relevant variables and helps expand the range of enterprises that have access to financing.

But it should also be said that, even if FinTechs have the momentum on their side, traditional finance industry players are also innovating, albeit at a slower pace: the pace of private bureaucracies and as a defensive measure, but innovating nonetheless. Regulatory pressure is stepping up, and it seems safe to predict that the rate of innovation inside banks and insurance companies will accelerate… naturally with the help of FinTechs.

The Finance Innovation competition cluster, of which I am the president, is at the very heart of these changes in the financial sector. Twice a year, we give our seal of approval to 50 innovative projects, most of which are FinTech projects, and so coming from micro, small and medium businesses, but we also give our seal to projects from the sector's larger enterprises that are seeking to promote new products that are innovative, strategic and reliable. Lastly, we extend our seal to collaborative projects driven by FinTechs, large corporations and academics, projects eligible for public subsidies aimed at encouraging players to work together to innovate. The Finance Innovation competition cluster is the only structure in France that centralises finance-related innovations of all kinds – technological or service-centric – and regardless of the entity behind the endeavour: FinTechs of course, but also large corporations and academics.

What are the different views on competition between FinTech companies and veteran market players? Is FinTech not synonymous with disintermediation?

Veteran players have their own set of assets, including their market power and immense size, especially in France, which enable economies of scale and create real barriers to entry. FinTechs are small and in some cases tiny companies. But veteran players' strengths are also their weaknesses: their large size also means a heavy bureaucracy that paralyses initiative and agility.

We should also point out that, when competing with incumbents, FinTechs have the prevailing wind of financial disintermediation in their sails. Of course, these are two separate phenomena, but they do feed and foster one another. The high-speed digitisation of the financial sector is helping to bring down market entry costs for newcomers, and the cost of disintermediation. Disintermediation allows assets managers and insurance companies to finance companies directly, without having to go through the banks, and allows crowd-funders to do the same. Disintermediation opens up the market for FinTechs, digitisation makes it possible to roll out a solvent product with very little capital, contrary to insurance companies and assets managers. FinTechs are also entering the realm of shadow banking, this non-banking form of finance that is developing and, when properly regulated, contributing to funding the economy: crowdfunding, seed capital platforms and online factoring are all part of the shadow banking phenomenon.

Does Europe lag behind in the area of FinTech and innovative financial solutions? What differences do you see between the situation in France and Europe from the one in the United States or in Asia?

It is not Europe that is lagging behind, but rather the Eurozone. The United Kingdom is absolutely not lagging behind: prior to the Brexit vote, London was Europe's FinTech capital. Compared to the US and even the UK, fundraising levels in France are still quite meagre, despite a significant increase in both frequency and volume since the end of 2014: €1.2 million on average, compared to €5 million in the UK and well over that in the US. Of course, this can be explained by the very limited development of investment capital in France, compared to English-speaking countries.

Next, government intervention in start-ups and innovative companies is very efficient: in the US and the UK, the public sector takes far more risks of losing money and in financing businesses with little or no funds of their own, so public subsidies have a far greater impact there than in France. Added to which Anglo-Saxon governments and regulatory authorities are very FinTech-friendly: the Bank of England has an office dedicated to FinTechs which helps remove the regulatory barriers to their entry into the market. A FinTech bureau was created in France as well, but several years after the one in Britain. Another very important example is that the UK equivalent of BPI France (France's public investment bank) has financed crowdfunding platforms so that they might distribute funding to SMBs, which gave the sector an enormous boost. Plus, in both the US and the UK, relations between SMBs, large corporations and the State are regulated, and a percentage of the federal government's (under the Small Business Act in the US) and big businesses' procurements must be from small businesses, which guarantees a minimum set of opportunities for start-ups. In the financial sector, the banks thus have a very practical incentive to work with start-ups. The positive and pragmatic ecosystem that we find in English-speaking countries made investments in FinTechs profitable much more quickly, so investors were quicker to invest heavily, which helped perpetuate a virtuous circle.

We should nevertheless point out that, inside the Eurozone, France in general (thanks French Tech) and the Paris exchange in particular, are in an especially strong position with respect to FinTech, compared to Germany or Italy. For instance, France has had crowdfunding legislation in place since 2014, which provides the sector with a secure framework and is allowing it to develop in a healthy, controlled fashion, which is not the case in the other major Eurozone nations. Moreover, France and the Paris exchange in particular have a sizeable advance in terms of R&D; France is a global leader in the areas of Big Data (France was the birthplace of data mining, Big Data's predecessor, back in the 1970s) and of artificial intelligence. Not only do France and the Paris exchange have considerable R&D assets, but France in general and the Paris region have a concentration of FinTech entrepreneurs, and a tremendous intensity of entrepreneurial creativity. Lastly, listings on the Paris exchange include the largest banks, assets managers and insurance companies in Europe. If they are quick to embrace the digital transition and learn to work with FinTechs, the Paris exchange will have all the assets needed to catch up to London.

Is banking and financial regulation an impediment to FinTech's development in France? And, looking at it from another angle, could FinTech weaken a financial system that public authorities and market players have been working to strengthen since 2008?

Regulation in France, which is very strict when it comes to protecting investors and consumers, increases the cost of entering the market and, as a result, favours incumbents. It took several years for France's financial market regulators, ACPR and AMF to decide to open up a dedicated FinTech office. Added to which, once open, the FinTech bureau did not follow the more FinTech-friendly sandbox approach taken by regulators in English-speaking countries. The sandbox approach consists of relaxing regulation temporarily to be able to test the relevance of a given innovation and, at the same time, of existing regulation. France's FinTech regulator refused the sandbox approach, which means that FinTechs are not exempt from existing regulations, even when testing new products.

FinTechs are still too small to upset the balance of the financial system, but we can also point out that it is the Base III, Solvency II, MIFID et. al regulations introduced since 2008 that enable FinTechs to emerge as alternatives for the financial sector's clientele. The capital constraints that have been mandatory since 2008, and which limit the banks' leverage, have paved the way for solutions such as peer-to-peer lending and crowdfunding to develop.

What scenario does the prospect of no more cheques and especially no more cash evoke for you?

This, in fact, means the end of paper money, since blockchain technology allows us to imagine the existence of digital cash, in other words a digital currency but one that is anonymous and traceable like cash. Bitcoin is to some extent a form of digital cash, but it carries the baggage of a bad reputation due to its use on the Dark Net (i.e. non public corner of the Web). There will always be a demand for a portion of transactions to remain anonymous, without implying criminal activity. When central banks start to use blockchain, digital sovereign currencies will emerge, which will be a sort of pegged exchange rate Bitcoin, like all sovereign currencies, but which would be tied to a central bank.

Can you tell us a bit about the Finance Innovation competition cluster? And what the cluster believes are the key issues facing financial market innovation today?

The Finance Innovation cluster has over 350 members: FinTechs, major banks, insurance companies and assets management companies, as well as academics, working together to disseminate a culture of innovation within the financial sector, and to accelerate the development of innovative projects in the sector that take on economic, societal and environmental issues, in the service of growth and job creation.

Finance Innovation holds two seal of approval ceremonies a year, recognising innovative FinTech start-up projects – although not confined to start-ups as the seal can also be awarded to innovative projects from large corporations in the sector, as well as collaborative projects between corporations and academia. A total of around 100 projects are awarded the seal of approval each year, through these two ceremonies. The goal is to obtain private (private fundraising) or public financing (BPI France, regional financing, innovation clusters for the trades (PIA), Single inter-ministry fund (FUI)….) and to promote innovative solutions through the cluster's YouTube channel, publishing articles on Hello Finance, use of social media, etc.

The Finance Innovation cluster is also synonymous with experimenting, testing, disseminating and promoting innovative financing solutions for micro, small and medium businesses, within the sector itself across the whole of France, and in other sectors through 70 other competition clusters.

Lastly, the Finance Innovation cluster means roadmaps for finance industry innovation. To establish these roadmaps, which are published in the form of White Papers, we work in concert with large corporations, FinTech start-ups and academics to determine which areas of innovation are priorities, and to identify future catalysts of growth. These White Papers allow us to structure innovation in our domains of expertise, and to provide the State with tools for selecting the innovative projects to subsidise. In 2016, we are publishing a White Paper on innovation in retail banking, which will be followed by two more in 2017: one on innovation in the accounting and consulting professions, and one on innovation in e-health and prevention.

Innovation in the finance industry today is coming from FinTech, in other words from technologies that are enabling the creation of new innovative and high value-added services. And let us not forget that FinTech also encompasses InsurTech, which adds connected objects, on-board systems and security issues to the mix. It is this entirely new framework that is revamping the insurance sector, as new data are available and challenging actuaries' classic risk models. The public at large tends to focus more on FinTech and the banking sector even though, thanks to InsurTech, the insurance sector is in the throes of an equally dramatic upheaval.

What do economists believe are the real stakes of the financial sector's digital transformation, in terms of economies' competitiveness, growth and job creation?

English-speaking countries have fully embraced FinTech: a shift that will allow the sector to enjoy gains in productivity, and create economies that are more competitive in terms of financing. FinTechs expand the range of what can be financed, which is something that States and the sector's regulators need to understand. On the other hand, we should not have any illusions: the prospects for job creation are strong, but so are the prospects for job destruction. Thanks to the use of digital technology, FinTechs will enjoy enormous productivity gains: over the long term, thousands of back-office jobs in banks, teller jobs and financial consultant jobs will be destroyed. The banking sector is tomorrow's steel industry. We find the classic dilemma of Schumpeterian creative destruction: a great many jobs will be lost and a great many created, but which will outnumber the other? The jobs that will be lost will be low skilled ones, while the ones that will be created will be jobs for the highly skilled: engineers, doctors, data scientists… This could further exacerbate inequalities: unskilled workers will have trouble finding a new job in the digital economy. So, to meet the challenges in terms of training, upgrading skills and making the transition to the digital economy, substantially more public monies will need to be invested in these areas to limit the negative impact of increased inequality, and the difficulties of vocational reconversion for the least skilled workers.

 

Jean-Hervé LORENZI, Major at the Agrégation des facultés de droit et sciences economies (Faculties of Law and Economics) in 1975, is Chairman of the Cercle des économistes (the famous circle of French economists), holder of the Chair "Demographic Transition, Economic Transition within the Fondation du Risque (Foundation of the Risk)" and Chairman of the Pôle de Compétitivité (Pole of Competitiveness) "Finance Innovation". He is a member of the Board of Directors of the Edmond de Rothschild France Group, of the supervisory board of Euler Hermes and the Boards of directors (board meetings) of the Médéric Alzheimer Foundation, the IDATE and the BNP Paribas Cardif. He was Professor at the university Paris-Dauphine and the member of council of economic analysis. He has notably published: Un monde de violences. L'économie mondiale 2015-2030, Paris, Eyrolles, 2014; Rajeunissement et vieillissement de la France (with J. Pelletan and A. Villemeur), Paris, Descartes & Cie, 2012; Droite contre gauche, (with O. Pastré), Paris, Fayard, 2012; Le fabuleux destin d'une puissance intermédiaire, Paris, Grasset, 2011; Le choc des populations: guerre ou paix, (in collaboration with P. Dockès), Paris, Fayard, 2010.

 

 More information on DigiWorld Economic Journal No. 103 "Digital Innovation & Finance Transformation" on our website

Subscribe to our newsletter and keep up to date with events and latest news.

 

26oct/160

Internet of Things markets The promises of a very fragmented market

ROPERT_Samuel

Samuel Ropert
Lead IoT Expert , IDATE DigiWorld
Contact

Although the Internet of Things is a powerful concept, it is not necessarily a market in and of itself. IoT encompasses a very disparate array of fields that need to be examined separately, to obtain an accurate understanding of their particular features, and their true growth potential. 

 

More operationally, beyond cost savings opportunities (mainly through various internal optimisations), with more and more connected objects, new services will emerge – chiefly through the connectivity itself (remote control applications), but also via the data generated by the machines. Leading industrial heavyweights already have their own data-oriented department.

On the industrial side, two approaches can be distinguished: traditional machine-to-machine and the ‘industrial internet’: the latter referring to an interconnected ecosystem and the former to a more siloed approach. In the main, the creation of value in the industrial Internet lies in data collection and analysis. The main question then for market players is how to collect data and analyse them, to then generate revenue. The bulk of M2M revenue should come from software and IT integration as primary applications, with the aim of enabling massive savings within verticals. Consequently, all providers are working on delivering an end-to-end solution with a strong service bent – even if this might require acquisitions for some verticals.

Applied to the consumer world, the Internet of Things (IoT) refers to smart home and connected objects in general, relatively new markets that are starting to take off. Even if questions are being raised over the sustainability of their adoption. The main reason is the lack of services attached to these objects, apart from remote use, through a mobile app. Many applications would be based on data generated by those things. However, unlike the industrial market, data privacy is a major concern here as it involves consumers’ approval. The blurred lines around privacy regulation have made all of the ecosystem’s players reluctant to provide consumer market solutions. Another hurdle is to determine what value-added comes from connecting these objects, and how to monetise the data they generate: will all objects be connected? Will all data be valuable? If so, how valuable?

 

DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS

 • M2M: a new momentum, Automotive, Consumer Electronics & Utilities the main drivers for consisting growth, Dec. 2015

Smart Home, A promising market, taking off slowly, Dec. 2015

Telcos’ Connected Objects Strategies, How to compete with OTT players, Apr.2016

Industrial Internet, Towards the 4th industrial revolution, June 2016

 Subscribe to our newsletter and keep up to date with events and latest news.