BCG-华平基金金融科技项目商业尽职调查项目建议书-20140109.pptx

1、Financial technology due diligence Proposal for support 9 January 2014 WP-Fintech DD-09Jan14-NG-HKG-Final.pptx 1 Copyright 2014 by The Boston Consulting Group,Inc.All rights reserved.Agenda Introduction and context Chinas fixed income markets:BCG perspective Global learnings financial market data pr

2、oviders Project approach Appendix:recent project experience and team WP-Fintech DD-09Jan14-NG-HKG-Final.pptx 2 Copyright 2014 by The Boston Consulting Group,Inc.All rights reserved.Your BCG team today Nick Gardiner Tjun Tang Jimmy Feng Asia Pacific Leader for Financial Institutions Extensive consult

3、ing project work in global and domestic retail,corporate and investment banks in China and Asia Pacific Advised several global financial institutions on market entry into China,strategic planning,partnership development Partner,Hong Kong Leads Capital Markets segment for Asia Pac Focus on wholesale

4、and institutional business,working with investment banks,trusts,asset and wealth managers,including looking at bond market opportunities Past experience in due diligence Qin Xu Principal,Hong Kong Focus on securities firms,corporate banking,trusts and JVs Designed business strategies for securities,

5、brokers and asset managers in Greater China Previous experience with Societe Generale in credit derivatives,risk management Xinyi Wu Partner,Beijing Head of PE Practice for Greater China,leading engagements in multiple industries including FI,and technology Expert in strategic and commercial DD,PE a

6、nd investment-related projects Multiple DD projects with Warburg Pincus Project Leader,Taipei Extensive experience in financial institutions and technology-related projects Prior commercial due diligence experience Professional background in technology,telecommunications and R&D,working in US and Ta

7、iwan WP-Fintech DD-09Jan14-NG-HKG-Final.pptx 3 Copyright 2014 by The Boston Consulting Group,Inc.All rights reserved.Our understanding of the situation and your needs Warburg Pincus is assessing an opportunity to invest in a Chinese financial technology company,Sams Co,which provides financial data

8、for OTC bond trading Sams Cos core offering is real-time price quotes sourced directly from inter-dealer brokers Sams Co sources pricing data from 4 of 5 inter-dealer brokers in China to whom it provides ERP systems Sams Co believes it is currently the only company that can offer this capability:com

9、petitors are able to provide only ex post prices based on executed trades Sams Co has started to build a downstream user community,and is seeking to build a business model around a broader offering Currently 600 downstream FI clients access the data via 4,000 terminals for free Sams Co estimates its

10、 footprint now covers 50-60%of the OTC bond market(by volume)Additional asset classes planned:Money Market,IRS,CDs,FX,NDFs(focus remains OTC)Potential new services similar to a Bloomberg type offering(eg.messaging,trade blotter,analytical tools,workflow solutions)Warburg Pincus seeks external suppor

11、t over 4 weeks to validate key areas of Sams Cos business model 1.Chinas OTC fixed income market trends and growth prospects 2.Competition and market dynamics in the financial information sector,including threat of disintermediation(by inter-dealer brokers and market infrastructure players)3.Client

12、segmentation,needs and trading behaviour of Sams Cos current and potential client base 4.Revenue model and value proposition for Sams Co 5.Sams Cos growth strategy,financial forecasts and management WP-Fintech DD-09Jan14-NG-HKG-Final.pptx 4 Copyright 2014 by The Boston Consulting Group,Inc.All right

13、s reserved.Key issues to be addressed Outlook&trends in Chinas OTC fixed income market 5 year forecast for size and composition of the OTC markets,by asset class:revenue pools,new issuance volumes,trading volumes,liquidity levels Key drivers of growth by asset class:primary issuance,regulatory chang

14、es,technology trends,emergence of electronic and algo trading Role and share of different market participants(brokers,big 4 banks,JSBs,Securities,Trusts.)OTC trading value chain mapping for market participants,infrastructure and data/service providers Competition in financial information sector Posi

15、tion of existing data competitors(WIND,GTA,Reuters,Bloomberg),market infrastructure players(eg,CFETS),other software houses Competitors ability to compete in OTC markets,their installed base and access to Sams Co clients Potential for disintermediation:by brokers(eg if data exclusivity lost),by big

16、4 banks(via own market-making),by market infrastructure players Client segmentation,needs and behaviour Segment potential user base by type of institution,relative scale in market,trading styles and strategies and financial data/services needs Mapping of Sams Co and competitor offerings to client needs,identify white spots,differentiators Stickiness and switching costs for Sams Cos offering by segment Clients willingness to pay:which products/services create client value and have limited substit