Tag Archives: Banking

LFP079 – Diving Into UK Challenger Banks with Darren Meek London FS Lead at PwC

Twenty or so new banking licences have been granted since 2010. The UK Retail Banking Sector is incredibly diverse but this is often disguised by the single label of “Challenger Banks” which hides far more than it reveals. UK Retail Banking is a very diverse sector with players with very different focuses and motivations.

In compiling their report “Who Are You Calling A Challenger Bank?”, PwC has interviewed dozens of CEOs and senior executives and, worked with YouGov to establish consumers’ views and preferences. In doing so they have produced a grounded, well-researched analysis (it’s free – check it out) that sheds light on how competition is improving customer choice and driving innovation in UK retail banking.

Darren Meek has 26 years at PwC and joins us today in conversation about the must-know, main important themes of the vibrant scene that exists today.

Topics discussed include:  Continue reading

LFP077 – Capital Markets Fintech with Mark Beeston founder Illuminate Financial

Today we aim at the beating heart of FS – its IT systems. I am delighted to be joined by Mark Beeston founder of Illuminate Financial who has over two decades of hardcore FS experience trading derivatives, COO- and CEO-ing, to discuss Capital Markets Fintech.

A lot of Fintech is B2C, some is B2B but there is a whole chunk trading under the Fintech rubric which aims not to disrupt the provision of FS but rather enhance the incumbents. Disrupting existing IT vendors to FS not FS.

Illuminate Financial are Capital Markets VCs extraordinaire. Their claim is “we cross the chasm between enterprise Fintech and the Financial Institutions it should serve”. I can do no better than quote further re where this gulf comes from:

Regulation is increasing, the industry is deleveraging, and compliance is becoming ever stricter.

Financial institutions have been slow to adopt new technologies, while vendor management and procurement processes are focused on contracting multi-million dollar enterprise solutions from billion dollar corporations.

In doing so, they often overlook the innovative lower cost and highly scalable solutions offered by newer and more entrepreneurial suppliers.

Organisations know that the answers may lie in Fintech. Yet the ever-growing hype around the subject has made it more and more difficult to distil the signal from the noise.”

Topics discussed include:  Continue reading

LFP075 – Managing Fintech Rebundling with Nikolay Storonsky CEO of Revolut

One of the founding ethos of Fintech was “unbundling” – the slicing of FS into single-issue firms. This is now looking old-hat. Revolut acquired 500,000 customers in less than two years by offering interbank rates on FX transfers and so was one of the most successful of Fintech 1.0.

Now they are leading the way with Fintech 2.0 offering a whole range of products. Managing this transition with respect to both “the brand” and “the app” is not trivial and I am delighted to be joined today by co-founder and CEO Nikolay Storonsky.

Unlike Monzo who have gone down the banking route but Revolut have remained with the simpler/cheaper/faster but narrower e-money issuer licence.

 

Topics discussed on the show include: Continue reading

LFP072 – Socially Beneficial Fintech & Personal Cashflow Management with Emanuel Andjelic co-founder of Squirrel

Squirrel’s self-description is:

a smart new way of budgeting and saving that helps you resist that temptation to spend. We work in partnership with employers, local authorities, housing associations and credit unions to bring better money management to the widest possible audience.

Squirrel’s 7,000 clients range from those on benefits to those earning more than £100k – as Emanuel puts it “there are spenders and savers” and this tendency he believes is already formed when a child is still in single digits – and hence in place later regardless of adult income levels.

In this episode though, for the main course we focus on “socially beneficial Fintech” – or in less euphemistic terms what Fintech as a whole can do for those with little money. All too often the vast majority of Fintech – for all the PC buzzword terms like “financial inclusion” ends up just being a tool for the top 1%/10%.

Recent benefit changes in the UK have led to significant problems for folks who are unemployed or underemployed and these are only going to get worse if current plans are rolled out further. In this episode Emanuel, co-founder and Chairman of Squirrel takes us on a deep dive into the economic circumstances and changes. He also talks very honestly about his own personal and significant struggles with debt.

In this show topics discussed include: Continue reading

LFP069 – IFAs, Fintech & Roboadvisers with Dan Kiernan Research Director Intelligent Partnership

IP banner for London Fintech Podcast“Everyone” frets over financial advice in the Fintech Age. Regulators set out to “protect the consumer”, worthy bodies talk no end about the need to protect “people” (never themselves oddly – generally they imply (/mean) folks of lesser education/wealth) and the rest of us are just confused over the labyrinthine rules around tax, savings and investments.

Needless to say a myriad on rules and regulations and the implicit costs of this suprastructure all act together in a Kafkaesque way to produce the opposite result – known as “the advice gap”.

In Fintechland breathless media and PR firms high on sugar, caffeine and other stimulants promise us a golden era of so-called “roboadvice”.

Dan KiernanHow to make sense of all this?

I am delighted to be joined today by Dan Kiernan Research Director at Intelligent Partnership “the UK’s leading provider of research, training and events on Alternative Investments” to cut through all this and to give us insights into why advisers are not recommending eg P2P to their clients when it has outperformed bank deposits for more than a decade.

On the show today we discuss all of the above and: Continue reading

LFP068 – The London Fintech Podcast’s 2016 Highlights and 2017 Awards

Dilbert by Scott Adams - Fintech 2016 turns into Fintech 2017Happy New Year boys and girls 🙂 May 2017 be a great one for you and yours! This is the New Year Special where I look back at my 9 highlights from 2016, dish out 10 immensely prestigious awards  and take a peak at 2017.

So without futher ado lets kick off the awards… Continue reading

LFP067 – Rethinking Banking: Marketplaces and App-Only Banks with Tom Blomfield CEO Monzo Bank

LFP Banner MonzoReformation or refactoring of banking is the Holy Grail of the Fintech Revolution. Do that and the revolution is a big deal. Get nowhere near and its all rather marginal. So-called challenger banks have ended up rather same-y. Will “App-only” banks end up going down the same route forced my micro-regulation and micro-supervision into the same tight mould. Or will they somehow remain within the constraints of the mould but somehow break it at the same time?

Its that paradox that faces Tom Blomfield CEO and founder of Monzo Bank. (and co-founder back in the day of GoCardless who were on the show in LFP046) A long way towards full authorisation as a bank will they become merely “me-too” or will they refactor banking as we know it?

Tom BlomfieldI have been an interested spectator on the sidelines for come time wondering which way the ball will bounce. At Lendit Europe 2016 I finally succumbed and took one of Tom’s pre-paid Mastercards – not least as which they offer wholesale exchange rates abroad and I was just off on holiday. It’s actually quite cool and more useful than expected. Certainly one gets a clear idea of what its like to feel like the business is really focusing on you as a customer-centric organisation with great design and service.

But back to the big picture – will Tom change the mould or will the mould change Tom?

Topics discussed include: Continue reading

LFP065 – Special Episode! Creating Society – Policy, Regulation & FS with Lord Turner former Chairman of the FSA

"Inspiring the economics profession to engage the vital social and economic challenges of the 21st century"

“Inspiring the economics profession to engage the vital social and economic challenges of the 21st century”

Everything exists in a context. FS is a social construct that has differed massively over time and space, always existing in a context of Policy and Regulation.  Over my 30 years in FS I have seen deregulation time turn into hyper-regulation. Talk about pendulums (pendula?). Where do these changes in Policy and Regulation come from? How does the “game” of setting the rules for the “games” work?

Adair_TurnerIn LFP065 I am delighted to be joined by Lord Turner who headed the FSA from a few days post Lehman’s crash (“welcome to your new role…”) and was intimately involved in the years-long process of the creation of the Basel 3 global regulations for banking.

Apart from wearing these FS hats (with more background in FS per se) he has worn the BigBiz hat when he headed the CBI and the state/social-good angles when he chaired the Pensions Committee, the Low Pay Commission and the Committee on Climate Change in the UK.

He is also an academic and an author and his latest book “Between Debt and the Devil: money, credit and fixing global finance” dives deep into the nature of money and banking. As a taster I recommend his YouTube talk at the LSE. He is currently Chairman of the Institute for New Economic Thinking.

So there is literally no-one better to guide us through the whole set of processes whereby policy “emerges”. How does the world change? Where does policy come from? What are the roles of academics, bankers, lobbying groups, politics, government, regulators? Do the people ever get a look in?

We start by examining the backdrop to the past 30yrs in FS and in understanding that give an understanding of where we are in the cycle of current crises leading to new ideas and future Policy and Regulation

This is a special episode – both in length and content – it’s nigh on impossible to make enough notes on this without it turning into a transcript .. however key points include: Continue reading

LFP064 – P2P in the US, China and UK with Peter Renton

Lendit US 2017After organising nearly 1,000 folks in the O2 for Europe’s largest P2P conference ever I managed to grab Peter long enough to have a fascinating tour of the globe and P2P sitrep in the three major hubs.

Peter Renton PhotoPeter Renton has perhaps has more of a broad and deep understanding of P2P worldwide than anyone.

When he first came on the show way back in LFP015 he shared with us the fascinating history of US P2P with its hugely up and down roller-coaster road.

Since then he has created the world’s go-to conferences on P2P in the US, China and Europe which gives him a unique insight into what’s what and where.

It’s a big world and P2P is a vast domain these days so there is plenty to discuss. Key topics are: Continue reading

LFP063 – Special Episode! A Deep-Dive into AI, Machine Learning, Big Data & FS w/Dr Tristan Fletcher Research Director Thought Machine

ThoughtMachine_Podcast_FINAL

I am delighted to be joined today by Dr Tristan Fletcher Research Director at Thought Machine to talk about Artificial Intelligence and Machine Learning in Financial Services. His Linkedin strapline is “I apply state of the art prediction methods from the Machine Learning (Artificial Intelligence) academic community to real world problems”

Tristan FletcherThis is a mega hot topic right now and also one all too often hyped beyond all belief and frankly credibility.

For some time I have been on the lookout for someone with real depth of knowledge in this area. When attending and also moderating a recent InSync event at the Tate Modern  I was impressed by Tristan’s deep understanding and also groundedness – the basic angle (or to be more precise my takeaways on his views ) being “all this stuff has been known to academics for a long time” and “many aspects of it are exaggerated and in many ways it has become more of a marketing tool”.

So the point of this show is to put it all back in proportion.

What is AI? I mean what is it really when one isn’t reading it in some journalistically overblown tech piece. What is machine learning? Are neural networks like the brain? How big is big data and does it contain all the answers? All these and more we will cover and I hope and am sure that you will go away far better briefed than before.

Tristan spans academia , FS and entrepreurialism. Academically he has studied at, or had fellowships with, Cambridge, Imperial, UCL and Sussex. FS-wise he has worked at senior levels in prestigious organisations in asset management and trading. Entrepreneurially and have worked with / founded start-ups in these domains.

Oh yes and apart from all this he has also applied machine learning to medicine (Imperial College London), supply chain management (Unilever) and even fine wine pricing.
So it’s another show where my teams of researchers have found me a guestwho is a collousus bestriding his world. And as always its another great show for my analyst who will have to hear me moaining more about my own punyness in the face of greatness.

Plenty discussed including: Continue reading