Tag Archives: Payments

LFP102 – Special Episode! Entrepreneurship + Can App Banks Become Proper Businesses? w/Ricky Knox CEO Tandem Bank

App Banks are following many courses with many motivations. Who better to guide us through this ever more complicated maze of motivations and destinations than Ricky Knox, Founder and CEO of Tandem Money/Bank and serial entrepreneur sans pareil.

inter alia (alia being things like Insead) Ricky founded GSM Systems in 2003 (where he remains non-exec chairman) which now has partnerships with >170 mobile operators in >70 countries.

In 2005 he founded Small World Services taking it from inception to a Top10 global money transfer businesses with nigh on $5bn annual turnover.

Not content with these laurel leaves he founded the well-known Fintech Azimo in 2012 which does remittances to 198 countries globally, has half a million customers and more than 270,000 cash pick-up locations worldwide.

In 2015 he founded Tandem Bank, which (another inter alia) bought Harrods Bank – which certainly makes it a standout in Fintech as a whole, let alone in the App-Banks sub-sector.

All of which background (and more not included!) makes him ideal to discuss whether the current crop of App Banks are going to turn into real businesses – you know those businesses that are self-supporting and whose revenues are higher than their costs 🙂

Topics discussed include: Continue reading

LFP097 – Open Banking – Damp Squib or City of Revelations? Nigel Verdon Railsbank

Many electrons have been agitated to produce patterns of light and dark on this topic. Which is probably more interesting aphenomenon than the average article on Open Banking. Ignore it we cannot however and uber-Fintech Guru (in the true sense, not self-penned LinkedIn encomium) Nigel Verdon, founder of Currency Cloud and now founder and CEO of Railsbank joins us to work out what is really going on and where challenges lie.

Nigel is no mere Fintecher with his own opinion. Way back in LFP024 Nigel shared his experience of 25yrs in Fintech – and hardcore fintech at that from doing the first online FX deal in 1992, through running digital markets at Dresdner Kleinworts to founding Currency Cloud. Since when he has VCed and now for some time been CEO and founder of Railsbank.

So someone with a very informed opinion.  Open Banking is very much an evolving topic. So LFP060, an overview with Paul Thomalla at ACI Worldwide, is still #2 in the LFP all-time download charts.  As recently as LFP087 Louise Beaumont argued that its not really about tech & reg but far more about strategy.

Topics discussed on the show include: Continue reading

LFP094 – 2018 New Year Special! Fintech Tour d’Horizon, Report Card & Its Context

In this New Year Special I’ll survey the state of the art and present a report card for each of the main  Fintech sectors – P2P, Bitcoin, Blockchain, Money, App-only banks, Insuretech, Digital I.M., Regtech, Payments and a deeper dive into the leading AI of 2017. We also examine the broader context for Fintech – namely US Tech Giants who had a seismic shift in 2017.

No awards as such this year but plenty of honourable mentions and a host of goodies for those of you in search of new ideas.

Topics discussed include:  Continue reading

LFP086 – What a 21stC Clearing Bank can do for you with Nick Ogden, Executive Chairman ClearBank

Nick Ogden is, inter alia, the founder of the FTSE Worldpay and a bunch of other interesting businesses. In 2014 he created ClearBank the UK’s first clearing bank for 250yrs and is setting out to show what a modern, hi-tech clearing bank can offer existing Banks, Fintechs and Corporates.

Its mission is “to create greater competition, transparency and leading edge technology to the banking market.”

 

Historically the function of Clearing Banks were to clear cheques when there were hundreds of banks in the Uk and traversing the country took days.

This function expanded and now Clearing Banks clear payments of all natures – in the UK FPS, CHAPS, BACS (Direct Debits et al). Clearing banks are basically the experts at “transaction banking”.

But onto the show – how do you disrupt an oligopoly – four clearers control most of the market?

What can one get if one starts with a fresh tech stack rather than piling more on top of tops?

This topics and much more discussed on the show include:  Continue reading

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

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

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

LFP060 – PSD2 & Open Banking in UK & Europe with Paul Thomalla ACI Worldwide

ACI London Fintech PodcastI’m delighted to be joined by Paul Thomalla expert on the upcoming changes in open-banking, SVP at ACI Worldwide, member of the Payments Strategy Forum (PSF) and board member at Nexo Standards.

Upcoming changes re opening payments to non-banks and opening access to bank account data will change the industry. On top of this we have UK and European initiatives in re (even before Brexit). It’s all swirling round and I thought we needed a guide to clarify where it all is and where it’s all going.

Paul Thomalla SVP global corporate relations and business development CASUALBut first some intros to Paul’s hats.

ACI Worldwide, founded in 1975, is one of these perhaps behind the scenes incumbent payments companies that most of you may not have heard of. Suffice it to say they do $14 trillion of payments per … wait for it … day (!!) Interestingly staff numbers are around 5,000 so that looks to me like $3bn per staff member per day. Either their fingers move fast or do you know what … incumbents can use tech as well or even better than those assailing the castle might ever think.

Lazy Fintech commentators and those with little experience in FS – two categories summed up in many a LinkedIn so-called thought leader article – often talk about FS as if FS were basically almost entirely Banks. As listeners to the show will know its far from that. There is a vast ecosystem of players into which Fintechs are trying to find themselves a place at the table.

In LFP049 we had the pleasure of talking to Rich Wagner, Chairman of the Emerging Payments Association. The Payments Strategy Forum is another player in the equation – Paul can explain the whole meta-process of how incumbents, startups, associations and forums and the regulator and legislators interact to produce the FS world we live in.

Oh yes and we start the show with a story which will take the all-time London Fintech Podcast record for anecdotes – taking an ex-US President to a pub in London.

Topics discussed include: Continue reading

LFP058 – Exchange Traded Funds (ETFs): Tutorial, Bitcoin, Blockchain & Fintech with Laurent Kssis CEC Capital

CEC Capital

Today I have the pleasure to be joined today by Laurent Kssis MD of CEC Capital who has worked in the ETF industry for 14years. We’ve spent a few episodes recently in the heady heights of the super-big picture so let’s get back to the coalface and dive in depth into an important area of FS.

ETFs – Exchange Traded Funds – have been many times on the London Fintech Podcast, always in passing, so I thought it was more than overdue to attack them head on.

Like Banquo’s ghost in Macbeth ETFs are the thing that haunt the whole Investment Management Fintech scene … if, in essence, you can gain exposure to equity markets in a balanced way via a vehicle with minimal fees what exactly is there for Investment Management Fintech to disrupt?

Laurent KssisLaurent certainly has feet in both #oldFS and #newFS camps being the non-exec chairman of the Blockchain investment company Coinsilium. So he is the ideal expert to talk to us about this sector today.

Conceptually ETFs started life as traded funds – if you like index-tracker investment trusts – although why they weren’t just called investment trusts is a question for Laurent. According to wikipedia since 1993 in the US where they were first created an unbelievable $3trn have been invested in them. They have also moved a long way from their origin as index-trackers with (quoting wiki) “By the end of 2015 ETFs offered 1,800 different products covering almost every conceivable market sector, niche and trading strategy”.

So that’s ETFs per se. But like everywhere in FS the wave of innovation that is Fintech is lapping on many shores. If ETFs have inhibited the growth of one area of Fintech what is Fintech doing to them? Listeners will certainly get their money’s worth today as we range from a tutorial on the basics of ETFs through Bitcoin ETFs to blockchain – a huge waterfront.

Topics discussed include:

– how Laurent’s career led him to being an expert on ETFs and progressing that into hot areas like Bitcoin and Blockchain

– the relevance of the “transition management” world [what happens when one fund manager takes over eg a pension fund from another]

– an ETF is a “marketable investment vehicle that allows you to buy and sell during trading hours of the Exchange a basket of stock/bonds/commodities through a single share”

– comparing and contrasting investment trusts and ETFs; management fees, transparency, NAV calculation, premia/discount ranges

– the multiplicity of ETFs eg there are around 50 different ones on the Euro Stoxx 50; different exchanges, currencies, market timezones leading for challenges for  market makers in setting prices, hedging themselves etc

– “trading channel” effectively the arbitrage channel is the range in which ETFs trade compared to their underlying components; over a decade ago this could have been as much as 10%/+5% to -5% (“quite extortionate”) but then illiquid, hard to hedge against;

– this changed rapidly when institutions started to get involved in larger size

– management fees (“TER” – total expense ratio) typically, on ETFs such as Euro Stoxx 50, have gone from ~0.65% a decade ago to ~0.12% today

– ETFs are allowed in ISAs, SIPPs, 401k

– in 401k’s over 50% of the investments are in ETFS (!)

– ETFs are UCITS compliant (which allows passporting into Europe), registered mostly in Ireland and “tax-advantageous” locations (Jersey/Guernsey/Luxembourg)

– ETFs are open-ended they can increase in size at any point (depending on demand:supply); how this is done

– ETFs are undergoing a huge explosion in diversity – you can buy almost anything via ETFs – gold silver, precious metals, industrial metals, agricultural products

the huge opportunity for Fintech in providing a more up-to-date angle to investing in these; the tendency of the first wave of Investment Management Fintech to just replicate investing in the same boring old stuff as existing I.M. firms (core equity markets and bonds for example)

– a whole interesting tale about Bitcoin ETFs and what Laurent learned on that journey – you’ll have to listen to hear that tale 😉 …

– the difference between ETFs and ETNs (Exchange Traded Notes)

– the recent Bitcoin hacking through BitFinex and how it differs from last years MT Gox; a high quality exchange, the role of regulation in re; hot wallets and cold wallets – a painful tale all round 🙁

– blockchain versus bitcoin

ETFs were new once and have been a great success – what can Fintech learn from that (you’ll have to listen ;-)) …

– ETFs have had a rough ride too – from journalists to scandals…

– an overview of Coinsilium – the world’s first listed blockchain publically listed investment company

And much much more 🙂

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