FinTech for Breakfast
Held on Wednesday, July 12, 2017, 8:30-10:00am
With support from Dentons
Izabella Kaminska (FT Alphaville)
Shaun Port (Nutmeg)
All suggestions welcomed at: firstname.lastname@example.org
Cyber, Payments & ID
- The malware “NotPetya” swept through Ukraine (including the national bank) and outwards, capturing some well-known scalps.
- The Financial Stability Board cited 3rd party IT suppliers and Cyber Security as its two biggest concerns in its Financial Stability Implications from FinTech report.
- On cue, a number of challenger banks reported online payments issues allegedly triggered by a 3rd party supplier.
- PayPal’s peer-to-peer payments platform Venmo is popular with millennials – and possibly also narcotics dealers, according to LendEDU.
- AI was the biggest buzz at the Money 20/20 conference, with BBVA the most talked about brand following comments on deploying “AI” in the customer experience. In fact, AI has had so much buzz this month it merits its own section.
- Mastercard announced that Citi will be deploying its Decision Intelligence anti-fraud technology.
- FICO reported on the surge in card not present fraud in 2016, while stressing its own AI credentials.
- Wired reported on the use of machine learning in Counter Terrorist Financing.
- The FT had a nice piece on validating how AI arrives at its outcomes.
- Meanwhile, the use of AI in financial advice and execution was one of the most commented on areas of the European Commission’s consultation on FinTech.
- On the subject of AI in financial advice, the FCA’s Financial Advice Market Review Baseline Report estimated that automated advice accounts for less than 1% of the UK retail investment market.
- Although it’s currently only a drop in the investment management ocean, robo- is attracting significant investment: BlackRock invested in Scalable, Barclays expanded its “Ready Made” proposition, and HSBC, Lloyds, Santander and others have offerings in the works.
- The second cohort of firms in the FCA Project Innovate Advice Unit were announced this month. From June 30, the FCA will accept firms into its programme throughout the year, and accept firms producing mortgage, general insurance and debt advice (in addition to those providing pensions and investment advice).
- Whether the FCA and FAMR are fostering the adoption of data-enabled advice fast enough attracted some comments from our guest, Nutmeg’s Shaun Port.
- Meanwhile, the Pensions Dashboard has come under fire from Sir Derek Morris, and others.
- The UK’s Open Banking programme is starting to take shape with publication of the APIs for transaction data and payments initiation.
- Alasdair Smith from the CMA made some notable comments to the BBA Retail Banking conference, including: "there will be a competitive rebalancing in the market; indeed it’s possible that the FIIC (free-if-in-credit) personal current account could disappear." Full speech here.
- Danske Bank, one of the 9 mandated institutions subject to the CMA’s market remedy, published its own open banking beta.
- Izabella called peak hype for blockchain, while Zack Korman criticised the “solution to a non-existent problem”.
- Quartz reported that the processing power required to mine Bitcoin is currently so intense that criminals are no longer trying to hijack systems to mine it.
- UniCredit put out a piece under the self-explanatory heading: “Cryptocurrencies: They aren't money but the technology is here to stay”.
- None of the above put any dent in the still-booming Initial Coin Offering market. Whether ICOs should be regulated remains a point of concern for the industry and for regulators, with the PBoC being the latest to moot supervision.
- Izabella had some thoughts on Central Bank Digital Cash.
- Ant Financial announced a pilot project to take the city of Fuzhou (population: ~5 million) cashless.
- Willis Towers Watson invited us to imagine a world in which “AI-enabled blockchain smart contracts self-issue a personalized insurance policy”.
July’s session clashes with “London FinTech Week”, or at least with an hour and a half of it. For those of you not wandering around in lanyards, Izabella Kaminska of FT Alphaville will be on hand at Dentons to provide the usual monthly digest of all things FinTech.
Joining her we are pleased to welcome Shaun Port, chief investment officer for Nutmeg and evangelist for data-enabled financial advice.
As ever, our agenda will be up-to-the-minute (and you’re very welcome to contribute your own suggestions). As a flavour of the things we’ve spotted so far this month:
- BlackRock bought into Scalable Capital amid a flurry of announcements in the world of robo-advice;
- Crypto-currencies are (at the time of writing) continuing their volatile bull-run and Charlie Shrem – “Bitcoin’s first felon”, according to Fortune – is out of jail;
- Izabella is (perhaps wishfully) calling peak hype for Blockchain;
- ESMA has responded to the European Commission’s paper on FinTech; and
- Everyone who is anyone in Payments is in Copenhagen for the Money 20/20 Europe conference.
If you (or a friend/colleague) would like to join us to share your own experiences, please let us know by calling 0207 621 1056 or emailing email@example.com. As usual, thanks to Dentons’s hospitality, there will be tea, coffee and buns.