Posts

How to succeed in fintech and influence people

Once upon a time, I was sitting in Barclays head office on Lombard Street, writing a crystal ball briefing on the growth and threat posed by financial technology for the CEO.

The briefing was printed out and faxed to him because I didn’t have an email account from which to send it. They hadn’t sorted them out for the lower tiers yet. Oh, the sweet irony.

Fast forward a *few* years and fintech is now white hot and getting hotter. The sector has sky-rocketed this year, with worldwide global investment in the sector for the first half of 2018 exceeding the whole sum value of 2017.

It has been the breakout success story for London.

Where the Silicon Roundabout has failed to deliver on its hype and deliver us with a home-grown tech giant, the city has busily output dozens of outstanding, world-class, fintech firms.

Not wishing to crow, but London has received more investment in its fintech sector than any other country in the world, with over $16.1 billion of inbound investment during the first half of the year. That puts it firmly ahead of China ($15.1 billion) and the US ($14.2 billion). That is a success story, right there.

But the UK’s position as the leading fintech hub is by no means guaranteed. The history of financial markets teach us that liquidity is hard to shift – but when it moves, it moves fast.

So to Sydney

Australia’s magnificent capital – with a AU$60 billion ($43.3 billion) financial services industry. Think tank, Australian Fintech, estimates the sector has the potential to take up to 30% of revenue from traditional banking in Australia over the next few years, a prize worth a cool AU$25 billion (18 billion).

And so the banks, acutely aware that their lunch is under threat, are converging in Sydney for Sibos, the annual conference, networking event and shopfront for Swift’s services.

With its frequently brilliant Innotribe sessions and a solid line-up of speakers and panelists, the event has become a curious arena. It is hosted by an older, more established technology and payments infrastructure, but offers a safe space for challenger start-ups to engage, network and meet potential bank customers.

With start-ups to the left and shareholders to the right, banks may feel like they are in the squeezed middle. But in truth, finance and technology have become inseparable over the past decade or two. Crucially, the banks still hold the cards, the liquidity and the capital.

Fintechs need the banks. They have the markets, connectivity and ultimately the influence over any change to existing systems. And the banks, for their part, have been excellent investors and partners. They continue to engage and partner with fintechs – investing, encouraging, collaborating and beta testing. It was always going to be this way.

The bulldozer approach of some self-titled “disruptive” start-ups, where you build an alternative system and then trying to slam it into an existing market, simply does not work.

First on fintech

Chatsworth knows a fair bit about fintech. We were the first marketing and communications agency to focus on this sector, working on electronic broking, online banking and market data with systems like EBS, CLS, ICAP and Barclays.

Over time, the story and clients moved onto prime brokerage and API trading, through to today’s blockchain-inspired technology, smart analytics and machine learning. The markets and technology have evolved, but the methods and indicators of success remain the same.

We have launched and supported both larger infrastructure providers as well as some brilliant start-ups such as Previse, which tackles late payments for businesses, and Mosaic Smart Data, which applies smart data and analytics to wholesale financial markets.

Then there is R3, the breakout story in the enterprise blockchain space and the fulcrum for those looking to apply this technology to professional markets. Their model of engaging and working with banks, financial institutions and regulators right from the start has paid dividends, with over 200 organisations contributing to the development of the Corda platform.

This is ground-breaking innovation – delivered by super smart people who know markets and understand technology. They are working with banks and their customers to tackle real-world problems.

Traits of a successful fintech

So, what is the shared DNA of successful fintechs? Firstly, the combination of financial markets experience and technical and engineering excellence within their teams.

Second, an absolute focus on engagement with the existing market infrastructures to work and define the use cases before development.

And last, a seemingly inexhaustible supply of energy, drive, curiosity, and intelligence.

Of course, everyone says they are specialists in fintech, and blockchain in particular, nowadays – witness the sheer volume of self-appointed advisors and PR “specialists” on LinkedIn.

In truth, this gold rush of the inexperienced is partly to blame for an over-cooked news and hype cycle which inevitably sets unrealistic expectations for speed of adoption.

So choose your advisors wisely and trust your reputation to the best hands. They will articulate and tell your story with confidence, creativity, and commitment.

Wishing everyone a fantastic and productive Sibos 2018.

Chatsworth’s fast five for fintechs
  1. Focus your competitive fire on inefficient models – not individual organisations. Build relationships with firms and incumbents dealing with the same market challenge. Remember, a rising tide carries all boats.
  2. Know your AML from your KYC – digitisation to regulators signals potential facilitation of money laundering and terrorist financing. Engage with them.
  3. Don’t tech for tech’s sake – Stick to use cases with transformative potential.
  4. Don’t overuse “innovative” or “solutions” to describe your brand. This language is so clichéd and bland that it suggests the opposite.
  5. Collaborate and keep off the Kool Aid – engage with those who affect your ability to succeed and operate. But listen as well as talk, and don’t be afraid to change tack.

Thousands descend to Toronto as Sibos 2017 gets underway

Thousands of delegates flew in from around the world to Sibos to network, debate and discuss topical issues relating to business, technology and finance. The four-day annual event is organised by SWIFT, the global member-owned cooperative and the world’s leading provider of secure financial messaging services.

Sibos has a track record in attracting the highest calibre of speakers, and this year is no different. David McKay, President and Chief Executive Officer at RBC, was the chief guest speaker for the opening SWIFT plenary. He addressed a full audience alongside SWIFT’s Chairman of the Board, Yawar Shah, and SWIFT’s CEO, Gottfried Leibbrandt. Between them, they touched on the key events during the past 12 months, the industry challenges ahead, and SWIFT’s role in addressing them.

Fintech, transaction banking, blockchain, SWIFT gpi and financial crime compliance all featured on the agenda for day one, and announcements from SWIFT relating to the latter two sparked the interest of a few observers.

Anyone working in the B2B payments space, be it a bank, a corporation or a technology vendor, will be aware of SWIFTgpi. It was announced today that SWIFTgpi surpassed two million payments last month – rapidly becoming the new standard in cross-border payments.

More than 120 leading transaction banks, representing over 75% of all SWIFT payments, are signed up to the service. By doing so, they are utilising the innovative payments Tracker, a cloud-based application accessible via APIs. Banks embed the gpi Tracker information into their payments flow applications and front-end platforms, allowing their customers to track gpi payments in real-time.

This addresses a serious bugbear. Traditionally, when a corporate treasurer sends a request for a cross-border transaction to a bank, they have no visibility of what actually happens with that request. Treasurers often liken this to a “black hole”; they have no view as to when payment finality occurs or its final costs. This can lead to problems with suppliers or end-customers, not to mention increasing financial risks resulting from payment delays or non-compliance with regulatory requirements.

For all of the blockchain aficionados out there, SWIFT also confirmed it will provide a sneak peek of the results from the DLT proof of concept (PoC) relating to SWIFTgpi during Sibos, ahead of its conclusion in November.

Harmonsing international compliance standards

A major announcement relating to SWIFT’s Compliance division also became a topic of interest. SWIFT’s Know Your Customer (KYC) Registry, utilised by thousands of banks around the world is being aligned with the new Wolfsberg Due Diligence Questionnaire (DDQ) for Correspondent Banks.

This is the latest in a long line of close collaboration between SWIFT and Wolfsberg to address a broad range of compliance challenges facing the correspondent banking community and beyond. The Wolfsberg Group is a member of SWIFT’s Financial Crime Compliance Advisory Group and is made of thirteen global banks. It aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to KYC, AML and Counter Terrorist Financing (CTF) policies.

The Wolfsberg DDQ has been updated in response to an increase in regulatory expectations. Aligning the Registry with the Wolfsberg DDQ ensures coverage of up to 90 percent of the information correspondent banks typically require for KYC compliance, delivering major time and cost savings. By answering every Wolfsberg DDQ question directly on the KYC Registry, members benefit from increasing transparency and streamlined due diligence processes.

So, all in all, it looks like a busy but successful day at Sibos so far. Stay tuned on all things related to Sibos by following @Sibos, @chatsworthcomms or search #Sibos2017.

SWIFT and Chatsworth leading the debate at SIBOS, 2017

The Chatsworth team is proud to be supporting SWIFT at SIBOS, the world’s premier financial services conference, exhibition and networking event. What started out as a banking operations seminar in 1978, has grown into the premier business forum for the global financial community to debate and collaborate in the areas of payments, securities, cash management and trade.

Organised by SWIFT for the financial industry, Sibos has brought financial leaders together, over four decades, to network, collaborate and make sense of changes in the industry, helping to build an understanding of the forces affecting the financial community. 

 SWIFT is all about connectivity. The organisation remains the world’s leading provider of secure financial messaging services, providing a platform for messaging, standards for communicating and products and services to facilitate access and integration; identification, analysis and regulatory compliance.

 The organisation connects more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories. Headquartered in Belgium, SWIFT’s international governance and oversight reinforces the neutral, global character of its cooperative structure.

 The Chatsworth team will be in attendance throughout the event in Toronto, where the team will be working to support SWIFT in highlighting the challenges facing the financial eco-system and how their connectivity and experience can help. Chatsworth’s CEO will also be moderating some of the panel debates.

Get in touch

Email: swift@chatsworthcommunications.com   

Twitter: @chatsworthcomms

We look forward to seeing you there. 

Compliance stream at Sibos will explore implications of rapidly changing geopolitical and financial crime environment

Experts and regulators to address the new normal in sanctions, counter-terrorist financing, anti-money laundering, fraud, and cyber security

Sibos introduces a stellar line-up throughout the Compliance stream at this four-day event in Toronto. Multiple sessions will address the profound impact of the shifting geopolitical, financial crime, and cybersecurity environment. Panel debates and deep-dive sessions will cover topics such as the future of financial intelligence sharing; counter terrorist financing in the ‘lone wolf’ era; the potential of artificial intelligence to improve sanctions and AML compliance; and the fraud and cyber-crime ‘new normal’.

An ‘in conversation’ panel with Wolfsberg Group members will unveil the coming year’s priorities and trends. A Latin America-focused panel will provide an overview of the region’s banking compliance challenges.

Notable speakers participating in this year’s Compliance Forum include:

  • Jennifer Calvery, Global Head of Financial Crime Threat Mitigation, HSBC
  • James Freis, Chief Compliance Officer, Clearstream Banking
  • William Fox, Managing Director Global Head of Financial Crime Compliance, Bank of America Merrill Lynch
  • Neil Isford, General Manager, Watson Financial Services Solutions, IBM
  • David Lewis, Executive Secretary, FATF
  • Jerry Perrullo, Chief Information Officer, ICE
  • Denise Reilly, Wolfsberg member, Global Head of Anti-Money Laundering, Citi

Must-attend sessions include:

Counter-terrorist financing- are we really stopping the bad guys – 17 October at 9:30

Panelists will explore how can banks – and governments – adapt to stay one step ahead of the bad guys, what is working and what needs to work better, and whether stringent regulations are pushing legitimate actors outside of the financial system without actually preventing acts of violence.

Fraud and cyber high alert: The new normal? – 18 October at 9:30

As high-profile security breaches continue to reverberate, this panel discussion of experts from a range of industries will discuss the benefits gained from collaboration, the landscape of payment risks, and the skills that must be developed and recruited to protect institutions and the industry.
“In conversation” with Wolfsberg – Pressing priorities and trends 18 October at 15:30

A lively discussion with Wolfsberg representatives will discuss the industry’s latest challenges, trends, and the coming year’s priorities.

Read more about the Compliance stream on Sibos.com.

The Sibos streams enable attendees to build their Sibos agenda around the topics of interest to them.

Other Sibos Streams and Tracks include:

Banking

Technology

Securities

Standards Forum

Artificial Intelligence

About Sibos

Sibos is an annual conference, exhibition and networking event organised by SWIFT for the global financial industry. Next month, some 7,000 decision makers and topic experts from financial institutions, market infrastructures, multinational corporations, and technology partners gather in one place to do business and collectively shape the future of payments, securities, cash management and trade.

When: Monday 16 October – Thursday 19 October 2017

Where: Metro Toronto Convention Centre (MTCC)

Website: www.sibos.com

Contact: JoAnn Healy | Press@Sibos.com | +1 212 455 1802

Get your complimentary Sibos Press Pass today

Accredited journalists are welcome to attend Sibos free of charge. To obtain your complimentary press pass for Sibos 2017 Toronto, contact: Registration@Sibos.com.

Don’t miss your chance to be right in the middle of the news at the premier financial services event of the year.

Follow us on Twitter: @Sibos #Sibos

Follow us on LinkedIn: www.linkedin.com/company/Sibos

Top Canadian FinTechs to feature at Sibos 2017

 32 FinTech startups have been selected to participate in Sibos.

According to figures highlighted by the Toronto Financial Services Alliance (TFSA), Canadian investment activity in the FinTech sector from angel investors, Venture Capitalists (VCs) and corporate VCs increased from US$87.21 million in 2012 to US$367.51 million in 2016.

This doesn’t come as a surprise – the country has long been a pioneer in the digital arena. This extends back to the creation of the first truly smart smartphone, and the establishment of the world’s first Bitcoin ATM in Canada in 2013.

There are now hundreds of innovative FinTech companies, spread across Canada’s major FinTech hubs – Toronto, Calgary, Montreal and Vancouver.

These hubs are making a name for themselves on the world stage. For example, Vancouver has moved up 16 spots on the Global Financial Centres Index (GFCI) from #33 in 2008 to #17 in 2017. And in 2016, The Banker magazine ranked Toronto second amongst North American financial centres and 8th in the world.

Meanwhile, in Montreal, over 2,000 students graduate each year with degrees in Finance, adding to the nearly 100,000-strong talent pool that drives financial services in the city. And there are 1,556 financial services businesses in Calgary, where the Top 10 investment banks all have a presence.

To help some of the best local FinTechs showcase their solutions to a global audience, the Canada Lounge at the Metro Toronto Convention Centre (MTCC) will host 32 Canadian FinTech startups throughout the Sibos week. The Canada Lounge will be located in the Discover Zone (Level 600).

The startups will rotate throughout the week. Each day, there will be eight startups present in the Canadian FinTech Corner section of the Canada Lounge. Delegates will be able to interact with them to learn more about their offering, and how they may be able to help your business.

 

 

 

 

Closing speaker at Sibos 2017 confirmed: Microsoft CEO Satya Nadella set to take centre stage

Those that haven’t registered for the event now have an added incentive to do so

Sibos has an excellent track record of attracting the great and the good from the technology and business world. More than 8,000 decision makers and topic experts from around the world are expected to descend on Toronto next month from 16-19 October.

Over the years, Sibos has become known for attracting the highest calibre of speakers to lead and facilitate discussions on the future of business, technology, payments, securities and regulation –and the four-day event is now a staple on the calendar of many executives.

Those that haven’t registered for the event now have an added incentive to do so. Earlier today, it was announced that one of the most high profile executives from the technology world, Microsoft CEO Satya Nadella, will deliver the closing plenary address on Thursday 19 October.

Satya Nadella was named Microsoft’s CEO in February 2014, but has been with the company since 1992. During his 25-year tenure, he has established himself as a technology visionary who quickly became known as a leader across a breadth of technologies and business lines.

Under his direction, Microsoft has switched its centre of gravity from its Windows operating system to Azure – its global cloud computing business – which has grown to become the centre-piece of more than 100 data centres around the world.

Today, its technology underpins a range of web-based applications, bringing mobile devices to life and crunching data for artificial-intelligence (AI) services, according to The Economist, which published an excellent profile article on Nadella and Microsoft earlier this year.

His speech at Sibos will focus on how technology is profoundly impacting every aspect of our society and economies.

“For over two decades, Satya has been at the forefront of the tech revolution, and worked at the heart of one of the defining companies of this century. He knows what it takes to build an innovative and game changing company, and that harnessing disruptive technologies is crucial to enabling businesses to remain relevant and competitive in an ever-changing world.” said Sven Bossu, Head of Sibos.

“The financial services industry is currently undergoing its own tech revolution, which has created huge challenges but also opportunities. During the closing plenary, we look forward to Satya sharing his experiences with delegates to inspire them to build a stronger future for financial services.”

Microsoft’s share price has also risen by an impressive 60% under his leadership. With 8,000 people expected to walk through the doors of the Metro Toronto Convention Centre (MTCC), there will be plenty of ears listening intently to his words of wisdom.

Sibos 2017 is shaping up to be an unmissable event. To explore this year’s programme, and to register, visit Sibos.com.