FinTech Magazine - February 2022 by FinTech Magazine

Top 10: Fintech unicorns of 2021

JP Morgan Chase:

February 2022 | fintechmagazine.com

Driving diversity, equity, and inclusion

Finserv: Finserv:

Disruptive xxxxx sustainable development

Capgemini:

World-leading finserve support through digital transformation

Technology:

Venture Banking:capital, the ulimate guide

xxxxx

Visa:

Payments, procurement, and the great pandemic pivot

Payment Solutions: xxxxxx

DIFFERING PERSPECTIVES

WHILST OPTIMISING FINANCE

WORLDWIDE

DK Bartley, Chief Diversity Officer of Moody's Corporation discusses diversity, equity and inclusion in the fintech space FEATURING:

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Confirmed Speakers Include:

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Global Health, Safety & Sustainability Associate Director

Global Chief Sustainability Officer

Fidelity International

Manulife Financial Corporation

Roy Cheung

Mary-Jane Morifi

Global Head, Sustainability Solutions, Engineering Plastics

Chief Corporate and Sustainability Officer

Covestro

Tiger Brands Limited

Øistein Jensen

Sandeep Chandna

Chief Sustainability Officer

Odfjell SE

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The FinTech Team EDITOR-IN-CHIEF

DERIN CAG EDITOR

JOANNA ENGLAND EDITOR DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JANE ARNETA ELLA CHADNEY

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON JORDAN WOOD DANILO CARDOSO MARKETING DIRECTOR

ROSS GARRIGAN

MARKETING MANAGER

EVELYN HOWAT

VIDEO PRODUCTION MANAGER

KIERAN WAITE SAM KEMP

MOTION DESIGNER

TYLER LIVINGSTONE DIGITAL VIDEO PRODUCERS

EVELYN HUANG JACK NICHOLLS MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN MEDIA SALES DIRECTOR

RICHARD TURNER

PROJECT DIRECTORS

JAKE MEGEARY MICHAEL BANYARD JOE PALLISER SALES AND MARKETING DIRECTOR

JOE MARRITT

MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN CEO

GLEN WHITE

FOREWORD

MAKE ROOM FOR CHANGE This month, the process of change-making takes precedent over all else. We've got a plethora of new, fascinating interviews and features for you to enjoy

“We're back to inspire you with new fintech stories once again”

Hello! Welcome to the February 2022 edition of FinTech Magazine. We're back to get you fired up about the financial technology industry once again. This month, we take a deeper look at the current status of sustainability, retail, venture capital, and credit unions. While the fintech sector continues to grow, the way in which companies deliver finance related products and services is also evolving. February 2022: A Month in Review: In this issue, we’ve highlighted several of the industry's change-driven players, including TreeCard, Kiva, and Circa5000, among others. We also sat down with Derek White, the CEO of Galileo Financial Technologies, to discover what inspires him the most in fintech today. We hope you like this newest edition of our digital publication, and please do not hesitate to contact us with any comments or ideas. Thank you for choosing FinTech Magazine. So, without further ado, indulge yourself, and enjoy the read!

DERIN CAG FINTECH MAGAZINE IS PUBLISHED BY

derin.cag@bizclikmedia.com

fintechmagazine.com

CONTENTS

Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: The metaverse generation 18 Trailblazer: André Esteves 22 Five Minutes With: Derek White

Banking

Digital transformation and the credit union model

52 28

Moody's

Diversity, equity, and inclusion (DE&I) in Fintech

JP Morgan Chase & Co Driving diversity, equity, and inclusion

Finserv

The disruptive power of fintech for sustainable development

78 KIB

Digital journey to be top digital Islamic bank

100 92

Digital Payments

Fintech trends in retail: shifting consumer expectations

Capgemini

World-leading finserve support through digital transformation

114

Technology

Venture capital in fintech: the ulimate guide

120

VISA

Payments, procurement, and the great pandemic pivot

Experience composable banking with Mambu's SaaS cloud banking platform.

Learn more

140 Top 10

Fintech unicorns of 2021

152

Ticker

Connected motor insurance for market niches

164

Sandstone Technology

Leading banks into the digital era

176

Muang Thai Life Assurance Built on trust and sustainability

COMING SOON FO LLOW N OW

EDU C ATE • M OT IVAT E • E LE VAT E

About March8

March8 is an inspiring and informative community for women executives, entrepreneurs, professionals and overachievers. We recognise, celebrate and champion the achievements and contributions made by women in both business and society. Our community offers practical and compelling career, financial and lifestyle resources to help women take their careers to the next level and achieve a work-life balance.

A BizClik Media Group Brand

FO LLOW N OW

BIG PICTURE

The rise of brain-computer interfaces The Mind New financial products and services based on advanced technologies will appear in the market as fintech innovations continue to revolutionise finance. One such example is noninvasive brain-computer interfaces to help disabled people join the world economy and have better overall experiences. Such initiatives may help provide financial inclusion to an underserved population of around 1 billion people.

fintechmagazine.com

THE BRIEF “THE FINTECH SPACE IS MOVING AT A BLISTERING PACE, PROVIDING BENEFITS LARGER BANKS SIMPLY DO NOT OFFER” James Hickman

Chief Commercial Officer, Ecospen  READ MORE

“EVERY FINTECH HAS THE POTENTIAL TO BE SUSTAINABLE TO SOME DEGREE” Eimantas Matulaitis Head of Partnerships, Foros 

BY THE NUMBERS WE ASKED YOU WHICH TECHNOLOGY WILL BE THE MOST TRANSFORMATIVE FOR THE FINANCIAL INDUSTRY BY 2050. YOU SAID:

Artificial Intelligence 40% Quantum Computing 22% Blockchain 32% Virtual Reality 6%

TOP 10 FINTECH COMPANIES TO WATCH IN 2022

“WE'RE WATCHING FINANCIAL POWER SHIFT FROM ENORMOUS, GLOBAL INSTITUTIONS TO INDIVIDUALS” Doug Ludlow

Co-Founder and CEO, MainStreet  READ MORE

Discover the fastest-growing financial technology companies across the world as the fintech sector takes off

FUTURISTIC PREDICTIONS FOR THE FINTECH INDUSTRY BY 2050 What are the prospects for fintech in the long run? Some of our sources predict interplanetary payments and trillions going into decentralised finance

10 WOMEN IN FINTECH YOU SHOULD KNOW ABOUT THIS YEAR From Jane Alexander to Jennifer Fitzgerald, discover some of the most impactful women in fintech and how their contributions continue to shape the industry

HOW CRYPTO IS RESHAPING FINANCE AND THE WORLD AT LARGE

The development of the crypto vertical has also been driven by a desire for decentralisation and trustless transactions, two features currently lacking from the legacy financial system, but mastering this new technology will not be smooth sailing. Many threats are also associated with crypto, whether price volatility, security or exchange risk. Furthermore, there are worries about bubbles, money laundering, organised crime and terrorist financing. Many governments are also moving toward creating their own cryptocurrencies in the form of central bank digital currencies, and regulations are also starting to come into play.

 WISE The international money transfer company’s share price went from £1,140 GBP in September 2021 to £678 GBP in January 2022, nearly halving in total valuation within five months

 SOFTBANK The multinational conglomerate company is facing a lawsuit from Credit Suisse concerning $440m USD owed to the bank from Softbank’s portfolio company Vision Fund

FEB22

BAD TIMES

The bottom line is that cryptocurrencies offer a more liquid, borderless, fast and secure medium of exchange than traditional asset types. There are also risks associated with the technology. Given the speed of development, it will be interesting to see how these digital assets and their underlying blockchain technologies evolve in the coming years.

 BLOCKFI The US-based crypto-asset trading and lending platform secured $850m (USD) of new funding in 2021. It also exceeded more than 780 employees

GOOD TIMES

The growing popularity of cryptocurrencies is revolutionising the financial industry. With the rise of bitcoin, cryptocurrencies and blockchain technology, there is no denying fintech is taking on an entirely new meaning.

 TRIPACTIONS The travel and expense management fintech company continues to more than double in valuation each year, going from $1bn in 2019 to $2bn in 2020, and finally to $7.25bn in 2021.

TIMELINE The METAVERS E generation

The metaverse is the next step in the evolution of virtual reality. It includes all forms of augmented immersion, transcending physical borders to create a new digital world. It's not only for the movie industry or gamers anymore; it's about interacting with people and organisations from all across the world and beyond, improving the retail experience, and enhancing financial services.

February 2022

fintechmagazine.com

TRAILBLAZER

ANDRÉ ESTEVES

BRAZIL’S BOUNCE-BACK BANKER Job Title:

Company:

Senior Partner, investor, financer and entrepreneur BTG Pactual

BTG Pactual hired an additional

1,400

people amid the pandemic, mainly in the areas of technology and digital retail

February 2022

razilian businessman André Esteves is legendary for his aggressive investment approach, big personality, and sharp, business acumen. But he’s also courted a lot of controversy throughout his 30-year career. With an estimated personal fortune of more than $7bn USD, André is one of the most prominent figures in global financier circles. But the Brazilian native who hails from Rio De Janeiro is all the more impressive in his achievements because he didn’t come from wealth. Instead, his formative years were unremarkable even though this larger-thanlife businessman, who was named one of Epoca magazine’s 100 Most Influential Brazilians list for four consecutive years, was raised in a middle-class family of white-collar workers. Born in 1968, reports from André’s childhood suggest he was a bright and curious child and an excellent student. However, his was not an idyllic childhood. André’s parents divorced when he was young. He was raised mainly by his mother, a university professor specialising in educational psychology at the State University of Rio de Janeiro. His grandmother played a leading role too because she minded him frequently as his mother worked long hours. Possibly influenced by his mother’s high-ranking role in education, André worked hard at his studies and obtained a Bachelor's degree in computer science from the Federal University of Rio de Janeiro. Soon after graduating, he took an entry-level role at the financial company, Pactual.

Rising through the ranks From the very start, André’s keen interest and intelligent decisions in financial investment saw him rise stratospherically within Pactual. Within 12 months, he had moved up to the bank’s foreign debt trading team. By his third year, he was promoted to managing Pactual’s IPOs and M&A – a remarkable indicator of his ability – and the company’s trust in him. The management team’s faith in André was well-founded, and he scored win after win for Pactual – helping the bank to post an incredible 52% return on its capital in 1992 – an achievement for which they made him a partner. André Esteves bought Pactual Following six incredibly successful years as a partner, André had generated enough revenue and income to actually buy Pactual. He ran the business himself for just two years, before releasing his interest in the venture, which was then sold to UBS, while he explored further business opportunities. During his break from Pactual, André explored several alternative business options. In 2008, he launched the BTG investment company. He then decided to buy back his former stake in Pactual and managed to raise an impressive US$2.5bn to re-acquire the bank back from UBS. This canny move resulted in André reaching his industry-leading position as the founder of a global investment company – and the co-owner of Pactual Bank, and BTG Pactual was formed. Today, André is one of the most prominent financial figures in Latin America, and indeed the world. However, it hasn't all been plain sailing, as his aggressive and

fintechmagazine.com

unorthodox approach to investing has often landed him in hot water with financial regulatory bodies. In 2015, BTG Pactual moved to distance itself from a deepening crisis facing and embattled André by replacing him with two co-chief executives, following his arrest amid allegations of corruption concerning state-owned oil company Petrobras. BTG Pactual starting focusing more on other industries, one of them being fintech. In 2021, it purchased a 100% stake in Kinvo, the Brazil-based investment app. It also launched a crypto platform called Mynt. André spent 23 days in prison and shortly after his release, left Brazil and BTG Pactual behind him. Despite this, he still maintains an estimated $7.89bn USD stake in the bank. In June 2021, the Rio de Janeiro press said there were rumours of André making a comeback to BTG Pactual, as revealed by four sources to the Reuters news agency.

Personal life A married father-of-three, André is reportedly a workaholic who, when he was CEO of BTG Pactual, took just two weeks holiday a year and drove the same Mercedes pick-up truck to the office for several consecutive years. Despite these shows of frugality, he’s not against enjoying his wealth and reportedly owns a $50mn Dassault Falcon private jet that enables him to continenthop whenever the job requires it. He also reportedly enjoys good food and wine, along with trips to the cinema.

February 2022

TRAILBLAZER

fintechmagazine.com

5 FIVE MINUTES WITH...

DEREK WHITE CEO of Galileo

Derek White is the CEO of Galileo, the API standard for card issuing and digital banking. He tells us what inspires him daily and what he’s most looking forward to doing as life returns to normal again Q. WHO WAS YOUR CHILDHOOD HERO AND WHY?

» My father; not just when I was a child, but still today.

That unending patience and attentive listening with perfectly placed questions to prompt and guide are invaluable. Dad raised me to believe we could become ANYTHING we wanted to, if we search for truth, with an emphasis on continuous learning, finding the joy of serving others above ourselves, academics over athletics, the power and value of hard work, humility, organisational behaviour and positivity.

Q. W HAT'S THE BEST PIECE OF ADVICE YOU EVER RECEIVED?

» “Open your mouth.” As a kid growing up in the mountains

of Utah, I dreamed of one day working in global business and living abroad. A friend taught me the first step in realising your dreams is to open your mouth and share your dream with others; you never know who will help open a door for you. When I shared my dream with one of my mentors, she picked up the phone and within a week my dream was a reality.

Q. W HAT WAS THE LAST BOOK YOU READ AND HOW LONG AGO DID YOU READ IT

» I don't read a lot of books, but I reflect a lot on what I do

read. I also bounce between multiple books at the same time. I recently read AI 2041 by Kai-Fu Lee. I admire and have met Kai-Fu Lee a number of times in China. His ability to simplify complexity and peek into the future is inspiring.

“ Powering, investing in and mentoring dreamers to solution is what inspires me” fintechmagazine.com

5 FIVE MINUTES WITH...

The book I finished last night was The Boxcar Children with my youngest daughter. As a father of four, my favourite time of the day is reading with my kids and putting them to bed. I genuinely believe helping children gain a love for reading opens their minds to endless possibilities.

Q. N AME ONE PIECE OF TECHNOLOGY YOU COULDN’T LIVE WITHOUT AND TELL US WHY (EXCLUDING YOUR MOBILE PHONE).

» Spotify – When I get deep into work, I love to have music on in the background. My friends and family tell me I have a very eclectic and international playlist that ranges from Country to Norwegian rap to Spanish Reggaeton to Hindi dance music.

Q. W HO DO YOU LOOK UP TO IN TERMS OF LEADERSHIP AND MENTORSHIP?

» Young people inspire me. One of my favourite things to

do is to meet with the young talent in a company and ask them what their magic is. I’m inspired by their stories and ambition to help others and change the world.

Q. W HICH ACTIVITY ARE YOU MOST LOOKING FORWARD TO DOING WHEN THE PANDEMIC IS OVER?

» I can’t wait to have an in-person all-employee

meeting with the Galileo team, walking the halls and seeing the whites of people’s eyes. I’m also looking forward to travelling internationally to meet team members and clients.

Q. I S THERE A PERSONAL ACHIEVEMENT FROM THE PAST 12 MONTHS OF WHICH YOU ARE PARTICULARLY PROUD?

» I’m proud and excited to return to Utah to nurture and

expand the thriving ecosystem of innovators and founders here in Silicon Slopes, while also leading a global, purposedriven company that helps our clients build a better financial future for their customers and the world.

Q. W HAT INSPIRES YOU IN FINTECH TODAY?

» The greatest stress in people’s lives is money. Powering, investing in and mentoring dreamers to solution is what inspires me. 24

February 2022

“ Dad raised me to believe we could become ANYTHING we wanted to”

Flexibly build new ﬁnan products to meet your customers’ needs.

ncial

WRITTEN BY: DERIN CAG PRODUCED BY: MICHAEL BANYARD

February 2022

MOODY’S CORPORATION

MOODY’S: DIVERSITY, EQUITY, AND INCLUSION (DE&I) IN FINTECH fintechmagazine.com

MOODY’S CORPORATION

DK Bartley, Chief Diversity, Equity & Inclusion Officer at Moody's, shares why it's important for fintechs to focus on improving diverse representation

oody’s Corporation is a globally integrated risk assessment firm that empowers organisations and investors to make better decisions. Moody’s is made up of Moody’s Investors Service, a leading global provider of credit ratings, research, and risk analysis, and Moody’s Analytics, a global provider of data and analytic solutions. We had the opportunity to talk with DK Bartley, the Chief Diversity, Equity & Inclusion Officer at Moody's, to learn why it's more vital than ever for companies serving the fintech arena to have global diversity, equity, and inclusion (DE&I) strategies. DK spoke with us about the importance of diversity in the workplace, how to foster an inclusive environment, and what Moody's is doing to promote DE&I in its organisation. "Being a diverse and inclusive company has always been an integral part of Moody’s culture. To match our intentions with measurable action, in 2021 we took the important step of making our DE&I goals public. For example, we have goals related to increasing the representation of women in our global workforce, particularly in leadership. In the US, the experience of Black and Latinx employees is a particular focus. The murder of George Floyd was a turning point, and you began to see deeper conversations in many companies about how to be more socially responsible when it comes to issues

February 2022

DK Bartley, Chief Diversity, Equity & Inclusion Officer

MOODY’S CORPORATION

Moody’s: Diversity, Equity, and Inclusion (DE&I) in Fintech with DK Bartley

“ At Moody’s, we believe diversity, equity, and inclusion makes us better” DK BARTLEY

CHIEF DIVERSITY, EQUITY & INCLUSION OFFICER, MOODY'S CORPORATION

of race. At Moody’s, we know numbers and measurement count. So, we put out specific goals for where we want to be by 2025," said DK Bartley. Using technology to embed diversity, equity and inclusion is a focus at Moody’s Diversity and inclusion is a key focus area across multiple industries. In fintech, establishing an inclusive culture from day 32

February 2022

one can get overlooked as other foundational work is focused on. The lack of representation in the tech industry is well documented. As a company built around data and analytics, Moody's is using its technology resources to address this issue head-on as it works to create more diverse teams. "Our goal is to embed DE&I strategically in all we do at Moody's and build an inclusive workplace where people feel welcome to bring who they are to work. To help advance this objective, we launched an app to help our managers understand DE&I priorities and how they can bring them to life in their day-to-day business operations," said DK Bartley. He added, “We want all of our leaders and employees to understand what best practices in DE&I look like. And we are using technology to help provide them with the tools and resources to incorporate DE&I in everything they do.”

MOODY’S CORPORATION

DK BARTLEY TITLE: C HIEF DIVERSITY, EQUITY & INCLUSION OFFICER INDUSTRY: FINANCIAL SERVICES LOCATION: NEW YORK CITY DK Bartley is currently CDO - Chief Diversity, Equity & Inclusion Officer at Moody’s - and responsible for accelerating DE&I as a business imperative at the company globally through internal and external initiatives. He has advanced inclusion efforts at Moody's through industry-leading programming and greater transparency via the human capital data that the company shares. Moody’s has received numerous DE&I awards and recognition - a trend that has continued under his leadership. Previously, he was SVP & Head of Diversity & Inclusion for Dentsu International, where he managed talent solutions for their largest clients, including American Express, P&G, and LVMH.

EXECUTIVE BIO

From mental health to race and gender, there are many dimensions to diversity and inclusion The importance of DE&I cannot be overstated. It's not only good for the bottom line, but it also helps companies hire better employees who can see different perspectives and ideas. Moody's is setting an example by making sure its employees feel valued and included, no matter their background or identity. "We’re focused on being innovative in our approach to diversity, equity and inclusion. We want to engage people in ways that are timely, accessible and impactful. As an integrated risk assessment firm, our actions are guided by data: what's working, what's not working, what our people are talking about and what they’re interested in," stated DK Bartley. As one example, the role of neurodiversity in the workplace is becoming more and more critical, as companies realise that people with autism spectrum disorder (ASD) bring a unique set of skills. One can note that even some of the most talented names in history were on the autism spectrum, from land surveyor Benjamin Banneker to piano prodigy Thomas Wiggins. In order to tap into this potential, it's essential for companies to start thinking about how they can make their workplace more neurodiverse. For Moody’s, this is about hiring the best talent and creating an environment where people from different backgrounds and with varying disabilities feel comfortable, accepted and confident in using their skills to the best of their ability. This principle also applies in fintech, where everyone should be able to excel and achieve their full potential.

DRIVE INCLUSIVE BEHAVIOR AT SCALE Turn unconscious bias into conscious action with Inclusion Works from Hive Learning – the awardwinning culture change program that helps Moody’s, Sun Life, and the world’s most forward-thinking companies create behavior change that sticks

DEIforFinance.com

DRIVING BEHAVIOUR CHANGE THROUGH PEER LEARNING Hive Learning working with Moody’s to drive a culture of inclusion and wellbeing Diversity, equity and inclusion (DEI) have fast become a business imperative for organisations: transformative action is needed urgently. Should this come from the top down, or should organisations wake up and tap the resources they may not realise they already have? Hive Learning delivers innovative large-scale behavioural change programmes through its revolutionary peer learning platform. Among the founding team was its present CEO Julia Tierney: “We specialise in driving culture change, working with large organisations and helping them confront gritty topics like sustainability, inclusion, wellbeing and mental health.” These are not secondary issues: 80% of Gen Z employees would consider leaving an employer that is not addressing them. “The people in the ‘high towers’ claim to rule, but revolutionary change starts in the ‘town square’ below!” Among Hive Learning’s clients is the financial services giant Moody’s.”We love all our customers but Moody’s is an especially

good fit for two reasons. Firstly it is a dataled organisation and we are passionate about the potential of data. Moody’s is awesome in that respect. Secondly Moody’s is passionate about DEI, which is one of the main areas in which we are working with them. This is no tick-box exercise either, they have a real belief in it, from the CEO down.” Moody’s CXO DK Bartley observed that the George Floyd scandal that rocked not only the USA but the whole world, very much including the global corporate community, and has provoked ‘courageous conversations’ around diversity. “They involve asking questions that may be taboo, and help us to be comfortable about being uncomfortable!” Currently Hive Learning is working with about 500 top leaders, managers and DEI ambassadors at Moody’s. Peer learning is a powerful tool. It takes behaviour change away from the realm of HR and puts programmes and networks in the hands of the organisation’s people – that is when change can happen as quickly as forwardlooking businesses like Moody’s require it to.

Learn more

1909

Year founded

$5.4bn Revenue (USD)

13,000+ Number of employees

February 2022

MOODY’S CORPORATION

“ Our executive leadership is serious about making DE&I an integral part of everything we do” DK BARTLEY

CHIEF DIVERSITY, EQUITY & INCLUSION OFFICER, MOODY'S CORPORATION

The importance of openly discussing diversity, equity and inclusion cannot be overemphasised Some societal and workplace elements still have taboos and misconceptions associated with race, gender, and mental health. This observation is why DK Bartley feels it is critical to have open discussions about such issues and to develop cuttingedge initiatives in support of DE&I. These discussions can help employees "share a best practice, learn a best practice, or just get more tuned in to our culture," added DK Bartley. In such a technologically advanced and modern world, DE&I should be at the top of any leader’s list when making decisions. This kind of prioritisation should not just be the case when it comes to human resources or employment, but also in regards to one's tone of voice or when considering a company's values and overall culture. Inclusivity is about more than just hiring people from different backgrounds. It’s also about making sure all people feel welcome and have opportunities to advance their careers while being true to their identities. Moody's leadership has been vocal about its commitment to diversity, equity and inclusion. DK Bartley emphasised, "Our executive leadership is serious about making DE&I an integral part of everything fintechmagazine.com

Transform your leaders, transform your business. We equip companies with behaviour change programmes that transform how people think, feel and behave at work.

Over half the FTSE 100 and the S&P 100 use MindGym to drive performance.

Find out more at; www.themindgym.com

MindGym: Behavioural Change is the Path to Better Leadership

Dr. Janet Ahn, MindGym’s Chief Behavioral Science Officer, on how behavioural change empowers leaders to build profits and a culture of performance For more than two decades, MindGym has built a reputation as a change-maker, equipping leaders with the tools to enhance the performance and well-being of the people within their organisations. “Through a mix of coaching and digital-live hybrid products, MindGym creates sustainable behaviour change that touches every part of the business, nurturing innovation and creating a culture of high performance,” says Dr. Janet Ahn, MindGym’s first Chief Behavioral Science Officer, and an expert at the forefront of behavioural science. A key partner to Moody’s, MindGym is rolling out its unique DE&I solution, built upon four cornerstones: judge wisely, value variety, forbid and forgive, and step up. “Moody’s already has a strong record of diversity, but

MindGym focused on a partnership to bring inclusion to the next, global level,” Ahn says. “Based on our four cornerstones, MindGym created a very comprehensive journey for Moody’s. The goal of our partnership is to build cohesion globally at Moody’s around the topics of power and inclusion, belonging, and psychological safety and, even more importantly, to help Moody’s leaders build a strong foundation and understanding of things they can do differently every day to ultimately lead that culture of inclusion.” Beyond DE&I, MindGym solves a multitude of problems in the human capital space, from leadership development to employee well being, establishing frameworks under which leaders are empowered to change behaviours when they spot opportunities. “People are what drives growth in revenue and innovation,” Ahn explains. “To create the best performing teams, we have to invest in their experience. How we do this is by leveraging the insights we have on behavioural science in terms of how we know people psychologically are most motivated and driven.”

Learn more

MOODY’S CORPORATION

“ Our goal is to embed DE&I strategically in all we do at Moody's and build an inclusive workplace where people feel welcome to bring who they are to work” DK BARTLEY

CHIEF DIVERSITY, EQUITY & INCLUSION OFFICER, MOODY'S CORPORATION

we do. From our services, and how we support our customers, to how we grow, as well as how we develop and engage our employees."

Accountability is another important factor in making DE&I achievable and sustainable All executives must show their employees they are committed to DE&I, including accountability for environmental, social, and governance (ESG) initiatives. According to DK, "Accountability provides a basis for us to have a conversation around the things we're doing, what we're focused on, what we want to improve and to provide our stakeholders with a strategy for how we're going to get there." "The feedback we consistently receive from our employees tells us that diversity, equity, and inclusion are key reasons why they stay at Moody's. It’s also why they encourage their friends outside of our organisation to work here. We're really proud of that because it says that the focus and investment in DE&I we’ve made as a company are making a difference. People are seeing it, believing it and experiencing it as part of our culture at Moody's." Transparency is critical to any company's success in diversity, equity, and inclusion because it promotes trust. DK Bartley added, "Making our goals known to our stakeholders, inside the company and out, is really powerful. It makes a clear statement about where we stand." Fostering DE&I in fintech by establishing Business Resource Groups (BRGs) At Moody’s, our Business Resource Groups (BRGs) are employee-led and focused on aspects of diversity, such as race, gender and sexual orientation. Moody's was an early adopter of BRGs to provide employees with

February 2022

a sense of community and support. Such groups are an asset to any company because they provide a community for people to come together and talk about topics that companies might not discuss otherwise. BRGs are often in alignment with a company's business strategy and are employed to assist in better understanding the changing market conditions and demands. "We’re particularly proud of our BRGs. They’ve evolved from employee resource groups to business resource groups, and the change goes well beyond just their name.

These groups are core to our business, allowing us to apply the passion and energy of our employees to explore new ideas and shape existing ones – all while making the most of the wonderful talent across our company," stated DK Bartley. Moody's as a beacon of light for DE&I in the financial services sector Diversity, equity and inclusion is a broad topic that encompasses many different areas of focus within the business world. In fintech and other industries, there are fintechmagazine.com

MOODY’S CORPORATION

several initiatives that can be put into place by companies who genuinely want their workplace culture to reflect their values. And Moody's is evidently one of those companies. "At Moody’s, we believe diversity, equity, and inclusion makes us better. It’s an intentional part of how we operate. You can see it in the decisions we make and the actions we take," said DK Bartley. "Moody’s employees have a wealth of options for supporting DE&I. It may be joining a BRG, volunteering in the community, 42

February 2022

“ Discussing DE&I can help employees share a best practice, learn a best practice, or just get more tuned in to our culture” DK BARTLEY

CHIEF DIVERSITY, EQUITY & INCLUSION OFFICER, MOODY'S CORPORATION

MOODY’S CORPORATION

giving to a DE&I-focused charity or just having a conversation with a manager about something they think is important from a DE&I perspective. The options are out there, they’re true to who we are, and they’re fully supported by the company," he concluded. To put it concisely, Moody's remains steadfast in its commitment to diversity, equity, and inclusion. The company has put into place a number of initiatives that have proven successful in fostering DE&I within the workplace. These initiatives include

accountability, transparency and disclosure, BRGs, and a focus on environmental, social, and governance (ESG) issues. Moody's remains dedicated to promoting a better work environment for all employees while encouraging others to do the same – and the company looks forward to continuing its efforts.

fintechmagazine.com

BANKING

DIGITAL TRANSFORMATION AND THE CREDIT UNION MODEL

WRITTEN BY: JOANNA ENGLAND

DIGITAL TRANSFORMATION AND THE CREDIT UNION MODEL

WHILE SOME BANKS HAVE STRUGGLED TO ADAPT TO OUR DIGITAL NEW NORMAL, EVEN BIGGER CHALLENGES HAVE OCCURRED IN THE CREDIT UNION SPACE

BANKING

igital transformation has changed the business world as we know it. From face to face interactions and the diminishing use of cash, to blockchain and cryptocurrency use, the financial industry has been rocked on its axis. Regardless of whether it's a start-up based on digital technologies, or an incumbent organisation with a legacy system core, the financial services and banking industry has probably experienced the greatest changes globally. But although some areas of banking have embraced the new normal, there are other parts of the financial sector that have struggled with the transformation. Credit unions and building societies, for example, are a breed apart from the usual incumbent. Pandemic disruptions So, what changes have occurred in the credit union space over the past 24 months? Peter Longo, Senior Director, Product Management Digital at Finastra believes branch networks have undergone massive changes, mainly because they have transformed from transaction centres into advisory centres. He points out that the credit union industry has also become much more aggressive in terms of supporting small businesses over the past couple of years – mainly due to changes brought about by the pandemic. Credit unions, Longo says, have been reallocating and staffing up in commercial and small business sectors, as well as cross-training employees and advisors to do more, as member needs change. “Credit unions have typically thrived in lending, credit cards, and card spending. This has been disrupted due to the pandemic. Embedded finance competitors have come to the fore alongside community banks, that have historically refrained from going after microloans or smaller unsecured loans, but now look to explore this.” fintechmagazine.com

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But it is also more complicated than that, as Longo says embedded finance is cutting through into the credit union market, resulting in them needing to find ways to evolve their growth strategies and find new sources of income. A shift in focus The pandemic has impacted credit unions in terms of their operational services. Longo points out that as a result of members reducing their spending due to the pandemic, there has been an influx of deposits at credit unions. Under pre-pandemic circumstances, community banks and larger banks were typically deposit-heavy. But credit unions now find themselves experiencing deposit growth – at a much larger scale than they would have, had the pandemic not hit. “The impact of COVID-19 in terms of quarantines and a lack of travel has meant that interest income and fee earnings expected from cards or loans have not materialised,” he says. “Credit unions are based around the needs of their members, providing a somewhat ‘white-glove’ service. The pandemic has made it hard to interact with the community, and credit unions now need to find new ways to translate brick-and-mortar services to online channels. Unions have conventionally generated custom through word of mouth and have grown organically. However,

“THE FINTECH SPACE IS MOVING AT A BLISTERING PACE, PROVIDING BENEFITS LARGER BANKS SIMPLY DO NOT OFFER” JAMES HICKMAN ECOSPEND

with larger banks spending excessively on marketing, credit unions may now need to do more to attract members.” Keeping up with the fintechs Like all pre pandemic organisations that have relied on legacy system technologies, the sudden growth of the fintech industry has also had an effect on the way credit unions operate and manage their services. James Hickman is the COO at Ecospend, a leading open banking provider in the UK. He says new open banking technology is playing an important role in driving the sector forwards. New open banking solutions, he points out, deliver a smoother and easier customer experience by cutting out the need for manually entering any personal or card data to complete a payment, as well as delivering the solution at a fraction of the cost of cards. “For a credit union, this allows for a more inclusive online product that allows for greater reinvestment into its product offering,” Hickman states. He continues, “There are other material benefits for credit unions using Open Banking payments. A key example lies within loan repayments, where customers that pay fintechmagazine.com

BANKING

through the account to account payment method will see their loan repayments arrive into the payee’s account instantly. With more traditional card repayments funds can take several days to clear which can cost the consumer more in interest fees.”

“A FLEXIBLE, PLATFORM - BASED APPROACH CAN ALLOW CREDIT UNIONS TO BENEFIT FROM THE FINTECH BOOM, BY INCORPORATING NEW APPS TO AID IN CREATING NEW CHANNELS OF INCOME” JAMES HICKMAN ECOSPEND

A challenge too far? But how has the fintech boom affected credit unions in a broader sense? Is the competition now too heavily pitched against them? Hickman thinks not, and says the benefits balance out the challenges. “A flexible, platform-based approach can allow credit unions to benefit from the fintech boom, by incorporating new apps to aid in creating new channels of income. In the past, digital banking apps were traditionally used for people to deposit 48

February 2022

cheques. Now we have systems like BNPL which have challenged credit unions, with their ease and adaptability. However, working with fintechs, credit unions can not only survive but also thrive.” Hickman says fintech apps can also support customer service, giving credit unions the ability to enable mundane transactions, whilst bringing traditional ‘white-glove’ services to the forefront digitally. Ultimately, although changes and competition are uncomfortable, they also

force innovation – and that’s a positive outcome, because it means credit unions have to address their shortcomings and provide better services to stay relevant. “The fintech space is moving at a blistering pace, providing benefits larger banks simply do not offer. Traditionally, larger banks have not offered the flexibility to get to market with new solutions quickly enough. In contrast, fintechs enable speed to market and can help credit unions maintain market share with adaptable practices.”

He points out credit unions have had an easier time accepting adaptation than incumbent banks because they have a more agile approach to change. He concludes, “Credit-unions have no interest in protecting old legacy systems or incumbent technologies that protect their profit margins. The result means they are able to look to introduce new innovative technologies that bring a wealth of new offerings and services for credit union customers.” fintechmagazine.com

BANKING

“EMBEDDED FINANCE COMPETITORS HAVE COME TO THE FORE ALONGSIDE COMMUNITY BANKS, THAT HAVE HISTORICALLY REFRAINED FROM GOING AFTER MICROLOANS OR SMALLER UNSECURED LOANS” PETER LONGO FINASTRA

February 2022

BANKING

Hickman adds, “They are able to introduce technologies that challenge the incumbent methods that traditional banks and banking services have more pressure to maintain.” Future proofing for the next decade Ultimately, credit unions have no choice but to catch up and digitise, otherwise they will become outmoded and outdated by shiny and fast-moving fintechs. But progress is always positive – and Longo believes the predicted changes will be beneficial for both unions and customers alike. He also believes these changes will come in two main areas. “The first change I see is an increased focus on small businesses. During the COVID-19 pandemic, community banks and credit unions provided critical financial assistance to small businesses through the Paycheck Protection Program (PPP).”

“DURING THE COVID - 19 PANDEMIC, COMMUNITY BANKS AND CREDIT UNIONS PROVIDED CRITICAL FINANCIAL ASSISTANCE TO SMALL BUSINESSES THROUGH THE PAYCHECK PROTECTION PROGRAM” PETER LONGO FINASTRA

He points out that as a global operator, Finastra has helped process more than 86,000 PPP loans to date, supporting community financial institutions in their quest to provide funding for local businesses and preserve jobs as many people live paycheck to paycheck. “I see this focus continuing into the next decade as the value that small businesses provide is increasingly recognised,” Longo says. “The second change I see is that there will be diversification in services offered. Rather than going through traditional auto lending, we can now do digital retail lending.” He adds, “Whether that be microloans or BNPL services, or even payroll streamlining. All these services will overtake existing financial mechanisms to form a new financial environment.” fintechmagazine.com

DRIVING

DIVERSITY, EQUITY, AND

INCLUSION WRITTEN BY: ELISE LEISE PRODUCED BY: MIKE SADR

February 2022

JPMORGAN CHASE & CO.

fintechmagazine.com

JPMORGAN CHASE & CO.

JPMorgan Chase & Co. is using the power of its supply chain and lowering the barriers to opportunity for Black, Hispanic, and Latino suppliers

e have a real opportunity through procurement to impact our global communities by generating revenue, creating jobs and driving inclusive growth, says Eric Smith, Global Head of Supplier Assurance Services at JPMorgan Chase. “And an important component of procurement is supplier diversity, one of the most direct ways to address economic inequality.” For almost three decades, the firm has been committed to engaging with diverse suppliers. But, with JPMorgan’s recent US$30bn commitment to help close the racial wealth gap, the firm is focusing on key drivers of wealth that help drive equity, and inclusion — providing additional small business loans, improving access to lowcost savings accounts, financing affordable housing units, and supporting diverse suppliers, including spending US$750mn more with Black, Hispanic and Latino-owned businesses by 2025. Increasing Diverse Supplier Spend by US$6bn Above and beyond its US$30bn commitment, JPMorgan Chase is developing creative approaches to scaling its support for supplier diversity. First, the firm is working with its top suppliers to drive a combined increase in spend with diverse businesses by more than US$6bn, with US$1.2bn going to Black, 54

February 2022

Example of an image caption fintechmagazine.com

JPMORGAN CHASE & CO.

The Gold Standard in Diverse Spend

Hispanic and Latino-owned companies. While the goal is to reach these spend increases over the next three years, the larger purpose is to have other corporations develop sustainable diversity programmes that will generate new revenue for diverse businesses for decades into the future. Meeting a mission to support diversity, equity and inclusion will involve forging new paths and encouraging a shift in the overall culture of the business community. But, Smith and his team understand that one company can’t drive impact alone. It takes a commitment from large and small companies across all industries. Today, if a supplier wants to do business with JPMorgan Chase, it must demonstrate that it has established a diversity, equity and inclusion infrastructure and culture. According to Smith, that means engaging in active conversations with existing suppliers and building diversity, equity and inclusion into the firm’s minimum control 56

February 2022

requirements. For example, JPMorgan Chase now asks its suppliers annual diversity, equity, and inclusion questions to ensure that their diversity programmes align with the firm’s values. Diversity is now a finding on the firm’s overall annual assessment that may require remediation and conversation. “Our suppliers need to embrace the need for diversity”, Smith says. “We conduct

ERIC SMITH TITLE: MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES INDUSTRY: BANKING

business with suppliers that have similar values, that have a similar culture, that have a similar drive for inclusion.” Cyber-Readiness for Black and Hispanic Suppliers Supplier spend isn’t the only aspect of JPMorgan Chase’s push for greater inclusion. Diverse business owners often need other forms of support. For instance, they may

EXECUTIVE BIO

LOCATION: USA Eric Smith joined JPMorgan Chase & Co. (JPMC) in January 2016 and is currently the Global Head of Supplier Assurance Services (SAS). He is accountable for driving the third-party risk management assessment activities across the entire JPMC global footprint. This includes on-site assessments, virtual assessments, application control assessments, third-party information security, and supplier continuous monitoring. Prior to assuming this role in April 2018, Smith was the Head of Cybersecurity for Consumer and Community Banking (CCB). As part of Smith's responsibilities, he represents the firm and the Financial Services Sector on the Delaware Cybersecurity Advisory Council, and is on the Board of Directors of the Delaware Community Reinvestment Action Council. He also supports JPMC Diversity, Equity and Inclusion (DE&I) programme by leading the DE&I Council for Global Supplier Services, and is a member of JPMC’s LGBT+ Executive Forum.

Born entrepreneur? Made entrepreneur? Finding the right deal. Negotiating the right price. Delivering on time. At EY, we know how choosing the right suppliers can help to achieve strategic goals. Our Environmental Social Governance Service team is creating a diverse ecosystem for diversity-owned businesses to reach their potential and make a difference. © 2022 Ernst & Young LLP. All Rights Reserved. ED None.

Visit ey.com/supplierdiversity

EY Collaborations: Banking on diversity How EY is helping to create a culture that values diversity both inside and outside our doors EY is one of the world’s leading professional services firms and like JP Morgan has a long commitment to increasing diversity in its suppliers, and helping clients do the same. Theresa Harrison, EY’s Environmental Social Governance Services Leader, says the first foundation for EY’s strategy comes from an overall commitment to diversity, equality, and inclusiveness (DEI) within its overall organisation and culture. This is then followed by the leadership within its supply chain services. Diverse supply chains Making sure EY suppliers have aligned goals within their own supply chains is also imperative. To those ends, EY created its own evaluation criteria that examine RFPs, overall ongoing assessments, its vendor management scope, and how organisations can team together to really make a difference and an impact from an ESG perspective. Harrison notes, “We’re giving it high weighting in all of our specific RFPs, as well as our clients and those who we are actually developing from a client perspective on what their strategy should be, how should they evaluate their

supply chain and what things should they look for in setting goals through our climate change and sustainable services practice.” Catering to client demand ESG has become a mandatory exercise across the industry, but it’s complicated and confusing – and making sure the right outcomes prevail is essential, says Michael Giarrusso, whose team works with EY clients to develop their thirdparty risk management framework, processes, methodologies ,and technology enablement. He explains that helping clients learn how to break down barriers in terms of differing methodologies, is often the answer. “We’ve started to consult with our clients on helping to break down those barriers. It’s something that motivates a lot of our people to work with our clients.” Supply Chain Services goals EY considers diversity as part of its DNA as an organisation. Harrison concludes, “Our Supply Chain Services goals are tied to our performance and participation within supplier diversity. It is really important for us to build this diverse ecosystem, not only for EY, but also from a client-serving perspective.”

Learn more

DOUG ROGINSON TITLE: E XECUTIVE DIRECTOR, SUPPLIER RELATIONSHIP MANAGEMENT Doug Roginson, Executive Director and Relationship Manager at JPMorgan Chase, is the Grant Officer and head of racial equity for its Diverse Supplier Grant initiative. The Firm issued a US$5mn grant to certified nonprofit Community Development Financial Institution (CDFI), called Local Initiatives Support Corporation (LISC), which will manage the grant initiative end-to-end. JPMorgan Chase has invited other corporations to voluntarily contribute funds that it will match. The firm’s nearterm aspiration is to grow this grant, increasing the available funds over the next several years. Roginson says meeting industry requirements like cyber security and insurance can be a costly investment for small and diverse businesses, creating a very real barrier to contract opportunities with corporations: “Our primary objective is to increase the number of qualified Black and Hispanic suppliers prepared to serve corporations across multiple industries by helping to eliminate common barriers.”

February 2022

JPMORGAN CHASE & CO.

“WE HAVE A REAL OPPORTUNITY THROUGH PROCUREMENT TO IMPACT OUR GLOBAL COMMUNITIES BY GENERATING REVENUE, CREATING JOBS AND DRIVING INCLUSIVE GROWTH” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

not have a clear picture of gaps in their technology infrastructure, which could potentially disqualify them for work with financial institutions. Additionally, the coronavirus pandemic highlighted new vulnerabilities that emerged from suppliers having to work remotely. “The pandemic revealed new cybersecurity risks to the firm”, Smith explains. “We realised that many of our suppliers, when forced to send their employees home, weren’t ready to execute their resiliency plans. We saw suppliers being impacted by ransomware. And that reshaped the minimum control requirements we have around cybersecurity.” To assist diverse suppliers in getting their businesses secure and cyber-ready for financial industry clients, JPMorgan Chase recently partnered with TruSight, a risk management utility co-founded by JPMorgan Chase, American Express, Bank of America, Bank of New York Mellon, and Wells Fargo. The firm is using this utility to provide Black- and Hispanic-owned companies with a detailed view of their cybersecurity status. TruSight reviews several best-practice areas across a company’s operations, collects observations about their control environment and generates a report or assessment of their level of security. JPMorgan Chase’s TruSight partnership programme aims to eliminate a common barrier to opportunity with financial industry firms by making cyber-readiness more accessible for diverse suppliers. So far, TruSight has provided 25 diverse suppliers in JPMorgan Chase’s pilot programme with complimentary assessments. These assessments provide each diverse supplier with direct feedback on which cybersecurity controls they must increase to improve their industry positioning. fintechmagazine.com

Transforming Investments, Forwarding Humanity. Learn More

LENOX PARK BUILDS ASSET MANAGER DIVERSITY BY DEMOCRATISING CAPITAL Lenox Park gives asset managers techenabled route to diversity and inclusion with benchmarking insights and collaborative networks that democratise capital Asset managers as a corporate cohort have seen very little diversity over the years, reporting in a study that only 1.4% of total USbased assets under management is managed by diverse-owned firms, and patience with such a glaring disparity is running out. Lenox Park Solutions lets asset allocators assess the diversity, equity, and inclusion (DEI) impact of their capital. The platform has over 2,200 registered organisations, 1,200 asset managers, and represents US$6 trillion in assets under management. “If you ask the average allocator of capital ‘How did you find your best managers?’” says Founder and CEO Jason Lamin, “The likelihood is they found that manager through their peer group.” So, Lamin made an unbiased solution for potential partners to find each other. Part of that solution is collaborative dealmaking platform RoundTables. Lamin says “RoundTables was built on a premise that like-minded decision-makers tend to

collaborate with each other and prefer to knowledge-share among their peers. So we created a tech-enabled platform that empowers those individuals to collaborate efficiently in a safe space.” DRIVING DEI THROUGH KEY PARTNERSHIPS One key partner has been JPMorgan Chase, which joined as a Founding Member as part of its own DEI initiatives. “We are generating value for them,” says Chief Operating Officer Amber Kizilbash. “But we are also leveraging the broad spectrum of services and partnerships they can provide to a company like ours, at this phase in our growth cycle; and the phases ahead of us.” For Lenox Park, the intentionality of seeking out diversity will be crucial to future business. “At the U.S. National level there’s about US$70 trillion of wealth that is going to be transferred to the next generation by 2045,” says Kizilbash. “When you think about the next generation of leaders that are coming from this diverse millennial economic power, research suggests no other generation has been more focused on impact, and inclusion is one of the single most important values for them.”

EXPLORE MORE

JPMORGAN CHASE & CO.

“WHEN IT COMES TO SUPPLIER DIVERSITY, THE BEST PRACTICE IS TO PRIORITISE IT” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

February 2022

After these suppliers receive their TruSight assessment results, they have an opportunity to work with several consulting organisations, including Deloitte, Ernst & Young, and Protiviti — to navigate steps towards remediation. This is a service they can receive free-of-charge. Remediation complete, diverse suppliers are more prepared to take contract opportunities with JPMorgan Chase as well as other financial institutions. However, this programme provides additional benefits to participants that go

JPMORGAN CHASE & CO.

beyond generating reports and remediation plans. It surrounds the supplier with a network of new relationships — both with other diverse business owners, and also with all of TruSight’s founding banks. Throughout the programme, cohort members are given the opportunity to present their capabilities to several financial institutions they can potentially work with. Though JPMorgan Chase’s TruSight cybersecurity programme may expand in the future, Smith's division is currently set on

PETER VAN ALLSBURG TITLE: H EAD OF DIVERSE SUPPLIER SOURCING Peter Van Allsburg is the Head of Diverse Supplier Sourcing at JPMorgan Chase and works with sourcing specialists to align diverse suppliers against opportunities. As part of its Racial Equity Commitment, the firm is committed to spending an extra US$750mn over 5 years with Black- and Hispanic-owned suppliers. Van Allsburg’s team works with Category Sourcing and business stakeholders to find opportunities and create go-to-market strategies. “We take a category-aligned strategy when matching prospective, diverse suppliers with opportunities,” says Van Allsburg. “In partnership with our Global Supplier Diversity team, we conduct significant supplier due diligence up-front to ensure that when diverse firms are being positioned for opportunities, there is a strong chance of success. We position diverse firms with intent to partner with them. We have support from our senior stakeholders and are transparent about our successes as well as when we may need assistance.”

fintechmagazine.com

WWW.OVERLANDTANDBERG.COM

Empowering Organizations to Securely Manage and Protect Their Digital Assets • Leading global technology solution provider for 40+ years • Customers include global Fortune 500, Enterprise,

SME and SMBs in 100+ countries • Data Management and Security Solutions: • Hybrid Cloud Infrastructure, Business Continuity, Data Protection • Crypto-currency, IT Integration and Manufacturing

Tackling diversity through data and technology Overland-Tandberg is a global technology company serving over 100 countries. We spoke to its Chairman and CEO, Eric Kelly. As Chairman and CEO, Eric Kelly takes a dynamic role in leading the company in its global growth strategy. This has involved an important collaboration with one of the world’s leading banking corporations, JP Morgan Chase, that is expanding the company’s mandate of improving global diversity in the corporate and technology sectors. Kelly says Overland-Tandberg was on the lookout for a partnership with a bank to fit the company’s growing, global footprint. “We actually started off discussing the banking relationship, and then it quickly moved into a symbiotic partnership—they became our corporate sponsor. The collaboration has gained momentum and velocity, with Overland-Tandberg carrying out business with JPMC on the supplier diversity side, working with their chief procurement officer and their supplier diversity group. Established trust and success Kelly points to Overland-Tandberg’s long history when he speaks about the company’s robust reputation in the marketplace. As one of the longest

established black-owned global technology companies, it has built up a respected position. Our vision of “Global Intellect and Inclusiveness” is the ethos that drives the organization – this vision allows us to have a comprehensive understanding of diversity and inclusion. Diversity and data challenges Multinationals and foreign companies face the same challenges as US companies when trying to find black-owned businesses, says Kelly, it comes down to a lack of access, availability and awareness. “There are organizations here in the US that showcase specifically black-owned businesses, and diverse companies,” he elaborates. “But I think that from a multinational standpoint of foreign companies, it’s one of access and availability and awareness. How do you find and develop partnerships at scale with diverse companies when there’s no technology platform that’s designed to provide that information?” Kelly continues, “The world is digital and getting smaller. If you’re a US company you’re directly or indirectly doing business globally. This challenge has been constant, which led me to leveraging my history in technology to focus on creating a platform that could align these resources across industry and essentially play a key role in closing the digital and diversity divide.” It’s called Bridge 2 Technologies. Learn more

INCREASING SPEND ON DIVERSE SUPPLIERS: THE STATS • US$750mn in new spend with Black, Hispanic, and Latino suppliers – part of commitment to spend US$30bn by the end of 2025 to advance economic growth and opportunity • Top suppliers to JPMorgan Chase committed to spend US$6bn with diverse suppliers — US$1.2bn specifically for Black Hispanic and Latino suppliers

February 2022

“WHEN WE ARE FOCUSED

JPMORGAN CHASE & CO.

AND INTENTIONAL, THE PROCUREMENT ORGANIZATION CAN SERVE AS A VERY EFFECTIVE TOOL IN FURTHERING DIVERSITY, EQUITY AND INCLUSION” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

championing its initial cohort of 25 Black and Hispanic suppliers. 60% of the way through the first set of assessments, JPMorgan Chase is seeing the results it expected: some suppliers are wellpositioned to start working with financial institutions; others may benefit from working with a top consulting firm. Breaking Down Barriers to Inclusion Access to capital is a common challenge faced by diverse businesses, so meeting industry requirements like cyber security, insurance, and bonding is often costprohibitive. Satisfying these requirements can cost a typical small business over US$100,000, creating another barrier to entry into the financial services industry. To address this issue, the firm is launching a grant programme for Black, Hispanic and Latino-owned companies to provide financial assistance in meeting minimum requirements for doing business with large corporations. At the start of this new year, Eric will be focused on supporting the initial supplier cohort as they complete the assessment and consulting process. The TruSight programme aims to act as a stepping stone for diverse

suppliers to gain more contracting options within the financial services industry. “The programme is about opening doors for diverse suppliers,” Smith explains. “About eliminating barriers to opportunity.” The Future of DEI in Finance Eric’s division aims to lead the path forward. “We all know that we need to do better in diversity, equity, and inclusion," he says. Financial institutions have realised that they need to expand their view of services and contractors, companies and businesses— and that the old ways will need to change for them to thrive in the future. “Diversity should be ingrained in the culture of not just the procurement organisation, but the company as a whole," Smith says. “When we are focused and intentional, the procurement organisation can serve as a very effective tool in furthering diversity, equity and inclusion throughout the firm and the wider business community. When it comes to supplier diversity, the best practice is to prioritise it”.

fintechmagazine.com

E E V V I I T T P P U U R R S S I I D D E H TH C E T N I F F O R E E L POW B A N I A T S U S FOR T T N N E E M M P P O O L L E E V V E E D D BY: WRIT TEN

DERIN CA

nity to u t r o p p ificant o ssing local, n g i s a e There's ackle pr t sinesses o t u b h c s e a t , n s i ue use f a obal iss l g G criteri d S n E a e l h a t n natio focus on y l g n i s a incre

he changing climate, humanitarian crises, and other challenges have made it clear; organisations have to find new ways of doing things. The fintech industry, like any other sector, is responsible for innovating novel ideas to improve international issues and be a valuable asset for sustainable development. According to Jinder Kang, Innovation Consultant at Netguru, "Gone are the days where businesses could claim 'we didn't know' or look to share only the curated information that painted them in a positive light. The continued acceleration of technological advancements has brought us to a position in the world where if you are not transparent, someone will paint your picture for you." This feature article explores how the fintech industry is affecting sustainable development and provides insight into 70

February 2022

sustainable initiatives being embraced by fintech companies. Increased focus on ESG criteria As the environmental, social, and governance (ESG) criteria become a mandatory requirement in some countries, most organisations' hands are being forced. Furthermore, investors and consumers alike are paying more attention to the way companies conduct their business, demanding sustainable initiatives to be transparently integrated into core operations. “From setting their own example to financing the transition to a carbonneutral economy to leveraging their role in lending and payments to create more robust reporting for both private and public companies, financial services firms are critical to driving global ESG progress,” said Tim Gokey, CEO of Broadridge.

FINSERV

“Gone are the days where businesses could claim 'we didn't know' know ” JINDER KANG

INNOVATION CONSULTANT, NETGURU

fintechmagazine.com

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FINSERV

How does FinTech support the Sustainable Development Goals?

“Financial players are making making efficient riskreturn decisions decisions by deploying more more capital into impact investing and sustainable sustainable investments” MANUEL ANTUNES

VENTURE CAPITALIST, MUSTARD SEED MAZE

Companies stand to benefit from adopting ESG criteria voluntarily rather than waiting for it to become law. In addition to helping the people and the planet, the ESGs can provide added benefits such as risk management, improved public image, and the attraction of top talent. Nevertheless, it is not an excuse to greenwash by implementing a few superficial changes. The fintech industry is embracing sustainable development in a number of ways. From supporting underserved communities by advancing financial inclusion to fighting climate change and recycling, fintech companies are working to improve society. Uncovering the carbon footprint of fintech In addition to fighting climate change, the fintech sector must avoid becoming the source of the problem. The carbon footprint of fintech companies has not been considered fintechmagazine.com

FINSERV

“Every fintech has the potential to be sustainable to some degree” EIMANTAS MATULAITIS

HEAD OF PARTNERSHIPS, FOROS

February 2022

FINTECH AND SUSTAINABLE DEVELOPMENT: CASE STUDIES 1) T reeCard: tackling carbon emissions using wooden debit cards

over one million people. This form of microfinancing

One example of an initiative combating climate

of people, including women and refugees, who

change is TreeCard, which makes debit cards

would otherwise not have access to capital.

out of sustainably sourced wood. These natural

has helped to provide a financial lifeline to millions

"In short, financial inclusion not only benefits

alternatives to plastics are biodegradable and

underserved individuals but also makes society

made using waste material from the lumber

and the economy stronger and more resilient," said

industry; additionally, they provide economic

Shane Holdaway, Founder and CEO of Mission Lane.

benefits to local communities.

There is an increase in fintech companies

When someone uses the TreeCard Debit Card

focusing on financial inclusion, whether in the

to make a payment, Mastercard collects an

"buy now, pay later" (BNPL) field or the credit-

interchange fee and pays the company, which

issuing vertical, including Kueski, Mission Lane,

it then uses to plant trees. It is a symbiotic

and Lulalend, to name a few..

relationship in which everyone benefits: the in local ecosystems while consumers receive a

3) C irca5000: investing in companies solving global issues

green card.

Circa500 is a UK-based fintech allowing people

company creates jobs and reduces CO² emissions

"Climate change is here, and it's important for

to invest in companies with a positive social

fintech companies to play a role in mitigating the

and environmental impact. Furthermore, it is

impact. Fintech companies can utilise their arsenal

transparent about where investors' money is going

of innovative technology and financing tools to

by providing information on each company's

incentivise and scale-up consumer adoption of

impact, including their energy consumption as well

cleantech, which is particularly important for

as equality, diversity and inclusion (ED&I) statistics.

decarbonising buildings," noted Lauren Salz, CEO and co-founder of Sealed. There are a number of similar fintechs working

Manuel Antunes, Venture Capitalist at Mustard Seed MAZE, an impact fund with €45m EUR of assets under management (AUM), with 24

on environmental issues, including Aspiration,

companies in its portfolio to date, thinks "financial

Tomorrow Bank, bunq, Stripe Climate, and Flowe,

players are making efficient risk-return decisions

among others.

by deploying more capital into (a) impact investing and (b) sustainable investments."

2) K IVA: providing loans to help people escape poverty

either (a) be exposed to businesses solving large

Kiva is a US-based social enterprise using

environmental or social problems, or (b) reduce

technology to connect people who need money

the climate and reputational risks of a given

with people who want to lend it. Its mission is to

investment," added Manuel.

break the cycle of poverty by providing access to

"These investments give the opportunity to

Some other fintech organisations focusing on

capital for entrepreneurs around the world. The

sustainable and impact investing include Clim8

organisation has a 97% repayment rate, which is a

Invest, Earthfolio, Impact Agora, OpenInvest,

testament to lenders' trust in the borrowers.

and Accion.

Since 2005, Kiva has crowdfunded more than $1.33bn USD in loans and has helped to support fintechmagazine.com

much in the past, but it is worth taking a closer look. After all, Bitcoin alone uses more energy than Argentina. Fintech companies should be more careful about the overall environmental effect of their actions and take steps to minimise it by asking questions such as: • What is the carbon footprint of our data centres? • Does our company and partner organisations use green energy? 76

February 2022

• What's the impact of our company and its affiliates on the environment? • How can we invest more sustainably? • What is the ESG impact of our company's investments and service providers? According to John Belizaire, Founder and CEO of Soluna, "The rise of cryptocurrency has brought up important questions about the environmental impact of energy usage associated with crypto mining, and other financial services like credit card

FINSERV

transactions and day trading. Hyperscale Computing currently uses 10% of the world's electricity, and that number is increasing rapidly. It, in many ways, keeps fossil fuel plants online because of their persistent need for energy. It's time to scale more affordable and sustainable methods like zero-carbon and batchable computing powered by renewables." The bottom line Fintech is impacting the financial sector in disruptive ways, and this is only set to increase in the coming years. With its focus on sustainability, fintech has the potential to help solve some of the world's most pressing issues. "Every fintech has the potential to be sustainable to some degree, and any efforts, however small, that help us move towards that goal should be welcomed. Nature and social inclusion need everyone's attention and contribution," added Eimantas Matulaitis, Head of Partnerships at Foros. In conclusion, it is imperative for the fintech sector to take a closer look at sustainable development and contribute to the effort of combatting social, environmental, and governance issues.

“It's time to scale more affordable and sustainable methods like zero-carbon and batchable computing powered by renewables” renewables JOHN BELIZAIRE

FOUNDER AND CEO, SOLUNA fintechmagazine.com

KIB: Digital journey to be top digital Islamic bank WRITTEN BY: JANET BRICE PRODUCED BY: MICHAEL BANYARD

February 2022

KIB

fintechmagazine.com

KIB

Kuwait International Bank (KIB) divulges its digital transformation efforts and how it is shaping its future as a ‘bank for life’

he ‘bank for life’ is the DNA of Kuwait International Bank (KIB), which is now catering to all generations with its digital transformation for access to its financial services, retail and corporate banking plus property management. Millennials and zoomers across the Middle East and North Africa are instinctively using apps on smartphones and online banking while loyal clients, who have been with the bank since it opened in 1973, are now embracing the new technology as it aims to become the number one digital Islamic bank in Kuwait with its digital transformation. From a technical perspective, the bank has retained components of its legacy architecture but developed its systems in line with its fundamental principles and the overall vision of the bank. Among the new services and products, KIB has launched seven new electronic services enabling customers to complete many of their transactions via the 24-hour call centre. KIB also offers a smartphone application that allows customers to open bank accounts and register with the Kuwaiti clearing company to transfer profits directly to their accounts electronically instead of visiting the company’s headquarters to collect checks.

February 2022

Example of an image caption fintechmagazine.com

KIB

KIB Mobile

This is in addition to the launch of the bank’s website with a new design and providing it with a ‘Live Chat’ service to communicate with the bank's employees through the VIVR service. In 2007, KIB adapted all its operations and processes to comply fully with Islamic financial law. Adhering to Shari’ah has enabled KIB to offer its clients a full range of traditional and innovative products and services. In January 2021, KIB was recognised as the fastest-growing Islamic Bank and best Shari’ah-compliant bank in the Middle East and North Africa by Capital Finance International Magazine - for the fifth consecutive year. This was in recognition of how KIB strives to innovate services that facilitate the banking experience for customers and enable them to complete their transactions 82

February 2022

without the need to visit branches — which has proved an asset during the coronavirus pandemic. Long-term vision post-pandemic The banking industry previously frowned upon the prospect of working from home, but as the pandemic hit and the country went into lockdown, KIB soon adapted to allow its employees to work remotely — switching 1,000 or more employees to remote working. As the company moves forward, it will focus on improving the management of distributed teams and creating effective communications between onsite and offsite workers. Accelerating the digital journey Over recent years, the company has accelerated its digital transformation efforts, which it believes to be much more

than a technical challenge. It requires the right people, processes and technologies to successfully implement the strategy. Since embarking on its digital journey, the company has come to realise how far behind it was and quickly identified the need for investment into innovation, as well as experiencing siloed operations and a poor cost-income ratio. Now, KIB is looking to accelerate its agile transformation and break down barriers between businesses by introducing cross-functional squads. It provides the necessary tools and methodologies to ensure successful digital banking applications, building the foundations to allow businesses to accelerate innovation in the future. Private versus public cloud As KIB moves forward, it focuses on artificial intelligence (AI) and a possible move to a public cloud from the current private cloud. Moving to a public cloud will depend on how aggressively the cloud service providers support Kuwait as a country. KIB anticipates a reluctant response from the central bank when discussing the

1973

Year founded

Branches in Kuwait

July 1, 2007 KIB has operated according to the Islamic Shari’ah since July 1, 2007

storage of sensitive data in the public cloud unless this takes place within its borders. It would require input from companies like Microsoft, Amazon and Google to set up data centres in Kuwait to manage this. Trust in the cloud is also one of the stumbling blocks. The Central Bank of Kuwait (CBK) doesn't want to risk exposing people through its Kuwait-based banking services. AI will be phased into KIB for repetitive tasks but will not replace the human touch, AI will also be used in low complexity tasks where human interaction is less important, such as a customer getting a response from the chatbot to say the branch is open. fintechmagazine.com

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Instilling a culture of innovation Thierno Diallo, VP of Client Delivery, explains how the company’s innovation-centric philosophy is helping KIB become a leading digital Islamic bank Skilled in the art of blending strategy, creativity, and engineering into effective digital solutions, Mobiquity understands the value of breathing new life into traditional industries. Thierno Diallo, Vice President of Client Delivery, an executive with over 15 years of consulting experience, explained how the company has been helping Kuwait International Bank (KIB) to achieve its goal of becoming a leading Islamic bank. From modernising back-end tech architecture to front-end functions like CRM, the company was successful in making KIB a fully digital organisation, replacing its core systems. Mobiquity’s aim was less about updating KIB as actually rebuilding a new, state-of-the-art bank. That kind of large-scale vision, Diallo states, is what his company specialises at instilling: “Digital transformation requires a modern way of thinking, and, because of legacy bank infrastructure, it’s much easier to start over than build on what came before. It’s less costly, you can act faster, and the result is often more sustainable.”

“‘Innovation’ isn’t so much the technology itself that we are putting out there, but rather the way we think and act.” Thierno Diallo, VP of Client Delivery, Mobiquity

With KIB’s transformation taking place relatively recently, Diallo is confident that the benefits of this first step in their journey are being felt. Innovation, for example, is a high cultural priority for Mobiquity and it readily imparts this to clients: “‘Innovation’ isn’t so much the technology itself that we are putting out there, but rather the way we think and act.” More than anything, Mobiquity demonstrates that cultural adjustment is just as important to digital transformation as technology. Fintechs, Diallo notes, have taken the industry limelight and traditional banks need to respond to the challenge. “What KIB wants to achieve with digital technology goes beyond banking; it’s thinking about the additional services that can actually increase customer loyalty. Innovative solutions around wearables and the shift away from physical branches will be where we’ll go together next.”

Watch xxxx

Learn more

Importance of digital partners To progress on the digital journey, KIB had to decide if it was going to build a digital platform itself or work with a partner. In the end, it selected software provider Backbase which is now helping give KIB the speed and flexibility to create and manage seamless customer experiences across any device. It also selected Mobiquity as its end-to-end system integrator. The company chose Backbase as the most suitable partner for its digital transformation, based on its position at the time, to leverage its capabilities in terms of customer experience. The digital consultancy, Mobiquity has also supported the development of the overall programme to build software that matches the company’s DNA and culture. An agile partner to help drive the company forward.

February 2022

KIB

SAP also played a critical role in data management as KIB had previously selected SAP HANA as its data warehouse prior to entering the transformation stage. Benefitting from the solution, KIB witnessed suitable integration of the product, which houses customer records. Kuwait International Bank KIB has always been a committed believer in the importance of social responsibility for all private sector organisations,

especially one as large and far-reaching as the Bank itself. KIB maintains a robust social responsibility programme that supports and participates in a wide range of social events. KIB also actively takes part in all major financial events on a national and regional level, including financial forums and conferences organised by the Central Bank of Kuwait and major financial organisations such as the Union of Arab Banks (UAB), the IMF, Euromoney and Forbes. fintechmagazine.com

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KIB

KIB TOP AWARDS INCLUDE: • Best Bank in Branch Design 2020 award from World Union of Arab Banks (WUAB) • Kuwait Deal of the Year 2020 • Qatar Deal of the Year 2019 • Regulatory Deal of the Year 2019 from Islamic Finance News (IFN) • Social Impact 2020/Best Socially Responsible Investment (SRI) • Best Environmental, Social and Governance (ESG)’ from Islamic Finance News (IFN)

KIB has a long history of being recognised by major regional and global industry awards across several areas, including social responsibility, creativity and innovation, design and branding, industry leadership, products and services. In 2020, the Bank garnered the Best Islamic Bank in Kuwait award for the seventh consecutive year from World Finance and was named the Most Secure Bank in Kuwait for 2020 by its editorial panel. The Bank was also named the Fastest Growing Islamic Bank and Best Sharia-Compliant Bank (MENA 2020), for the fifth time, and Best Sharia-Compliant Bank (MENA 2020), for the sixth time, by Capital Finance International (CFI.co).

February 2022

KIB

fintechmagazine.com

FINTECH TRENDS IN RETAIL: SHIFTING CONSUMER EXPECTATIONS The retail industry is seeing a trend of new technologies and innovations with the goal of making shopping more faster, convenient, and enjoyable WRITTEN BY: DERIN CAG

intech trends in retail are changing how consumers think about their relationships with retailers as they look for ways to save money and time while demanding more personalisation and convenience. According to Liron Damri, President of Forter, "In 2020 alone, eCommerce exceeded US$4.3trn, a volume originally forecasted for 2025." This article examines how financial services related to retail are evolving by adopting more 92

February 2022

innovative technology to adapt to the times and meet the demands of modern consumers. Providing easier payments One of the most apparent fintech trends in retail is the move to make payments more convenient. This shift in the way of doing things ranges from using mobile wallets and contactless payments to apps that allow people to scan items as they shop and pay for them later.

DIGITAL PAYMENTS

According to Maxim Kochnev, CEO at myPOS Technologies, "Consumers demand payments that make buying easier for them. This includes innovative options such as tap-

“ FINTECH IS ENABLING A WORLD OF EMBEDDED FINANCE WITH INNOVATIVE WAYS FOR SMES TO FUND THEIR BUSINESS AND SCALE” TAYO OVIOSU

FOUNDER AND CEO AT PAGA fintechmagazine.com

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DIGITAL PAYMENTS

to-phone and pin-on-glass technology or a fast checkout, which feels like a natural part of the customer experience." Improving access to finance Another trend is the steady rise in fintechs providing accessibility to finance during the purchase process, which is being made available through a number of different channels. These include apps to provide an instant credit score, loans for purchases in-store or online, and financial management tools to give consumers the ability to track their expenses. "For most small and medium businesses around the world, access to financing for their operations is lacking," said Tayo Oviosu, Founder and CEO at Paga, the leading payments platform in Nigeria. "Fintech is enabling a world of embedded finance with innovative ways for SMEs to fund their business and scale by giving fintech companies visibility to their transactions. We've seen the growth of working capital products, or Buy Now, Pay Later. Consumers also benefit from these developments as they now have more options at checkout."

“ FINTECHS AND BANKS HAVE THE TOOLS AND DATA SOURCES TO ANALYSE SMALL BUSINESS OWNERS' ACTIVITY AND HELP THEM MANAGE THEIR BUSINESS MORE EFFECTIVELY” DOREL BLITZ

VP OF STRATEGY AND BUSINESS DEVELOPMENT AT PERSONETICS

Supporting underserved communities In addition to making it easier for consumers to make payments, there is also a trend of using technology to help local sellers in underserved markets. This trend includes providing sellers with access to financial services and tools to allow them to sell online and reach a broader customer base. Tim Nixon, CEO and Founder at Trolley. com, thinks, "Fintech solutions open the playing field for increased seller participation: expanding access to sellers fintechmagazine.com

DIGITAL PAYMENTS

The Future of Banking: 2030 | Santander | FT Partner Content

“ FINTECH IS ENABLING A WORLD OF EMBEDDED FINANCE WITH INNOVATIVE WAYS FOR SMES TO FUND THEIR BUSINESS AND SCALE” TAYO OVIOSU

FOUNDER AND CEO AT PAGA

in more countries, allowing payouts in local currency and removing excessive FX fees, helping marketplaces settle with their sellers in a timely manner, and removing barriers to 96

February 2022

entry—which can be as simple as supporting alternative ways to payout a seller." Identifying bad actors The retail world is also seeing the use of new technology to identify people who break the law. This category includes using better identity authentication, credit scoring tools, and improved fraud detection solutions to help businesses improve their bottom line by reducing financial losses associated with electronic payments and transactions. Real-time decisioning, according to Liron Damri, may help reduce return abuse. He said, "If you can identify bad actors or repeat abusers, you can adjust policies in the moment. For example, a person who has frequently used an 'item not received' excuse must sign for delivery. A repeat returner

DIGITAL PAYMENTS

can buy merchandise, but it is all sales final. By bringing more consumer intelligence to eCommerce, businesses can reduce loss to return abuse while maintaining differentiated policies for their best customers." Enhancing transaction approval rates The need for increased security is pushing retailers to adopt new authentication tools and processes, such as reducing reliance on passwords. This change allows them to enhance their transaction approval rates while also reducing fraud levels in real-time. Fintechs can help retailers achieve it by using smart devices such as wearable gadgets or mobile phones that store biometric data to help authenticate individuals. "A key additional challenge rooted in the increasingly cross-border nature of transactions is approval rates - something extremely important to any retailer on the planet. Approval rates tend to decline dramatically when payments are not processed locally, and that leads to cart abandonment, lower sales and ultimately lower customer satisfaction," explained Mario Shiliashki, CEO of PayU. "Merchants, therefore, need to adopt methods to tackle these challenges, including payment methods that cater to local and global customer bases, single API connection and approval rate optimisation features."

data-driven personalisation could become even more common. "Fintechs and banks have the tools and data sources to analyse small business owners' activity and help them manage their business more effectively, starting from the basics of day to day to recovering from issues," said Dorel Blitz, VP of Strategy and Business Development at Personetics. "Business owners have a lot on their mind and tend to think about their business operations in terms of workflows: order-tocash, procure-to-pay, record and report. If fintechs and banks can think on behalf of businesses in this way, it will benefit both parties." The bottom line The retail space is undergoing significant changes driven by shifting consumer expectations and demand for improved ease of use. The advent of fintech has provided retailers with innovative solutions that have helped them to improve their bottom line while also making the shopping experience better for consumers. "Processes that used to take days, weeks, or even months, such as seeking a credit report or conducting an international money

Seeing the bigger picture Retailers can use the insights from transaction data to see how their businesses are growing and provide a more personalised shopping experience. A company might utilise customer purchase history to offer tailored discounts on their next visit and boost sales. As the fintech world moves towards realtime insights and analytics, this type of fintechmagazine.com

DIGITAL PAYMENTS

transfer, are now completed in minutes or seconds thanks to financial technology," noted Deepasha Kakkar, the founder and CEO of Crackitt. "Financial technology has the potential to streamline historically clumsy operations because it is focused on numbers rather than on human skills and judgments." "While a few years ago one-off new and exciting offerings were enough to win customers, if retail banks want to maintain loyalty, it's no longer about simply offering a pretty debit card or making the sign-up process quicker, but about delivering lifetime value to customers," added Andrew Warren, Head of BFS UK&I at Cognizant. In conclusion, the world of retail is changing, and fintech

February 2022

is helping to push it forward. As financial technology continues to evolve, more impressive innovations are likely to emerge to serve the retail sector.

DIGITAL PAYMENTS

“ FINTECH SOLUTIONS OPEN THE PLAYING FIELD FOR INCREASED SELLER PARTICIPATION” TIM NIXON

CEO AND FOUNDER AT TROLLEY.COM

fintechmagazine.com

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WORLD-LEADING FINSERVE SUPPORT THROUGH DIGITAL TRANSFORMATION WRITTEN BY: JOANNA ENGLAND PRODUCED BY: GLEN WHITE

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Gareth Wilson, Vice President and Head of Banking and Capital Markets, talks us through Capgemini’s role in transformation services

Gareth Wilson, Vice President and head of banking and capital markets

igital transformation has been sweeping across industries for the past decade. But the last two years have seen extraordinary changes ushered in as the global pandemic resulted in millions of companies shifting their focus to online services. The financial markets were, in the main, already in the transformational zone. But despite this, support and guidance as well as robust leadership, have been essential in maintaining stability in the space as transformative innovations have been introduced. Technology has played a leading role in bringing the finserve and banking industries to their online roles, and after servicing almost 30 years in the IT industry, Wilson brings a wealth of knowledge to the position that sees him lead consulting support to some of the world’s biggest financial institutions. He says, “I would say my background is probably heavily transformation-focused. And certainly what we've seen over the course of the last 20 years in financial services and in banking, and probably in society in general, is the increasing relevance and importance that technology plays in the context of operating models and in the context of customer and client engagement.” Wilson explains that although there's a very strong technology element to his experience and to the team at Capgemini, the primary focus is finding ways to leverage that for transformation. Today, they are fintechmagazine.com

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Capgemini: World-leading support via digital transformation

“ I think the banks are seeing a new level of competition for the ownership of the consumer” GARETH WILSON

VICE PRESIDENT AND HEAD OF BANKING AND CAPITAL MARKETS, CAPGEMINI

busier than ever before as the pandemic has driven extraordinary changes. “In the context of financial services and the banking industry,” he explains, “COVID has further accelerated the implications of technology, enabling people to work from home, enabling banks to engage with their customers and clients in a more remote fashion. Technology has been a key enabler on that basis.” 104

February 2022

The view at Capgemini is that the importance of technology in the context of transformation is only going to become more important as they look at the industry going forward, Wilson says. Capital markets and the banking industry The role played by capital markets and their contribution to the financial services industry has driven some key trends, in terms of investment, wealth management, and the use of data. In the context of a low-interest-rate environment, Wilson believes capital markets have been a key source of revenue and a funding source across the banking and financial services industry. “I think capital markets have played a really important role in that context,” he says, “but also in terms of the themes and the implications capital markets, technology and data has continued to be increasingly important. We've seen the investment

CAPGEMINI

banking and the asset managers and then the wealth managers look to take advantage of data and technology to enable their growth and to enable their relevance both to their customers and to the broader industry.” But there has also been a reemergence of the universal bank. And the traditional investment banking organisations are continuing to build out their retail banking relationships. Wilson says Goldman Sachs is a good example because it comes from a very strong investment banking heritage. The organisation is building out its retail proposition, which is called Marcus, and leveraging technology to effectively stand up that business. He points to another example in the UK, citing JPMC's introduction of a retail franchise, using their Chase branding and franchise, which looks to technology to differentiate that proposition in the mind of the customer.

TITLE: V ICE PRESIDENT AND HEAD OF BANKING AND CAPITAL MARKETS INDUSTRY: TECHNOLOGY & SERVICES LOCATION: LONDON A leader with a proven track record of developing long term client relationships and the successful management of large scale, complex, business critical client engagements. Strong business management skills combined with an understanding of clients' value drivers, and an ability to both shape and deliver sound commercial propositions, evident through business integration success at several clients most notably Barclays and Lloyds Banking Group.

EXECUTIVE BIO

Customer positioning in a changing marketplace Ultimately, the role of the customer has changed the focus of many businesses in the wake of the pandemic. This has been especially true within the banking and financial services industry, although the transformation was afoot long before covid hit. “The customer is the key element in terms of a business or a bank's ability to be relevant. Technology has evolved over the course of the last 20 years, alongside customer expectations. We've all become used to instant access, to carrying a significant amount of data and function around on our mobile phones and our handsets.” As a customer and as a consumer, Wilson points out that we've become comfortable with that context. Still, our expectations have also increased in terms of being able to transact instantaneously and having access

GARETH WILSON

CAPGEMINI

to products and services through our mobile devices or internet-enabled computers. He says, “from a financial services industry point of view, what the banks have had to do is develop and to ensure that they’re relevant to those changing customer expectations and requirements. I think in many respects, the financial services industry has done a good job. You look at how mobile banking has evolved over the last 15 years, but also at the emergence of the fintechs. I think the banks are seeing a new level of competition for the ownership of the consumer.” Traditional banks and fintechs side by side The agile nature of fintechs and their ability to scale and introduce products and services to the marketplace quickly, has jolted the traditional banking and financial services industry into action, as disruptive technologies cater to customer demands for more personalised services. Wilson uses Wise as an example of a fintech that has morphed according to climate and customer requirements. He says, “where Wise was originally targeting that cross-border, FX, multi-currency, the product they developed and secured a significant customer engagement, both with the customer experience, but also with the ease of access. The traditional banks have had to respond to that competition in terms of competing against fintech propositions, as well as working with the fintechs to enable banks to be equally relevant and bringing more engaging and positive customer experience to bear.” As a result, the partner ecosystem is becoming increasingly essential, with companies looking to scale and digitise, and banks needing to partner with fintechs to stay ahead with customer services. But it’s not a clear-cut space. Negotiation is tricky 106

February 2022

– with alignment and transparency on both sides, essential to success. “I think successful partnerships are also in alignment between the values and the culture of the respective organisations,” he says. “I think a big part of that is what the proposition, the technology, or the product can bring to that partnership. But a large element is also how we help the fintechs engage and align with larger organisations that potentially have different cultures, different governance, and different expectations.” Wilson says establishing that alignment on a softer more cultural relationship basis is as important to the success of the partnership as the technical aspects. “We've seen partnerships that are able to evolve. I think evolution is really important because the market and the industry are moving at pace. It’s a relationship that has to evolve in the context of both new

“ COVID-19 has been a very good example in terms of companies having the ability to move an operation or a team from working in a centralised manner to a very distributed manner” GARETH WILSON

VICE PRESIDENT AND HEAD OF BANKING AND CAPITAL MARKETS, CAPGEMINI

challenges, new opportunities, and that pace of change. If you don't have the softer alignment at a relationship and a governance and a cultural level, then those partnerships are less likely to be successful.”

Banking intelligence and the legacy system Even though fintechs have the support of the younger, mobile-ready generations, traditional banks have trust and history on their side. Research shows that customers have faith in the systems. And therefore, traditional banks are maintaining their relevancy as they digitally transform. “Traditional banks becoming more intelligent, I think the advantage that banks have and our recent research has reinforced this,” says Wilson, who goes on to explain that trust in banks has increased during the COVID-19 pandemic. “We feel very comfortable in terms of the banks being able to execute our transactions,” he explains. “Potentially, in terms of the pure integrity of the banking transaction, I think the banks have got a very, very strong trust position.” fintechmagazine.com

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“ I think the pace of transformation is only going to increase over the next five to 10 years” GARETH WILSON

VICE PRESIDENT AND HEAD OF BANKING AND CAPITAL MARKETS, CAPGEMINI

CAPGEMINI

Data is the second biggest advantage, according to Wilson. Banks benefit from a significant amount of data and information about consumers, whether that be a retail banking customer, a commercial customer, or a corporate customer. Those two aspects give the banks a tremendous advantage. However, he says, they do need to be more responsive in a customer context. “I think banks need to be more agile in terms of how they take advantage of that data, how they take advantage of that trust and potentially take advantage of this broader ecosystem. The legacy challenges with banks are technology constraints, but I think one of the larger constraints is the speed of decision making and their ability to respond quickly.” Wilson says that although some banks come from robust governance and a control perspective, in some respects, it inhibits and limits their ability to respond and change at pace. However, he believes there is an opportunity for the banks to take advantage of the trust and their data-rich position. Banks also need to become more agile in terms of how they change to address the market opportunities. Thirdly, Wilson believes they can participate more actively in that ecosystem to take advantage of some of the cloud-native technology that has developed over the last decade. “We've seen a significant increase of the hyperscalers, the cloud platforms, whether it be Amazon Web Services or Google Cloud Platform or Microsoft Azure,” he says. “It's certainly a multifaceted challenge. And I think that's probably why the transformation of the industry is both such a complex issue, but also such an exciting opportunity.” Customer centricity and services Customer centricity has become central to all finserve operations that are successful. fintechmagazine.com

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Fintechs, he explains, have become part of that ecosystem, and they are becoming more global. Indeed, banks can learn from the fintechs in terms of how they've captured the consumer and captured the customer's expectations. However, Wilson is also quick to point out that it’s not a one-way street. “I think there are also some things that the fintechs can learn from the banks in terms of that journey from popularity to profitability. And I think the banks have very much been on that journey and as they become more global, we see convergence in terms of the fintechs gaining scale. But I think the banks need to learn to be more agile and more customer-centric and probably more innovative too.”

Expectations are evolving and will continue to play a dominant role in the direction and core principles of companies. Since COVID-19, the drive has been exacerbated, and customers demand products and services that deliver instantaneous results in a cost-effective manner. “In many respects, that's a new norm,” says Wilson. “I think for the financial services industry and for the banks, changing consumer and customer expectations is a feature of the environment that we're all operating within. We've also seen some of the fintechs grow from, what I would describe as popularity, with a kind of a niche product or a monoline product, which challenges the status quo, which meets some of that particular customer expectations.” 110

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The company culture Much of this willingness to learn from each other comes down to each company’s culture because if neither entity believes they can learn from each other, the partnership won’t reap success. “Risk and control are important,” says Wilson, “because in financial services, we always need to maintain that kind of regulatory governance.” He continues, “being responsive and increasing the speed to market is also key. And again, I think the talent that we have within the financial services industry is incredibly important. We're certainly seeing the war for talent across financial services and across the industry, because there's a very strong recognition that we don't just have to change in the context of our products and services, we also have to change in the context of our culture and the talent that enables that.” He explains that traditionally, the banking industry has been quite conservative, and the talent pool invested and focused on has

CAPGEMINI

“ I think evolution is really important because the market and the industry is moving at pace” GARETH WILSON

VICE PRESIDENT AND HEAD OF BANKING AND CAPITAL MARKETS, CAPGEMINI

come from a banking industry heritage and perspective. However, with the advent of the hyperscalers and engineering technology across other industries there's an opportunity for banks to take advantage of that talent, but also bring some new perspectives in terms of how to become more agile, and how to change more quickly. fintechmagazine.com

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Strategic partnerships and goals Alongside agility comes the question of resilience. If industries across the board have learned anything over the past two years, it’s that when a crisis hits, they must be ready to manage it. And this needs to be facilitated across multiple levels. Technology again, is stepping up and providing those options. Wilson says, “we have enabled some of that resilience naturally through the development of technology. Within the industry, it’s partly being promoted by the regulators. But we're seeing a greater level of comfort with the kind of public cloud propositions that are enabling the banks and the financial services industry to take advantage of that.” He continues, “COVID-19 has been a very good example in terms of companies having the ability to move an operation or a team 112

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from working in a centralised manner to a very distributed manner. I think it's really important at a leadership level that the banks, the leadership, and the executive team have that resilience very much in the forefront of the strategy and the design and the culture for their organisation.” The next decade and beyond The next 10 years look set to usher in unimaginable changes to the financial services and banking space. From central bank digital currencies and crypto to NFTs and ewallets, as well as blockchain, technology will be a key disrupter. Then there will be the market shifts, rocked by a global pandemic, reeling from fluctuating interest rates and suffering from instability across global wide industries as supply chains struggle to recover their flow.

Coupled with this is the customer expectation, ESG directives, data gravity, advances in 5G and more. The future – even in just 10 years, almost seems difficult to envisage. Wilson agrees. He says, “I think the pace of transformation is only going to increase over the next five to 10 years. We've talked about the customer's expectations. We have talked about how the banks are very data rich, but not necessarily very data-centric. “We've talked about the speed with which technology is evolving and becomes a kind of a key enabler for future business models and future growth. And we've talked about the ecosystem and how the fintech community is going to become increasingly important as we look forward across the financial services industry.

“So there's a number of factors which I think will continue to be very important to the financial services industry, to our banking and capital markets clients. He adds, “our aspiration from a Capgemini point of view is to be relevant on all those dimensions, namely, enabling the banks to build ecosystems and participate within those ecosystems, enabling them to take advantage of technology as it evolves and innovates, and then finally, enabling those organisations to have the appropriate culture and leadership and talent to take advantage of the opportunity we see across the industry.”

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VENTURE L A T I P A IN C FINTEC H : THE ULTIMATE GUIDE

TECHNOLOGY

AS FINTECH CONTINUES TO TRANSFORM TRADITIONAL FINANCE, VENTURE CAPITALISTS ARE TAKING NOTE AND POURING INCREASING LEVELS OF MONEY INTO THE SECTOR

he world of fintech is changing rapidly; there are constantly new innovations, and venture capital (VC) firms are looking for ways to make investments pay off big in the future. Private investors usually take risks and aren't afraid to support outlandish ideas, and this has led many entrepreneurs and companies on the road to success. At the same time, there are also a lot of failures when it comes to startups. This complete guide uncovers insights straight from the professionals on both sides of the VC world, from fintechs that have obtained significant funding to investors with multi-million dollar budgets. The balance of financial power is shifting There is a rapid move towards democratising access to investment resources that were previously only available to wealthy families and heritage banks. According to Doug Ludlow, Co-Founder and CEO of MainStreet, "We're watching financial power shift from enormous, global institutions to individuals. This is perhaps the most profound shift in the financial balance of power since the Medicis reinvented banking and finance 500 years ago." The balance of financial power has moved away from a few concentrated institutions to the hands of the many. This shift is being fuelled by a combination of technological innovation, new business models, and rapidly growing consumer demand for more dynamic financial services.

"It's no surprise that the startup world, entrepreneurs and venture capitalists alike, are taking full advantage of this shift. There are multiple trillion-dollar industries that are currently up for grabs, and the shift in the balance of financial power will be profound," added Doug. The role of venture capital firms in the fintech revolution Until now, the fintech revolution has been led predominantly by venture capital firms, which have played a significant role in the growth and development of the sector. Basil Moftah, General Partner at Global Ventures, describes them as "crucial connectors in the fintech ecosystem." They also offer valuable advice and mentorship, which can be instrumental in helping companies succeed. Furthermore, they can act as a sounding board for new ideas and help entrepreneurs navigate through the complex world of finance.

“ WE'RE WATCHING FINANCIAL POWER SHIFT FROM ENORMOUS, GLOBAL INSTITUTIONS TO INDIVIDUALS” DOUG LUDLOW

CO-FOUNDER AND CEO OF MAINSTREET

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The platform economy is not just changing banking It’s fighting hunger, too.

IMAGE: GETTYIMAGES.COM

he platform economy is changing the globe, creating and connecting communities in every industry. Digital access allows new markets to flourish, so that users can share resources, interact and transact with more reach and impact than ever before. As a result, businesses and their customers are forging meaningful relationships that support more than just the bottom line. Financial services institutions are realising the opportunities this new economy offers. Recently, Standard Bank Group released the paper The Power of the Platform Economy for Financial Services, which highlighted the need for end-toend solutions and the necessity of building strong partnerships and ecosystems driven by data and insights. The Standard Bank Group is involved in developing such partnerships with fintech and BigTech companies such as Salesforce, Microsoft Azure and Amazon Web Services. One strategic partnership that has evolved over the past

two years to make a positive impact in communities is OneFarm Share. The platform grew as a response to the challenge faced by many developing countries and amplified during Covid-19 lockdowns: food security and hunger. OneFarm Share (facilitated through a partnership between HelloChoice and Standard Bank Group) provides a digital business-to-business platform that allows emerging and commercial farmers to sell and donate their produce to new markets. By December 2021, 5 900 tonnes of produce had been distributed and nearly 24 million meals provided through the platform. This year, the plan is to distribute 10 000 tonnes of food and provide more than 50 million meals across South Africa. Visit standardbank.com to find out more. OneFarm Share is a digital business-to-business platform (facilitated through a partnership between HelloChoice and Standard Bank Group) that allows emerging and commercial farmers to sell or donate their produce to new markets. Since its launch it has provided more than 24 million meals to various communities. Watch our video here.

Standard Bank is an authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06).

TECHNOLOGY

“ VCS, AT THEIR CORE, ARE ACTUALLY FINTECH COMPANIES, SO THERE IS ALWAYS A SYMBIOSIS” EZRA GARDNER

CO-FOUNDER AND PARTNER AT VARANA CAPITAL

"VCs, at their core, are actually fintech companies, so there is always a symbiosis. Financial systems are always evolving, at times slowly, and at times very rapidly," said Ezra Gardner, Co-Founder and Partner at Varana Capital. "The evolution is about to get more dramatic than ever (and we haven't even touched on crypto), and this is why fintech is so necessarily attractive to VCs now." Venture capitalists are like the glue that holds the fintech and conventional financial world together, and their role will only increase in the future. Many investment firms, for example, provide backing as early as seed funding and can continue supporting companies through to public listing on NASDAQ and other stock exchanges.

WHAT ARE VENTURE CAPITALISTS LOOKING FOR IN FINTECH COMPANIES? Background First and foremost, venture capitalists want to know the team behind the project. It's not only about an idea or a product, but it is also important to consider who will lead and innovate these new technologybased concepts. "We see VCs looking for bold movers in fintech and the ones who also have a credible background. In fintech, startups very often forget that it's not simply the tech that flies but 'regtech'. Meaning startups have to know the industry, be able to hack the laws and have respectful relationships with regulators. In the long term, this is the winning combination," noted Kaidi Ruusalepp, Founder and CEO at Funderbeam.

Problem-solving Second, venture capitalists tend to be on the lookout for startups with the ability to solve real-world problems or align with the future they envision. Many of fintechmagazine.com

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LEARNING FROM FINTECH COMPANIES WITH SUCCESSFUL FUNDING EXPERIENCE Happy Money Since being founded in 2009, Happy Money has raised a total of more than $140m USD. The company is established around helping people manage their finances properly through various means of new technologies. "I've learned that investors are not afraid to let you know what they think, and that is of huge value. Take the feedback, test, iterate, and learn," said Jeff Winner, CEO of Happy Money. "Also, as an engineer, I like to keep the discussion open, tell them what I am going to accomplish, and then come back and prove it." Jeeves Founded in 2019, Jeeves is a New Yorkbased fintech company providing financial alternatives to organisations all around the world. So far, it has raised a total of $188m USD in venture capital funding. "As a founder, raising venture capital means giving up control and economics in your company in exchange for money," explained Sherwin Gandhi, Co-Founder and President of Jeeves. "What I've learned is that the check size or investor logo does not determine how helpful the investor can be. The investor's network, their investormarket fit, and general willingness to help with recruiting and fundraising cannot be measured by the amount of money invested in a startup, yet those are some of the most important relationship features!"

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these investors are willing to take risks, but they also want to see positive changes taking place. "When you're looking to raise capital, you must be able to address two questions: how big is your problem and how good is your solution at solving this problem," said Antoine Argouges, Founder and CEO of Tulipshare. "What has become clear from the past two years is that our system is broken, and shouting about it has brought no meaningful change. What is needed now is action."

“ I'VE LEARNED THAT INVESTORS ARE NOT AFRAID TO LET YOU KNOW WHAT THEY THINK, AND THAT IS OF HUGE VALUE” JEFF WINNER CEO OF HAPPY MONEY Potential Third, venture capitalists are looking for potential. They often want to see ideas with the ability to scale and be adopted by a large number of people. "In my opinion, what attracts VCs to fintech is their potential and the opportunities for the next unicorn," stated Laurent Lamothe, Founder of R-Ventures and Former Prime Minister of Haiti. "There's so much demand for easier, quicker, less costly payment systems and still room for more disruption in the financial sector." Other points to consider In addition to being credible, solving problems, and having potential, venture capitalists are also looking for the following in fintech startups: • Team • Business Model • Competitive Landscape

• Vision/Execution • Funding Requirements Most of all, VCs are looking for a return on investment (ROI), which is why they are prepared to take risks in the first place. There are also other criteria they look for in fintech projects, but the ones listed above are some of the most important. The bottom line The financial industry is undergoing a number of significant changes, and there is no sign that this will stop anytime soon. Venture capital firms are contributing a lot

“ WE SEE VCS LOOKING FOR BOLD MOVERS IN FINTECH AND THE ONES WHO ALSO HAVE A CREDIBLE BACKGROUND” KAIDI RUUSALEPP

FOUNDER AND CEO AT FUNDERBEAM

to the fintech industry, and they are funding startups to enable a new generation of financial services providers to emerge. As a result, many positive changes have already taken place in terms of making payments more accessible and improving access to credit for people around the world. Therefore, it is crucial to grasp what venture investors contribute to the growth of fintech and why they are essential to the industry. fintechmagazine.com

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VISA – PAYMENTS, PROCUREMENT, AND THE GREAT PANDEMIC PIVOT WRITTEN BY: SCOTT BIRCH

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PRODUCED BY: GLEN WHITE

VISA

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VISA

Mano Manikkam , Senior Director, Head of Global Sourcing – APAC at VISA on the payment giant’s digital transformation and procurement pivot

ew functions have received more recognition in global organisations since 2020 than procurement. Alongside IT, procurement professionals have weathered the many storms produced by the pandemic and steered companies to safe harbours. More than one leading executive has said that procurement has cemented its position and proven its importance, while making CPOs the “rock stars” of the C-suite. Mano Manikkam is far too humble to describe himself in such terms. Like so many procurement leaders, he seems more comfortable quietly getting on with his job, ensuring that the function stays in the shadows for all the right reasons. On a visit to the UK from his base in Singapore, the Senior Director of Global Sourcing, Asia Pacific, Visa, takes time from his busy schedule to visit BizClik’s HQ in Norwich. This is worth mentioning as it speaks volumes about his modus operandi – he is on leave yet still makes the time to share the Visa success story as they navigated the procurement challenges of the COVID-19 pandemic, accelerated their digital transformation and all the while keeping a close eye on their suppliers and key partners.

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MANO MANIKKAM TITLE: SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC COMPANY: VISA

“Digital transformation is not just a onetime initiative – it is a long-term investment”

INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: SINGAPORE

Mano Manikkam is a procurement leader with an extensive track record of building and transforming procurement teams into world-class functions for Corporates across US, Europe and Asia Pacific. He joined Visa in June 2014 and consistently leads and delivers high-value procurement services in Strategic Sourcing and Category Management – achieving significant ROI and generating sustainable cost savings through driving best practice and continuous improvements initiatives.

MANO MANIKKAM

EXECUTIVE BIO

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

Manikkam has many areas of expertise built in a 25-year career, enabling him to master complex and demanding procurement and program management activities. Specialities include Operational Transformation, Procurement Processes Modeling, Data Analysis & Reporting, Category Planning and Management, Vendor Relationship Management, and Change Management.

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VISA

He beams a warm smile as he reaches for his smartphone and shares photos of his recent visit to Anfield, home of his beloved Liverpool Football Club – football being a universal, global language and reference. Equally ubiquitous is Visa, or as their latest strapline puts it, “everywhere you want to be”. The payments giant has faced unprecedented change, as the world transitioned to more digital payments, while also having to manage its own reaction to remote working, supply chain disruption and global shortages. All in a day’s work for a procurement leader? “Over the 20-plus years of my career, I've seen procurement change vastly from initially just being a processing function for most companies,” says Manikkam. “Now more of what we see in the industry is procurement functions being closer to the business, and even to the clients, to drive better business value to reach business goals.” Manikkam’s scope covers the whole spectrum of procurement in 22 markets in Asia Pacific across all spend categories, working with diverse suppliers at a localised level. Manikkam’s career started as a consultant and he worked his way towards middle management in consulting and then switched over to the corporate world on the client side. That has seen him work across multiple regions – in the US, in Europe and also in Asia – and in global companies across multiple industries and sectors. It has been a solid career path, with foundations formed while performing military National Service duties in Singapore. “I spent three years in the Singapore army as a commissioned army officer within the Ist 126

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Commando Battalion,” he recalls. “It taught me a lot of things, especially leadership skills, self-discipline and development in my mental and physical endurance. I was put in situations where I had to react quickly, thinking out of the box and also overcoming challenges to deliver outcomes. So now when I'm in the corporate world and face similar challenges – people challenges, organisational and transformational challenges, operational challenges – what I have gained from those learnings has been very helpful for me.”

1958

Year founded

20,500

Number of employees worldwide (2020)

On the subject of Singapore, a renowned hub for trade and financial services seen as the gateway to Asia for many Global and Western organisations, how important is it in a digital world to have a physical presence in market? As more organisations transition to remote and digital, does location even matter anymore or has that concept become redundant? Manikkam admits that we live in a digital, borderless world today, but believes

certain businesses cannot be successful unless they are localised. “Location is absolutely still important for physical impact on specific markets and industries, especially in a region like Asia Pacific,” he says. “It's a multicultural environment with fragmentation of rich culture and traditions and how business is done in those markets is unique compared to other regions. So companies with ambitions to grow in the region have to be present rather than work virtually.” fintechmagazine.com

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INSIGHT...

MANO ON PARTNERSHIP

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We have recently partnered with Simfoni and went Live with a new spend analytics tool. This allows us to make necessary advancements in consolidated automated data feeds, enriched data and more user friendly data visualization capabilities. It also allows us to create comprehensive analysis of all main spend categories and sub-categories along with supplier fragmentation and the ability to generate reports on high-level overview of spend and volumetric profile by different parameters. The tool allows us as an organization to mature in our reporting capabilities with enriched data and help drive better informed category management and discussions with our business partners.

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VISA

“Our focus hasn't changed. We have learned a lot from this past 12-18 months and we are ready and prepared to apply those learnings as we move forward” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

Meet Visa

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SEE SPEND DIFFERENTLY

See what better spend management can do for you. BOOK A DEMO

VISA DEVELOPS NEW, SOCIALLY RESPONSIBLE SPEND DEPARTMENT WITH SIMFONI When Simfoni analyzes data for its clients, they leave nothing unchecked. The Californian-based startup’s top priority is to provide “the complete picture” on how companies spend money, and how they can spend it more effectively, profitably, and responsibly. Simfoni is designed to make the spending processes of the supply chain as efficient and effective as possible by bringing together all relevant data, no matter the type, size or source. Jason Stern, CEO Simfoni Spend Intelligence, explains, “We provide a suite of applications with spend analytics at the core. Those applications help customers drive better cost savings, identify risks within their supply chain, and create greater procurement efficiencies.” Stern continued, “But that’s just the tip of the iceberg. What’s becoming increasingly important to our customers is focusing on CSR initiatives. They’re looking to use Simfoni to help customers find ways to ensure their spending is as socially responsible as possible,’ he says.

Simfoni’s four-year relationship with Visa is a prime example of this shift in the focus of organizations’ spend management. “Visa wanted a clearer picture of its global spending, that’s why they came to us,” says Stern. “Initially, we were able to give Visa that detailed vision to enhance efficiencies and reduce risk.” But it was the next stage that took Visa to the next level. “We were able to help Visa really step up in terms of its CSR,” says Stern. “Just by drilling down into their spend we were able to help them create a Supplier Diversity Department. With Simfoni, Visa can now calculate the impact they have across a multitude of communities through their supply chain. This data provides huge amounts of quantifiable and valuable Environmental, Social & Governance (ESG).”

VISA

Creating a Digital roadmap for Sourcing success Mannikam says that Visa has a road map for digital transformation that is part of their continuous improvement to benchmark themselves against the industry and where they should be heading. The pandemic came along and, in an unexpected way, actually supported Visa’s transformation, as it did with many companies that were prepared for the move towards digitalisation of their operations. Manikkam says the pandemic “almost enhanced the necessity of why we should be transforming digitally”. Most communities transformed digitally in the last two years, certainly when it came to making payments. Visa already had multiple payment flows and the shift to more focus on digital and contactless

procurement? How is that impacted by this digital roadmap? “We are looking at it right from the ground up – from the baseline P2P platform that will allow us to build on other modules beyond that,” says Manikkam. “We're not just stopping with the initial requirements coming from the business but also handling category management activities on that platform, contractual authoring, and also review – all the way up to payments and settlement. That will be the foundation and eventually, it will grow to look at Supplier Risk review, Supplier Relationship Management, and Supplier Performance Management and possibly Supplier diversity too. “We've tried to look at it from an end-toend process improvement standpoint, as an opportunity to bring it all together.”

was already part of the digitalisation of the payments industry. The pandemic actually encouraged Visa to drive its third-party supplier partnerships to enhance growth in digitalisation and digital payments. But what about when it comes to

Importance of partnerships We discuss the topic that refuses to go away – the pandemic – and the inevitable digital transformation that it obviously accelerated. Manikkam, like so many forward-thinking global executives, acknowledges that the terrible virus has also delivered some positive change. Not least, it has galvanised relationships with key partners. “We work with a lot of key partners within our digital transformation initiatives,” he says. “The partners we work with are absolutely key because they provide us with a lot of knowledge, intelligence and more industry-standard ways of working and benchmarking ourselves to delivery our transformation goals successfully. “Digital transformation is not just a onetime initiative – it is a long-term investment and it should be a way to build and grow the operations forward rather than a plug-the-gap kind of solution.

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INSIGHT...

MANO ON SUSTAINABILITY “Sustainability is a big topic that we are working with our businesses to get closer to and address. We have corporate goals on sustainability and we do see our clients asking for it too. When we work with our suppliers, they have to ensure they are also compliant and adhering to these sustainability goals.”

“In our procurement function, we focus on the partnership with third-party providers and vendors and they are the ones that provide the critical services that allow us to deliver value to our clients so we have to ensure that we select the right partners, we create the right relationship, capture the right delivery and commercial mechanisms and contractual structure so that they can deliver great value for Visa’s clients.” The changes forced by the pandemic are not just limited to an increased reliance on digital solutions or new processes – there was also a significant shift in business fintechmagazine.com

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VISA

“ Supplier diversity enables and supports innovation” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

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attitude and behaviour towards the procurement function. Manikkam says procurement has traditionally been perceived in different ways by different companies but procurement is the “main artery to the financial spine of every company”. “From being viewed as just processing backend operations, the procurement function is now elevated closer to the business, and they look at us as trusted advisers and enablers of driving the business forward rather than being a roadblock. “That's a cultural change which a lot of companies struggled with. So when you're leading a procurement function you’ve got to also factor that in to ensure that it is a cultural change. It is not just about changing the procurement function, but also changing the behaviour of the entire company to accept that change.” fintechmagazine.com

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VISA

VISA – payments, procurement, and the great pandemic pivot

“We shouldn't be shy of trying new ideas, new ways of doing things, new strategies – especially in regions like Asia Pacific” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

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It has been a turbulent time for Visa, as it has for all global organisations, coping with an unexpected crisis and accelerated change, and Manikkam admits his team has learned a lot from the experience as they have adapted to a new way of working. “Our focus hasn't changed,” says Manikkam. “We have learned a lot from

the past 12-18 months and we are ready and prepared to apply those learnings as we move forward”. “We shouldn't be shy of trying new ideas, new ways of doing things, new strategies – especially in regions like Asia Pacific where it is very fragmented and government and regulatory guidances are changing on a regular basis. We need fintechmagazine.com

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INSIGHT...

MANO ON CATEGORY MANAGEMENT

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“Category management is absolutely a critical part of the procurement spectrum and some companies do not invest enough in it or do not understand the great value that they can deliver. Category management builds the relationship with the strategic end and also helps to drive the implementation, ensuring activities and initiatives are delivered to align with those sourcing strategies. Category management is also important to manage relationships – not only with our internal stakeholders but also with our supply market so it is an absolutely critical function.”

February 2022

VISA

to ensure that we stay close to our supply market, understand them, understand how they are impacted by regulatory changes and react accordingly to get the best for VISA.” Looking ahead, Manikkam says innovation is absolutely critical for VISA and being integrated into thought processes within the procurement function.

“Supplier diversity enables and supports innovation,” he says. “The key suppliers are always there but a lot of smaller suppliers are coming up with cutting-edge technology and ideas that take things further, and that's worth exploring.”

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UNICORNS O

We take a look at the fastest scaling fintech companies dominating the headlines WRITTEN BY: JOANNA ENGLAND

he year 2021 was an extraordinary one for fintechs. Despite the global crisis, companies have scaled at speed, and by July 2021, 199 new fintech unicorns had announced their valuations. Since then, the number has increased, and this year looks set to be even more competitive for successful fintechs. We take a look at the new market entrant unicorns that look set to disrupt the industry over the next 12 months.

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TrueLayer

Valuation: $1bn Latest funding round: $130mn The UK-based fintech TrueLayer achieved Unicorn status in September 2021 following a $130mn mega funding round. The open banking platform processed billions in payments in 2021 and experienced an incredible 400% growth in monthly payment volume and 800% growth in monthly payment value. The company also doubled its customer base in 12 months. Currently, TrueLayer boasts more than 95% coverage and accounts for more than half of all open banking traffic in the UK. The company has stated the latest finding will enable it to break into new marketplaces globally.

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Xtransfer

Valuation: $1bn Latest funding round: $138mn The fintech industry in China has had a tricky time of late, with new regulatory directives that have placed a number of restrictions on the way fintechs operate within mainland China. However, Xtransfer, offers cross border payment, B2B payment, offshore account, foreign exchange, and other services – an area of fintech in Asia that remains highly opportunistic for startups and investors. Based in Shanghai and founded in 2017, Xtransfer is also China's leading one-stop crossborder financial services and risk management company.

Betterment

Valuation: $1.3bn Latest funding round: $60mn Betterment launched in 2010 and was the world’s first ‘robo investment platform’ to operate via mobile technology. At the time of its launch, industry experts met it with scepticism, who described the platform as ‘too simple’ for users and criticised it for not being ‘more confusing’. Betterment’s disruptive technology makes investments for users simple and manageable. It enables those who don’t understand the process clearly to allow the innovative and algorithmic solution to manage their money safely.

Blockdeamon

Valuation: $1.3bn Latest funding round: $155mn Making the most of the blockchain boom, Blockdaemon is the world’s largest blockchain node infrastructure company. Backed by Softbank in its latest funding round, the crypto payments provider was originally founded in 2013. According to reports, Blockdaemon is the foundational layer to the blockchain industry, enabling participants to transact, stake and earn via nodes in one simple interface with institutionalgrade security, scalability, and reliability. The company supports 40+ cutting edge blockchain networks, including ETH 2.0, Bitcoin, Solana, Terra, Cardano, Polkadot, Cosmos, SKALE and MobileCoin. fintechmagazine.com

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DISCOVER WHO MADE THE CUT. Top 100 Companies in FinTech Read Now

A BizClik Media Group Brand

Creating Digital Communities

TOP 10

Ledger

Valuation: $1.bn Latest funding round: $380mn

06 Scalable Capital

Valuation: $1.4bn Latest finding round: $180mn The Munich and Berlin-based German fintech, Scalable Capital, German investech, is a passive investment strategy investing in exchange traded funds (ETFs) which invests in various asset classes. Scalable Capital then adjusts its portfolios if the risk model algorithm forecasts an increase in downside risk, creating an evolving investment solution for users. Founded in 2014 but not officially launched until 2016, the platform has proven popular with a range of international customers and investors.

Launched in 2014 and headquartered in Paris, Ledger develops security and infrastructure solutions for cryptocurrencies as well as blockchain applications for individuals and companies by leveraging disruptive, proprietary technology. The fintech is a global leader in the market, with 1,000,000 units sold in more than 165 countries. Ledger also recently introduced the Vault, a fully managed SaaS solution addressing the need to safeguard a considerable amount of multiple cryptocurrencies while mitigating both IT and physical assault threats.

edger App, L Ledger Nano X Ledger Nano S

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04 Trulioo

Valuation: $1.8bn Latest funding round: $394mn Founded in 2011, Trulioo is a Canadian fintech security company that provides access to hundreds of procured and vetted data sources globally through a streamlined API. The company offers robust security and privacy standards combined with the latest solutions in AI, biometrics, and cloud computing. Trulioo’s international platform has access to information on more than five billion people and 250 million companies. With security and biometric data playing an increasingly important role within commerce, Trulioo’s swiftly scaling success doesn’t look set to slow down any time soon.

03 Clip

Valuation: $2bn Latest funding round: $250mn The Mexican payments startup Clip launched in 2012 and is another scaling fintech that Softbank has backed. Based in Mexico City, Clip is busy revolutionising the card acceptance space in the Latin American country. It was founded by financial technology and business heavyweights Adolfo Babatz and Vilash Poovala. The company offers different models of portable card-reading hardware to accept all credit and debit cards as well as other solutions. More than a device to accept all cards, Clip is an ally focused on empowering Mexican businesses.

TOP 10

Mercado Bitcoin

Valuation: $2.1bn Latest funding round: $200mn

Founded in 2013, Mercado Bitcoin is now Brazil’s biggest cryptocurrency exchange and has just added the Shiba Inu to its repertoire of digital assets to trade. Backed by Softbank in a massive funding round in June 2021, the South America fintech is owned by 2TM and is the largest crypto exchange in the subcontinent. The parent company also raised $50.3mn in November 2021 following the mega SoftBank-led investment round. Mercado Bitcoin also recently reached an agreement with Brazilian energy trader Comerc to release two renewable energy tokens. The first token functions as a cashback reward for Comerc customers who generate renewable energy through the company’s distributed generation system, Sou Vagalume. The second token is still being developed but is backed by the International REC Standard, a certificate that documents electricity consumption from renewable energy sources.

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Shaping the Future of Financial Technology

2022

9th - 10th November

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A BizClik Media Group Event:

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Join us at Fintech LIVE Showcase your values, products and services to your partners and customers at Fintech LIVE 2022. Brought to you by BizClik Media Group, the hybrid event will be held in London between November 9th-10th and broadcast live to the world. With a comprehensive content programme featuring senior industry leaders and expert analysts, this is an opportunity to put yourself and your brand in front of key industry decision makers.

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From keynote addresses to lively roundtables, fireside discussions to topical presentations, Q&A sessions to 1-2-1 networking, the 2-day hybrid show is an essential deep dive into issues impacting the future of each industry today. Global giants and innovative startups will all find the perfect platform with direct access to an engaged and active audience. You can’t afford to miss this opportunity. See you on:

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Europe’s leading open banking platform

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Tink

Valuation: $2.4bn Latest funding round: $103mn

Following a massive $103mn funding round in December of 2020, the open banking startup Tink has moved from strength to strength. Following a series of opportune collaborations with strategic industry partners, the fintech was acquired by Visa for $2bn in June of 2021. Tink is a Swedish company based in Stockholm. It shot to success following its disruptive solutions that saw it aggregate a number of banks and financial service providers through its embedded API. Launched in 2012, it is partnered with PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB, some of which are also strategic investors. It also has recorded an estimated 8,000 developers using its APIs. Daniel Kjellén, Co-Founder and CEO at Tink, recently told the press, “As open banking moves towards mainstream adoption, we’re not surprised to see investments in data-driven initiatives increasing.”

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CONNECTED MOTOR INSURANCE FOR MARKET NICHES

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TICKER

WRITTEN BY: JANET BRICE

PRODUCED BY: JAKE MEGEARY fintechmagazine.com

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Entrepreneur Richard King explains how Ticker is disrupting insurtech with its use of connected data and sophisticated pricing

isruptive insurtech, Ticker is accelerating change with connected motor insurance that targets niche markets. Founder and CEO, Richard King is looking to deliver a high growth strategy and hit +US$100mn Gross Written Premium (GWP) by the end of 2022. As an insurtech, Ticker is taking connected motor insurance to a much wider market, using the latest telematics technology and pricing methods. They are targeting markets from low-mileage drivers to the over 70s and anyone with a driving conviction, who may find it hard to get traditional insurance. It already looks like Ticker is in the fast lane when it comes to financial backers. England footballer and presenter Gary Lineker and entrepreneur Theo Paphitis, known for his appearances on TV’s Dragons’ Den, are just two famous faces who have become seed investors and brand ambassadors. “The key to Ticker’s success is winning in niches,” said King, who already has two startups under his belt. “Ticker is a digitalfirst motor insurtech but, at heart, we’re a data company. “This year, we plan to launch an electric vehicle product and a proposition for drivers new to the UK, who are often treated as brand-new drivers even with a long driving history.

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“We’re not a unicorn today – but I like to think we’re a soonicorn.” InsurTech magazine sat down with Richard King to find out more about Ticker and how he predicts it will shape the insurtech market in 2022.

“Ticker is an insurtech bringing connected motor insurance to a much wider market but, at heart, we’re a data company”

take it to a much wider market, far beyond young drivers. But I knew that, this time, one of the biggest drivers of our success would be in implementing greater levels of pricing sophistication, including Machine Learning (ML) and Artificial Intelligence (AI).”

What was the inspiration RICHARD KING FOUNDER AND CEO, to launch Ticker? TICKER “I’ve been involved in connected motor Please could you insurance for more than 10 years. I sold and give us an overview of Ticker and exited ingenie back in 2015 – it was one of how you put insurtech to work? the UK’s first insurers using telematics. “Ticker is an insurtech bringing connected When I had the opportunity to sit back motor insurance to a much wider market. and look at the market with fresh eyes, We’ve created an ecosystem, then we I realised there was the opportunity to overlay niche propositions. We have 154

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two products live today, for novice and van drivers. In just over two years, we’ve managed to get to a US$65mn GWP runrate with these two products. “We’ll have two more going live shortly for low-mileage drivers and convicted drivers, who find it hard to get affordable insurance after a ban or motoring conviction. “This year (2022), we’ll launch an electric vehicle product and a proposition for drivers who are new to the UK (who are often treated as brand-new drivers even when they have a long driving history). There’ll also be a product for older drivers – particularly over-70s who face higher premiums, similar to young drivers. By the end of 2022, we target a GWP of just over US$100m”

RICHARD KING TITLE: FOUNDER AND CEO INDUSTRY: INSURTECH LOCATION: UNITED KINGDOM Prior to Ticker, Richard King was the founder and CEO of ingenie, one of the first connected motor insurers in the UK, which was acquired for $145m in 2015. Alongside this activity, he was a seed investor and non-exec of Neos from 2016 to 2019 – the UK’s first connected home insurer, which was acquired by Sky TV in 2021. In the early part of his career, he was a co-founder of Innovation Group, which developed a motor claims ecosystem, listed on the London market and entered the FTSE 250.

How important is it to Ticker that insurtechs now have the ability to be in control of pricing? “Having a third-party underwriter control your pricing would be like building the latest petrol-powered sports car and then filling it with diesel. Ticker is an insurance company, so we have motor policies and a high level of customer service, but lift up the bonnet and we’re really a data company. We need to be in control of the entire ecosystem, especially pricing. More than that: to be best-in-market,

EXECUTIVE BIO

You have the support of former England footballer Gary Lineker and Theo Paphitis from Dragons’ Den, how has this helped the brand? “Gary’s been a friend for many years. We were next-door neighbours, he was my best man, and we’ve invested in many businesses together. “Theo is also a friend and we live quite near each other. He was aware of my track record, so it was a quick decision for him to become a seed investor.

CELEBRATING

YEARS IN

PREMIUM FINANCE

1977-2022

We’re the most experienced provider of premium finance funding insurance for one in seven UK families and one in 20 UK businesses “Close Brothers have been a great partner – they’re one of the most trusted names in the industry.” Richard King - Founder & CEO Ticker

Drop an email to workwithus@closebrothers.com Go to www.closebrotherspf.com

TICKER

“ We have two products live today, for novice and van drivers. In just over two years, we’ve managed to get to a US$65M GWP run-rate with these two products” RICHARD KING

FOUNDER AND CEO, TICKER

we have to have the highest levels of pricing sophistication. As an insurer, if you’re not already implementing ML and AI, or at the least have it on your radar, then the competition is going to accelerate ahead of you.” Can you tell us more about price optimisation and the use of AI and machine learning? “Insurtechs like Ticker maximise their competitive advantage and market share

through sophisticated pricing techniques and price optimisation – being even more accurate in pricing customers on an individual basis. “Throw connected car data into the mix and you can employ machine learning tools, which we use to identify patterns in driving behaviour and tell us when someone’s had a crash. In its simplest form, machine learning is looking at data to identify patterns, but on a larger and finer-grained scale than a human can achieve. “ML can only be introduced when you have vast amounts of data, but the holy grail is AI. ML is just a clever subset of that and can help inform AI. The more data we get, the more complex and sophisticated we can make the algorithms. That said, simpler algorithms can still be very effective when you have this quantity of data and shouldn’t be underestimated. fintechmagazine.com

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“Ticker now has what I refer to as ‘tonnes of data’ and that’s how we’re already employing some exciting machine learning models”.

“Insurtechs like Ticker maximise their competitive advantage and market share through sophisticated pricing techniques and price optimisation” RICHARD KING

FOUNDER AND CEO, TICKER

Looking at some of the crazy insurtech valuations and how far they are from making a profit, is there a need for a focus on sustainable profitability? “I don’t think these valuations are crazy – especially when you look at the track record of VCs making investments; they know what they’re doing. “The pandemic highlighted the need for insurers to be digital-first and accelerate innovation projects. But more than that, insurtechs are going to revolutionise this industry in the next five to 10 years – it won’t look or feel the same – and ML and AI are the key to this change.” How much of your time is spent fundraising as opposed to running the business? “The time between insurtech fundraises seems to be narrowing all the time. Companies are coming back to market for Series A, B or C within 12 months. More than 50% of my time is now in fundraising mode. That’s why it’s essential to have a first-class executive team around you.” fintechmagazine.com

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HOW IS DATA COLLECTED FROM THE CAR?

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For a connected motor insurtech like Ticker, it all comes down to the quality and richness of data. Ticker is agnostic to the data collection method, as long as what comes through is granular, accurate and can be used to improve pricing sophistication and customer experience. Ticker’s products use self-install connected devices, which the customer either plugs into their vehicle or sticks to the windscreen. These send driving data (specific to the product) to Ticker and provide data visualisation for the customer through the Ticker app.

February 2022

How does Ticker use the connected car data? Connected car data fuels Ticker’s growth. The more detailed and predictive data, the better the outcome for the customer and for the business. From a customer experience point of view, the data collected is used to: • Verify the insurance details provided • Work out driving behaviour or usage • Calculate the renewal quote “Doing this means we can attract the kind of driver that will do well with Ticker. It also helps us reduce fraud (a major issue in the insurance industry), which will ultimately make insurance cheaper for everyone with Ticker.”

“ As an insurtech, we’re not dealing with legacy. Everything is cloudbased and agile. If we see an opportunity in the marketplace, we can develop a product in a matter of weeks and have something launched in months rather than years” RICHARD KING

FOUNDER AND CEO, TICKER

Is it better to specialise or generalise? “For Ticker, it’s about winning in niches where the average premium is high and there’s plenty of margin to soak up the additional data costs. By building specialised products, we can access the wider market with connected insurance.” Is Ticker close to an underwriting profit? “We set ourselves the goal to achieve underwriting profits within the first three years. That’s an aggressive goal for any motor insurtech but we’re on target to achieve it. If you look at our friends across the pond, some of the big US insurtechs are happy to see loss ratios north of 100% in the early years. I don’t know of many capacity partners in the UK or Europe who would stomach that sort of loss for very long.”

What plans do you have for the next 12-18 months? “We’re about to start our Series B fundraise, which I hope to conclude by the end of Q1. Other than that, we’ll be hiring the best talent, building more sophisticated products and extracting valuable insights from the connected car data that flows into our data lake. On the product side, we have two new products due to be launched for low-mileage and convicted drivers, and three more will be launched during 2022. We’re quite busy and focused.” Could you sum up what gives Ticker the competitive advantage? “It’s the quality of the team.” How are you working with Close Brothers? “We’ve worked with Close Brothers since the start, partnering with them for premium finance for our customers. As many of our policies have a high average premium, there’s quite a high uptake for paying monthly over annually. Close Brothers have been a great partner – they’re one of the most trusted names in the industry.”

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WRITTEN BY: TOM SWALLOW PRODUCED BY: JOE PALLISER fintechmagazine.com

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Michael Phillipou, Chief Executive Officer discusses how Sandstone Technology brings banks and financial institutions into the digital era

Michael Phillipou, Chief Executive Officer

intech digital transformation can be made much simpler if partners are willing to drive value in the direction of their customers. With more innovation taking place in the industry, the ability to meet the customers’ needs is what sets a company apart from the rest. As the world continues along its current trajectory towards digital payments and banking services, organisations like Sandstone Technology — with multiple technological capabilities — are encouraging the adoption of fintech among consumers and businesses. Talking with the Chief Executive Officer of Sandstone Technology, Michael Phillipou, he explains just how important it is for companies in the fintech space to learn from existing digital businesses and continuously develop technology offerings, with the help of investment, to provide clients with market-leading value propositions. Sandstone Technology alongside its 300 technical employees, has been committed to the digitisation of retail banking operations for over 25 years and has since built up an omnichannel repertoire of digital banking products, including internet banking, banking apps, and an end-to-end banking product origination platform, Sandstone Technology also leverages artificial intelligence (AI) and machine learning capabilities. fintechmagazine.com

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Sandstone Technology: leading banks into the digital era

Transforming financial institutions in a digital age The company’s aim to provide value for its customers is supported by continuous investment in its products, leveraging existing platforms for its current customer base while developing capabilities for small-to-medium enterprises (SMEs). On top of this, the company is expanding its partner ecosystem to deliver better functionality. “We continue to build out our partner ecosystem to provide a more complete marketplace offering. This is very much in line with where we see the market moving, as per customer requirements to work with fewer vendor partners,” Phillipou explains. “Ultimately, our strategy is to expand our market share in our existing markets in Australia, New Zealand and the United Kingdom, and take an entry into other markets, which we are now well placed to do.” In recent years, the firm has identified the key areas in which it can develop its offerings in the future: internet and mobile banking, 166

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“ Data is an exceptionally valuable asset, provided companies can make use of it in a compliant way to add value to their consumers” MICHAEL PHILLIPOU

CHIEF EXECUTIVE OFFICER, SANDSTONE TECHNOLOGY

alongside its current loan origination and intelligent document processing functions. These capabilities will add to its platforms and will be offered to both existing and prospective customers, which will also cater for banks and financial institutions who offer small-tomedium enterprise (SME) banking products and solutions. But, what benefit could this provide to Sandstone?

SANDSTONE TECHNOLOGY

Phillipou says: “When we complete an implementation project, the best possible compliments we can receive materialise when our customers win awards and are recognised by the industry and their peers.” He continues, “one of our customers was recognised by Forbes as Australia’s number one bank, as well as being voted the number one bank in Australia by mortgage customers. Across the Tasman, one of our New Zealand customers was recently awarded as having the most satisfied customers, based on customer experience, according to Canstar, and one of our UK customers was recognised as Bank of the Year in the 2021 Dealmaker Awards.”

While discussing the inspiration for Phillipou’s career in fintech, he explained how other successful businesses and leaders led him to his current line of work. How did you become interested in financial technology? “My interest in financial technology was piqued in 2013 to 2014, reading about the likes of TransferWise — now Wise — disrupting payments and the international payments vertical in particular. Moreover, I followed companies such as Credit Karma, Revolut, N26, Monzo and Starling in the B2C space.”

Delivering a partner ecosystem through a single platform Sandstone identified its customers’ demands for access to a variety of functions, managed by a single provider for an effortless user experience. To achieve this, the company works with third parties as it builds its partner ecosystem to offer a comprehensive suite. Over the years, the company has identified some of the key organisations that drive its vision for both digital banking and origination. “We partner with a range of fintech companies, across eIDV, property valuation

What inspires you the most? “I am inspired by the ability to grow businesses through delighting customers. Accordingly, Financial technology impresses me because, through the use of automation, it can be used by banks to provide frictionless customer experiences, which in turn can delight customers and enable banks to enhance their customer satisfaction and advocacy, while also gaining market share.” Which industry leaders inspire you the most? “The way Co-founders, & Co-CEO’s,

63,000+

New customer accounts in less than two years.

27%

less time spent on loan applications

DID YOU KNOW...

of AfterPay, Nick Molnar and Anthony Eisen have built and scaled the business to be a global force in under 10 years, is nothing short of inspirational and incomprehensible.” “From a business to business perspective, Temenos’ CEO, Max Chuard has been very impressive in guiding Temenos to be a global market leader in cloud & SaaS technology.”

Flexible, international payments software. Highly scalable and configurable platform, multiple payment provider integrations that gives access to cost effective and the fastest solutions worldwide. Available via banking connectors or a standalone solution.

Learn more

capabilities, credit decision-making and many more,” Phillipou says, as he divulges the company’s key third-party technology and fintech providers. “A couple of exciting partners include Brilliance, which provides pricing and profitability capabilities, Codat, which is a data aggregation platform, and Cymonz, which offers international payments capability. While they are not exclusively fintech, we are exceptionally well supported by AWS from a cloud hosting perspective and have recently partnered with DOMO to power our internal and customer business intelligence and automated analytics.” In the coming months, Sandstone will leverage its partner ecosystem to create its fintech vision. “We’ll be focusing our efforts on three key areas in order to deliver exceptional business, customer and people outcomes,” says Phillipou. The first aspect of its development is its customer-centricity.

“With our existing customer programmes, where we are collectively delivering new platforms, features or capabilities, it’s key that we delight our customers.” He also explains how the company will leverage its existing platforms. “Secondly, we will continue our investment in both our retail and SME platforms and products to enable us to deliver more value to our existing customers, as well as the focus on onboarding new prospective customers.” “Finally, and very importantly, we will continue to focus and invest in our people and culture, ensuring that our team is set up for success and highly engaged in all streams of work across the business,” Phillipou says. Digital payment solutions are the future It has become more apparent that having physical money is of less importance to a growing number of individuals and is almost non-existent in business.

SANDSTONE TECHNOLOGY

“ In order to provide best in class features and functionalities, there are times where we will partner with third parties, who offer exceptional capabilities” MICHAEL PHILLIPOU

CHIEF EXECUTIVE OFFICER, SANDSTONE TECHNOLOGY

MICHAEL PHILLIPOU TITLE: CHIEF EXECUTIVE OFFICER INDUSTRY: COMPUTER SOFTWARE LOCATION: NORTH SYDNEY, NSW MBA, B.Sc. (Maths), ADFS (Fin. Planning), Cert IV FS (Finance / Mortgage Broking) Michael Phillipou is responsible for the performance of Sandstone Technology's Global Operations. Deeply passionate about people leadership, banking, financial services & technology, Michael has over 20 years of experience in financial services holding Executive people leadership roles in Advice, Retail & Business Banking, Digital Banking, and Enterprise Technology Sales & Transformation programs for Westpac, MLC-aligned businesses and Bendigo Bank. In addition, he co-founded a disruptive digital banking business, Lodex. Michael holds a Master of Business Administration (MBA), Bachelor of Science (Maths), Advanced Diploma of Financial Services (Financial Planning) and Certificate IV in Financial Services (Finance / Mortgage Broking).

EXECUTIVE BIO

SANDSTONE TECHNOLOGY

“The use of physical money or cash is diminishing markedly,” Phillipou explains as he discusses how he thinks payments will become increasingly digital in years to come. He continues, “boasting first-class online payment capability is essential for banks or businesses. Data is an exceptionally valuable asset, provided companies can make use of it in a compliant way to add value to their consumers. From a payment solutions perspective, I think we’ll see more and more partnerships where the key endto-end payment solution providers will work with companies that boast significant user bases or customers and enable them to offer market-leading payment capabilities.”

“ It’s logical that there is one global currency that has utility in every country across the world in the end” MICHAEL PHILLIPOU

CHIEF EXECUTIVE OFFICER, SANDSTONE TECHNOLOGY

Another key factor that will shape the future of the fintech industry is the use of digital currency and how organisations look to use it for everyday transactions. Phillipou believes “it’s logical that there is one global currency that has utility in every country across the world in the end. That said, in my view, that won’t be bitcoin, but more likely a stable coin that is pegged to the world’s major currencies.” Aside from cryptocurrency becoming more mainstream, he believes that big data companies will also look to extend their offerings and enhance their contributions 170

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Year founded

US$40mn+ Revenue

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“ I would expect to see the big data companies and financial institutions ramp up their partnerships and make a number of acquisitions in the space” MICHAEL PHILLIPOU

CHIEF EXECUTIVE OFFICER, SANDSTONE TECHNOLOGY

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through the strategic acquisition of fintech companies. “Similarly, I think banks will continue to invest heavily in their financial technology strategies and systems to maintain and grow their market share,” Phillipou says. “In order to execute on these outcomes, I would expect to see the big data companies and financial institutions ramp up their partnerships and make a number of acquisitions in the space, which will further bolster up their internal technology Intellectual property.”

Through many careful investments and innovations, Sandstone Technology will undoubtedly support its banking clients through the ever-changing digital landscape. As an aggregator of functions from various members of its partner ecosystem, its clients will benefit from the effortless implementation and continuous improvement in line with industry trends.

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MUANG THAI LIFE ASSURANCE

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NABILITY WRITTEN BY: JANET BRICE

PRODUCED BY: JAKE MEGEARY fintechmagazine.com

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MUANG THAI LIFE ASSURANCE

At 70 years young, MTL has laid a strong foundation and is now moving towards a digitally-driven future set to revolutionise InsurTech in Thailand

uang Thai Life Assurance has been providing life insurance services to the people of Thailand, under the principle of integrity and fairness, for the past 70 years. It is now building on this strong foundation by creating digitally-driven, innovative products for ‘forward-thinking people’. MTL is a major Thai life and health insurer and has exchanged ‘smiles’ with its customers, employees and agents since it was founded in 1951 by Chulin Lamsam. Current Chief Executive Officer Sara Lamsam took the time to celebrate the company’s success with InsurTech Magazine. “Innovation and forward-thinking has always been the DNA of Muang Thai Life Assurance,” he said. Lamsam has led the company for the past 17 years, as it has evolved from a life insurance provider founded with the intention of providing a social safety net, to investing in its own AI-as-a-Service firm to help it realise the full potential of artificial intelligence (AI) within the insurance space. “The most important thing in life insurance is trust and honesty. Trust in the company, trust in the product, trust in the team as this provides sustainability for both our customers and MTL,” said Lamsam, speaking from the company’s head office in Bangkok. “We aim to be a partner that customers trust through innovation. We have a dynamic pricing product, which not

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MUANG THAI LIFE ASSURANCE

Muang Thai

“We aim to be a partner that customers trust through innovation”

many life assurance products, saying “it’s companies offer,” said not just about sales and Lamsam, who also margins.” One example highlights the fact they of this is The Muang are a very strong brand Thai Smile Club, which in Thailand because of a offers customer focus, belief in working with the the ability to respond to customer at the centre. the needs of customers “We are the regional and is considered to be life insurance leader, more than a standard SARA LAMSAM which is strong in terms loyalty programme. CEO, MUANG THAI LIFE ASSURANCE of finance, service and “MTL started off as image and under a a family business, and good governance and risk management although we still have shares, we now have system. We deeply understand the needs partnerships with banks and multinational and behaviour of our customers to deliver companies. We have a transparent suitable products and services to create governance structure, but we still have the financial stability and complete the lives of sentiments of working as a team. During a customers throughout their lifetimes.” time when everything is very dynamic we are Lamsam points out MTL — a familiar horizontal in the way we work as opposed to and friendly name visible throughout having a silo mentality,” said Lamsam. Thai society — focuses on the lifetime of “We have a very strong brand in Thailand, the policyholder with dynamic pricing people always recognise us, and internally 178

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we have a very strong team. We are starting to connect to an ecosystem of partners, especially hospitals or nursing homes that are beyond life insurance.”

How Aigen will revolutionise MTL Two years ago, MTL established Aigen, a subsidiary company of MTGH, which

TITLE: CHIEF EXECUTIVE OFFICER INDUSTRY: INSURANCE LOCATION: BANGKOK, THAILAND

EXECUTIVE BIO

Digital transformation Dr Sutee Mokkhavesa, President of MTL, spearheaded the company's own AI -as-aService company and has driven the digital transformation. “We've come a long way in the past five years, but we view our digital transformation as a never-ending journey that requires perseverance. It’s not a project, it's more like a continuous transformation that the company is undergoing as we experience this fast pace of change in technology.” Mokkhavesa, who has been with the company for 18 years, pointed out the digital journey started with MTL creating a robust customer service platform that was unproven in the industry and faced questions over whether people would use the apps. “When COVID-19 hit, people couldn't go to our branches, they couldn't go to hospitals, so the adoption rates skyrocketed and this has fostered the belief that consumers can change and they can change radically once you get it right. “We were fortunate that we built the digital asset prior to the pandemic and it has a telemedicine app embedded within it. Typically, 70% of all hospital visits are for simple diseases which can be served by telemedicine. During the pandemic, more customers found it convenient and it was cheaper for us, so it was a win-win all around. I believe COVID-19 accelerated our digital adoption by at least a decade.”

SARA LAMSAM

With over 28 years of experience, Sara has led MTL to become a leader in Thailand’s life insurance industry. Sara has taken the leading role to enhance the life insurance business with innovative ideas, holistic thinking, and change management and transformation leadership in order to tackle major business challenges today. In addition, he has been involved as director in Fuchsia Venture Capital (Leading Financial Conglomerate in Thailand and SEA) for the longevity of life through innovation and technology. Moreover, Sara has been actively involved in the enhancement of rules and regulations. He has worked as the president of the Thai Life Assurance Association and worked with the Office of Insurance Commission (OIC) to set a strategic roadmap to set new standards for the sustainable life insurance industry. In his professional experience, he has also served in many business positions in the financial sector. In key, his examples are the chairman and director of the Thai Financial Planners Association and the chairman of the Federation of Thai Insurance Organisations.

MUANG THAI LIFE ASSURANCE

“ We recruited 30 best-inclass experts for Aigen and the mandate would be to work together with MTL and solve any technology problems and once they have this brain established they can sell this service to other industries” PRESIDENT, MUANG THAI LIFE ASSURANCE

have this brain established they can sell this service to other industries. “The first use-case was on a death claim which used to take a claims manager 55 minutes. With AI it took six seconds - which is a massive productivity gain. I can then redeploy people to work on harder cases that need human intervention. “Aigen is maturing nicely and what we are proving is the right people with the right culture and right incentives can innovate on the edge and create a high-value enterprise,” he said.

specialises in AI as they felt this was going to have a big impact on the insurance industry. “We built a strong capability with 30 bestin-class experts for Aigen and the mandate would be to work together with MTL and solve any technical problems and once they

How AI can detect fraud Mokkhavesa said they are seeing great potential in AI helping MTL with Optical Character Recognition (OCR). This technology can help decipher an itemised bill from a hospital and identify any

DR SUTEE MOKKHAVESA

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TIMELINE OF MTL 1951 As a financial institution that has been providing “Life Insurance” to the Thai society since its establishment on the 6th of April, 1951, MTL has been operating its business through quality life insurance product and service development, together with asset management. In addition, MTL is the first company to receive royal garuda.

INSIGHT...

1998 MTL divided its insurance business into life (MTL) and non-life insurance (MTI). Also, MTL shaped the look of the logo and changed the slogan to “Company of forward-thinking people.”

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2004 Muang Thai Group Holding joined forces with an important business partnership, “Ageas”, formerly known as “FORTIS” and started a bancassurance business with Kasikornbank Public Company Limited (Kbank). Moreover, MTL launched “Muang Thai Smile Club” as the first CRM programme for the life insurance industry, and MTL was rebranded.

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2009 Kasikornbank increased the shareholding proportion in the company in order to enhance the potential for developing the bancassurance channel in full scale. 2012 The company was converted into a public limited company to reflect upon its stability and compliance with good corporate governance. Its performance has been disclosed to the public while being audited to ensure that they are following the standards of the public limited companies. 2017 MTL launched “Fuchsia Innovation Centre” and “Fuchsia VC”, a new dimension of innovation to pioneer and develop products and services, enhancing accessibility and tailor-fitting them to each customer segment, and investing in startups focused on insurtech and wellness tech within the life and health spaces. 2019 Launch of subsidiary company Aigen specialising in artificial intelligence and building capability with best-in-class recruiting.

MUANG THAI LIFE ASSURANCE

“ The most important thing in life insurance is trust and honesty. Trust in the company, trust in the product, trust in the team as this provides sustainability for both our customers and MTL”

SUTEE MOKKHAVESA, PH.D. TITLE: PRESIDENT INDUSTRY: INSURANCE LOCATION: BANGKOK, THAILAND Sutee is the President of Muang Thai Life Assurance Public Company Limited (MTL), overseeing all management operations, investment, risk management, strategic direction, and digital initiatives. Sutee holds a PhD in Applied Mathematical Finance from Imperial College, London. As a professional with more than 18 years of experience in financial services, he set up Aigen, a subsidiary of Muang Thai Group. Aigen is an AI-as-a-Service company focusing on using deep learning to create solutions for the group. He also teaches at various academic institutions and focuses his research in areas of Asset Management, ALM, Risk and Optimisation.

SARA LAMSAM

fraudulent claims, which can be in excess of 20% of total claims for the whole industry. “We can see any fraudulent claims, such as any other medicines being prescribed, and analyse all sorts of things that we were not able to do before. Not because we didn't have the data, we had the data, but not in the right format. “We are now working on OCR to read a doctor’s handwriting and contextual information. You may ask why we need this when hospitals will be digital in the future. The answer is in Thailand, we have many sophisticated hospitals and those which are basic and still use pen and paper. “It is estimated abuses and fraud in life insurance probably constitute for up to 20% of the total claims. MTL is a big company so even if we fractionally reduce this by 2%, that's a huge saving, so it makes a lot of sense.” Thai Chatbot using NLP MTL has also built their own Thai chatbot using Natural Language Processing (NLP) and have seen some “spectacular” results

EXECUTIVE BIO

CEO, MUANG THAI LIFE ASSURANCE

MUANG THAI LIFE ASSURANCE

1951

Year MTL was founded

2020

Hall of Fame by the Office of Insurance Commission (OIC)

2,500 Employees

20,000 Agents

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“We can see any fraudulent claims, such as any other medicines being prescribed, and analyse all sorts of things that we were not able to do before, not because we didn't have the data, we had the data, but not in the right format” DR SUTEE MOKKHAVESA

PRESIDENT, MUANG THAI LIFE ASSURANCE

when used against the complex Jumbo Health Policy. “The chatbot makes the interaction from the agent to the customer seamless. It basically has two loops. The agents ask the questions, we train the bot, and by looking at the questions, we can go back and retrain the agents on the questions they should work on, for example ‘is physiotherapy included in the policy?’.” Mokkhavesa said AI has the power to take on mundane jobs and provide higher value tasks to the team at MTL. Power of partnership with Loxley Orbit MTL also partnered with Loxley Orbit, a provider of cutting-edge cloud technologies and services, offering scalable solutions for companies. Mokkhavesa said, “we use Loxley Orbit to develop our services, such as our inventory systems, temporary receipt systems for our vendors to carry and they also helped us with the regional migration of our Google workspace platform for our 6,000 users from Lotus Domino. The life insurance and health insurance industry is probably one of the biggest fintechmagazine.com

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MUANG THAI LIFE ASSURANCE

INSIGHT...

MTL FOCUS ON THE FOLLOWING PRODUCTS AND SERVICES • Ordinary life insurance • Life insurance with payroll • Small tickets life insurance • Group life insurance • Accident and health insurance • Credit and mortgage Insurance • Selling life insurance through various channels such as through agents, through branches nationwide, through banks, through online channel and via tele-seller • Customer service centre • Customer loyalty program (Muangthai Smile Club)

industries in the world, yet it's the one most resistant to change. But I do believe that with the right incentives and the right demand by our consumers, it will change and it will change quickly, so everyone must be prepared for this.” How collaboration with ZA Tech will innovate the InsurTech industry Sara Lamsam, CEO of Muang Thai Life Assurance, revealed that MTL has teamed up with ZA Tech Global Limited (ZA Tech), 186

February 2022

which is Asia’s leading technology venture company founded by ZA International and is supported by Softbank’s Vision Fund 1. This synergy is made possible by the commitment of both organisations to create new experiences and innovations for the life insurance industry, including making it easier and more flexible for Thai people to access insurance products in line with the new world and changing needs. Lamsam commented: “Throughout the past 70 years, the company has never ceased to be a leading player in the development of products and services for customers. During the past four to five years, the company has continuously developed in the digital field. Whether it is the establishment of the Fuchsia Innovation Centre, the launch of the MTL Click application, MTL Mini Click, the

MUANG THAI LIFE ASSURANCE

“ We deeply understand the needs and behaviour of our customers to deliver suitable products and services to create financial stability and complete the lives of customers throughout their lifetimes” SARA LAMSAM

CEO, MUANG THAI LIFE ASSURANCE

MTL Fit application, and many other services, and most recently, MTL has decided to take the next step on the digital path together with ZA Tech, one of the most famous InsurTech companies in Asia. “This collaboration is an important combination of strengths. With Muang Thai Life Assurance having strength in innovation and product development, together with the strong capabilities of ZA Tech in the field of insurance technology, innovation can be carried out seamlessly, and we can create experiences that meet specific needs (personalised) of customers and various partners in the ecosystem comprehensively.”

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