FinTech Magazine - March 2022 by FinTech Magazine

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How fintech ecosystems democratise the financial landscape March 2022 | fintechmagazine.com

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The FinTech Team EDITOR-IN-CHIEF

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

TOP 100 WOMEN IN FINTECH AND MORE As we speed towards International Women’s Day, FinTech Magazine deep dives feminine finance

“We’ve also explored a range of trending topics, such as the ecommerce revolution, fintech ecosystems, and our guide to Open Banking”

Tis the month to celebrate the role of women across all industries, and this month, FinTech Magazine is no exception. Join us for our feature on Women in Wealth Management, as we interview two extraordinary trailblazers in finance who are transforming the space in terms of financial services. The CEO of Sequin, Vrinda Gupta, has innovated a debit card for women that builds credit ratings, while Cory McCruden is the pioneer behind a wealth management consultancy for women. We are also launching our Top 100 Women in Fintech supplement, which lists the industry’s highest fliers, movers, and shakers in the world of finance. Aside from that, we’ve also explored a range of trending topics, such as the ecommerce revolution, fintech ecosystems, and our guide to Open Banking. Happy reading and enjoy the magazine!

FINTECH MAGAZINE IS PUBLISHED BY

JOANNA ENGLAND

joanna.england@bizclikmedia.com

fintechmagazine.com

CONTENTS

Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: From Coloured Coins to the NFT Revolution 18 Trailblazer: Stephen A. Schwarzman 20 Five Minutes With: David Messenger

The Leading Light in Financial Wellness

A Comprehensive Guide to Open Banking: Technology and Beyond

Sunrise Banks

Banking

Finserv

How Fintech Ecosystems democratise the Financial Landscape

Covea Insurance

Medallia

Digging deeper for experience management data

Payment Solutions

Feminine Finance: Women and Wealth Management

Pioneering Consumer-centric Insurance Tech

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

Learn more

Beazley Digital Underwriting Risk in the Digital Era

106 Ibott

Insuring the shared economy and beyond

100

Technology

The Ultimate Trends in the Fintech Ecommerce Revolution

M A RCH8.COM

IS HERE Telling the stories of driven, ambitious women in business and society...

V I SIT NOW

E D U C AT E • M OT IVAT E • E L E VAT E

VI SI T N OW

BIG PICTURE

The Future of Immersive Experiences: Financial Technology and the Metaverse Virtual Reality

Financial technology is evolving into a new form with the growth of immersive experiences linked to virtual and augmented reality. Simulated virtual environments, also known as the metaverse, provide new opportunities for companies to offer their customers innovative and engaging experiences. Fintech has a significant role to play in the development of this new frontier. 12

March 2022

fintechmagazine.com

THE BRIEF “THE NEED TO INCENTIVISE, CULTIVATE, AND SCALE INNOVATIVE COMPANIES MEETING THE UNIQUE FINANCIAL NEEDS OF DIFFERENT DEMOGRAPHICS WAS A SIGNIFICANT FACTOR”

BY THE NUMBERS WE ASKED YOU WHICH CRYPTO CATEGORY DO YOU THINK THE FINTECH INDUSTRY SHOULD PRIORITISE YOU SAID: (DeFi) 71% Decentralised Finance

Sarah Biller Co-founder, Sandbox  READ MORE

“NOW THE ECOMMERCE COMPANIES ALSO GIVE THE OPTION TO PAY IN INSTALMENTS. THIS POLICY HELPS THEM TO ATTRACT MORE CUSTOMERS”

(DApps) 10% Decentralised Apps

(NFTs) 8% Non-Fungible Tokens

(Metaverse) 11% Virtual Worlds

Christian Velitchkov Co-founder, Twiz LLC  READ MORE

“WOMEN’S WEALTH IS EXPECTED TO REACH US$93TRN GLOBALLY BY 2023. I WOULD CAST THESE AS OPPORTUNITIES, RATHER THAN CHALLENGES” Cory McCruden CEO, Wellbly Tech  READ MORE

March 2022

REVOLUT FEELS THE LOVE IN IRELAND More than one in three people in Ireland already use financial super app Revolut. The company plans to offer personal loans and credit cards to consumers in the country

RECORD YEAR FOR FINTECH INVESTMENT Last year was a record year for fintech funding. Figures for the first three quarters show there was $100bn in fintech investment, almost double the amount for all of 2020

BANKS ‘WORRYING’ ABOUT RECRUITING TALENT Attracting qualified talent is a concern for bank and credit union executives. In a survey by Cornerstone Advisors, 65% of respondents said it was an issue – up from 19% in 2021

 ONE Good news for Walmart’s fintech start-up announced last year in partnership with Ribbit Capital. It’s acquiring the money management apps Even and ONE, and will be known by the latter’s name going forward.

 NUBANK

MAR22

 N26 The Berlin-based neobank is facing an employee exodus after the departure of several high-profile execs, according to Sifted. The outlet claimed staff retention at the company was as high as 40% between 2020 and 2021.

 PAYPAL

Shares in Paypal dropped by 25% after its latest earnings report. The company predicted that revenue growth, total payment volume growth and the number of new active accounts could all be lower next year.

BAD TIMES

British fintech is on verge of funding round that would value it at over $1bn, according to UK news reports Sky News reports that Railsbank has hired US-based FT Partners to raise a new funding round worth $100m. That could be enough to secure elusive ‘unicorn’ status for the British fintech, valuing it at more than $1bn. Founded in 2016 by co-founders Nigel Verdon and Clive Mitchell, Railsbank provides the technology for businesses to rapidly scale and become fintechs. Verdon, a serial entrepreneur and foreign exchange expert, had previously hinted that Railsbank’s valuation could be close to $1bn. Were it to go ahead as reported, the latest funding round would be twice the size of its biggest round to date last July. It raised £50.5m in Series B funding led by Anthos Capital. In total, the company has raised more than $120m over nine funding rounds, according to insights company Crunchbase.

Brazilian neobank Nubank does not expect the country’s economic difficulties to be a problem. Its founder and CEO, David Vélez, told Reuters that it was “an opportunity to accelerate” and increase its market share.

GOOD TIMES

RAILSBANK ‘TO RAISE NEW FUNDING ROUND’

fintechmagazine.com

TIMELINE From Coloured Coins to the NFT Revolution NON-FUNGIBLE TOKENS (NFTS) ARE UNIQUE, TRADABLE DIGITAL ASSETS BUILT ON A BLOCKCHAIN. WE TAKE A LOOK AT THE HISTORY OF THIS PHENOMENON, WHICH HAS BECOME A POPULAR WAY OF SELLING DIGITAL ART.

201 2 THE PRE-CURSOR To understand the history of NFTs, we have to go back to 2012 and the creation of a different type of token, Colored Coins. Built on the Bitcoin blockchain, these tokens could be described as the pre-cursor to NFTs as we know them today. Colored Coins could be used to represent any tangible asset – cars, houses, precious metals – but the fundamental limitations of the Bitcoin blockchain essentially meant that Colored Coins had several inherent flaws

March 2022

2014 COUNTERPARTY In 2014, a new financial platform called Counterparty was launched to expand on the possibilities first explored by Colored Coins. Also built on the Bitcoin blockchain, it offered a number of exciting features including a decentralised asset exchange, tradable user-created currencies and even its own cryptocurrency called XCP

2016 MEMES Before long, NFTs moved in a more familiar direction that focused on assets with unique appeal. In 2016, people began using Counterparty to issue ‘rare pepes’ – a type of internet meme that centres around a green frog and has a cult following. When Ethereum gained popularity in 2017, these rare pepe memes were sold there and even led to the creation of a “decentralised meme marketplace” called Peperium where they could be bought and sold

2021 2017 PUNKS AND KITTIES As more people became aware of NFTs, the demand for creative and unique tradables grew. This led to two specific crazes taking off.. The first was Cryptopunks, a series of 10,000 unique digital characters that people could buy, collect and sell. Then came Cryptokitties, a blockchain game that gave users a virtual cat that they could care for and trade. Some cryptokitties even sold for six-figure sums

BEEPLE Today, NFTs are best-known as a means of trading digital art and most transactions take place on Ethereum. One of the most famous digital artists whose work has been sold using NFTs is Beeple. In 2021, two of his artworks – a sculpture piece entitled ‘Human One’ and a digital collage called ‘Everydays: the First 5000 Days’ – were sold at auction by Christie’s for a combined $98m. They are the two most valuable artworks ever sold by NFT

2022 NFTs GO MAINSTREAM E-commerce giant Alibaba launched Beijing Winter Olympics-themed NFTs featuring speed skating, aerial freestyle skiing, slopestyle, and figure skating, the virtual badges have a traditional Chinese ink painting style. Meanwhile, according to data by Coindesk, the global NFT marketplace will be worth in excess of US$80bn by 2025

TRAILBLAZER

STEPHEN A. SCHWARZMAN

Building Blackstone

Chairman, CEO and co-founder Company: Blackstone Job Title:

Web Summit ©

Number of years working in the industry

20yrs

£1mn

Donated to charity

tephen A. Schwarzman is Chairman, CEO and co-founder of Blackstone – one of the world’s largest private equity firms. But his current success, coupled with an estimated net worth of $38bn, is a far cry from his early life. Schwarzman was born in Philadelphia and grew up in Abington, a suburb north of the city. He had his first taste for business young – his father owned a successful linen store and by the age of 10, Schwarzman was helping out by working the lady’s handkerchief counter. By 14, he had started his own lawn-mowing business but instead of cutting grass himself, he focused on attracting new customers and enlisted his two younger brothers to mow the lawn for him. In an interview with the Washington Post in 2019, Schwarzman explained how his childhood taught him that not everybody was going to be the same. When pushed by a young Schwarzman why he didn’t want to expand his successful business or open more stores across Philadelphia, Schwarzman’s father answered simply “because I’m happy the way I am”. “I thought that was sort of hard to take in,” Schwarzman told the newspaper. “His contentment is what made him a remarkable human being.” Schwarzman later studied social sciences at Yale before getting his first taste of finance at Donaldson, Lufkin & Jenrette. He went on to complete a Masters in Business Administration at Harvard Business School and found a job at Lehman Brothers, which he thought, at that time, was “full of interesting characters, ex-CIA agents,

ex-military, strays from the oil industry, family friends and randoms”. While at Lehman Brothers, he made a name for himself in mergers and acquisitions, rising to become managing director by the age of 31. Schwarzman co-founded Blackstone in 1985 alongside Peter G. Peterson, a former Lehman Brothers CEO who had briefly served as US Secretary of Commerce during Nixon’s administration. Though it started life as a boutique M&A advisory firm, within a couple of years Blackstone had launched its first private equity fund and later, by 1990, had branched out into hedge funds using partners’ own money. Blackstone’s IPO success By the time of Blackstone’s initial public offering (IPO) in 2007, the business had more than $88bn’s worth of assets under management. The IPO saw shares finish at over $35 each, valuing the firm at about $39bn and enriching the personal fortunes of both Schwarzman and Peterson. Schwarzman remained with Blackstone as CEO but Peterson retired shortly after the IPO. He died in 2018. Today, Blackstone claims to have $880bn of assets under management including $260bn in private equity and $280bn in real estate. Stephen A. Schwarzman is still the company’s Chairman and CEO, having indicated that he has no intention to retire. He has two children – the film producer Teddy Schwarzman, and writer and podcaster Zibby Owens.

fintechmagazine.com

5 FIVE MINUTES WITH...

David Messenger L I AN LIAN GLO B A L , C E O

David Messenger is CEO of Hangzhoubased LianLian Global, where he focuses on helping merchants around the world successfully start and grow their crossborder eCommerce businesses. He tells us what both drives and challenges him in the fintech market today

Q. WHO WAS YOUR CHILDHOOD HERO AND WHY?

» Odysseus — sometimes known as

Ulysses. As a child I was fascinated by Ancient Greece, and read the Iliad and the Odyssey multiple times. Odysseus captured my imagination with his epic journey, never giving up on his quest to return home even when it seemed impossible, and the intelligent and creative ways he overcame all the challenges and temptations along the way.

Q. W HAT'S THE BEST PIECE OF ADVICE YOU EVER RECEIVED — AND FROM WHOM?

» I always remember my grandmother

telling me, when I was about eight years old, that 'It’s not the hand of cards you are dealt, it’s all about how you play it’. Many things are always beyond our control, as the pandemic has dramatically illustrated, and the only thing we can control is the perspective we choose to take on a situation, and our own decisions and actions. I always try to take a constructive and positive mindset, even in the toughest situation, and to focus on ‘what’s the next best action I can take?’ This often opens up bigger opportunities than I could see initially. The other great piece of advice my grandmother gave me was ‘footprints in the sands of time are not made by sitting down’ — she was a very strong, determined woman!

Q. W HAT WAS THE LAST BOOK YOU READ, WHY DID YOU LIKE IT — AND HOW LONG AGO DID YOU READ IT?

» I just finished three weeks of quarantine coming back into China, and have almost finished “The Long Game” by Rush Doshi. It is a thoroughly researched and insightful analysis of the last 40 years of China’s

economic development and international relations, but also sets the analysis in the context of the history of the last two hundred years. China is so different and largely misunderstood by the West, and most of the media coverage doesn’t help. There is a huge information asymmetry between China and the West, because so many Chinese people have studied and worked in the West, but so few Westerners have spent any time in China. I have been coming to China for over ten years and feel I am still just scratching the surface of a country and culture which have developed over thousands of years.

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

» I recently got a digital notebook, which

really is like writing on paper and it's quickly becoming indispensable. I was a bit unsure about buying it because I have so many screens and apps already, which are amazing productivity tools but can often be distracting. This tablet's value is completely different from other types of screens, because it enables me to think and focus better by writing things out.

Q. I F YOU HADN’T BEEN INVOLVED WITH FINTECH, WHAT WOULD HAVE BEEN YOUR OTHER TOP CAREER CHOICE?

» I’ve worked in other tech sectors and

mobile before, and while I think fintech is the most exciting area to be focused on for the next five years at least, I do have an interest in the future, in looking at new approaches to education. I was lucky to have a great education and know how it completely changes lives, but I think education can be reinvented for the future. Leveraging technology will be a key part of this, but fintechmagazine.com

5 FIVE MINUTES WITH...

seeing the limitations of all-virtual education during the pandemic, it will also be about reimagining the broader model of education.

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

» I’ve been fortunate to work with

and learn from several great leaders during my career, but one who stands out for me is Dan Schulman who I worked with closely at Virgin Mobile USA and at American Express. The most valuable thing I learned from him was that the core of leadership is different for each person — it needs to be an authentic reflection of who you are and your values, adapted to the context and responsibilities of your role as a CEO, and every CEO has to find their own leadership voice.

Q. W HICH ACTIVITY ARE YOU MOST LOOKING FORWARD TO DOING WHEN NORMALITY RESUMES?

» I have recently started travelling

internationally again after being in China for 20 months, and it’s fascinating to see how different countries are adapting almost two years into the pandemic. In some places things are much more normal already, like China, with only very targeted lockdowns to tackle local outbreaks, and the UK, where people have moved into accepting the risks of getting on with life relatively normally despite Covid. In parts of the US and Europe, life is still very constrained. The thing I have missed most is spending time with important people in person, especially with my children

March 2022

who are in the USA. We have stayed close through FaceTime but it’s not the same as being together, and it was so meaningful for me to be home with them last Thanksgiving. It was also

[PHOTO/FACEBOOK ACCOUNT: HANGZHOUFEEL]

good to reconnect with friends, colleagues and partners and I’m looking forward to doing this more this year, splitting my time between China, US andEurope — even though I’ll have to go through quarantine a couple more times!

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

» In the last 12 months, we have evolved

to become a much more global business. We now support cross-border businesses across the US, UK, Europe, China and most of South-East Asia, leveraging the capabilities and learnings we first developed in China. We’ve been patiently laying the foundation for this over the last four years, building out our end-to-end global payment network, and it’s exciting to see all of this work come to fruition. I’m proud of our team who have embraced the

challenges and opportunities of thinking and working from a global perspective, combined with their local expertise and knowledge.

Q. W HICH ACTIVITY ARE YOU MOST LOOKING FORWARD TO DOING WHEN NORMALITY RESUMES?

» This is an exciting time for fintech

because of the positive impact it has had during the pandemic and will have going forward. Fintech is the most powerful way to drive financial inclusion, particularly for small businesses. Harnessing new technologies like AI, blockchain and digital currencies will accelerate the drive towards greater inclusion. The growth of e-commerce during the pandemic has dramatically opened up opportunities for small businesses and we are focused on supporting local entrepreneurs become global entrepreneurs and take advantage of these new opportunities. fintechmagazine.com

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March 2022

SUNRISE BANKS

fintechmagazine.com

SUNRISE BANKS

The pioneering community bank partnering with fintechs to serve the underbanked and build a digital future of financial wellness

inancial wellness has become a core tenet for the global banking sector. It is a commitment to provide customers with the tools, knowledge, and products to better their lives through financial stability and inclusion. For some banks, that means a marketing campaign, or access to online content about saving, investment and loans. For others, it is a suite of products designed to reach the underbanked or serve communities who need access to niche financial services. But at Sunrise Banks, financial wellness is everything. Founded in 1986 by the Reiling family, Sunrise Banks has served communities in the urban core of Minneapolis and St. Paul, Minnesota, for more than 35 years. The US$1.7bn bank is on a mission to be the most innovative bank powering financial wellness. “The mission does really provide the baseline for everything that we do,” says Bryan Toft, Chief Revenue Officer, Sunrise Banks. “We see ourselves as a social entrepreneurship organisation, and a social engine for good.” It is not a new mission statement; Sunrise Banks placed financial wellness and inclusive access to financial services at the heart of its operation from the start. The bank began serving St. Paul’s Hmong community, which was both underserved by the traditional banking system and required access to innovative financial products.

March 2022

Example of an image caption fintechmagazine.com

SUNRISE BANKS

Sunrise UPC: More Wow together!

That community bank core remains key to Sunrise’s role in the lives of its customers today, offering a full suite of foundational banking services, New Markets Tax Credit lending, Small Business Administration (SBA) lending, and much more. Powering Financial Wellness “We are always looking at how we can improve the core three things: increase access, lower the cost, and mitigate the risk,” says Toft. “Those are the things we look at when we're trying to innovate and figure out how can we best serve those customers and provide those services in a better, faster way.” This is inclusive banking with purpose, “and we’re held accountable in a few different ways,” Toft adds. “We are a Community Development Financial Institution (CDFI), which means that at least 60% of our loans are made in low-to-moderate-income census tracts, and we have to certify that with the US Treasury every year. 30

March 2022

“ We are always looking at how we can improve the core three things: increase access, lower the cost and mitigate the risk” BRYAN TOFT

CHIEF REVENUE OFFICER, SUNRISE BANKS

“We're also a certified B corporation, and we have to provide a lot of transparency and accountability about our business. We have been named Best for the World by B Lab for eight years in a row,” he adds. “And that really is unique. We’re the only CDFI bank in Minnesota — there are roughly 250 others

SUNRISE BANKS

across the country, but we’re the only one in Minnesota — and it's really not easy to hit that designation, because you really do have to focus on those core low-to-moderateincome areas.” Now Sunrise Banks is extending its inclusive banking philosophy and the capabilities to serve more communities across the US through partnerships in the fintech sector. This is a dynamic that has become commonplace across the banking landscape. Fundamentally, the incumbent bank, Sunrise, does the heavy lifting on the ‘back end’, moving, lending and storing money, and ensuring compliance. Fintech partners can leverage that scale and wealth of expertise to benefit their customers, offering modern, digital customer experiences and access that consumers demand. It is a symbiotic relationship, and a natural next step for Sunrise Banks to increase its impact, says Toft: “We need to understand that the fintech owns the customer relationship, and yet we're held accountable for the compliance and the regulatory accountabilities with those customer relationships. So there definitely is a partnership there and we need to know what our partners want to do in the future so that we can start to give guidance on where things need to be from a compliance standpoint.”

Number of employees

TITLE: CHIEF REVENUE OFFICER COMPANY: SUNRISE BANKS INDUSTRY: BANKING LOCATION: MINNESOTA, USA

EXECUTIVE BIO

300+

BRYAN TOFT

Bryan Toft is Sunrise Banks’ Chief Revenue Officer. In this position, Bryan oversees commercial banking/ lending, treasury management, mortgage and fintech partnerships. He has been with Sunrise Banks for more than a decade. From 2014-2017, he served as president and CEO of Community Bank Owatonna. Bryan has held a variety of roles at Sunrise Banks including credit analyst, commercial loan officer and EVP regional manager of commercial lending in Minneapolis. Bryan received a B.S. in Computer Science from Buena Vista University and an MBA from the University of St. Thomas. He is a board member of the Minneapolis Chamber of Commerce, Twin Cities Metro CDC and Charter School Property, Inc.

WOLE COAXUM TITLE: CHIEF EXECUTIVE OFFICER COMPANY: MOCAFI INDUSTRY: FINANCIAL SERVICES

Dynamic financial services entrepreneur with consistent track record of developing and implementing a broad array of high impact and strategic initiatives which achieve measurable results. Adept at creating, developing and retaining diverse, high performing teams across disparate geographies. Strong listening and communication skills that inspire others to reach their peak performance. Focused on transforming businesses and delivering compelling outcomes in a low cost, simplified way that increases value for all stakeholders.

PHOTO BY JAMEL TOPPIN

EXECUTIVE BIO

LOCATION: NEW YORK, USA

SUNRISE BANKS

Partnering for Purpose with Fintechs One of Sunrise’s first key partnerships in the space is with Mobility Capital Finance, Inc. (MoCaFi), a fintech founded by Wole Coaxum. A banking veteran of both Citi and JP Morgan, Coaxum became frustrated by the limits of traditional banking and founded MoCaFi to deliver access to financial services to the communities that fell through the gaps. “There was a large number of people within our society that were not well served by the traditional brick and mortar banking infrastructure,” he says. “But the evolution of technology as it relates to banking means that no longer do you have to tie your banking resources to a geographic location. I was attracted to how I might use my training and experience, and the emergence of some

“ Having insights, and having the ability to act on those insights, is how you create a significant amount of value for the customer” WOLE COAXUM

CHIEF EXECUTIVE OFFICER, MOCAFI

pretty exciting technologies, to reach parts of the market that have otherwise been overlooked by some of the more traditional banking operations.” MoCaFi is focused on closing the racial wealth gap in the US. A staggering 50-55% of African Americans and Latin Americans are fintechmagazine.com

SUNRISE BANKS

March 2022

SUNRISE BANKS

unbanked or underbanked, face prohibitive access fees, and are unable to build credit and wealth under traditional systems. Partnering with Sunrise Banks allows MoCaFi to address that inequality. “This is why the partnership with Sunrise Banks is so terrific,” says Coaxum. “Their values in terms of helping underserved communities on a consistent basis, not as a project, but core to their mission, has allowed us to innovate. “The key component that you're looking for from a partner bank or a sponsor bank is a strong compliance framework and regimen. Part of the innovation is how we innovate within the framework of the rules that are set. If you do that well, you have a chance to grow, and we've been able to do that as it relates to how we provide bank accounts to everyone in the community.”

“We're just trying to get better and faster, so that we can continue to scale with our fintech partnerships” BRYAN TOFT

CHIEF REVENUE OFFICER, SUNRISE BANKS

The great irony, as Coaxum sees it, is that this is not philanthropy: focussing on diversity, equity and inclusion for all actually leads to success. “You actually run a better business, you have access to more markets, and you can run faster and run further,” he says. “Having that as a core value is why Sunrise is so great, because they believe in that, and they live it every day.” fintechmagazine.com

SUNRISE BANKS

“ Having [DE&I] as a core value is why Sunrise is so great, because they believe in that, and they live it every day” WOLE COAXUM

CHIEF EXECUTIVE OFFICER, MOCAFI

Data Fuels Change As with every industry, access to more data and more sophisticated data science will also play a vital role in building the inclusive bank of the future. More data means more innovation. It is the “holy grail”, says Coaxum. “Having insights, and having the ability to act on those insights, is how you create a significant amount of value for the customer,” he says. “Taking additional pieces of data, for instance, the activities that people do every day, and making that visible and using that to assess that individual is a great example of that. What you can do over time with data is create new markets, in terms of people who you might want to lend money or people you might want to do business with. This is great because we're always looking for new sustainable markets.” 36

March 2022

To support this, Sunrise is undergoing an ambitious digital transformation to supercharge its partnership programmes and provide more access to that data. “Right now we're going through a core migration of a lot of our operational activities to the cloud. That’s going to allow more access to data for our fintech partners, more automation, more integration,” says Toft. “Data really is the fuel that powers our fintech programmes and it's used for everything from compliance to billing to reconciliation to what Wole is saying, which is customer insights and analytics. Being able to provide that real-time data is a bit unique in banking. There are a lot of batch processes and end of day files, so we are moving

SUNRISE BANKS

quickly to be able to provide that real-time access to data so that Wole and our other partners can make decisions to move into new markets.” Building a Better Banking Future In the coming 12 to 18 months, Sunrise will continue to build with both fintech partners and its customers’ demands and needs in mind. “Automating the ordinary and personalising the extraordinary is something we're saying a lot around the bank,” Toft says. For fintech partnerships that means digitising and automating more operations and continuing to develop API capabilities. “We're just trying to get better and faster so that we can continue to scale with our fintech partnerships.”

And for customers, it means meeting and exceeding expectations. “I think the expectation of speed is here today and everybody's still trying to catch up to where the consumer expects to be,” Toft says. “There's this sense that in the future, every company is going to be a fintech company, and I believe that in some ways, with every day that goes by, technology becomes more and more important to a bank. That is going to be the key if we look ahead to 2030: really making sure that you have a core agile process for technology within your organisation. That’s what we’re building today.”

fintechmagazine.com

BANKING

March 2022

BANKING

A COMPREHENSIVE GUIDE TO OPEN BANKING: TECHNOLOGY AND BEYOND An in-depth analysis of WRITTEN BY: DERIN CAG

open banking from a fintech perspective, including expert insights, along with the benefits and drawbacks of the technology

pen banking is one of the most significant changes to the financial services sector in a generation. But what does it actually mean? And how can businesses make sure they are ready for it? This feature article will answer those questions and more. We'll start by sharing the definition of open banking and then explore what fintechs can do to prepare for it. What is open banking? Open banking is a regulation-driven initiative that requires banks to open their APIs (Application Programming Interfaces) to third-party providers. "At a simple level, it means enabling APIs to share your financial data with the third parties you want to share it with, in a compliant and standardised way," said Herpreet Oberoi, Vice President of Customer Success at Infostretch. "Open banking is smart public policy. It has contributed to the UK becoming a leader in bank innovation and successful fintech innovation," added Bill Verhelle, founder and CEO of QuickFi. This technology allows those providers – including fintechs, aggregators and others – to build products and services that interact with bank customers' data. fintechmagazine.com

BANKING

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"Since open banking was originally introduced in the form of regulation, the focus of these regulated regions has understandably been on compliance; as a result, open banking has often been painted as a compliance exercise," said Eyal Sivan, Head of Open Banking at Axway. "However, two things are changing: first, regulated players are looking to generate a return on their initial investments; and second, marketdriven regions are beginning to adopt open banking in the absence of regulation. These two factors will fundamentally shift the focus of open banking over the next year, from regulatory compliance to the generation of real value." What is the purpose of open banking? The overall goal of open banking is twofold. First, it's intended to increase competition and innovation in the banking sector by giving fintechs, and other providers access to the data of bank customers. Second, it's designed to improve customer experience by allowing customers to understand their finances better and more easily compare products.

“OPEN BANKING IS SMART PUBLIC POLICY. IT HAS CONTRIBUTED TO THE UK BECOMING A LEADER IN BANK INNOVATION AND SUCCESSFUL FINTECH INNOVATION” BILL VERHELLE

FOUNDER AND CEO OF QUICKFI

It's worth noting that open banking is not a new concept – it's been around in various forms for years. However, the launch of PSD2 (the Revised Payment Services Directive) in January 2018 marked a significant milestone, as it made open banking mandatory for banks in Europe. Many other jurisdictions are also in the process of implementing open banking, and there's no doubt that it will eventually become a global standard. "The CFPB's recent moves prove that open banking is slowly but surely maturing in the US," said Vanni Parmeggiani, Director, Open Banking & Real-Time Payments at GoCardless. "As regulators continue pushing in this direction, we expect that 2022 could be the year of the great bank opening — especially as the difference in pace between the US and other countries becomes more obvious." fintechmagazine.com

BANKING

The benefits of using open banking The advantages of utilising open banking are clear. Banks can provide a better customer experience by opening up their APIs while also stimulating innovation and competition in the financial services sector. This innovation, in turn, benefits consumers, businesses, banks, and fintechs alike. "The benefits to companies that implement aspects of open banking, such as direct data connections, are simply too high to ignore in a rapidly evolving industry," said Nick Chandi, CEO & Co-Founder of ForwardAI." Other benefits of open banking include: • Increased transparency and understanding of finances, • Easier comparison of products and services, • Improved customer experience, • More efficient payments systems

“THE ENVIRONMENT BANKS ARE OPERATING IN TODAY WILL UNDOUBTEDLY CHANGE WITH THE ADOPTION OF OPEN BANKING” SAM STRASSER

CEO AT TREASURE

"It's early days for open banking, with many of the more interesting use cases still emerging. But in ten years time, open banking - and similar open data approaches in other sectors - will be a fundamental part of how the economy works," said Marie Walker, Co-Founder of Open Future World. 42

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Disadvantages of open banking There are several benefits to utilising open banking, but a few potential drawbacks are also to consider. First, ethics and privacy concerns may be raised due to sharing customer data with thirdparty providers. "Security and innovation need to go hand in hand to safeguard customer data. If open banking players do not put the right security measures in place, they leave the door wide open to cybercrime and privacy breaches," said Adam Moulson, CCO of Griffin.

BANKING

Second, there is always the possibility that banks may not adopt open banking standards quickly or effectively enough, resulting in a fragmented customer experience. Third, as with any new technology, there is always the risk of unforeseen problems arising. There are also many other potential benefits and disadvantages of open banking which have not been covered here. However, the points above should give

a good overview of both the advantages and potential challenges associated with open banking. The role of data in open banking The significance of data in open banking cannot be overstated. "The main tenet of open banking is that there is real value and power in financial data, and each individual should be empowered to take ownership of their data and how it can be used," stated Dan Jones, Special Counsel at Baker Botts. fintechmagazine.com

BANKING

“IN TOTAL, OPEN BANKING PROVIDES GUIDANCE ON HOW BANKS CAN MODERNISE THEIR APPROACHES AND IMPROVE SERVICE TO CUSTOMERS” DAVID ANDRZEJEK

GROWTH STRATEGY AT DATASTAX

March 2022

BANKING

data to improve the speed and accuracy of decision-making in credit. This can give customers a fairer assessment based on spend and lenders reduced risk of delinquency when lines of credit are approved." The bottom line Open banking is a significant development with the potential to revolutionise the financial services industry. It offers many benefits for consumers, banks and other providers, with data playing a central role in enabling these improvements. Data is the lifeblood of the initiative, as it's through data, fintechs and other providers can create products and services that interact with the finances of bank customers. "The sharing of that data promises to deliver innovative new services and spur competition," stated Prakash Sinha, Technology Executive and Evangelist for Radware. "In total, Open Banking provides guidance on how banks can modernise their approaches and improve service to customers. However, each bank will take its own approach in practice to make these projects work for their business," said David Andrzejek, Growth Strategy at DataStax. "The role for data here is critical, as it is the big opportunity to deliver on all the promise that Open Banking has." Data also can improve financial inclusion, as it can help banks identify and assess new customers more efficiently. In addition to providing alternatives to credit scoring, fintechs can also use data to develop products and services that are more relevant to specific demographics. According to Ian Johnson, SVP and MD for Marqeta in Europe, "Open banking can also boost visibility into customer purchasing

“IT'S EARLY DAYS FOR OPEN BANKING, WITH MANY OF THE MORE INTERESTING USE CASES STILL EMERGING” MARIE WALKER

CO-FOUNDER OF OPEN FUTURE WORLD

"Innovation and digital transformation will be critical to build the banking model of the future, and a robust fintech ecosystem is one of the building blocks required to support this journey," said Matt Tegnwall, General Manager of Fraud and Security Solutions at Verint Systems. While there are some challenges to overcome, open banking is likely to play an increasingly important role in the years ahead. Overall, one thing is clear, according to Sam Strasser, CEO at Treasure, "The environment banks are operating in today will undoubtedly change with the adoption of open banking." fintechmagazine.com

March 2022

Digging deeper for experience management data

AD FEATURE WRITTEN BY: JESS GIBSON PRODUCED BY: RICHARD TURNER

fintechmagazine.com

MEDALLIA

Medallia utilises its unique, award-winning SaaS platform, Medallia Experience Cloud, to maximise the impact of data on consumer feedback

t the forefront of AI-powered innovation in the consumer sphere, Medallia is perfectly positioned to own the mantle of market leaders amid the rapid digitisation of the retail, hospitality, and financial sectors – to name but a few. Establishing themselves as pioneers in experience management, the successful US company has been making its mark across the globe since 2001. Since then, the Medallia platform has been powering the decisions of thousands of big-name brands for just over two decades. This success is the result of dedication to a unique approach for both structured and unstructured data collection – one that was borne out of recognising the importance of the fundamentals of feedback, while embracing a holistic approach to listening in conjunction with embedded analytics. “The fundamentals of our solution are not uncommon. Like others, we focus on capturing customer information, analysing it, and serving it up in the places where people or systems can take action,” says Rachel Lane, Contact Centre Solution Principal for Medallia. “Medallia captures experience signals created on daily journeys in person, on calls and digital channels; over video, social media and IoT interactions; and applies proprietary AI technology to reveal personalised and predictive insights that can drive action with tremendous business results.” 48

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A desire to capture both passive and active forms of feedback – reaffirmed during the early coronavirus days, when interaction and communication became severely limited – has stimulated recent innovations that are more responsive to consumer behaviour. Add to this the fact that many websites were exposed as nonaccessible for vast swathes of users during this same period, and it becomes clear why interactive, responsive and accessible applications became more in demand than ever. Whilst this need to adapt may have been instigated by the pandemic, the mutable nature of technology and consumer expectations means that the company was already veering in this direction anyway, utilising digital platforms, phone calls, and social media to acquire feedback data; the pandemic merely shifted the markers slightly. 50

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Defining a core ethos and approach The key to successfully converting feedback into meaningful action is listening. But what exactly does it mean to listen and, more specifically, to listen well? This is exactly the same question the company asks of itself regularly, using the responses to define its strategy and approach. “The richest customer signals are not in passive surveys but in the indirect and observational data they are sharing with you every day,” Lane says. “Over the past 2 years, we’ve added voice, video, and digital behaviour capabilities to our platform, helping businesses tap into the voice of the silent majority: those who don’t, and will never, take surveys.” This recognition of ‘the silent majority’ helped shape the company’s holistic approach to listening, which began a decade ago. Back then, though, they were “pulling in social data and third party reviews”

MEDALLIA

according to Lane; in 2021, however, a notable 80% of analysed experience signals were derived from data collected outside of traditional surveys. The dawn of a new era, of sorts, for the company. “Predictive and prescriptive AI models take analysis a step further — beyond what manual analysis can do alone — to identify customers in need of attention and prescribe the next best action to take in order to improve loyalty, increase sales, and reduce churn,” affirms Lane, ushering in this new dawn enthusiastically. Nevertheless, Lane acknowledges that insights alone are not enough. “It’s about what you do with this information. We put consumable, rolespecific actionable insights into the hands of the people that can influence experience in-the-moment.” But it’s not just customer engagement that Medallia is passionate about; they also focus on employee engagement, too. When seeking and training employees specific to the financial sector, the insights Medallia collects can be used to up-skill and train agents on an individualised programme, with analytics helping to identify any skill or knowledge gaps and align outcomes with customer feedback.

Year funded

2,000+ Number of employees

15+

Global offices

TITLE: CONTACT CENTER SOLUTION PRINCIPAL INDUSTRY: COMPUTER SOFTWARE LOCATION: SAN FRANCISCO

EXECUTIVE BIO

2001

RACHEL LANE

Rachel has been working in customer experience for the last 13 years right across the omnichannel from being a practitioner to a consultant and now leads the contact center practice for Medallia. The contact center is in a new world of huge transformation and Rachel advises enterprises on the best approach to harness customer and agent engagement from the contact center to drive efficiency, maximise sales opportunity and manage agent development and attrition with a flexible workforce. Rachel is also a CX storyteller, showing practitioners just how the many successful brands continue to achieve massive gains with powerful transformation programs to improve their entire operation by integrating the voice of the customer directly from customer signals and journeys. An expert in ROI management, recommendations are built on driving the customers critical success criteria, not a generic view and so can deliver continuous results and drive an agile approach to business improvement and continuity.

MEDALLIA

“The contact centre for the financial services sector is in a critical place,” Lane says. “Due to the very nature of frontline agents in financial services enterprises, they are the most highly-trained agents in the contact centre world - typically taking up to two years to reach peak performance.” Currently, the effectiveness of agents is reduced following the pandemic. “The labour market for agents is already tight, with average attrition running at 40% prior to the pandemic,” Lane notes. “Now that there’s a flexible workforce model for contact centres, those that don’t embrace it are seeing agent attrition rising to as much 52

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as 100% per year, meaning that they’re not reaching peak performance, and new agents are struggling to find tenured role models with whom to home their skills.” “Analytics is a frontline driver in uncovering agent skill gaps and, when enterprises bring employee engagement and customer engagement together, identifying opportunities to rapidly up-skill new agents, and identifying those high performers to fast track and empower, can deliver fantastic results.” With a number of partnerships under its belt, the company prides itself on providing some of the best-loved brands with apps that are responsive and agile, incorporating

MEDALLIA

The multi-tiered channel and reseller model Medallia provides is specifically moulded for organisations that want to sell Medallia products and solutions – as well as value-added services – to grow its business platforms, with Medallia achieving growth by proxy.

AI-powered experience management systems that detect patterns, anticipate needs, and predict behaviour – all whilst recommending actionable suggestions. Medallia prefers to look at its partners as more than just that: they view them as an extension of its core team, building and expanding together. “Our technology partners are a global ecosystem of best-in-class organisations making software products that work seamlessly with Medallia, extending the customer-needed functionality and capabilities to derive more value for customers in the Medallia platform,” asserts Lane.

Innovation: the secret ingredient Over the past few decades, there has been a notable upswing in the volume of fintech companies emerging. Known for ‘identifying product gaps, efficiency opportunities, and broken experiences for financial services to capitalise on’, such companies are renowned for their non-traditional approach to finance. This is a bonus for companies like Medallia, because it means the opportunity to build a partnership based on new ideas, risk-taking, and cutting-edge technology. As such, many fintech companies have risen through the ranks relatively quickly, rapidly scaling up and engaging large numbers of consumers through the company’s recognition that data-driven feedback and insights are essential to their formula. “Early in their evolution, they recognise that they need to leverage a constant stream of direct customer feedback and indirect customer data insights, in order to rapidly iterate on all aspects of their products, customer journeys, and the interactions they deliver in and across digital and contact centre channels,” says Lane. Innovative systems and forwardthinking, responsive modes of engagement and management are what drive Medallia – the secret ingredients to its success – and this is where Medallia takes centre stage with its partners. The company’s feedback management capabilities and surveys enable fintech fintechmagazine.com

March 2022

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companies – among others – to ‘capture the voice of customers and employees wherever and however they want’, creating a personal dialogue between the voice of the customer and the brand itself, and engaging with customers across all digital touchpoints. Data, then, becomes a transformative tool through which Medallia’s corresponding autonomous systems can exert actionable change. What’s on the horizon for Medallia The near future is likely to continue the trends already flourishing across business technology, with cryptocurrency, the digitisation of systems, and the evolution of fintech leading the charge. But how is this likely to impact Medallia's future vision as a whole? “Moving forward, we anticipate that Medallia will continue to partner with businesses from end-to-end across the financial industry,” explains Lane. “From traditional banks, to fintechs, to fintechmagazine.com

MEDALLIA

cryptocurrency businesses, Medallia is continuing to expand our portfolio and help organisations across financial services provide better customer and employee experiences.” Following Medallia’s ESG Program launch in May 2021 – which specified its commitment and work so far towards having a global impact through the promotion of ethics and integrity, diversity and inclusion, environmental responsibility, 56

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and social impact – the company seeks to further enhance its environmental and social credentials for meaningful impact in future. “As we continue to grow and adapt to a post-pandemic world, we hold a special interest in ensuring our new and existing spaces remain committed to preserving our global environment,” says Lane. “Our goal is to minimise our impact on the environment and conserve valuable resources when

possible. We strive to pursue innovation that raises the bar, and we take responsibility for the impacts of our business.” Medallia’s ultimate vision is to create a complete, connected experience platform. “Whether a customer is visiting a storefront, contacting support, navigating a website, or clicking a personalized ad, the future of VoC is about listening everywhere and making customers feel known across every interaction,” says Medallia CEO, Leslie

Stretch. “Medallia helps companies deliver the cohesive and connected experiences that keep their customers coming back for more.” An ambitious vision, indeed – though if any company looks certain to achieve it, you’d be best putting your money on the efforts of Medallia.

fintechmagazine.com

HOW FINTECH

ECOSYSTEMS

DEMOCRATISE THE FINANCIAL

LANDSCAPE Fintech ecosystems are playing a critical role in the financial technology landscape by improving democratic collaboration to technological advancement WRITTEN BY: DERIN CAG

hat is a fintech ecosystem? In the most basic sense, it can be described as a collaborative network of systems or organisations working together to support the overall growth of the industry. In finance, this usually means developing new technologies and products to make it easier for people to transform the industry and shape the future. Beyond technology, fintech ecosystems can also encompass everything from regulation and education to banking and investment. It's a democratic process of networking that helps accelerate development and improve the financial landscape around the world.

THE STRENGTHS OF FINTECH ECOSYSTEMS Democratic collaboration One of the key benefits of a robust fintech ecosystem is the ability to drive innovation. By working together, organisations can share knowledge and ideas and develop new products more quickly and efficiently than they could independently. 58

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FINSERV

“Fintech ecosystems that are purpose-built offer members a jumpstart in the industry and quickly distinguish the early movers” KIM MINOR SENIOR VICE PRESIDENT OF GLOBAL MARKETING AT PROVENIR

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“ The pace of innovation is fast, and ecosystems are the critical ingredient to successfully tackling wellworn topics” KIM MINOR SENIOR VICE PRESIDENT OF GLOBAL MARKETING AT PROVENIR

This collaborative approach also helps reduce the risk associated with innovation, as organisations can spread the cost and responsibility for testing new ideas across the network. "The regulator here in the UK remains incredibly collaborative with fintechs and the wider financial services industry and strives to strike a balance between fostering innovation and keeping consumers safe," said Olivia Minnock, Editor at FinTech Alliance. "It's here that the term 'ecosystem' is most important – regulating something like BNPL or cryptocurrency is not a two or even three-way conversation, but involves a matrix of parties feeding back and forth, including government, regulator, fintechs, traditional institutions, merchants and of course the customers at the centre of it all." fintechmagazine.com

FINSERV

“It takes the creation of ecosystems around different sectors within fintech in order to effect transformational change” NELSON CHU

FOUNDER AND CEO OF PERCENT

March 2022

FINSERV

Financial inclusion Another benefit of a robust fintech ecosystem is the ability to promote financial inclusion. By making it easier for people to access banking and investment services, ecosystems can help bridge the gap between the haves and have-nots. "The need to incentivise, cultivate, and scale innovative companies meeting the unique financial needs of different demographics was a significant factor in the West Virginia Legislature's unanimous passage of the state's regulatory fintech sandbox," said Sarah Biller, Co-Founder at FinTech Sandbox. "West Virginia's regulatory fintech sandbox is certainly a useful tool in my work to expand the state's fintech ecosystem and build and scale companies meeting the needs of rural Appalachians." Technological advancement When two or more great minds work together, the potential for technological progress increases. Fintech ecosystems provide the perfect environment for technological development, and as a result, the industry is constantly evolving and innovating. "Fintechs have played an important role in expanding the technology choices available to advisors and wealth management firms. Tools introduced by the fintechs have also helped push the digital agenda forward, leading to the refinement of the usability and interactive aspects of the tools available to advisors," said Nitin Seth, CEO at Incedo Inc. Startup acceleration Fintech ecosystems are also great for companies at their early stage, as they provide a nurturing environment to help them grow and develop. By connecting startups with established

organisations, ecosystems help advise and expose new technologies and products to the market more quickly. According to Kim Minor, Senior Vice President of Global Marketing at Provenir, "Fintech ecosystems that are purpose-built offer members a jumpstart in the industry and quickly distinguish the early movers. The pace of innovation is fast, and ecosystems are the critical ingredient to successfully tackling well-worn topics like digital-first and instant gratification, and yet to be named new industry leaders." Machine to machine ecosystems In addition to people based ecosystems, machine to machine ecosystems also play a role in the fintech landscape. These are networks of devices that interact with one another, whether fully automated or requiring some human input. "In the B2B world, there are any number of different fintech solutions designed to solve very specific problems, such as streamlining the capture of supplier invoices or matching them with purchase orders, routing invoices for approvals, scheduling payments, and

FINSERV

automating the reconciliation of the receivable on the supplier side," said Vijay Ramnathan, President of MineralTree. Additional examples of machine-based ecosystems included; the internet of things (IoT), artificial intelligence (AI), machine learning (ML), robotics, or the combination of any of these. Other advantages and disadvantages The following are some of the advantages of fintech ecosystems; strategic partnerships, increased access to capital, enhanced support, and more. There are also other strengths not mentioned above, such as the ability to develop new products and services more quickly, among others. "It takes the creation of ecosystems around different sectors within fintech in order to effect transformational change within the overall financial technology industry," stated Nelson Chu, Founder and CEO of Percent. "It is rare for a single company to cause the incumbents to make a move but when enough of a groundswell of companies emerge around a specific sector or purpose, you see banks and traditional financial technology companies react." Nevertheless, there could also be disadvantages and risks associated with fintech ecosystems, such as the risk of market saturation. Additionally, ecosystems could also lead to monopolies and complacency. Understanding and abiding by laws and regulations are critical before entering or creating an ecosystem to mitigate potential risks. Different hubs are appearing worldwide, all with their own focus. Such ecosystems are helping develop a strong sense of community and help businesses grow. London is an excellent example of a city with a thriving fintech ecosystem, thanks to its 64

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“ Fintechs have played an important role in expanding the technology choices available to advisors and wealth management firms” NITIN SETH

CEO AT INCEDO INC

well-established financial sector and strong startup culture. According to Pat Larkin, Director at Mass Fintech Hub, another example is the state of Massachusetts, which "identified fintech as a priority sector in statewide economic development plans, placing it alongside cybersecurity, robotics, and AI as verticals where our state can be a global leader." He continued, "Through the Mass Fintech Hub partnership, we are able to engage and energise a broad cross-section of stakeholders to address critical issues that will help promote growth within our state, unifying partners from the private sector, academia, and government." It's time for a collaboration reboot Fintech ecosystems are changing the financial landscape. They offer a collaborative environment

FINSERV

where organisations can share knowledge and ideas, promote financial inclusion, and develop new technologies. As the industry constantly evolves and innovates, ecosystems will continue to play a role in its development.

In conclusion, fintech ecosystems are essential because they democratise the financial landscape. Ecosystems are present in different hubs worldwide, each with its own focus. As fintech evolves, so too will the role of ecosystems within it.

fintechmagazine.com

PIONEERING CONSUMER-CENTRIC INSURANCE TECH WRITTEN BY: BLAISE HOPE PRODUCED BY: JAKE MEGEARY

March 2022

COVEA INSURANCE

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COVEA INSURANCE

Covea Insurance has launched a microservice based policy admin platform that is driving huge change to an traditional industry through pioneering work with major partner brands.

ovea Insurance PLC is owned by Covea France, one of the largest insurers in France. The UK arm was founded in 2012 and is something of a laboratory for testing new and innovative approaches in the marketplace. They’re the partner of choice for a number of high-street brands, providing award winning claims handling and customer service to match the reputation of their clients. Graeme Howard, is Covéa’s Chief Information Technology Officer and the leader of a new era heralded by their micro service based approach to insurance platforms. Howard’s journey is a life lived through insurance and technology. A conservative and traditional industry, often slow and resistant to change, but where even minor change has an enormous impact on the end customer. Covea Insurance Plc was officially formed through a 1999 merger of 3 smaller UK insurance companies. Howard’s charge allows for the incubation of Covea’s most ambitious changes and sees its new platform approach as the launch of a new era in insurance technology. While applications of this technology are harder in an industry as traditional as insurance, that is precisely why digital

March 2022

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COVEA INSURANCE

What's the secret to successful Digital Transformation?

“ I think it's really important that the insurance offerings meet the needs and desires of customer. It's not necessarily about the cost of product” GRAEME HOWARD

CHIEF INFORMATION TECHNOLOGY OFFICER, COVEA INSURANCE

March 2022

transformation here is so meaningful. Covea Insurance is a young, dynamic and large business with a heritage behind it, as well as the flexibility and evolution of its offering, fit for the digital age. Fostering innovation in insurance technology Covea Insurance’s test and learn approach especially applies to the tech side of things, which helps foster innovation and allows Howard the autonomy to choose partners like Camunda and Dell. The company has created a new micro services, event driven policy administration platform to support the new Vitality Car insurance product. This platform was created in partnership with Vitality and also utilising some of the insurtech Iotatech components. That launched in June and a further enhancements to the platform are now in the works.

COVEA INSURANCE

GRAEME HOWARD TITLE: CHIEF INFORMATION TECHNOLOGY OFFICER INDUSTRY: INSURANCE LOCATION: ENGLAND, UNITED KINGDOM A dynamic board level CTO/ CIO specialising in the delivery of disruptive transformational digital programs and Agile software development to drive organisational growth, performance, operational efficiency and profitability. Passionate about enabling disruptive digital innovation to flourish within the business while ensuring that technology is fully integrated into the business functions that it supports. Thrives in fast paced environments while combining distinctive problem solving and strategic capabilities with proven success in driving execution with customers, through both regional and global teams as well as virtual organisations.

EXECUTIVE BIO

The convenience of an API for carriers is something Howard is very excited about. Howard began his career at British Aerospace as an engineer hired through the firm’s graduate scheme as a software engineer. Later, he moved on to Motorola Solutions, helping roll out radio systems across the UK, working his way up into more senior roles including Director roles in architecture and design of software solutions. His last role was designing and implementing a standardised intelligent network management systems to support 350 Managed Service systems across the globe. “Process automation, process definition, Six Sigma [process improvement], and really understanding, how to write business processes are critical” explains Howard. “Creating those sort of cookie cutter approaches, to a blueprint of how we could operate an IT system, in simplistic terms, and then migrate that out across different networks, across the globe to multiple, different channels and hundreds of customers.” Howard landed his first Chief Technology Officer role at global relocations firm Santa Fe as it embarked on a large-scale digital transformation for its 98 offices across 48 countries. He was later promoted to the global Executive team as CIO as the role out gathered pace and complexity. “There's a lot of transferable skills,” he says, “but by moving industries, there's a huge amount of learning but equally, coming in new to an industry allows you to challenge some of the previous sacred truths. After two years at Santa Fe, it was time for a new challenge. “I was looking for somewhere I could really get my teeth stuck into a major transformational role where I could really make a difference. I pretty quickly picked insurance as a sweet

I N N O V AT I O N REVOLUTION We’ll stop at nothing to empower you with technology that drives your business forward — from cloud, cybersecurity, storage and beyond. Because when organisations like yours can focus on innovation, the possibilities are limitless.

Dell.com

COVEA INSURANCE

“ If you don't put the hard yards in, if you don’t take that fight and that mantle forward, then nothing, nothing ever changes” GRAEME HOWARD

the digitization of banking had made an impact. So I was keen to try and find a role in an insurance company.” That was when Graeme first encountered Covea Insurance: “We had a discussion and I think it was interesting that they were of the right sort of size to be able to implement a strategy. The leadership team were keen to do something different and it fitted with my aspirations and desire to drive forward.”

spot that I felt was ripe for disruption and I felt it was massively underserved from a digital perspective. There wasn't really a huge amount of change going on. You could see what happened within the banking industry and, and how much

Policy API and pushing for insurance-as-a-service Howard is very excited about the potential of Covea Insurance’s policy platform and the benefits it can bring to the sector as a whole. “You can see where kind of open banking has gone with the data share and capabilities, So we are - particularly Neil Walker, our Head of Technology - helping

CHIEF INFORMATION TECHNOLOGY OFFICER, COVEA INSURANCE

fintechmagazine.com

COVEA INSURANCE

“ There's a built-up swell of change within the insurance market, not just about technology, not just about pricing, but just around making products much more sticky for people and giving the service that they really want and need” GRAEME HOWARD

CHIEF INFORMATION TECHNOLOGY OFFICER, COVEA INSURANCE

to really drive the foundations and the regulations around open insurance. So our platform is going to be fully compliant with the Open Insurance Initiative [OII].” The OII is the industry’s largest open source project and while Howard lauds his team’s work he also says there is still more to do, particularly with regard to machine learning and AI modelling and so the company has invested in created their own platform. In an era where digital fraud has skyrocketed with lockdowns, Howard praises his team for their work in an industry that historically sees high levels of fraud: “The team are doing amazing things in not just fraud analytics, but leading the way with, with ‘ghost broking’, which is a particular bane of the insurance industry and quite hard to pick out, but the models we've created now are starting to really push us into a much stronger position in that area.” 74

March 2022

COVEA INSURANCE

Howard is looking ahead to a supercharged 2022, saying “I think the more data we get, the more information we can create, the more analysis we can do. Particularly as we move to more crossproduct data and cross-selling. “I believe there's a huge amount of potential there, particularly when you look at different products at the same time, you start to get different patterns and get pretty passionate about it. It's quite exciting.“ How Covea Insurance maximises partnerships The policy admin platform launched by Covea uses Kong open-source software as its API gateway. While openness is important, Howards says working with select partners to great effect is the better strategy for continuing development. Camunda has really helped us to drive our orchestration capabilities and is a key part of our platform. “We can work with other people we're sharing that information up front so we can both develop at the same time. It's really about that, that transparent way of operating,” says Howard. “We found that by broadcasting that data…enabled us to move forward with other partners and co-develop at the same time, so when you're all pushing into production it's less of a surprise!” Howard says the fundamentals of a successful API rollout and development phase is having a clear understanding of working practises with partners you know well. “I feel with some partners, you don’t necessarily get the same level of closeness, it's not as symbiotic, it's more transactional,” he explained. “I think things tend to work better when you move from the transactional to a higher plane of collaboration with a partner. Howard says a principle of developing meaningful relationships with partners is at fintechmagazine.com

COVEA INSURANCE

“If you are willing to accept the status quos then what have you achieved?” GRAEME HOWARD

CHIEF INFORMATION TECHNOLOGY OFFICER, COVEA INSURANCE

the core of his development philosophy: “Less partnerships, but try to get deeper partnerships, so you get a true understanding of you, of each other. You can understand the business model that you are trying to support rather than it all being about your business model. I think it works a lot better when you understand what you need to do from each other, and you can really share that kind of experience to move forward.” How insurance technologies put consumers first Howard joined Covea in 2019 and after three years remains impressed by innovative practises, technologies and people in the industry and the consumer-first approach being tackled by companies in the space. “I think it's really important that the insurance offerings meet the needs and desires of customers. I strongly believe that subscription is something we should be moving into. There's some great companies that have done some amazing things with just consumer consumption based insurance. Providing solutions to questions likes - why do I need to pay £1,000 [US$1,338] a year when I'm only going to use the car for two months of the year, or how does my pet insurance work? I think there's just so many different things that we can do with that data and pushing information out to people and giving them greater choice.”

“It’s about choice,” says Howard. “There's a ground swell of change within the insurance market, not just about technology, not just about pricing, but around making products much more sticky for people and giving them what they really want and need.” “There's some great companies really growing very, very quickly, and I think when you see that kind of hyper growth that really tells you they're hitting a sweet spot in the market and will continue to grow.” His time with Covea has made Howard an advocate for the industry and the huge change it can create. “I think insurance is an exciting place, technology's now right at the front and centre of what we are doing and how we're getting there. I think insurance has had a bit of a negative perception from people,” says Howard. “When I first joined a few people were asking me, ‘why are you working in insurance?’ But I think I'm working in insurance because it's hard and has been historically slow and the opportunity for change is vast. “I think if you don't, if you don't put the hard yards in, if you don’t take that fight and that mantle forward, then nothing, ever changes. If you are willing to accept the status quos then, really, what have you achieved?”

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WEALTH MANAGEMENT

FEMININE FINANCE: WOMEN AND WEALTH MANAGEMENT

The financial world has always been traditionally male. But diversity drives are changing the face of fintech as we know it

WRITTEN BY: JOANNA ENGLAND

intech is changing – and not just in relation to legacy systems. While the global financial market has always been intrinsically male, the landscape is shifting as more women than ever before are embarking on careers in banking, investment, and payment-related industries. The move is not before time, and the faster the industry accommodates this metamorphosis and the challenges the female customer brings to the marketplace, 78

March 2022

the better. This is because ultimately, women are winning the race when it comes to sheer spending power. They have always commanded the purse strings when it comes to the domestic space. But now, with more women in CEO roles than ever before, they are controlling corporate budgets too. Cory McCruden, CEO of Wellbly Tech – a US based fintech focused on closing the gender retirement income gap doesn't mince her words on the subject.

WEALTH WEALTHMANAGEMENT MANAGMENT

She believes much more needs to be done to equalise the balance between the genders in terms of wealth management so that it serves women more fairly. She explains, “Women’s wealth is expected to reach US$93trn globally by 2023. I would cast these as opportunities, rather than challenges, which the financial services industry has, to better serve women, currently a huge and underserved market worth $700bn.”

“ ASSET ACCUMULATION AND DECUMULATION ARE DIFFERENT FOR WOMEN FOR A NUMBER OF REASONS” CORY MCCRUDEN WELLBLY TECH

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WEALTH MANAGEMENT

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There are numerous areas where inequality in the space is stark and unequivocal, she points out. “One of the most significant opportunities we have is to close the gender retirement gap. Women have 30-40% less money in retirement than men on average and are more likely to wind up in poverty globally. “Think about how crazy this is and the magnitude of this gap. When we consider the gender money gap, many first look to wage inequality, which in developed countries is between 10-20%. However, if we look at income in retirement, that gap balloons to over 30% in Europe on average, and can be as high as 49% in other parts of the world.” Women, wealth, and the workforce Such figures are sobering, and a reminder that even in the progressive West, we are less than half a century away from a time when women were considered secondclass citizens in all areas. But times are different now – so why are there such huge discrepancies between the way men build their wealth, and the way women build theirs?

“ BEING A WOMAN MEANS LIVING EVERY DAY WHERE PRODUCTS AND SERVICES AREN’T DESIGNED WITH YOU IN MIND. THAT’S AN OPPORTUNITY TO CREATE CHANGE” VRINDA GUPTA

Contributors Cory McCruden (right) is co-founder and CEO of Wellbly Tech, a US-based fintech focused on closing the gender retirement income gap. Women have significantly less retirement income on average than men and for women of color, these disparities are even greater. Wellbly is building an AI-powered platform that features holistic budgeting tools, liquidity management solutions, and investments, that addresses the unique challenges and circumstances women experience throughout their financial life journeys. Vrinda Gupta (left) is the co-founder and CEO of Sequin, a debit card that builds credit, which debit cards traditionally just don’t do. Sequin doesn't report credit utilization, meaning women’s credit reports are on an equal footing to that of men. Sequin is partnered with some women business founders, covering the mental health space, personal branding services, plant care, and education, and more. Additionally, Sequin is running rewards in Pink Tax categories, which is a new feature launching in 2022.

SEQUIN

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WEALTH MANAGEMENT

7 *inspirational* Women in Finance | MiracleMel

“ WOMEN CONTROL 40% OF GLOBAL WEALTH AND ARE ACCUMULATING WEALTH AT A FASTER RATE THAN MEN. MILLENNIAL WOMEN ARE EVEN MORE HIGHLY ENGAGED IN THEIR HOUSEHOLD’S FINANCIAL DECISIONS” experience more fluctuations in workforce CORY MCCRUDEN WELLBLY TECH

McCruden, who has studied the subject intently throughout her career, says asset accumulation and decumulation are different for women for a number of reasons. “First, women live longer on average than men. Second, women spend less time in the labor market than men overall and 82

March 2022

participation. In fact, in some countries, they are even mandated to retire and exit the workforce at a younger age than men, even though they live longer. This results in less earnings and more volatility in their cash flow.” But it's not just about working hours and salaries. Data, says McCruden, shows that women’s expenses tend to be higher. “On average women pay more for health care and caregiving. A US Department of

WEALTH MANAGMENT

Agriculture study of how households with children spend money looked at expenses from 1960 to 2015 and found that while everything got cheaper, the only categories that went up were childcare and health care, which are also the expenses women disproportionately pay.” And the disproportion doesn’t stop there. According to research carried out by Vrinda Gupta, CEO of Sequin – the first debit card to be launched in the US that specifically builds credit for women, credit options are also limited – diminishing borrowing power for women. Gupta, who has extensive experience in the financial services industry, only realised this fundamental system flaw existed after she herself was caught out by it. She explains, “I worked at Visa launching popular credit cards, but when I applied for the credit card I helped launch, the Chase Sapphire Reserve — I was rejected. “That was the moment I noticed a major flaw in the credit system. I looked at Visa data and I saw that 70% of young women, like me, were spending on debit cards or on credit cards that were in other people’s names, which means they weren’t building their own credit. “I learned that the credit system is built on bias. Even though women are historically better to lend to than men, credit cards are still designed to reward the way men spend money, putting women at a further disadvantage. Women are reporting negative experiences with credit, which is directly related to access to opportunity.” Diversity and equality solutions Nobody can deny that the space isn’t changing and that such a seismic shift to accommodate women equally, has been, and continues to be a challenge.

McCruden believes there is much to be done, but that the rewards of addressing the imbalance will be great. She says, “Anytime you have a diverse group of people around the table, it’s much easier to be innovative and creative. How do we reinvent the model versus recreate it digitally? “First, the dominant wealth management business model continues to be to earn a percentage of the assets under management accumulated from clients. This incentivises behaviour to accumulate as many assets as possible from clients and hold on to them for as long as possible.” She continues, “For someone caring for an aging parent, this could be problematic since she is likely spending some time out of the workforce to care for that loved one, and therefore unable to accumulate at the same rate. Second, the industry still treats women as a homogeneous group and through a marketing lens rather than from a business growth and revenue point of view.” McCruden notes, “Finally, women assess financial performance differently from men. While men on average look at performance relative to a market-based benchmark,

WEALTH MANAGEMENT

women assess based on whether they have reached their goals with a high success rate. As an industry, we’re not there yet in terms of positioning products and services in this way.” Gupta agrees and says education must form part of the continued solution. “Studies show that women are less likely to receive a lesson on credit by the time they reach high school, and that financial services companies are spending 13 times more in advertising to men versus women. Women enter the credit game in an unequal playing field – through no fault of their own!” Redressing the balance According to McCruden, every investor and VC should have a portion of their portfolio dedicated to addressing the structural reasons standing in the way of women and equitable access to financial services. That means spending dollars to define new markets that may not be as well understood and to dig into the root causes of why we see such huge differences in the way women engage in financial products and services. She says, “I am an admirer of Melinda French Gates. She is a great example of an investor creating clarity around a new market through her company, Pivotal Ventures, which has been working to advance our understanding of the care economy. The financial value of the US care market, which is $648bn, is astounding ($138bn larger than the US pharmaceutical industry. However, it’s not a market that has historically been well defined or understood, in spite of its importance.” There is a long way to go though, says Gupta, who points out that although much has improved, further change is essential. “The financial system truly was never designed with women in mind. Women could even be denied a credit card without a male co-signer until 1974, which wasn’t that long ago!” 84

March 2022

“ WOMEN COULD EVEN BE DENIED A CREDIT CARD WITHOUT A MALE CO-SIGNER UNTIL 1974, WHICH WASN’T THAT LONG AGO” VRINDA GUPTA SEQUIN

Financial tools, she says, need to be intentionally reimagined to center with women, to ensure systemic biases don’t steep into access to credit like they do today. “At Visa, I spotted a huge opportunity to better serve women’s financial needs because I was one of the only women in a male-dominated financial industry, in addition to identifying as a first-generation immigrant and person of color. I was uniquely impacted by the products I was building, in a way those before me weren’t.” Catering better to the female market Change, according to the latest data, says McCruden, must happen for the benefit of

WEALTH MANAGEMENT

the fintech industry as a whole. She says that every industry, not just fintech, that ignores women is in trouble. “Women tend to be the ones in charge of their family’s household budget, and in spite of the challenges I described earlier, women control 40% of global wealth and are accumulating wealth at a faster rate than men. Millennial women are even more highly engaged in their household’s financial decisions.” McCruden believes that for fintechs specifically, the risk we run if we can’t meet the needs of giant underserved markets, is eventual irrelevance. “Fintech is maturing as an industry, which presents an opportunity to self-reflect and evaluate whether the

industry has fulfilled its promises to customers and to be intellectually honest about where there are opportunities to improve. No one said this would be easy!” Gupta agrees. “The world needs more products and services designed by women and for women. Being a woman means living every day where products and services aren’t designed with you in mind. That’s also an opportunity to create change.” She concludes, “Investors who are not afraid of new markets, and willing to do the research to define and help others understand them, will reap the rewards of being a first mover in a space that will eventually attract more interest.” fintechmagazine.com

BEAZLEY DIGITAL

WRITTEN BY: RHYS THOMAS PRODUCED BY: JAKE MEGEARY 86

March 2022

UNDERWRITING RISK IN THE DIGITAL ERA

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BEAZLEY DIGITAL

Head of Technology James Wright introduces Beazley Group’s brand-new dedicated digital division and the future of digital, specialist insurance

nnovation and technological advancement have been at the heart of the Beazley Group since it was established in 1986. The specialist insurer has always remained close to the rapidly evolving industries it serves, with a client base that is highly diverse, in size, industry and geography, and leaders in their field. For more than three decades the group has experienced consistent growth, writing close to US$4bn of premiums in 2021, and with greater ambitions for the year ahead. But as the world is changing, so is Beazley. In January 2022 the group launched a new division to elevate its digital capabilities and lead from the forefront of accessible, always-on insurance, rather than react to the demands of clients and trends in the sector. Beazley Digital is helmed by James Wright, an insurance veteran who joined the firm in 2004 and has held a variety of roles in the intervening 17 years. His latest charge as Head of Technology will see him grapple with new challenges, but also seize new opportunities.

March 2022

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“We started to hear more and more from our brokers that they wanted simpler, faster, more digital ways of placing risk with us” JAMES WRIGHT

HEAD OF TECHNOLOGY, BEAZLEY DIGITAL

“We started to hear more and more from our brokers that they wanted simpler, faster, more digital ways of placing risk with us,” says Wright. “Our brokers want digital but they also didn't want to lose that kind of specialist, face90

March 2022

to-face, expert relationship that we’re known for. So we decided to bring together all of the talent from those digital channels into one division, to create a more joined up, holistic service back to our brokers, and to our clients.” Beazley Digital is built upon an objectives and key results framework (OKR) - a common approach for technology companies - with five overarching objectives that define the division’s output. Not only does this carve a transparent roadmap, it also allows each

BEAZLEY DIGITAL

individual to understand how the work they do impacts and improves the outcome. It is important, Wright says, that the firm’s experts evolve as much as the technology itself. Beazley Digital’s Five Key Objectives The first of Beazley Digital’s core objectives is brilliant basics, a commitment to get the fundamentals right and deliver an exceptional service in a very automated manner. The second is to meet brokers where they want to be met, creating from

the perspective of brokers rather than an insular ‘build it and they will come’ mentality. “Our third objective is access to specialists,” Wright explains. “This is really important. We’re hearing loud and clear that our brokers and our clients still want to be able to access a specialist, whether a claims manager or underwriter, to better understand their risk. Fourthly - and this is becoming more common across the industry anyway - is using data to drive insight and leveraging that in our everyday business operations to better understand how our products are performing and what our clients want.” The final mission statement is to do better, to continue to innovate beyond base level expectations. Refining Beazley’s current business is not enough for Wright. With a new cross-functional team freed from their ‘day job’ and able to focus on pioneering truly transformative projects, Beazley Digital is building for the future, a near future where the Amazon effect has already brought friction free, zero-touch accessibility to everything from finance to supply chain procurement. “I’m sure we have a broker demographic that is becoming younger and much more digitally adept,” says Wright. “I think the way of doing business historically is probably not how it's going to be done in the future. Yes, in some markets the way that business is done is going to persist for the next few years, and that’s why we’ve got one eye on the future and developing those new channels that can really connect with our brokers in new ways to drive that digital efficiency.” To do this, Beazley Digital is stepping away from how insurance firms traditionally prioritise products, instead focussing on distribution channels through which clients and brokers access them. Wright says the team is “very deliberately organised” to serve four core channels: APIs, leveraging fintechmagazine.com

James Wright TITLE: HEAD OF TECHNOLOGY INDUSTRY: INSURANCE

“We are changing how we work vendors and partners in terms of our agile method and realisation framework” JAMES WRIGHT

HEAD OF TECHNOLOGY, BEAZLEY DIGITAL

EXECUTIVE BIO

LOCATION: LONDON, UK

James Wright is the Head of Technology for Beazley Digital he is part of the senior leadership team focused on developing and delivering seamless, intuitive digital insurance solutions for Beazley’s SME clients. Before taking on the role within Beazley Digital he held the position of Head of US IT where as part of the US Management team was responsible for the end to end technology platform delivering specialist insurance products for both large and small commercial markets. James played a key role in scaling Beazley’s US operation through continued strategy development, internal partnerships, technology delivery and developing a vendor ecosystem. Prior to his US leadership role James managed the Lloyds of London platforms and before that managed the infrastructure and operations division laying much of the core foundation that enabled Beazley to become an international organization. Prior to joining Beazley James held technology roles at Aviva and The Financial Times. James has a passion for building cross functional teams that can work

March 2022

together in creating technology powered products that deliver value for all. He is passionate about taking inspiration from technology giants and making it relevant and applicable to small commercial insurance. His breadth of experience in both technology and insurance enables him to add value in the alignment of technology delivery alongside the digitization of the insurance product, process and distribution strategy. Deciding to not purse a Bachelor of Science degree James as continued his personal and professional development with formal technology qualifications combined with management and leadership training from London and Saïd Business School.

BEAZLEY DIGITAL

Microsoft’s cloud expertise to deliver safe and secure products and processes; a digital brokers’ portal; market hubs, where Beazley products are accessible to brokers in international, digital marketplaces; and email and phone, the traditional channels which remain the standard route for clients in the US and other major markets around the globe. “So as I say, we’re working with our brokers and their needs and feedback, and that means we are going to continue supporting that traditional channel,” Wright says. “But we are going to bring new digital technologies to the fold, specifically around email ingestion and using things like NLP and data enrichment to improve that service without changing what fundamentally makes it work.” To realise these objectives, Wright has embedded a philosophy of agility into Beazley Digital’s culture. Delivery sprints are biweekly, allowing the division to prioritise and react to emerging demands. Quarterly planning also allows the team to roadmap and deliver product changes in close to real time. It is a mindset that Wright also extends to the technology partners and collaborators that underpin the insurers digital offering.

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FOR SEVEN YEARS ENDAVA’S DEDICATED TEAM HAS WORKED THROUGH BEAZLEY’S DIGITAL JOURNEY Endava and Beazley, both global businesses based in the UK, have been working together for over seven years, during which time they have developed many products, among them Beazley’s e-trading platform, reporting services and other applications. “More recently, we have been helping Beazley in their digital transformation journey and their agile transformation process,” explains Gavril (Gabi) Halasu, Endava’s Head of Applications Management. “I think we are all seeing the value that’s been created right now, because Beazley is seen as a highly innovative company in the insurance world.” This makes both companies an ideal fit since Endava, as one of the world’s leading providers of digital transformation consulting and agile software development services, has become well known for the innovative, low-code solutions it develops for its clients. “We are a service provider working with global clients irrespective of vertical,” adds Design Lead Ioana Catinean, “Gabi and I however, have focused mainly on insurance clients for many years, for whom low-code platformbuilding is extremely beneficial.”

The partnership between Endava and Beazley goes back over seven years. Till then they were relying on in-house talent, hampered by spreadsheet-dependency. Now this partnership delivers ongoing business value through teamwork. As Beazley’s Head of Technology James Wright said: “Endava has access to talent markets that we don’t. Endava provides that talent pipeline for us, which is crucial, and has empowered us to scale our ideas and concepts quickly using very strong engineers that we wouldn’t ordinarily have access to.” Implementing and developing products on Sequel Rulebook has been a game-changer for Beazley. “This has helped them a great deal in growing their client base,” says Gabi. Endava brings much more to the table than IT capability. Its model of partnership delivers targeted and reliable results, at speed, for insurance carriers.

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BEAZLEY DIGITAL

Beazley Digital: Underwriting Risk in the Digital Era

March 2022

“Five years out, the real way to prove [digital] is by building a meaningful book of business” JAMES WRIGHT

HEAD OF TECHNOLOGY, BEAZLEY DIGITAL

Partnering for Digital Excellence “We are changing how we work with vendors and partners in terms of our agile method and realisation framework,” Wright explains. “We’re ensuring that those partners are aligned with that way of working, and we're using a common set of tools and language to drive the right outcomes, bringing our vendors closer together in this environment.” Endava is a key technology partner for Beazley, with delivery units around the world. “What this means is they've got access to talent markets that we don't have access to. And given that everyone's trying to digitise at the moment, in every industry, there is a real war on talent,” Wright explains. “Endava provides that talent pipeline for us, which is crucial, and has empowered us to scale our ideas and concepts quite quickly using very, very strong engineers that we wouldn't ordinarily have access to.” One example Wright points to is the Beazley Digital API gateway, a complex combination of proprietary, internally developed technology fintechmagazine.com

BEAZLEY DIGITAL

“Winning the market is very important, but providing that true omni-channel experience, giving the client choice, is the really exciting part of what we're offering” JAMES WRIGHT

HEAD OF TECHNOLOGY, BEAZLEY DIGITAL

that relies on Microsoft’s Azure cloud infrastructure. “Endava’s engineering team have been able to very quickly scale that operation up, so we can provide numerous products and services via API.” Under the bonnet, Beazley Digital’s products leverage Verisk’s Sequel Rulebook, a robust rules engine into which the insurer inputs its underwriting rules, logic, rating and documents. It’s something Wright needs to do, but partnering with Sequel goes beyond necessity. “Sequel also have an ambition to move and digitise a broader part of the market,” he explains. “To do that they've got this concept called the Sequel Hub, which we’re a partner of, and that allows us to put products into a one-to-many environment, allowing lots of brokers to access our products. The reason we really love that is that it is starting to bring 98

March 2022

some standards to our industry.” This product is surfaced to brokers under the MyBeazley brand, an evolving broker trading portal already on the market in four countries that illustrates where Wright’s division is headed. MyBeazley provides brokers with access to 14 products, providing instant insurance quotes and terms they can feed back to clients. It is an immensely customisable portal that Beazley has been developing for several years. “MyBeazley has been built in a very clientcentric way; we haven't just taken the Sequel rulebook product off the shelf,” says Wright. “Over the past three years it has been heavily customised, specifically from broker feedback, and as a result of that is being very well received by brokers. We’re even attracting underwriting talent as a result of having a system of that nature, and the plan

now is to launch that into Canada and the US. It’s a very solid example of how we’re using digital in a competitive way.” The Future of Beazley Digital Beazley Digital is a brand-new division. While much of the insurance firm’s digital acumen is today centred upon the transactional elements of buying and selling insurance products, Wright is emphatic that a focus on channels before products will change that. It means providing a true gateway experience, where digital training materials about Beazley products will better equip brokers, where risk information is instantly available at their fingertips, and where having a video call with a specialist ensures Beazley’s reputation for access to expertise endures. “We see that this as an experience that's much broader than just the trading portal element,” explains Wright. “That's really that's a core part of what our proposition is going

to become over time. Winning the market is very important, but providing that true omnichannel experience, giving the client choice, is the really exciting part of what we're offering.” Over the coming year, Wright hopes to establish a digital foundation to build upon, an agile delivery framework, and “rather than just me saying it”, feedback from brokers that vindicate the division’s OKR approach. “Five years out, the real way to prove that is by building a meaningful book of business,” Wright adds. “Across multiple territories, across multiple products, what we'd like to be saying in five years is that we're writing somewhere between US$400-500mn of small business and 80% of that is digitally underwritten, straight through processes, and with broker and client feedback being very positive about that.”

fintechmagazine.com

TECHNOLOGY

THE ULTIMATE TRENDS IN THE F I N T E C H E C O M M E R C E R E V O L U T I O N WRITTEN BY: DERIN CAG 100

March 2022

TECHNOLOGY

The future of eCommerce is here, and it's thanks to fintech, from the rise of chat commerce and mobile payments to QR codes and data-focused solutions

he eCommerce revolution is in full swing, and there's no turning back. Brick and mortar stores have been closing at an alarming rate over the past decade, while online sales continue to surge. According to Statistica, worldwide eCommerce purchases will reach US$5.4tr in 2022. So what is driving this significant shift? A big part of it is the rise of fintech, the fusion of financial services and technology. This feature article explores the fintech eCommerce revolution in detail, including some of the key technologies and trends in play.

FINTECH TRENDS IN ECOMMERCE BNPL One of the most recent fintech trends to hit the eCommerce space in recent years is BNPL, or buy now pay later. This involves a merchant extending credit to a customer, who then has a set time to repay the debt. "Now the eCommerce companies also give the option to pay in instalments. This policy helps them to attract more customers," said Christian Velitchkov, Co-Founder at Twiz LLC. "This payment type is usually preferred for large purchases." BNPL is also a good way of providing financial inclusion to those who may not have access to traditional credit products.

Furthermore, it gives buyers a sense of flexibility and control over their spending. "Increased offerings of 'try before you buy' and 'buy now, pay later' will continue to pay dividends for eCommerce companies that invest in them," said Gregory Zakowicz, Senior Ecommerce Expert at Omnisend. "These offerings give consumers increased trust in doing business with brands." Mobile payments Another key trend in fintech eCommerce is the rise of mobile payments. This trend involves customers making payments using their smartphones or other mobile devices. One of the advantages of mobile payments is that they are convenient and fast. Customers can simply scan a QR code to make a payment without entering any details such as card numbers or addresses. For example, there has been a tremendous increase in mobile payments usage in Brazil, accounting for 8% of all e-commerce transactions based on research by JP Morgan. This fact is primarily due to the widespread adoption of smartphones and the growth of fintech in the country.

“ Ecommerce is explodin” RICARDO PERO

CEO OF SELLERSFUNDING fintechmagazine.com

101

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

“ Advancements in Fintech have allowed e-commerce companies to remove friction from checkout” KIRSTEN SHEPARD

DIRECTOR OF ENTERPRISE SYSTEMS PRODUCT, SAATVA

Chat commerce Making payments in real-time while using a chat interface is another trend in fintech eCommerce. This trend involves customers making payments using chatbots as a convenient way for customers to make payments, as they can do so without leaving the chat interface. They also provide a more personalised experience, as chatbots can remember customer preferences and behaviour. Integration with existing messaging apps are another category of chat commerce, and these involve companies integrating their payment services into existing messaging apps such as WhatsApp, Facebook Messenger and WeChat. "Businesses will add new mobile channels within their existing systems to reach more customers. More personal, targeted, and relevant communications and checkout experiences will enhance customer experience beyond standard messaging," said Pieter de Villiers, Co-Founder and CEO of Clickatell. "Chat Commerce will enable buying, paying, and selling through more personal interactions between the consumer and merchant, including eventual automation and smart chatbotpowered interactions."

Single-click checkout As most customers are familiar with the process of making a purchase online, retailers are looking for ways to make the checkout process faster and simpler. One way of doing this is through single-click checkout, which involves customers making a purchase by clicking one button rather than filling out multiple fields. According to Aman Ghataura, Head of Growth at Alphagreen Group, "Start-up fintech companies like Primer.io optimise payment gateways to show customers the most suitable checkout providers." In addition, single-click checkout can help retailers increase conversion rates, making the purchase process faster and simpler. As a result, customers are less likely to abandon their shopping cart during the checkout process.

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Data-driven innovations Another trend in fintech eCommerce is the use of data-driven technologies. This trend involves retailers using data analytics to understand their customers' purchase behaviour and preferences. Data-driven fintech helps retailers to personalise the shopping experience for their customers, which leads to a better customer experience. "Price optimisation and management software allow internal teams to bring in data, adjust pricing strategy, and deliver dynamic price adjustments in real-time to eCommerce while maintaining consistency with traditional channels," noted Lee Rehwinkel, VP of Science and Analytics at Zilliant. Democratising access to sales Another development involves making it easier for small businesses and entrepreneurs to sell their products and services online. One way of doing this is through the use of marketplaces, which are platforms where small businesses can sell their products and services. "Digital assets like mobile apps, eCommerce stores - especially Shopify and Amazon stores - blogs, Saas companies and other online businesses are the hot new alternative asset class for acquisition investors and digital entrepreneurs," stated Blake Hutchison, CEO of Flippa. Of course, there are also problems with the lack of some solutions. "Ecommerce is exploding, yet the industry is still lacking sufficient financial solutions that serve small and midsize international merchants," added Ricardo Pero, CEO of SellersFunding. Other trends Some additional trends in fintech eCommerce include the use of cryptocurrencies and 104

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“ Now the eCommerce companies also give the option to pay in instalments. This policy helps them to attract more customers” CHRISTIAN VELITCHKOV CO-FOUNDER, TWIZ LLC

“ Businesses will add new mobile channels within their existing systems to reach more customers” PIETER DE VILLIERS

CO-FOUNDER AND CEO, CLICKATELL

to help e-commerce merchants increase sales and attract new, repeat customers who buy more, more often," stated Brandon Spear, CEO of TreviPay. Cybersecurity is also a major concern, "as cybercriminals find ways to bypass login checks it is necessary to implement additional checkpoints that provide broader visibility and control over account activity," added Ido Safruti, Co-Founder and CTO of PerimeterX. Furthermore, this post does not address a number of additional intriguing trends; nevertheless, the ones above provide a good representation of some of the most significant developments in this area.

WITHOUT FINTECH, THERE WOULD BE NO ECOMMERCE

blockchain technology, as well as the increasing popularity of subscription-based models. QR codes are also being used more frequently as a way of making payments. In addition to consumer-facing trends, there are also a number of business-tobusiness trends in fintech eCommerce. "Offering instant decisioning and credit to B2B customers can be achieved through an effective embedded payments experience

As the fintech eCommerce revolution evolves, one can expect to see even more innovative and exciting trends emerging in the coming years. "Advancements in Fintech have allowed e-commerce companies to remove friction from checkout allowing the brand to sell their products to more people more quickly," said Kirsten Shepard, Director of Enterprise Systems Product at Saatva. In conclusion, it's an exciting time to be involved in the eCommerce industry, and without fintech, the industry would not have existed. fintechmagazine.com

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IBOTT

Insuring the shared economy and beyond WRITTEN BY: JOANNA ENGLAND PRODUCED BY: JAKE MEGEARY

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Head of ibott, Chris Moore, tells us why Insurers need to start paying more attention to the growing Sharing Economy

n January 2019, Apollo Syndicate Management, the independent specialist insurer and reinsurer, announced the appointment of Chris Moore as Head of ibott (Insuring businesses of tomorrow for today) and Deputy Active Underwriter of ibott’s special purpose arrangement (SPA) 1971 at Lloyd’s. Fast-forward to 2022, and Moore, who is known for his proactive leadership style and passion for innovation, is relishing the role that is leading ibott and its offerings from strength to strength. Moore, a mathematics graduate of Bath University who always wanted to work in the insurance industry, is not one to shy away from a challenge. He admits he took a somewhat unorthodox dive into his first role in the space. He explains, “I had visions of being an actuary and quickly realised that probably wasn't for me, so tried to transit into underwriting. However, I'd missed the graduate scheme intakes and so tried to find a different route into the industry which proved fairly challenging. Then my friend told me how he'd accepted a job at Deloitte to be a consultant and he was going to cancel an interview with an insurance broker the next day.” Moore saw his chance and took the slot for himself. "I told him not to cancel it, and then turned up and stole his interview with my CV. I think they appreciated the audacity and gave me the job there and then."

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ibott: Insuring the shared economy and beyond

“ You feel like you are a small part of that journey because you have enabled them to achieve their goals by making insurance an enabler and not a blocker. It’s fun” CHRIS MOORE HEAD OF IBOTT

The calculated risk paid off, and Moore began work as a broker, transitioned into underwriting at Catlin, and then two years into his career, grasped the opportunity to join Apollo - a new Lloyd’s syndicate - to help establish a new Casualty practice. 110

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Adopting a new approach for new risks The move proved to be another advantageous one for Moore, who thrived in the innovative environment of Apollo. “It was almost like a startup in itself, which is quite rare in the Lloyd’s environment,” he says, outlining the company’s background. "It's called Apollo because the original investor was Neil Armstrong, the first man on the moon; the Syndicate number 1969 was chosen both to mark that event and to be symbolic of the challenge to the status quo that Apollo sought to pose”. Moore says Apollo's attitude to innovation, and the way the company embraces the client-first culture, resonated deeply with him. The company was one of the innovators behind building a first of its kind global solution for Airbnb in 2014. The biggest challenge with the product for Airbnb was the element of trust, explains Moore. "To create trust in their marketplace, Apollo needed to ensure the nights stayed,

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which were located in various people’s homes, were insured well enough to generate trust in the product." Central to the challenge lay the concept of ownership, says Moore, which the insurance industry, in general, is rooted in. It was the disruptive ability of Apollo in acknowledging the changing marketplace and the potential of the Sharing Economy that led to its product innovations. Moore says, "The insurance industry is fascinated by ownership. You own a car, you insure your car. You own your house, you insure your house. New millennials, however don't care about ownership. For them the future is utilisation, rendering it challenging from an insurance perspective." By listening to the requirements of the marketplace and recognizing changing needs, Apollo embraced partnership with Airbnb and created a tailored, fit for purpose, scalable product – and word spread. “When you create something for someone like Airbnb, your phone starts ringing; "Hey, we're a rideshare company. Can you create something for us in the rideshare space?" or, "Can you create something in this car sharing space, on demand delivery, drones, e-scooters, autonomous vehicles?" because that's the direction society is moving towards."

TITLE: HEAD OF IBOTT INDUSTRY: INSURANCE LOCATION: LONDON, UK Chris has been with Apollo since 2013 and was instrumental in the setup of ibott, the first dedicated division at Lloyd’s catering for the digital economy and new mobility. Chris has a passion for insurance innovation and believes in insurance products being an enabler for new progressive business models. He was one of the pioneers in creating products for the Sharing Economy, working with companies such as Airbnb in early 2014 to create global, first of their kind solutions. Chris has a degree in Mathematics and is FCII and CRIS qualified. He sits on the Lloyd’s innovation panel and the Lloyd’s Market Association Committee for US and International Casualty.

EXECUTIVE BIO

New market opportunities It was, Moore recalls, Apollo's client-first culture that led to the birth of ibott. “We moved away from a buyer-supplier model and embraced one of long-term strategic partnerships. We quickly gained a reputation for listening to clients, collaborating and co-creating new products, and innovating as much as we could." Taking advantage of new opportunities as they come along has been something of a habit for Apollo. “It just became very

CHRIS MOORE

Connected Insurance is helping digital platforms, reduce their risk exposure

Connected Insurance: UBI and the Sharing Economy Connected Insurance’s Tal Cohen and Yaron Zurr reveal how CI is revolutionising UBI solutions in the sharing economy Connected Insurance (CI) created a datadriven risk platform that powers the next generation UBIs, driving the space forward. Tal Cohen, co-founder and CEO of CI explains, “The sharing economy is a relatively new industry with limited exposure history. Traditional insurers are using traditional risk models that they use for similar products. This results in low accuracy pricing, which is based on few risk factors and a black box that customers can’t understand or control. By differentiation, CI breaks the insurance paradigm.” “Our technology employs pricing models with much higher granularity, factoring many more data points currently ignored standard pricing models. We provide our clients transparency on their insurance costs and empower them to control and reduce costs by making educated decisions,” he says.

Strategic partnerships Extending their services into the marketplace has been achieved by a collaboration with some of the world’s leading insurance players. Yaron Zurr, co-founder and CCO of CI, says “We believe that insurance players

should become contributors and enablers to the businesses they serve. We provide a solution that empowers our partners to make a better insurance offering to their client, as well as solution for the digital platforms to manage their self-insurance and enable them to offer even more relevant protections to their end clients.”

Technology-driven innovation and CI CI’s full-stack solution connects and serves all parties: sharing economy platforms, brokers, claim administrators, and reinsurers. Connecting everyone under the same platform, says Cohen, creates transparency, leads to better insurance pricing, and ultimately allows sharing economy companies to reduce their total exposure costs. Cohen adds, “CI provides digital platforms with essential tools such as: Risk & utilization dashboards to help the platforms manage their insurance costs and control their risk; Connected Claims module integrated into the digital; tools to manage the self-insurance part better than most advanced carriers; and tools for rapid creation of embedded insurance.” The result is a seamless delivery of services and a satisfactory customer journey, concludes Zurr, who adds, “CI can optimise the customer’s insurance pricing by focusing on the lower risk usage and avoid the riskier transactions.”

Learn more

apparent to us that the entire digitalisationdriven space occupied by new tech, new startup companies and new platforms was seeking insurance products that the insurance industry had previously failed to produce," Moore explains. He says that Apollo was fortunate in that it was exposed to the huge wave of insurtech early and was well positioned to embrace the opportunity and benefits of digitalisation from the start. “We were fortunate in the fact that we didn't have legacy systems that would prevent us from adopting the digitalised partnership model. We partnered with some talented clients, broker partners, and tech vendors that allowed us to explore new things without huge upfront cost on our balance sheet." 114

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Fast-track to success and ibott’s launch Recognising that insurance companies were trying to sell mismatched products that just weren't fit for purpose was the revelation that led to ibott being launched. Moore put together a team that is purely dedicated to those unique challenges within new tech platforms and creating tailored insurance products for them. Demand has been high, and since its launch in 2019, ibott has been increasingly busy. “It's been very successful,” Moore says. “We’ve written an awful lot of premium and forged some fantastic longterm partnerships and are on track to hopefully write US$250mn this year.” 2022 will also be ibott’s first year as a standalone syndicate. What that means is

IBOTT

that at Lloyds, the company will have its own capital base purely dedicated to this industry. This is important for ibott as the market is changing rapidly and Moore feels the need for dynamism, flexibility and agility has never been so important in order to be a successful partner for their clients. It's been a journey, acknowledges Moore, who says the past three years being dedicated to this space have enabled him and his team to meet with a wide range of companies that are passionate about changing the world. "You feel like you are a small part of that journey because you have enabled them to achieve their goals by making insurance an enabler and not a blocker. It’s fun.”

Today, ibott focuses on partnerships across the entire digital economy. “The team goes beyond just underwriting our clients and truly partners with them using APIs. This provides a deep level of understanding of our customers’ evolving needs. We can also use this data to establish new risk insights that we can feed back to our clients in order to help them make better risk based business decisions. Our goal is ultimately to help our clients run safer and more sustainable operations.” Managing the Sharing Economy With greater numbers of users than ever before, from mobility solutions to the housing and travel market, the Sharing Economy has developed massively over the fintechmagazine.com

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past few years. The emphasis on ownership has truly shifted to utilisation, which is where ibott is making its mark.

“We were fortunate in the fact that we didn't have this wave of legacy systems that would prevent us from adopting the digitised partnership model” CHRIS MOORE

HEAD OF IBOTT

“When you start transitioning to a utilisation model you seen an immediate advancement in risk mitigation; we have seen marketplace platforms buying insurance on behalf of a lot of their users, whether it's their drivers, whether it's the hosts that put homes on their platform, whether it's the people that ride one of their e-scooters or e-bikes,” Moore says. “They're trying to build an insurance product that takes away the block of, "Well, I can only use this service through insurance." And insurance historically has been a pretty awful customer experience which companies don't want to put their users through.” Ultimately, solving problems and creating seamless solutions is key as it encourages people to interact with the platform – and encourages others to do the same. This ease of use creates brand loyalty, he explains. "If I were to put my home on an accommodation sharing platform, and I knew I had insurance in place that would protect me from anything that could happen, it would probably be a block in terms of me renting my home outside of fintechmagazine.com

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that platform. That's an example of how insurance can tie in that customer loyalty. So when you start thinking about that, the whole product itself has to change. Insurance in this space is not just about balance sheet protection. Strategically positioned insurance can be a USP for a marketplace platform." Creating a disruptive service Interaction with customers is critical to the process. The plan must fit each user perfectly. “Am I speaking to the individual giggers or the individual drivers? Or am I speaking just to the platform?” Moore says. “You've got a whole compliance and 118

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regulation piece that fits around that type of policy. The real opportunity within this space is that you've now got a real closed pool of addressable premium.” He explains, “If I wanted to insure a fleet of drivers and I was trying to sell to those individually it's a huge marketing spend, a huge amount of administration and a difficult risk selection process. A partnership with a platform, on the other hand, permits 100% driver acquisition through a bundled commercial purchase, and unlocks the potential for my team and I to start doing a lot of things with the data that can drive safer and thus improved performance.”

IBOTT

Managing Big Data for insights With a large number of new data sources and the growth of the IoT, processing Big Data has been a challenge for the insurance industry in general. However, this rich information source has also been a huge advantage to insurtechs that have adopted the latest technologies and can manage the data to their advantage. The digital ecosystem, Moore says, is providing insurtechs with the opportunity to create new products because they have better access to data and they are adept at maximising that opportunity. “A lot of insurance companies have maybe struggled embracing new risks like that of the Sharing Economy as they have a deep rooted reliance on 10-15 years of developed loss data in order to price risk.” “However, we need to move faster than that. It's got to be more dynamic. The 10 years of data might only have three or four data points. What we can get through this digital ecosystem is hundreds of data points, from maybe the past two to three years. It's not as long-standing – but it is much richer information – and the world is moving so fast that it's almost certainly incredibly deep and it gives us so many different risk insights.”

“ Embedded insurance is huge. There's still so much to be done on the insurance customer experience” CHRIS MOORE HEAD OF IBOTT

Scaling at pace Another challenge is the ability to focus and grow. Because of how the insurtech industry is developing, startups often make the mistake of trying to do too many things when they should always seek to specialise and become leaders in their fields. The Sharing Economy, like insurtech, is also undergoing a period of intense development.

"It's expanding all the time," Moore says. "And it's not expanding linearly. Airbnb is a great example. It transitioned quickly from just providing homes to now providing experiences and looking at the whole spectrum of travel. Policies have to be able to cater to that level of change. Insurers have struggled with that amount of flexibility and that speed that you need to transition to create a partnership that's fit for purpose for these companies.” He continues: "I think it's really easy to see the opportunity and think disruption. But my advice to startups in the space would be 'focus on your goal'. There is a huge opportunity across every part of the value chain, but focus on a certain deliverable and be good at it and deliver it and then you can transition. And I think this is also a very people-oriented business. It’s about building relationships and partnerships.” fintechmagazine.com

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“ Digitalisation done properly allows my team and I to derive new risk insights that we can feed back to our clients in order to help them make better risk-based business decisions. Our goal is ultimately to help our clients run safer and more sustainable operations” CHRIS MOORE HEAD OF IBOTT

ESG, transparency, and mobility But it’s not just about expansion, it’s also about changes in direction. Consumers are becomingly increasingly focused on the Environmental, Social and Governance factors and so our clients are looking for ways to embrace changes and require their insurance partners to support them in these endeavors. Moore says working with mobility firms is inspiring because they are delivering on their carbon-neutral promises. "I'm very passionate about micromobility. I do think it is going to play an important role in the future of transportation. What we're trying to be is transparent. E-scooters are an example where insurance poses a unique challenge. It's a new area of mobility and there isn't much data on it. There's certainly fear from certain regulators about embracing that aspect. But insurance has an important 120

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role to play, not just through providing protection to these shared scooter operators, but also educating regulators about what an insurance product needs to look like, and what the real risks are. We are very data-driven in our underwriting decisions with ibott.” Innovation and success Ultimately, Moore believes in innovation – but it must be carried out strategically. He also believes the pandemic has

fundamentally changed the digital economy and the opportunity for insurtechs, and that embedded insurance will be the single biggest trending factor transforming the industry over the next few years. In terms of what inspires him today, he speaks of the richness of opportunity within the digital economy and insurtech industry as well as the latest emerging trends. “Embedded insurance is huge. There's still so much to be done on customer experience. There's so much to be done on data. There

are so many opportunities in terms of the ecosystem and technology.” He adds, “that richness of opportunity has attracted a new wave of talent that insurance hasn't seen before. We are seeing people with a non-insurance background coming into insurance – and it’s fantastic working with people that have a fresh, diverse way of doing things and a new perspective.”

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