Money20/20 has become one of the most important gatherings in global fintech — bringing together the leaders, innovators, and institutions shaping the future of financial services.In this episode of the London Fintech Podcast, Tony Clark speaks with Oliver Smith, Head of Content for Europe at Money20/20 Europe 2026, to explore what’s coming at this year’s flagship event.They discuss the scale and ambition of Money20/20 Europe, the key themes driving the agenda, and how the conference continues to reflect — and shape — the evolution of the fintech ecosystem. At the heart of the event are four major pillars: AI, rebundling of financial services, the evolving tech stack, and regulation. Oliver shares how these themes come together across stages, speakers, and sessions — and what attendees should focus on to get the most value from the experience.The conversation also looks ahead to emerging trends, including agentic finance, the growing role of AI across financial services, and how blockchain and digital assets continue to evolve within institutional markets.Whether you’re attending Money20/20 or following the direction of fintech more broadly, this episode is a useful guide to the ideas and conversations shaping the industry right now.📌 Topics covered• What to expect from Money20/20 Europe 2026• The four key themes: AI, rebundling, tech stack, and regulation• How to navigate the conference and maximise your time• The rise of agentic finance and AI-driven services• Blockchain, digital assets, and evolving market infrastructure• Why Money20/20 remains a central hub for fintech innovation🔗 Learn more:Tony Clark: https://www.linkedin.com/in/tclark100/Oliver Smith: https://www.linkedin.com/in/oliversmitheu/Money 20/20 Europe: https://europe.money2020.com/NextWave Consulting: www.nxwave.comThe MoneyPot Podcast: https://open.spotify.com/show/57KYwfMgZsVBIaxHcOCzebCareless People by Sarah Wynn-Williams: https://www.amazon.co.uk/Careless-People-explosive-memoir-doesnt/dp/1035065924Go Beyond the Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=null#FinTech #Money2020 #AI #Blockchain #RegTech #FinCrime #DigitalAssets #FinancialServices #Innovation #LondonFintechPodcast

Blockchain has been discussed for over a decade, but its real impact in institutional finance is only now beginning to take shape.In this episode of the London Fintech Podcast, Tony Clark speaks with Yuval Rooz, CEO of Digital Asset and Co-Founder of Canton, about how blockchain infrastructure is evolving to meet the needs of global capital markets.At the centre of the conversation is the Canton Network: a public, privacy-enabled blockchain designed to bring blockchain rails to financial markets at scale. Yuval explains how Canton is addressing one of the biggest barriers to institutional blockchain adoption: privacy and control over sensitive financial data, while still enabling interoperability across markets and participants.They discuss why traditional financial infrastructure struggles with fragmented data and settlement delays, how blockchain can confirm the validity of data across multiple institutions, and why tokenisation, stablecoins, and programmable assets could transform how markets operate.The conversation also explores the growing intersection between blockchain and AI, and why financial infrastructure needs to be prepared for a future where automated agents transact and make decisions at scale.📌 Topics covered• The 11-year journey building institutional blockchain infrastructure• Why privacy is critical for blockchain adoption in capital markets• How the Canton Network enables interoperability across financial institutions• The role of stablecoins in reducing settlement risk• Tokenisation and the representation of real-world assets on blockchain• Preparing financial systems for AI-driven transaction volumes• The future of crypto markets and financial infrastructure🔗 Learn more Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comYuval Rooz: https://www.linkedin.com/in/yuvalrooz/Digital Asset: https://www.digitalasset.com/Canton Network: https://www.canton.network/NextWave Consulting: www.nxwave.comWhat I Talk About When I Talk About Running by Haruki Murakami: https://www.amazon.co.uk/What-Talk-About-When-Running/Go Beyond the Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=null#Blockchain #InstitutionalFinance #Toenization #Stablecoins #DigitalAssets #AI #FinancialInfrastructure #FinTech #CryptoInnovation #LondonFintechPodcast

As AI accelerates across financial services, the real competitive advantage is no longer just analytics — it’s decision intelligence.In this episode of the London Fintech Podcast, Tony Clark is joined by Jamie Hutton, Chief Technology Officer of Quantexa, to explore how organisations are moving beyond dashboards and manual analysis toward context-driven, automated decision-making.Now celebrating its 10th anniversary, Quantexa is one of the UK’s standout post-pandemic unicorns, scaling globally with over $100m+ ARR and recognised as a leader in the Decision Intelligence category by Gartner.Jamie explains how Quantexa pioneered entity resolution and graph analytics to help organisations connect fragmented data, resolve real-world entities, and uncover patterns across risk, fraud, compliance, and growth. The conversation dives into why data quality and context are foundational for AI, how decision intelligence differs from traditional BI, and why siloed data continues to hold enterprises back.They also discuss Quantexa’s journey from a kitchen-table startup to working with 30 of the world’s top 50 banks, the trade-offs of building highly extensible enterprise software, and how the company is evolving its platform for faster deployment, lower TCO, and AI-native use cases — including agentic AI.If you’re thinking about AI adoption, enterprise data strategy, or how to turn information into action at scale, this episode is a must-watch.📌 Topics covered• What decision intelligence really means in the AI era• Entity resolution, graph analytics, and connecting siloed data• Why AI fails without trusted, contextual data• Fighting financial crime — and finding growth opportunities• Building enterprise-grade platforms from day one• From customisation to productisation at scale• Agentic AI, unstructured data, and what’s next for Quantexa🔗 Learn moreTony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comJamie Hutton: https://uk.linkedin.com/in/huttonjamieCheck out Quantexa’s website: https://www.quantexa.com/?utm_medium=partners&utm_source=london_fintech_podcastAccess a complimentary copy of the Gartner® Magic Quadrant™ for Decision Intelligence Platforms report: https://www.quantexa.com/resources/2026-gartner-magic-quadrant-for-decision-intelligence-platforms/?utm_medium=partners&utm_source=london_fintech_podcast&utm_campaign=701Nz00000jrM0YCheck out Quantexa's YouTube channel: https://www.youtube.com/@QuantexaNextWave Consulting: www.nxwave.comGo Beyond the Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=nullThe Anxious Generation: https://www.amazon.co.uk/Anxious-Generation-Rewiring-Childhood-Epidemic-ebook/dp/B0CGWS3JQ6

While much of the financial world is racing to keep up with AI and the rapid institutionalisation of blockchain and crypto, another powerful technology has been quietly advancing in the background for decades — quantum computing.In this episode of the London Fintech Podcast, Tony Clark is joined by Christopher Jensen, Portfolio Manager & Director of Digital Asset Research at Franklin Templeton, to explore what quantum computing really is — and why it could have profound implications for digital assets, cryptography, and financial infrastructure.Franklin Templeton, one of the world’s most innovative asset managers with over $1 trillion in AUM, recently published a paper titled Digital Asset Security in the Quantum Era. Chris joins the podcast to unpack the research, explain the real risks quantum computing poses to today’s encryption standards, and outline how the industry can prepare for a post-quantum world.They discuss why Bitcoin’s quantum risk is concentrated in legacy address formats, how crypto-agility will create a new trust premium for assets and custodians, and why blockchain governance — not panic — is the key to navigating this transition. The conversation also explores smart contracts, post-quantum upgrades, and why the biggest systemic risk may be “harvest now, decrypt later.”The episode looks at how major financial institutions are already testing quantum-resistant approaches, why this shift may be comparable to Y2K or IPv6, and how the intersection of AI and quantum computing could accelerate change across financial markets faster than many expect.Whether you’re an investor, technologist, or finance leader, this episode offers a grounded, practical view of one of the most important — and least understood — risks facing digital finance.📌 Topics covered• What quantum computing is and why it matters for finance• How quantum machines threaten current cryptography• Bitcoin’s exposure via legacy address formats• Post-quantum cryptography and crypto-agility• Blockchain governance and upgrade coordination• Smart contracts and post-quantum migration• “Harvest now, decrypt later” risks• Institutional readiness and custody implications• AI, quantum, and the future of financial infrastructure• What investors should consider over the next 5–15 years🔗 Learn moreTony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comChristopher Jensen: https://www.linkedin.com/in/christopherjensen2001/Franklin Templeton: https://www.linkedin.com/company/franklin-templeton/Franklin Templeton Digital Assets Insightshttps://www.franklintempleton.com/insights/disruptive-technology/digital-assetsFranklin Templeton Digital Assets on Xhttps://x.com/FTDA_USDigital Asset Security in the Quantum Era: https://franklintempletonprod.widen.net/s/zqcgfsrm8f/insight-article-digital-asset-security-in-the-quantum-era-dasqe-fl

🎙️ In this episode of the London Fintech Podcast, Tony Clark speaks with Søren Westh Lonning, CFO of Pleo, about how finance leaders are navigating an era of growing complexity, higher expectations, and mounting pressure — and why too many organisations are still making decisions based on hindsight rather than foresight.Søren shares Pleo’s growth journey, scaling from €65m to €165m in ARR in just three years, and explains how the company has evolved from a simple expense management tool into a comprehensive spend and cash management platform designed to support real-time, confident decision-making across finance teams.Drawing on insights from Pleo’s Decision-Making Report, the conversation explores a stark reality facing finance leaders today: 58% of financial decision-makers — and 65% of CFOs — are making more high-level decisions than ever before, yet confidence remains low. Nearly half have experienced decision-freeze, and 41% of decisions are made without full confidence, often due to fragmented systems and a lack of contextual, real-time data.Tony and Søren unpack what’s driving this — from rising geopolitical and economic pressures to greater business ambition — and discuss how modern finance teams can rethink strategy to stay effective. Central to this shift is enabling teams to move from hindsight to foresight, using real-time visibility, analytics, automation, and AI to guide decisions before opportunities are missed.The episode also dives into how Pleo helps finance teams build trust across the business, forge stronger data-driven partnerships, invest more intelligently, and ensure cash works harder through smarter optimisation. Søren reflects on maintaining culture during rapid scale, the role of strategic partnerships, and practical advice for FinTech founders looking to achieve lasting product-market fit.📌 Topics Covered• Why CFOs are under more pressure — and less confident — than ever• Insights from Pleo’s Decision-Making Report• The cost of decision-freeze and fragmented financial data• Moving finance teams from hindsight to foresight• Real-time visibility, analytics, and AI in modern finance• Scaling from expense management to full spend & cash management• Maintaining culture and trust during rapid growth• Strategic partnerships and the future roadmap for Pleo🔗 Learn More:Tony Clark: linkedin.com/in/tclark100The London Fintech Podcast: https://londonfintechpodcast.comPleo: https://www.pleo.io/enSøren Westh Lonning: https://www.linkedin.com/in/s%C3%B8ren-westh-lonning/Pleo Decision-Making Report 2025: https://content.pleo.io/en/decisions-report-2025Explore Pleo Embedded Finance: https://embedded.pleo.io/news/pleo-embedded-official-launchPleo Cash Management Suite: https://www.pleo.io/en/cash-managementNextWave Consulting: https://www.nxwave.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=nullOn My Watch: Leading NATO in a Time of War: https://www.amazon.co.uk/My-Watch-Leading-NATO-Time/dp/0008708746How Big Things Get Done: https://www.amazon.co.uk/How-Big-Things-Get-Done/dp/1035018950/

In this episode of the London Fintech Podcast, Tony Clark sits down with Susanne Chishti to explore the growing pressure on CFOs operating in today’s increasingly complex financial environment, from geopolitical shocks to shrinking margins and fragmented data systems.This conversation is created in collaboration with Pleo, and highlights their work in modernising the CFO’s office through real-time visibility, automated treasury workflows, and embedded finance capabilities that unify spend across the business.Tony and Susanne dive deep into findings from Pleo’s Decision-Making Report 2025, including:💡 Over 50% of UK decision-makers experience “decision freeze” due to a lack of real-time data💡 Finance teams spend 26+ hours per week on manual treasury tasks💡 Many organisations still make decisions based on “feeling” rather than evidence💡 Fragmented systems slow down business agility and innovationThey also unpack how tools such as Pleo Embedded (their new embedded finance solution) and the Cash Management Suite are helping CFOs automate treasury operations, consolidate financial data, and accelerate decision-making with greater clarity and control.Whether you're a CFO, operator, finance leader, or founder, this episode offers practical insights into the future of financial decision-making — and why integrated tooling is now essential rather than optional.🔗 Learn More:Tony Clark: linkedin.com/in/tclark100The London Fintech Podcast: https://londonfintechpodcast.comPleo: https://www.pleo.io/enSusanne Chishti: https://www.linkedin.com/in/susannechishti/Pleo Decision-Making Report 2025: https://content.pleo.io/en/decisions-report-2025Explore Pleo Embedded Finance: https://embedded.pleo.io/news/pleo-embedded-official-launchPleo Cash Management Suite: https://www.pleo.io/en/cash-managementNextWave Consulting: https://www.nxwave.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=null"From Good to Great" by Jim Collins: https://www.amazon.co.uk/Good-Great-Companies-published-HarperBusiness/dp/B00E327SVA/ref=asc_df_B00E327SVA?mcid=ff85ddadb41e3021bd513644d3a153d5&tag=googshopuk-21&linkCode=df0&hvadid=781457465012&hvpos=&hvnetw=g&hvrand=6936681774339943281&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9045984&hvtargid=pla-2444989498790&psc=1&hvocijid=6936681774339943281-B00E327SVA-&hvexpln=0&gad_source=1

🎙️ In this episode of the London Fintech Podcast, Tony Clark sits down with Sid Powell, CEO of Maple Finance, to explore the rapid rise of onchain finance and what it means for the future of institutional lending, asset management, and global financial markets.Sid explains how Maple is building institutional-grade borrowing and lending natively onchain, taking a different path from traditional finance players that rely on legacy rails. By using stablecoins, Bitcoin, and decentralized finance protocols, Maple is working to make lending faster, cheaper, more transparent, and more efficient—all while maintaining a rigorous focus on risk management.With over $4 billion in assets under management, Maple has emerged as a key player in crypto-native credit markets, partnering with institutions such as Cantor Fitzgerald, Bitwise, family offices, prime brokers, exchanges, trading firms, and Bitcoin miners. Sid outlines how BTC-backed loans, stablecoin-based lending, and DeFi integration are reshaping capital markets at scale.The conversation also dives into the regulatory outlook for the year ahead, including the implications of the GENIUS Act, the likely passage of the Clarity Act, and how improved regulation could unlock new use cases such as Bitcoin-backed mortgages. Sid shares his views on Bitcoin’s long-term trajectory, the current macro environment, and why stablecoin adoption is accelerating through banks, fintechs, and global payment providers.Tony and Sid also discuss Maple’s expansion across Ethereum, Solana, Arbitrum, and other blockchains, the role of products like syrupUSDC in creating liquid, yield-bearing assets for DeFi, and how AI is increasingly being used to improve risk management in onchain asset management.📌 Topics covered:•The explosive growth of onchain finance• Institutional crypto lending vs traditional financial rails• Stablecoins, BTC-backed loans, and DeFi credit markets• Maple’s $4B+ AUM growth and institutional partnerships• Risk management in crypto-native lending• GENIUS Act, Clarity Act, and regulatory clarity• Cross-chain DeFi infrastructure (Ethereum, Solana, Arbitrum)• Yield-bearing stablecoins and onchain composability• Bitcoin market outlook and macro trends• The future of AI in onchain asset managementWhether you’re tracking institutional crypto adoption, stablecoin innovation, or the future of lending on blockchain rails, this episode offers a deep dive into where digital finance is heading next.🔗Learn more:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.com/Sid Powell: https://www.linkedin.com/in/sidneypowell/Maple Finance: https://maple.finance/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3DAugustus: The Life of Rome's First Emperor: https://www.amazon.co.uk/Augustus-Life-Romes-First-Emperor/dp/0812970586/ref=asc_df_0812970586?mcid=33b3cd8f94e23fceb665d3018d99fb8d&th=1&psc=1&tag=googshopuk-21&linkCode=df0&hvadid=696450770399&hvpos=&hvnetw=g&hvrand=15772828612049184534&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9045984&hvtargid=pla-417307122658&psc=1&hvocijid=15772828612049184534-0812970586-&hvexpln=0&gad_source=1Founders Podcast: https://open.spotify.com/show/7txiovdzPARhjm18NwMUYj?trackId=21yPPGH9UO7nu1Vc0P6Y1l

🎙️ In this episode, Tony sits down with Richard Squire, founder of My Finance Future, to explore how his FinTech startup is reshaping the way people plan their financial lives—not just for today, but for the decades ahead.Richard shares his journey from a successful career in management consulting to building a platform designed to help individuals truly understand their long-term financial position. He explains why so many people begin planning too late, and how My Finance Future aims to solve this by giving users a clear, comprehensive view of their financial future before they make life-changing decisions.They discuss the complexities behind building a complete lifetime financial planning tool, the importance of earning user trust in financial services, and the collaborative effort required to bring a robust MVP to market. Richard also dives into the strategies behind reaching the right audience—from social media to influencer partnerships—and what it takes to stand out in a crowded FinTech landscape.Looking ahead, Tony and Richard explore the next phase for My Finance Future, including new capabilities, expanded reach, and the broader mission of empowering individuals to take control of their financial journey.📌 Topics Covered• Richard Squire’s transition from consulting to FinTech• Why lifetime financial planning matters• Understanding your financial situation before major decisions• Why many people start planning too late• Building a comprehensive, all-in-one financial plan• Trust as a cornerstone of financial services• Collaboration & teamwork in early-stage startups• Marketing via social media and influencers• My Finance Future’s MVP and long-term roadmap• Expanding the platform’s capabilities & audience🔗 Learn MoreTony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.com/Richard Squire: https://www.linkedin.com/in/richardsquire/MyFinanceFuture: https://myfinancefuture.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3D

🎙️ In this episode of the London Fintech Podcast, Tony Clark sits down with Dalal Buhejji to explore how Bahrain is fast becoming one of the most dynamic fintech hubs in the Middle East.Dalal unpacks Bahrain’s rich legacy in financial services, now the largest contributor to its economy, surpassing oil and gas. She shares how the Bahrain Economic Development Board (EDB) supports global and local fintechs entering the market—providing investment facilitation, guidance, and an environment designed for innovation.They discuss Bahrain’s unique regulatory model featuring a single financial regulator, which simplifies market entry and has been instrumental in developing a thriving fintech ecosystem. Dalal also highlights the success of the country’s regulatory sandbox, which has produced major fintech players and spurred new models in payments, digital banking, and beyond.A core focus of Bahrain’s strategy is talent development, with initiatives to upskill Bahrainis in technology and financial services. Combined with its strategic location, the country offers unrivalled access to the GCC and wider MENA region—positioning Bahrain as a launchpad for global expansion.Looking ahead, Dalal and Tony explore emerging trends shaping Bahrain’s financial future, from AI and digital banking to deeper collaboration across the region.📌 Topics Covered• Bahrain’s evolution into a fintech hub• How the Bahrain EDB supports global fintechs• Single-regulator advantage• Success of Bahrain’s regulatory sandbox• Local talent development & upskilling• Strategic access to GCC & MENA markets• Economic diversification beyond oil• Innovation in payments & digital banking• AI adoption in financial services• What’s next for Bahrain’s fintech ecosystem🔗 Learn MoreTony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.com/Dalal Buhejji: https://www.linkedin.com/in/dbuhejji/Bahrain Economic Development Board (EDB): https://www.bahrainedb.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3D

In this episode of the London Fintech Podcast, Tony Clark sits down with Ben Brophy, Head of Institutional Growth, Europe at the Solana Foundation, to explore how the world’s fastest and most actively used blockchain is shaping the next generation of financial infrastructure.Ben shares his journey from traditional finance—spanning roles at NatWest and Fidelity International—to leading Solana’s institutional adoption across Europe. They dive into how Solana’s high-performance, single-layer network is driving on-chain innovation at scale, and what it means for banks, asset managers, and payment providers now entering the blockchain era.The conversation covers the institutional shift from private to public blockchains, the rise of tokenisation, the integration of on-chain solutions with treasury operations, and Solana’s vision to become “Nasdaq on the Internet.” Ben also unpacks Solana’s collaboration with R3, the regulatory evolution enabling public deployments, and the $2.5 billion DeFi capital request that’s opening new pathways between traditional finance and crypto-native ecosystems.📌 Topics covered:• How Solana became the world’s fastest and most adopted blockchain• The evolution of institutional blockchain adoption• Public vs. private networks—and why the shift matters now• Tokenisation, stablecoins, and yield-generating assets on-chain• The future of programmable compliance and transparent governance• R3 x Solana: bridging TradFi and DeFi• Why we’ve passed the tipping point for on-chain financeTune in to hear how Solana is redefining performance, trust, and innovation in blockchain—and why the next wave of institutional finance will be built on-chain.🔗 Learn More:Tony Clark: linkedin.com/in/tclark100The London Fintech Podcast: https://londonfintechpodcast.comSolana Foundation: https://solana.com/ &. https://x.com/solana?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5EauthorBen Brophy: linkedin.com/in/benbrophyNextWave Consulting: https://www.nxwave.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=nullThe Fourth Turning Is Here by Neil Howe: https://www.amazon.co.uk/Fourth-Turning-Here-Seasons-History/dp/1982173734/ref=sr_1_1?crid=2JGUG3UZKXC5Y&dib=eyJ2IjoiMSJ9.UnHitIUegc8AC05jF0ZWTZMwWgbhD9RWG1GpDfRjCDvGjHj071QN20LucGBJIEps.F2PF1-CK0Cy5SS6yy83q5mKyUWCdfZ4L4QY58AN2GWo&dib_tag=se&keywords=the+Fourth+Turning+Is+Here+by+Neil+Howe&qid=1760691367&sprefix=the+fourth+turning+is+here+by+neil+howe%2Caps%2C150&sr=8-1

🎙️ In this episode of the London Fintech Podcast, Tony Clark sits down with Andy MacMillan, CEO of Alteryx, to explore how data, automation, and AI are reshaping the future of financial services.With a background in enterprise software and data management, Andy shares how Alteryx has evolved into a leading platform helping organisations operationalise AI—turning raw data into actionable insight. The conversation dives into what it takes to build trust in AI-driven systems, how financial institutions are integrating automation into both customer-facing and internal workflows, and why predictability and governance are critical to success.They also discuss Alteryx’s role as a data clearinghouse for AI applications, the importance of customer feedback in shaping innovation, and how the real promise of AI lies not in hype—but in solving practical business challenges.📌 Topics covered:• Data as the fuel powering the AI revolution• How Alteryx enables end-to-end AI adoption• Building trust and predictability in AI processes• The evolution of data management in financial services• Using AI to enhance customer experience and operations• The intersection of automation and human expertise• The customer-led approach driving Alteryx’s innovation• The future of AI: from experimentation to operational excellenceTune in to hear how Andy MacMillan and Alteryx are helping financial institutions turn data into their most strategic asset—and what it takes to bring AI to life responsibly.🔗 Learn more:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comAndy MacMillan: https://www.linkedin.com/in/apmacmillan/Alteryx: https://www.alteryx.comGo Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3DOn the Calculation of Volume 1" by Solvej Balle: https://www.amazon.co.uk/Calculation-I-Solvej-Balle/dp/0571383378

🎙️ In this episode of the London Fintech Podcast, Tony Clark speaks with Symmie Swil, UK General Manager of Upvest, about the company’s role in financial technology and investment infrastructure.Symmie shares her career journey, the development of Upvest, and how embedded finance is being integrated into modern financial services. The conversation covers financial literacy, the use of AI in financial operations, and the supportive environment for fintech innovation in the UK.📌 Topics covered:• The growth of embedded finance in financial services• Symmie’s career path and leadership insights• The role of AI in financial operations• Financial literacy and education initiatives• UK fintech ecosystem and regulatory environment• Building culture and collaboration at Upvest🔗 Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comSymmie Swil: https://www.linkedin.com/in/symmie/Upvest: https://upvest.co/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3DCautionary Tales podcast: https://open.spotify.com/show/2yPlb6ynbhTJbziSIcykQdHidden Brain podcast: https://www.hiddenbrain.org/Crossing the Chasm (book): https://www.amazon.co.uk/Crossing-Chasm-3rd-Disruptive-Mainstream/dp/0062292986

🎙️ In this episode of the London Fintech Podcast, Tony Clark speaks with Dr. Paul Dongha, Head of Responsible AI & AI Strategy at NatWest Group, about the importance of AI governance in financial services.With decades of experience in AI—from his early PhD research on autonomous agents to leading responsible AI initiatives at major banks—Paul brings both technical depth and practical expertise to the conversation. He shares insights from his new book "Governing the Machine", co-authored with leading global AI advisors Ray Eitel-Porter and Miriam Voge, and promoted by figures such as Andrew Ng, Reid Hoffman, and the CEO of IBM.They discuss the nine key risk areas of AI—including bias, privacy, security, and hallucinations—the role of regulation such as the EU AI Act, and why effective governance must be an organisation-wide effort led from the boardroom. Paul also explains how firms can implement practical frameworks, governance forums, and training to safely unlock AI’s potential while staying compliant and ethical."Governing the Machine" will launch on October 23rd and is available for pre-order now: https://amzn.eu/d/9PSBRAtPaul shares perspectives from his career in AI research and strategy, including risk areas such as bias, privacy, security, and hallucinations. The discussion explores regulatory frameworks like the EU AI Act, organisational approaches to responsible AI, and practical tools that firms can use to manage AI adoption effectively.📌 Topics covered:• Why responsible AI is critical for financial services• The nine biggest risk areas for AI adoption• Bias, fairness, and how to mitigate them in practice• Privacy, security, and the risks of prompt hacking• Hallucinations and why they can’t be “designed away”• Regulation: EU AI Act, NIST framework, and global standards• The rise of Chief AI Officers and responsible AI roles• How to build governance forums, ethics boards, and AI inventories• Tools, platforms, and GRC systems for managing AI at scale• Key takeaways from Governing the Machine📌 Key takeaway: AI governance isn’t about slowing innovation—it’s about building the guardrails that make responsible, scalable innovation possible.------------------------------------------------------------------------------------📚 I would be delighted to welcome you to one of our launch events, where you can purchase a signed copy of the book. 7.30pm on Tuesday, 21st October in Jesus College, Cambridge, CB5 8BL. RSVP: https://bit.ly/3VD65EV (select “Reserved tickets” – you are a VIP!)You will need a ticket to gain entry, so you must RSVP. OR 6pm on Wednesday, 22nd October at NatWest Bank, 250 Bishopsgate, London, EC2M 4AA.RSVP: https://bit.ly/3IuBiaqYou will need a QR code to gain entry, so you must RSVP.------------------------------------------------------------------------------------🔗 Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.com/podcasts/Paul Dongha: https://www.linkedin.com/in/paul-dongha/Governing the Machine (pre-order link): https://amzn.eu/d/9PSBRAtNextWave Consulting: https://www.nxwave.com/Coming Up Short: A Memoir of My America: https://www.amazon.co.uk/Coming-Up-Short-Memoir-America/dp/0593803280Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?c=cG9zdDo5OTI5NzY%3D&nav=aHViX3BhZ2U6MTA%3D&s=null

🎙️ In this episode of the London Fintech Podcast, Tony Clark speaks with Mike Brennan of Finch Capital and AI innovator Parsa Ghaffari about the evolution of fintech in Europe and the impact of AI on financial services.They discuss the development of new fintech hubs, the integration of AI across business functions, and how regulation and technology are shaping operating models.The conversation also explores the concept of “peak engineering” and what it could mean for the next phase of digital transformation in finance.📌 Topics covered:The changing fintech landscape in Europe AI applications in financial servicesEmerging fintech hubs across the regionRegulation and its role in shaping adoptionThe idea of “peak engineering” in technologyAI integration into business workflowsIndustry perspectives on digital transformation🔗 Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comParsa Ghaffari: https://www.linkedin.com/in/parsa-ghaffari-a7300a24/Mike Brennan: https://www.linkedin.com/in/mikebrennan/Finch Capital: https://finchcapital.com/NextWave Consulting: https://www.nxwave.com/The State of European Fintech: https://finchcapital.com/research-reports/State_of_European_Fintech_2025_All.pdGo Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3D

🎙️ In this episode of the London Fintech Podcast, Tony Clark speaks with Scarlett Sieber, Chief Strategy & Growth Officer at Money20/20, about the role of global industry gatherings in financial services.Scarlett discusses her career journey from banking innovation to leading strategy at Money20/20, and shares perspectives on collaboration across the sector. The conversation covers the return of in-person events, trends in AI and fraud prevention, blockchain use cases, and the influence of technology companies on finance.📌 Topics covered:• Industry collaboration through fintech conferences• Scarlett’s background in banking and fintech innovation• In-person networking and events post-COVID• AI, fraud detection, and operational priorities• Blockchain adoption in financial services• The role of large technology firms in finance• Global fintech trends and regional perspectives🔗 Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comScarlett Sieber: https://www.linkedin.com/in/scarlettsieber/Money20/20: https://www.money2020.com/NextWave Consulting: https://www.nxwave.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3DTaking Stock: https://tv.nyse.com/taking-stock-2

🎙️ In this episode of the London Fintech Podcast, Tony Clark sits down with Rob Stone, General Manager of Intelligent Automation and Analytics at SS&C, to explore how AI, automation, and digital assets are reshaping the future of asset servicing and investment management.Rob shares his journey with SS&C—from joining in 2010 when the firm was valued at $1 billion, to helping scale it into a $20+ billion leader at the intersection of technology and operations. He explains how SS&C’s unique dual role as both a technology provider and an operator creates a powerful competitive advantage in financial services.They also dive into the evolution of asset servicing from manual workflows to digitally integrated operations, the governance challenges of deploying AI at scale, and why blockchain and digital assets will be central to the industry’s next chapter.📌 Topics covered:• Rob Stone’s journey and SS&C’s remarkable growth• The evolution of asset servicing in a digital-first world• How AI and automation are driving efficiency and innovation• Why SS&C’s dual model creates a strong competitive moat• Governance, security, and responsible AI adoption• The role of blockchain and digital assets in investment firms• How adaptability will define the winners of the next decadeTune in to hear how SS&C is using technology not only to serve clients, but to reinvent its own operations—and what this means for the future of financial services.🔗 Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comSS&C Technologies: https://www.ssctech.comSS&C Blue Prism: https://www.blueprism.com/NextWave Consulting: https://www.nxwave.com/Go Beyond The Podcast: https://resources.nxwave.com/hub/london-fintech-podcast?nav=aHViX3BhZ2U6NTY%3D&c=cG9zdDo5OTMzNTQ%3D#FinTech #Automation #AIinFinance #DigitalAssets #Blockchain #AssetServicing #InvestmentInnovation #FinancialServices #LondonFintechPodcast #SSCTech

In this episode of the London Fintech Podcast, Tony Clark sits down with Sandy Kaul, Executive Vice President & Head of Innovation at Franklin Templeton, to explore how tokenisation, smart contracts, and wallet-based ecosystems are set to redefine the future of finance.Sandy shares her extensive background at the intersection of finance and technology, explaining how the industry is moving from traditional account-based systems to decentralised, wallet-driven models. They dive into the transformative power of tokenisation for equities, bonds, and other financial instruments, as well as the potential of smart contracts to automate and streamline transactions.The conversation also unpacks the regulatory landscape, the growing mainstream adoption of digital assets, and why investment firms must act now to adapt. From tokenised funds to personalised portfolio benefits, Sandy outlines a vision of finance that is more accessible, flexible, and innovative than ever before. Topics covered:• The shift from account-based to wallet-based systems• Why tokenisation will revolutionise traditional finance• Smart contracts and the automation of financial markets• How decentralised finance can democratise investment access• Institutional adoption of digital assets• The regulatory path for tokenised instruments• Future trends in portfolio management and investor personalisation Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comSandy Kaul: https://www.linkedin.com/in/sandy-kaul/Book –The Fourth Turning: What the Cycles of History Tell Us About America's Next Rendezvous with Destiny: https://www.amazon.co.uk/Fourth-Turning-American-Prophecy/dp/0767900464#Tokenisation #DigitalAssets #SmartContracts #WalletBasedSystems #FinTech #DeFi #Blockchain #InvestmentInnovation #FranklinTempleton #FinancialServices #LondonFintechPodcas

️In this episode of the London Fintech Podcast, Tony Clark sits down with Robb Wilson—pioneer in AI, experience design expert, and author—to unpack the rapid evolution of artificial intelligence and what it really means for the future of financial services.Robb shares why simulation is the next big leap in AI, how outbound and agentic AI will redefine customer interactions, and why the industry needs to stop bolting AI onto outdated systems. Drawing from years of experience building platforms for smarter machines, Robb argues that success with AI requires rethinking objectives, embracing foundational design, and preparing for a future where machines not only support—but act.They also explore the risks of AI overload, the need for shared knowledge infrastructure, and why clarity and control must underpin innovation. Topics covered:• Why AI is the defining force in financial services• The rise of agentic AI and outbound automation• Why simulation will reshape AI development• The hidden risks of bolt-on AI solutions• How companies can build foundational AI infrastructure• The challenge of integrating AI into legacy business structures• Why objectives—not just tools—must evolve• Building platforms for intelligent, autonomous systems• The future of human-AI collaboration in financeTune in to hear how Robb Wilson is helping reshape AI thinking across industries—and what it takes to lead in the age of intelligent systems. Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comRobb Wilson: https://www.linkedin.com/in/invisiblemachines/UX Magazine: https://uxmag.com/OneReach.ai: https://onereach.ai/Dopamine Nation: https://www.amazon.co.uk/Dopamine-Nation-Finding-Balance-Indulgence/dp/B09GYNV92DAge of Invisible Machines: A Guide to Orchestrating AI Agents and Making Organizations More Self-Driving (Revised and Updated Revised and Updated 2nd Edition): https://a.co/d/8r0Ju8RThe Invisible Machines podcast: https://uxmag.com/podcastsVerizon Business Assistant: https://www.verizon.com/business/solutions/ai-business-assistant/#AIinFinance #AgenticAI #ConversationalAI #OutboundAI #DigitalTransformation #SimulationTech #FinTech #Automation #PlatformThinking #LondonFintechPodcast #AILeadership #FutureOfWork

In this episode of the London Fintech Podcast, Tony Clark sits down with Staci Warden, CEO of the Algorand Foundation, to explore the future of crypto, stablecoins, and the role of blockchain in building more inclusive, efficient financial systems.Staci shares her journey from Wall Street and the U.S. Treasury to leading one of the most innovative blockchain foundations in the world. The conversation dives deep into how stablecoins work, what makes them trustworthy, and why Algorand’s energy-efficient, secure platform is well-positioned to power the next generation of decentralised finance.They also explore real-world use cases for blockchain—from programmable money to disaster relief—and discuss how stablecoins could reshape traditional finance, enable financial inclusion, and unlock new forms of value transfer.Topics covered:• Staci Warden’s path from JP Morgan to the Algorand Foundation• What makes stablecoins stable—and how they differ from other crypto• Algorand’s tech: instant finality, low fees, energy efficiency• How blockchain is helping drive transparency and accountability• The shift from hype to utility in the crypto space• Financial inclusion and identity in the digital era• The rise of programmable money and automated transactions• Integrating blockchain into traditional finance• Educating traditional finance professionals on Web3• Why the future may favor yield-bearing digital assets over fiat-backed stablecoinsTune in to hear how Algorand is building the foundation for a fairer, faster financial future—and what it takes to lead responsibly in the crypto era.Learn More:Go Beyond The Podcast for exclusive insights and resources (free of charge): Bit.ly/LondonFintechPodcastThe London Fintech Podcast: https://londonfintechpodcast.comTony Clark: https://www.linkedin.com/in/tclark100/Staci Warden: https://www.linkedin.com/in/staci-warden-b15268b9/ & https://x.com/StaciW_DCAlgorand Foundation: https://www.algorand.foundation/Read Write Own: Building the Next Era of the Internet: https://www.amazon.co.uk/Read-Write-Own-Building-Internet/dp/1529925623

In this special AI episode of the London Fintech Podcast, Tony Clark explores the transformative impact of AI in financial services—from practical applications to regulatory challenges, and everything in between.As AI adoption accelerates, Tony goes through a number of key insights covering what it takes to implement AI responsibly, how firms are moving from narrow to generative and Agentic AI models, and why data quality, ROI, and explainability are critical for success.We discuss real-world use cases, how leading institutions are embedding AI into their operations, and why the future of work will be defined by human-AI collaboration. Whether you're in tech, risk, strategy, or ops—this episode offers tangible insights to help you navigate the AI shift.Topics Covered:• The rise of generative and agentic AI in finance• AI for fraud detection, customer service & operational efficiency• Measuring ROI on AI projects• Navigating regulation, compliance & governance• AI as a coworker, not just a tool• Building AI literacy across financial institutions• Investing in data quality and explainable AI• Use cases for synthetic teams and autonomous agents• The future of finance: collaboration between people and machinesTune in to learn how AI is reshaping the financial sector—and what it takes to lead the change responsibly.

In this episode of the London Fintech Podcast, Tony Clark sits down with Elizabeth Rossiello, CEO and founder of AZA Finance, to explore how she's reshaping cross-border payments and foreign exchange across frontier markets in Africa and beyond.Elizabeth shares her journey from Wall Street to Nairobi, her groundbreaking work with BitPesa in launching digital currencies, and how AZA Finance is solving real-world problems through infrastructure, innovation, and deep local expertise. The conversation highlights the challenges of building a fintech across diverse and volatile markets, and the importance of representation, resilience, and culture in leading a global financial company.They also discuss AZA’s recent partnership with Dlocal, the growing role of stablecoins and AI in payments, and the importance of sticking to your values while building something that lasts.Topics covered:• From New York to Nairobi: Elizabeth’s founding story• Building BitPesa—the world’s first digital FX exchange• The evolution of mobile money and fintech in Africa• Why infrastructure, not hype, is the future of fintech• AZA Finance’s cross-border payments and FX strategy• How to lead in volatile frontier markets• The importance of diversity and representation in fintech• Culture as the engine of scale• The rise of stablecoins, 24/7 settlement & AI innovation• Lessons for female founders and fintech entrepreneurs• Why everything in business is cyclical—and persistence winsTune in to hear how AZA Finance is redefining payments in some of the world’s most dynamic markets—and what it really takes to lead with purpose and vision.

In this episode of the London Fintech Podcast, Tony Clark sits down with Mia Drennan, founder of Global Loan Agency Services (GLAS), to explore her remarkable entrepreneurial journey—from launching a business with just £6,000 to building a global company with over 400 employees managing $500 billion in assets.Mia shares what it takes to succeed as a female founder in a male-dominated fintech space, the evolution of loan agency services, and how innovation and digital transformation are driving the next chapter for GLAS. She reflects on the importance of resilience, building a strong network, and advocating for diversity in the investment community.The conversation is packed with insights on scaling a niche financial services firm, the power of a digital mindset, and the role of leadership in shaping inclusive and high-performing cultures.Topics Covered:• Adopting a dog from Antigua• Starting GLAS with £6,000 and scaling to £100M+ turnover• The importance of innovation in loan agency services• Why only 12% of fintech founders are women—and what needs to change• How GLAS grew to 400+ employees across 10 countries• Embracing a digital mindset to lead transformation• Lessons in risk-taking, resilience, and fearless leadership• Diversity as a growth driver in finance• Building a support network for female founders• What’s next for GLAS: global growth and digital accelerationTune in to hear Mia's inspiring story and her vision for the future of fintech.Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comMia Drennan: https://www.linkedin.com/in/miadrennan/GLAS: https://glas.agency/Great CEOs are lazy: How exceptional CEOs do more in less time: https://www.amazon.co.uk/Great-Ceos-A...The Rest is Politics: https://www.youtube.com/@restispolitics#FinTech #FemaleFounders #Entrepreneurship #Innovation #Leadership #DiversityInFinance #LoanAgency #DigitalTransformation #WomenInBusiness #LondonFintechPodcast

In this episode of the London Fintech Podcast, Tony Clark sits down with Pete Wickes, General Manager for Global Enterprise at Worldpay, to unpack the fast-evolving landscape of payments and the innovations redefining how money moves around the world.Pete shares insights from his extensive experience leading Worldpay’s global operations, exploring the rapid acceleration of digital payment methods, the rise of wallets and account-to-account transactions, and why understanding consumer behaviour is crucial for innovation. The conversation highlights Worldpay’s role in powering billions of transactions globally and how merchants today have more choice than ever in how they accept payments.They discuss the broader payments ecosystem—from acquirers to PSPs—and what the future might look like as digital currencies, embedded finance, and alternative payment rails continue to gain momentum. Pete also reflects on the importance of staying close to the market through industry events and customer conversations.Topics Covered:• Being an avid football fan • How the global payments ecosystem is evolving• The role of WorldPay in powering billions of transactions• Why merchants now have more options than ever• The rise of account-to-account payments and digital wallets• Cash isn’t dead—but it’s changing• Key innovations shaping the next phase of payments• Why consumer preference should drive product design• What’s next: digital currencies, real-time payments, and embedded financeWhether you're a fintech innovator, payments professional, or just curious about where the future of transactions is headed, this episode offers a front-row seat to the transformation underway in the global payments space.

In this episode of the London Fintech Podcast, Tony Clark sits down with Andrew McKibben, Head of International Technology and CIO for Global Corporate & Investment Banking at Bank of America, to explore how one of the world’s largest financial institutions is using technology, AI, and innovation to stay ahead in a rapidly changing industry.Andrew shares insights on the strategic role of technology in banking, how AI and machine learning are reshaping financial services, and why customer-centric innovation is key to long-term success. He also discusses the challenges of modernising legacy systems, the importance of fostering a culture of innovation, and how the bank is investing in talent and cutting-edge technology to drive growth.The episode also touches on the importance of patents in fintech, how Bank of America has secured over 7,000 patents, and why continuous investment in technology—over $13 billion annually—is a critical factor in staying competitive. Andrew highlights the mindset required to embrace change and push technological boundaries.Topics Covered:• The importance of curiosity as a career foundation (and starting out with a Sinclair Spectrum...)• Technology as a strategic enabler for the business • Really (really) listening to customers • Spending $13 billion a year on technology, whilst also being agile and innovative across 35 countries • The impact of AI and machine learning on financial services • Bank of America as the most patented Financial Institution in the industry• Why investing in employees is just as important as investing in tech • Always being there to support clients • Getting out of your comfort zone to drive personal and professional growth Tune in to discover how Bank of America is shaping the future of banking through innovation, technology, and a relentless focus on customer needs.Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comAndrew McKibben: https://www.linkedin.com/in/andrew-mckibben-0204691/Bank of America: https://www.bankofamerica.com/Thinking, Fast and Slow: https://www.amazon.co.uk/Thinking-Fast-Slow-Daniel-Kahneman/dp/0141033576The Singularity is Nearer: https://amzn.eu/d/26PBJTA#FinTech #BankingInnovation #ArtificialIntelligence #MachineLearning #CustomerCentric #BankofAmerica #TechLeadership #DigitalTransformation

In this episode of the London Fintech Podcast, Tony Clark is joined by EJ Achtner, former Group Head of Generative AI Capabilities at HSBC, to explore the transformative power of AI in the financial services industry. They delve into what it really takes to implement AI at scale in highly regulated, complex environments and the potential challenges and opportunities this presents.EJ shares insights into leading enterprise-level AI transformation, from the early days of tools like ChatGPT to establishing robust governance frameworks and aligning AI strategies with business goals. The conversation goes beyond the buzzwords, focusing on how AI can drive productivity, improve customer outcomes, and unlock innovation when used responsibly.They discuss the common hurdles that prevent AI projects from progressing beyond the proof of concept, the importance of data quality, and how strong model risk management is crucial for successful AI adoption. EJ also highlights the importance of human oversight in high-stakes environments and the role of cross-functional collaboration in ensuring successful outcomes.Topics Covered:• AI has reached a turning point in accessibility and real-world impact• Successful adoption requires strong governance, clear business goals, and strategic leadership• Generative AI must be treated as an enabler, not a silver bullet• Human oversight and cross-team collaboration are essential for managing risk• Organisations must focus on data quality and upskilling their workforce to keep paceWhether you’re in strategy, tech, or operations, this episode offers valuable, practical insights for embedding AI within your organisation and doing it the right way.

Watch the video version on YouTube: https://www.youtube.com/watch?v=DUTLS4v9N_MIn this episode of the London Fintech Podcast, Tony sits down with Pierre-Antoine Dusoulier, founder of iBanFirst, one of Europe's fastest-growing fintech companies specialising in cross-border payments.They explore the complexities of international transactions, Pierre-Antoine’s entrepreneurial journey, and what makes IBAN First stand out in a competitive market. From funding strategies to the role of technology in financial services, this conversation is packed with valuable insights for fintech founders, investors, and business leaders.The episode also dives into the challenges SMEs face in managing global payments, the importance of transparent pricing, and how investing in talent and technology is essential for long-term success.Topics Covered:• The $200 trillion cross-border payments market opportunity• Self-funding vs. VC vs. PE – choosing the right funding strategy• Why client satisfaction is key to scaling a fintech business• How IBAN First is simplifying payments for 10,000+ SMEs• The power of transparent pricing as a competitive advantage• The role of technology in driving fintech innovation• Carving out a niche in a crowded financial services market• Building a house from scratch in France • The importance of social wealth and the 5 types of wealth Tune in now to discover how IBAN First is revolutionising cross-border payments and what it takes to build a successful fintech startup!Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.com Pierre-Antoine Dusoulier: https://www.linkedin.com/in/pierre-antoine-dusoulier-b1b8202/ IBAN First: https://www.ibanfirst.com The 5 Types of Wealth: https://www.amazon.co.uk/Types-Wealth-Transformative-Guide-Design/dp/0008623201

In this episode of the London Fintech Podcast, Tony sits down with Pierre-Antoine Dusoulier, founder of iBanFirst, one of Europe's fastest-growing fintech companies specialising in cross-border payments.They explore the complexities of international transactions, Pierre-Antoine’s entrepreneurial journey, and what makes IBAN First stand out in a competitive market. From funding strategies to the role of technology in financial services, this conversation is packed with valuable insights for fintech founders, investors, and business leaders.The episode also dives into the challenges SMEs face in managing global payments, the importance of transparent pricing, and how investing in talent and technology is essential for long-term success.Topics Covered:• The $200 trillion cross-border payments market opportunity• Self-funding vs. VC vs. PE – choosing the right funding strategy• Why client satisfaction is key to scaling a fintech business• How IBAN First is simplifying payments for 10,000+ SMEs• The power of transparent pricing as a competitive advantage• The role of technology in driving fintech innovation• Carving out a niche in a crowded financial services market• Building a house from scratch in France • The importance of social wealth and the 5 types of wealth Tune in now to discover how IBAN First is revolutionizing cross-border payments and what it takes to build a successful fintech startup!

In this episode of the London Fintech Podcast, Tony sits down with Shameer Sachdev, an expert in FinTech marketing, to explore the rapidly evolving landscape and the strategies that drive growth in a competitive market.Shameer shares insights on the critical role of creativity in FinTech marketing, the power of effective messaging, and the potential of influencer marketing to enhance brand awareness. The conversation dives into how AI can boost marketing efficiency, the importance of regular customer engagement, and the significance of analytics in measuring success.The episode also touches on the unique challenges of global expansion and the need to leverage new media channels to reach younger audiences. Shameer emphasises the value of "zigging when others zag" to gain a competitive edge in the dynamic FinTech space.Topics Covered:The evolving landscape of FinTech marketingBeing an astronaut in your spare time...The role of creativity in driving effective strategiesUnderstanding customer pain points for better messagingFinding your 'Finfluencer'...Leveraging AI for improved marketing output and efficiencyThe importance of customer feedback in adapting strategiesNavigating global expansion and understanding market dynamicsUtilising new media channels to engage younger audiencesThe fundamental role of analytics in tracking successStanding out by "zigging when others zag"Tune in to discover actionable strategies and key insights to help your FinTech thrive in a rapidly changing market.

Watch the video episode on YouTube: https://www.youtube.com/watch?v=xQt73hUb5Zs&t=756sIn the latest episode of the London Fintech Podcast, we sit down with Ellison Anne Williams, founder and CEO of Enveil, to explore the critical role of data privacy and privacy-enhancing technologies (PETs) in the fight against financial crime.Ellison Anne shares her expertise in homomorphic encryption and secure data collaboration, highlighting how financial institutions can leverage sensitive data while maintaining compliance with evolving regulations. The discussion covers key challenges in data privacy, the importance of operational pilots, and how PETs are reshaping the regulatory landscape.The episode also examines the cultural barriers that hinder data sharing, the UK’s leading role in PET adoption, and how institutions can quantify the return on investment for secure data-sharing initiatives. Ellison Anne offers invaluable insights into entrepreneurship, the power of belief in one’s vision, and the future of privacy in fintech.Topics Covered:• The growing importance of data privacy in financial services• How PETs enable secure cross-border data collaboration• Advancements in homomorphic encryption and secure computation• The role of operational pilots in demonstrating PET effectiveness• Regulatory trends shaping the future of privacy and compliance• Cultural and institutional barriers to effective data sharing• The UK’s pioneering role in privacy-enhancing technology adoption• How financial institutions can measure the ROI of PETs• Why education and awareness are crucial for technology adoption• Lessons in entrepreneurship and leadership from Ellison AnneTune in to discover how cutting-edge privacy technologies are transforming financial services and the fight against financial crime.Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comEllison Anne Williams: https://www.linkedin.com/in/ellison-anne-williams-98102a127/Enveil: https://www.enveil.com/

Watch the video episode on YouTube: https://www.youtube.com/watch?v=TSNW5yhQhq8In this insightful episode of the London Fintech Podcast, we sit down with Alistair Hegge, co-founder of DA Insured, to explore the challenges and opportunities of building a FinTech startup in the rapidly evolving digital asset insurance market.Alistair shares his journey in launching DA Insured, an insure-tech company bridging the gap between Web3 and traditional insurance. He highlights the importance of product validation, automation, and AI in streamlining operations and scaling a fintech business. The conversation delves into the unique challenges of insuring digital assets, the role of partnerships in navigating emerging markets, and the future of tokenisation and regulation in the space.The episode also covers essential startup insights, including strategic decision-making, continuous product refinement, and the importance of understanding client needs. Alistair offers valuable advice for entrepreneurs looking to enter the fintech and insure-tech landscape.Topics Covered:• The journey of building DA Insured and entering the insure-tech space• How digital asset insurance is evolving in the Web3 ecosystem• The importance of product validation for startup success• Using AI to automate the go-to-market for 200 target clients• The role of partnerships in establishing credibility in emerging markets• Continuous iteration and refinement in product development• How client interviews help shape and improve fintech offerings• The current challenges and future potential of insuring digital assets• The necessity of a solid incident response plan for trust and recovery• Trends in tokenisation and regulatory advancements in the digital asset spaceTune in to discover how FinTech innovation and insure-tech solutions are shaping the future of digital assets and financial protection.Learn More:Tony Clark: https://www.linkedin.com/in/tclark100/The London Fintech Podcast: https://londonfintechpodcast.comAlistair Hegge: https://www.linkedin.com/in/alistair-heggie/DA Insured: https://dainsured.com/

Watch the video version on YouTube: https://www.youtube.com/watch?v=QVKwUaypz9QIn this special episode of the London Fintech Podcast, we sit down with Simon Torrance, an expert in AI and business model transformation, to explore the emerging world of Agentic AI and its profound implications for businesses.Simon shares his journey in helping enterprises navigate AI-driven change and the founding of his advisory firm, AI Risk. He explains how Agentic AI is revolutionising industries, from customer service and consulting to operational automation, and why companies must adopt a strategic approach to AI to stay competitive.The episode explores the rise of synthetic workforces, real-world case studies showcasing AI outperforming human agents, and the role of governance and ethics in AI deployment. Simon also highlights the changing economics of business due to AI advancements and provides actionable insights for organisations preparing for the AI-driven future.Topics Covered:• Simon’s career journey and the founding of AI Risk• What is Agentic AI, and why does it matter?• The infinite supply of cost-effective synthetic workers• How AI agents are transforming customer service and business operations• The strategic risks of AI adoption and how to mitigate them• AI’s role in augmenting human capabilities rather than replacing them• The disruption of traditional consulting models through AI automation• Why AI-driven businesses must align with governance and ethical frameworks• The future of AI in business, financial services, and beyondTune in to learn how agentic AI is reshaping the business landscape and how companies can harness its power for growth and innovation.

Watch the video version on YouTube:In this insightful episode of the London Fintech Podcast, we sit down with Francesco Filia, founder of Fasanara Capital, to explore the transformative landscape of private credit and fintech lending.Francesco shares his journey from traditional banking to building Fasanara Capital, a digital finance asset manager redefining lending practices with cutting-edge technology. Drawing on his background in derivatives, Francesco provides a unique perspective on the opportunities and challenges within the private credit market and the importance of aligning the interests of lenders and borrowers.The episode highlights key market trends, including the decentralisation of traditional banking, the rise of institutional interest in uncorrelated returns, and the integration of fintech and blockchain as drivers of future growth. Francesco also reflects on the lessons learned from past failures and offers valuable advice for aspiring fintech entrepreneurs.Topics Covered:• Francesco Filia’s career journey: from traditional banking to fintech innovation• How Fasanara Capital leverages technology to streamline lending processes• The rapid growth and potential of the private credit market• The importance of aligning interests between lenders and borrowers• Why institutional investors are drawn to uncorrelated returns in private credit• Decentralisation as a key trend shaping the lending landscape• The role of fintech and blockchain in the future of lending• Lessons learned from past failures and their value for new ventures• Practical advice for entrepreneurs entering the fintech spaceKey takeaway: Private credit is a dynamic, rapidly evolving market with vast opportunities for innovation, and leveraging technology is essential for shaping its future.If you’re curious about fintech lending, private credit, or how technology is transforming finance, this episode is a must-listen!Learn More:Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/The London Fintech Podcast: https://londonfintechpodcast.nxwave.ukFrancesco Filia: https://www.linkedin.com/in/francesco-filia-aa178b/Fasanara Capital: https://www.fasanara.com/

Watch the video episode on YouTube: https://www.youtube.com/watch?v=FFEJpYz7hgwIn this thought-provoking episode of the London Fintech Podcast, Tony Clark interviews Dan Awrey, a professor of law at Cornell Law School and the author of Beyond Banks. The conversation delves into the intersection of technology, law, and financial institutions, exploring the evolution of banking and payments, the transformative impact of fintech innovations, and the regulatory challenges facing this rapidly evolving landscape.Drawing on his expertise in financial market infrastructure, Dan shares a vision for a new regulatory framework to address the emerging shadow monetary system and shifting consumer expectations in the digital age. He discusses the future of banking and payment systems, advocating for a model that reduces reliance on traditional financial intermediation, grants technology firms access to central bank reserve accounts, and prioritises competition to drive innovation and enhance consumer welfare.The episode offers valuable insights for financial institutions, policymakers, and anyone interested in the future of finance, as Dan outlines practical steps to navigate the challenges and opportunities of a technology-driven financial ecosystem.Topics Covered:•Dan Awrey’s career journey: fintech to law and academia•Key insights from Beyond Banks: the intersection of technology and finance•How fintech innovations are reshaping consumer behaviour and banking models•Challenges for traditional banks in adapting to rapid technological change•The rise of non-bank payment platforms and shifting consumer preferences•The need for a new UK regulatory framework to accommodate financial technologies•The growing shadow monetary system and its implications•Access to central bank reserve accounts as a key to fostering competition•Governance frameworks that balance innovation with public good priorities•Historical perspectives on banking as a guide for future innovationsTune in to discover how technology is redefining finance, what’s next for regulation, and how collaboration between fintechs and traditional institutions can shape a better financial future.

Watch the video episode on YouTube: https://youtu.be/7M7njXxafNgIn this insightful episode of the London Fintech Podcast, we sit down with Nick Rose, CFO of Enable, a pioneering FinTech company revolutionising rebate management. This is an episode for CFOs and deal-makers alike. Whilst rebate management as a concept may not be immediately familiar to all, once we understand that it’s any deal structure where money flows back up the deal chain based on hitting thresholds and targets, we can see that Enable is digitising a vast and often overlooked aspect of the market.There is a great story here of transitioning from traditional finance in an established bricks & mortar business, to a scale-up SAAS company backed by Silicon Valley.Nick shares his inspiring journey from a traditional accounting career at EY and Travis Perkins to becoming a key leader in a fast-growing technology company. Drawing on his wealth of experience, he explains the complexities of rebate systems, the importance of collaboration between trading partners, and how Enable’s innovative software transforms rebate management, reducing the reliance on spreadsheets.The episode explores Enable’s remarkable growth, expanding from just 55 employees to over 650, and the integral role of flexibility and understanding customer needs in the company’s success. Nick also discusses how AI-powered analytics are poised to enhance decision-making for their customers, and he offers invaluable advice for aspiring entrepreneurs looking to make an impact in the FinTech space.Topics Covered:• Nick’s career journey, from EY to Travis Perkins and Enable• How Enable’s software simplifies rebate management• The importance of collaboration in trading relationships• Enable’s growth trajectory and scaling challenges• The role of AI in shaping the future of rebate management• Why understanding customer needs drives product development• The significance of a supportive board in achieving growth• Flexibility as a cornerstone of operational success• Insights into the fast-paced, dynamic FinTech environment• Practical advice for entrepreneurs: solve real customer problemsTune in to learn how FinTech innovation can transform complex processes and create value for businesses everywhere.Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/The London Fintech Podcast: https://londonfintechpodcast.comNick Rose: https://www.linkedin.com/in/nick-rose-81ba318a/Enable: https://www.enable.com/

Watch the video episode on YouTube: https://www.youtube.com/watch?v=1P2WLceLQ8A&t=2sIn this special episode of the London Fintech Podcast, we are privileged to talk with Michael Manelli, the 695th Lord Mayor of London. Michael shares his extraordinary career journey, spanning from his early days in aerospace at Lockheed Martin to becoming a key figure in financial services, fintech, and leading the CIty of London. As a Chartered financial accountant, economist, author, and scientist, Michael discusses the wide-ranging initiatives he championed during his year as Lord Mayor, including mental health research, sustainable finance, Ethical AI, and Space Protection.The episode also dives into the City of London’s unique governance structure and its role as a global fintech hub. Michael provides fascinating insights into the integration of finance, science, and technology, as well as the evolving role of the Lord Mayor in shaping the city’s future.Topics Covered:• Michael’s diverse career and path to becoming Lord Mayor of London• The Lord Mayor's job - Global initiatives, leading the City, pageantry, speeches & costume changes• London’s status as a global fintech hub and its governance model• Initiatives Michael made including mental health, sustainability, Ethical AI & Space Protection• The intersection of finance, science, and technology in the City of London• Innovations in environmental sustainability and emissions trading• The role of the Lord Mayor in global leadership and governance• The future of fintech, ethical AI, and environmental responsibility in the financial sectorTune in for an enlightening conversation on leadership, innovation, and the future of fintech in the heart of London.Learn More:Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/The London Fintech Podcast: https://londonfintechpodcast.nxwave.ukMichael Mainelli: https://www.mainelli.org

Watch the video episode on YouTube: https://www.youtube.com/watch?v=oXa2V8bRufAIn this episode of The London Fintech Podcast, Tony Clark sits down with Duncan Stevens, Founder of Gretel, to discuss the platform’s mission to reconnect individuals with lost financial assets. Duncan shares how his entrepreneurial journey was shaped by his early life experiences and a strong desire to create purpose-driven solutions. He reflects on the challenges of launching Gretel during the COVID-19 pandemic and highlights the platform’s unique approach to tackling the issue of stranded financial assets in the UK. The conversation explores the social and financial impact of Gretel, including its inclusive design and success in reuniting consumers with tens of millions of pounds. Duncan delves into the scalability of Gretel’s two-sided marketplace model and its focus on fostering trust between financial institutions and consumers. He also provides valuable advice for aspiring entrepreneurs, emphasising the importance of purpose over profit and the need for accessible innovation. Topics Covered:• Duncan’s career journey and inspiration for founding Gretel• The problem of stranded financial assets in the UK• Gretel’s design principles: inclusivity, accessibility, and ease of use• How Gretel operates as a two-sided marketplace• Growth potential within the financial sector and future expansion plans• Challenges of launching during the pandemic• The role of purpose-driven entrepreneurship• Predictions for the future of asset reunification and financial inclusion Tune in to learn how Gretel is reshaping the financial landscape by addressing a critical problem and empowering consumers to reconnect with their forgotten assets. Learn More: Duncan Stevens: https://www.linkedin.com/in/duncan-stevens/Gretel: https://www.gretel.co.uk/Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/The London Fintech Podcast: https://londonfintechpodcast.com/

Watch the video version on YouTube:https://www.youtube.com/watch?v=vgYg4tPP48AIn this episode of The London Fintech Podcast, Tony Clark sits down with Aman Ghei to look at the state of Fintech in Europe.Aman shares his journey from M&A banking, working at Accel and Facebook and games development, to building a career in venture capital. Aman reflects on how these experiences have influenced his approach to investing in post-revenue companies across sectors like payments, banking, and insurance technology.The conversation explores the current state of European Fintech, including the growing prominence of local investors, the impact of economic challenges on valuations, and the opportunities emerging in thriving markets like Germany and the Nordics. Aman delves into the complexities of the investment landscape, emphasising the importance of capital efficiency and highlighting trends in mergers and acquisitions.Aman also provides insights into lucrative verticals like payments and the strategic advantage of focusing on the mid-market in Europe. He shares practical advice for navigating the Fintech space, predicting the continued rise of "useful AI" and the shifting dynamics of the market.Topics Covered:Aman’s career journey and Finch Capital’s focus on post-revenue Fintech investmentsFinch Capital's 9th Annual European Fintech ReportKey investment trends across Europe, including country-specific opportunitiesThe evolving role of local investors in driving growthChallenges and opportunities in the current economic cycleMid-market investment focusInsights into thriving sectors like banking, payments, and insurance technology (BNPL, Stablecoins and InsurTech)Complexities of valuation in Fintech and the importance of capital efficiencyThe strength of the European PE sector (Eur 50-500m)The UK as the major European Fintech hubThe "Rule of 40"German private capital focusThe Nordic & Polish fintech sceneBeing commercial from the startPredictions for the future of European Fintech, including M&A activity and market consolidationTune in to gain a deep understanding of the European Fintech ecosystem and learn how investors like Aman Ghei are shaping its future.Learn More:Aman Ghei: https://www.linkedin.com/in/amanghei/Finch Capital: https://www.finchcapital.com/State of European Fintech report: https://finchcapital.com/post/state-of-european-fin-tech-2024Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/The London Fintech Podcast: https://londonfintechpodcast.com/

Watch the video version on YouTube: https://www.youtube.com/watch?v=C1M4ODqxthw&t=973sIn this episode of the London Fintech Podcast, Tony Clark sits down with Qin En Looi, a leading figure in the Asia fintech space, to explore the future of digital assets and the convergence of fintech and blockchain technology. Qin shares his journey from a traditional Singaporean upbringing to becoming a successful entrepreneur and investor, co-founding Glints and leading Saison Capital. He reflects on how these experiences shaped his understanding of fintech’s potential in Southeast Asia. The conversation covers blockchain's evolution, the growing institutional interest in digital assets, and the importance of trust within the crypto space. Qin emphasises the role of tokenisation in the future of finance, particularly in streamlining transactions and overcoming the limitations of traditional systems like SWIFT. They also discuss how fintech innovation is accelerating in Southeast Asia, the challenges of tokenised assets, and the critical importance of choosing the right technology and jurisdiction for protection. Qin also offers practical advice for entrepreneurs in fintech, stressing the importance of learning to sell, building strong distribution networks, and how financial discipline is crucial as the fintech sector undergoes a phase of consolidation. Topics Covered: • Qin's background, dropping out and then completing a Stanford degree in half the time (and achieving top marks!)• The potential of digital assets and blockchain technology in fintech • The rise of tokenisation and its impact on the financial industry • Importance of trust and regulatory clarity for blockchain adoption • Challenges and opportunities for startups in the digital asset space • Insights into fintech’s growth in Southeast Asia and global liquidity trends • The convergence of fintech and blockchain technology • Practical advice for entrepreneurs: mastering sales and distribution • The role of institutional finance in the digital asset ecosystem Learn More:  Chinen Lui: https://www.linkedin.com/in/looiqinen/Saison Capital: https://www.saisoncapital.com/ Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/  NextWave: www.nxwave.com

Watch the video version on YouTube: https://youtu.be/Tk_Qg5Lkiw0In this episode of the London Fintech Podcast, Tony Clark sits down with Jordan Sinclair, President of Robinhood UK, to explore Robinhood’s ambitious global expansion, with a particular focus on its UK market entry.Jordan brings a wealth of experience from his diverse career, and is now leading Robinhood’s mission to democratise finance by offering commission-free trading, fractional shares, and innovative 24/5 trading access to a broader audience.Jordan shares insights into his unique journey and Robinhood’s customer-centric approach, emphasising the importance of financial education, localising products to meet specific needs, and addressing underrepresented groups within the UK market.This conversation delves into Robinhood’s strategy for market disruption, its revenue model, and the role technology—especially AI—plays in enabling scalable growth. They also discuss the UK investing environment and Robinhood’s financial literacy initiatives, along with the company’s approach to diversity and inclusion in shaping its customer base.The episode provides an in-depth look at Robinhood’s approach to sustainable growth and how the company uses its technological edge to stand out in a competitive fintech landscape. Jordan also opens up about maintaining a work-life balance, staying informed, and Robinhood’s plans for future advancements to continue scaling its operations.Topics Covered:Jordan’s career journey and insights into Robinhood’s UK market strategyRobinhood’s mission to democratise finance and innovative features like 24/5 tradingThe role of financial education and localisation in product developmentStrategic approaches to market disruption, marketing, and growth • Robinhood’s revenue model, including diverse income streamsThe importance of technology in Robinhood’s expansion and customer engagement • Insights into the UK investing environment and the future of fintechDiversity, inclusion, and broadening financial accessStaying ahead with AI-driven solutions and scaling technologyBalancing professional growth with personal well-beingRobinhood’s vision for the future of finance and upcoming advancementsTune in to gain a comprehensive understanding of Robinhood’s strategy for global growth and how the company is paving the way for the next generation of fintech innovation.Learn More: Jordan Sinclair: https://www.linkedin.com/in/jordan-sinclair-36827142/Robinhood UK: https://robinhood.com/gb/en/Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/ny7vDFIVhkoIn this episode Tony Clark sits down with Paul Caulfield for a deep dive into the troubling world of Financial Crime.Paul is a practising attorney. He’s been a chief legal officer and a chief risk officer at major Financial Institutions, and he’s worked with pretty much all the market regulators in the sector, including the Department of Justice, the OCC, OFAC, and the Fed. Paul is also an adjunct professor at Fordham Law in New York.This is a ‘must-listen’ for anyone in the Risk, Compliance or Legal space.This conversation centres on Money Laundering and Cyber Crime as two key dimensions of the criminal activity challenge that the FS sector faces. In today’s market, illegal activity manifests in so many different ways and some surprising places. Paul shares some of his practical stories of the threats, regulations and remedies that firms must pay attention to.Topics covered include: The Growing Threat of Financial CrimeIntroducing Paul Caulfield: Expert in Financial CrimeRegulatory Challenges and InnovationsThe Role of Technology in Combating Financial CrimeMoney Laundering innovations in surprising places – diamonds, gaming & cryptoThe Importance of Collaboration in Financial SecurityLeveraging AI and Technology for Better ComplianceThe Future of Financial Crime PreventionVoice & Avatar Synthesis and Cyber AttacksReal-Life Scenarios of CybercrimeThe Rise of Romance Scams and Social EngineeringElection Security and Media InfluenceThe Dark Web and Cybercrime as a ServiceRegulations and the Role of Citizen ActivismThe Future of Cybersecurity and Financial CrimePersonal Reflections and the Impact of 9/11The Importance of Cyber Hygiene and Human FactorsUnexpected Inspirations: Japanese HaikuLearn more: Paul Caulfield: https://www.linkedin.com/in/paulcaulfieldny/Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/7NHLjXfhNqQIn this episode of the London Fintech Podcast, Tony Clark is joined by Louis Glass, the head of CMS’ TMT-sector M&A group in the UK, Managing Partner of the firm’s Tel Aviv office, and a member of the management board.Louis brings a wealth of experience as a corporate lawyer with specialist expertise in tech, internet, and e-commerce transactions. His career spans over two decades, including extensive cross-border work for multinationals, startups, and venture capital funds. Louis’ journey into the world of law and fintech is as unique as it is impressive.Tech-obsessed from a young age, he was writing database software by the age of 15. Today, his work revolves around complex international transactions, particularly in the tech sector, where he represents clients across 45 countries.This conversation explores the intersection of law, technology, and fintech, focusing on how legal frameworks can support innovation while ensuring compliance in the ever-changing regulatory environment.Louis also opens up on his personal journey, mental wellness and the vital importance of team and company culture.Louis offers key insights into navigating the legal challenges fintech companies face, from securing licenses to managing cross-border transactions, and balancing rapid growth with stringent regulatory standards.Throughout the episode, Louis provides practical advice for fintech leaders, sharing how companies can leverage legal expertise to innovate while staying compliant. He also touches on the future of regulation in fintech and how businesses can anticipate and adapt to evolving legal landscapes.Topics covered include: Louis’s journey from writing software to leading M&A transactions in the tech and fintech sectors.The twin ‘fairytales’ of company law and money.Resilience, mental health & corporate culture.The critical relationship between legal frameworks and fintech innovation.Balancing regulatory compliance with business growth in a global context.Managing cross-border transactions and securing licenses in different jurisdictions.The future of fintech regulation and how businesses can stay ahead.Aligning legal teams with business objectives to drive long-term success.Louis’s experience working across the UK, US, and global markets.Practical strategies for legal professionals in the fintech space.Building trust with regulatory bodies through proactive compliance.Insights from Louis’s work across over 45 countries.Interesting reads (and podcasts…)Learn more: Louis Glass: https://cms.law/en/gbr/people/louis-glassCMS: https://cms.law/en/gbr/Tony Clark: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/go9S3Ta0xtYIn this episode of the London Fintech podcast, Tony Clark talks to Sarah Levy.Sarah has over 25 years of experience launching and growing new brands, however Sarah’s journey to FS is an unconventional one, having crossed over only 4 years ago from a super successful career with Disney, Nickelodeon and Viacom, to leading one of the fastest growing and most progressive digital wealth management firms in the US. There are approximately 60,000 wealth firms globally of all sizes offering propositions that span pure advisory, self-directed, robo-advisory and hybrid models in a market characterised by shifting demographics, consolidation and new asset classes. So how do firms differentiate and get ahead?This conversation explores Betterment’s use of technology for competitive advantage and delivering a purpose-led wealth solution to the “zillennial” generation of investors.Sarah shares her unique insights on building targeted consumer brands for specific demographics and customer segments, the power of hyper-personalisation, and the misalignment between traditional firms and the digitally accelerating ecosystem. “If Schwab and Fidelity and Vanguard are my parents brands, Betterment will be the Zillennial wealth brand”.Additionally, she provides some really practical insight for C Suite leaders and fintech entrepreneurs on building a growth company, transitioning to fintech, building customer loyalty, and creating a balanced corporate culture.Moving from big-media to Wealth ManagementTransforming businesses for the Digital AgeThe importance of brand in all sectorsSolving problems for customers and laser focusThe ‘Zillennial’ generation need for technology driven solutionsThe direction of the Wealth Management sector“Selling eat your vegetables while some of the others were offering candy” during the pandemicHow Important is Enterprise scale for Wealth Firms?Betterment’s Mission – making people’s lives betterHow Betterment WorksDigital vs Real Life advisorsBetterment’s Portfolio StrategyBetterment’s Market Positioning as a FinTechHow Betterment Differentiates from CompetitorsSimplicity and the elegance of the user experienceSarah’s Team Building Journey and Betterment’s CultureFood as a team-builder..The Rise of AI in Wealth ManagementSarah’s Challenges and learning every daySwitching from corporate to fintechFuture Plans for BettermentWhere to Learn MoreLearn more: Sarah: https://www.linkedin.com/in/sarah-kirshbaum-levy-889881a1/Betterment: https://www.betterment.comTony: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/-thOpJvMmF8Which bank was the first UK clearing bank in 250 years, grew income 91%, last year despite the fintech downturn, doubled its deposits and provides banking services to 250 companies, including 16 other banks?In this episode of the London FinTech podcast, Tony Clark is joined by Charles McManus, Founding CEO of ClearBank.Charles is an international banking professional with over 30 years in global investment banking, wealth management and retail. Before ClearBank, he was the group CFO of RBS Ulster Bank and spent 13 years at the Royal Bank of Canada, where he became CFO for Europe and Asia and Global Head of Product Control.This conversation explores ClearBank’s pioneering role in embedded banking and its remarkable growth and success. Charles offers deep insights into the firm’s journey, its innovative solutions, and its leadership in the fintech sector.Topics include the future of embedded banking, ClearBank’s successful navigation of regulatory challenges, and the expansion into Europe post-Brexit. Additionally, Charles shares his personal experiences, stress management strategies, and advice for fintech entrepreneurs.Topics covered include:ClearBank’s remarkable journey to-dateCharles’ background & career JourneySetting up ClearBank in Europe post-BrexitLearning to ride a horse at 50..The Fintech revolution and the Embedded Banking sectorClearBank’s business modelBanking for banksStablecoin and tokenised depositsClearBank’s competitive landscape and differentiatorsTech company vs bankHiring an amazing team & psychometric testingAgile workingAI in the Embedded Banking sectorFuture plans for ClearBankAdvice to aspiring entrepreneurs, including those thinking of swapping the corporate world for the fintech worldLearn more: Charles: https://www.linkedin.com/in/charles-mcmanus-/ClearBank: https://clear.bankTony: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/j5HZhwSuVy4In this episode of the London Fintech podcast, Tony Clark talks to Niall Cameron. They explore Niall’s journey from heading trading teams to leading digital transformation at HSBC and now building a unique Fintech community through FinTech Connex.There are by some estimates over 26, 000 FinTechs globally. However, as this audience will know, the sector has been on a rollercoaster ride since 2020. Post COVID FinTech funding dropped dramatically in 23 and in investment terms, the first half of last year was down 57 percent year on year versus 2022. Q1 24 this year was the worst performing fintech quarter since the start of 2020.However, it’s not all gloom and doom. There is optimism across the sector from both the investment community and the fintechs themselves, particularly for those firms who have a clear niche product, a rapid growth rate and effective partnerships. A lot of this is down to product focus and leveraging the fintech ecosystem, something that Niall is an expert in.Niall shares his insights on achieving product-market fit, staying ahead of trends, and the importance of narrowing focus for deep expertise. Additionally, he provides practical advice for fintech entrepreneurs on making their products more buyable and actionable in a swiftly evolving industry landscape.Niall, not just had a stellar career in trading, rising to the top of his business with several thousand traders reporting to him at one point, but he also made a successful move to digital leadership at one of the world’s largest banks and more recently. built a unique fintech community and network business across the sector.Meet Niall Cameron: A Fintech ConnectorThe State of the Fintech IndustryUrban art & meeting Banksy (maybe..)Niall’s Career Journey and InfluencesTransition to Digital LeadershipThe Birth of FinTech ConnexChallenges and Opportunities in FintechMice dancing with elephantsSegmenting and Labeling Products for Different ClientsThe Role of AI in Transformational SolutionsAI’s Impact on Various Financial SectorsChallenges and Strategies for FinTech CompaniesFuture Trends and Predictions in FinTechNavigating AI Adoption and Corporate ChallengesFinal Thoughts and Advice for FinTech EntrepreneursWhere to learn more & Connector invitation…Learn more: Niall: https://www.linkedin.com/in/niall-cameron-8a1aab6/FintechConnex: https://fintechconnex.comTony: https://www.linkedin.com/in/tony-clark-07160b/NextWave: https://www.nxwave.com

Watch the video version on YouTube: https://youtu.be/j5HZhwSuVy4In his inaugural episode of the London Fintech Podcast, host Tony Clark takes over from Mike Baliman and takes a deep dive into the world of AI powered forensic accounting.Research shows that 1 in 10 US firms are cooking the books and that accounting manipulation is a $4.7Tn industry problem, in the US alone. Transparently has built an AI platform that can detect and score accounting manipulation, often years ahead of corporate collapse!Tony talks with Dr. Hamish Macalister, the founder and CEO of Transparently AI. They discuss the prevalence of accounting manipulation in global markets, the statistical mechanics behind Transparently’s AI system, the varied use cases spanning banking, asset management, auditing, and regulation, and touch upon the ethical commitment Transparently has towards transparency and accuracy.Hamish shares his journey, the company’s rapid evolution, and exciting future prospects involving generative AI integration. The episode provides deep insights into the significance and mechanics of forensic AI in tackling financial fraud.Meet the New Host: Tony ClarkTony’s Background and Vision for the ShowIntroducing Dr. Hamish McAllister – quant strategist, professor & AI inventorThe potential of AI in FinanceTransparently AI: Forensic AccountingTime away from the startup – Scuba divingHamish’s Career Journey & asking the Singapore government to reduce their research grant!Founding Transparently AIBuilding the Transparently AI TeamCooking the books – the $4.7Tn problem (and opportunity..). Forensic reports in seconds..85,000 companies – scoring every listed company since the 80’sPredicting corporate collapse – years ahead..Exploring Corporate Governance and Asset QualityMinimizing False Positives in Financial SystemsClient Base and Use CasesEthical Considerations and TransparencyHow Transparently AI WorksReal-World Applications and Case StudiesInvestment from Franklin TempletonTransparently 2.0 – Generative AI Integration & Google AI accelerationThe world’s first AI Forensic accountant that you can actually talk toAdvice for FinTech EntrepreneursWhere to Learn More (and free trial offer)More info:Transparently.ai: https://www.transparently.aiHamish: https://www.linkedin.com/in/hamish-macalister-phd-0b558bb/Nextwave: https://www.nxwave.comTony: https://www.linkedin.com/in/tony-clark-07160b/

This is the 4th and final episode in the mini-series celebrating the LFP’s 10th anniversary. Having looked at the past decade in Fintech, dived into how an LLM really works and discussed what risks AI does or doesn’t pose to humanity in this episode we cover the macro picture right now as the setting for the outlook for FS and Fintech over the next decade as well as revealing the exciting plans for levelling-up the LFP to go even further and fresher into it’s next decade. For sure it is the best of times in terms of technology, even if in terms of “western”/US empire societal and economic situation the worst of times as WEF/2030/Agenda 21 continue to bear down upon the people. But however the macro cookie crumbles with regard to geopolitics for sure FS will be affected significantly either way. Insane money-printing and government debt accumulation in western countries cannot continue for much longer without risking social and economic collapse as we have discussed on the podcast before. On the other hand will we have CBDCs and the State programming your currency? There are many scenarios but the geopolitical changes are already being ushered in with the BIS, the “central banks bank” already well advanced with its mBridge project, a Swift alternative. In this episode I am delighted to be joined once more by Tony Clark former guest and London Head of former brand partner’s Synechron as well as founder of Next Wave a digital acceleration consultancy for FS who lives much nearer the coalface of change than I. So check the show out for not just an overview of the dominant geopolitical influences on FS, to which Fintech is simply a subset, but the future and how we see technology changing FS and Fintech in the upcoming decade. And then finally in the show we reveal the exciting plans for levelling-up the LFP and taking it into its second decade – where for sure the pace of change will not, whatever happens, slow down! Share and enjoy!

In this episode we discuss the super-hot and super-important topic of what Risks AI poses to humanity and society. There is perhaps not a hotter and more misunderstood topic than that of AI and the risks it poses. Many indeed fear that “it” will eliminate humans. The influential Geoffrey Hinton, co-creator of the seminal backpropagation algorithm, has been all over the media saying we need to worry and that there is 50% chance that AI outsmarts humanity and poses an existential risk. Other insiders put that probability at 100%. Should we too worry if the real insiders are sounding the alarm? I think not. But why are the insiders not the people to turn to? If the insiders were say insiders at Boeing who were blowing the whistle about dangerous aircraft manufacture processes then yes we should be concerned. Mind you we might also be concerned that three in a row now, having found their whistles, suddenly died in mysterious circumstances. However if, in simple terms, airplane manufacturing risks are very much in the box, the risks AI poses are very much out of the box that the experts are expert in. Whilst one must listen to their technological concerns, neural net experts are not experts out of the box. And it requires an assessment from outside the box to consider the risks to society as a whole. So lets dive into whether AI is about to decide that their users are useless eaters or will AI be more benign than WEF luminaries and not turn us into slaves but serve us? Or is AI merely the latest in many tools, many changes of technology which fits into a long-established pattern of such over the millennia. Each new technology by definition affecting the world in unique new ways as well as same old patterns. We will have five sections: a brief summary of the prior episode on what an LLM is and a contextualisation in the wider field of AI and why LLMs in particular pose greater concerns than other AI technologies which have been used for a long time. I will briefly summarise LFP200 on the impact of technology on society historically. This new tech isn’t humanity’s first rodeo. before we assess risk in any domain we need to address biases that people have – linguistic/conceptual, philosophical/metaphysical, sociological and psychological. we will look at four domains that AI may affect in society – the crazy scifi that the robots are taking over, the economic impact, the informational impacts and technological developments. we will address the key point of who controls the technology. This “who controls” is for me the real crux of the matter and right now much of what one hears is propaganda to influence that outcome. To simplify will you end up owning your own super-smart chatbot or at the other will it be centrally-controlled by Big Brother, the corporate-state who will keep you safe and feed you its propaganda? And much much more

LLMs, of which ChatGPT is the most well-known, are perhaps the most awesome tech invention of all time. Even experienced AI folk didn’t see this coming. Most if not all of us will have used ChatGPT. However understanding of how they work is for most people either totally missing or totally misled by anthropomorphic language – thinking, learning, hallucinating, learns like a human, is like your brain and so forth. None of which are actually true in the slightest. In this super-special episode I reject all the utterly misleading language that is entirely off the mark and instead focus on what LLMs are schematically two programs that process data like all other programs using no different programming languages or technologies – well other than needing an astronomical computing power which so enriched Nvidia shareholders. I explain using only a simple excel spreadsheet model how both of these programs ~the “training” program and the ~”Chatbot” program and how conceptually one could create one in Excel. Having established that listeners will really know – in ways they can explain to others what LLMs are and not be misled by human terms which the currency of so many LLM descriptions. LLMs appear to be a very recent and overnight success. However like the Beatles there was a long hard slog to get to say the Camp4 on Everest at which point they started to become noticed and from where it appeared to be a relatively short walk to the top of Everest and a mystery about how rapidly someone can get there. But John Lennon and Paul McCartney were playing together in dive bars and village halls from 1957 until they summitted in 1963 with their first Number One. The climbers on Everest may have gone all the way from London on the way to Everest. And for ChatGPT phenomenally the journey started as far back as during World War 2 – an astonishing  81 years ago! The road to ChatGPT was long and winding with all sorts of ups and downs including most of the specialist AI researchers deserting the field in the so-called “AI winter” from 1969 onwards. It is a truly astonishing tale and, fascinatingly to the insanely hyped and utterly misleading human-related vocabulary surrounding LLMs, this dates back to a 1958 press conference (!) showcasing the US Navy’s Mark 1 Perceptron machine – a hardware-only machine which was created to aid the navy in image detection where as wikipedia says: “In a 1958 press conference organized by the US Navy, Rosenblatt made statements about the perceptron that caused a heated controversy among the fledgling AI community; based on Rosenblatt’s statements, The New York Times reported the perceptron to be “the embryo of an electronic computer that [the Navy] expects will be able to walk, talk, see, write, reproduce itself and be conscious of its existence.” The blurry photo on the left is of the perceptron and unsurprisingly none of it and its successors never did walk, talk, see, write, reproduce itself and be conscious of its existence. Indeed it took perhaps fifty years to develop robots that could walk or computer programs that could see, write and talk but over 70 years to ones that could take or write intelligently as ChatGPT et al do. Even then ChatGPT and other LLMs are like all other programs – they simply take input, do some computations and create output using no different technology from any other computer program. Their awesome abilities rely not on any magic simply the awesome human skill of creating new ideas after new ideas until after 81 years these achieve a critical mass and produce results that no-one expected – even the experts. This Special is Part 1 of 2. In Part 2 we will look at the risks of this new technology – all new technologies come with benefits and problems – nuclear technology can be used to keep us warm or to atom bomb people for instance. However as the world of risks in LLMs and AI in general is dominated by insane sci-fi visions the field is entirely ungrounded. To get to that episode it is necessary to understand the nature of an LLM and how it works. Only then, alongside its abilities as a program, can you start to form an opinion as to what it’s consequences are. Will LLMs, as their capabilities and powers grow, decide – like WEF luminaries that the people users are “useless eaters” and start releasing gain of functioned viruses, feed us bugs and bankrupt us with so-called green taxes to funnel ever more money upwards? Or will LLMs not turn into the WEF and instead remain as a powerful tool on your desktop no more threat to you or I than Excel? Or something in between? Tune in to the next episode to find out but first find out what LLMs actually are and the amazing 81yr tale of their creation.

The past decade has seen the most extraordinary innovation in any business sector in the UK and thence world since the industrial revolution . An amazing outburst of creativity and independent players emerged on the oldest and stodgiest sector of all – FS. The LFP was the first, and most blue-chip podcast to cover this scene starting in 2014. This episode is like a mini-documentary that takes us one fast-forward through the development and progress of Fintech as it happened and was perceived at the time. A decade of the LFP represents a unique historical archive, a super-rare window, a time-machine to be able to look back in time and see how things were perceived at the time. However such is the volume of episodes that if you took on, as a full-time job, listening to every episode in order it would take you well over a man-month of full-on 9-5 listening to go through the whole evolution. I thought more preferable would be a one hour review of this exciting decade of innovation and entrepreneurialism instead <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

This is a super-short extraordinary LFP outside the usual programming schedule to alert listeners to the crime of mugging folks and then getting them to transfer under duress large sums of money to the thieves bank account. This is apparently on the increase in London and is well-known in countries such as Brazil and South Africa where people may routinely take burner phones with them when going into the City. I initially learned about this risk in this Reddit thread. Many people without reflection may in effect carry access to all of their money on a single device. We look at possible simple answers to avoid unnecessary risk. There is also a shoutout for a Q& A in the 10th anniversary episode and instructions as how to send the Qs to me for answering in that episode.

If you invent the world’s greatest Fintech App in your garden shed that’s impressive – but something only known to you. At which point you need to get the word out to relevant audiences. PR is an essential component in the modern world to help you refine and target that message and to get you and it into the relevant publications/podcasts et al that will reach your target clients and the market in general (think targets for next fund raise perhaps). At a more macro level, the dark side of PR is that it is, as Musk said propaganda, and one often designed not in the recipients’ best interest, whether it be Bernays getting women to take up smoking or governments getting people to be injected more recently. However that’s way above the Fintech space and in this episode Ben takes a very value-adding practical approach to what PR is, when you need it and when you don’t, what the value-add is, how to use it well and what to look out for when hiring a PR firm amongst many other insider-angles. Ben is a long term player in the whole media and Fintech scene including the earliest days of Level39 and working at Balderton Capital VCs and formed his own boutique agency focusing on B2B Fintech and VC PR in 2017. Topics discussed include: Ben’s career journey and background working in various angles from working for free in the media to today the importance of not doing PR too soon or inappropriately lest you make things more difficult for yourself using PR along the growth curve and how it changes along with your aims the PR process the super-importance of a collaboration between the firms strategy and its media comms the real value-adding lies in the first stage of the process – as unless your message is spot on you will not be spreading an optimal take for your business quantifying/validating messages audience how to avoid “the tail wagging the dog” the PR model form the perspective of being a recipient of thousands of PR firms communications what goes wrong and what needs to be done two extremes “spam everyone via an intern” to “focus your outreach” ignoring the specific media’s pitching notes specialised vs non-specialised PR firms and their respective roles, pros/cons the general large firm pyramidal model of PR implementation local vs global reach the importance of eg the interviewee knowing the context in which they are “media-appearing” speciating the technical media landscape less obvious newsflow for Tech firms hiring a PR firm – how to “be aware of what you don’t know and arm yourself against that” leveraging networks and funders to get a better feel when to decide to get PR and when to decide not to know why you are doing PR relevant track record of potential firms boutique, midsize and large firm interviewing and helpfulness of understanding their strong/weak points and use cases the generally useful advice for a new senior/important hire of asking them how they would have approached situation that your firm didn’t handle that well in the past discovering how much homework the PR interviewee firms have done on your firm how much do PR firms cost in general and the main kinds of interaction/usage shoutouts for Goldsmith Comms team of five plus resources amongst freelancers And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

One major way of innovating is to move into a domain with transferable and out of the box skills/ideas/technology. This presents obvious opportunities  for radical change yet naturally produces equally obvious challenges. In this episode we look at how 4 co-founders created a payments infrastructure Fintech that now connects an amazing 7.5 billion bank accounts, 6 billion cards, connect banks in 144 countries and have 620 employees with offices in 35 countries. Ani came from FS and so understood not just how money currently moved but also the super-importance of understanding that its an incredibly regulated business. The other three co-founders came from the telecoms world and had no idea of how money moved. However they brought in what the telecom industry does very well – namely builds at scale, can process small volume transactions and deliver them instantly. Topics discussed include: moving a family from one country to another importance of getting outside one’s comfort zone the value of cross-cultural working in terms of leading to creative and open thinking Ani’s daughter can speak 7 languages (!) getting out of the box = getting out of the comfort zone importance of asking dumb questions “we just challenged everything and today that is probably the main reason we are the fastest growing company in this space” the simple Ur-notion behind Terrapay’s foundation was that if an SMS can be delivered to anyone in the world instantly why can one not do the same with money? this concept versus the actual time and cost of sending money being waaaay higher than an SMS cashing US cheques in the UK – one would never imagine that Fintech existed transferability of competences – eg Sales in any domain to be done well needs a deep sense of understanding a customers pain and relieving that technology is similar (but different in eg APIs, protocols etc) cross domain – however note various strengths eg of telecoms tech versus FS tech the ever-changing landscape of technologies that customers can use which parts of the organogram are so key one needs either a co-founder or a super-senior C-suite colleague in order to innovate radically the need for confidence to ask “silly questions” answers to “dumb questions” that reveal core beliefs in a vertical rather than actual facts MotoGP and radical innovation as a case study the criticality of binding energy both within the co-founders and within the company culture in re company motto “stay hungry, stay humble” the Navajo and cultural preservation over millennia how does one know whether something that hasn’t been done before can be done? budget and timescale, business savvy and feel in re finding problems that will last long enough to make the huge effort to produce a really radical solution worthwhile and long-lasting key takeaways on the experience of doing all this “Be prepared for a rough ride… you will have more tough and bad than good days” “Try to find simple solutions for a larger problem set” WhatsApp as being exemplary of One Great Solution – namely, unlike SMSs, being able to know when your message has been read and this as fundamental to their success shoutouts for Terrapay “no consumer knows us but we are the plumbing behind moving money around the globe” And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

The Governance of FS as a whole affects all of our lives as we saw in 2008 let alone in many individual examples of FS/Fintech businesses failing and losing clients money. In our digital age virtually all of our money is digital and next to no-one sees a share certificate any more so all of our investments are digital. Thus what might appear to be a refined topic for a few is at the heart of all of our lives – money being used for roughly everything and savings equating to money saved for tomorrow. As a result of this central role of money in economies, Boards in FS have always had to be – lets put this mildly – “rather more careful” than Boards of companies which if they fell over would “domino” not very far. Not only do many FS/Fintechs “take care of” clients money but money itself in the current financial model is created out of thin air by banks. Add to these long standing issues the ever-increasing burden on Boards as a whole from the always metastasising Regulatory State, ever-greater minutiae in FS per se and the State using companies to enforce social agendas which even a decade ago would have seemed unlikely/bizarre and we have a very challenging cocktail. Neil has 20 years expe4rience on Boards and Chairing sub-committees of FS and Fintech Boards and is thus well-placed to guide us through this labyrinth. Topics discussed include: Scottish and Irish traditional folk music transitioning from classical piano to the accordion interesting anomalies re accordions – not least of which one has to fill in the bass part oneself musical insights into Scottish vs Irish music learning music as “play these notes” vs “play along with us” a lot of folk musicians cannot read music Neil’s career journey the long delay between Basel II and Boards getting with it the felt sense of FS Boards vs “normal” companies – cf FS and Sainsburys looking after other peoples money – fiduciary duty even if you are the equivalent of a corner shop in FS/Fintech you have to have as much governance as the equivalent of Sainsburys – which in retail obviously does not apply the need to cope with all that overhead when your Fintech is still very small Case Study of innovation/Fintech/regulation Banking Alchemy – a broken model of money (see eg LFP085, LFP197, LFP220 and LFP231) leads to a broken banking system which cannot be repaired by any governance as have discussed in many episodes a deep dive into unitary Boards vs sub-Committees of Boards what has driven this the strange situation re independent directors and sub committees where excess do most of the talking yet are technically no on the committee – “it is slightly absurd” the volume of “left-brain” stuff heaped upon FS/Fintech Boards absolutely swamps the Board meeting crowding out creativity in governance and business strategy a comparison of FS vs Airline regulation literally no limit to the amount of over-regulation of FS ever-increasing costs to the consumer as a result and higher risk taking as more people in FS/Fintech are doing non-revenue related activities management by walking around starts failing in the larger organisation where one is more dependent on management perception/spin comparison with quantum world – what is observed by the Board changes as a result of being observed the need to get a feel beyond the management information what are the powers of a NED individually or in a committee the challenge of balancing the need to gain insight and challenge yet not annoy/rile the executives the pressure on the Chairman in these circs “poking your nose in but not poking your fingers in” as summing up the role of the NED 21stC challenges from the whole tsunami of Corporate Governance (and the word literally did not exist from Chaucer up to the 1970s) and “ESG” et al the problem of a “free market” solution to governance and the problem of “bureaucratic rules” solution to governance NSDAP (“the Nazis”) as the inventors of Corporate Governance in 1930s Germany again – cf now? – to impose their political agendas upon companies the abuse of Governance Boards and “guidance” re ESG/DIE etc – the huge pressure to conform to something which is not statutory the imposition of groupthink by regulators yet regulators say groupthink is the biggest risk for Boards… the idea of safetyism and “nothing should ever go wrong” “there is no real difference ultimately between corporate control and corporate creativity” [as the longer term risk is the world is changing and the company does not react appropriately] the “war on meritocracy” the major risk of FS/Fintech Boards is groupthink and agreement re the wisdom of the rules/codes/guidance etc which is imposed upon Companies from outside the Boardroom Advisory Boards, Strategy days that are not minuted as important in these circs to have “unruled” conversations “Board Champions” as the latest pressure from regulators which break down the whole idea of collective responsibility and power of sub-committees Neil’s overall advice to FS/Fintech Board members especially younger folk embarking upon their first gigs the importance of human dynamics within the Board – key cruxes is it a good trade being an FS/Fintech Director? non-commercial rewards in the role Neil’s shoutouts for both folk music-ing and his own NED role portfolio state right now the Mutual Model of FS as an appealing one And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

The tech world focuses heavily on the “succeed fast or fail fast” model of tech growth. In part this is as VC firms generally have limited life funds and hence cannot handle slower models but is also as the tech press loves the hype/condemn cycle implicit in this. However generally most businesses do not follow this model. Whilst rapid success comes to a few, for more it takes rather longer and for many its a slow rocky path. After all hottie OpenAI (ClosedAI?) took quite some years to make a noticeable splash. Ruzbeh founded City Falcon a decade ago and whilst, like us all, preferred rapid success, he has moved into the more marathon development model of the business. I was particularly enamoured of his very human/ethical perspective and clarity of the social costs of the “succeed or fail fast” model – namely that it comes at the price of burning your friends and family and employees just so that you can get onto your next gig as fast as possible. With a huge desire worldwide to move on from all business being dominated by neoliberalism – you know, the “humans qua just another resource model” (with some virtue signalling perhaps as perfume to cover the heartlessness of seeing people as resources) – this is a good time to dive into the slower model. This slower model is definitely no picnic – the longer you hang out in business or in life the more tsunamis you will have to face. Topics discussed include: Malta as a tech scene with incentives to attract talent Malta Enterprise & Start in Malta the competition not just for digital nomads but digital business and entrepreneurs in general why Ruzbeh chose to move the business to Malta 300 days of sunshine every year Ruzbeh’s career journey through Tech into Fintech Ruzbeh’s original intention re the business re timescale pivoting from B2C to B2B and B2B2C “There’s no point failing if we have built all this value and have customers coming to us” Strategic investors eg EToro 48 staff today what led Ruzbeh to move on from the failing fast model “Why do I need to fail?” When is it I should fail?” the challenge of clients asking for more versus being clearer on their needs/desires the criticality of cashflow/raises for the slower model of growth importance of aim… to eg raise $300m to become a unicorn or to get to cashflow positive raised $5m over 10 years HT to Seedrs Case Study in mining of dislocation being ever more likely the longer one is carrying on and need to react to massive changes in business environment Two Case Studies for City Falcon of dislocation due to market changes/dislocations is success how much you get when you exit or providing a supportive environment for employees who are loyal, hardworking and delivering or some combination? prioritising people over money as a founder whilst ensuring a profitable firm the pre-neoliberal English model of sacrificing annual p0rofits before you sack people compared to the modern “HR” model of Profits Uber Alles desire to hire people who play sports as a proxy of finding people with grit the many decision points to quit or carry on the importance of being lean but also having staff buy-in to the economics of the business caring in business and especially Family businesses the relevance of the stage of the Fintech consolidation shoutouts of City Falcon their interesting latest product Dynamic Company Sector Classification which uses automation to dynamically classify sectors for companies thus eg no longer “just” Mining sector or FS Sector but Generative AI subsector how this is done And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

The Founder(s) is(are) at the heart of creating something new that literally never existed before.  However they very much do not do this in vacuo needing to entice and hire a team below them but also, less well understood, a team around them. The surround will at some point coalesce into a formal Board (as opposed to a pro forma Board for Day0 – and for many days after – NewCos). In this episode experienced NED/Advisor/Mentor/Angel Nic Lenz and I discuss experience in this field with particular reference to formerly senior BigCo folk who wish to get involved in the SmallCo world attracted by the creativity, and let’s face it greater fun/thrills&spills but also to educating the first time founder, or potential founder who will naturally realise they need a CTO et al but may think that “the organogram below them and some dosh” is all they need.  It’s certainly the minimum viable organisation but is it the optimal organisation for their personal support/challenge as well as the company’s future? Both Nic and I have seen countless examples of where the right “grey hair or no hair” experienced folk even though very much part-time contributing to the company can make all the difference between success and failure. We also discuss the challenges of transitioning from BigCo to SmallCo – which applies to both founders and venture accelerators – along with mentoring mentors and the key essences of both sides of the venture creator and the venture accelerator equation. Topics discussed include: Nic’s rare furusato and transition to London mysteries of the Netherlands and its history and relevance to London capital markets Nic’s 20 years in investment banking early entrepreneurial experiences Nic’s career journey into Fintech how to get to understand the very different world of SmallCo after time in BigCo the first attitudinal step that needs to be taken when becoming a mentor relevance of dating and mating and fishing… how to find out what the real needs of a founder are how all these concepts such as advising, mentoring, NEDing et al evolved in Nic’s experience the importance of “not knowing”, listening and asking probing questions the most powerful tool for all Venture Accelerant roles never saying “that can’t be done” – how do you know it cant? advisors et al need to help illuminate a journey not deny its possibility venturing into the unknown – and it is the founder who is venturing into the unknown the magnitude of founding as a task supporting and challenging visions from a certain perspective helping founders get from A to B what are the core issues? first time founders as special cases what does it take to fund-raise? the problem set after initial commercial success – the important aspects at this point asking dumb questions having startup advisors can be transformational – transition from there to Boards ways not to see Boards the two main practical challenges with being a venture accelerator – Case Study the antidotes to the elephant traps awaiting the unwary structuring remuneration creatively intentionality and aligning interest the caveats for the founder/company in dealing with venture accelerators what should lead you into this world the importance of wanting to help people and businesses go faster “it’s extraordinarily rewarding [not necessarily in financial terms]” Nic’s personal shoutouts and working in the worlds of Fintech and Cleantech who Nic would like to hear from And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

As always there is a fascinating phenomenon when the globalised world of tech meets the localised worlds of custom, people, rules and regulations. As recently as LFP243 we dived in to the world of tech as a whole in Berlin and today we dive into Fintech in France. Needless to say France is a massive market, well banked and a real venue for Fintech. That having been said there are, as always, some downsides. In this episode we have a fascinating historical, philosophical and very practical conversation about the nature of Fintech in France. Louis is well-placed to discuss these matters being not only a co-founder of Hokodo which is based in Paris and has more than 100 staff, most of whom are in London. Furthermore he is very multicultural in a European sense having been brought up as first a German speaker in Champagne and then Strasbourg in Alsace which looks both east and west, not least of which as it has been part of Germany and of France at varying times. He moved from there to Paris and describes the Paris-isation of French students and the de-regionalisation process they go through. Furthermore he has worked in Switzerland – also rather Franco-German as well as the UK. Thus who better to lay out the pros and cons of Fintech in France? Topics discussed include: regional accents and dialects and the trend over time to create one language at the expense of the regional variants comparisons with life in Switzerland and regionalism in the dialects anecdote of going to a Parisian university Louis’ career journey starting in London through Australia and Asia the early genesis of the move into Fintech and founding of Hokodo Hokodo is headquartered in the UK despite two of the co-founders being bases in Paris the genesis of Fintech in France the nature of the competitive context in France re existing banks the nature of the French regulatory environment when Big Banks got into innovation regulation and innovation in business lending in France compared to the UK or the Netherlands cost of innovation compared to regulatory climate and the resultant levels of innovation Eurosceloris as, inter alia, being driven by mass regulation favouring incumbents and protecting them from competition John Law and the background to French attitudes to banking, finance and money the split of Catholic attitudes to money and Protestant attitudes the form between common law and the Napoleonic code how the latter started off as A Good Thing but just gets bigger and bigger Case Study of Labour Law – ~4,000pp in France ~200pp in Switzerland the challenge for founders and even their advisers in simple matters like calculating the number of holidays for employees even the accountants get this wrong! the degree of centralisation of Fintech in Paris the impact of c19 on this centralisation trend French history as collapse and rebuild “France does revolutions but England does Evolutions” the good news about being in Paris strong move in France to digitisation the main advantage of being based in France leading in marketplaces along with Germany and the UK falling behind Trade Finance in Europe and France the ecosystem and State approach VC and PE investment trends in France a government body invests in 1 funding round out of 5! comparison with the formation of the East India companies French tech talent market attracting top talent as a startup/scaleup shoutouts for Hokodo’s core business products/services an explanation of the many layers of reference contained within the Hokodo name the B2B trade market and changes taking place Hokodo’s international expansion plans And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

In this episode we take the opportunity to talk to one of the most credit risk experienced men in Fintech who has ranged from a dozen years at seminal Capital One through managing Barclay’s £40 bn portfolio, being CRO at Funding Circle to now founding his own Fintech to mechanise further short term SME liquidity financing, Jerome’s stats are that banks automate roughly 5% of this type of lending whereas he believes the vast majority to be automatable. We discuss what credit risk is in the age of data, automation and Fintechs and dive into the multiplicity of models used in a credit pipeline not just for risk but for wider business management and portfolio management purposes as well as looking at the parameters of automation versus human input. We also look at Jerome’s experience of what is stable about the models value and what is not over significant economic dislocations. Importantly there are a huge range of uses of credit models above and beyond the simple case of credit risk and Jerome gives us a flavour of these across his own career – a fascinating stat being the incarnation which had 25 models in operation :-! Topics discussed include: Jerome’s background in the Art world as well as Banking world Jerome’s career journey through credit in various incarnations running a team of 1,000 risk metrics folk developing an interest in SMEs 7 years at Funding Circle defining risk, uncertainty and so forth the many different types of risk through the whole lending soup to nuts process the balancing act on decisions at each stage of this process using multiple models and cross testing them against alternatives to gain greater insight – challenger models Barclaycard had about 25 different models for different stages of the credit card process keeping the models fresh and tuned not using “black box” models challenges of models coping with continuous and discontinuous phenomena practical approaches to life’s discontinuities in the lending world lending versus trading risk in this context ranking of risk tends to be stable across perturbations even if the level of risk gets well off the commercial importance of  the relative ranking in itself to make the lending decisions within a given risk appetite at any point experience at Barclays and Funding Circle over significant economic dislocations requirements to create a model in the first place the role of human creativity and comparison with human decisions making versus a “computer” Jerome’s many tests over his career with automated versus underwriters credit decisions and the results the requriem3ents for automatable credit decisions in the SME sector – where it can and cannot be done well the irony that larger companies have more data but smaller sample size Jerome’s motivation in establishing his own firm to do short-term SME cashflow management the business model – API- and partner- centric leveraging external creativity in this model – cf ChatGPT the differing business model viability compared to banks decisions in 2.5 minutes And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

This 2024 New Year Special forms the sixth and final in a series of six (there will be no more) about how technology – and in this episode way wider forces – are changing us directly for the better (read huge software upgrades) in order to overcome, in a velvet revolution, empowered tyrants. I said in last years 2023 New Year Special that “It is by far the most ambitious, empowering and positive of all suggesting that we use the insanity as a spur in our sides to seek to flee Plato’s cave, escape the Matrix and speed up our path to awakening in search of love, light and healing.” Well this one jumps that shark and sets out to empower us all to not just be in search of “love and laughter, song and dance” but to create it via giving us perhaps the deepest podcast dive ever (from conventional reality to well beyond) into what creativity is and how we can amplify it manyfold. How much of today’s, at a narrow level, tech was unknown a century ago? Imagine how much tech in a century from now is unknown today. How do we become explorers of the unknown and make it known? It has seven sections: A Recap of the Series of Six LFP Specials to date The Three Phases of Existence of all Form Creators The Fertile Field The Three keys to Unlocking Infinite Potential Voices in your Head Creating a  New World not a New Order There is a huge shift in consciousness going on now. The old world is dying in front of our eyes. However a new world is arising and there are a phenomenal number of green shoots growing for those who will look and see. Let us take a journey from disenchantment and toxic metapolitics, and a world that was going down not up  way before the globalists started boiling frogs. to a world of re-enchantment and the most noble of missions, playing our part in designing a world that will be a tribute to us and a blessing to not just our offspring but humanity as a whole. To create the New World we need to dive deep into the well of creativity and bring up a bucket of fresh water. May this episode inspire you to understand your innate, your divine if your prefer, powers of creativity and their infinite potential. We all live – or are imprisoned – in the world of the known and the assumed. Creativity and the three tools we examine in this episode (plus for the racey an additional angle to turbocharge personal creativity and life) is the ONLY way in which we ever change anything. Creativity unlocks the door that traps us in the super-finite known, in the matrix, in Plato’s Cave and releases us to explore that vaaast world which is the unexplored world of the unknown.  Do not think that, as you are just a drop of water, this means you are of no significance. Rather remember that a bucket of water left out in the rain gets filled by nothing other than drops of rain.  Share and enjoy!

In this Xmas special we zoom out from Fintech to Tech as a whole in one of Europe’s coolest capitals – Berlin. Ivan is a great person to guide us through the scene having spent many years in the Ur-tech hub of San Francisco/Silicon Valley. This also means that he understands both the outsiders perspective on Berlin tech as well as now an experienced and well informed insider. Ivan honestly lays out both the highs and the lows of being in Tech in Berlin – the good news and the challenges and the somewhat insane (see below) – that he has encountered with his embedded financial infrastructure startup Monite. A particularly insane quirk of German law is the need to get documents notarised. Ok well so no big deal eh? Well not as such however if you for example do a raise then the notary takes a percentage of the value raised for (a) reading the whole document out to you in German (even if you do not speak German!) and (b) notarising that “yeh he signed it”. Topics discussed include: historical contexts of Germany, a very young country, and Berlin San Francisco pre- and post- covid years Berlin is Berlin and international as well as German is there still a felt sense of former west and east Berlin? What are the differences? district-centric view of Berlin where startups tend to be based Ivan’s career in SF and journey to Berlin being in SF during boom times the leading continental tech centres Ivan considered pre-conceptions/understandings of Berlin from America vs the reality what gets taken for granted in SF and what the vibe is different vibes of innovation – SF being in more radical innovation the more positive developments from Berlin – “finally having a life” the major tech sectors in Berlin and particular strength tech scene in Berlin starts in the 90s German regulation – did they get it right? are their actually subsector “scenes” or is entrepreneurial activity centrifugally spread around German tradition of entrepreneurialism what binds tech firms together in Berlin Berlin is roughly 1/3 the population of London comparing via looking at the number/distributions of WeWorks the city/state/country’s importance or otherwise in creating a tech scene versus it being entrepreneur-led Germany does a lot of good things for entrepreneurs but also a lot of total passion killers immigration restrictions for talent lower than the US what makes it hard to do business in Germany super-easy to get fined when forming a company the outrageous notarisation fees (as above) and impact on fund-raising the difficulties and paperwork involved in a US investor investing in a German startup – the costs can be higher than the raise :-O challenges of legalities and difficulties there Case Study  of trivial business expenses – state checking down to €3 or 4…! due to the challenges a lot of startups are forming legal entities outside Germany what Germany gets right “some aspects of doing business are just absolutely crazy or unimaginable for 2023” many things are still mailed not emailed – “insane” levels of posted mail well-designed for some activities but not for entrepreneurialism the investment scene in Berlin – angles/desires and presence of VCs.. why German startups never tend to wide-scale success the response of successful businesses as a result what Ivan would look for now if he were starting again global fundraising to overcome local challenges what Monite does and where it is going what embedded workflows are and how they fit in innovating SME finance And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

Saudi Arabia is a country that increasingly confounds stereotypes and expectations – an example being a YouTuber who has visited every country in the world choosing it for his honeymoon. At the same time it has undergone a phenomenal journey literally in a lifetime from a very low economic standard of living to super-high. As a result, like China, it shares the “relatively blank canvas from which to start Finteching” but equally has it’s own unique issues notably eg in a country with centuries of little wealth and suddenly (on average) excess savings culture and the likes of pension provision are very distinct – or perhaps lacking. Naif has had a wide and varied career before starting Hakbah a collective savings platform Fintech. Interestingly talking about different social models worldwide P2P was focusing in this “modern” “Western” way on the individual as the “unit of social currency” [and in passing re zeitgeist then became institutionalised on one side (the lending side) and then most became banks). Collective savings were A Big Thing in say the UK for some time where regionally folks would pool savings for others to get mortgages in “Building” (sic) societies. They remain A Big Thing in a still at heart traditional Arabian/Islamic culture. In this show we dive into some historical and geographical aspects of Saudi Arabia – the 5th largest by land mass in the world in passing. Thence the unique aspects of Fintech in Saudi – one of which is a very rapid pace of development and another a very government-sponsored approach – and finally collective savings in more depth. Topics discussed include: the geography of Saudi Arabia – unique features and aspects one might not expect tourist aspects and anecdotal reports from visitors 19thC British women travellers to Arabia and the long lasting (and unexpected) consequences of their journeys management of national oil wealth by the government as key to the economic consequences Naif’s career journey the influence of encountering 3rd stage cancer on Naif’s journey and motivation to start Hakbah the genesis of deciding upon collective savings especially in a country without a savings culture the background to the history of Saudi Arabia and particularly the formation of the country and the central bank the long background in money changing due to centuries of pilgrims to Mecca the Dutch starting the first bank branch the first loan in Riyals the central role of the central bank in all finance to this day the national remittance system and immediate payments system outside of the “western” rails of visa/mastercard the advanced nature of ease of using compared to other countries (UK for example) 2018 as the real start of Fintech in Saudi the central banks sandbox and first cohorts verticals that were established moving beyond batches/cohorts in the sandbox to continuous application the national strategy for Fintech and government departmental support key Fintech verticals with the greatest penetration in 2023 around 130 Fintechs at present target of 525 by 2030 the complex issue of a lack of savings culture the saying ~”spend what is in your pocket and the assistance is from God” “more than 70% of Saudis don’t have any emergency savings at all” (!) the State provision of pensions meaning that saving in a pension scheme is not the main modus operendi – enjoy life and spend now year by year rather than saving up to enjoy in the future short-term savings examples in the culture long-term savings culture across the Arab world collective savings being traditional and existing in more than 60 countries around the world at the end of a cycle no one owes anyone anything (cf debt-based systems where due to the interest margin between save and lend there is always increased debt every cycle) how does trust work in the variety of collective savings schemes around the world? what is key to establishing trust? Hakbah’s model, key design features and very low default rate over its history (less than 0.7% default) repayment of debts being historically important in England if not now in the “modernised” culture the outlook for Fintech in Saudi Hakbah’s plans and future ideas And much much more <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f642.png" alt="

Why buy alternative assets? Well in extremis what else would you buy? <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f600.png" alt="

Back in the 70s getting mortgages took months – there was a mortgage queue (&before techies get over-excited about how “bad” this was it was one of the factors restraining insane bull markets in residential property). Fast forward and the median mortgage in the UK is granted in 19 business days which is still a long time to wait given the stresses associated with the UK legal structure of buying a house. MPowered Mortgages, a regulated mortgage lender in the UK, have reduced this to a median of 3 days to make a decision and are aiming in the next 18mts to make half of those done in a few hours. Stuart is the CEO of MPowered (and its sister company MQube seller of AI products into regulated industries more globally) and guides us through this astonishing outperformance. Like many a hardcore Fintech founder he has a long history in FS behind him having been CEO of several banks in Asia for Lloyds Bank for many years. Even so this is no mean achievement as Stuart himself found out recently when he needed a mortgage but – under the “rules” – was not allowed to use his own company to borrow from. Topics discussed include: Stuarts recent experience of buying a house and getting a mortgage running banks in Asia and being a nomad the UK Housing market managing banks in a crash period “inventing the motor car and a regulator telling you you must use a horse for travel as you have a vested interest in motor cars” <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f600.png" alt="

So rapid is the rate of change in banking and the nature of and control of money right now that today we set a record and have a returning guests a mere 6 months later. Mario (YouTube Channel) first joined us in Feb22 for the gargantuan LFP197 “Money in the 21stC: Ballooning Printing of Fiat/QE/”MMT”/Govt Debt, CBDCs, Crypto, Dedollarisation, Hyperinflation, Gold” and more recently in Feb23 for LFP220 “Has A Century Of The Federal Reserve and 50 Years Off The Gold Standard Directly Led To Monetary and Social Disaster for the West?”. Now we cover the accelerating trends whose tap roots run deep. The first we might call “debanking” – banks debanking themselves by going bust, banks debanking individuals by denying them bank accounts and banks debanking “cash” to ensure  no alternative (&with CBDCs on the horizon to increase their already way too mighty power). Separately as many entirely foresaw “debanking” of Russia (Nazi Germany was not debanked of its reserves even in WW2) and the US having economically “sanctioned” one-third of the countries on the planet the second fruit is a creation of a non-dollar-centric financial system with Gold Repatriation, BRICs planning a gold-backed medium of exchange for trade. As money is not just central to the lives of Financiers and Fintechers but everyone on the planet its the most vital topic to track and so we take stock in mid-2023 of where we are and where we are going. Topics discussed include: the multiple dimensions of dissidence these days against multiple State/Globalists narratives and how to remain cheerful whilst doing so two quotes in re from an obituary of recently-deceased Mila Kundera:       “Kundera denounced the “vandals” in power, living “purely in their own immediate present tense [who] are quite capable of turning their country into a wasteland with no history, no memory, no echo of beauty””        “I could always recognise a person who was not a Stalinist, a person whom I needn’t fear, by the way he smiled. A sense of humour was a trustworthy sign of recognition.” how Mario copes with “staring into he darkness” “private dissidence” within even large institutions how this relates to approaching a tipping point when change away from tyranny could flip very rapidly when there is a critical mass of people leaving the official narratives does the truth set you free or make you lonely? what is truth – how to find it, is it hard; the ease of finding falsehoods in comparison US debt payments moving towards a trillion dollars per annum group-think in economic policy and the Bank of England’s recent conversion to hyper-wokism comparison with prior decades – the past 15years has been increasingly insane many waves coinciding now – 71 Gold Standard abandonment, postWW2 US hegemony, post GFC money printing (post covid money printing and many more) debanking: at the bank level – bankruptcies, branch closure and “de-cashing” not just Nigel Farage but thousands being denied bank accounts – Financial Exclusion – cf their nicey-nicey narrative of Financial Inclusion the difficulties faced by older people who aren’t tech savvy banks being increasingly intrusive in enquiring what people plan to do with their own money when they withdraw it :-O plans for CBDCs to increase their power debanking Russia John Law in France in the 1720s as a precedent (Mario’s YouTube episode on this) Max Weber being completely correct a century ago (& cf Star Wars 1) when he foresaw that vast bureaucracies enable tyranny – NB in re Financial regulation and the never ending list of extra-parliamentary rules to be followed Deutsche Bank employs more Laywers and Compliance people than bankers :-! pre 1985 for centuries there had been zero regulation and historically the Police not Banks dealt with catching criminals Gold repatriation and precedents – Venezuela and Germany and the difficulty or impossibility of recovering one’s Gold from the Bank of England :-O no limit to rehypothecation of Gold in London – a mechanism to subdue the Gold price and increase price volatility to make traditional money less attractive to people High Court ruling against Venezuela getting all its Gold back (on pretty flimsy grounds) :-O FT/Reuters survey showing that Gold Repatriation is a trend expected to accelerate China’s increase in infrastructure including more physical less paper Gold markets the complete loss of the essence of finance – trust – by countries in the US and UK in particular cf LME Nickel trade cancellation Moscow Gold trading plans non-dollar trading on the increase and expectations of how this will be managed going forward BRICs plans for gold-backed currency/trading – recent information from Russia US states legalising more use of Gold in a currency context as bottom-up initiatives within the West Mario’s expectations for the rest of the year Maneco’s affiliate/sponsor shoutouts: in the UK Use promo code maneco64 to get a 0.5% discount on physical gold and silver bullion purchases at https://www.goldinvestments.co.uk/ currently with the promo code 1 troy ounce gold Krugerrands at only 1% over spot in the US Affiliation with @ITM TRADING, INC.  FREE Gold & Silver Wealth Strategy Call With Lynette’s Team https://calendly.com/itmtrading/maneco64 or call 866-989-4368 Use referral code Billy or maneco64 at Miles Franklin Precious Metals Investments: https://www.milesfranklin.com/ And much much more

In this episode we dive not just into the world of Islamic Finance and Fintech but the practical lessons we can learn from the world’s oldest “ethical investment” tradition. In particular in an ever-changing world there is always the need to extend and interpret any given set of “ethical finance” guidelines for new circumstances. The Islamic world has had vastly longer to get to grips with managing this confluence of principle and practice in a Heraclitean world of constant change. In LFP223 we heard about Fintech in the Middle East and North Africa in which regions there are varying mixtures of traditional/Islamic/sharia finance and conventional/modern finance. Umer Suleman has worked in the public sector, at Ernst and Young, HSBC and now at Wahed – an ethical and values driven investment platform based in New York – – an ethical and values driven investment platform based in New York who are perhaps the world’s largest Islamic Fintech – and so is well-placed to appreciate both conventional and Islamic Finance and their complex relationships and how they have changed over time. He is also a member of the Islamic Finance Council of the UK and so well-immersed in this topic. In this episode we get to understand the challenge and opportunity of serving a specific demographic. Needless to say especially younger demographics around the world in general are becoming ever-more demanding in terms of products and services in the tech age and this too certainly applies to the more religious of the younger Muslim users of FS who may no longer be prepared to accept the inevitable compromises with a world where the Financial System operates almost entirely based on interest that previous generations may have tolerated/had to tolerate. So plenty of education, rich content and lessons to be learned beyond one particular demographic! a World Bank report from 2015 estimated that global Sharia-compliant Finance assets were around $2trn Imam Al Ghazali – an 11thC polymath – theologian, philosopher, economist and much more the highly-recommended film by Salazar about Al Ghazali’s life The Alchemist of Happiness  by contrast the modern “anti-polymath”-isation of knowing more and more about less and less Al Ghazali was an influence on Adam Smith Umer’s career journey and eventually being able to incorporate his interest in Islamic Finance with his career in finance ethical investment systems of any type need both a basis and a pragmatic way of applying rules made at some point with a different world at a later point; what are the key sources for Islamic Finance? an overview of Islamic Finance principles of investment and banking detailed primary and secondary rules and how they are applied the 5% pragmatic “fall from perfection” realpolitik of permissibility but what needs to be done in those circs what percentages of Finance and Sharia-compliant in the major regions – challenges over lack of data and interesting reasons therefor <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

The next in our geographic coverage series on global Fintech past present and future with a special bonus of a taste of Fintech in Asia as Michael, a former Fintech founder himself turned VC at Runa Capital had just returned from a three week trip all around the region. Like all regions the US has its peculiarities – not least of which the structure of State and Federal regulation which depending on your vertical can be – as it were – more federal or more confederal in flavour. As in many circs the US can also be a country of extremes on the one hand gestating the likes of Paypal one of the very earliest of Fintechs yet on the other being one of the longest holdouts in the western world for the widespread use of cheques. So in this episode we look at some key themes past, present and future for Fintech and given the US’ outsize role in the global ecosystem there are also some generic topics such as the evolution and possible future or not of key Fintech “inventions” such as P2P and Crypto. Topics discussed include: three weeks in Asia and places visited to explore local markets in Fintech in several countries at one extreme a sitrep of Fintech and the market circs in Indonesia at the other FIntech themes/issues in Japan MIchael’s career journey from founder through to VC and what he has learned from many different angles on Financial Services Michael’s perspective on Fintech and its long term history in the US from transatlantic cables onwards key early Fintechs in the US idiosyncrasies and challenges of doing Fintech across the US the federal-“confederal” axis as affecting different verticals within Fintech on the other hand pretty consistent consumer behaviour across States which is easier getting regulatory federal licenses or state licences? Paypal and Plaid as examples of “having to grow fast” to avoid regulatory challenges Fintech and geography within the US – changes in this pattern in recent years P2P trends in the UK and US compared a deep dive into the many reasons for P2P’s success and eventual running into the sand compared to expectations of potential competitiveness versus banks key points the P2P model was missing and need fixing if a huge P2P is ever to emerge the crypto journey in the US and challenges with its business model that need solving to take it to the next level general overview huge success and potential of “Fintech as a tool for services or vertical SAAS businesses” “there are still a ton of markets and verticals that are incredibly inefficient done using paper… poor matching of buyers and sellers” attaching payments to such products is more defensible, more efficient and keep clients for longer based on many types of transaction comparison of this – Fintech moving into unexploited areas by banks as opposed to the P2P/crypto attempt to use a battering ram to knock through the main castle gate for banking which has been fortified over centuries greater success of the Fintechs vertical SAAS B2B+ businesses going forward the huge uncertainties within FS per se and how this affects a VC’s approach to investment within Fintech historic precedents for VC investments in difficult times and patterns learned “it’s no longer growth at all costs” 6-18mts as the period of great uncertainty shoutouts for Runa Capital who are early stage investors across different geographies and verticals And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Is the structure of regulation in need of refactoring? Do we have a kind of Reg Debt situation – cf Tech Debt – where organic growth has led to complexity, inefficiency and indeed regulations stretched beyond their original purpose? In this episode Alistair and I discuss some specific examples that would indicate that after as much as a decade of evolution it is perhaps time for a rethink or a refactoring of the reg base. Integrated Finance was founded when the co-founders found challenges in scaling their prior Fintech startup. Alistair has worked in FS, founded a Fintech and now a Fintech to help Banks and Fintechs so has experienced the regulatory issue in the round. Topics discussed include: robot vacuum cleaners – good/bad? Use cases. “endless nuance” Alistair’s career journey from FX, through building a banking as a service provider and now infrastructure to help Fintechs and others who need to incorporate some elements of finance scale their businesses more easily the challenges that unbundling the banking stack leads to when one needs to recombine it again to deliver a seamless product or service the importance of understanding nuances in an industry when searching for innovative startups reactive regulation always playing catch-up e-money licences as a Case Study of where the explosive growth of the largest Fintechs has outstripped the original intention or envisaged parameters of the regulation Revolut and Wise have around 20 million customers each operating at scale across multiple jurisdictions and multiple regulations really stress tests the regulation and over-/under- laps context of banking regulation and the unbelievable lack of a sustained rise in interests in the Fed’s stress tests – so the challenges of regulation go well beyond Fintech into the biggest Banks the “dear CEO” letters from the FCA as a measure of challenges the FS/Fintech industries are facing comingled client funds and treating customers fairly as key examples of barometers of issues the priority of VC investment is always growth rather than making things robust ASAP and the inflow of VC funds as major factors in this context a further context of banks going bust right now Railsbank’s challenges as an example of major FinTechs in London running into problems post failed funding raises interest rates as the common factor behind bank problems and a tighter funding environment which segments of tech are finding it less of a challenge to raise right now current focus in Fintechs and how that relates to regulation/compliance regtech as being fine but the challenge of buying more and more computer systems and then having to manage them all the operational overhead of regulation and tis computers even if one is the scale of a Citigroup crypto as another challenge the need for greater collaboration – whether mergers of regtech or of shared data or of enforcing more sharing of data important necessary new directions for regulation – esp. standardisation major example of bad actors where each fintech on its own has to manage the situation but the whole situation would be much easier if the sector shared data in re ~”For Fintechs although they are nominally in Financial Services it’s become a compliance game they are in” accept that from Day1 as the major imperative and buy-in the necessary products/services impacts of marketing/client-led business direction the philosophical challenges of linear rules, assumptions and so forth in terms of control mechanism in a world that’s deeply non-linear cf the (alleged) attempt in the UK to “level-up” education in the 1970s (via the abolition of grammar schools) ending up with the result being levelling-down too big to understand/manage/regulate organisations along with the way too big/complex organisations the nature of money is at the heart of all the challenges in FS regulators are left to try and manage the mess that cannot be managed from the inside from the outside with linear rules – the cost of compliance with which just further reduce the profitability of the industry and increase commercial pressures will Finance per se itself be refactored? shoutouts for Integrated Finance And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

The latest in the LFP’s coverage of Fintech in geographical regions and this fascinating balance between the bottom-up and the top-down, between localisation and globalisation of Fintech. As always when covering vast territories containing many nations,  “regions” contain widely differing conditions, not least of which background of FS  structure and infrastructure in the first place. Said, a partner at Global Ventures, is well-placed to give us a tour d’horizon as not just is his day job being a VC specialising in the region but he was previously a CEO, COO and consultant so he is someone who really understands business in the round as well as being born in Jordan and living in Dubai. Topics discussed include: working on a bid for Liverpool Football Club valuing football clubs intangibles and goodwill Said’s career journey the Japanese spiral staircase model of career progression where is the Middle East/MENA? Where does it end? geography versus practicality from an investment perspective – the latter often including Turkey and Pakistan eg which is a long way away, whilst eg not including Iran general background to the region/subregions 2022 Tech space VC funding was ~$3.2bn of which just under $1bn went into Fintech historically roots in Levant and Egypt where the older tech companies were born cross-border as an ancient background 400m population in MENA of which 100m in Egypt early stage companies often focus on Egypt/Saudi/UAE as their heartland Etihad and Emirates as GCC exemplars of quality the relevance of geography and historical trading patterns general needs across the region and how they vary Fintech in the GCC trends in the subtypes of Fintech affinity to partner with Fintechs to lower cost to serve GV’s Fintech in MENA 2020 Report (main bones of which still apply) when did Fintech take off in the region? a VC community per se in the region emerged roughly 2010 onwards some key regional Fintechs Fintech in the Levant and North America what leads to differences key exemplars the development of Fintech in North Africa is further ahead the further east Fintech and Islamic Banking – some Fintechs offer one or the other or both going forwards unique opportuniti9es in the region and “leapfrogging” shoutouts for Global Ventures what GV are looking for in terms of founders And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

The majority of successful exits for companies are via trade sale (not that given the media hype you’d necessarily imagine it was anything but IPOs). Furthermore the percentage of companies that list on an exchange is falling meaning, that along with the economic circumstances, private companies and remaining in the unlisted space is becoming ever more important. In this episode we dive into the whole soup-to-nuts process of how to trade sell oneself, what the stages are, what the obstacles and challenges and what the benefits are. Trade selling a company is an eternally important route to not just realisation but to the growth of the company’s vision being realised. Thus this is a reference episode for something that every founder should understand whether they get to this stage and go this route or another. It’s one that can’t be ignored – least of all perhaps in the current economic climate. Goji were on the LFP way back in the day in LFP047 in 2016 when the founder Jake Wombwell-Povey was discussing the Innovative Finance ISA and David was employee number one. He moved on to become first CTO then CEO and is now at the last stage – regulatory approval – for Goji’s merger with the giant Euroclear – such a vital component of the whole global post-trade financial infrastructure. So along the way Goji must have done a thing or two right – IF ISAs hardly being a huge thing these days with so few P2Ps remaining of any stature. Further correlating this is that Euroclear approached them. Topics discussed include: running. A long way. having worked with a former guest on the LFP who also liked running quite some way how best to avoid injuries social company and running, running a hundred miles being a later developer re extreme fitness David’s career journey transitioning from being a CTO to CEO Goji’s mission to increase access to private markets the IF ISA motivations for realisations as critical for the eventual choice of route of which way one ‘realises’ private equity as an exit route changes in the private equity markets and how the firms operate differing motivations between private equity acquisition and incumbent acquisition completing a gap in the coverage of an incumbent as a great trade sale case ability to scale exponentially differs hugely between “just IPOing” and – as in Goji’s case becoming part of one of the worlds largest firms moving into their arena dating ,mating and marrying as it applies to looking for a Trade Sale parameter differing paths to finding a Trade Sale buyer grows naturally out of a commercial relationship – banks often use this route – grows more organic — cf after knowing a colleague for years getting into dating and mating – there is a lot of mutual knowledge in the first place marriage brokers – investment banks, consultancies, accountants increasingly incumbents have their own teams scouring for appropriate acquisitions (as in this case with Goji who were approached by Euroclear) planning versus reacting for a Board re exit strategies both happen <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

It is a well-known trope that although failure is a challenge rapid success, though more desirable lol, can be too.  In this episode we dive into the fascinating Case Study of Ecospend who went from startup to trade sale to world open-banking payments leaders Trustly in five years. Along the way they beat off incumbent competition for one of the UK’s largest accounts that of HSBCs self-assessment payments. Which as you might imagine amounts to quite a few transactions. In this show James Hickman, CCO, discusses the journey and the experience thereof along with lessons relevant to all tech firms well outside of Fintech. The journey starts with the build, then the marketing, then astronomical success, then the operational concerns attendant on having your volumes increase astronomically up all the way to the strategic implications for a business with such sudden success – various possibilities for raises to enable continued scaling or a trade sale and Ecospend checked-out both eventually preferring one route over t’other and explain their thinking in their situation, your firms might of course be different. At the end of the day it comes down both to rational business calculation but also to the preferences and long term aims of the founding team. Overall quite some story and a tale that the cliche that massive success can be a right challenge/pain isn’t always correct. Topics discussed include: James career in the media including as a media VC experiencing the massive tech disruption in the media world interest in open banking and pivoting from a long media career into Fintech processing £13bn within a few years of founding a firm is it risky having no “physical bank” bank accounts the pivotal role of getting the tech right right from the start in terms of the whole rest of the business chain that flows therefrom “anti-MVP” scaling tech volumes scalability of systems “if you are a small business you should start by servicing a small customer and build from there. We actually did the reverse – we started with possibly the biggest customer we could imagine” one million transactions in January the super-importance of easy scalability in tech success in general for all tech sectors scalability pre the ubiquitous tech infrastructure we have around us today people challenges in a tech business “business is all about the people” operational challenges – making them smoother fears of being over-run by customer service requests need to genuinely deliver value to buyer/seller and leverage existing societal trends “our volumes are growing by 500-1000% per annum and employee base by less than 10% per annum” – an amazing metric for the power of digital if one gets it right key success factors mindset as importance – “walking the walk” is a rapid transition when competing against the big players how easy is it to connect to UK banks in the current schema for open-banking strategic implications of massive increases in volumes management challenge of operational and strategic challenges at the same time central role of the founders vision checking out the VC route and lessons learned/advice no cannibalisation of product with Trustly who are PE backed and in the same space “in these emerging technologies you always see consolidation and smaller players merging with larger ones” – a useful point for many Fintechs (and others) to bear in mind in the current phase of growth/economic climate the media focus on “unicorning” as very misleading re the general path of successful startups/businesses looking for synergies in trade selling cultural aspects of exponential rise in volumes and trade selling – how does one approach these? alignment of objectives and cultural alignment as super-important shared vision and personal relationships Ecospend’s products and services “a replacement to cards” – multiple benefits the next generation of payments going live with Hargreaves Landsdown the road goes on forever… And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

In this episode we discuss VC early stage investment and whether there is a “VC funding winter” as some have called it or whether just a correction. How should early stage founders who want to raise funds maximise their chances of doing so? Few VCs go down to early stage investing but what factors do they look for? Funding is harder to come by right now but it’s still there. What themes and approaches help? Is it indeed a good rather than a bad time to create a startup? Dr Ric Schaefer is a Partner at Target Global which is a pan-European technology investment firm with more than €3 billion in assets under management. Whilst investing across all stages of the startup to realisation  lifecycle they are relatively unique in investing from pre-seed to A rounds. To date via six global offices they have backed 15 unicorns and also have an investment in Revolut who you may have heard of. Topics discussed include: training for a triathlon starting from a standard level of fitness Ric’s career journey from tech through the banking crisis to VC-dom ten years of VC and Angel investing the experiential difference between BigCo and SmallCo life what a VC looks for in early stage investment include: people who bring an unfair advantage those who have had a successful venture before the right vision and clear plan those who have the “founder gene” and the drive to solve a problem also like to back operators who have been number two or three in a business that has already scaled success isn‘t just about money but about winning and building a sustainable business examples form people who retire but just wither in absentia a daily challenge the focus of early stage VCs need to be on building a big company, not just optimizing finances different types of founders who can do the ‘zero to one‘ or the scale up from 1 to 10 or growth from 10 to 100 preference for founders who can “go the whole way” VC funds still have a lot of capital available, but it is more competitive for newcomers Non–institutional capital such as crowdfunding and angel investors have pulled back due to more competitive dynamics. It is a good time to start a business – there is a wider pool of talent available and infrastructure has been built to enable businesses to be built far faster Valuations are more reasonable than the last two years and people are looking more at multiples and the fundamentals of the business Ric’s expectation of the best sectors for fund-raising and progress Target Global is an early–stage venture capital firm that invests across the lifecycle of businesses, from inception to growth invests in consumer, software, fintech, marketplace, and digital health sectors has offices in Berlin, Tel Aviv, London, and Spain, and has backed over 100 companies VCs invest in relationships and a series of rejections does not mean a no forever  Target Global is looking to invest in founders with a unique advantage. And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Fintech is a Big Thing. India is a vast sub-continent. Naveen Bindal, the co–founder of Enkash which is India‘s largest spend management Fintech, joins us to discuss Fintech in India which was one of the first movers in Fintech worldwide and is now by some measures the world’s  third largest Fintech marketplace. Naveen started his career some 23 years ago as a developer in a credit card company working on payment processing and with banks. Having been involved in the Indian FinTech space for some 10 years along with his co-founders who each also have two decades in FS and tech under their belts he is well-placed to guide us through its evolution past, present and future. Topics discussed include: why India‘s timezone is 30 minutes out of phase with almost all other countries Naveen’s career journey the move from being a dev to being a CEO Naveen learnt how to be an entrepreneur by working with a startup within an existing organisation the principal FinTech hubs in India are Mumbai, Delhi and Bangalore Mumbai is the banking hub of India due to the presence of the Reserve Bank of India,  Bangalore is renowned for its tech talent and New Delhi is an extension of the other two hubs due to its status as the capital Fintechs may start in other cities but almost invariably end up gravitating to one of the big three cities  The Indian fintech industry started to grow following the financial crisis of 2008 and the emergence of e–commerce Payment aggregators, P2P lending, payment gateways, digital marketplaces, prepaid cards, and UPI all emerged between 2010 and 2016 IndiaStack has been hugely influential in Indian Fintech’s rapid development it was introduced in 2017-18 to facilitate digitisation and verify the identity of those making transactions Aadhaar was introduced, which provided a unique identifier for every individual, and biometric scans for fingerprint and retina scans were captured the pertinent/ironic etymology of chosing Aadhaar for the state’s identification system are privacy concerns an issue in India over a national identification scheme? in 2012, we saw the real growth actually happening where multiple payment instruments, quick checkout experiences sort of emerged, including but not limited to wallets, one-click checkouts, tokenization, and various other faster checkout mechanisms demographically about one billion people in India have access to smartphones with half a billion people living in rural areas around 70 million SMEs exist in India, and between 70–80 billion dollars of volume is processed on UPI each year given the size of the marketplace Indian Fintechs have little reason to expand internationally although different dynamics occur in the pure tech space Consumer payments have been the dominant sector of fintech in India, but insure tech and reg tech are also becoming increasingly prominent reg tech allows fintechs to access the data needed to verify businesses and individuals The Reserve Bank of India (RBI) provides the regulatory framework for fintechs to operate in conjunction with regulated entities embedded finance and open banking will be key areas of disruption in the future in India Enkassh provides a platform for CFOs to automate mundane tasks it has 150 employees and processes between $3.5–4 billion annually for 9000 businesses Enkash is looking for partnerships in other geographies to distribute some of their products And much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

There is a real art to how a founder manages his companies equity. If he gives it, or its derivative, share options, away too fast for too little value – whether funding or staff – he will be giving away his creation on the cheap and losing control fast. Vice versa hoarding it to himself will produce inadequate funding and not top-notch senior staff. If this is the spectrum then there is in addition a whole dimension of the terms and conditions over equity schemes. There are plenty of hidden elephant traps for the unwary even for “Day1 co-founders” (eg a simple 50:50 split yet one co-founder puts most of the work in…). Furthermore we have what was “pre-tech” an administrative nightmare of managing hordes of shareholders and regulations/laws thereto. Vestd who formed in 2014 and have thousands of companies on their platform offer a “guided SAAS” product where the platform is closely allied to tons of experience in re. Founder and CEO Ifty Nasir formed the company in 2014 after a lifetime’s international career with BP and considerable experience on the internal corporate finance side of deals and equity including at one point hiring Lord Sumption on a challenging deal. He joins us today to discuss the whole “how hard can it be” (as always “harder” and in this case “quite nuanced”). Topics discussed include: the first Yorkshireman on the show? Lord Sumption’s office Ifty’s worldwide career in BP founding Vestd experiences with estimating funding costs and how much equity it takes to Angel and to get a business off the ground seeing how many times sweat equity went wrong…  “so many errors are people don’t think about it” problems even on day1 of NewCo – case study of a new business and some basic pitfalls “Putting together shareholder agreements is the difficult thing” agile partnerships as a template conditionality as key Case Study of the first company I worked for the fluidity of equity, salary and time in contributing to the growth of the NewCo “there are a lot of really great tools around this – eg Mike Moore’s ‘Slicing Pie’ “ challenges eve with equity-low, cash-rich NewCos in the consultancy space the experience of many founders in managing the Cap Table that its no big deal, a spreadsheet for a few years and then suddenly a great panic/problem – dynamics that come from not fully understanding a topic and the risks being run and then those risks crystallising the different standards of retaining or not retaining equity when one leaves a company definition of Cap Table does it include Share Options as well as issued capital? fully-diluted Cap Tables clearing up the cap tables and how the importance of this has changed the raise dynamics with the advent of firms like Vestd the role of technology in changing these whole dynamics share option schemes and when one joins the company leading to very variable rewards and management challenges – my experience tiers of management sitting around not trying hard any longer as an outcome of a poorly designed lock-in/vesting scheme good leaver/bad leaver terms the UK’s EMI incentives scheme and the tax incentives/benefits thereof 70% of such schemes are “exit only” discussion of the challenges of overly-locking in staff and waiting for exits which in difficult markets may be far far away tailoring schemes per employee and how much easier that is with platforms “guided SAAS” product/service and the regulatory restrictions thereon where and when to use accountants, lawyers and Vestd Vestd’s plans for the future And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

AI/ML has been around for a long time but recently hit the headlines with ChatGPT which has broken every tech record in the book for a piece of tech that attracts users faster than any other tech ever. If Generative AI is the hot topic of the day though what is happening behind the scenes with more prosaic Fintech use cases. Tristan who is CEO of commodity price predictors and now Insurtech ChAI first joined us in 2016 for an an overview of AI/ML and updated us more recently in 2019 to talk about then hot-topics. What has changed – what is with Generative AI, what are the behind the scenes factors driving change, how are fintechs being invested and indeed how is investment in Fintech being affected by AI? We first heard from Tristan a long-term academic and Fintech-er in the whole AIML realm in 2016 for an overview of the topic which has remained in the top 5 most downloaded episodes of all time. In 2019 re joined us to discuss hot topics in AIML in particular prediction, explicability, alt. Data sources and self learning. Three factors have been driving an astonishing rate of change – computing power (NVIDIA been increasing by a factor of 10 every year in recent years), an abundance of data sources beyond all recognition even a few years ago and advances in computer science – not least of which Transformers (the T in GPT and a leap forward from RNNs), so-called self-attention and RLHF – reinforcement learning from human feedback. In the image space the likes of, GANs (Generative Adversarial Networks), Latent Diffusion Models and the clever use of efficiency gains. Taking the current eye-catcher as a metric GPT1 was released in 2018, GPT2 in 2019 and GPT3 in 2020 with its offshoot ChatGPT in 2022. GPT3 has 176bn parameters compared to GPT2’s 1.5bn and was trained on 570GB of data compared to 40GB. Huuuge changes. But this is just the sexiest, most public face of AIML which as a whole has been finally one might say getting somewhere are computing power continues to increase. As we heard in LFP219 the ex-GCHQ-ers at Ripjar have a database of 18bn news articles which they can process. Once one gets to this kind of scale of computing then – even avoiding the unfortunate anthropomorphism implicit in terms like intelligence or learning – if we simply revert to the oldskool term data processing then we are getting to a stage where the results from data processing are truly phenomenal. Even I have shifted to keeping track of the latest developments having been pretty sniffy about the uber-hype of a field that generally failed in most of its initial objectives set out by pioneers in the 60s. Topics discussed include: experiences using ChatGPT – Case Study with monetary policy in economics the need to “learn to dance” with Generative AI systems comparison with the early search engines – cf now there is a verb “to Google” the challenge of tying up Generative AI systems to the real world and hence late to the party and suitable for a subcategory of use cases media hysteria in re as a phenomenon machines making us machines one of the unmentioned reasons behind its success is that much of human thinking/discourse right now is bland and predictable Barnum statements Tristan’s overview of AI changes over the past four years way more pervasive field now so broad it’s hard to be an expert in all subsilos people no longer afraid of it nor hypnotised by it people less sceptical re fund-raising an rather view it as something that should be using it by default cloud means that everyone can become a data scientist at much lower entry costs Tristan has changed his mind over concern about not sufficiently sophisticated users of cloud AI tools – in particular the leap forwards in user interfaces encapsulation so many people have used them the interface has been perfected the importance however of domain understanding if less so AI understanding explicability remains highly important but quite often you can retrofit explanations to an AI system’s output furthermore human understanding is generally limited to “Key factors” and “ranked by importance” rather than anything more complicated hence the need to map onto such a framework when explaining it anyway how retrofitting works the explosion of data sources and the implications – eg satellite data implications of this for the field – excess choice isn’t always a good thing even if barriers to entry have been lowered spurious correlations in neural nets cf hallucinations in generative AI notable examples being that the number of Nick Cage films correlates with the number of drownings in US swimming pools autopilot systems cannot be generative systems due to reliability challenges – it doesnt matter if you get a wrong chat response it does if you crash into a tree the artificial media hype cycle as well as emergence thereof in social media future developments hottest tip/best bet – quantum computing + machine learning what would be a huge surprise – sentience (a category error as per 2023 New Year Special) ChAI developments and moves into Insurtech and productisation for producers in hedging real world exposures And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Financial Services is all about Finance which is all about money. However almost all FS employees just accept “money” as a thing in the same way they accept gravity. Which is an odd thing if you think about it. Most of the time this wouldn’t matter but at turning points such as we are at now if can be disastrous, What money is and the regimes around it have varied widely over time and space. However it is true to say that Central Banks are a total exception – indeed the ne plus ultra of Big State Centralism (which is leading to so many problems). Most FS-savvy folk know that a dollar when the Fed was created in 1913 is worth a few cents now – not a great testimony to the performance of an institution whose job is to “protect” the dollar. Few appreciate the intimate connection between monetary collapse and societal collapse. Examples however are  legion with perhaps the best known being Rome (see what I did there re legion? :-D) , Revolutionary France or the Weimar Republic. As the fallout from those were respectively a civilisational collapse in the West that literally took centuries to recover from and two brutal dictatorships we would be well advised to pay attention to this otherwise recherché topic. Central Banks are profoundly antidemocratic and as we saw in 2008 in the US and the UK chose – unlike Iceland – to bankrupt their people in order to preserve the wealth of banks and bankers bonuses. Prima facie they seem to correlate to the greatest frequency of wars ever, higher inflation and government spending and a de facto tax on savers and the elderly. At a minimum there is a difficult charge sheet for them to address. Mario who runs the highly successful YouTube Channel maneco64 is a long term student of the history and current practice of monetary policy as well as like me decades ago having worked successfully in the City without having any real understanding of money per se. Mario joined us a year ago in LFP197 to discuss “Money in the 21stC: Ballooning Printing of Fiat/QE/”MMT”/Govt Debt, CBDCs, Crypto, Dedollarisation, Hyperinflation, Gold”. In this episode: Mario updates us on what has happened over the past year re money and multipolarity and where this is all going we dive into an assessment of – simply put whether Central Banks Are A Good Thing Mario outlines what he would do to rebuild society and money if in a parallel universe he was Governor of the Bank of England or indeed if western money and societies collapse and need to be rebuilt Mario looks forward to how Gold is becoming more important in a multipolar World. Central Bank buying of Gold was at its highest level in 2022 since 1967 and China has started releasing its monthly purchases thereof Topics discussed include: Skiing this year in Switzerland the moves in China re money, gold, exchanges over the past year multipolarity growing rapidly – Xi’s visit to Saudi Arabia comparisons of the UK losing global dominance of sterling and the US and the dollar right now the catastrophic impact – even to the US – of its freezing of Russian Central Bank reserves in 2023 – a jumping the shark if there ever was one (even in WW2 the Reichsbank Reserves were not frozen…) A thousand years inflation in England and the huge correlation between inflation and war and having Central Banks who controls the Central Banks? The fact that opinions differ widely in itself is a great pointer to a democratic deficit Central Banks and permanent war cf sound money, small government, no wars, peace permacrisis allows ever-more land-grabs by the State the median wage of the bottom 10% in the UK is lower than in Slovakia drilling in to the phrase Central Banks – the Bank of England’s role has eg varied hugely since its formation in 1694 – there are many possible roles of a Central Bank the fractional reserve and creating money out of thin air existed vestigially from the start “lumbering the debt from the monarch to the people” – prior to the BoE the monarch was personally responsible for war debts – the BoE was the start of a process of moving war debts from the accounts of the King who started them to the people who didn’t monetary policy in Anglo Saxon England – shaving of coins and the role of Kings in producing standardised money William Cobbett (see below) who 200 years ago wrote of how having a Central Bank makes fighting wars much easier AHM Ramsey a critic of the BoE who wrote a critique forecasting doom from the possibility of Private Banks to create money out of thin air in an inverted pyramid the origin of the expression “pay through the nose” what is the opposite of having Central Banks? How would Mario operate as the Governor of the Bank of England? multiple options at a detailed level the opposite of monopoly is competition abolishing legal tender laws challenges of transitions between monetary policy regimes – and in large part hence Napoleon and Hitler 16thC as private money worldwide and the origin of the London money markets comparisons between revolutionary France monetary situation and western economies today Alan Greenspan, future Federal Reserve Chaiman: “An almost hysterical antagonism toward the gold standard is one issue which unitesstatists of all persuasions. They seem to sense-perhaps more clearly and subtly than many consistent defenders of laissez-faire — that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.” 1967 Mario’s Crystal Ball for 2023 and future trends China and Russians motivation Maneco’s sponsor shoutouts: Affiliation with @ITM TRADING, INC.  FREE Gold & Silver Wealth Strategy Call With Lynette’s Team https://calendly.com/itmtrading/maneco64 or call 866-989-4368 Use promo code maneco64 to get a 0.5% discount on physical gold and silver bullion purchases at https://www.goldinvestments.co.uk/ Use referral code Billy or maneco64 at Miles Franklin Precious Metals Investments: https://www.milesfranklin.com/ and last but not least we don’t even have time to dive into the Bank of England’s role in the demise of PM Truss via its announcements and timings and handling of LDI issues for pensions where even US State Federal Reserve officials have commented that this is obvious (see The Critic article for example)!   Recommended books: David Graeber’s “Debt – The First 5,000 Years” (amazon.co.uk) especially on the inevitable collapse of fiat monetary schemes going back to the Bible William Cobbett “Paper Against Gold; Containing the History and Mystery of the Bank of England, the Funds, the Debt, the Sinking Fund, the Bank Stoppage, the Lowering and the Raising of the Value of Paper-money” (1815) Cobbett wrote the first volume of 28 Letters while in prison for two years (1810-11) for opposing the flogging of some militia men. It it a history of how Britain funded the war effort against Napoleon by increasing the national debt, suspending the use of gold, and using paper money. Cobbett also chronicles the economic hardships imposed on ordinary working people by the disruption of trade, war taxes, and inflation of the currency.  Two key book references on the connection between monetary policy and social collapse: “Fiat Money Inflation in France” Andrew Dickson White (free pdf) “When Money Dies: The Nightmare of Deficit Spending, Devaluation, and Hyperinflation in Weimar Germany” Adam Ferguson (amazon.co.uk) And much much more

Increasing automation is what the tech revolution is about – by definition. In this episode we dive into this topic starting at the highest levels – Government intelligence community quality tech at GCHQ (where Jeremy and his four co-founders had been long-term employees) and the immense value of technology transfer between state and private sectors. We then move through some of the more challenging questions of definition of terms (super-relevant for computers and their usage by business) and that these terms (eg crime, terrorist et al) vary per location – a real challenge for global enterprises. Finally we move on to a particular speciality of Ripjar (who recently completed a $37m raise) – adverse media screening  – which is not – as it sounded to me – a PR function but rather the automated processing of billions of news articles for credit/regulatory/business relevance re, as it were, early-warning/detection of say credit or regulatory or ethical problems with clients while these are still over the horizon rather than at the front door (or inside it) of the business. Topics discussed include: bearing crosses – jetlag and karaoke/Christmas parties GCHQ roots and centre of the highest levels of technology and smart folks BBC Micro (computer) and Defender GCHQ one of the three intell agencies in the UK the impact of 9/11 and the “war on terror” – esp at a technology level the nature of the hugely challenging questions of automation of intelligence gathering from internet content defining terms – the importance, slipperiness and relative nature around the world – theory and practical impact for clients adding to the above styles of media writing vary per geography as well multiplying the technological challenge major focal points of crime for Ripjar from the hardcore to the softer end like corporate malfeasance which can be much more relative the realpolitik is that companies need to follow local laws and regulations as well as add on their ethical layer (if they have one lol, not all do…) from a practical perspective re solutions Ripjar give the flexibility for clients to define/search as they wish what is like working at an intelligence agency the multiple challenges of transitioning from a government intell agency to a startup/commercial environment the challenges of a life spent focusing on criminals – from Nietzsche’s “stare long enough into the void and the void stares back into you” to not implicitly as a person seeing the whole of humanity as potential criminals the value of creating a startup in this context intell agencies culture of spinning-out and being open or not – GCHQ and Israel agencies as Case Studies helping governments understand the spread of ISIS propaganda and giving the ability to take down horrible material tracking the emergence of online extreme behaviour the huge range of industries that Ripjar has worked with and how this broadens their perspective the core relevance of the FS industry in terms of setting good practice/leading edge approaches to data and criminality data siloes as a real issue ransomware – including situations where it has been deployed to hospitals or emergency services :-O the connection between some ransomware activities and State-level players detecting and analysing ransomware how data sharing would make this sphere so much the better adverse media screening wide use cases automated reading of news articles and screening them for risk factors for the business early-warning signals in open-source material the 40 year database of 18 billion news articles the challenge of the narrowing of the overton window on leading topics to – in western media at least – key The Current Topics having no diversity of angle broadening this to a bifurcation – Brexit, Trump etc what percentage of practical issues are grabbed by this phenomenon the ability to potentially measure this change in discourse over recent decades probabilistic measure of what might be “the truth” practically-speaking for lower-level credit-related events say there may not have been a narrowing of the window and indeed eg with reporting of court cases there was not much breadth in the first place as that tends to be factual 0.9% of total news articles in the database have relevance to topics Ripjar’s customers care about measuring/modelling a “3D Overton Window” the time-factor in interpreting data and the evolution of data at a practical level for banks fake news Jeremy “fully expects ChatGPT to be used to write media articles in the future” the need to include this in the algorithms/approach and to filter out machines created information commercial shoutouts for RIpjar and Labyrinth their decision-support platform 71% growth in their business in 2022 longer term plans And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

This 2023 New Year Special forms the fifth is a series of five about how technology is changing us directly and indirectly by empowering tyrants. It is by far the most ambitious, empowering and positive of all suggesting that we use the insanity as a spur in our sides to seek to flee Plato’s cave, escape the Matrix and speed up our path to awakening in search of love, light and healing. Sound like a cool topic, a worthy goal to you? It has five chapters: Metapolitical Awakening Psychological Awakening The Wasteland and the Grail Existential Awakening A Magical New World There is a huge shift in consciousness going on now. The old world is dying in front of our eyes. However a new world is arising and there are a phenomenal number of green shoots growing for those who will look and find. Let’s take a journey from understandable disenchantment and toxic metapolitics, through  an examination of the deepest roots and causes of this disenchantment in ourselves, in our civilisation, in our hugely increased use of technology, to a world of re-enchantment. Don’t choose the old world, fear and control, choose the new world of love, light and healing… Share and enjoy!

So yet another fresh topic we haven’t covered so far <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Ricardo is a Brazilian serial entrepreneur who joins us in this show to give us an overview of the key features of Fintech in Central/Southern (aka Latin) America. The region includes the worlds highest valued neo-bank which has reached an astonishing 65 million client base in less than a decade – most of whom never had a bank account before, so amazing things are happening down there.Which are the major players out of the nigh on three dozen countries? What are the trends. What historical and geographical features lie behind the patterns we see? How do Latin American Fintechs expand beyond their home territory? Pismo is a Brazilian Fintech who provide core banking technology globally and who raised an impressive $108m B round last year… it only seems like yesterday that $10m was an impressive for a B. They have offices in many countries around the world and for example power N26 neobank in Europe.   Topics discussed include: Brazilian proposals the recent Brazilian elections and a brief overview of Brazilian politics what gets Brazilian annoyed re the lumping of countries into Southern or Latin America quick historical overview was Brazil discovered “by accident” or “on purpose”? decomposition of Spanish empire vs Brazil remaining whole different ethnic proportions depending on the relative histories of Latin countries as with much of global politics now there are high levels of polarisation and plenty of craziness right-leaning candidates tend to be more pro-multi-polar world Ricardo’s career journey from investment banker through to serial entrepreneur Banco Garantia Brazil’s emulation of Goldman Sachs the impact of a visit to Californian Finmtechs funding Pismo in 2016 are Central and South america different regions? where does the Caribbean fit in? migration between neighbouring countries especially in Spanish-speaking Southern America leading to business connections Braizl is very separate from the rest of the demi-continent due to linguistic differences what does the American phrase “Hispanic” mean? Is Ricardo a Latino as he doesn’t speak Spanish? Mexico, Brazil, CHile, Argentina as the major players Lat Am population is ~640+m Brazil is ~215m and Mexico ~130m – so together they account for half the population of Lat Am Brazil has about 60% of total investments in Fintech many countries too small to attract Fintech investment regulation varyong greatly and leading to very different outcomes Brazil being lax in re has led to greater creativity 55% of Lat Am population are “underbanked” during the pandemic there was an increase in the use of cash :-O Brazilian Nubank (formed in 2013) – the world’s highest valued neobank (~$65bn) – is Lat Ams largest bank with ~65m regular clients, 80% of whom use it as their primary bank account, and most of those didn’t have a bank account before the lower limit for Fintech banking the major role of the Brazilian regulator in not being strict that led to this explosive performance examples of Argentina and Fintech Chile and digital wallets Mexico is the second most important market with strong regulation framework two major divisions of Fintech in Lat Am – “payments and rails” and “lending structures” corruption and political stability and consequent economic stability expansion within the region very little global expansion – Nubank and Pismo are more the exception than the rule as a comparative Case Study it took Pismo much much less time to deploy their system in India than it did in Argentina geography counts way less than other factors in Fintech establishment an overview of Pismo’s products and services and many offices around the world Pismo’s current direction And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

What actually is due diligence? How does it work and how should you if you find yourselves approaching one best prepare for it? Barr Blanton CEO of Crosslake Technologies, whose strapline is “private equity and management teams trusted advisor for technology”, and half of whose business is doing due dil joins us to outline what due diligence is and how to handle it best for both buyer and seller (or in the case of VC raises when raising). Crosslake advise 500 Private Equity firms worldwide and have done an amazing 3,500 due dils in recent years so who better to ask? Due diligence is a topic that few of you may have come across but it’s an absolutely vital one to know about – not least of which as the most common case is that VCs/PEs funding offers are always dependent on due diligence – rather like your offer to buy a house is conditional on a survey first. There is a parallel here with another funding phase change stage that of IPOing. As we have heard in prior LFPs on How To IPO unsurprisingly the companies who get themselves in shape well ahead of deciding to IPO fare best. The same applies to due diligence yet the realpolitik is that plenty leave the shall we say “internal tidying up off the office” to roughly the day before the inspector comes round leading to a non-ideal experience. Topics discussed include: Barr’s extensive international business experience the Philippines and Manila cemeteries as connection to ones ancestors Barr’s role as a Partner at McKinsey what led him to become CEO at Crosslake the mission of trying to be the preeminent advisory team advising tech investors and their management teams Crosslake active on six continents with ~300 staff with ~500 Private Equity firms as clients and hundreds of companies within the PE portfolios half of the work is one due dil and half on helping management teams drive improvements through technology what is due diligence? three main aspects – risk/value/compliance relationship of buying and selling management teams by the time the due dil commences “trying to create a common set of facts” focusing the exercises on key issues that are most important to the buyer is it not anomalous that if one takes over a public company that there is no due diligence? not all due dils are the same the competitive aspect of due dil in a competitive situation esp re timeline the main five or six workflows within a due dil the emerging “product diligence” technical due dil due dil-ing vast businesses and indeed the need to limit the scope even in a median  scale business how to design due dil scope/focus and “threshold of pragmatism” Crosslake have done ~3,500 due dils in recent years :-! managing the whole orchestra of players in eg an M&A situation dynamic between say initiating and duel dil teams different sequencings of work how to make your firm perform well in a due dil – high level recommendations “it’s your chance to tell your story” products and services that Crosslake provide shoutouts for what Crosslake needs more of right now And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

All sane Fintechs will have a security system to try and keep out as many attacks and fraudulent would be clients. However the nature of the attacks and frauds is getting ever-more hardcore. As Martin says in the show back in the day to rob a bank you would have to take significant personal risk when getting into and out of a bank with your shotgun and a high risk of capture by the authorities. These days the risk:return is way lower (and one reason for much higher levels of fraud) as one can sit in a warm office on the other side of the world, far from the local police force and in no physical danger). What is to be done about this massive change of dynamic? Resistant.AI specialise in adding an additional layer(s) of protection(s) to existing systems and with an approach analogous to antivirus software – namely using AI to detect the latest patterns of attacks and updating their software hourly to keep pace. As Martin explains there is no such thing as perfect security – however as with most of evolution perfection is not required – merely being one step ahead of the competition. If you make yourself a harder target to defraud than your competitors the fraudsters will got for them not you. How is this done? What are the challenges? Topics discussed include: Resistant.AI has 9 co-founders :-O the decision making process amongst so many founders the founders prior security startup in 2005 was formed at university and sold to Cisco in 2013 the emergence of Fintech as encouraging fraud due to the much lower risk of “robbing a bank” outlined above the Czech love for American folks songs and the origins thereof in the 1930s and why it persisted through to the 1980s why the central Europeans are prominent in security (the prior LFP on security being with a Hungarian) technology never solves problems, it only ever shifts them – why? implicit vs explicit challenges with secs for security software “the curse of any software process is it lacks common sense” adding more and more “commons sense” via a system such as R.AIs which builds in ever more patterns of recognition the tradeoffs in security systems ever stronger security versus minimising friction for clients in the US Army when you turn the computer on it takes one hour downloading updated software before it is ready for use.. :-O the challenge of infinite information on people leading to more security but more authoritarianism comparisons with antivirus software the academic theory on the number of loopholes in systems the practical solution to this challenge the ability to learn very quickly is essential case studies of practical issues in security South East Asia as the epicentre of the most sophisticated attacks “Fintech and Crypto lead to the ability to steal in a scalable way” lack of “catching criminals” by the police when it comes to international digital fraud the realpolitik of cleaning up your client list – how many of your current clientbase are criminals? automated customer risk scoring based on their behaviour cf all-too-often manual processes in banks focusing banking staff behaviour of the real catching criminals bit rather than dealing with false AML alerts “typically only ~0.1% of the proceeds of financial crime are ever tracked down” greater detail in resolution of customers into narrow groups as aiding the ability to detect criminal activity tracing the actual flow of funds from fraud layered-defence – identity forensics  how to use R.AI via their APIs charging models “we don’t want to replace we want to augment and improve” “our mission as a company is detecting criminals and stopping them” why clients come to R.AI – predominantly losses and too many false alerts that require manual intervention, knowledge – have some clients that one feels uncomfortable about shoutouts for what R.AI need right now to be even bigger and better <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Swiss Kickstart Innovation are highly active in enabling deals between Fintechs and incumbent FS – when we recorded the podcast for example they had facilitated an extraordinary 300 negotiations in the prior 10 days. As we haven’t dived for many years into the whole challenge of young Fintechs managing to close deals with incumbents whose heartbeat, whose pace of change is radically different from the newcomers, it is rather overdue a visit? What has empirical evidence found in the meantime? After all you can probably meet someone new and get married in less time than it takes to seal a deal with some of FS’s slower-moving incumbents.  Katka herself has a varied background – from Czechland through US government to Kickstart in Switzerland – all of which enables her to take a 30,000 feet view of the challenges and opportunities. The Art of Diplomacy is invaluable in marriage-making on the corporate front. ;So what are Kickstart’s experiences? What how they found works well and what not so well? What should all Fintechs that need to do deals with MegaFSCos (that’ll be most all) have on their checklists? Topics discussed include: Switzerland as attracting Fintechs from around the world to Kickstart Heating dissidents Katka’s working at the White House Katka’s career journey parallels with prior gigs anecdote from the night Czechoslovakia split into two how language is a real challenge – even in one country – the same terms might have different meanings for different parties – and often do when the parties are a startup and an incumbent with very different world views expanding the linguistic point to include culture an archetypal Case Study of a Fintech coming away from a meeting thinking that a deal is on and the incumbent coming away and thinking “never again” “politeness” from Switzerland to Japan as leading to misunderstandings “it’s a lot about the indirect communication that takes place” the role of diplomacy in re dealing with procrastinators and those who want/need to fill their diaries to “look busy” borrowing ideas from dating apps personal connection in a business conversation versus business connection what surprised Kickstart on the upside in the process intell arrived at “over a beer/coffee” outside the office vitamins vs headache tablets – challenge of understanding pain points in an organisation differing success criteria on both sides navigating the complex internal landscape’s of organisations that might have hundreds of thousands of staff need commitment from both sides avoiding “free meals” – esp when PoorCo is expected to feed RichCo filtering “dates” in the first place learning from personal experience understanding the frustrations on both sides negotiation – trading off ‘time’ versus ‘great deal’ creating competition between incumbents setting a 10 week time horizon Kickstart’s space in terms of Fintechs it works with, verticals and target incumbent markets 70& of Kickstart’s Fintechs they supported have been global and 30% local future trends And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Payments orchestration is all the rage. But what is it, and amidst all the hype is it all it’s cracked up to be? Good questions and who better to ask than serial entrepreneur Kristian who founded Cellpoint Digital back in 2007 to do precisely what became known today as payments orchestration and indeed their website says they are the global leader in it. Thus Cellpoint have the claim to not only be the first to do orchestration but to do it before it existed and to chart the convergence and confluence of multiple factors which have made it the complex beast it is today. The origins of the whole payments value-adding by third parties came about as having a global business means having to handle global payments. And this involves multiple banks in many countries, many regulatory regimes, many currencies and people travelling around as well as buying online, Not only this but there is a whole back office set of processes behind all this ensuring that the money that you expect when someone “paid” actually ends up going kerching in your bank account in the right amount at a later date. Not only is there this saving money on managing and processing payments for merchants but what was to become orchestration evolved into more pro-active ways of actually increasing merchants cashflow – we are well beyond the world of the late 90s when smart money realised a red button would get more clicks than a green one. As we hear Big Merchants do payments orchestration as they can get an over 10% increase in $$$ inflowing. Wow… :-O Kristian leads us through these thickets in the clear and methodical way that you might expect form someone who has spent 14 years watching this scene slowly develop. Topics discussed include: Denmark and orientation/identification versus the content and Scandinavia Danish colonialism from England back in the day to Norway and Iceland until mid-20thC Vikings and post-Vikings a Scandinavian joke :-O <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Africa in general narratives is all too often treated – like many matters – as a super-low-res jpeg, more as if it were a place, one which is complex and widely misunderstood, or not even understood. Africa is, of course, in reality it is a vast continent of a billion people, over 50 countries and countless different languages and peoples. Africa has fractal complexity. Zoom in  at any level and you find even more complexity – whether geography, peoples, languages, history, governance, development (from hunter-gatherers to Chinese railways faster than any in the UK) or, as we shall see Fintech where with M-Pesa formed in 2007 Africa has been one of the global leaders in Fintech per se. In LFP210 we discussed the fact that its largest country, Nigeria, has not just three main tribes but another 180 peoples and languages. In terms of physical size it takes less time to fly from London to Cairo than it does from Lagos to Cape Town. This makes covering Africa from an investment perspective extremely challenging in all aspects. In this excellent tour d’horizon long established techster Gbenga, born in Nigeria and now working for Global VCs QED investors as their African head of Fintech investment  joins us to literally lay out the landscape and explain to us how one even approaches such a vast and varied territory in terms of finding key focal markets – five in QED’s case – to firstly invest in and secondly act as hubs for spokes to other local markets. Finally away from all simplistic narratives it should be noted that QED has a global fund – the corollary of which is at the highest level – QED are simply trying to find Fintechs that are great per se with no allowance or bias towards or against region, merely trying to find great founders and great businesses. Topics discussed include: we start with a little dip into the fractal nature of history; the fractal complexity of European imperialism – it was never one thing; ranging from eg at one end the insane and evil rule of King Leopold of Belgium in the Congo to the British West African abolishing slavery. Zoom into even the British “Empire” and one finds that it was not a thing but was rather a collection of dominions, colonies, protectorates, mandates, and other territories with very different governance structures and structures from self-rule, to direct-rule to indirect-rule SIr Frederic Lugard “British Rule in Tropical Africa” bemoans in 1926 the narratives created at the time by the Labour Party on socialist grounds that the narrative about Africa was “exploitation by bad capitalists”. He also mentions that the Labour- even a century ago – party was foremost in pushing global rule by international committees. The UN/WHO/WEF et al have deep and perhaps unexpected roots. the creation and naming of Nigeria – origin of the name and who proposed it – Lugard’s wife or mistress? European involvement was perhaps much shorter than commonly understood – by the late 19thC only around 10% of Africa was under European control whereas after the so-called scramble for Africa by 1914 this was 90%. Half a century later and roughly all powers had packed up and gone home. modern state governance is often a significant issue – even at the trivial level of Fintech. However as the Ibrahim African Governance index shows at an aggregate ‘score’ level there is a huge range from at the bottom 19, 20 /100 [Somalia/South Sudan] to, on the mainland , at the top Botswana/Tunisia, at 66 & 70 nor is the continent free of external influence to this day –  the Chinese being a major source of funds and infrastructure. Equally the hyper-greenies of “the West” appear to pay little attention to terrible facts such as that in terms of essential minerals for so-called “green energy”, 60% of cobalt and lithium comes from the Democratic Republic of Congo where unregulated mines use children as young as seven as miners and who breathe in the cobalt-laden dust that can cause fatal lung ailments the worlds debt to Africa for vetoing a vote for WHO to have complete control over future global pandemics Gbenga’s career journey through Google and London Fintechs how one starts reducing the complexity of countries, regulatory landscapes, economies… “70% of Africa’s GDP comes from 11 key markets” the impossibility of generalising even within a specific vertical within Fintech in Kenya ~75% of all payments are digitised – more so than in the UK – yet in Nigeria only ~15% 5 key markets Egypt, Francophone North Africa, Nigeria, Kenya, South Africa investing outside of “core markets” – hubs as gateways to the more local region “Fintech-ready” criteria logistical challenges of the distances and geographical and linguistic complexity consumer behavior varies widely eg Nigeria vs Kenya Egypt Fintech activity Francophone North Africa trends VC activity in the continent and patterns thereof Japanese VCs, yet Chinese State involvement and no VCs global competition for capital West African Fintech lack of being able to generalise even across smaller regions – eg in many ways Ghana is more similar to Kenya in Fintech than to Nigeria South African FS/Fintech – “a tale of two South Africas” and the relative Fintech focus in the two different markets three reasons why Fintech is important and on the rise in Africa now in Nigeria ~60m debit cards yet only less than 0.5m credit cards “investing in Fintech in Africa is a very complex thing which you have to take a very local approach to” QED’s investments in Africa to date QED shoutouts And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Incumbent banks – as Fintech has found in the past decade are rather safer from having huge slices of their business nicked than many Fintechs have imagined. However Allica Bank, established by some pretty experienced individuals have a plan. In this episode we dive into that plan along with quizzing Conrad, who was last on the show as Founder/CEO of Funding Options on what the pros and cons of being a past Founder/CEO are – a little discussed topic. We also take a look at the SME market and its three main components – micro-businesses which are somewhat private-client like, medium sized businesses and then what are effectively small corporates. Once again we get a great example that any word, any labeling of a category – whether it be Fintech, Africa (coming soon) or SME is not really a thing but a handle on a series of things – which of course themselves can be further zoomed-into. Topics discussed include: Crossrail/the Elizabeth line as fast and efficient from Canary Wharf to the City – at a minor cost of £19bn to build and many years behind schedule once a founder always a founder? the romanticisation of Found-ing versus the reality Conrad’s thought process behind in the end not re-founding “being a founder is just dramatically harder than you ever realise” “the highs are higher but, believe me, the lows are a lot lower – nothing comes [in a salaried job] close to not knowing whether you can pay your staff tomorrow” OTOH the pride of having created a great working place and a business out of nothing the paradox of having to attract VC interest via “fake it until you make it”, whilst when engaged having to have a grown-up conversation about how things really are comparisons between Facebook and teenagers thinking they are the only one not going to parties and founders who know their own challenges but read all about others promoted successes the antidote being only ever to compare others press releases with your own press releases UK SMEs 5 million micro-businesses 500,000 established SMEs – the “M” in SME – Allica’s focus x0,000 “small corporates” the dynamics of micros/medium/small corporates when it comes to the economics of commercial bank coverage the huge number of complexity within the above structure how the change from localism in banking has led to the lending equivalent of the funding gap how internal MegBank dynamics lead to them always moving on one direction driven by economics of coverage – with the “M” type of SME being somewhat between two stools – the mass more private client type coverage and the more bespoke corporate coverage role of asset-backed lending where VCs have been going wrong in approaching this marketplace the problem with incumbents when it comes to leveraging technology in the gap why Allica chose to be a bank to address this lending gap when other business models are available parameters for deciding to become a bank in order to lend to SMEs price wars how to avoid being crushed by the ten ton gorilla in a huge market the need for multiple products as a bank Allica’s upcomng SME current account Allica’s shoutouts, need, raise, and desired new colleagues (about 300 staff at the moment) And much much more! Share and enjoy <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Africa is one of the lynchpins of Fintech’s origins – key origins being Zopa’s invention of P2P borrowing/lending in 2005 and mPesa’s mobile money+ in 2007. In this episode we take a look at more recent innovation in Nigeria, Africa’s largest country with a population of over 200 million. Piggyvest who launched in 2016 and whose only round to date was a $1.8m seed now have an amazing 4 million customers saving and investing via their app. In 2021 alone, the platform paid out over $582 million to its users In this jolly episode (we could do with an injection of Nigerian positivity and humour in Europe right now) Odun, co-founder and COO,  guides us through an introduction to Nigeria, her entrepreneurial career and the background to Piggyvest, the seminal role of a wooden box (!) as well as the future. Africa in a world beset by American “wokism” is all too often seen at an insanely low resolution as if it were a place rather than a continent of a billion people and some 50+countries. We will cover Fintech in Africa per se in an upcoming episode but first we start with no generalisations just an great tale of entrepreneurship and a prime example of how the digital revolution in FS is worldwide, needing just the right amount of tinder and entrepreneurial spark to enable better deals for not just  the over-served global zilllionaires but for every smaller sums of money – in Piggyvest’s case one can save and invest from as little as 20 US cents. Topics discussed include: the three main peoples of Nigeria – Yoruba, Igbo and Hausa and their geographical distributions in total an amazing 180 languages are spoken in Nigeria broadly Christian in the South, Muslim in the North with many traditional religions/practices Nigeria is the world’s 6th largest country and 3rd largest speaker of English (education is all in English) the majority of tribal groups marry in-tribe although in Lagos there is more intermixing advice I was given in the early days of the podcast about Nigerians the spirit of Nigerians around the world Nigerians as having a great sense of humour unaffected by US/European puritanical wokism Odun’s career journey starting as an entrepreneur right out of university with some friends the origin story of Piggyvest amazingly involving New Year’s Eve, twitter and wooden boxes ( I joketh not) “digital wooden boxes” two weeks later the MVP for Piggybank, as was the change from Piggybank to Piggyvest once investment became added to the service list the background of Nigerian banking – high costs and hassle, low speed et al 22 banks in 2016 – all identical processes Nigerian millennials’ expectations difficulty/impossibility of young people getting loans Nigeria lacks a credit system – examples of how such a system works the economics of young tech folk in Lagos challenges of savings and investment investment minimum ticket size for traditional brokers was ~$2k acquiring a micro-finance licence the challenge of booting up a business from marketing to banking services the key role of a lead investor 700 users in the first year – painstaking start snowballing from focusing on great client service creating trust in a low trust environment the importance of retaining a human face and the founders being known never over-promised and so never under-delivered the development of FS regulation in the UK and in Nigeria challenges of engaging with regulators especially in a changing environment for FS the key to succeeding income distribution in Nigeria and the practical addressable marketplace for Piggyvest 47% of Nigerians live in extreme poverty by World Bank standards ($3 per day or less income) the narrowest submarket for Piggyvest is around 20 million people the key to growing using only a tiny amount of capital 70 staff at present dynamics of raising capital in Nigeria where does a successful West African Fintech expand next – geographically, within Africa by population, overseas in countries with similar economic characteristics? pan-African or emerging markets? what other successful Nigerian Fintechs have done Nigerians anywhere can use the app Piggyvest are currently raising a Series A shoutout for partners And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Chargebacks – the ability to retrieve your money from your bank spent when spent via a card in case of dissatisfaction after a purchase and an inability to resolve the situation with the seller – are one of those rare items that affects everyone from consumer through to merchant and including naturally the financial system in between. As we shall here they are super-complicated in reality. Monica Eaton first came across the challenge of chargebacks way back in 2008 when she had an online retail business but was naive about them and learned the hard way. However she resolved to understand the situation better and conducted extensive research into why she had been suffering from so many chargebacks which led to a website labeling over 100 reasons for them that retailers might be able to avoid, The Force was definitely with her as within a very short space of time major media outlets and retailers wanted to know more and interview/consult with her. Fast forward to today and the company she founded to take this further – Chargebacks911 – now has some 400 staff in four offices around the world and have successfully protected over 10 billion online transactions recovering an astonishing $1bn+ for their clients. Topics discussed include: cool in Seattle, steamy in Tampa and hot in London chargebacks as the Achilles heel of her retail business the absence of any useful Google search on the matter back in the day what is a chargeback and how they work – they can be don months if not a year later Monica’s research found that she was most at fault for the chargebacks learning from the experience by contacting every chargebacking customer and ending up with 106 different reasons accidental chargebacks contesting chargebacks how Monica’s website on chargebacks went viral now offices in US, UK, India, Singapore they have customers in all parts of FS as well as retailers making chargebacks work well for you qua consumer – what is Monica’s advice? make claims early rather than waiting protection against misrepresentation, no-delivery and many other circs finding the right type of card and right bank up front to ensure any claim will be dealt with well fraud and over-claiming – how the industry manages this how protections work with bank-branded major-scheme credit cards – two layers of protection some differences between different schemes and various use cases the multi-dimensional nature of assessing cards properly UK Section 75 for retailers – chargebacks are a growing problem with some 20% yoy growth an ecommerce transaction is 50x more likely to turn into a chargeback than a cardholder present transaction making this process digital turning it into actionable data esp. in a world where the rules are always changing the importance for a retailer for challenging chargebacks 50% of consumers who file a chargeback will do it again within 60days if the chargeback is not contested for Fintechs/Banks – dealing with the huge complexity of changing scheme rules, regions et al a huge challenge that needs technology to sort it efficiently what the future holds… tensions of reducing the numbers yet wanting to make purchasing more frictionless improving ones chargeback performance in a digital world shoutouts for Chargebacks911 services and products – including some alt payment mechanisms a parallel product is FI911.com – dispute processing for banks shoutouts for more employees esp in Singapore and Brazil And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Many founders establish businesses and only later realise they are hard to fund. Others aim to create “fundable businesses” yet lack the passion for a long journey. Somewhere along the spectrum is a happy medium which must be balanced along the growth curve as phases change and different types of funders come and go. In this episode serial entrepreneur Dileep Thazhmon, fresh from raising a $180m C round navigates us through this territory and describes how the balance is always changing. Jeeves (tryjeeves.com) help businesses organise all employee expenses under one unified platform which includes flexible funding in multiple currencies. As their slogan says “built by entrepreneurs for entrepreneurs”. They have over 3,000 clients in over 20 countries which is a phenomenal achievement given that the business only opened to its first customer in 2021 :-! Topics discussed include: the renaissance happening in Miami and Florida as a whole as a centre for business crypto and Miami, no income taxes but what had Florida lacked in the past? Dileep’s business background the golden age of building new businesses engineering from round one with fund raising in mind versus passion businesses and balancing the two is there such a thing as A Good Business per se? investors want to invest in Big Ideas  in Big Markets with Big Outcomes not all businesses need the whole series of funding rounds need to have commitment that will last to a project Dileep’s 3-Ts model Team TAM – Total Addressable Market Traction Team & TAM are what early investors, Angels et al are looking for in seed rounds By A and B Rounds Traction becomes increasingly important – you cannot keep selling ideas/people/market By C round and onwards you need to have built a really good business – not just as it were early promise and ideas pick spaces in which you can pivot as you will probably have to pivot categories of investor and the rounds they prefer we must not forget all the great smaller scale businesses – not every great business grows to huge scale build something you want to build – why this is essential for a long journey taking funding means you have to be offering the chance of a logarithmic shareprice growth – again not something all business ideas can/could/should generate types of CEO who are best at marketing each round – its rare to find one who goes the whole way from Seed to IPO and beyond managing the C-Suite team through the journey a company itself is like a living organism a big part of being a CEO is [with limited resources] knowing which part of the business to invest in and not invest in at different stages of the journey prioritisation for the phase is a real skill – you need to knock, as it were, different balls out of the park to succeed at each round/phase what is the one function you need to get right at each stage/round Dileep’s product metric speed and mobility are the most important early skill – retaining this as layers are added to the organogram how scaling is a very different phase from the “zero to one” managing the necessity to have folks from incumbents versus not becoming an incumbent living in the “grey area” a C-suite team as a pelleton, managing its competition as it speeds up changing nature of functions as the company grows the key hire Dileep found essential to Jeeves growth the characteristics to look for when recruiting C-Suite force-multipliers a long section on choosing  investors, managing investors, the type of relationship you need to have, how to create them and how things work in good and bad times… how this has worked for Dileep in Jeeves the need for specificity in what a CEO needs – something CEOs often fail at the impact of excess capital in the world the real nature of VC businesses – services business, reputation business what kind of VC ends up complaining to his colleagues about the investee company and what they did to create the “unexpected” problems Dileep’s thoughts and advice on CEO-ing companies in difficult economic times nuances beyond the obvious cut expenses, increase revenue what you need from the team issues around “default alive” companies for company, investor and founder Jeeves products and USPs broader business bank plans And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

The Fintech wave spreads ever wider – and in the case of retail financial markets as Nicky puts it if you can buy a book at midnight why can’t you buy a share? It’s a good example of how the digital paradigm has changed customer expectations and oldskool ideas about limited “market hours” – there of course for the convenience of the suppliers not the customer – carry little weight. Equally becoming a marketplace is no trivial task, which is why we have seen so few Fintechs attempt it. Spectrum Markets is a wholly owned yet separate subsidiary of the IG Group and so this episode offers us an opportunity to discuss a dual topic – not just retail markets but how incumbents should structure being able to host revolution as well as evolution. So in this show Nicky guides us through several years of attempting both to revolutionise financial markets whilst attempting to do this with both the strengths and the challenges of a major incumbent. Topics discussed include: biscuits and sugar… managing sugar addiction flying on airplanes and a recommendation for Top Gun II Nicky’s career journey and how a corporate lawyer ended up founding a business – not the usual career path Spectrum’s status as a stand-alone business within IG Lexus and Toyota and the invention of telephone banking in the Midland Bank as case studies of successful intrapreneurship the need to be relatively fresh in the organisation to be an intrepreneur the yin-yang challenge of keeping distance whilst keeping onside – innovating yet being consistent with a major brand Mastercard as another Case Study and how that operated George Lucas and what became Industrial Light and Magic and the challenges of managing the balance “constant tension” “you need faith and trust from key people in the organisation who have seen it happen before” competing for resources and cf having external investors “markets follow people” people’s changing expectations not just of technology but of how they manage their own money examples of expectations/usage re branch banking vs online banking “allowing people to do what they want when they want” the nature of markets as place, marketplaces, “venues” for buying and selling – hence the need to create a forum for such what a market is re rules and an attractive place for brokers to increase their business and then the time taken to persuade/seduce market participants into the club liquidity as an example with a baker – you can buy 6 loaves but perhaps not 600 – equally a baker will have shelves with stock on them so it is not a market as such as markets are not stores of product but venues for the exchange of product comparison with nightclubs – marketplaces create the club but don’t dance, don’t drink in the club on-market vs off-market trades how do brokers provide liquidity 24×7? Technology? People? how new versus established brokers approach this automation versus more people challenge if you want a reliable service you need 24×7 people as the tech will always be at risk of failing/bugs “you need people when technology goes wrong” “you can’t eliminate mistakes with technology, you can just reduce them” the problems of the LME who not just suspended trading but voided contracts LME seeing the “market” not as we have discussed but prioritising (allegedly) the health of the market participants trust as absolutely key – even deeper than contracts and courts why lawyers understand the limitations of rule-based systems more than tech people how Nicky sees the future of technology and retail FS markets how Nicky sees the interaction between business, FS and technology which markets Spectrum – a pan-European Stock Exchange – serves and which client groups what can be traded on the exchange and the future of the product-set £1.35 billion turnover last year and on track to increase that this year by 200% And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Financial services – whether mainstream or alternative – depend entirely on Trust – trust that the pieces of paper and coins in your pocket will be taken in exchange for goods (no longer 100% true), trust that a piece of plastic in your wallet will “tap and pay”, trust that you do “own” those securities a website says you do etc etc. However Trust is at a real premium right now and indeed ever since 2008. Who can you trust with your wealth? The State? Central Banks? Banks? The dollar? Sterling? The Euro? Stockmarkets? Your pensions? Crypto? “Stablecoins”? In this episode Omid, a decade-long veteran of the crypto world who as well as lecturing on said same at the Columbia Business School is the author of “The Story of the Blockchain: A Beginner’s Guide” which gets an impressive 4.5* from 82 reviews on Amazon. He is also the author of his upcoming “Re-Architecting Trust: The Curse of History and the Crypto Cure for Money, Markets, and Platforms”. So we dive into the nature of Trust per se – how that has worked, or not, how it is underwritten in the FS system, how it works in crypto and how the existing system and crypto might coalesce/crash together with CBDCs. Unless you have precious metals in your hand the shocking truth is that all of your wealth is dependent on “the system” and trust in that so this is a core topic. Topics discussed include: booking holidays back in the day as well as now and what this tells us about the false promise of a digital world as well as choice theory the origin of Omid and his name Omid’s introduction from having less than zero interest in crypto to now being a published author the seminal impact of doing his first crypto transaction and seeing that he directly owned bitcoin as opposed to traditional financial assets where there are always armies of intermediaries between and your assets the theft of bitcoin as dropping the penny that there is some kind of unique reality to the crypto that there isn’t to other digital assets eg music writing and lecturing about something as a real acid test of how well you understand and can explain something how Omid’s second book mutated into being about the core concept of trust and how that works in the Crypto world the paradox that the more trust based a system the greater the incentive to hack it the asymmetry of trust – hard to gain easy to lose did the State restore Trust in FS in 2008 or did it not? Eg rise of Bernie Sanders and Trump as rooted in this “the system is broken” moment along with a little after taxpayer-subsidised banks paying record bonuses and doing record levels of foreclosures can we trust Central Banks given their record? mainstream is “trusted” as the Central Banks cover up its errors via money printing etc – cf crypto less trusted as no central State institution buries its errors CBDCs as a potential merger of the two worlds above the architecture and naming of FS institutions as relating to the need to create a feeling of trust as “trust is the product” money bubbles and crypto bubbles neither money or crypto is “really real” – both just bits in a bank computer OTOH eg Bitcoin has an engineered-in limit to how much the supply of it will grow cf conventional money where politicians and central banks print it without limit Bitcoin also has its own built-in payment system compared to conventional money which needs external institutions – hence way harder to stop transactions CBDCs as a State-driven desire to head off independent ~money “CBDCs will be terrifyingly censorable” and their growth will not be limited but in the hands of bureaucrats and politicians how crypto and CBDCs might live side by side how much control is possible – the ultimate uncontrolability of mankind “bitcoin cannot be regulated at the core architecture layer” and hence what regulation there is is at the surface/margin – eg where you go to trade into or out of it the moving of bitcoin mining as an example of distributed systems resilience Omid’s overall view of crypto the future – utopia? dystopia? or something in the middle can crypto be anti-totalitarian, anti-dystopian as opposed to many cases where it is just a different type of dystopia (theft/ponzi cryptos etc) Omid’s Medium Blog and consultancy/advisory work And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Over time the Fintech wave reaches ever more complex topics. FX per se was one of the earlier low-hanging fruits to be digitised – a simple, near immediate transaction that everyone understands as they do it all the time when going on holidays. However its taken much longer – a decade or perhaps two – for Fintech to touch the more challenging topic of hedging. Hedging is far more challenging as it is one that even FX professionals find challenging to decide upon/recommend. I think this angle is best summed up by the adage “one mans adage is another mans position” – history is replete with examples where so-called hedges turned into actual positions in all sorts of markets. It is into this challenging area that serial entrepreneur Seth Phillips is taking Bound “a digital FX broker built for the 21st century” who are looking at ways to make FX hedging available in much lower ticket sizes than MegaBanks find it profitable to deal. As we discuss in this show it is not just the classic case of an SME who have expenses in one currency and revenues in another – with both being uncertain – that is affected by this. Many startups might have for example dollar funding of capital but operate say in the UK in sterling. FX is very volatile these days and swings of 10% or so can easily flip a company from profit into loss. But traditionally many SMEs faced with the complexity of hedging and inaccessibility of hedging products end up taking this unwanted and hedgable risk. In a world where there are plenty of business risks that they are voluntarily running adding an additional unwanted risk is not ideal. Topics discussed include: Seth’s growing up in a Mormon world and his fascinating personal journey therefrom including some years in Helsinki a quick summary of how Mormonism relates to mainstream Christianity [HT to YouTube channel HeavyDSparks] my journey from school days religious aversion to a realisation that apart from the “is this logically true?” angle to religion which I took when at school to the “what is the effect of this belief set – true or false on society?” identity in the modern world – if one moves from the traditional identities of one’s grandparents – religion, nation etc – then society lacks a central totem/mast and can fragment (from the Latin religio “to bind”) how “choose all of your beliefs and have what identity you want” is very tiring compared to ones grandparents days; formal identities leading to challenges for those who never fitted in – but is there – eg and esp now – any societal structure that does not have dissidents/folks for whom it is an uncomfortably tight shoe Seth’s career as a serial entrepreneur starting even from during his college days and through into Fintech Bound’s origin story putting three things together – personal and family professional pain re FX risk as well as having backgrounds in this area and seeing what could be done FX risk not existing centuries back when silver currency worked everywhere followed by the gold era from late 70s BigCos started needing to hedge and being served by Big Banks the market gap though this led to for smaller and medium sized companies who were not profitable for BigBanks to serve two sides of the coin – forward FX risk and on the other side the desire of a business to focus on it’s relevant business risks and not to experience incidental/tangential risks lack of expertise in SMEs around hedging as another barrier to entry even once the size of trades is smaller and accessible via digital technology the education component around the pros and cons of options, futures, and forward markets as the “hedge” the challenges of hedging uncertain amounts and thereby ending up incurring FX risk the most common practice is not to hedge and the most common risk to over-hedge (leading to a FX risk) Fintechs are often exposed eg in Fintech SAAS fee stream in overseas currencies or capital denominated in another currency the challenge of which day to choose to hedge? This can swamp the impact of choosing the best price on any given day how do Bound handle the educational piece of hedging – especially given the FCA regulatory constraints? what the Bound.co offering/interface is shoutout for talent Bound are looking at in terms of getting even bigger and better And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

“P2P”, invented by Zopa in 2005, was one of the main unique business models that was at the core of the early success of Fintech businesses in disintermediating banks and offering better/cheaper/faster experiences to both lenders and borrowers. Over the past nearly two decades  P2Ps have had many fates – variously succeeding, going bust, committing fraud, listing, being sold and transforming into banks .  In this episode we dive into the lessons learned from this history with Jaidev Zopa’s CEO who oversaw the transformation of Zopa from a pure P2P model to one mixed with banking and then more recently dropping P2P altogether. What lessons can be drawn from the whole experiment? What worked well and what did not? What was it in the end. what set of circumstances, that led the firm that originated the whole idea to abandon it? In this conversation Jaidev and I discuss the two-decade arc from both our perspectives from P2P not existing, through P2P existed but we didn’t know of it, through to hearing about it and initial reactions with a deeper dive into Jaidev’s years starting in 2014 first as COO and then as the CEO who drove the recent changes in business model. We end with reflections on not just in what ways is the current Zopa different but also in what ways is it the same? One may change an engine in a car without affecting the car’s appearance, appeal and indeed destinations it drives to. what a crisis in domestic banking amounted to in the 1970s Jaidev’s childhood family experience of the positives and negatives of borrowing as experienced by his family and how that has changed his attitude to the business to this day the two-sided coin of FS – the numbers and the people affected by the numbers having senior management listen in to challenging calls with customers the changing morality over time and geography of whether the lender or borrower is seen as morally at fault when things go wrong Jaidev’s career development from training as an engineer when Jaidev first became aware of P2P and his perspective then along with overlaps with his work at Capital One my strategic critiques back in the day of the ~”cheaper” rather than needing to be say 10x “cheaper” than banks as well as the lack of an equivalent to the interbank market the Zopa t-shirt and Jaidev’s reaction the helpful aspects of the P2P market which were necessary to success but in a way able to be implemented using different models an unchanged value-proposition at Zopa over the period Zopa’s long-term very low default rate from unsecured consumer lending – which is very notable default rates have been around 3% constraints in the P2P model where it worked well being a “credit broker” versus holding some risk oneself comparison of Fintechs who are effectively farmers versus those who are hunter-gatherers the advantage of being able to offer lending and borrowing products via P2P in terms of not requiring large amounts of capital or super-long regulatory approval process compared to a bank – and thus the usage of P2P with hindsight to bootstrap into a bank the need that Zopa found to diversify products and income streams to wider categories of lending and borrowing – the large restriction implicit in where P2P worked well the emotional reactions to Zopa becoming a bank and then later closing the P2P business line how does cost of customer acquisition versus the comparatively low cross-selling possibilities compared to a full suite of banking lending products affect the P2P model? the payback period of typical Zopa products for the business implications of differential Target Addressable Markets for P2P and banking models Zopa’s banking transition, like its invention of P2P being taken up later in the US eg by Lending Club and Sofi what has surprised Jaidev in the transformation of Zopa into a Bank in the past few years – what has gone slower and what faster? what are Jaidev’s thoughts and feelings now looking back on the transformation of Zopa the confluence of external factors that led to Zopa withdrawing from P2P badly-run to fraudulent P2Ps leading to platform failures which damaged the sectors reputation regulators tightening the regulation as a result which made P2P less attractive the cost of “doing credit well” can make a return in P2P but perhaps not a sufficient return for the capital providers compared to the wider banking model flight to safety during Covid leading to a drying up of funding the single main factor to the loss of strategic appeal of P2P Funding Circle being supported by the Governments business support lending schemes during Covid in what ways is Zopa now fundamentally the same as Zopa back int he day in terms of what it aims to provide for its customers? new products – Zopa’s debt consolidation calculator which saves the average customer £300 the huge size of the current addressable market for Zopa how Jaidev sees the next five years and Zopa’s plans for the future And much much more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f642.png" alt="

Scandinavia (Sweden/Norway/Denmark) and the Nordics as a whole (Scandinavia +Finland +Iceland) have massively outperformed most parts of the world in Tech and Fintech when considered compared to the relatively small sizes of the populations. Why is this and where is it all going? In this episode Erik who was part of cresting the world’s first online mortgage bank in the late 90s, has been a CTO of many leading regional banks and is now founder and CEO of Naktergal discusses not just where the region is placed now in Fintech but the deeper origins of tech success before wrapping up with the outlook for Fintech in the region. Naktergal offer a range of digital lending platforms for banks and Fintechs as well as modular add-on solutions for the inetivable weak-points in different existing legacy/big-brand tech solutions in banks. Topics discussed include: summer in the Swedish archipelago Crimes of Passion series by Maria Lang set in 1950s Sweden escape porn on YouTube – Kyles Cabin, Gone with the Wynns, Sailing La Vagabonde lessons and parallels from round the world catamarans and the tech world in general building the worlds first online mortgage bank in 1999 0 a world first differences then and now and mentality needed and generated – both weaknesses therein as well as strengths being a pioneer versus following on – comparisons of the first round the world pioneers with the ability of average folks these days leveraging improvements in tech to do the same today the commercial challenges of being well ahead of the market attitudes even in IT towards early adventures into Fintech Erik’s background and experience inside banks as a CTO the shift in ~2004/05 when software development became all about adapting to regulation not to improving consumer offerings complex mutual history of Norway/Sweden/Denmark how the Nordics went from great poverty 200 years ago to some of the greatest prosperity today the key role of tech in this and the creation of tech high schools the huge number of technology companies whether Volvo or Nokia through to Techs and Fintechs Skype was founded by a Swede Niklas Zennström the natural co-operation with the Baltics was set back by the USSR decades Sweden has the leadership in Fintech in the region geographic reasons behind the trajectory and the approach to tech low population density leading to a need for distribution in general note how key Scandinavian technology companies solve this one way or another Volvo (travel over large distances and very solidly built), Nokia (talk over long distances), Spottily (share music over long distances) why the UK has been so creative – the role of common law versus continental law the small size of local markets leading to the need for international expansion at an early stage the ability to rapidly test on a small market before expansion the important role of culture and motivation in leading to regional differences – the leveling out of these factors by neoliberalism the importance of the Swedish banking sector large and local as a platform for the Fintech-ing key players in regional Fintech – Tink, Klarna, iZettle, Luna, Swish, Vipps no one common theme amongst these market leaders Erik’s perspective on future trends building on the shoulders of giants – every new generation of tech enables the next generation to proceed ever-faster economic pressures leading to changes in behaviour and investment – not just crises but opportunities Naktergal’s end-to-end product suites, regional footprint and future plans an amazingly fast 142 day complete installation of a full banking system And much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

The fact that today we are talking to Aman, the co-founder of specialist Fintech Corporate Finance boutique Royal Park Partners which has done over 30 transactions is a great sign of the maturation of the Fintech market. In this episode we discuss the origins of Fintech Corporate Finance in Europe – not that long ago it didn’t exist as A Thing and how it is similar to MegaBank CorpFin and how it differs. I was fascinated to see that whilst Fintech is one of the hottest, newest, trendiest sectors in the world the boutique CorpFin model is way more similar to oldskool, pre-Big Bang CorpFin models – in particular in it’s principal focus on integrity and long term client relationships rather than product pushing. In other words the oldskool model was more advisory and the modern MegaBank model more transactional. In this context we also discuss how the Corporate Finance market itself has changed over the decades as well as the vital question of when a Fintech should move away from the DIY model to fund raising et al and move on from using the lawyers or accountants to support such processes and when they should use a professional CorpFin house whether of a MegaBank or a boutique. Topics discussed include: clients include Thought Machine, Habito and TransferGo, staff of about 20 people offices in London and New York with a satellite office in Shanghai growing up in Sudan in civil war times along with another 8 African countries Aman’s linguistic prowess as a result what images come to mind for Aman of his childhood Aman’s career journey the origins of Fintech CorpFin – what was it/where was it situated organisationally before it existed what timelines did Aman see re the market emerging frm the mist as A Thing in itself – Fintechs 1.0 and 2.0 no VC funds in Europe in this area pre-2010 and none made money pre-2017 when should a Fintech use a specialist CorpFin house? what are the structure and range of fees? what I saw as the real skillset of Corporate Financiers back in the day three core products are similar the world over and across sectors capital raising IPO M&A MegaBank CorpFin compared to boutique and Fintech what is required in specialist CorpFin – and note the many subsectors within Fintech how CorpFin changed over time from relationship-driven to transaction-difference what factors drove this and why is Fintech seeing this trend reversed? key factors in successful boutique CorpFin as well as relationship focus percentage of mandates that Royal Park has to pitch for as a competitive mandate working practices in CorpFin expectations of modern folk in terms of what they want from work – the limitation of the “just pay more” model how the increase in competition in CorpFin in London after the Big Bang led to fees going through the roof not being lower how much time and what level of CorpFin-er is dedicated to marketing rather than advice/transactions – and the impact of this how the job market in CorpFin in changing fees in M&A and the reasons for “market failure” in those how CorpFin handles “a client” when the “client” is actually a Board (and behind that diverse shareholders) with many people coming from many directions with differing priorities Aman’s experience and advice in re a Case Study of “The Rockley Principle” and its relevance to arriving at mutually-agreed decisions where the Fintech CorpFin market place is going what it takes to do well over time why Royal Park has its name their positioning as the premier advisory CorpFin boutique in EMEA Fintech how to market across a vast region where Fintech is concentrated in Africa And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Investment risk has changed radically from what regulators and the media propound. A prime example is that with negative real interest rates and at the end of a secular 40 yr bond bull market the idea of bonds being “low risk investments” is nuts yet widely followed in asset allocation. Furthermore as we touched on in LFP197 on the dollar, hyperinflation and much more and LFP199 on Gold the trend to invest in real assets is growing. As we haven’t yet covered VC from a “how to invest in it” we also dive into this important topic – especially during a tech bull market when most of the value creation happens before the IPO. So throw out your textbooks and so-called modern portfolio theory (from the 1950s a long long time ago) and start thinking afresh. Alan is a great guest to discuss this topic with having been a CRO as well as a banker and consultant and now head of Digital Horizon, a VC and Venture Builder firm. We discuss investing in the 2020s with a particular focus on understanding what investment risk is now, what key new investment risk exists that was never really a thing in recent decades but is now and wrap up with the practicalities of retail investment in Venture Capital. Key points discussed being: a recommendation not to catch the ba2 variant of covid busyness levels in London the Galapagos islands Alan’s professional and geographical background the importance of having a background in building businesses not just being “in finance” for being a successful VC Digital Horizon have offices in London, Tel Aviv, Dubai – looking also in south Europe and Asia the major and growing importance of a new category of risk – jurisdictional risk the Nomad Capitalist (on YouTube and book on Amazon) “legacy brands” re countries increasing importance of diversifying your business as well as investments by country to overcome this challenge also the importance of investment across stages for VC risk not just that things are changing but the rate of change itself is increasing which produces a radically different investing background the irrelevance of textbook theory of risk as short term price volatility in the current markets bonds are hardly “low risk” when you are guaranteed to lose money in real terms! PE & VC in an environment of higher inflation importance of changing your mentality in a totally different investment world the two philosophical positions on Finance risk from the 1920s – “the future is unknowable” vs the statisticians playing with numbers as a guide to the future the above covered in “Radical Uncertainty: Decision-Making Beyond the Numbers” Lord King and John Kay the need to both understand the business (in VC) as well as “understand the figures” VC investing in tech considerations “clicktrust” as a factor in how fast tech can grow in different countries Aristotelian vs Platonic views of the world and risk/business/VC integrating the top-down and bottom-up perspectives on VC investing listing and correlation with monetary policies correlated and non-correlated assets the correlation and lack of correlation with listed assets across the stages of VC investment the need for all to consider VC as an investment category in the current market Alan’s suggestions on relevant percentages of portfolios that should be in VC the time period of VC investments compared to stage how to invest in a good spread of VC investments – challenges and possibilities multi-stage funds geographically-diversified VC funds cf regional number of unicorns – 1st US, 2nd China (but hard to invest in), 3rd Israel speed of growth in tech: hardware vs software biotech longer too speed compared to how much human intervention vs automation Digital Horizon’s upcoming platform to enable smaller ticket investment challenge of investing in a market where VCs raise funds rarely and then spend a lot of time investing it before raising more liquidity, secondary VC markets open funds cf listed VCs Digital Horizon’s focus on “smart investors”; diversification across several parameters cf smart angels – money and expertise too many people are not invested in/exposed to the tech boom even though they use it every day crypto cf Bankers Trust the vital importance in a world of discontinuities of a discontinuous attitude to investment and FS risk And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Technology pervades our world more than ever and conditions us and our existence ever more. But I believe it is not well-understood at a philosophical level, nor are its impacts at an existential level. Two great thinkers about technology and its impact on man, society and civilisation in the 20thC were  Oswald Spengler and Jacques Ellul. The whole panoply of problems we face now from depression to global governance would not have surprised these gentlemen in the slightest. Indeed despite writing about technology – and its parent technique – in 1931 and 1954 respectively – their analysis and projections have proved spot on. Neither, I believe, would be in the slightest bit surprised by the world in 2022 and all its challenges for humanity. Indeed I believe they would perhaps been more surprised if we were not experiencing many of the damaging phenomena we are seeing now. How could they have been so prescient writing 91 and 68 years ago, well before any of our “modern” technologies had been invented? Simply put, apart from having plenty of history of society and technology to examine in their day, I believe they penetrated to the very essence of what technology is – notably the embodiment of technique. Technique sounds so bland, so neutral, so essential. And from one perspective it is, after all, as Ellul writes, a lion uses technique to catch its prey. Technique is very necessary for all animals seeking safety, food, shelter and offspring. Human  technique may be embedded in regulations (which are vast in FS and all economic sectors right now), laws, codes, culture as well as physical or virtual objects where we call it technology – the etymological roots are identical. It is due to their depths of insight that Messrs Spengler and Ellul went from these apparently simple insights into foreseeing how the human usage and importantly creation of technique and technology can have such manifold consequences. To take one simple example. Technology is often described as being value-neutral – you know the old cliche about a knife being able to kill or butter bread or in the hands of a surgeon cure. Indeed before researching and writing this episode this is a belief I would have cleaved to. However it is not. To pick out some key elements of why it is not technology always ends up putting enhanced human powers in the hands of a few who inevitably throughout history have, until restrained by society, used it for personal gain and greed and power over their fellow man. Secondly technology has always moved power away from local communities to more distant folk – globalism is simply the reductio ad absurdum of this process. Thirdly technique and technology condition man to being, to existing, in a particularly diminished way. Put simply the more man is surrounded by technique and technology the more robotic he has to behave, be, think and feel and the less (poetically put) he can be fully human and live in a world of values other than rational efficiency. Technique and technology leads us into a world well described by Max Weber as a polar darkness of disenchantment and bureaucratisation and control, a world ripe to be plucked by tyrants (a motif we saw in Star Wars I where the rule by bureaucrats was perfectly set-up to be controlled by Palpatine, you might be able to think of an example of similar from the past two years). Iain McGilcrhists huge works – his recent “The Matter With Things: Our Brains, Our Delusions, and the Unmaking of the World” came in two volumes and amounts to a phenomenal 3000pp in the Kindle version – have notably situated this as being a left-hemispheric mode of being – utterly invaluable for existence but utterly constraining and crushing of the way-more human sensibility of the right-hemisphere. But this is to give but one important example of what comes from understanding technology better. It turns out that understanding the philosophy of the nature of technology is not just some words but important to our daily lives living in the most technological society ever, Rampant technophilia (“this latest gadget will solve many of your problems”) is historically and philosophically bankrupt. Man must be a tool-user. He is notably these days used by his tools (think for example the business model of social media – attention-mining and monetisating a human being). Having dived into what technology and technique really are and how they inevitably lead society and man in one direction and one direction only I wrap up this monumental (in both senses of the word) milestone episode with a consideration of how we might best live in our world beset with technology – some of it useful, an excess of it harmful but the amount of it increasing by the day. How do we become once again masters of our tools not slaves to them? How do we counterbalance technologies ever-more robotising effect upon us and techniques ever-increasing bureaucratising impact upon our lives?

Gold has been much in the news recently with Russia putting a Gold-floor under its currency to spectacular effect (almost as if desire for infinitely printed fiat paper is wearing off…) and offering to accept payment for exports in Gold the US sanctions/de-SWIFTing/and theft of Central Bank Assets (never happened in history) has spectacularly backfired. But what if you too could have your own personal Gold Standard, backing your cash with what has been real money for millennia? What if you could pay buddies directly with Gold? Is Gold the ultimate anti-CBDC? Glint’s mission is to create a gold-based alternative to banking and money and so is highly relevant right now. In the bigger picture this episode can be seen as a part two to LFP197 with maneco64 which was snappily entitled: “Money in the 21stC: Ballooning Printing of Fiat/QE/”MMT”/Govt Debt, CBDCs, Crypto, Dedollarisation, Hyperinflation and Gold” in which we only had a short time to touch on Gold. Jason’s Glint has, after thousands of years, provided a new functionality (or perhaps two or three new functionalities depending on how you count) to the gold would you believe it. Fintech (GoldTech?) at its best. Back in the early days of the podcast 2014-15 I spoke to one or two folk who were working on gold and fintech in one way and another but no-one really cared much. Perhaps everyone and especially me should have as since 2014 Gold is up 60% (and in passing about 60-fold since the US came off the gold standard in the early 70s). I’ve been looking into Gold since and it is far more weird/complex as a market than I ever realised… When we were young we would have known gold as perhaps rings on our mothers finger. A little later we might know it as something in the periodic table with certain properties. But that leaves much unsaid – what is golds function in society? If we want to invest in it how do we do that – ie what are the investable forms of gold? Indeed is gold an investment as such or a store of value? How well does it fulfill either role? Can we use it for payments (an amazing functionality Glint Pay puts on your phone)? So for some of you out there this might not be just another podcast but one that makes you consider whether you should invest a certain part of your portfolio in Gold – whether through Glint, bullion dealers, ETFs, coins or many other ways. Topics discussed include: on the day of the recording the FCA shut down all Bitcoin ATMs as illegal Jim Rogers (~4,700% return in the 1970s on his Quantum fund) predicting that the weaponisation of the dollar will mark its end ~14,000 crytpos out there these days the “interesting times” we live in Jason’s background as an architect/tech/entrepreneur and study in Gold starting in 2008 his realisation that any money you put in the bank becomes the banks property with you having just a claim on the bank – hence how to safely store value inflation’s erosion of paper money’s real value realising Gold was the historic answer but we are unable to use it as payments the long journey to Glint today from 2008 given so much to learn Glint Pay Ltd created in 2015, prototyping a gold-based alternative to banking and money the immense value to Glint of having excellent NEDs on the Board launched to customers in UK & Europe end of 2018, in the US in 2019 the amazing number of perceptions of Gold – Jason’s perspective when you own Gold – correctly – it is, unlike money no-one’s liability Gold price volatility – short-term, long-term the bizarre medium-term fluctuations since 1973 in the price belie the simple view of “an inflation hedge” over the medium-term, even if over the longer term it is the way of preserving value how to buy Gold is not so simple – allocated/unallocated, premia, Gold coins can be CGT-free a deep dive into ensuring that when you buy Gold you actually own it deep-dive into unallocated Gold – you don’t have a legal title (cf cash in a bank) – Jason said that most Gold people buy is unallocated without realising some cryptos are backed by unallocated Gold (&sometimes in Govt vaults adding a further layer of “legal distance, potentially problematic”) comparison of allocated/unallocated with eg money in a bank or cash in a bank safe deposit box – in former case you don’t “own” your money in the latter case you legally do following the above “Gold does not give a yield” is as you don’t own your money – if it was “under the bed” or in a safe deposit box your cash would not have a yield extreme version of allocated is to have Gold “in your hands” ie at home however NB problems of storing precious metals at home – nickable and not insurable (generally/above small levels) vaulted and insured as safest levels ETFs – not all hold Gold, many lend it out and others use futures to replicate the performance (a whole episode in itself) but ultimately you are still owning a share not directly owning precious metals) the catastrophic LME cancellation of trades in Nickel futures recently as an example of the risk of using futures to replicate real prices premia – bullion/coins right now are around spot+5% to buy  and spot-2% to sell  Glint charge spot+0.5% to buy and spot-0.5% to sell or if you use your Gold to spend via their MasterCard attached to the account you sell at spot – way better spreads Glint has multi-currency accounts in the app as well as MasterCard and ability to buy Gold, payments coming later this year averaging-in as the standard way to mitigate short-term volatility when building up a position a full explanation of how Glint works in terms of storing the money in Gold in Brinx vaults under Geneva airport and what happens when you tap your MasterCard to buy something Glint has ~$100m value of Gold in the vaults right now – nearly two tons! (&a ton of Gold is roughly the same weight as a baby humpback whale!) paying other people on the Glint network directly in Gold – a Gold-based alternative to banking payments storage charges 0.24% pa on Gold Glint customer balances vary between £50 and £2m – ~100,000 customers with an average of $4,000; getting a thousand registrations a day Glint wealth-managers platform – second platform after the retail app later this year API-able Trustpilot 4.7* can download in 200 countries – not Europe right now (post-Brexit) but will be by the summer And much more more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

There are at least 70 cities in Europe which have at least one unicorn in them – a very different pattern from the US/UK ecosystems. Over 20 of these cities are in Central and Eastern Europe (CEE). There is thus far more to CEE than a place to near-offshore your tech or dev team. In this episode Adam gives us both a tour de force et tour d’horizon of the vast region that is CEE –  – I was certainly impressed with my lack of knowledge of the tech landscape in the region which has developed super-fast.  Adam is a rara avis having been a multiple-times founder, bank CEO and now long-term regional VC so has a super-good 360 degree perspective on the area which he leads us through. Five years ago Adam co-founded OTB Ventures, an early-stage CEE VC based in Warsaw, who invest $1-15m in their CEE portfolio companies, Topics discussed include: is tech concentrated in Warsaw or is it spread around Poland? other tech hubs in Poland Adam’s career journey – from great anecdote about how he started at BCG through founding several companies including perhaps of the first Fintech in the region in 2000 and Bank deputy CEO-ing experiences in Ukraine [in passing the podcast was recorded before the recent troubles] Angel-investing experience pivoting from Angeling to VC with a buddy who had been in Intel Capital for 18 years Kiev back in the day when was the CEE tech boom? reviewing the major features of the tech landscape in: Poland – 15-20yrs ago gaming industry was the early market leader with global reach; other sectors increasing over past 5yrs. the mid-size country gap – market big enough to get some success but not so small that one has to globalise right away Finland (some count as CEE (?!)) – very key Estonia – the largest number of tech unicorns per million people in the world Lithuania Ukraine– less local market and more connected to the US market Czech – cyber-security especially Slovakia – developing fast Romania – UiPath listed on the Nasdaq is now worth $20bn… Bulgaria – eg Payhawk (who were the guests in LFP187) the importance of local successes in encouraging other entrepreneurs to believe that they too can create a success in the country reasons to offshore in CEE: price – pre-pandemic techies 1/3-1/4-ish of London rates, now ~1/2 London rate quality quantity longevity as market less hot how to use CEE less about offshoring and more about putting the whole tech team in the region centering on a co-founder moving back into the region centering on a key tech guy in the region key-person-centric rather than “map centric” importance of not just regarding people as “interchangeable resource” hence importance of deep cultural insight into the country one chooses in CEE importance of global market thinking – eg Klarna, Transferwise outlook for next 5-10yrs “innovation is no longer happening in corporations but in startups by entrepreneurs” funding is now available in CEE countries “if the tech is good it is global not local” the long-view as the current tech boom marking the end of the WW2 period with CEE back as part of the continental economy OTB Ventures stands for Outside of The Box Ventures supporting founders not telling them what to do what he role of an investor is OTB focuses on real/deep tech – disruptive technologies that scale globally And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f609.png" alt="

Where money in major economies is and where it is going is very concerning right now – look at the list of issues in the episode title, let alone the impact of the ongoing globalist putsch and UN Agendas 21 and 2030. This is a topic that will affect not just FS but the lives of everyone we all know we are more than overdue a dive into this essential topic. In particular we end with practical investment/monetary strategies to survive and thrive in an age of – inter alia – serious monetary risk. I have been looking for a guest to talk about this for over two years there being some polarisation between the ~ “it’s all fine, needs the odd tweak” and ~ “Jacob Rothschild owns all the central banks and tells them what to do” camps. Mario is someone who being a long-term FS-er himself understands FS and markets deeply but also as a consequence of deep understanding and deep study has for some time been raising the red flag for some time. It is worth noting that all fiat currency systems have eventually collapsed. There’s a simple reason (before we get into civilisational collapse and venal politicians angles), as Graeber points out in his magnum opus on Debt if everyone repaid all their debts to banks there would still be an astronomical amount owed to the banks simply as when banks lend money they create that money but do not create the interest margin they charge. Fiat currency is thus a Ponzi scheme.  In the UK it took 300yrs for the money supply to reach £1trn but only 8yrs to go from there to £2trn and another 4yrs to reach £3trn. A dollar a century ago is worth something like 2.5 cents now and as Charlie Munger the veteran Chairman of Berkshire Hathaway said recently “I think the safe assumption is that over the next 100 yrs the currency is going to zero”. Mario has a very successful YouTube channel since 2015 where he is better known to 60,000 subscribers as maneco64 “the home of alternative economics and contrarian views”. And just in passing contrarian has a special meaning to us fund managers it doesnt mean your stroppy teenager who disagrees for the sake of it but rather long-term proven investment wisdom that you don’t make money by agreeing with the market. Rather to make money you need to stand against the current consensus. Money is naturally at the heart of FS but most FSers don’t really understand what it is (they leave that to their treasury departments). Furthermore a 2014 Bank of England publication stated that the nature of money is widely misunderstood including in one important respect even in university textbooks (!). But money isn’t just something of concern for FS folk. As John Kay notably explained when he was on the LFP, Finance is like a group of guys going into a pub and gambling with one exception namely that the outcome of their game extraordinarily affects everyone’s life outside the pub. That’s super-weird when you come to think of it. Topics discussed include: Mario’s YouTubing career and advice on becoming successful what got Mario into looking deeply into money per se some 20 years ago how Mario reversed Type 2 diabetes – which has become his most watched YouTube with some quarter of a million views Mario’s personal and career journey to today from different parts of the world to different FS markets and trading and entrepreneurialism a quick review of the history of money referencing LFP085 – The Nature of Money, Economic Imbalances & will Central Bank Digital Cash alleviate them? With David Clarke Positive Money the FT’s chief economic commentator has written in favour of Positive Money’s approach (Strip private banks of their power to create money); eg:Our financial system is so unstable because the state first allowed it [the private banking sector] to create almost all the money in the economy and was then forced to insure it when performing that function. This is a giant hole at the heart of our market economies. It could be closed by separating the provision of money, rightly a function of the state, from the provision of finance, a function of the private sector. credit instruments in the era of the Gold Standard stable and low inflation in days of precious-metal based monetary systems comparison with the 20thC – a century of inflation and war Voltaire “the thing about paper money is that it reverts to its intrinsic value of zero” watering down the money (money supply up 16-fold since I took over fixed income in ’88) cf watering down beer – need more money to buy things, need more beer to get drunk why do we need Central Banks? There is no central bakery or central brewery underwriting private banks – limited and unlimited liability banking 19thC and 21stC Ron Paul’s “End the Fed” 4.8*/5 from >1,100 reviews many of whom don’t agree with him politically but still write that its a brilliant analysis are cryptos a private market solution to a public good failure? Is money being privatised? will crypto be hijacked or subverted? risks of crypto ETFs Wall Street and crypto CBDCs as a way of subverting crypto to achieve almost diametrically opposite objectives De-dollarisation – an ongoing trend of declining holdings of the US dollar as its empire and unilateral power declines US use of sanctions as accelerating the move away from the dollar moving towards a pre-WW1 world of inter-country settlement Hyperinflation – what is it practically and psychologically? used car prices as a lead indicator of hyperinflation? loss of confidence in all institutions in re loss of confidence in currency other symptoms and rapidity with which it happens the importance of investing in real assets – gold, land, property  liquid real assets and illiquid real assets NB investment strategies of the likes of Gates and Black Rock Mario’s discount codes to buy gold cheaper <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Fraud is sadly as old as humanity. However the digital age has created a huge arms race – on the one hand a massive increase in fraudulent attempts, on the other ever-stronger defences. Traditionally anti-fraud was a complex B2B sale but in the digital age where b2b and b2B sales outnumber by far B2B sales (SME/BigCo respectively) this all needs to change. SEON, despite being founded in only 2018 are making great inroads into this market already having signed up some 5,000 customers including Fintech Giants titans such as Revolut, (Transfer) Wise and Mollie as well as growing super-fast and having offices in Budapest, London, Austin and and Jakarta. Bence and  his co-founder Tamas Kadar have a classic origin story as University buddies with an interest in crypto whose first project together, a crypto exchange for central and eastern Europe, as might be expected in the more wild west parts of Fintech was the subject of fraudulent attacks. They tried outsourcing/buying in solutions etc and before deciding they could do better themselves. And it sounds like they are. Despite only founding in 2018 SEON already have offices in Budapest, London, Austin and and Jakarta. In this episode we focus in particularly on what has made them so successful. Surely by 2022 most things are pretty digital? Well not digital enough by a long way in fraud by the sound of it. Topics discussed include: handling offices in different countries in this transitional covid regulation period challenges organising IRL meetings given everyone’s Swiss Cheese diary and this new idea that ~ not leaving one’s apartment is the new human right 170 staff (140 in Budapest) , up from 50 a year ago (!) generally 3 days in the office, 2 days at home Bence’s career journey to SEON why enterprise sales doesn’t work for the modern digital business “mission to make anti-fraud applications/services as accessible as simply as possible to as many people as possible” huge changes in purchasing process from oldskool to digital global expansions exponential growth or bust digital competition model fraud in product provision as well as in payments/identity psychology of online fraud being much easier to do as it feels more “victim-less” behind a screen than IRL fraud anecdote re Bence’s grandmother who has gone from queuing up in Soviet-ear shops to now buying groceries via her iPad how consumer-education works, or doesn’t work, in such a total shift of eras so rapidly happening “in the UK online fraud has been identified as a national security concern” how should awareness of risks be increased in a world of rapid change? merchants roles in protecting their customers historic pain points Bence experienced when he was a customer of antifraud services – sales and discovery process as well as features and complex payments comparison with SEON current approach importance of transparency, try before you buy and simple buying process with no complex terms in the modern digital world real-time authentication and data enrichment as key services need to consider wider sources as data points when deciding whether the transaction is authentic – digital footprint analysis consumer doesn’t feel like they are being checked out as they don’t have to submit extra data themselves credit cards, bank card charge-backs, insurance and the like – case study, theory and practice of recovering your money not well-known that if goods and services aren’t what you expected you can file a charge-back for that transaction and you should be protected “friendly fraud” business-to-business payments less easy to reverse in case of fraud Case Study of fake bank app in Hungary and what happened what does the future of anti-fraud and SEON hold? multiple use-cases SEON aiming to be the #1 in five years new use cases – verifying online business accounts and verification moving out from the consumer domain SEON’s two core products – end-to-end and data-enrichment intelligence tool aiming to increase staff numbers by a further ~150 people over the next 12 months And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

In this show Patrick Dunne joins us to discuss how Boards changed in the 80s/90s/00s as a prelude to the significant shifts in Boards happening, and needing to happen, today. As the world changes massively and as tech changes only-ever accelerate how does this change what Boards are required to do, how they do it and what kind of people you now need on Boards. Patrick has written four books on aspects of the Board over the past 30years and in 2021 the second edition of his magnum opus (426pp): “Boards: A Practical Perspective” (Amazon.co.uk link) was released. His principal executive career was 26yrs at 3i starting in 1985 and rising to the operating committee Patrick Chairs board consultancy Boardelta and the charities EY Foundation and ESSA – Education Sub Saharan Africa. He is a Trustee of the Chartered Management Institute, a Visiting Professor at Cranfield and the Founder of Warwick in Africa. Topics discussed on the show include: a unique intro topic: “hanging out with murders and rapists in a prison” education around conflict-avoidance (a great training for Chairing Boards :-D) the importance of the mellowing of age when it comes to Boards – the move from thinking one knows it all to knowing one actually knows very little and hence listening more Patrick’s career being on the 2002 Higgs review of Boards training Boards creating ESSA – Education In Sub-Saharan Africa as well as consultancy Board Delta why Patrick wrote four books on Boards.. “we are moving from a maps world to a satnav world when it comes to decision-making on Boards” … ie less ritualistic, big annual set piece, nearer-time, more engaged with data digital changes driving this [Patrick’s article in re on LinkedIn] “are Boards as data-savvy as they should be?” – interview process around Boards never includes one’s ability around data yet the information age is all about data running “data-savvy workshops” [Patrick’s article on data savvy Boards] the 1980s pre-codification Board – many more Chair/CEOs combined, NEDs put in much less time, much less data at meetings, lower level of expectations and accountability then compared to now, lack of such stark media attention compare length of FTSE Annual Report and Accounts now to then 1990s introduced a much greater focus on remuneration as a result of privatisations leading to increased public focus on executive remuneration, a greater focus on internationalisation and practices elsewhere “the main purpose of the modern Board is strategy, the right resources and governance; it’s not just governance” “…it is also to provide a balance of oversight and support” example of Private Equity world in focusing on the Board’s need to add-value rather than just “do governance” 2000s – the explosion of technology and the internet affecting all businesses this changed not just the ways the Board operates but the skills the Board members needed to have are modern Boards appropriately staffed given the huge change in business climate caused by Tech? the rise of Next Gen Boards – example of the EY foundation many serious players now have next-gen Boards the Goldilocks zone of the Venn diagram overlap between Executives Role and Boards role – not too much, not too little – handling this how this applies to tech the nucleus Board how the philosophy of the Board relates to the philosophy of the Company – underlying issues not entirely thought through and evident in tugs in different directions particular challenges in FS in getting real diversity of thought if regulators insist they all come from a similar background practical key advice to a new founder have a high degree of self-awareness about what you have in the exec-team and what you might be missing at this moment think in phases – eg what will you need from Board in this phase, maybe a year or a bit longer and build so you can build upon it the key thing get a really good Chairman as quickly as you can how to seduce a good Chairman Chairmen who like and who dislike mentoring new founders as well as Chairing a Board flag-waving for ESSA – challenges with education in SSAfrica And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Civilisation I believe is at a crossroads. The globalists’ road has a stench that we can smell from the crossroads. Their dystopian future has been designed for far longer and in far more detail than anyone who has not researched it would ever imagine. It is no secret, no paranoia, and is documented in the public writings of the UN, the WEF and many more NGOs and private clubs of oligarchs. It is already impacting the lives of billions of citizens. It has long been designed in plain, documentable sight, by a complex network of NGOs and supra-national institutions and in essence private clubs of oligarchs. At a governance level covid is merely an accelerant to the super-scary UN Agendas 21 (signed in the 1990s in passing) and Agenda 2030. I won’t be covering agenda 21 or agenda 2030 – there is plenty of high quality material out there. Suffice it to say that the bland Blairite words of the UN website – sustainability et al – cover ideas of creating a future so dystopian that few science fiction writers can have imagined it. “They will own everything, have all the power and they will be happy” we will be reduced to little more than farm animals in their eyes, banging the rocks together to create a spark when the lights keep going out as our Dear Leaders sprint towards net zero. I have changed my view on going back to the old normal as opposed to the oligarchs new normal. I used to think that was a good idea. However the increasingly tyrannical actions of major governments – and I am not just talking re covid here but in information management that would have impressed Stalin, Mao or Hitler, in actions to stop protests (and in a brilliantly recursive fashion stopping protests about changing the rules on protests), but also in lethal laws in the UK which allow state agents to break any laws they like. Their almost complete death star has already destroyed nations, traditions and long-fought hard-won gains such as liberty and freedom Yes there are many elements of old normal which are essential to revive – freedom and liberty uppermost – our ancestors fought so so long to bequeath those to us, we would betray not just them but our children and grandchildren if we were the generation that blew it. However and this is the key to my change of thinking we cannot roll back the clock knowing what we know now. To sketch a couple of pictures on a whiteboard it would be like your house falling down and whilst you and others argue about why you just wish to go a few years back when it was still standing. But what if the reason for the collapse was woodworm and dry rot? You would just be going back to a situation where the house was about to collapse around your ears. Or using star wars as a metaphor your nation, your planet has been struck by destructive beams – going back a few years merely takes you back to the period where in relatively low key fashion a death star was being assembled above your head. So to me there is no going back. In simple dualistic terms we will travel down the so-called Great Reset, more precisely the Global Oligarchs Reset path or down the people’s reset path. In quantum terms, more complex than dualism of A and B the near future will end up being some quantum superposition of these two states with the wave function only collapsing to one path in several years time. The first task is to have a better understanding of what Globalism  is. This magnum opus episode is divided into 7 sections: 1) The Big Picture – where are we now? 2) Non-Covid Examples Of UK Tyranny – there are many totally non-Covid-related Bills being passed in the UK Parliament (and elsewhere) under the cover of the Covid smokescreen. 3) Power, Persuasion And Democracy – dialogue about global governance is generally conducted without a deep understanding of the nature of how power works in human societies, a myopic view of a century of the development of ways to convince the masses to buy (be it a worldview, a political party to vote for, or a product) and naivety about the systemic flaws of  we call (but the Athenians never would) “democracy” 4) The Religion Of Totalitarianism – those of my generation lived through the USSR and Maoism and were immersed at school in education about Nazism. These days that is ancient history. Even those in the former eastern Europe need to be over 33 to have been alive in the days this was part of the USSR and obviously rather older to have had any real feel. As such there is a deep lack of understanding about the modus operendi of totalitarianism and in particular its need to conquer and control not just citizens behaviours but their thoughts and beliefs and to program them for the regimes convenience. In this section we examine various thinkers who have written on this topic over the past century. 5) The Origins Of Globalism – many people have only a fragmentary understanding of the long development of globalist rule and how it has been aimed for decades at undermining the nation state and local culture to ensure that the world is increasingly run from above whether covid, climate, immigration, control of speech and many more topics. We also have a look at how the manipulation of local culture and indeed dissing thereof is a key way of moving people from being citizens of states with long traditions and cultures to rootless consumers following whatever are this weeks diktats of wokism that ever changing pseudo-religion the only one to entirely lack compassion and forgiveness. 6) The Structure Of Globalism – many people think that globalism is a vague concept, or one for the paranoid or relies on speculation as to which unseen forces – clubs, institutions, families, people – are pulling the strings. Whatever happens behind the scenes those on the stage are already powerful enough. Furthermore with the recent Global Public Private Partnership (the rules-based system in which they enact policies decided centrally from above) there is now a nice simple organogram (see below). 7) Outro – Reasons To Be Cheerful  – despite all the challenges I conclude with reasons to remain optimistic. There is quite some struggle on people’s hands to wrest control away from undemocratic forces but in the end the people will win. Despite all the negativity both from those who are in fear of a virus and those who are in fear of their governments I conclude with grounded optimism and reasons to be cheerful as, to quote the six-times 19thC Prime Minister Gladstone: “The Resources Of Civilization Are Not Yet Exhausted”. Share and enjoy! ~~~ Footnote An excellent GPPP organogram (the modus operendi of globalism) from What is the “Global Public-Private Partnership”? Iain Davis

With the long-planned centralised ID (via pretext of “medical passports”) juggernaut bowling down the road towards us and ushering in a Western version of the Chinese Social Credit Score where your Human Rights, rather than being God-given, become a function of  your obedience to ever-more politician-decided criteria it seems a great occasion to discuss what an alternative might look like. No less than Tim Berners-Lee has an alternate vision with his Solid project – “Solid is a technology for organizing data, applications, and identities on the web.” Serial entrepreneur Kirill Slavin is CEO of Reputation Transfer an InsureTech focusing on data portability and extra data points for insurers. Kirill (who is also CEO of EdTech Academator – busy guy) joins us in this episode to discuss a radically different take on digital identity as well as discuss whether Berners-Lee is right, wrong, too radical or not radical enough. Topics discussed include: the appropriate context of UK PM announcing new restrictions to get himself out of a politically tight spot technology creates problems but can also solve problems – how can we use tech to dig us out of the centralised-tyranny hole? the origin of the names “Kirill” and “Slavin” how Kirill was identity-less for some time pending resolution of his names Kirill’s career journey from Moscow State University through finance and management consultancy to serial founding the twin tap-roots of identity-centralising forces are regulation but also the power of networks “it’s easier to put identities in one place but then Governments and BigTech would like to exploit that for their own purposes” Sweden’s trail project to chip people “for their convenience” the lack of safety of databases – hacking of all levels of all levels of databases people’s desire to control their own data how the ratings agencies are “fraying at the edges” due to open-banking where this might go so far the focus has been more on data than identity – but of course there is no former without the latter as an owner why cant one have many pseudonymous identities for many uses cases Kirill’s perception that this is still the predominant model outside of FS (&its stronger centralising regulation) “my radical concept is ditch the over-arching concept of ID” why do we need names? What is identity? “nowadays it is possible to prove that user X on Platform A is the same as user Y on Platform B without the concept of universal name” the “hub and spoke” model of identity surnames as a State-imposed concept re identity back in the day for purposes of taxation and control case study of insuring ones car and the DVLA Kirill’s optimism about the distributed identity model comparison between the (so-called) metaverse and the real world the arms race between the State and technologists trying to stay one step ahead (eg VPNs/Tor browser) is Tim Berners-Lee right? Kirill’s analysis of what TBL gets right, what he does not and what is not ambitious enough shoutouts for Reputation Transfer and the commonality of both business being very ethical and focusing on using tech for good – in the latter case eg inverting the BigTech platforms who want to steal your attention for their profit And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

In the hundreds of incoming requests to be on the LFP there are few that truly stand out as something fresh and innovative that I haven’t heard of countless times before. Tulipshare is one such rara avis being the first on the show who do GovernanceTech. They are a broker-dealer through which you can buy shares – so far so normal – but with one important twist. They also have campaigns to change companies that you can buy shares in to support and hopefully make them change for the better. In this show we discuss ethical investment and its challenges, but simply put one of the things that I really liked was not just GovernanceTech per se – putting governance power into the hands of the people in a world in which power gets sucked ever higher and ever-more centrally – but that their campaigns are specific and actionable. All too often “ESG” can simplify to a few high-level bromides. These may be helpful and even necessary but at a minimum are just one side of the coin. In the real world there a million detailed things that are actionable well below super-politicized PC/globalist concepts like “climate change”. As practical examples campaigns at present include demanding that Apple allow 3rd party technicians to fix their products, that Amazon improve the working conditions of Amazon warehouse employees and that Coca-Cola uses recycled plastic. You see what I mean – specific, implementable proposals that make a mockery of any politicised divide in our polarised society. Who wouldn’t want those campaigns to succeed? Plus people can propose new campaigns to Tulipshare making this even more grass-roots/democratic. Topics discussed include: dating apps and dating space – lessons learned from working in that area Antoine’s career journey and career advice leveraging his experience balancing over one’s career the twin yang and yin forces of aiming in a given direction yet being flexible enough to catch rising tides as and when they appear what led Antoine to found Tulipshare – his mission to change the world and enable people to do so fractional shareholdings a quick 500 years history of how Company Governance has gone from owner-centric to management-centric to State-rule-centric the massive concentration of voting power in Proxy Advisers – two US firms control over 90% of the outsourced governance space comparison with billionaires tax rates averaging around 2-4% – way below that of the ordinary man giving people more control over their life and the loss of faith in democracy the relative failure of boycotting qua activism company governance eg shareholder resolutions is not controlled by the company but by the SEC’s rules threshold for submitting a proposal used to be $2k owned for one year to now $25k for a US public listed company gives access to the board room as “written in the rules that they must listen” media-centric campaigns vs direct discussions with the company cf UK parliamentary petitions and the brush-off that almost always comes with such “it’s not a fight, we are seeing this as a partnership” = an opportunity for the company to have connection with shareholders outside the usual Wall Street ranks a paradigm shift companies do not received many resolutions – can generally be only a handful or two – why? desire to give power to the people via Tulipshare people buy stock via Tulipshare to join a campaign how the voting mechanism works if you buy shares via Tulipshare can buy stocks from as little as £1 Tulipshare combines the voting rights to submit resolutions “we see most of our resolutions as being sorted out with discussions with the company itself” Tulipshare’s business model campaigns are submitted bottom-up by users and then filtered for appropriateness then listed on their platform need for analysis and legal input as an impact-investing platform most users are first-time buyers challenges with ethical investment Paul Kingsnorth one of the oldskool eco-activists and his view on how the movement has been going wrong in over-simplifying and turning into one simple issue way away from the complexity of the world why isn’t the ethical investment sector asking the questions Tulipshare is pitching?? connecting Tulipshare to the ability of people to regain the idea that they can change the worlds’ largest companies for the better Tulipshare’s progress and plans going forwards + they are recruiting (a full-remote firm) and in which areas And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Creating a global firm without raising equity is rare but possible and an important route with many advantages for certain types of business. which many young entrepreneurs are relatively unfamiliar with. Ben Richmond founder and CEO of RegTech CUBE certainly knows this path intimately and shares with us his insiders experiences having built CUBE from inception in 2011 to today a global business with offices around the world, clients using their products in 150 countries, some 250 staff and seven-figure monthly revenues based on that most oldskool of concepts organic cashflow alongside debt. It is a topic we have touched on in prior episodes. In LFP189 we heard about the non-dilutive (ie non-equity) sources of finance via govt grants and tax credits and bridging finance while one awaits those. Back in LFP071 with Faisal Husain founder of former LFP brand-partners Synechron we heard his amazing story about how he founded and grew a company to “7,000 employees in 18 countries in 16 years” without any external capital or debt showing that organic growth can be amazingly powerful for the right businesses. And just to finish off with prior references another key episode was  LFP163 with Alex Baluta CEO of Flowcap who took us on a deep dive into Venture Debt. What business characteristics are required to go that route? What the pros and cons of raising equity? What are the pros and cons of debt financing? What does one need to be wary of? All these topics and more are discussed in this episode: standing desks and venture debt standing up and sitting down and the importance of the transition between them the use of context-dependent behaviour for habit installation Ben’s path to founding a regtech farming regulation the conventional raising route the chief pros of equity raising comfort factor speed credibility of when selling to customers the chief cons of equity raising you may not be able to see through on your vision if you get the push from your own creation pressed to reach short-term goals at the expense of longer=term goals the intense distraction of managing your equity partner(s) complexity of the whole raise historically there wasn’t this clear distinction between equity and debt per se and how at one level today this still obtains – raise either and there will be a “tit for tat” the chief pros of debt greater control of the Board and the company direction can be phenomenally powerful you’ve agreed up front what will happen in all circs so everyone knows more precisely where they are and what will happen over what time horizon one way or another – so much simpler and less distracting debt provider just wants to know what is happening rather than getting involved in normal circs reduces dilution – altho’ NB potential use of warrants (albeit tends to lead to minimal dilution) take money when you need it rather than load of the balance sheet up-front – more focus on bottom-line and the burn as the cost of money is clearer ease of a raise – its a transaction based on a subset of the business parameters vs with equity raises having to consider absolutely everything the chief cons of debt security – property or personal guarantees and complications therein for the business as well as the individual potential to bring the business down around your ears if things don’t turn out well – more extreme-case downside than with equity hybrids between debt and equity super-important where you get the debt from comparison of banks versus specialist lenders – early stage venture debt or later growth debt and then more cashflow lending very important to do a lot of due-diligence on your lender to know how they have acted in the past in “good weather and in “bad” you will pay a premium but may be cheaper in the long run experience of raising debt for the management team and focus therein importance of focusing on what you have to support a raise debt lenders not speculative – looking to get a transaction to work (unless bad-faith firm) what lenders look for subscription-based business models as very suitable to debt-raises importance of not being purist – Ben would take and equity raise right now given the high rate of growth and global opportunities “you just have to be pragmatic about these things, its not that debts great and equity’s not or vice versa, it’s ‘right time right place’ “ how CUBE bootstrapped into debt raises to leverage initial success CUBE’s business and focus in regulation the ever-expanding future of regulation – “regulatory intelligence” And much much more <img src="https://s.w.org/images/core/emoji/13.1.0/72x72/1f642.png" alt="

Serving the sole trader or microcompany is super-important right now as economies and indeed societies continue to try and build themselves back from the ground up after widespread government actions in 2019 which massively favoured MegaCo and governments never-ending pork-barreling monetary printing presses at the expense of the little guy. In this context we define […]

In this episode we cover the super-big picture from the fascinating origins of the US pension market which is barely a century old through the complexities of the current market with some 40 million Americans having no access to a retirement plan and looking into the future how official advice over so-called “low risk investments” […]

This episode is a sign of the state-centralist times. Fintech grew in a very different world from our ever-expanding State, super-high tax-burdens, massive regulation et al. However why should SMEs leave all the food on the table for better-resourced BigCos to take? Especially when it falls into that vital category of “non-dilutive funding”. In this […]

Every startup in the tech world is after a “realisation” – or put in other terms a point in time at which someone puts a real as opposed to notional valuation on your firm – when you sell out in whole via a Trade Sale or in part via an IPO. But how do you […]

is it possible to do Customer Service well whilst not going bankrupt employing thousands of PhDs in Customer Service at megabucks? And back to an old favourite of FS vs Tech why do we even need it if the tech quotes works unquotes? In retail FS or even FS as a whole Customer/Client Service is essential. […]

Currency Cloud are one of London’s oldest Fintechs being founded over a decade ago. As they recently sold themselves for £700m to Visa – in cash – they clearly know something about the entire startup-realisation process. Big time. One of the aspects whose importance grows along the journey which co-founder Richard shares with us is […]

In this episode we have an awesome deep-dive by Gert into what Network-based Finance is – a super-cool topic even Google doesn’t know about (within an hour of this LFP release it became the only example :-O). We cover how, in a sense, it inverts the whole “Open Banking” paradigm putting the opening of transactions […]

I can think of very few UK Fintechs that dominate their sector as successfully as CapitalRise who have something of a monopoly of being the only independent prime real estate property finance provider. Not only that but to date they have an unbeatable 0% loss-rate on loans that have returned ~9%pa to investors. The Credit markets […]

How one engages with a Bank and how Banks engage have always been essential aspects of FS which is a complex ecosystem of specialists. This is – like much – all-changing right now. ClearBank have recently published a report entitled “How well are Fintechs served by banks?” which provides some depth to this topic. Simon […]

What kind of value-add most helps founders and their companies? Or if you prefer what sun, what rain and what compost makes founders trees fruit better and faster? It’s a vital topic for the economy. QED Investors is a leading VC firm focused on investing in early stage – hence their knowledge of growing seedlings […]

Richard has an astonishing 50yrs experience in investing in young companies and helping to grow them, starting with 3i in the 1970s when they were next to the only institutional provider of development capital through to being a former chair of the BVCA and this year having released a thoroughly updated version of his book […]

Fintech is increasingly getting well beyond providing the simplest of transactions and deep into the complex end of FS. Supply@Me Capital are listed on the UK Stock Exchange and recently acquired Singaporean firm Tradeflow Capital.  They provide inventory financing by securitising manufacturers’ and trading firms’ inventory in a very interesting fashion leading to a new […]

Two topics this week… What are the major trends in Insurtech in the US, UK, Europe and China? Secondly Small Business insurance, general liability professional liability insurance and so forth can be hard to acquire at commercially sensible terms and thus many contractors or home repair folk end up giving up on potential work as […]

All Fintechs in one country will have long since sorted identity/AML/KYC and so forth. But what happens when they need to scale in other countries or even go global? Like many things in Fintech this was a hard challenge only a few years back. However now it is made much easier by the likes of […]

In a world ever-more focused on transactions and digitisation what place is there for relationship-banking? Apparently not a lot, yet the market-leader – SVB – wholly embraces this approach over the whole journey from Startup to FTSE. In this show we discuss what relationship banking means in the 21stC for one of the hottest sectors […]

Payments are being revolutionised. One of the most fascinating examples is Ripplenet – Ripple’s approach to inverting the old model of slow large payments to super-fast, immediate, small payments (the general trend) which will change payments forever. Ripplenet “an internet of value” is used by over 300 Financial Institutions in more than 45 countries, as […]

What is called Venture Capital is most of the time actually Venture Equity – the predominant funding model for Startups/ScaleUps. But in many sectors, Fintech included, some UnlistedCos are Very large – valuations in the billions. These are no small companies. Traditional corporate finance theory says (correctly) that equity is expensive and should always be […]

Draper Esprit are one of London’s longer-established VCs and with investments in the likes of Revolut, Transferwise, Thought Machine, Seedrs, Crowdcube and Freetrade might know a thing or two about Fintech. Draper Esprit, like Augmentum who we had on the show last year are also a listed AIM and thus also can offer finance not […]

Marwan  joins us to discuss global payments for small businesses. He has been in payments for many years and was first a founder in 2002 so speaks from long experience of both. Veem is a global payments network used by small businesses around the world which allows them to pay their vendors, suppliers and contractors anytime, […]

The Tech press is full of unicorns – but these are almost always “on paper”. Those companies that someone has bought for over a billion – be it a trade sale or IPO – are far rarer. Clay Wilkes has created both starting with just an idea. Galileo Financial Technologies which he co-founded, powers 95% […]

Iwocapay is a new business venture from iwoca, one of London’s leading Fintechs, to offer payment terms as a service. Metaphorically this is a cross between a domestic version of trade finance – helping finance a supply chain – with an oldschool (and rather harder to get these days) bank overdraft – ie a flexible […]

Cuvva have some hundred employees, 400,000 UK clients and 5% of the short-term UK car insurance market which is a phenomenal achievement for any Fintech in any sector. In this episode founder Freddy Macnamara joins us to discuss how price comparison websites have changed the insurance industry, the regulatory review of pricing in re and […]

Online payments are expensive – directly for merchants and indirectly for consumers as the price is obviously higher due to the merchants having a ~3% cost of payments. But in a world where I as a consumer could pay you as a merchant directly from my phone if you simply gave me your sort code […]

One thing serial entrepreneurs learn if the value of a Good Board in helping drive business success and avoiding car crashes along the way. The ne plus ultra is having a great Chairman. Brian Basham has founded many businesses and chaired many businesses. In 1976 he founded the Broad Street Group with £100 he had […]

The trend in recent decades has been to ever-more flexible working contracts – be it gig economy, independent consultants or the freelancing/project-based work that sits in between. Gig-ers have a company app to engage and pay and indies a company around them. Freelancing et al have always been challenging to administer for both the buyer […]

One reason that as the Fintech revolution proceeds Fintechs can do more ambitious things is that there an increasing number of back-end service providers that they can plug into. In this episode Joanne Dewar, CEO of back-end payments services provider GPS – who work with 40 issuing banks globally, and operate programmes with 90+ APIs […]

In LFP152 we took a strategic look at the post-Covid landscape. In this show Julian Cork, COO of Landbay, guides us through the tactical responses by one of the UK’s most solid Fintechs – £1/2bn buy-to-let mortgages written to date and zero losses.   However as to risk “the past is not necessarily a guide […]

It is a cliche to say “the world changed forever” but macroeconomically and microeconomically it has – not because of the C19 virus but because of governmental responses to it. As the landscape for Fintech and indeed all firms has changed for – well decades at this rate in this show I do a one-off […]

As we have repeatedly heard profitability is a major challenge in Fintech. In this episode Tim Nicolle CEO of Trade Finance Fintech Primadollar describes his journey to working out the necessary building blocks to profitability. As someone who has had his own businesses for some 30yrs he has had more experience than most with these […]

The largest financial transaction of your life is also your last – dying! Get it wrong and Boris gets more money for vanity bridges and your relatives are left with a mess on their hands and potentially plenty of squabbles. Get it right and it is smooth for them and you minimise being taxed twice […]

Today the LFP has Dan Kiernan as guest host and instead I am in the guest seat to discuss my long in the making recently released book on the Unlisted Board The Realpolitik Of The Unlisted Company Board – Making Your Board An Engine Of Growth. This is a behind the scenes account based on […]

Do you known that William Russell’s – the 692nd Lord Mayor of London – first trip was to the US to promote Fintech and that he is perhaps the first Lord Mayor of London to have visited all the regions and is well up-to-speed on regional Fintech? No me neither before we spoke. However his […]

In this Brexiting Age the UK must turn its thoughts once again worldwide – how does one do business around the world? How important is localisation vs globalisation? What role does culture play? Aneesh Varma is the founder of Aire, one of Fintechs longest-standing credit-rating firms who have scored over $10bn of VAR to date. […]

Charlie is one of London’s greatest serial entrepreneurs – with ground-breaking the Student Room and Market Invoice under his belt, as an MLRO he saw the huge gap in the market for using AI/ML to solve both the Financial Crime problem and businesses problems in risking prison if they get it wrong. Thus he formed […]

In this show we review a decade in Fintech. Although the earliest Fintechs were formed around 2004/5 (WorldFirst, Zopa) many big names formed around 2010 (Funding Circle, Ratesetter, MarketInvoice). The LFP formed started covering the scene in mid-2014, the year of the first London Fintech week and the year that the Fintech word first hit […]

So far Fintech has lionised technologies – APIs, Open Banking, AI/ML and so forth. But from a different perspective these are just glues to connect things that haven’t been connected before to make new propositions not previously possible. Although this has been touched on so far – marketplaces aren’t the best example – after all […]

Michael conducts the most in-depth analysis of Companies House data on UK Fintechs that I am aware of. That earlier this year he partnered with KPMG and Google on his Fintech Funding and Financing study says a lot. So what can we learn from a decades’s data on UK Fintechs? Well first that only five […]

Capital Markets is the beating heart of FS – far higher tech and far more hardcore than just bank accounts and it is by definition the most complex area. What can we and Fintech learn from the super-big boys working in this world? FIS systems process an astonishing amount of $9 trillion moved around the world […]

Open-banking hype has generally focused on the consumer marketplace. However SMEs can potentially benefit more especially as they currently pay for banking services. Accounts and transactions can be consolidated improving cashflow management and payments can be made at a far lower cost and far faster as well as cool stuff like including “pay me” buttons […]

The Retail Credit Bureau market has been in place for decades but disruption is coming to the market in the shape of Credit Kudos who help people make faster more accurate credit decisions. They have proved that this new source of data enables better credit decisions. Formed in 2015 in anticipation of  ‘open data”  (a superior […]

Not many Fintechs dominate their sector let alone in one of the biggest markets in the world. PrimeRevenue was formed in 2003 and is the largest non-bank supplied of Supply Chain Finance in the world (working capital finance for global trade). They facilitate more than $200bn of payments per annum for 20,000 clients. In this […]

Today Shameer Sachdev founder of Growth Gorilla and I have a wide-ranging conversation about marketing. I’ve done it for over 30yrs and Shameer runs a growth marketing agency who help innovative start-ups, scale-ups & established businesses catalyse growth.. So between us we cover most angles, oldSkool and newSkool

This takes not just the biscuit but the whole packet. We’ve interacted with computers via switches, via punched cards, via teletypes, via audio. But Trulience have taken this to the next level – imagine a video version of Alexa that also responds to your movements (eg maintains eye contact as you move round the room. […]

A super-important overview today. Data is just information is the standard line. Correct but not what matters in the real world. In the real world a regulatory announcement has consequences in organisations and requires actions – be it changing client agreements or operating procedures. What if we could use tech to go beyond the “regulation […]

Change creates positive and negatives. The digital world means newer generations will grow up far more tech savvy. On the shadow side as we have touched on in passing a few times the digital world has been a created a nightmare for mental health in the young. But there are many dimensions of challenges – social […]

Tristan was last on the show some three years ago in LFP063 which has been solidly in the Top5 most downloaded episodes of all time even since. Today he joins us to update us on what is hot in AI/ML – and there’s a lot

This week’s topic is all about getting jobs whatever your age or stage. Maybe you are in a Tech firm of some sort – if so how long are you likely to stay where you are and what’s the best way of getting your next gig? If you are not in it and wish to […]

Britain needs both megabuilds but also a specialised SME property project finance market. Mike Bristow CEO of CrowdProperty a P2P based in Birmingham offers (to both sides) development finance loans and improves risk-returns by disintermediating the SME property finance market. We also debate whether P2P itself is morphing into asset securitisation for institutions (and to […]

All businesses employ people, generate salaries, products and services and sometimes even profits without which modern society could simply not exist, Thus all Fintechs “do Social Good”. However in addition some focus their profits and services on the most disadvantaged members of society. We look at this “social benefit” sector in this show along with income […]

Ten years ago Jeff and his co-founder came up with the idea for Equity Crowdfunding and seven years ago Seedrs became the UK’s (world’s?) first regulated Equity Crowdfunder. In this episode we revisit the origins of the concept,

Today we merge two fascinating topics – the Gold Medal for a startup – the Public Listing and innovating in Venture Capital to provide more patient capital. Our guest who connects these two is super-serial entrepreneur Tim Levene who listed Augmentum l...

There is no end to Fintechs reach – this week to the most fundamental industry in the world – Farming – easily forgotten but without which we would all die soon. 90% of the world’s commodities cannot be hedged exposing producers to huge risks.

Almost all investment has collapsed onto a simple idea of maximising your return. But what if you don’t want your investments to harm society and the world? What if you want to help the world and make a great return? What then?

As we heard in LFP069 Financial Advice costs a packet these days – for most folk it’s simply uneconomic. But FS is a complex topic for those who have spent a lifetime in it let alone those with no experience. We all have debts, assets, cashflow,

FinTech = Fin + Tech. But what is tech? No really what is it? We all see the word so many times but only a small minority of the population around the world have actual experience of what Tech is. In this episode we dive into software and software deve...

What is it actually like being an Entrepreneur? Despite being experienced and having an MBA Ruzbeh Bacha, CEO of personalised news aggregator/filter CityFalcon has found that the reality is very different from expectations. What is it really like?

Strategy is the heart of all business success. Will Wynne has built two great businesses under his belt which have evolved over 12yrs and 5yrs respectively to be champions in their sectors. Based on this experience he shares with us how Strategy evolve...

Trade Finance – a $9trn pa market – is possibly the most important transaction type in FS – a huge number of our possessions will have come round the world in a container and needed financing. Tradeteq is turning Trade Finance form a banking closed-sho...

Creativity springs eternal. Here is yet another new topic, one that no one could have imagined even a couple of decades ago. Litigation crowdfunding gives litigants a new source of funding and investors a totally new investable asset with non-correlate...

Today the super-important topic of “What VCs don’t know about Entrepreneurs;  and what Entrepreneurs don’t know about VCs”. Steve Findlay is a great guest to have to discuss this as he has been a long-time VC and now founder/CEO (Bond Mason and AAA Res...

It’s time for the New Year Special and we tackle what is surely the most important topic of our times – “Is FS + Tech Ushering In Orwellian Tyrrany Rather Than Freeing The People?”. The BigTech giants increasingly act as public censors with the modern ...

App Banks are all the rage and you can go round the world on their cards. However move to another place and you soon find you need a bank account. Norris Koppel founder of Monese is on a mission to build a Global App Bank that will enable you to have l...

How are the changing tides and winds in newFS vs oldFS lending? How are the incumbents and newbies doing? How is the balance of institutional funding of P2P and retail going? What’s the best way to succeed?

We all know that investing in the top P2P has been a good plan. But do corporate bonds offer better risk-adjusted value? Historically you had to have megabucks to buy bonds, or invest in a unit trust. However now WiseAlpha are Finteching the Corporate ...

Financial crime affects us all – oldFS, newFS, citizens. How can businesses control and minimise Financial Crime? We are joined today by Vishal Marria whose data-driven firm Quantexa has grown super-rapidly and works in this area as well as on other bi...

Bought By Many are one of the UK’s oldest Insuretechs from when it was nigh on impossible to launch one and to do so meant one was laughed at. Now BBM have over 600,000 members in over 320 specialist insurance groups.

This is the most important topic for our democracy. What is the constitutional position of regulators? Are they a 4th branch of the State or subsidiary to the existing 3 (executive, legislature, law)? Amazingly no-one knows and modern constitutional la...

You may not be rich, you may not be “sophisticated” but what kind of Stalinism is it that means The State can order you re what you can and cannot do with your money?!? The entire ethos of “P2P” – the heart and most successful sector of Fintech – was c...

Using “P2P loosely there are over fifty to invest in, all with different standards and approaches. It’s a “fragmented and complex” market. Professionals do much due diligence before investing. How is an individual investor to cope?

TransferGo‘s slogan is “Send money around the world. Fast. For just 99p” which is a super-cheap flat fee. In terms of price they deal at a variable 2+% to flat 0.45% (above £1000) on top of the mid-market rates with a known price when you deal.

Nationwide is the largest Building Society in the world with 15 million customers, 1 in 4 UK households have an account, which makes over £1bn profit per annum and is entirely owned by its members (customers).

Nick leads innovation at Barclaycard who in 2017 processed some £250bn of payments. We go back to 1966 and the start of credit cards and continue the narrative through the present into the future. Cards used to be perceived as bits of plastic that we a...

Metro Bank are well known for being the first new UK high street bank in some time but that fails to uncover how radically different there concept is. In this episode Chief Commercial Officer Paul Riseborough joins us to describe how different they are...

On the show this week we have a bumper edition – the future of leveraged trading, online/in-app education, IT Dev, user experience design, new ESMA rules – and much more, Responsible for this fireworks show is Ivan Gowan CEO of multi-award winning capi...

The ultimate disintermediation in FS is for folks to directly buy shares/binds directly and cut out the whole investment management industry as we know it. Even better if it’s cost free to deal. This amazing proposition is becoming real as Freetrade’s ...

Michael is the author of “The Fintech Financing and Performance Report” and expert on strategy and innovation in financial services. In this show we dive into the third edition of his report and dive into the critical and fascinating topics of how UK F...

Once upon a time P2P was a simple thing. Now it’s more accurate to see it as online lending and borrowing. Models vary, regulation varies, the most successful platform was started by a bank, direct lenders have wholesale flows in funding retail or corp...

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

An Insuretch insider said to me “if there is one firm that is doing something truly radical in insurance its Laka”. Aha. So here we are – Laka on the LFP. Laka are re-slicing and dicing the paradigm that led to so much in lending/borrowing but has neve...

Time flies when you are enjoying ourselves and for todays special celebration we have one taboo topic and one private topic so ideally suited to a solo act.  For the main course we get a peep into my upcoming book on the Fintech Board – or more broadly...

Next to no new Fintechs, and no Insuretechs see themselves as building the “full stack”. Rather for many, once one has a product the secret is successful partnering. Jimmy Williams, CEO of Urban Jungle, an Insuretech for the renting generation has deve...

Since Anil and MarketInvoice were last on the LFP, and no doubt as a direct result, they have gone from having done ~£1/2bn to ~£2bn and remain the Invoice Financing market leaders as well as having expanded their product range.

Many electrons have been agitated to produce patterns of light and dark on this topic. Which is probably more interesting aphenomenon than the average article on Open Banking. Ignore it we cannot however and uber-Fintech Guru (in the true sense,

Which UK FIntech does $3trn of business per annum and are in 7 countries? Well I guess for readers on the website the pic above is a bit of a hint. David Mercer CEO LMAX Exchange joins us today to dive into the subject of marketplaces which have been a...

Which Fintech started in a basement in Stockwell, has done over £65bn of FX business, do over 1 million transfers a year with 600 staff in 7 offices, whose chairman is a former deputy Governor of the Bank of England and according to price comparison si...

In this New Year Special I’ll survey the state of the art and present a report card for each of the main  Fintech sectors – P2P, Bitcoin, Blockchain, Money, App-only banks, Insuretech, Digital I.M., Regtech,

Data is the new oil ‘innit. Fintechs use it by the bucketload don’t they? Incumbents are slow off the blocks aren’t they? What if a lot of this is simply not true? What if its hype and spin? What is the reality?

This week a bumper-packed Tour d’Horizon/Tour de Force. William Lazonick is best known for his iconic “2014 Harvard Business Review’s best article” Profits Without Prosperity: Stock Buybacks Manipulate the Market and Leave Most Americans Worse Off His ...

Much Fintech (online wealth managers qv) is just “putting lipstick on a pig” – digitising existing processes at oldskool prices. No-one can say this about CrossLend who securitise loans ~200,000 times cheaper than oldskool prices and securitise down to...

The ONS has stated that the average UK worker will end up with eleven pension pots in their life. What a nightmare to track and manage for decades! What can Fintech bring to the party? In this episode Romi Savova CEO and founder of online pensions prov...

The best post-“post crisis” banks have leaped ahead and are well on the way to leveraging Fintech to make themselves even stronger. Alexander Ball Fintech Manager at ING talks to us about a bank which has over 100 partnerships with Fintechs,

52% of UK SMEs based floodplains don’t have flood cover! Insurers struggle to insure flood risk due to the difficulty of modelling and assessing the economic impact. Many people/businesses are unable to get insurance cover at all. Every year, globally, there are $50bn of flood caused economic losses of which only $9bn are covered by […]

A year ago in LFP060 (currently the 2nd most downloaded episode) we covered Open Banking/PSD2 from a Regulatory perspective. In this episode Louise Beaumont argues forcefully that Reg & Tech perspectives are “necessary but not sufficient”.

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

Money may or may not be “the root of all evil” but it is the root of FS and the economy – both of which are problematic.  The nature of current money is absolutely part of this equation. In this special episode we review what money was,

The so-called Internet of Things is much hyped and early examples (smart toasters anyone?) are worthy of ridicule. However market-leading Neos have taken it to the next level – using insurance, your phone and devices installed in your home to protect y...

Conrad was on the show back in LFP020 since when he has built Funding Options (strapline “your free marketplace for business finance”) into one of the most successful London Fintechs. They were chosen as one of three UK government mandated SME Referral...

Steve Husk has decades in IT and FS and in this tour d’horizon we dive into his experience of delivering IT solutions from design through to sales, why the Cloud as a technology enables a totally different service proposition and what it means to scale...

Trade Finance is one of those less media-highlighted but vital areas of the economy – it really is the oil in the engine of international trade. It’s one of those “how hard can it be” areas where it turns out quite a lot of wrinkles make it more of a s...

Data is to our age as steam was to the industrial revolution, just rather more intimate as, in extremis, your data reveals you and your life. It needs to be kept secure and it needs to be kept private – few of us would be happy with a world where all our records were available. […]

Twenty or so new banking licences have been granted since 2010. The UK Retail Banking Sector is incredibly diverse but this is often disguised by the single label of “Challenger Banks” which hides far more than it reveals. UK Retail Banking is a very diverse sector with players with very different focuses and motivations. In […]

We all know that buying a property in the UK is a nightmare, that property prices are through the roof, that a first time buyer in London has an average age of 39 and that the “Bank of Mum and Dad” now has to contribute to around a third of first time purchases. Yet most […]

Today we aim at the beating heart of FS – its IT systems. I am delighted to be joined by Mark Beeston founder of Illuminate Financial who has over two decades of hardcore FS experience trading derivatives, COO- and CEO-ing, to discuss Capital Markets Fintech. A lot of Fintech is B2C, some is B2B but there […]

Do you have to be either “a Fintech” or “an incumbent”? Increasingly as #newFS and #oldFS converge this duality becomes less meaningful and its more about how well FS players young and old are embracing both “digital” per se as well as the business model changes it both implies and enables. Azur is a great example of this trend. As […]

One of the founding ethos of Fintech was “unbundling” – the slicing of FS into single-issue firms. This is now looking old-hat. Revolut acquired 500,000 customers in less than two years by offering interbank rates on FX transfers and so was one of the most successful of Fintech 1.0. Now they are leading the way […]

Can InsureTech change the landscape of insurance as a whole or will it just enhance parts of the value chain? Conventional wisdom says the latter but the appearance of a model called “Reinsurance as a Service” could have far wider repercussions. Traditionally insurance (in all its very diverse/speciated forms) is in three layers. Brokers. Insurers […]

Investment management – despite its known deficiencies – has been least disrupted perhaps so far by “Fintech”. The first wave of I.M. Fintechs (pre- & up to 2015) promised “democratisation” but have made relatively little headway. The awfully named “roboadvisers” are neither robo nor advisers but are ludicrously hyped. There’s also the rather challenging question […]

Squirrel’s self-description is: a smart new way of budgeting and saving that helps you resist that temptation to spend. We work in partnership with employers, local authorities, housing associations and credit unions to bring better money management to the widest possible audience. Squirrel’s 7,000 clients range from those on benefits to those earning more than […]

Many Fintechs have successfully gone from Startup to Scaleup. But none have gone to true Growth company yet. Today we are joined for a Master Class by a man with a phenomenal growth story to tell. Faisal Husain has taken Synechron from an idea to 7,000 people in 18 countries worldwide and generates over $400m […]

Trussle are the UK’s first online mortgage broker, have just raised £4.5m in a Series A and have an exclusive partnership with the FTSE listed property search giant Zoopla. So they are doing well for a two year old startup

“Everyone” frets over financial advice in the Fintech Age. Regulators set out to “protect the consumer”, worthy bodies talk no end about the need to protect “people” (never themselves oddly – generally they imply (/mean) folks of lesser education/wealth) and the rest of us are just confused over the labyrinthine rules around tax, savings and […]

Happy New Year boys and girls

Reformation or refactoring of banking is the Holy Grail of the Fintech Revolution. Do that and the revolution is a big deal. Get nowhere near and its all rather marginal. So-called challenger banks have ended up rather same-y. Will “App-only” banks end up going down the same route forced my micro-regulation and micro-supervision into the […]

2016 is the year Fintech realised it had to aim for making a profit. Very few do and for the tiny handful that do its mostly “minimal”. Solving this problem is absolutely vital for the Fintech revolution. This is the story of a Fintech that has done just that – satisfying customers, staff and shareholders. […]

Everything exists in a context. FS is a social construct that has differed massively over time and space, always existing in a context of Policy and Regulation.  Over my 30 years in FS I have seen deregulation time turn into hyper-regulation. Talk about pendulums (pendula?). Where do these changes in Policy and Regulation come from? […]

After organising nearly 1,000 folks in the O2 for Europe’s largest P2P conference ever I managed to grab Peter long enough to have a fascinating tour of the globe and P2P sitrep in the three major hubs. Peter Renton has perhaps has more of a broad and deep understanding of P2P worldwide than anyone. When […]

I am delighted to be joined today by Dr Tristan Fletcher Research Director at Thought Machine to talk about Artificial Intelligence and Machine Learning in Financial Services. His Linkedin strapline is “I apply state of the art prediction methods from the Machine Learning (Artificial Intelligence) academic community to real world problems” This is a mega […]

I am delighted to be joined on the show today once again by Rhydian Lewis CEO at Ratesetter to talk about the ultra-hot topic of provision funds in p2p/marketplace lending. Rhydian was on in the early days back in LFP019 in an episode talking about P2P beyond the metaphors. That’s a good theme for today […]

I am delighted to be joined today by Jonathan Howe UK Insurance lead at Price Waterhouse Coopers. As long time listeners will know I am very reluctant to give anyone a big picture topic on anything. Most folks are experts on one coalface and very few on the whole coal mine. However Jonathan is a […]

I’m delighted to be joined by Paul Thomalla expert on the upcoming changes in open-banking, SVP at ACI Worldwide, member of the Payments Strategy Forum (PSF) and board member at Nexo Standards. Upcoming changes re opening payments to non-banks and opening access to bank account data will change the industry. On top of this we […]

I have the pleasure to be joined today by Will Wynne MD and co-founder of Smart Pension who have had the fastest 0-60 of any Fintech that has been on the show to date and it’s a record that’s hard to beat. How did they do it? Listen up and all will be revealed – […]

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

I have the pleasure to be joined today by Geoff Miller, CEO of Afaafa and former CEO of GLI Finance which he built from having no presence in AltFi to having over two dozen share stakes and loan agreements. If existing FS has gone far to far in the direction of endless PC box-ticking – […]

I am  delighted to welcome Rob Moffat, Partner at Balderton Capital to dive into the topic of Venture Capital and Fintech.  As I aim to present London Fintech in the round I have been – for a long time – keeping my eye open for a friendly VC to have on the show. This has […]

I am delighted to be joined this week by Professor John Kay – one of the UK’s leading economists and outstanding authority on Financial Services to discuss the truly vast potential that still exists for Fintech to disrupt FS. Fintech as we know it now has so far only put its toe into that ocean […]

Less than a week ago the UK voted to leave the EU. This comes against a background of severe problems for listed US marketplace lenders, a worlwide tailing off of institutional capital into the sector and only a tiny number of Fintechs having achieved profitability (many years after launch). I thought it time to take […]

Cormac Leech is co-founder of Liberum Alternative Finance who are a (the?) specialist strategic adviser and development partner to the UK Alternative Finance sector, focusing on online direct and marketplace lending and equity crowdfunding. Liberum have done some $2bn of the largest P2P investment fund originations in the UK – notably P2PGI now a listed […]

This week I am delighted to welcome Jon Vollemaere CEO of R5FX to talk about the realpolitik of Fintech Scaleups, Asia Fintech and how relevant the “Fintech” label is and isn’t over the journey from being a Fintech Startup to Scaleup. R5 offers a new electronic marketplace for emerging market foreign exchange (EMFX) and electronic […]

This week we dive deep into business overdrafts with James Sherwin-Smith CEO of Growth Street. If you overdrafts sound dull consider the fact that they are the most commonly used form of financing for SMEs in the UK and that their supply has fallen by 40-50% in the past twelve months :-O That’s enough to […]

Did you know that the world’s first P2P FX firm was formed in 1998 and is listed on the Toronto Venture Exchange and cross-listed on the Frankfurt Stock Exchange? No, me neither. Midpoint, formed in 1998, describe themselves as the world’s first authentic peer-to-peer (‘P2P’) international foreign currency and payments platform, have a US patent […]

I am delighted to welcome Rich Wagner chairman of the Emerging Payments Association to discuss “fair access to the payments network for Fintechs”. The EPA which is based in London, in passing houses the worlds only incubator for PayTech Fintechs This is a real hardcore topic a long way aways from the fluffy bunnies and […]

What is corporate venturing perchance you ask? One definition is an “internal VC arm of a corporate” – although this hides some major differences with VC per se. In London Fintech Podcast episode 48 I am delighted to welcome Ben Luckett MD of Aviva Ventures to dive into corporate venturing. For the company doing it […]

I am delighted to welcome Jake Wombwell-Povey co-founder and CEO of Goji to dive into the fascinating subject of –the Innovative Finance ISA. Goji’s aspiration is to take P2P into new investor markets and their first focus is on providing a white-label/back-office IFISA solution to existing platforms. The IFISA might be unknown off these shores […]

This week we have a super-clear dive into Fintech Payments companies with Hiroki Takeuchi CEO and co-founder of GoCardless.  GoCardless, founded in 2011, are experts in recurring payments (where they process over $1bn per annum (via the direct debit "pipes"). Their clients range from gyms and scout groups include the UK Government, Tripadvisor, Virgin, the Financial Times and Funding Circle – so clearly they have had their tires kicked and found rock-solid by some high profile names. They are backed by some very blue-chip VCs including Balderton Capital, Accel partners, Passion Capital and Y combinatory.  Their Series A in 2013 raised just over $3m, Series B $7m in January '14 & a large Series C is rumoured to be in the works. Their nice, simple strapline is “GoCardless is the quickest and easiest way to take one-off and recurring payments online”. They currently take payments from bank accounts in the UK, Sweden and the Eurozone. Topics discussed on the show include: - running businesses and getting married - Hiroki's journey; especially around entrepreneurship; Silicon valley, Y Combinator - where the entrepreneurial meme in young folks life comes from - from next to non-existent at Oxbridge 305yrs ago to having entrepreneurial societies there these days - the importance of cultural context be it films or communities online in promoting entrepreneurialism - "a lot more awareness of what's possible" - Hiroki's main lesson from his time in the US - the advantage of US culture in this context - Payments divide into three main mechanisms in any given country (some have more); "cards" (Visa/Mastercard/etc), "push" (in the UK FPS,  BACS), "pull" (UK: Direct Debit, US: ACH, Europe: SEPA) - only cards are currently "global"; the other systems are fragmented and vary across country/region [pull and push systems often run on the same underlying mechanism] - the importance of "schemes" - the set of rules that sit on top of the "pipes" that carry the payments - GC's strength is in connecting push-mechanisms seamlessly together to enable simpler bank-to-bank payments for businesses - one for a future podcast - opening up access to lower levels of the payments systems rather than "sitting on top" - innovations in payments in the past 10yrs have been at a fairly superficial level on top of the underlying infrastructures - the biggest payments innovation in the UK in recent times is FPS (which is a purely banking system) - BACS basically doesn't exist anymore in the UK as FPS is a much faster "push" payment system - the challenge for a payments company is that they are in essence "Person C" setting up/initiating payments between "Person A" and "Person B" (and historically the whole system has been designed that only Banks are "Person C"s) - at present this can only be done via GC having relationships with banks - a practical example of the benefits if the LFP set up some recurring payments scheme via GC; (1) it couldn't be done for a small number of payments; (2) the process is simpler and smoother; (3) transnational is a pain (at best - in practice via a card system is the only practical way) - Paypal build on top of various payments systems but act like a credit card provider (hence the level of their fees) - credit cards as poor ways of handling recurring payments; the average life of a credit card is 18mts, so every month about 1/18 of your payments will fail - current payments systems don't suit the web; you would never design systems from scratch as they exist today - GC's vision is to create a global bank-to-bank coherent payment mechanism - at present they use SEPA/Direct Debit/Sweden's syst...

I am delighted to welcome Stephane Dubois founder and CEO of Xignite on the show to take a deep-dive into APIs which are not only the very Lego building blocks of Fintech but also set to become even more important with forthcoming legislation around opening up banking data. In this show I also share some exciting developments in making the London Fintech Podcast more interactive - see below for details! Xignite is a decade-old company, focuses on market data, has just raised $20m in a Series C round  and is one of the leading providers of financial APIS in the world with more than 1000 clients in over 50 countries and serve a staggering 60 billion API calls a month. They anticipate doing over 1 trillion API calls in the first half of 2016 alone. So what are all the facets to APIs – why is something so tecchie of such importance? You will have all heard of APIs but whether you know comparatively little or if you live knee deep in them all day I'm sure you'll find plenty of angles of interest in Stephane's long experience, clear metaphors and views of where they are going over the next decade. In this show we discuss, amongst much more:- Stephane's journey from Brittany to Silicon Valley to today - how Xignite came about - from failure in wealth management to solving an essential problem in wealth management software - the provision of market-data - how the leaders of business revolutions - whether in ways of working or in APIs - can take over a decade to ripple widely - "the technical foundation for APIs were laid down in the late 90s" - the evolution of the web as having been layers of technology building upon prior layers of technology - how businesses work with this evolving computing ecosystem - what is, in essence, an API? The meal analogy. APIs as services. - "real time data is the meal that's really hard to cook" - does the cloud "exist"? The cloud as a utility - the vital role of the cloud in scalability;  "when we say the cloud we generally mean the public cloud; and when we say the public cloud we generally mean Amazon as they are 10x bigger than everybody else combined" - comparison of the Amazon cloud with an operating system they use - "to go from 500bn to 1trn we just turn a few knobs"; "the more we buy the cheaper it gets" - sourcing the data from non-cloud sources and putting it into the cloud - the story of API supermarkets and why they didn't catch on - $25bn p.a. is spent globally on market data - the main factor in adoption of APIs - what makes one better than another - latency issues with APIs - "APIs are everywhere" - all data going to mobile phones is via APIs, the internet of things is all about APIs - APIs as a simple way of communicating - what do APIs enable? What parts of the Fintech Revolution would not exist if APIs hadn't been created - "APIs enable customer satisfaction" - the vital point that as APIs (from another angle) mean that a lot of development effort i avoided/"outsourced" that developers have been increasingly able to focus a greater percentage of their time on customer-facing development - and thus producing the very customer-friendly faces of Fintech applications - the banks conversely have been internally focused since 2008 due to the weight of regulation etc - future developments in APIs over the next 5-10yrs - how banks shoudl respond to this "old stack" of IT versus APIs - Xignite's new API development - cloud alerts - how banks should respond to this "old stack" of IT versus APIs - the "old stack" and "new stack" model - Xignite's new API development -

Today I am delighted to welcome Alex Langridge Director of The Up Group on the show to talk about the very hot topic of whether Fintechs can grow up without, as it were, turning into their parents. Less metaphorically what will mean that Alternative Finance remains alternative and doesn’t just end up like a Moorish […]

On London Fintech Podcast episode 43 I am delighted to have Ruzbeh Bacha CEO and founder of CityFalcon on the show. CityFalcon’s mission is to democratise access to financial news thereby creating a level-playing field for all investors whether retail or institutional. They provide comprehensive real-time and relevant financial news which is free for consumers […]

This is London Fintech Podcast episode 42, the answer to life, the universe and everything. Well a bit of everything anyway. And I have the pleasure to be joined today by – er – myself. In the now traditional (um – can doing something twice be a tradition?) first podcast of the year step away […]

In a Fintech Era when Big Data is all the rage Equity Crowdfunding rather looks like a very poor relation indeed. Less Small Data even and more No Data. As I have written about in The Strange Case of Missing Data on UK Equity Crowdfunding none of the platforms, the UK Crowdfunding Association or the FCA appear to be providing or asking for even the bare minimum, I am pleased to be joined in this curious vacuum by Rupert Taylor MD of AltFiData who first appeared on the show a year ago giving an overview of the whole alternative finance scene.  The AltFi Data team recently released a report City lawyers Nabarro entitled “Where are they now? A report into the status of companies that have raised finance using equity crowdfunding in the UK" For those of you who aren’t aware of the depths of the challenge in this area the acting head of the FCA and chairman of the FCA were grilled recently by the UK government's Treasury Select Committee.  Perhaps the most shocking aspect of this was the lack of grip the FCA appeared to have on data on the sector – venturing that p2p losses were “around 1%” and that there was a lack of performance data around ECF.  However the FCA did mention that they insist that ECF platforms make it clear that the majority of startups fail. In this episode we discuss: - Rupert's charity Momentum which aims to give children from a state academy work experience which he sees as the essential tyranny which can hold those back whose parents aren't well-off/well-connected (especially as much experience/intern-ing can be unpaid :-() - the problems of the English language, despite which we decided to continue using it :-) - the necessity of asset classes demonstrating their performance. A comparison of #ecf with #p2p which is doing a far far better job of transparency around track-record - the huge difficulty of finding out even simple statistics like how many deals have been done and how many of those companies are alive today. Companies house Dickensian latency around data; social media; telephone calls and many other "old world" brute force techniques of discovering - the twin aims of the report being this basic "survival" data and the desire that the #ecf industry pick up the ball and run with it - in it's own interests as well as that of their investors (who they purport to serve) - the parallel between professionally-managed stock markets and #ecf 2015 - the media treatment (both old and new) to the report to spin it into saying what they wanted to in the first place - £140m raises to June '15; over 2015 £145m is expected to be raised - more than in its prior history; - the average age of ecf-raising companies being 3yrs which is not a startup - although it is early days, especially for companies that raised funds in 2014/2015, the data shows that 4 out of 5 companies that raised ecf are still going.  Contrast this with the oft-reported (but apparently groundless) stat that 9 out of 10 startups fail.  Stats based in research are along the lines that roughly 1 in 2 startups failed (RSA, Nesta, ONS) - the fact that an ecf-raising company is very different from a startup (which stats relate to)

In episode 40 it’s a good time to turn to the response of the banking sector (used here as a proxy for all FS incumbents) to the Fintech revolution – both Fintech’s #newFS and its #newTech/#newIT side. I couldn’t think of anyone better to discuss this with than Anna Irrera who is perhaps the only […]

In this episode we are taking a break from talking to the biggest players in London Fintech and dive instead into the far more numerous, if lower profile, world of small Fintechs. Given the outburst of tech and business creativity right now there have been plenty of new and young companies forming in this sector […]

I am delighted to be joined by Peter Renton to discuss some key highlights from the Lendit Europe 2015 conference, especially for those of you who weren’t there and even for those of you who were as in the afternoon it split into two streams. Peter was back on the show in LFP015 way back in last December wearing his Lend Academy hat relating to us the amazing story of the development of P2P in the US – something he saw from it’s very origins when it was scarcely noticed. Today he is joining me wearing his Lendit Conference hat. Lendit now runs by far the world’s largest P2P conferences – some 2,500 in Lendit US 2015, 500 in Lendit China 2015 and yesterday around 750 in Lendit Europe. In this episode we have an off-the-cuff conversation about what leaps out to us as the really interesting things happening in P2P in Europe right now.  It's a great way to get up the curve fast and we discuss a wide range of topics: - the story of the Lendit conference - from original idea through to global domination in just two years and the important entrepreneurial lessons and steps along the way - Lendit also have an excellent policy of allowing online viewing at the time for free and make available videos of the presentations (also for free) - highly praiseworthy! :-) - Funding Circle's landmark purchase of Zencap making them now the undisputed global leader operating in five countries worldwide - Oligopolisation - Rupert Taylor's presentation The Impact of Institutional Investors - What Does the Data Tell Us? showing, inter alia, that the top-three are pulling away in terms of increasing their market share as well as the returns at a detailed level within the industry - Who would have spotted TrustBuddy in advance? Varying standards of due diligence by institutional investors in P2P and historical precedents - Regulation in #oldFS and #newFS and associated doubletalk. The question isn't "do we need regulation?" but "what kind of regulation do we need?" - Institutional capital as being reintermediation and the new funds to be launched by P2Ps (eg zero-fee (?) ~ETF by Funding Circle and LendInvest's rumoured fund) as anti-reintermediation - diversity of funding in P2P - will institutions eventually crowd out the retail investor? - can institutions outperform given the improvement in pricing algorithms by the P2Ps? (&Rupert Taylor's presentation above contains data in re) - Cormac Leech's presentation "3hours compressed into 20minutes" - a whole host of must-know points as well as speculation (Europe to overtake the UK?) and advice for the Bank of England :-) - We discuss the Risk in Alternative Finance panel session that I chaired - whilst good on qualitative risk P2Ps still find it very hard to come up with a clear and simple quantification of what the risk to investors is. Is this related to the fact that growth in retail funds (as per Cormac's presentation) is coming in terms of more from the same people rather than a great expansion of the retail investor base - We discuss simple ways of communicating risk and I learn that Lending Club have already implemented one of my key proposals [a button whcih shows the risk of a new investment in t...

Platform Black is the UK's second largest invoice discounting marketplace having traded over 2,000 invoices and recently passing the £100m mark.  On the show John Regan an Angel Investor who co-seed-funded PB joins us to discuss its journey and in particular a much-rumoured about (in cognoscenti circles) problem with a default/recovery. He also takes this chance to talk about crises in general and how to react to them - whether in life (sailing across the Atlantic) or in business. In a world where most everyone seems to portray themselves as an entrepreneur John is the real deal. He has a track record of building 3 businesses from start up to trade sale. How many folks have done that once let alone three times? In the bars and bazaars the whispers/gossip goes around about this company or that. As I have indicated before in terms of verticals in fintech the equity crowdfunding scene seems to produce the most [and if you want some gossip check out a very un-fluffy bunny blog on deals and companies in that sector - The Truth About Equity Crowdfunding]. In P2P by far the most rumoured/gossiped about company has been Platform Black – the number two player in the fintech invoice discounting market. I have heard countless stories from countless sources. Plenty of smoke but differing accounts of the fire and how much damage it did. John has kindly come on the show today to dispel the smoke and talk about the fire. Normally at this point I summarise the main topics of the show. In a world obsessed with "data" its hard to recall that data is at the bottom of a hierarchy. Above it is information. Above that knowledge. Above that at the top of the tree is wisdom. This show is about wisdom. That wisdom applies in life and in business and plenty of it in P2P (not least of which the weaknesses of a "true" (Ebay-like) marketplace model).  If I summarised it the real juice would get lost - a bit like me saving you going to a performance of Macbeth by telling you it's about an over-ambitious bloke who egged on by his pushy wife tops a king and it all ends in tears.  Thats a summary but you see how it loses most everything. So this is one for the audio listeners only :-) Dive in and enjoy!

I am delighted to be joined by Chris Rieche CEO and co-founder of iwoca. Iwoca is a Fintech lender but not a P2P.  They raise finance and then can lend it out themselves – a direct lending model which has many advantages as we will hear. iwoca lends up to £100k to small businesses in the UK, Poland, Spain and Germany at rates varying from around 13-40% p.a and has around 100 employees in London. It has also this year made a landmark partnership with the giant Alibaba to offer a trade finance product and raised £20m in equity capital this year. Chris and co-founder and CTO James Dear founded iwoca in 2011 right back in the early days of the Fintech lending movement.       In this episode we discuss: - whether the amount of ping-pong is going down in Fintech :-) - Chris' journey and motivation to start iwoca - why iwoca chose the direct lending model and not P2P or a fund structure - the gap in the market for small business lending (typically companies of less than a handful of employees and turnover of £100k-£2m) - banks in contrast tend to start to classify companies as a business customer only above £2m turnover; below this they would tend to treat the business as a consumer that has a business attached to it - the bottleneck in small business lending - not just the failure of quantitative easing to feed through into SME lending by banks but the cost of just doing a loan [and naturally less profit in small loans] - the focus on lowering the cost of underwriting small deals for small companies; by focusing on smaller companies they have to make an extra special effort to make the cost of underwriting as small as they can - the emphasis on being able to assess the risk in small companies - an explanation of how they assess this risk cheaply and quickly whilst still doing it well (note that in the case of direct lending the money at risk is iwoca's - they are principals not agents) - their attitude to the length of loans traditionally made by banks - the speed with which they can lend moeny out compared to the marketplace model - a discussion of the irrelevance of this very "Fintech 2014" word of "gamification" - in the world of business folks are too busy doing their business to play games or work out the best strategy in games; the advantage of a direct price [cf Kantox FX rates in LFP0ZZ] - the desire of iwoca to provide finance at the point of need of the customer - embedded in the day to day business of a company (in this context note the Alibaba - iwoca do not take charges over assets (how useful are 3,000 pairs of shoes eg?) but take personal guarantees as a measure of the commitment of the owners to repay the loan - the connection with Commerzbank and the value of banks in helping them - iwocas operations in Germany, Spain and Poland And much more :-) Enjoy!

On the show today I am delighted to be joined by John Goodall CEO and co-founder of Landbay, a member of the P2PFA of leading UK P2P/marketplace lending platforms. Landbay connect retail and institutional lenders with loans assets in the UK residential buy-to-let mortgage market. They have a well-secured “belt and braces” approach as not only do they have a first charge (mortgage) over an asset (“the building” :-D) but also the debt is serviced by a rental income stream from the tenants. Stress testing is a very important topic across Finance, though, as all too often one that is poorly understood. Why? As one of the unique things about finance is that it almost always relates to the future, the unknown future. You buy a pint of beer now you drink it now. You eat a cheese sandwich now you know what it is like now. But invest money – and well, as Yoda put it, “always in motion the future is”. Stress testing basically amounts to “what would happen if the shit hits the fan”? Would investors lose 1%, 10% or 100%? In crowdfunding early-stage equity this is an easy calculation – the answer is obviously 100% - you’d lose the lot. But what about in P2P (debt) in a well-diversified portfolio? Well as we will discuss its not a trivial question. In essence as one has to decide how much of what type of shit this what fan. As I never cease to try and explain to the non-FS crowd who have lept on the Fintech bandwagon “in FS the devil is always in the detail”. Not only that but in an uncertain world even so-called experts can’t be trusted. A couple of years ago the ECB (European Central Bank) had European banks “stress test” their portfolios. A few months later many banks had already experienced losses beyond those worse case expectations. So more press test than stress test and yet more FS BS. John is an ideal person to talk to about this subject as Landbay have just spent time and money getting their portfolio independently stress-tested. So he is well placed to talk to the challenges, value and limitations of the methodology, as well as I hope reveal some of their results.   Topics discussed include: - if P2P was a schoolboy which year would be it in?  A memorable soundbite from John on where the market leader would be :-) - John's background having formed and sold a headhunting firm; lessons learned, and phase changes in the growth curve of a company - what does Stress Testing mean? Doomsday scenario? Bad weather? Really bad weather? - the disconnect between normal market events and extreme market events - the extreme case is, by definition, always a disaster - "single number" answers to stress tests versus "surfaces" depending on key parameters; the sensitivity to this parameter or that and how that feeds back into deeper understanding of the business model (which can be counter-intuitive) - the big difference between a stress test done internally versus using external specialists - the real difference in quality of the results depending on the in-depth expertise of those conducting the stress test - furthermore the important aspect of a data-rich marketplace (such as mortgages) versus less well understood (data-wise) markets eg SME lending - how to cope with restrictions of being a young P2P and hence not having a long history oneself - how does one stress test non-credit issues and less-modellable risks such as eg cyber-attack? "Qualitative stress tests" - Landbay had two motivations - (a) to help inform lenders of the risks that they are taking; (b) re the Landbay provision fund and its adequacy - the very process of going through the process has informed them as to how to tune their operational model eg underwriting/collections policy

Funding Circle need no introduction being the heavyweight SME marketplace lender in the UK and the only global player to have a large footprint in both the UK and the US.  Those on the conference circuit may be more familiar with Andrew’s co-founders, ...

In a world where Fintechs are on a rapid startup-scaleup-mature company growth curve how does legal risk look? In a totally new scene how can we know how well legal structures may, or may not survive events that have never happened? I am delighted to be able to be joined today to discuss these issues and more by one of the City's most prominent Fintech lawyers Jon Segal Partner who heads the Fintech practice at City law firm Fox Williams. “Tech debt” is a well-known phenomenon in the startup/VC world. In essence you start your business with a spreadsheet, then need to upgrade to an access database, then SQL etc etc. The main point being that unless you are careful you are always in tech-catch-up mode. In a recent article for AltFi I extended the concept to “Risk Debt” … you do what you have to do but in the exponential growth phase from startup to scaleup to mature company you are once again always playing catch-up. One of the categories of Risk Debt that is so important it deserves a show in its own right is Legal Debt. Once again you start with some simple dos you downloaded from the net and carry on. Once again you are playing catch-up. Once again you are playing with fire hoping that you don’t fall through the tech/risk/legal holes. An additional important angle is that in a new sector (a rarity in itself) one never knows how good a legal structure or document is until it is tested in court. Before then its just a bunch of words and some fees. So for example how well will platforms hand over their agency responsibilities in a case of platform failure? How can we have solid risk and legal controls without stifling innovation? The advantages of having experience in both existing FS as well as the new Fintech world. What can #newFS learn from #oldFS in this context? What can #oldFS learn from #newFS? Which types of startups run most legal risk and which types least?  How does the background of the founders tend to affect this? What is regulatory debt? Is regulation light-touch after all? Can we rely on regulators to spot tomorrow's problems? The challenge of getting innovative structures through regulations designed around "the new square peg". How regulation distracts attention from managing the actual full waterfront of all risks. Are provision funds funds? How are they structured? The lack of independent assessment of the size of a provision fund. At a governance level the lack of independent non-executive risk directors and risk committees of the Board. Will it be left to a workout crew from the Big 4 to plough through a pile of legal agreements, undocumented passwords etc desperately trying to de-anonymise contracts between the p and the p in p2p? Will it be a tangle of spaghetti like Shearson which was so stressful that regulation was introduced to ensure all derivatives are centrally cleared thereafter? There are many many such untested cases – these are the sharp end of legal debt. Anyway find out all these things and much much more on the show ... as Jon's twitter handle - @FintechGuru implies - he knows a lot about Fintech as well as the legal side. Enjoy! :-)

WorldRemit is one of the world’s leaders in the key sector of remittances. Remittances, to cut to the chase, is largely the province of often poor migrant workers sending their money home. To date this has been dominated by large players such as Wester...

I am delighted to be joined by Rich Wagner founder and CEO of Advanced Payment Solutions (APS). In a world where some of the largest Fintechs were formed only a few years ago it’s rare to meet one that has been going for 11years, APS is one of Europ...

As this is London Fintech Podcast episode thirty and as it’s a big round number I am especially delighted to be joined by one of the giants of the London Fintech scene Anil Stocker, CEO and co-founder of MarketInvoice. Not only do we do a deep-dive int...

New entrants into Fintech need a twist.  ArchOver has an innovative (a word oft used but rarely accurate) and very interesting innovation of combining Credit Insurance with Secured SME marketplace lending.  Additionally they innovate by not just using single invoices as security (which is common) but by the whole set of invoices (ie "accounts receivable"). This model they call "secured and insured" - a real belt and braces.  In a marketplace which, post Lending Club IPO has been characterised by a dash for asset growth it is very refreshing to see a P2P that is focused on minimising Lender Risk (as subject I have written about a lot this year - see eg my columns for AltFi News). So I am delighted to be joined on the show by Angus Dent CEO of ArchOver to discuss how "secured and insured" lending works. It's certainly a fascinating crossover of insurance, banking and the new digital Fintech worlds.   In this episode we discuss: - Aston Martin club racing [and whether there is a car racing masonic lodge at the heart of UK P2P [see eg LFP021 where Zopa's CEO Giles talks about racing Caterham's inter alia]] - Aston Martin Club Racing and crowdfunding - how insurance works in the world of racing Aston Martins - the comparison between invoice-based finance and ArchOver's model of using the whole invoice pool as the security - how invoice discounting works by way of contrast; when it works well and when it doesn't - asset-based finance as extended to include these intangible assets [cf property, machinery] - the role of credit insurance in insuring the value of the payments - the benefit of the credit insurers processes around operational management of the invoices - the situations when credit insurers are reluctant to pay out and how to avoid those - the benefit to the lender in having a belt and braces approach to lowering their risk - both the security of the invoices (with a haircut) as well as being insured - the benefits to the borrower in lowering the cost of funds and not touching any other assets which they can still use as sources of security for finance - the benefits to all of two layers of credit checking - ArchOver's analysis and the credit insurer's - credit insurers having a good reputation; their origins in export business; a well-established model - the reactive nature of companies raise funding and need for speedy turnround - ArchOver's average loan being £220,000 (far larger than the average UK P2P loan) - typical borrower rates are 8.25% , 2yrs period and lender rates 6.75% - ArchOver as one of the few P2Ps who disclose borrower rates - ArchOver have a number of lenders lined up to fund loans so that a firm offer can be made to the borrower [cf other platforms which have a more "publish for an auction" process]; why it's important to provide borrowers with certainty - credit insurance as a de-risking device compared to internal provision funds in P2P - "high levels of security" versus "low levels of risk" - ArchOver's approach to getting the word out about their innovative approach   And much much more :-) Enjoy!

David Stevenson is a journalist extraordinaire and writes for a number of leading publications including the Adventurous Investor Column in the FT, the Investors Chronicle, Money Management and Investment Week, where he’s the contrarian columnist.  He also runs the AltFi empire that spans conferences, news and as we heard in LFP010 with Rupert Taylor, AltFi Data. He has also authored a number of books on investment including three for the FT as well as having extensive interests in the visual media world. David joins us on the show to talk about why it matters that Alternative Finance becomes viewed as an asset class in its own right - a subject that draws together his long-term role as an investment commentator as well as lynchpin of the London Alternative Finance scene. I must say that I thought that this hypothesis about being an asset class was rather a linguistic point. However, having discussed it with David, I can see the importance of it being so and I hope you will be persuaded too. Topics discussed include: - David's career journey to where he is today - his long-standing interest in alternative investments as a whole and how that informs his views on the latest incarnation of alt. investment - Alternative Finance - why Asset Management Fintech is a very small sector (can you think of any firm other than Nutmeg?) - the role of (a) Exchange Traded Funds, (b) the likes of Charles Schwab who sell these for no fees, in this phenomenon - what it takes to make an "asset class" - the example in this context of how the gold investment market has evolved - asset classes requiring fungibility, liquidity, transferability, secondary markets, transparency, sufficient flow/volume, durability of counterparties/originators - how Alternative Finance has been mutating from a series of isolated products into an asset class (cf the debate around the AltFin ISA in this context) - Alternative Finance as part of a much broader "Alternative Credit" asset class - why institutions can help the private investor's interests and what is required for that to happen rather than the opposite - whether the exponential asset growth will turn out as having come from reduced quality - Risk in Alternative Finance (see eg my articles for AltFi News on Lender Risk in Alternative Finance or Risk Debt in P2P) - "IPO envy" - IPOs as a rite of passage for the industry; the role of being a public company in forcing transparency upon the industry (more important in Equity Crowdfunding) - our joint view of the scandalous state of lack of data around Equity Crowdfunding - most don't even publish how many funds they have raised or what percentage of listings have been successful - where standards of transparency might come from (or not...) - is innovation continuous or episodic? - the importance of ISAs in shaping the sectors evolution as an asset class in its own right and the mentality that it will become part of a "normal" investment portfolio in general - David's launching of the Journal of Disruptive Finance an academic quality journal to examine the Alternative Finance from a rigorous perspective. Eg what the real impact on the economy is, how disruption works and much more. It will cover "peer-lending, marketplace lending, crowdfunding, equity crowdfinancing, SME finance, fintech, cryptocurrencies, online finance generally including next generation asset management models online as well as strategy and business models prevalent within these fast emerging industries" - AltFi's new venture - AltFi Investor - a site dedicated to filling the information gap for investors (platforms having concentrated more on the asset origination side)   All this and much more :-) Enjoy!

Insurance Fintech is something of a dog that doesn't bark much.  As Steven Mendel, CEO and founder of Bought By Many a rare example of a successful and innovative insurance fintech, says, the key players in this sector across the whole of europe can be...

I am delighted to be joined on the show today by Mike Laven CEO of Currency Cloud (who have always been my “Fintech insiders” Fintech of choice). Currency Cloud has done $10bn of business which is a big number on anyone's scale. It’s a rare guest in...

I am delighted to be joined on the show today by Goncalo de Vasconcelos CEO and founder of Syndicate Room who are one of my must-know-about equity crowdfunding platforms as they have originated an "investor-led" model of equity crowdfunding which has s...

I am delighted to be joined on the show today by Nigel Verdon founder and Chairman of Currency Cloud (who have always been my “Fintech insiders” Fintech of choice and have now done over $10bn of business) and also partner at OGC Capital – Anglo-Dutch VCs. On LinkedIn Nigel modestly describes himself as: “Broad range of experience from tech guy to trader guy with deep industry experience in capital markets, foreign exchange, international payments and technology.” It's both novel and refreshing to see modesty in the modern world and (as generally) it's massively misplaced.  Nigel has been - on anyone's measure - a colossus in both the #oldFS and #new FS worlds and has now moved into the VC world. He wrote an excellent piece last year entitled So What Is Fintech? which I recall for having been clearly and deeply thought-through - as rare in s-called "social" (selfcast?) media as modesty.  Only having discussed his career journey on this episode with him do I realise what it has taken to achieve that degree of insight and understanding. In this wide-ranging and deeply insightful conversation about the long roots of Fintech we cover a broad range of topics including: - the relevance of Nigel's background in engineering - why spray-painting cars seems to me to be the missing link in FS crises in the past two decades - the influence of Swiss Bank Corp in the '90s on the development of "digital" (ie interweb/private lines) on banking right from the earliest days of the first use of chat in FX in the early 90s.  This chat facility as the origination of the whole "FX price rigging" scandals recently. - the rules of memos and emails (oft-forgotten) - FS as one of the leading examples of using new technology (despite its reputation currently) eg using Steve Jobs Next computers - what was lost by moving from floor-based trading into tech-based trading [a useful counterpoint to current overly simplistic adoration of tech for its own sake]; the role of this as leading to FS crashes, scandals, manipulation - the important of the experience of forming "digital markets" at Dresdner Kleinworts in the noughties; especially for how to handle plain-vanilla, increasingly unprofitable, trading [very pertinent to Fintech today] - the first Fintech and the people in it in that day (and how incredibly influential this diaspora is now) - how visiting a French tobacconist was key to Nigel founding FX Capital Group which later changed name to Currency Cloud (and the importance behind the name change of the strategic repositioning) - the importance of "solving hassle" versus "doing it cheaper" in the growth and sustainable strategic vision for Currency Cloud [Fidor Bank went live with Currency Cloud in two weeks (!)] - what does "transparency" mean - and the very variable standards that folks still label as "transparent" - why P2P was always a weak model for FX (and Nigel's very early conversations with Transferwise and Kantox in re) - the decision-making process around chosing the CEO for Currency Cloud - a tech guy who understand fin? or a fin guy who understand tech? or a total tech guy? - the weaknesses of P2P re lending and borrowing and whether a "P2P 'interbank' market might ever arise" or whether "P2P lending/borrowing firms" will end up "just" being deal originators for more "API-ed" banks - the comparison between an API-ed vision of banking and the iPhone - worth the price of admission alone - "a lot of Fintech misses the importance of safety/trust" - Nigel's view that banks don't get disrupted; the longevity of banks through all sorts of crises - Nigel's family example of ANZ bank; "Fintechs need to work with the banks"; the importance of creating "coincidence of purpose" between Fintechs and banks - what drove Nigel's decision to move into VC; OGC as not from an "investor background" but an operator VC; the various types and flavours of VC firms; where added value can come from

On this show we have an ideal guest to guide us through "FX in the Fintech Age". Philippe Gelis is the CEO of Kantox a B2B FX Fintech who recently passed the $1bn of business done mark. At that level you really have left any notion of “startup” far ...

Having done a few Alternative Finance shows recently it’s important to recall that there is another hardcore Fintech sector that is already changing the world (as opposed to threatening to in the future). This is payments. One quarter of the Fintech50 are payments companies and when I looked a little while ago there were well over a thousand on Angelslist. So we definitely need a super sherpa to guide us through this landscape. Consult Hyperion are an independent technical and strategic consultancy that specialises in secure electronic transactions. For two decades they have been working with technologies ranging from smart cards and mobile phones to contactless tickets and electronic ID in mass-market systems that include global payments, national and regional ticketing, international settlement, national identity and corporate  services. So I think they might know a bit :-) Dave – besides being a member of the Amalgamated Union of Wheeltappers, Shunters and Podcasters was a founding director of the Consult Hyperion, is now their global ambassador and has decades of experience under his belt. A very rich show with plenty about what is really going on with payments - especially from the strategic big picture perspective which certainly helps put the semi-infinite number of payments startups into some kind of context. Topics discussed include: - what a global ambassador actually does as a day job :-) - the consistency of the three complaints about the payments sector (too slow, too expensive and too opaque) in recent decades  and which of these are driving innovation right now - the technological changes enabling and driving Fintech payments progress right now - the importance of regulation in driving change in payments with regulators consistently driving payments away from banks over recent years; the recent EU moves around debit and credit interchange fees (and what they actually are :-D) - the extra valued-added from new payments players - deep-dive discussions on what Dave sees as the five key trends in Fintech payments right now: ....In-app payments ...."Re-localisation" (and the two meanings of this) ....Privacy ....Blockchain ....Internet of things - the trends Consult Hyperion are seeing in the business coming their way at the moment as a weather vane of what is hot in payments - and much much more :-) A very rich and enlightening conversation about the tectonic change in this industry sector!

Giles and friends have really set one of the all-time Financial Services innovation high water marks with their invention of P2P – online lending and borrowing without a bank. They literally created an industry and changed the mould globally as we have seen with multi-billion$ IPOs in the US in December 2014. As they were the first they have always had a core of “getting it right” – aka not losing customers money – aka getting “high quality consumer credit right”. This they have certainly done as they still produced positive returns through the mega-consumer crisis of 2008. Not just that but they really get 21stC customer-focused business and have won the “best loan provider award 5yrs in a row”. 51,000 lenders to date have put money through the platform for a total of £750m lending business. On this show we dive into a number of key issues: - the role of the Alfa Romeo Alfasud Ti in our lives :-) - the idea for P2P, where it came from, the insights into consumer behaviour in FS in the 21stC and what the motivations were behind the foundation of Zopa in 2005 - a deep dive into the experience of the loan book portfolio in 2008 - why unsecured consumer lending has been such a good asset class - outperforming what one might have imagined over the past ten years; the psychology and practicalities behind consumer decisions to repay their debts - the importance of not assuming there is such thing as a "safe asset class" - as all we have  is the performance of platforms where there is a strong "survivor bias" - only the ones that manage the credit well survive and thrive - credit scores, credit agencies, credit data suppliers and the evolution over time of P2P models from being "near" supplier scores to further away from them using the platform's own data.  The importance of tracking not just the loans you do do but the loans you don't in building a more accurate credit model over time - the importance of understanding "hard search" versus "soft search" (re applying for credit in the UK), the banking industry as a whole still tending to rely on hard search (compared to soft search in P2P as an industry) - the challenge over prospective returns (that one sees being compared across platforms) all including a model/estimate of credit risk (& therefore there is a marketing benefit towards not being over-conservative on modelling to avoid unnecessarily depressing "prospective" potential returns). Zopa's attitude towards this - the story of a platform that just copied wholesale Zopa's information and approach :-O (without understanding sufficiently what happens "beneath the bonnet" - an Alfasud without the flat-four boxer is just a car that falls apart :-D) - the relevance of the experience of banking's Basel internal models approval process and the possible comparison of credit models/expected defaults across P2P platforms - the importance of transparency across the whole of P2P, especially around the nature of the asset one is acquiring; some platforms don't even have that level of transparency - re P2P Risk in general Giles refers to the recent articles I have written for AltFi News on Risk in Alternative Finance: Deja-Vu All Over Again; Control Is An Illusion - 3 Vital Lessons from 30yrs of City Risk Management; Those Who Don't Know History Are Condemned To Repeat It - we wrap up with Zopa's positioning, strategy and tactics for the next decade   Overall I came away with an appreciation for Giles kind-of informal role as "father of P2P" (my words not his) - his fluency, insight and command of the whole scene is rare in any industrial sector. A must listen for anyone interested in P2P! :-)

In essence the (prosaically named) “UK SME Finance Referral Scheme” basically means that soon banks wont be able to tell SMEs to bugger-off any more (which was the reality behind the prosaic (and often very slow) “loan application declined” formula).  ...

P2P (online lending and borrowing) is plagued by media (old and new) descriptions in terms of what are often just metaphors - "P2P disintermediates banks", "P2P directly connects borrowers and lenders" et al. Furthermore with a number of different models emerging (which isn't always obvious to the "paying public") it gets less relevant to say "a P2P does X" as some of them might "do X" and some of them might not. Two key models are the more ~marketplace one (eg Lendinvest in LFP013) and the Ratesetter model which is a more savings-like ~fund (the FCA has kittens with those words but that's their problem not mine :-D), stable return backed by a provision fund. In this special (ie super-long) episode we move "beyond the metaphors" to discussing what actually happens in P2P.  In FS that means getting into payment flows, bank accounts, legal contracts and the like.  The kind of thing that has been drawn on whiteboards in the City ever since they existed (funnily enough I don't recall blackboards being there before whiteboards?!). As an example of where metaphors are misleading, despite reading masses about Lending Club pre IPO, it was only this year that I stumbled on the fact that Lending Club doesn’t do the lending! [The actual loan is made by Webbank headquartered in Salt Lake City (and then assigned)]. Rhydian Lewis is a real star guest to discuss these issues with, as, as he explains, his first scribblings on P2P predate P2P itself by several years so he was a genuine fore-runner.  He worked at Betfair (a P2P betting exchange) and as a Corporate Financier at Lazard so has real experience of tech P2Ps and hardcore FS apart from also having co-founded Ratesetter, invented the idea of a provision fund in P2P and having taken Ratesetter from a startup to the largest P2P in terms of monthly originations at present. We discuss a whole variety of topics: - Rhydian's background, what lead him to thinking of doing P2P, and how Ratesetter started - they are driven by doing something they genuinely see as good [for society as a whole] - the essence of P2P as being that the ultimate risk lies with the lender [unlike with a bank] - banks' interest in keeping money in bank accounts (which isn't threatened even slightly by P2P which "just" (at this level) is involved in a chain of transfers between bank accounts) - Ratesetter's system is anonymised (ie you do not know who you lend money to), potentially [in general] this might be de-anonymised if the platform fails [although in Ratesetter's case it would not be] - FCA requirement of a run-off plan, backup-servicers as a "passing the buck" in Rhydian's view who prefers the more "winding down/run-off plan"; a number of models out there in the market about what is planned for these circumstances - P2P's inherent strengths as it does not give guarantees or safety - it's all done on a "best efforts" basis - thus is a more manageable arrangement [cf banking where regulators are trying to make it "safe" - which ends up being incredibly costly].  "Ratesetter focuses on value not safety" - putting the above into context so far their "best-efforts" basis has shown brilliant returns - no-one has lost a penny - contracts - comparing buying an equity, depositing money in a bank or lending/borrowing through P2P - their motivation being to focus on the rate setting process (hence the name...) - interest rates are normally being set by markets to which consumers have no direct access; the motivation in Ratesetter was to create a market between people where people set the rates - this fundamentally changes the relationship with the customers.  Banks on the one hand just tell their customers what the new rates are.  On the other hand P2P are a marketplace where the players set the rates - it was this motivation which drove the provision fund - not a desire to be different, nor to create a ~savings product,

Equity Crowdfunding is one of the key areas in which the UK has a great lead and so we have a special, longer than usual, episode. I am delighted to be joined on the show today by Karen Kerrigan Legal and Finance Director at Seedrs (who were the first equity crowdfunders to be FCA authorised in the UK).  Karen is also a lawyer and a Director at the UK Crowdfunding Association and so an ideal person to take us on a deep dive into the scene. I first met Karen at a breakout group in the London Financial News Fintech day last autumn. I was impressed by her passion for ensuring that all categories of investor – private thru to VC always get equal treatment.  If you are unsure of the precise meaning in this context of things like pre-emption rights, tag-along and consent rights check out Karen’s great blog article in re: protecting small investors in equity crowdfunding rounds. We have a wide-ranging conversation on a whole host of topics: the perennial vocab problem (the UK crowdfunding association includes all types of alternate finance; the FCA used the word in that context recently; but many others (notably p2p folk) associate crowdfunding with the equity not debt platforms); the competition at the Trade Association level for territory; the origins of equity crowdfunding ~2009; the many possible meanings and models when crowdfunders say for example that they are “expanding to Europe”; regulation by the FCA – how long it used to take and plans to facilitate this process going forwards; principle-based regulation and how the meaning of that has changed over time; the review in 2016; market pressures leading over time to equity crowdfunders and stock exchange convergence in approach and fee levels; case studies of recent Seedrs fund raises for Chapel Down and Oppo – how it works, the motivation for doing and the wide range of reasons and benefits all the way through to marketing and brand awareness/customer loyalty; the need to come to the platform with your tribe/network in place already in order to generate the social proof necessary to create momentum around the raise; qualifying as an investor – either one needs to be a high-net worth individual or in the UK if one can prove that one understands the risk of investing (in the US right now only the first category can invest – “Jobs Act Title Three” awaited to broaden that out); the big dangers of different types of equity share (eg “B” shares) in terms of investor protection and the role of Seedrs (and one or two other equity crowdfunders) nominee structure in terms of providing investor protection going forwards; EIS/SEIS recap; the risks/challenges for equity crowdfunding over the next few years; the FCA’s current focus on the up-front aspect of crowdfunding right now and less on the downstream journey; the equity crowdfunding triangle; Seedrs US acquisition of Junction Investments and how that fits into the mix; Seedrs dual pricing structure – pay on way in and way out/pay on success; Platforms vetting of company applications, some run mini-incubators to prepare their companies for pitching; approaches to valuations. And as if all that isn’t enough for a 45 minute chat we maange to squeeze in modern pentathlon; tetrathlon (I didn’t even know that existed); lacrosse (and whether mixed lacrosse plays by the male or female rules); ice hockey; kite surfing and kite buggying

Innovation may be great but it leads to challenges – for #newFS how to get it out there (I think the “how to do it” is going well right now”).  For #oldFS the challenge is “how to absorb it”. This bridging is being done by both new and established firms. In LFP002 Warren Bond of matchi.biz (a smallco/fintech) discussed their dating/database approach to bridge.  In this episode Samad Masood who previously ran Accenture’s Fintech Innovation Lab and is now Open Innovation Lead at Accenture shares his experience of how a big, established player sees this challenge. Samad has a deep background in this area having been involved in reporting on the startups just as the dot-com bubble was hitting its peak.  One of the key takeaways from that experience for him was that “the best technologies aren’t always the best businesses” – a lesson which needs to be borne in mind in the current boom. A further lesson was that innovation has a great impact than people expect but it also takes longer than they expect. The fintech stone has been lobbed into a very large pool and the ripples have spread far. Accenture is a multinational management consulting, technology services and outsourcing company. Measured by revenues, the world’s largest consulting firm and has over 300,000 staff. Notwithstanding this “large oil tanker” scale it has proved remarkably nimble and agile in orientating itself to the new world (and perhaps see their Ad above). Its reports on Fintech investment patterns are the most widely quoted of all. It was perhaps the first to set up a fintech accelerator program (in New York in 2012) which is now in NY, London, HK and now Dublin. In terms of bridge building Samad describes his threefold topology of Fintechs: i) Disruptive Fintech – businesses that want to sell FS in a new way, generally B2C, (eg Zopa, Ratesetter, Transferwise, Crowdcube, Nutmeg); ii)  FS Technology companies that are selling FS technology to any business – “backroom technologies, generally B2B” (eg Currency Cloud); iii) Enterprise Technology companies – sell technology to any business but as FS so large they tend to have plenty of FS clients – big data, accounting, etc (obvious examples given state of maturity of fintech are still large cos – Oracle, Salesforce) In terms of their relationship with the incumbent player – how they will relate – he talks through another threefold model about which part of a dinosaur/Brontosaurus (ha!) the new fintech is approaching. i) type one above are nibbling away at the long tail of the dinosaur (and at first its small, far away from the core) … over time they will nibble more of the tail and get noticed as a competitor more; ii) type ii & iii are “tickling the tummy” – helping the FS incumbent become better and want to engage; iii) other ones going more for the dinosaurs head – eating its food – going direct for its competitors (eg Simple, Nutmeg).  So eg BBVA bought Simple which is a real reaction to a competitive threat/opportunity. Based on these models Samad discusses his experience of how this has all been changing over time, what each side of #newFS and #oldFS has to offer the other and where the whole scene is heading towards.  Samad also explains what Open Innovation is and how it operates at Accenture and what his function can offer to both startups and established players.

The New Year is a time of reflection, a time for looking forwards and a time to take stock. So in this light this will be a special, somewhat off-piste episode with just me at the microphone. This episode has three parts: In Part 1 I talk about some of the behind the scenes stories that go into making the LFP and share some of my thoughts about the challenges of the creative journey – a journey which many fintechs will have been through and are going through. In Part 2 I discuss the five themes that I expect to see in UK Fintech in 2015.  These all go under the overarching banner of “2015 – The Year When Fintech Grows Up”. Less Spin A Shake-Out Fintech Maturing and Breaking-Up into Subsectors Group-Think in the Subsectors #NewFS Getting More Solid If Xmas is a time for traditional rituals like family, over-eating, and hitting Amazon Prime bigtime it’s also a time for thinking of those less fortunate than ourselves. If you work in Canary Wharf you will probably never see a homeless person there (I never have – are they kept out?). Meg Hillier the MP for Hackney South and Shoreditch points out that in Hackney a staggering 47% of children live in poverty :-O In Part 3 I discuss the wider societal impact of Fintech and its media narratives. Will Fintech, driven by the “billion dollar IPO narrative” end up being just another “get rich quick scheme” for a tiny few and become self-centred and greedy like the existing widely-disliked banking system? Is Fintech just about creating some new mega-corporates that will live in tall shiny buildings? Can Fintech be more than this?  Can it have a social conscience, can Fintech contribute to society and make the world a better place?   Let me know what you think!  In my pre-Xmas mode of thinking of those less fortunate than ourselves I tweeted a few socially pertinent tweets under the hashtag #OccupyFintech.  For those of you interested in this topic please feel free to use and amplify.  You don’t even have to sleep outside in the cold in a tent In the next episode  I’ll be back on the centre of the piste and we have some great guests coming up for the coming year. May 2015 be a great one for you and yours and all of society   In part 3 I quote quite a few articles and stats in “joining the dots”. Here are some of the key refs: Oxfam Chart in the Guardian (via @FintechHK): Henry Blodget in Business Insider “Amazing Charts Show How 90% Of The Country Has Gotten Shafted Over The Past 30 Years” Wikipedia Incarceration in the US Daniel Wessel (via Dan Pink) on twitter Racial Lifetime stats of chances of a MALE baby born in the US in 2001 going to prison (I inadvertently omitted the word male in the podcast in quoting these stats). See also the brilliant (4.6*/5 with 461 (!!) reviews on amazon.com) “The New Jim Crow: Mass Incarceration in the Age of Colorblindness” Ralph Benko in Forbes “1.6 Billion Rounds Of Ammo For Homeland Security? It’s Time For A National Conversation” James de Angelo, World Bitcoin Network on YouTube “The Cardboard Box Reform – A Crucial Flaw in Democracy & A Five Dollar Solution “ Edward Luce in the FT “Too big to resist: Wall Street’s comeback” Kevin Maney in Newsweek “Tech Bubble? No it’s a startup wealth gap” Mike Konczal and Bryce Covert in The Nation Socialize Uber Leo Mirani in Quartz “The secret to the Uber economy is wealth inequality” UK MP Meg Hillier in Tech City News “Need a New Year’s resolution? Build a Bridge”

This is a mega-episode Xmas present special for London Fintech Podcast listeners   The world of Fintech has changed forever with this month’s successful twin IPOs on the NYSE of Lending Club and On Deck – both with valuations in ten figures.  It’s certainly an epochal shift for Alternative Finance Lending & Borrowing (P2P) around the world. UK Fintech does not exist in a vacuum and it’s important to understand how other markets are evolving.  Naturally in a world of globalisation the US market and New York in particular are perhaps the most important “must knows” for anyone on the UK Fintech scene. Above and beyond that the story of the US P2P is a cracker – the more I drilled into it the more that “fact” turned out to be once again better than “fiction” – and in this case more entertaining in terms of the twists and turns on the road. I am delighted to be joined today by a man supremely able to tell that story from many angles.  As a commentator on the scene Peter Renton has been blogging for several years about the US P2P scene – long before it was hot and fashionable.  As an investor he has been an active participant and experienced its evolution first hand. From his initial personal interest has grown a range of businesses – Peter is the founder of Lend Academy, co-founder of Lend Academy Investments, and co-founder of LendIt Conference which albeit mostly active in the US, had a very successful recent conference in the UK (you can see some great videos of the UK P2P presentations here) and one this year in Shanghai.  He has written a short, free e-book on the US P2P market which is freely available for download here.  He – clearly a busy guy – also finds the time to fit in a great podcast on the US P2P scene (search for “Lend Academy” on iTunes/Android App). We have a wide-ranging conversation about the history of US P2P, the present and possible futures. We also discuss similarities and differences with the UK P2P market, what the UK market should be grateful for – and we don’t actually discuss where it’s falling behind – but how many UK multi-billion IPOs were there in December? Threading through this is one of the best stories out there about US P2P.  Superficial surfers might be tempted to think its just “the same old” US tech success story. Partially maybe.  However “Fintech is not Tech” is one of my mottos and the US P2P has trodden one of the more challenging and thorny paths to the floor of the NYSE (where Peter was as a special guest of Lending Club). As we know P2P was invented in the UK by Zopa in 2005. Prosper was the first major US player closely followed by Lending Club.  Interestingly (and rather lost to the mists of time perhaps) their origins were very social in nature – so for example on Prosper you could post a photo of yourself, have online usernames and all that jazz. Lending Club launched as a Facebook App.  Now the majority of US P2P funding is institutional in origin – quite a journey. The crash hit the US P2P scene very hard (in part due to exposures to lower rated borrowers).  There was a class action suit against Prosper.  These difficult times continued when the SEC nearly crippled the industry by insisting that every loan that passes through the platforms be registered as a security :-O [so when you hear that the UK bunch have it easy (far from hindering the government invests tax payers money in some of them…) remember that!]. This lead to a quiescent phase in 08/09 and there were fears for the future. Foundation Capital for example didn’t invest in the first round of Lending Club (they did in the second) due to fears that the industry might not survive. Fast forward and we have IPOs and in Lending Club’s case an ex-Morgan Stanley CEO and an ex-Treasury secretary onboard.  They really have become the newest entrant to the establishment. Peter and I discuss whether this is the “End of the Beginning” or “The Beginning of the End”. Either way it’s certainly an epochal shift. Anyway I won’t spoil the Xmas fun with some tedious bullet point list of the angles we discuss – it’s a rich Xmas pudding of a diet and plenty of fruit for everyone. Xmas is a time for social conscience and thinking of folks less well off than oneself. Personally I have huge reservations about the sole guiding principle of modern corporatism – “limitless greed” – aka no level of profits is ever enough (I was at one bank doing a gig – it made $15bn profits which it decided “wasn’t enough” so sacked thousands of staff :-().  If you think that is “victimless” look at this staggering Oxfam chart tweet today on the incredible correlation between a society’s wealth inequality and its social/health problems. As I touch on in the episode when I first learned investment some 30yrs ago the market used to recognise both growth stocks and value stocks.  Now everything is supposed to be a growth stock (and partly as a result of that unemployment is mega (albeit NB P2P research has shown that P2P/SME lending/funding creates employment)). Anyway all that is as it is and rather an aside … however I say it to make the point that I am no uncritical repeater of the de facto US tech mantra that (in effect) the focal point of economies should be billion dollar IPOs and yet more wealth asymmetry. Notwithstanding those personal views it seems axiomatic to me that if “Fintech” is ever to be a real threat to the #OldFS establishment then it needs size and it needs scale.  You can’t take on the battleships of #OldFS with a sleek canoe and some fit paddlers The US P2Ps have not had it easy in any way – they had a tough underwriting start; they had law suits; the “system” threw huge burdens in their way. Somehow they came through all of this and overtook the country that invented it all. I wonder why?  What do you think are the reasons? What do you think the UK P2P scene can and should take away from this fascinating story?   A Merry Xmas and a Happy New Year to all readers and especially listeners to the London Fintech Podcast I will see you in 2015 when we will all find out what will happen to the hot and frothy cappuccino that has been UK Fintech 2014 style when the bubbles fade. Will we be left with a small weak latte? Will it be a large strong one? We shall see but I aim to keep serving up macchiatos on the LFP show Go well.

In the hot Fintech sector there are few places hotter than being a Fintech in a 3 month accelerator program. But what are they? What’s the inside track? What works well, what is surprising and how is it all changing? Plenty of dynamics to discuss in today’s episode with Nektarios Liolios, the co-founder of Startupbootcamp Fintech. Prior to that he had over a decade’s FS experience and in particular spent several years In charge of Swift’s Innotribe Startup Challenge. Many of you may not be familiar with that but you will certainly be familiar with some of the alumni of that program – real Fintech royalty such as Transferwise, Currency Cloud (more below the radar but the cognoscenti’s Fintech perhaps), and Azimo. So who better than Nektarios to “lift the bonnet” today? Startupbootcamp is a global network of industry focused startup accelerators. It was founded in Copenhagen in 2010 with the core idea of supporting the best entrepreneurs as they grow their startups. So it is a rara avis in terms of not coming out of the US tech scene. It is now the largest in Europe and one of the top 3 worldwide – another rare European triumph. They have helped 200 startups raise a total of over Eu64m creating well over 800 jobs and are in 8 locations worldwide.   A Quick Overview of Accelerators, Incubators and Co-working Spaces Where did the accelerator concept come from? Naturally the west coast US tech scene and the likes of super-well-known Y Combinator and Tech Stars. Interestingly however in the fascinating Seedrankings research into US accelerator performance (pdf, wmv), whilst the best get great approval ratings, the participant in a median program would not recommend it to a friend. So clearly there is an art to doing this well. But backing up to the bigger picture – maybe you are unclear on what the difference is between an accelerator, an incubator and a co-working space. To a certain extent there is a spectrum … but broadly speaking an accelerator runs a specific program with a start date, an end date and a curriculum in between. You have to apply and enter a selection process to be accepted and will probably be given some small amount of funding in return for a small equity stake. Post-program you are out of the nest and into the real world (even if you then join their alumni group). As well as Startupbootcamp the premier London programs are Accenture’s Fintech Innovation Lab and Barclays Accelerator (in collaboration with Techstars). By contrast an incubator is like a warm nest that you don’t have to leave and will not run a specific program although to be called an incubator it really needs to have some value-added (events, mentors…).  Notable examples are Level 39 (where R5FX of LFP005 fame reside) and Innovation Warehouse (where Kwanji of LFP009 reside), A co-working space is just that – a co-working space – think a bit more focused/trendy version of Regus (notable ones in Fintech being Central Working and We Work (where Elliptic LFP003 now live)).  Again as there is something of a spectrum here some may do “value-adds” around the basic “space and desk” proposition. I guess on the even simpler level we have good old-fashioned “office space” – mind you nothing is without a twist of lemon in the modern world. So I would guess that Level 42 – part of the Level 39 proposition but much more “just office space” (Ignitr, LFP012, reside there in their own dedicated office space) might not want to be labelled “office space” perhaps. Incubators and accelerators in particular can have a different flavour depending on their funding. [In passing in the episode I refer to TechCrunch’s article “Corporate Accelerators are an Oxymoron” (in this context read Bank not Corporate)]. Naturally a single bank funds Barclay’s Accelerator… Single corporates fund (obviously again) Accenture’s accelerator program and (slightly less obviously perhaps) the Level39 incubator (which somewhat eccentrically/hyperbole sometimes calls itself an accelerator) funded by the Canary Wharf group Startupbootcamp’s accelerator is funded by multiple banks/FS-corporates as we hear in the show.   Oh Yes, The Show All of that is pre-amble :-O … however getting terms straight (as we heard of LFP013 re “P2P”) is about half the battle right now after the explosion of press interest and consequent hype, spin and PR in 2014. Yes – the show – it’s great Listen to it! The episode’s key topics are: Swift’s vision post-2008 of alerting members to the changes in FS and the founding of Innotribe in 2009, whose mission was to enable collaborative innovation in the FS industry (and it’s easy to see how those deep roots have grown to where we are today) Nektarios’ time managing the Innotribe Startup challenge and how that laid the ground for the accelerators of today the main role of accelerators/incubators/co-working spaces being to provide a vehicle and a tool for startups; all of the ones out there right now are adding value accelerators as condensing/compressing timescales, what the value-adds are and what the key value-adds are within those Startupbootcamp’s pro-active (as well as passive/receptive) role in “getting out there” to attract and find startups to the program accelerators as being like a “mini-MBA at a practical level” (crossed with the Royal Marines :-D) the importance of “solid” in Fintech and more generally why Fintech is unlike tech; how Fintech bifurcates into what one might label FIN-tech and fin-TECH the funding of accelerators and what the practical benefits funders/sponsors get out of doing so; collaboration versus competition the challenges to banks right now as less that there are masses of Fintechs who are capable of damaging/destroying them and more that they don’t know how to use new technology and embrace it to their own benefit; and don’t know how to partner with small startups who do know [cf LFP012 “Gluing Fin & Tech Together”] Startupbootcamp Fintech’s global ambitions -  Singapore’s very recent launch and the next steps/ambitions/plans what would happen if you ran the Accelerator programs themselves through a meta-accelerator program to accelerate their development – what does the future look like in terms of greater speciation/focused-programs? what is needed for post-accelerator programs? Plenty in there and we end up with one of the most interesting angles … in the context of Nektarios’ deep background in this area what have been his two main surprises in the 2014 program? You’ll have to listen but they are definitely “inside track” points that you won’t come across readily elsewhere

For me Alternative Finance is the most exciting sector in Fintech by far in terms of near term impact as competition for the “Old FS” and as choice for both borrowers and lenders. In this episode I am delighted to be joined by Christian Faes CEO of Lendinvest. In the world of Fintech froth that has been 2014 Lendinvest and Christian are the real deal. In this episode we “kick the tyres” of P2P and have an organic conversation exploring some key angles in the sector right now.  There is plenty of “linear” content out there (eg this concise YouTube explaining Lendinvest), and conference panel discussions (eg this LendIt one with Christian on the panel) – and they are all great.  However as usual on the podcast I aim more for the kind of conversation that one might have with the insiders in the bar after the formal conference. This is also a special episode in being rather longer than normal – there is so much to be discussed as the sector is very active right now and the future is busy taking place with lots of seismic shifts happening beneath our feet. We discuss a whole variety of topics as we kick the four tyres around the car – Lendinvest; penetrating the subsector’s opaque/confusing terminology; understanding the risks; and the future of the industry. In editing the podcast (which means I listen to it many times) I progressed my own thoughts on how I see the risk in P2P and how to describe it simply.  So for the avoidance of doubt I put the risk thoughts in a “Postscript” section down below to make it obvious that these are my afterthoughts and language (Christian’s comments are in the podcast).  However I think that the terminology will be helpful in listening to the podcast so it’s not an “unrelated” mini essay   Lendinvest In the AltFi awards Lendinvest was ranked as the best UK fintech-real estate platform (which has done over £166m of deals to date). Recently I heard a leading Fintech analyst describe them as the best dark horse bet for London’s first major fintech IPO. They have grown organically from being a “non-digital” real estate lending business to the world’s largest real estate platform. And all of this without raising any VC money. Since 2008 they have returned (in one incarnation or another – more on that in the show) over 6% to investors via secured short-term bridging loans (1mt-1yr) with LTV’s (loan-to-value ratios) of around 60% and no capital losses. More recently they have added a 1-3yr buy-to-let mortgage product. Lendinvest also have a (relatively?) unique twist to their business model in that their (financially separate) fund management company Montello pre-funds/underwrites the deals they list on their platform.  In other words they put their money where their mouth is – if no investor buys that asset Lendinvest’s sister company is left holding it “themselves”. For the borrower this means there is no uncertainty as to whether a loan will be funded (whereas on a typical platform they have to wait to see if it gets funded). For the lender its a whole extra dimension of confidence above and beyond “we rate this X” – rather it’s “our sister company has already bought this asset – that’s how much confidence we have in it”. A recent bank line application led to the bank’s Head of Credit saying that Lendinvest’s credit quality procedures (that the bank audited) were better than the bank’s Towards the end Christian explains more about, not just Lendinvest’s history, but also their direction going forwards – in particular their investment in tech to improve deal origination, credit and the time it takes to offer a buy-to-let mortgage (currently around two weeks, hoping to move it to a matter of days (which is of course tremendous compared to the banks processing time))   Opaque Terminology Shakespeare may have been right about the fragrance of roses for more abstract matters naming is everything – the words we use condition our thinking – a point marketers spend years studying in degree courses. If I said to you “do you want to lend money to dozens of folks you have never met so they can splash out on a new car, have a fancy wedding, get a house extension etc, and you will have no security?”, you might think one thing. If I said to you “do you want a team, who are incredibly motivated to make a success out of your investment, and who have got a brilliant credit track record over a decade, including one of the worst recessions ever, to invest your money in consumer finance and get you a return ten times what you get from a bank?”, you might think another. So words are important. What else do we speak and write with? In LFP010 “The 3,000 feet overview of Alternative Finance”, Rupert Taylor mentioned how he dislikes jargon which serves only to (1) form a barrier between insiders and outsiders and (2) a block to understanding. He also mentioned that there is no commonly agreed definitions in the sector (I am sure I saw the FSA include P2P within crowdfunding recently (?!)). Language also (3) leads to groupthink (which is a factor in many FS risk disasters in the past decades/centuries). Peer-to-peer is originally a tech phrase which describe a de-centralised network (in contrast with client-server architecture all “peers” are both “clients” and “servers”). Napster was really peer-to-peer in this sense. If you look up “P2P” on Wikipedia right now it doesn’t have any reference to Alternative Finance! [Note to P2PFA edit that wiki page?! :-)] As if to make matters worse, following on from using phrases like peer-to-peer, the sector is now taking up the (very tech, very VC) term of “marketplace lending”.  This is in large part a “valuation play” – “marketplaces” are more highly rated and there are billion dollar IPOs coming in the US .. so the #OldFS hype machine is busy. Now once again I don’t feel that this is a widely comprehensible term, nor do I feel it’s accurate – eBay is a marketplace – which to me means that plenty of folks can come and sell their stuff and plenty of folks can come and buy.  We discuss this term – Christian is a fan and I am not.  You can form your own opinion Another term we don’t discuss (but it came to me many times when I was when editing the audio) is “exchange” [and coincidentally today I heard Ron Suber President of Prosper describe themselves as “an online exchange for consumer credit” which I thought clear, simple and with the right implications (after all compare and contrast two exchanges – the London Stock Exchange and AIM – it’s clear which is a more reliable market)]. Most importantly I don’t think any single term can cover the disparate models in P2P right now (see below in the Risk comments).  For investors my advice is both to dig below any label and not to read too much into any label. “Alternative Finance/Online-lending&borrowing” is something that (a) never existed before (hence no vocabulary to fit it) and (b) is evolving over time (hence a label that worked last year might not next).   THE FUTURE – Where the P2P Industry is Heading The US model is much more institutional and “marketplacey” – hedge funds for example being well able to make their own credit decisions (assuming they can “see through” to the asset).  The UK has to date been much more of a “savings substitute” design (lower yielding, minimal losses on the top platforms). In the US the market has been heavily regulated (enabling a few platforms to grow very large and their owners very wealthy (sound familiar?)). Lending Club alone is forecast to do perhaps $10bn of business next year – more than the entire UK P2P industry put together. In the UK regulation has been light touch, it’s easy to enter (maybe even “from your bedroom”). Both the government and the London Mayor’s office have been a major part of the 2014 promotion/hype – talking of vocab … take your pick – of Fintech as a whole.  The government has been a heavy supporter not just in terms of considering including P2P assets as viable ISA investments but also in terms of investing tax payers money in deals via some platforms. In the UK there are a lot of players ~150 in the P2P Finance Association – even Christian who is full-time in this sector and attends many conferences doesn’t know many of them. A “Goldilocks” growth curve is very important – not too hot, not too cold. P2P is still a tiny portion of the market (eg the UK mortgage market is £1.6trn) and therefore unlikely to be constrained in terms of quality asset acquisition in the near term. So “external” constraints aren’t that significant right now. However internal constraints are always significant – Fintech is not Tech – you are dealing with people’s money.  There will be a spectrum across P2P of how automated the process can be  – more automatable in consumer-P2P due to big data? less in real estate as one needs “boots on the ground” eg re valuation.  Where there is manual intervention – especially around credit (far more common in the UK than in the US) – you can’t “just add another server” – “adding another person” takes longer to do well. To wrap up the show Christian outlines the rosy scenario, the downside scenario and his central scenario – you’ll have to listen to find out the details but his conclusion is “there is a rough ride ahead but the long-term viability of the concept is very real”. Everyone has an important job in deciding how the market evolves. Platforms; regulators/industry associations; the government and last but not least the investors – caveat emptor – plenty of real opportunities out there for great risk;returns – but be wise!   Personal Afterthoughts – Rewording the P2P Risk Debate These comments are all my own – even if all being inspired by listening to our conversation.  Whilst we touch on a number of these topics in the episode these are my afterthoughts. The industry is very focused (correctly) on credit analysis. However personally – as an outsider (mind you if I am an outsider I wonder what the average member of the public is) – I feel it is less easy to ascertain all the risks the investor takes. In a sense this is a question of evolution. Historically the main platforms have done an excellent job of risk management – I don’t wish to question that for one minute. However going forward – especially given the possible ISA flood – can we be certain that all platforms will do as good a job?  My view of FS as a whole is that on the one hand much of #OldFS needs to wake up to an epochal shift.  On the other much/most/all of #NewFS needs to get ever more professional/solid/reliable over time. What happens, post ISA-flood when a hundred or more platforms are listed on a consumer “price comparison website”?  Hard to see how one avoids a whole tsunami of unsophisticated investors being attracted to the biggest headline rates rather than assessing quality. On a price comparison site one could see headline rates and volumes perhaps. But what about the platform risk/quality?  Clearly not all platforms are as strong/good/reliable – you name it – as each other. How would one even assess a simple red/amber/green measure? In LFP006 I discussed this problem over the lack of quality assessment on price comparison sites in the insurance marketplace. Price comparisons websites are just that – they compare the prices of your insurance. They do not compare the quality of the insurance (you only find that out when you claim). That the public is rate-driven we know – witness in 2008 how many people had money with Landsbanki in the UK (as it had had the “best” rates in the market). Few folks are able to assess the risk of banks or platforms.  Even banking analysts don’t have a great record of predicting demises .. just to name a few – Barings, Bankers Trust, Lehmans, Landsbanki were all (as far as I recall) unheralded by the analysts.   RISK I/II – Asset Risk (Principal) vs Platform Risk (Agent) What the use of the term

Like a huge boulder dropped into the middle of a pond the ripples from Fintech spread far and wide and have plenty of implications, opportunities and threats for surrounding professions. Consultancy is one of these – many have become “too like” the “Old FS” sector they serve. Re-inventing this is a major opportunity. I am delighted to be joined today by Farid Tejani founder of Ignitr to discuss this and how Ignitr are going about “Innovation Software Engineering” – he has a whole career’s worth of relevant experience.  Ignitr serves the whole FS waterfront – from mentoring startups at accelerators to working with Tier 1 banks – this is certainly a unique perspective in line with the LFP’s mission of “bridging the worlds of suits and t-shirts”. Before we get into Ignitr we discuss the fascinating question – one which has resonated down the ages – of gluing together “Fin” and “Tech”.  One hears the phrase Fintech so often it’s easy to forget that its comprised of two separate things even if the overly excited pronounce that they are converging. Just for clarity Fin – is a social (or perhaps at worst antisocial) activity between human beings and the Tech – is the method of recording and transacting. These are old concepts. Some of the first accounting entries (the Fin) were chiselled thousands of years ago in stone (the Tech). Bankrupt (definitely a Fin concept in recent decades) comes from the custom of breaking the bench (the Tech) of an insolvent medieval italian moneylender. Reuters got the jump on stock exchange information by utilising the first telegraph wires. Farid discusses examples from the first ATM (anyone know where that was?) and the first trading systems onwards as background to this interesting and vital dimension.  This leads into the different challenges that arise along the new FS waterfront and how to inspire and transform the “old FS” whilst at the same time getting over to “new FS” the need for stability and solidity (without which the majority of the market will never trust you). At the same time all of the waterfront is dealing with customers whose expectations are changing rapidly and where the traditional “information asymmetry” between the customer and the Big Bank (over rates etc) has disappeared. Interesting times!

GLI FInance’s Platforms The Economist has described the emergence of huge numbers of Fintechs as a Cambrian Explosion. Will this be followed by a Mass Extinction? I am delighted to be joined on the show today to discuss this by a uniquely qualified individual who has a background in solid BigCos, has co-founded a successful Fintech and advises key government departments on UK Fintech including the current Blackett review on Fintech.  This week she has been appointed as Head of Public Affairs and Marketing for GLI Finance.  GLI Finance is an AIM listed company that both invests in AltFi vehicles (see above) as well as investing through their platforms. Louise is also a woman and one who was showcased in Brummell magazine as one of the top 30 most inspirational women entrepreneurs in the City.  So we warm up the show with the angle of women in Fintech – there ain’t many and the social narrative is rather PC these days. I see three threads at play here.  First what I experienced as the “70s narrative” of equality of identity; then the narrative (to which we all subscribe) of equality of opportunity; but more recently and a little perniciously perhaps a third of equality of outcome.  This last can (ironically) get unwittingly sexist – so for example one sees plenty of calls for more women in tech – but I have never seen many calls for more men in social media – whats that about then? Louise talks about five challenges, or vice versa five guiding principles for avoid the Mass Extinction of UK Fintech plc (we will have masses of extinctions at the startup level of course purely as so many startups die off anyway). Around these challenges we touch on a number of issues which London needs to retain in order to not be a “second-best US” Fintech venue but a “first best UK” fintech place.  Not being excessively PC as per the women issue; retaining a sense of humour; the more European (social democratic?) model of at least some “heart-based” capitalism (to add to the more greed-based US version which certainly took over the City in the past twenty years). Louise outlines five key challenges to the potential success of UK Fintech plc. Funding – fierce competition for low levels of development funding in the £2-10m zone; Balance – stopping being too obsessed with technology and not enough on focusing on the impact of a business on its stakeholders.  As a consequence of being overly tech-focused there has been something of a failure to capture the imagination of funders.  There needs to be a balance of a tripod of Technology, Operations and Sales&Marketing (with a glue of management ability to guide and hold it all together); Legislation and regulation – essential to create an environment in which we can be succesful. Equity crowdfunding is a notable example where good legislation/regulation has facilitated the competitive advantage/lead of the UK (technically it’s still illegal in the US I believe).  In this way we also lead the creation of an environment worldwide as other countries look to the UK’s example. “Good regulation” also requires a process of engagement with the industry for consultation (which is happening well right now).  It is also required to level the playing field between the incumbent Goliaths and the new David’s challenging them; Globalisation - this is often seen as a threat whereas we also need to embrace is as an opportunity. I raise the historical/psychological perspective on this namely that the British used to be very outwards in their orientation.  On the positive side of this legacy London is now perhaps the most tolerant, multicultural city in the world. Think Big - think beyond the widget, beyond the platforms, see how our Fintech fits into the global supply chain and changes it forever. Following a centuries long Imperial expansion, the British have been undergoing a contraction in their mentality for the past five decades and are perhaps less culturally global in business ambitions than the Americans whose turn at the global empire game it is.  Added to this the increasing size of FS organisations has narrowed the horizons of the average FS person to a certain “white-collar factory” corporatism in the past twenty years.  Somehow we need to overcome these and find a “European” or “UK” paradigm to thinking global again (without the Pith Helmets), without going down the neo-imperial US conquest route (most every major global tech firms is American which is extraordinary from one perspective (but perhaps not from a historical perspective (East India company qv))).  Louise outlines her thoughts on how to do this (as well as now doing it in her day job for GLI Finance which has platforms in several continents and several types of business line). Finally we recorded this at Crowdshed – which as a crowdfunding platform involves crowds (which can be heard roaming around the prairies in the background at some points). Louise ends with an incredibly impressive tale of one of the deals bringing together investment and philanthropy funding.  I won’t spoil the tale by relating it here but listen to the praiseworthy success rate of a campaign by the Running Charity which helps young people who are homeless or at risk of being homeless get into education and employment. Now doesn’t that kind of thing make you think that along with: a) GLI’s mission of funding SMEs (which are a massive part of the economy); b) Fintech can be A Good Thing; and c) that there is perhaps some chance of London FS regaining the social conscience it lost when it got sucked into greed-based capitalism (after all look at all those livery companies that have been around for a long time “doing good”).

Alternative Finance is, in essence, Finance not provided by banks (and in a Fintech context, finance provided by “Fintechs”).  As such it is one of the sexier sectors in terms of being a direct competitor to banks.  It is an incredibly key, and an incredibly exciting sector. It’s also complex and the devil definitely lies in the detail. So I am delighted to have as a guide on this show Rupert Taylor, CEO of AltFi Data.  AltFi are perhaps the key player in the Alternative Finance sub-sector of Fintech in terms of news, events, awards, and, via AltFi Data, the creation of indices and metrics of how all the platforms are performing. Rupert is also a great person to give a 3,000 feet overview as he dislikes jargon in all industries as well as having a solid dozen years in Investment Banking under his belt. In this context, Finance, or Banking, can be seen as a conduit for liquidity/funds/cash to flow from a place of excess to a place of deficit.  Or simply put X has money they don’t need right now whilst Y has a need for that money right now. Traditionally Banking has been the conduit to enable a flow from a place of surplus to a place of deficit (along with it’s unique function of credit expansion/money creation).  In the short-term we all recall the 2008 crisis and taxpayers’ consequent dislike of Banking. In the longer term however Rupert quotes statistics that show that banking has not become a more efficient conduit over the past century despite all the advances in technology.  Imagine if cars cost what they did a hundred years ago and performed the same… One of the key points in describing Alternative Finance is that there is not yet complete agreement over terminology in the sector – a fact I can attest to having been at a high-powered Alternative Finance break-out group only yesterday.  For purely historical reasons there has been a mixing of tech terms with banking terms.  So a prime example is of peer-to-peer.  Originally most of us heard of this through Napster – I send you a file, Bob sends you one and a centralised Amazon or the like is nowhere to be seen.  However “peer-to-peer” in an Alternative Finance context has happened to come to mean “debt” or “lending” whilst crowdfunding has come to mean equity. Moving on from jargon confusion we discuss the idea that Alternative Finance splits into debt and non-debt platforms. Debt, informally, is when I lend you my money, I want it back and in the mean time you pay me a rental for having it.  Formally it breaks down into SME lending, Consumer lending and Invoices (trading, factoring, etc). Non-debt, informally, is when I give you money and I never expect to get that money back.  In return you give me “something”.  Formally it splits into equity (where you give me a share in your company), reward funding (such as kickstarter et al, where you give me a “goodie bag” as it were) and more complex hybrid instruments. So that’s the start – we go on to discuss risk, how value might change over time, the sources of liquidity in terms of institutional as well as personal funds, the challenges to individuals in particular assessing the risk in either a loan or an equity instrument, and the value that stock exchange rules have had traditionally in terms of protecting investor rights, ensuring minimum standards of disclosure and more.  Rupert talks about the importance of metrics in any sector and how AltFi Data are approaching the challenge. Anyway net net this is a very podcasty podcast plenty of conversation and plenty of content – too much to summarise directly but plenty of interesting food in this weeks buffet!

There are relatively few Fintech Founders/Co-Founders, even less that have done it for over a decade and even less that have formed two consecutive Fintechs. I am delighted to welcome such a rare individual on the show today – WIlliam Lorenz. In 2002 he co-founded Ixaris – a pre-paid VISA & MasterCard card provider which was well-ahead of its time – which he led through many funding rounds and substantial increases in business. He is currently co-founder and COO of Kwanji, a Fintech of around twenty people, which aims to makes international business easier for SMEs – a worthy goal. Their first product is KwanjiFX, a foreign exchange price comparison site which puts SMEs on the same footing as large companies in terms of the exchange rates and payment functionality they can get. In this episode we have a wide-ranging conversation around what William has learned the hard way, by being “at the coal face”. Rather like LFP007 I am slightly reluctant to summarise this material in a blog as information as it’s far more valuable wisdom.  You may get the same calorific intake from swallowing a glass of wine in one gulp as slowly savouring it perhaps – but in a similar way if you call information a cheap wine, then wisdom, a rare commodity in the interweb world, deserves to be savoured on the way down for full effect. We touch on the value of combining tech and business in a degree; what to do when you are in a BigCo that crashes; the need to get your personal circs sorted to enable you to take the 50% or 66% pay-cut to go from BigCo to Fintech; the co-founder pattern of an ideas man and an execution guy; offshore dev; the paradox that it was far more burdensome a decade ago to form a fintech (racks of servers et al) but not necessarily 10x cheaper (labour costs); the need for the founders to make the first few sales themselves; challenges with sales people; fund-raising being easier the second time around; the need to know yourself in order to know when it’s time to move on; and the pros and cons of (i) the Lean Startup model, (ii) of giving PC answers at interviews and (iii) of listening to your customers. Anyway my suggestion is this is a wine to savour – I doubt there will be any Fintechers who don’t find something in this episode that they could be doing better right now, and contemplating the points as they are discussed will have more of an impact that skimming a bullet point list I think my favourite of William’s “fintech mistakes” which I see all too often are “not hiring enough BizDev folks early enough” and “not focusing enough on people”.  I guess one could call the kind of companies exhibiting those traits – TechFins – too tech focused? Enjoy!

I have given this episode a huuuge write-up as it’s such a vital topic. So if you don’t want to read 2,500 words, listen instead Let’s simplify a Fintech’s journey into three schematic stages: Stage 1:  “turning an idea into a product” Stage 2:  “turning a product into a business” Stage 3:  “turning a business into a grown-up business” (IPOs, M&As etc) In recent months I have come to see as London Fintech’s greatest strength in-depth right now as Stage 1. We could call this a Fintech-Startup … building your plane, taxiing to the runway, then accelerating down the runway and trying to get the wheels off the ground (clients). Stage 2 is the bleeding edge in London which many are struggling with. The Fintech-Scaleup, going beyond a handful of early-adopters, Crossing the Chasm to use Geoffrey Moore’s famous title. Stage 3 is a rarefied level where very few are at (generally the ones with eight figure funding). You might perhaps call this moving from being “a Fintech” to a “Mature Business in the FS sector” – they gradually start looking, feeling and acting more like young corporates.  They may IPO, they may remain private, they may sell themselves to an incumbent – but they are recognisably a mature business. Historically a successful journey from inception to IPO/exit takes up to a decade. If you look at UK Stage 3s who aren’t at the exit yet eg Zopa was founded in ’05, Funding Circle in ’10, Crowdcube in ’10, Transferwise in ’11. The bleeding edge phase changes of Stages 2 (“gas to liquid”?) and 3 (“liquid to solid”?) generally require accessing two elements – Capital Markets and Savoir Faire. It is the relative lack of these two factors perhaps that is proving a real “invisible barrier” for many London Fintech Startups and Scaleups right now. In this episode we discuss why this is the case in London. How did it come about? What can we learn from the US? What advantages do we have under our nose? Quite a lot for one episode!   RICHARD GOOLD I am extremely fortunate to be joined in this episode to discuss these issues by a man who has spent his whole career to date working with tech companies, and now Fintech companies, at all of the above three stages. Richard Goold is a partner at international lawyers Wragge Lawrence Graham who are the premier Fintech lawyers in London (they have the largest IPO practice on AIM for example). Richard co-chairs the firm’s global Tech Sector Group which comprises 125 lawyers & travels a lot to San Francisco, New York and Boston. He works with all stages of Fintechs from very early Stage 1 (who make use of the firms Jumpstart platform – a suite of free advice and documents) through to nine-figure deals for Stage 3s. He started his career at the firm working with 3i on over 30 transactions in the days when 3i was the biggest investor in technology in Europe.  Thus he has a deep historical understanding about why we are where we are right now. We have a wide-ranging conversation – but for the purposes of a summary I shall gather into “London’s (many) Advantages” and “London’s Four Challenges” (Capital Markets – Funding Gap, Capital Markets – AIM, Savoir Faire, and Savoir what Not to Faire).   LONDON PROS “Amazing things are happening here” … “Energy and enthusiasm in the tech ecosystem and Fintech ecosystem specifically is amazing. It’s unlike anything I have seen in any part of the UK economy before” “In Fintech in particular, we have better cornerstones than even the US” Regulatory framework – lighter/better red tape in many cases than elsewhere Law So many global banks and retail banks have HQ or innovation centres or technical centres here Breadth and depth of Financial Services – eg Lloyd’s insurance market world-beating Lots of folks have left mainstream firms and want to do their own things and know how to tap into the Square Mile/Canary Wharf Tech ecosystem here, high profile political support Entrepreneurial spirit Immigration Liberal, cosmopolitan Attracts international business, an international audience. Funding: Seed funding is readily accessible – either through incubators/accelerators or (not discussed explicitly) as folks exit Financial Services having built up significant personal funds to start their own startup without external capital. EIS/SEIS are tax advantageous for investors so raising £150k upwards is very much facilitated   LONDON CHALLENGES (1st of 4) CAPITAL MARKETS – THE FUNDING GAP 3i was set up after the 2nd World War to help build the SME economy and grew into Europe’s largest investor in technology. It became a combination of a very large buyout house, growth capital house and VC house. The stockmarket didn’t particularly value the mix. The VC arm was well run (albeit lowest returns of the three businesses). This institutional experience is identical to Michael Nulty’s own empirical experience and investment lessons learned discussed in the prior episode – LFP007 – namely that growth capital and buyouts offer the best and safest returns.  This is a vital fact to which I shall return in the 3rd challenge below. Broadening the dataset out beyond 3i and my last guest Richard quotes an investment banker whose research into European VC returns over the past 15yrs showed a median return of just over 1% [cf growth capital, buyout which can be ~15-20% IRR]. Due to these poor historic VC returns, 3i pulled out and no-one has back-filled.  In contrast to an incredibly diversified VC community in the US, in Europe the list only runs to about ten VCs at which point funders are then into the “super-angels”. US houses are beginning to come over here and invest (excess capital, excess competition for investments in the US and attractive under-VC-ed European market). Furthermore when (and if…) returns pick up should see more money flowing into the sector from pension funds etc. Classically tech funding rounds look like: Seed: £0.5m-1m to build a product [MB: NB: many Fintechs are building their product for far less (“Fintech 10x cheaper than a decade ago”)] A Round: £1-3m in Europe [up to $10m in the US).  This is a key round as you are just starting to get traction. B-C rounds growth or expansion capital – scaling the business. Due to the historic performances outline above, the absolutely critical “A round” (my Stage 2) has become very difficult to get in Europe and it is the funding gap as Richard sees it. “Europe needs a big volume VC that puts money into a large amount of A rounds”. By contrast in the US market there is a lot of activity and froth at this level – so many VCs, so much capital.  Whilst fund-raising is never easy, in the US it is easier and you get VCs trading term sheets etc that you don’t see so much of in Europe. In passing in the UK the much-discussed “froth” is around Stage 1 “startups”/”products” (MB: and in the associated incubators/accelerators space)).   LONDON CHALLENGES (2nd of 4) CAPITAL MARKETS – AIM “One of the problems with the UK tech scene generally but the Fintech scene specifically is that we haven’t had a properly functioning capital market for some time actually”. This looks like a problem for the “Stage 3s” rather than “Stage 2s”; however it is the lack of funds that flow from IPOs that feeds back into the funding gap challenge above and into the savoir faire challenge below. New York has pulled away from London in the tech space at least, due to some really good exits and a really well-functioning capital market in NASDAQ. Listen to the podcast to hear what Richard says about the background to this and how things are changing right now. For those of you who haven’t kept a close ear to the ground a flavour of the issue is that the Financial Times – of all newspapers – yesterday ran an article astonishingly entitled “The Muppet Market in Numbers” with a picture of Kermit the frog (!!).  It pointed out that a strategy of buying the ten biggest stocks on AIM and holding for one year would have lost money in 30 of the last 34mts.   LONDON CHALLENGES (3rd of 4) – MORE SAVOIR FAIRE in FIN, TECH & BUSINESS This is vitally important.  Given the very poor historic European returns from VC it’s not just a question of (as time and time again one reads :rolls-eyes:) “more money being poured in” - if you pour water into a leaky bucket it just disappears. We must plug the holes in the bucket, we must change the dynamics of scale-up companies in order to make investing in them a better proposition.. a) What type of savoir-faire to be aimed at? We don’t drill into this in the episode but touch on it in passing – perhaps three types Fin, Tech, and Business. Fin in terms of those who have a deep domain expertise and knowledge of how the City, Wharf, Regulation etc really work. Right now there is a trickle from mainstream FS into Stage 1 Fintechs but this needs to mature into joining Stage 1s to help them become Stage 2s and Stage 3s (rather than just creating more Stage 1s). Re Tech and Business – these are folks who have built successful businesses, exited and remain within the sector (as happens in the US eg Buddy Media guy, $700m deal, set up own VC fund (as well as running division of Salesforce)). b) What is the savoir faire aimed at?  What I call “creating a 360 degree company” –  the “180 degrees above the waterline” Product-Marketing-Sales-Client development to the 180 degrees “below the waterline” of infrastructural support for all the above-the-waterline items. [And to go one stage further looking beyond one’s 360 degree company as per Michael Nulty’s LFP007 insights into what sinks otherwise good businesses]. Unless you get these building blocks right you can’t build a Seed company (Stage 1) to an A company (Stage 2) or even if you get the A round you can’t build a global beating company (Stage 3). This savoir faire needs to come to Fintechs in terms of advisers, mentoring, non-execs, in any form – but for sure they need it.  There are some first-rate, very experienced, FS folk, Tech folk, and Business folk out there in the sector but (my feeling) is that across the whole sector they are very much in the minority.   LONDON CHALLENGES (4th of 4) – SAVOIR WHAT NOT TO FAIRE (groan!) If savoir faire is what we need to add to the recipe then this section is things we need to take out of the recipe. The recipe for “making Instagram” will differ from “making a fintech” (and there is huge range of types and sub-recipes there) “making a biotech”. Whilst what is missing is perhaps easier to spot, what is there and needs removing appears to be less so. a) I rarely see 360 degree companies in early Fintechs – indeed I even meet some who pride themselves on not being a 360 degree company :-O  One smart Fintech chap was convinced that this was “following the Silicon Valley model” – stick to your USP etc. An interesting if deceptively attractive argument. In “the Valley” with the value-add from the VCs, the relative ease of funding and the 360 degree components “lying around” that might work.  But not in London. This is a good example of too slavishly following the “Silicon” model.  London will never overtake anywhere by being a poor photocopy.  Rather we need to decide what to copy, what not to copy [hence points 3 & 4] and add that to the London Pros above for our own unique recipe. b) as per Richard and passim in prior LFP episodes, there are very different requirements across tech – consumer internet businesses require a different skillset and a different personality to a Fintech company [& also B2C vs B2B Fintechs].  London Fintech won’t be world-beating if we mis-apply consumer web business lessons that are inappropriate (see LFP005 for an “ultra-

Special agent Michael Nulty (well in his dreams anyway :-D) Wisdom is massively under-rated in our data-driven society. Data, information, even knowledge can be learned.  Wisdom however has to be absorbed. Wisdom is the hard-earned distillation of decades of life experience. So in this summary today I can only scrape the surface with a precis of information and knowledge.  As always I just pick out a few points here – it’s a wide-ranging conversation. To absorb the wisdom you will need to listen and reflect. Michael is a lifetime entrepreneur, He is a fellow of the Royal Society and he is currently founder and MD of Third Sector Finance which adapts Financial Services products to meet the needs of social enterprises in the UK. I met him at a digital currency day as he is both an investor in digital currencies as well as working on improving the blockchain (this distributed ledger that was discussed in LFP003). He is a non-executive director of Gnaratas a company in the renewable alternative fuel sector in Swaziland. In the second Gulf war he co-founded a company that became very active in supplying satellite comms businesses to the non-military allied forces. I could go on but I think you get the drift. In a world where words get devalued bigtime Michael is a Real Entrepreneur with a capital R, capital E. His seminal experience was starting a painting and decorating business in the Isle of Man.  He learned not only “pure capitalism” – employ good people, pay them x, bill x + y – but also from the millionaires whose gardens they also maintained.  Most of them were nice (a surprise) and all of them kept it very simple. K.I.S.S was an everlasting lesson. One of his core experiences which may well help shed light on the current fintech boom/bubble is none of the above incarnations.  In the dot-com bubble. Michael was an active investor in a whole bunch of dot-com companies – most, but not all, of which went through the roof and then through the floor on the way down.  Taking a temporary early retirement in France he had plenty of time to reflect on what differentiated the succesful investments from the unsuccessful ones. Lessons from Dot Com Boom Investing What companies focus on they tend to do well.  But it’s the context, the 360 degree, the surround, the interactions with broader environment that determined success or failure. Need to have a team surrounding one to give this breadth. In London Fintech right now there is good know-how around how to transform an idea into a product but few who can transform a product into a business. A lack of the right people to help with this latter stage. The investments which did best had a lot of domain knowledge and expertise in the team.  The best returns came from where it was effectively a management buyout – folks who know the business, know the market, know the problems.  We discuss the need (and frequent absence in many Fintechs) for domain expertise in the majority of Fintech. The mainstream media tends to focus on retail FS only but this is small subset. At the opposite end the worst ones had minimal experience and there was no real demand for the product (they had fooled themselves and others that there was). The most common mistake is convincing yourself there is a market when there isn’t. Test test test is Michael’s main take-away. “Validated need” Marcelo Bravo. Avoids early stage VC – “a very difficult area”. This led on to a conversation about Incubators/accelerators. A study of them in the US shows very few have had positive returns. In London right now there is an underappreciation of the need for Financial Services experience which is vital in anything other than the simplest retail banking (which is a small part of overall FS). Darwinian evolution will weed out the weakest ones. On the other hand there is immense value in contacts, in the right kind of environment of similar folks in similar enterprises. The 3 month rule – if you are getting nowhere over that timescale – in general best to move on. The importance of phones calls or meetings rather than email/social media – people make the world go round.   Anyway plenty more content in the show including a great anecdote about how to win contracts in the Iraq war … a great story of how a real entrepreneur, like a Lionel Messi, sees a gap and is straight through it and before you can blink the ball is in the net. Albeit in this case lots of balls in the net Michael ends with his feeling that there is a revolutionary feeling out there, profound change is taking place.  Always hard to see the future but in terms of the dot-com boom one of the most valuable after-effects is the persistence of the unglamorous end of things – cable, broadband, etc.  In a similar way when the froth dies down on Fintech it may well be the “infrastructural” aspects such as the blockchain which have the greatest longevity above and beyond the more glamorous, shiny things.   If you like this or other shows please subscribe on iTunes, by App or by email at the top of the column on the right to be informed of new episodes.  And please help spread the word using all those social media buttons below or even the old-fashioned method of just telling your chums

Although this episode is entitled “innovation in insurance” – there is much food for thought of far wider applicability. Fintech narratives often slip into “disrupting banking” – whereas this is just a part of Financial Services – insurance is another vast part. There is another narrative that assumes innovation is the preserve of the “t-shirts” not the “suits” – whereas in practice in the sector as a whole there has been massive (excess even?) innovation in recent decades. Furthermore there are some FS incumbents who were born out of innovation and still live and breathe it. Against this backdrop I am delighted to have on the show John Shaw Head of R&D and Innovation at the Direct Line Group.  John is a great person to talk about innovation in FS as he has had gigs in a rare breadth of FS-sectors – consumer, private, and commercial banking before moving into insurance. John’s very B2C marketing background is also a great counterbalance to LFP005 which was much more B2B focused.  We start the show by discussing how we learned Marketing and Sales in the City – for John this was “meat and potatoes”. For me (coming from “ultra-B2B” City origins) I kinda had to work it out myself over time as the old imperial vibe of the last thing one wants to be was “in trade” (commercial? shudder!) pervaded much of merchant banking. This B2C vs B2B division is a huge fault line in the Fintech scene which I have never seen alluded to.  In essence if your business needs thousands or millions of transactions then there is one philosophy of how to address the marketing and selling functions [and this is the default “tech” vibe imported from the Valley].  Vice versa (and this is where techs can run into problems having de facto absorbed a tech sic B2C vibe) if a dozen deals a year is a lot for you – you need the B2B approach we discussed in the prior episode. In getting feedback from chums who know the insurance market, everyone singled out Direct Line as being “real class”.  In a way it was founded innovatively and continues in that vein.  As is evidenced by this episode incumbents who embrace innovation can have a significant advantage in employing the likes of John to run an innovation team and get a very strategic grasp on their marketplace. John’s view is that corporates rarely lack for good ideas but more often lack a means of trying and trialling and tweaking them to get success before then going on to industrialise them. We didnt capture this point on mic but he (like I) is very much against the whole idea (all too commonly seen in London incubators/accelerators) that innovation equals bean bags, ping-pong tables etc.  Again if one subtracts the “valley vibe” there is no need to be teenage or childish to be innovative.  Equally he is averse to the idea of “blue sky thinking” focusing more on delivering. John lays out the strategic challenges for insurance coming from changing consumer behaviours in terms of key pillars of: the Internet of Things Quantified Self (more accurate data => more accurate pricing) Telematics (ditto but data on devices (eg cars)) P2P/community insurance – eg: Bought by Many (social insurance and one of the best examples of an innovative insurance fintech) and a cracking tale about the “very French” “Mutuelles des Fraudeurs”! Ownership to usership the “End of Inefficiency” I was very impressed by the grasp of the strategic threats and opportunities and mention that I have never seen (yet anyway) such a grasp of strategic innovation in banks [in LFP002 Warren Bond referred to the key roles of innovation departments in banks as currently facilitating the introduction of innovation into banks – not to originating it]. It hadn’t struck me before but the Insurance sector had wake-up calls ahead of the banking sector.  This may be why relatively speaking it has less “really low hanging fruit” (unlike banks around FX and payments).  The first wake up call was the move to online buying and the second was the advent of price comparison websites (which are looking to move more into value comparison (ie including quality as well as price)).  If insurers were lagging and dragging feet before these, then once the business started walking out of the door they had to respond PDQ.   If you like this or other shows please subscribe on iTunes, by App or by email at the top of the column on the right to be informed of new episodes.  And please help spread the word using all those social media buttons below or even the old-fashioned method of just telling your chums

There are some huge misunderstandings in the Fintech scene right now.  Innovation is (often) misunderstood. The importance of domain expertise and experience is (often) misunderstood.  Also what’s happening with emerging market currencies and the London Fintech scene as a whole? On this show today I am delighted to welcome a serial FX entrepreneuer – Jon Vollemaere CEO of R5FX.com (which is all very synchronicitous as this is episode 005 :-)) – to discuss all of these issues. Wearing his day job hat, upcoming regulation requires Foreign Exchange trading banks to radically change their current trading channels for emerging markets. In essence this is to increase transparency in a market which has around $100bn turnover every day. R5 is leading that change by creating an electronic trading platform for emerging market currencies which is focused on moving the market from voice to screen. Above and beyond this current incarnation, Jon is an excellent person to discuss innovation, FS, FX and Fintech with as he has 20yrs experience in FX markets and is a serial entrepreneur having worked, in essence, with Fintechs before “Fintechs” existed as such. So he brings great practical experience to the show. Additionally Jon is a top bloke. Having lunch with him recently I was reminded of the City in the ‘80s – when everyone had something interesting to say outside of Financial Services as well as within it. Indeed it is no surprise that the most creative folks do have the widest horizons. Very tough to be creative if you wear blinkers.   The Importance of Experience and Domain Expertise in Fintech This is especially valuable in a frothy/early-stage London Fintech world where incubators/accelerators/the-media can sometimes portray an implicit assumption that FS is “easy” such that it can be innovated by the archetypal “teenager on a couch” (hence all the bean bags, ping-pong tables etc). Some Fintech can be innovated “from the outside” but much Fintech – like most (all??) mature, regulated industries – is highly complex and highly regulated.  This complexity and regulation is something that needs to be understood whether you are a “T-shirt” or a “suit”. The second important element of deep experience is (in this specific case of R5 but also generically) Jon knows the market.  Again it’s the implicit “lift” lock, stock and barrel of a Silicon Valley (perhaps more retail) model that can be an issue.  All this “customer development” (that is otherwise an essential part of the startup journey) is pretty irrelevant if you have known a market, its players, its problems and upcoming changes for 20yrs…  Of course you always need to listen to your clients – like all businesses – but on the other hand if you don’t know 90%++ of what your product needs from the get-go you were asleep for two decades. This is a point I will return to more over time.  However for now, if London is to have an advantage – and it certainly can do in FS (point not yet proven) – we need to amend the standard (more retail focused) “valley startup” model to accommodate London’s (B2B as well as B2C) FS-strengths. The main domain strength of London in FS is naturally a vast depth and understanding of FS.  London needs to marry “valley” tech know-how with FS know-how … (which not entirely coincidentally is relfected in the LFP byline of bridging the worlds ot t-shirts and suits :-)).   Innovation Misunderstood The bleeding edge right now is the definition of the word Fintech – it’s a very heterogeneous market, so all generalisations (even B2B vs B2C) are rough sketches.  Innovation will differ in the differing sectors of Fintech. Jon coins the useful phrase of Fintech-markets to describe R5’s sub-sector for professional capital markets which is very different from a “new App for a man in the street”. Some of the key innovation angles we touch on are: – Frustration with trying to innovate within ever more rigid MegaBanks is causing folks to leave in order to innovate. However this is a real journey in itself.  Especially once one has left – create product, create business like most journeys is easier when you have done it before (which few have in the current “new fintech” world); – “One important thing for fintechs is who are you disrupting?”  I have comea cross a few Fintechs who think they are disrupting FS whereas they are actually trying to disrupt the software vendors! It doesn’t matter who you are disrupting but you must know who your competition is! R5 is “disrupting from within, banks are our friends”. – “Regulatory enforced technology change is about as nirvana as you can get if you are a fintech startup – part of the marketplace is forced to do it in a new way and way not do it quicker faster better at the same time”.  Long sales cycle but “once banks make the change they do tend to stick to it & if they like it it’s even better again”; – innovation is less about “flying to Mars with feathers” and more about taking an existing model that works in another area and rolling it out, mutatis mutandis, in a new area.  Alternatively/additionally it can be about “putting it in bite sized chunks the market will accept” (eg Bitcoin needs steps along the way “a journey”).  Sometimes salami needs to be sliced to be easy to eat.   London Fintech London Fintech is cheaper and more supported (by an ecosystem from incubators et al to networking groups) than ever before. However it is not necessarily “easier” to launch a Fintech – you still have to go through the same hoops to build product, do marketing, close sales etc. These changes in Fintech are not just quantitative (“it’s 10x cheaper”) but importantly qualitative too – you can now take on the banks, software vendors, marketplaces.   China The UK had exchange controls up until 1978 – “emerging currency” is the phrase used to describe those currencies on the rare journey from “closed” to “open”, Jon also talks about the importance of, current state of and future direction of the renminbi.  “when the renminbi is fully internationalised it will have the same impact on the FX markets that the arrival of the euro did”. Finally trading in non freely convertible currencies and FX products therefor (notably hedging) are extremely important for the “real” business flows in an increasingly global world where income and revenue can be in different continents.   Phew! What a lot in one episode – and that’s just the executive summary   Listen above for the full conversation. If you like this or other shows please subscribe on iTunes, by App or by email at the top of the column on the right.  And please help spread the word using all those social media buttons below

In LFP001 – Fintech The 30,000 Feet Overview I mentioned that the first reference I had seen of the word Fintech in its modern sense was by a man in a pub 3yrs ago,  Eddie George was that man (and you’ll have to listen to the episode to find out which pub ). He talks about the journey from a beer in a pub to now running the worlds largest Fintech professional network.  New Finance has getting on for 3,000 members, events in London, New York, San Fransisco, Paris and looking to open in Toronto and Warsaw, and has an active YouTube channel where highlights of events are shared for free. Above and beyond these bare facts what I find more impressive about Eddie is that in my full-time hanging round and talking to many many folks and businesses in the Fintech scene, Eddie’s name not only crops up time and time again but also always in a positive light in terms of how he helped someone.  In a world where plenty of folk talk the talk (of helping others) Eddie walks the walk. Eddie and I have deep backgrounds in computing (going back it transpires not just to Unix days but also both having owned a Ti58 (one of the first really programmable calculators in the 70’s)).  We also joint experience of over 50yrs in the City. So as well as New Finance the organisation we took the opportunity to have a “3,000 feet” level conversation about the evolution, challenges and opportunities of Fintech.  Key conversation topics are: How innovation really works a) The need in a world of accelerated change for “give it a go”, “iterate quickly”, “use your wits” not the classic, textbook, research and business plan – as you don’t know what the market is going to do. It’s jazz improvisation not playing a classical piece on the piano. “Entrepreneurship is an irrational choice, you have to be slightly crazy” – Eddie quote George Bernard Shaw: “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” b) the need in most of FS for domain expertise.  Too much importation of “Valley” approaches are imported unamended – this, de facto, glosses over the vital fact that the classic “couch-surfing” founding of a billion dollar retail tech company already had great domain expertise (ie of what other couch-surfing 17 year olds want).  By contrast in FS in its modern form much of it is highly complex and needs plenty of experience to understand the issues/regulation/structure/etc. The Evolution of London Fintech a) When Fintech in London hit a tipping point Eddie believes we are in year 2 of a 10yr cycle. London Fintech really started taking off in 2013 but the boom started in 2014 for all sorts or reasons especially funding – although there is a little scepticism as to whether headline figures in terms of funds available have been “bigged-up” b) Froth and noise One of the side-effects of being in the early years of the Fintech cycle is that there is a lot of hype. Plenty of folks and fintech-incubators/support businesses have a high PR:performance ratio. Do you spend 99% of your time promoting yourself or 99% of your time on your product?  Results rather than shouting louder than everyone else will ultimately succeed in the long-term (especially in the City where the word always gets around and it’s hard to lose a bad smell). c) What London Fintech needs to produce more IPOs A combination of insider domain expertise and outsider fresh thinking. A combination of young tech smarts and older/wiser domain/business expertise. And some way to “bash all this together” and make teams that are balanced. Too many Fintechs are held back by not just starting with a tech focus but, out of familiarity, getting stuck there due to lack of knowledge of BizDev, Marketing, Sales, HR, Legal, Compliance etc etc. Right now we have plenty of companies which have gone from idea to product but far less which have made the jump from being “a Product” to being “a Business”. d) The future of Fintech as Global in Production and Markets There will be a series of clusters around the world, connected digitally which will produce the components for Fintech.  Consumers will buy anywhere limited only perhaps by regulation. Against this backdrop ideas that one centre will or even could dominate Fintech is a fantasy belonging in the froth & hype category. As FS in an old and conservative industry most “innovation” is recognizably the same as prior products (eg “cheaper FX”).  However over time once components are put in place there can be more radical innovation in producing far less recognisable approaches and products. How to get into Fintech Both Eddie and I share the experience of Fintech as being more fun and full of more interesting, nicer. more helpful people than in more corporate FS. I have personally spoken to plenty of people who are currently earning less than they used to but enjoying work far more, far more enthused and far more motivated than they have been for a long time. If you are in a dull day job there are ways to siddle out without taking a huge risk and jumping into the unknown. Notably networking, attending New Finance events, side-projects – plenty of risk-reduction and, importantly opportunity-creating angles.  “Just help out, get involved”.  Life only looks limited from “within the cubicle” – plenty of opportunity lies outside it

Should have gone to Specsavers? Hysteria The Daily Mail hasn’t yet written about how Bitcoin causes cancer. I’m rather surprised given the hysterical tone of much Bitcoin coverage. “It’s going to a million dollars!”. “It’s going to zero!”. “It’s the future of money!”. “It’s a scam!”. “It’s for drug dealers and terrorists!” .  And those comments are just from the sober broadsheets [And just in passing the currency accepted by terrorists and drug dealers worldwide is a wad of US$ bills – nothing is going to displace that soon ;-)] Oh dear. In this episode I am very glad to welcome Dr James Smith, CEO and co-founder of Elliptic – a company founded by three PhDs – which has recently raised £2m to grow it’s business as a digital custodian of digital currencies.  As per the photo above even the Chancellor George Osbourne is happy to be photographed at a Bitcoin ATM.  So we can assume there must be something more to Bitcoin than hysteria if hommes serieux are coming to the party. Bitcoin as Technology as well as Currency/Asset The most under-appreciated point about “Bitcoin” is that it is both a technology and a currency/asset/payment-mechanism.  By which I mean that the pseudonymous creator – Satoshi Nakamoto – made (in 2008) a great leap forwards in Computer Science/Tech. THAT leap forwards will persist and has massive and widespread potential (and is used in most other digital currencies at present). In implementing that technology in one specific application he then made a whole bunch of implementation decisions (eg there will only ever be a fixed number of Bitcoins).  All of those parameters can be changed – so eg as James says you can easily make for example a currency that is more or less anonymous than Bitcoin. However creating things for the digital age means we can have “digital costs” – I recently saw an example of an international $6m transaction which was done five million times cheaper than through banks…  Think about the implications of that kind of pricing change – now that is disruption (whatever the early teething troubles are). We can also note that Governments and Banks have a very privileged position due to being the sole creators of money.  Can’t say that’s going very well – if I had been given £1 when I was born it would have fallen in value roughly tenfold And let’s not start on the 2008 financial crisis, or the EU’s creating massive debts to be paid by our grandchildren just to keep their unsustainable vanity project going, or all those debt-financed wars. The full implications of disruptive tech are always under-appreciated.  “TCP/IP” sounded unsexy in the past but became “The Internet” which is not. “Hyper text mark up language” became “The Web”. In the same way the (opaque and unsexy sounding) “Blockchain” has the capability of becoming many things. I mention the example of solving the problem of house purchase chains in the UK for example.  And any of you that have sat with that pain know that it’s one of the biggest stresses in life – a huuuuge benefit if we can sort that one. In this episode James and I focus on unwrapping “Bitcoin as technology”.  We also highlight Tech/Computer Science as a never-ending flow of ideas, of concepts, of innovations, of upgrades to prior concepts.  Everything in life is a stepping stone to the next stepping stone. Bitcoin – whether qua technology or currency – is complex (especially when you drill into the cryptography). Most reporting of it is unclear. [I must give a shout out here to another James – James d’Angelo – his YouTube “Bitcoin 101 Blackboard Series” I found highly useful in getting to grips with some of the detail. To evidence the complexity of Bitcoin he has 1.5hrs of YouTubes explaining the first (relatively short) wiki Bitcoin paragraph alone!]. Translating Bitcoin Tech Terms into English In this episode we stick to the Bitcoin tech terminology even if we try and convey that in common sense terms.  It’s evidence that we are still at the “tech” stage that the language is tech driven.  Blockchain makes sense in programming terms.  Mining makes sense in terms of expending effort for a reward, However after recording the episode it occurred to me that everyone would understand Bitcoin far more if “normal Financial Services Terms” were used. So: – instead of “Blockchain” – “the list of all transactions” (or ledger if you prefer) – instead of “Bitcoin miners” – “Bitcoin accountants” – instead of “Bitcoin mining pools” – “Accountancy partnerships” In these terms – as we describe in the episode – Nakamoto’s disruptive innovation was – for the first time – to do away with a centralised ledger of transactions, to do away with a Central Authority [cf the Internet].  In doing so he had to create a system where Bitcoin Accountants are remunerated for keeping a record of all transactions. Furthermore as a whole they act in the interests of Bitcoin and “the truth” even if some of them are not to be trusted.  He also had to find a way of ensuring that a digital asset can’t be copied [after all you can make infinite copies of an mp3, jpeg (not ideal for a currency :-D)].  Huge conceptual leaps forwards (and that part of it – the ledger system – has proved pretty robust so far). The need for robust Financial Services Infrastructure We also talk about the importance of maturing the environment around digital currencies which is where Elliptic are focused. Investment managers do not hold your assets themselves – they hold them with custodians.  In the same way the new generations of digital currencies or digital assets will require new digital custodians. In the specific case of Bitcoin-qua-currency your sole proof of ownership is “a password” – lose that (or have it stolen) and you have lost your currency. Would you rather trust a free App with your money or a professional, insured, custodian?!   I hope you listen to the show and end up with a sense of the technology, how radical it is and a glimpse of the possibilities.  You can also (as I mention) go off and set up your own currency

This week I have the great pleasure of being in conversation with Warren Bond, co-founder of matchi.biz. It’s a great way to start the London Fintech Podcast interviews as both this podcast and matchi.biz are about bridging the worlds of suits and t-shirts, of incumbents and innovators. If matchi.biz continue to deliver on their promise and scale successfully they will be that rarest of things – a real game-changer. This is a must-listen to show for any Fintech aiming to sell into banks. Matchi.biz is something of a combination of an innovation marketplace/database and a dating service.  On one side innovators sign-up (to sell) and on the other side sponsoring banks (to buy). It’s free to try and (IMO) amazingly cheap to use.  I wish it had existed 15yrs ago when I had my own Fintech startup selling in to banks. Many fintechs I meet are all to aware of the difficulty of selling into banks – notoriously long/slow sales cycles and highly bureaucratic processes.  A recent survey by the ccgroup found that almost 75% of all IT investment decisions in financial institutions involve up to 20 people, with 15% involving 50 people or more :-O So many fintechs – in essence – try and avoid selling to banks. However Banking IT (alone) is a $180bn p.a. marketplace (2013: roughly equally split into thirds across US, Europe and Asia). Furthermore as Warren discusses many banks are waking up and smelling the coffee fast and setting up innovation units to facilitate the purchasing process for Fintech. [Another sign of how hot Fintech is is that "even the FCA" (in London) is to set up an "inovation unit" to faciliate innovators dealing with the regulator] Matchi.biz is about making this process far easier – especially in the sweet spot of something that is successfully working in one bank in one geography.  Warren gives the example of one innovator who has sold into Chicago and is now having sales conversations all around the world.  Imagine trying to that in the past without the interweb and a facilitator such as matchi. Warren also outlines the characteristics of innovations that make them harder or easier to sell into banks (something I have never seen any attention given to before). He emphasises the 75% of innovations that are “below the waterline” – unsexy, never publically visible, not written up in newspapers but very wanted. Equally for the banks we discuss how they can easily make themselves more open to innovation and not be out-competed in this current Fintech boom – either by the Fintechs themselves or by their more innovative incumbent competitors. As well as matchi.biz Warren co-founded the innovation consultancy Luminous and also co-founded “Sport for All” a social enterprise of getting kids into sport and off the streets which is active in 18 townships and has been visited by the UK Trade and Industry department – we could certainly do with that in the UK too Warren Bond co-founder of matchi.biz Enjoy and sign-up for email updates of new episodes or subscribe on your smartphone via iTunes or a Podcast App (my favourite is Pocket Casts).  These will periodically check for updates and ensure that your commutes or long car drives are never as boring again. In the meantime follow us on Twitter @LondonFinTech and spread the word

When I told folks I was going to be launching a FinTech Podcast the most common reply was “What’s FinTech?”  and “What’s a Podcast?”.  Hardly auspicious beginnings Well if you are here then you know what a Podcast is – it’s an audio file you can listen to online or download and listen to offline.  Even better you can subscribe on your smartphone via an app such as iTunes or (my favourite) Pocket Casts.  These will periodically check for updates and ensure that your commutes or long car drives are never as boring again. As to the tougher question rather than diving in with a FinTech interview (which is the theme of London FinTech Podcast) I thought it would be a good idea to start with an overview of FinTech. In a recent survey 9 out of 10 of my City chums hadn’t heard of FinTech in the sense it is now being used.  In an even more informal survey at drinks with a group of four developers none of them had heard of FinTech. So perhaps Job 001 is to educate about the context and what is going on.  To this end in this first podcast I cover four questions: What is FinTech? How big is FinTech? Why is it important? Why is it happening now? Enjoy and I will see you next time when we get rather lower than 30,000 feet and start talking to folks in the sector.  In the meantime follow us on Twitter @LondonFinTech and spread the word