The second day of the MoneyConf 2016 in Madrid is coming to its end, and our leader, Aditya Khurjekar, returns with a baggage of insights and exciting encounters from one of the most important events internationally where the biggest banks and tech firms meet.
Conferences like MoneyConf accumulate the latest trends across industries, important developments and unveil some of the most important achievements and news. As the leading source of financial insights, we couldn’t miss a chance to cover the event and definitely weren’t disappointed by the array of professionals that attended the conference and their presentations.
Let’s go through some of the most interesting parts of the event that brought together 1,800+ people from 60+ countries across the world for a convergence of international financial behemoths with exciting FinTech disruptors.
Breakfast Briefing with Grupo BBVA's Carlos Torres Vila on the ways BBVA keeps up with the time and more
The first day of the conference was kickstarted by the Breakfast Briefing with Grupo BBVA's Carlos Torres Vila. BBVA is known to be one of the most innovative banks internationally that has been able to be at the forefront of the latest developments in the time when the majority of banks have been in the phase of disruption from agile startups.
Torres Vila said that banking is no more than managing data and information, and in the time when crisis hit the industry and regulation tightened the screws on banks, BBVA has been able to maintain the long-term vision on the way banking will be in the future with technology being the defining factor.
Emphasizing the two ways BBVA has been able to keep up with the times, Torres Vila mentioned transformation of the current business to better serve customers leveraging technology (design, data management, AI) and the development of new business models through partnerships/acquisitions and investments into external innovators.
To hear more on the ways traditional financial institutions can keep up with the times and remain relevant for customers, listen to the Breakfast Briefing here.
On Wednesday at MoneyConf, Santander’s FinTech VC fund, Santander InnoVentures, announced its investment in MoneyConf startup Socure, an industry leader focused on real-time digital identity verification solutions.
New York-based Socure applies machine learning techniques to biometrics and data intelligence from email, phone, IP, social media and the broader Internet to enable the next-generation of multifactor authentication. Socure claims to have reduced fraud rates, increased acceptance rates as well as lowered compliance and manual review costs for the enterprises using the company’s solution.
Víctor Matarranz, Senior EVP Strategy at Grupo Santander, attended the MoneyConf to share his insights on the way Santander is evolving.
As Matarranz commented at the keynote, “We believe the flexibility of FinTech companies, and experience and soundness of banks such as Santander form the perfect partnership(s)—good for startups and good for banks like Santander as it helps us accelerate our digital transformation.”
Among the insights he shared, Matarranz emphasized the challenges faced by the banks in 2016, mentioning regulations, legacy systems, the risk-averse culture and insufficient agility. Given that customer expectations are radically changing, it’s important for banks to evolve. That’s where the concept of FinTech 2.0 could be an answer. FinTech 2.0 represents a perfect partnership between banks and FinTech startups when each side brings the best of it to the partnership to create the best solution fitting customer demands and expectations.
In the case of Santander, the bank has two vehicles to foster this collaboration: Santander InnoVentures and OpenBank, a fully digital bank and spearhead for innovative services and products that counts 1 million users.
Matarranz also shared interesting predictions on the way the bank of the future will look like. To find out more, read on.
Saxo Markets, which empowers financial technology companies with API-enabled access to Saxo’s entire trading infrastructure enabling them to build tailor-made apps and create new value streams, was one of the event partners. Kim Fournais, the Founder of Saxo Bank Group, spoke at the event and provided insights on the way the wealth management industry has evolved making traditional, non-transparent structured wealth management products inefficient nowadays. In collaboration with BlackRock, Saxo is looking to build innovative solution to leverage robo-advising in capital allocation models.
Commenting on the technologies that will have a significant impact on wealth management aside from robo-advice, Fournais mentioned the widely discussed mobile, HTML5 as a leading front-end solution, and that the industry is still in the infancy in terms of leveraging the opportunities presented by mobile technology. Saxo claims to be the only multi-asset trading and investment bank that offers everything on mobile and believes that the situation has to change.
More insights on the future of wealth management can be found here.
Kathryn Petralia of Kabbage, Jay Reinemann of Propel Venture Partners, Chris Skinner of The Finanser and Claire Calmejane of Lloyds Bank gathered on the scene to discuss the winners and the losers in FinTech’s future.
As manipulations around ‘unbundling banks,’ ‘FinTech disruption,’ race for funding and partnerships, and the concept of FinTech 2.0 don’t exhaust themselves, Skinner fairly wonders what FinTech 3.0 will look like. As Skinner shared, he believes that a lot of FinTech innovation in the future will be around underserved markets where individuals and businesses have little to no access to formal financial services. Although Skinner doesn’t believe that banks will be replaced by FinTech in the future, he suggests that there will be a question of where to make money in the future.
Continuing the discussion on the future of FinTech, Calmejane of Lloyds Bank brought up interesting stats emphasizing significant investments in FinTech. However, as Calmejane believes, we should be paying attention to investments that banks make into their digital transformation. Lloyds Bank, one of the main banks in the UK, in particular, has committed £1.7 billion over the period of 9 years in total to transform 10 journeys that customers have with banks.
Customer demands are changing and they always want more, which is why it’s important for banks to meet their demands and moving services online is the way to do that (20 million customers in the UK are already using Lloyds’ online platform).
Calmejane also commented on the meaning of innovation, which she sees in collaboration between the government, banks, VC firms and financial technology companies in developing the best ways to meet consumer demands and provide seamless access to banking services.
More insights on the future winners and losers in FinTech’s future can be found here.
Out of 100 candidates, three startups were shortlisted for the only one to be named the ‘Best Startup’ at the MoneyConf. Grace Systems, a startup that provides a powerful tool to analyze and simulate future value in cross domain and cross-platform data stores, was named the ‘Best Startup’ against two other PITCH finalists Spendesk and Akiba.
There certainly were more exciting keynotes and discussions, focusing on modern trends in technology and finances. Here are some of the insights from both days of the conference: