The Future of Banking and Financial Services Summit took place in The Gibson Hotel, Dublin on April 28th. Held in conjunction with The Sunday Business Post and iQuest events, its attendees represented the full spectrum of financial services, from retail banking to payments to regulatory risk and compliance.
Everyday, we realize the financial services industry is evolving. With the use of technology, movement of capital is becoming more fluid, methods of exchange are changing and as Horyou is harnessing these opportunities with their new social currency “Spotlight”, I was interested to learn from the executives leading this change.
The morning keynote was delivered by Colm Lyon, CEO of Fire Financial Services who alluded to “The Great Fintech Scramble”, where many financial services companies are racing to capture market share. He was optimistic about the opportunities that lie across the industry for apps and payments services but also cautioned technology evangelists: “It takes a long time and capital to build a fintech business”.
There was some interesting comments made about the legalities of fintech; it’s easy to forget how rapid these changes are but any industry of course still needs to be governed. Dominic Conlon, Head of the Corporate Department at Lehman Solicitors highlighted the fact that archaic laws don’t fit with the constantly evolving nature of cyberspace. “The law doesn’t know about payments”, he said, and Ronan Hughes, Head of European Payments Services at RBS joined him in saying: “inaction is not an option”.
Ronan McGoldrick of Leman Solicitors reiterated how difficult it is to regulate in the area of fintech and the need for collaboration. “Regulators and innovators will need to come together”, he said. So here another one of the founding principles of Horyou was highlighted – collective action.
The afternoon session was centered around how finance will reinvent itself in this era of disruptive innovation. Anthony Watson, President and CEO of Uphold, the world’s fastest growing money platform, said that the Keynesian model of a bank lending according to what it says on their balance sheet is over. “I would be worried if I was a big bank, the industry is changing, they cannot rely on their legacy anymore”, he said.
Watson also made reference to banks and social impact with regard to fees. He said that technology gives us a real chance to democratize the industry and level out the playing field. This reminded me of the potential that Horyou’s Spotlight has, where it can can allow investors who have the capital to give it to impactors who don’t, therefore spreading wealth and ultimately making a positive social impact.
Giuseppe Insalaco, Senior Advisor at Central Bank of Ireland, closed with his personal view on what the future holds for the financial services industry. Emerging trends, he highlighted, were ‘enhanced consumer intelligence’ and ‘razor sharp’ market segmentation. ”Data is the new gold”, he said. As internet users leave their electronic footprint, entrepreneurs harness this data and identify customers’ needs. However, this also makes speed to market critical and intensifies competition. In his crystal ball analysis, Insalaco predicted crowdfunding coming of age and legitimizing, becoming less social and more business led. He was fearful of the emergence of an arms race in cybersecurity – “A wall is only as good as the next hacker” -, and predicted an escalation of online breaches.
The main takeaways from the event was that fintech brings opportunities and threats to the financial services industry. Customers will always need a place to manage their finances; whether this is in a traditional bank or an online money platform, they will go with whoever offers them the best return. New platforms like Horyou’s Spotlight add yet another layer, offering social returns.
Written by Dearbhla Gavin