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The definitive source of news and analysis of the global fintech sector | June 2018 www.bankingtech.com A SUBLIME ETERNAL TUNE To the rhythms of fintech CASE STUDY: MYNT Telco moves into micro-lending SPOTLIGHT AI to the core FINTECH FUTURES
IN THIS ISSUE
JOIN US FOR THE INDUSTRY’S
PREMIER SUMMER EVENT
13 July 2018
Silver Sturgeon | A 21st Century River Yacht
Contents
NEWS
04 The latest fintech news from around the globe:
the good, the bad and the ugly.
18 Payments commentary
Learning the B2Cs of e-commerce.
20 Food for thought: tenacity
The least glamorous life skill and the greatest
business asset.
26 Spotlight: cryptocurrencies
IMF’s even-handed approach to crypto-assets.
28 Case study: Mynt
Philippine’s largest telco moves into
This July we will be recognising excellence in the use of IT in the payment micro-lending space.
industry worldwide, and the people who make it happen.
32 Stargazing
Be a part of the spectacular celebrations! Book a seat or a full table for you Banks classified as stars.
and your colleagues, partners or clients.
34 Mobile banking case study: RBC
The lunchtime event will take place on a luxurious Silver Sturgeon yacht, Cutting-edge tech can wait. Tackling everyday
embarking from central London. issues customers have.
What better way to celebrate summer and tech innovation than on a cruise 38 Spotlight
alongside the river Thames, enjoying spectacular views, gourmet food, celebrity Core components of an AI programme.
host entertainment, company of outstanding industry figureheads and of course
40 Fintech funding round-up
the Awards ceremony itself. Who got the dosh and who parted with it.
We will be delighted to have you on board (pun intended)!
REGULARS
43 Appointments – the movers and the shakers.
43 Industry events – mark your calendars!
44 Out of office – a slice of satire.
WWW.BANKINGTECH.COM/PAYTECHAWARDS
Get in touch to find out more and book your seat:
Alec Gost
e: alec.gost@knect365.com, t: +44 (0)207 017 6122
#PayTechAwards June 2018 | www.bankingtech.com | 01
News sites can be confusing.
There is too much going on in the world.
Sometimes it’s difficult to spot the most
important topics. Articles drag on and on before Managing Director & Editor-in-Chief
Tanya Andreasyan
they get to the point. +44 207 551 9010
tanya.andreasyan@knect365.com
We don’t do that (intentionally). Deputy Editor
Antony Peyton
+44 207 551 9010
Every day we’ll send you a digest of the industry’s antony.peyton@knect365.com
top news and subjects so you don’t have to search for Design & Production Manager
Kosh Naran
updates anywhere else. kaushik.naran@knect365.com
Head of Sales
Sign up to the FinTech Futures
Jon Robson
Editor’s note
+44 203 017 3327
free daily newsletter –
jon.robson@knect365.com
your go-to resource on all things tech.
Business Development Executive
Alec Gost
+44 207 017 6122
alec.gost@knect365.com
Marketing Manager
Irena Andrisevic This month’s editor’s note comes to you “However, technology on its own can
+44 207 017 5379 from the Temenos Community Forum help, but it can take you only so far,” he
irena.andrisevic@knect365.com
(TCF) in Dublin, the banking tech vendor’s continued. “On its own, it won’t change
Subscriptions and Renewals biggest one yet, with nearly 1,500 people the industry.”
Tel: +44 207 017 5533 from over 100 countries in attendance. Change must engulf two more areas in
Email: telecoms.enquiries@informa.com
The keynote was delivered by Ireland’s addition to technology: cultural change
Subscription for one year: prime minister Leo Varadkar, who stressed and business model change. These are
■ £495 the country’s commitment to the European “prerequisite” for success going forward.
■ €625
■ $795
Union, free trade and securing a position “Banks can be better platforms but
as “a leader, not follower” among tech hubs they also must become challengers
Subscription for two years: worldwide. themselves,” he suggested. He cited
■ £800
■ €880
He emphasised the importance of Openbank, Santander’s digital banking
■ $1,000 education (“key to transformation”), subsidiary in Spain as an example (which
digitalisation (which the government fully is a T24 user).
supports and “leads by example”, he said) Other big brands engaged in similar
and making sure the innovations benefit the endeavours are RBS in the UK, which is
people of Ireland (raising living standards, building a digital bank for less financially
provisioning good jobs, providing a work- fortunate and savvy customers of its
life balance, improving the infrastructure, NatWest subsidiary; Virgin Money, which
investing and healthcare and education etc). is too building its own digital bank; and
© Banking Technology 2018
All rights reserved; Banking Technology material The theme of TCF was “digital to the core” Santander in the UK, which is creating a
may not be reproduced in any form without (clever pun!), and whilst Temenos is known digital lending platform for SMEs (see p5).
the written permission of the publisher. for its T24 core banking system, its CEO David Challenge the challengers! bt
Banking Technology is published ten times a year Arnott feels that the company has now
moved beyond the core and is ramping up
Address its capabilities in payments, front office and
Maple House
149 Tottenham Court Road anti-money laundering (AML).
London W1T 7AD “In software, whoever is the biggest –
www.bankingtech.com UK
Printer
wins,” Arnott stated in his opening speech.
As for banks, software modernisation –
front-to-back office – is “the future”, he said.
@FinTech_Futures Hobbs the Printers Ltd
Hampshire, UK “The fundamentals of banking remain Tanya Andreasyan
unchanged,” Arnott noted. “Deep domain Editor-in-Chief
Interested in advertising and marketing opportunities? Get in touch: ISSN 0266-0865
www.bankingtech.com expertise and technology are paramount. Banking Technology
Alec Gost
Tel: +44 207 017 6122 | Email: alec.gost@knect365.com
June 2018 | www.bankingtech.com | 03
NEWS NEWS
BBVA team unveils Bahrain Benefit-s from national PayPal to buy iZettle for Santander UK to
mobile platform payment system $2.2bn ahead of IPO launch financing
in Mexico Bahrain’s Electronic Network For Financial
Transactions (Benefit) has launched a
PayPal will acquire Stockholm-based small
business e-commerce platform iZettle for
and mobile point-of-sale technology with
PayPal’s global scale, online and mobile
platform for SMEs
BBVA has launched in Mexico the “first” national electronic wallet payment system, $2.2 billion, giving it a payments boost in payments leadership”. Santander UK says it is working on a
mobile banking platform developed BenefitPay, to allow consumers and Europe and Latin America. iZettle was founded in 2010 by Jacob project “to build an open digital financial
globally by means of a coordinated effort merchants to transact without the use of Dan Schulman, president and CEO, PayPal, de Geer and Magnus Nilsson. It unveiled services platform for SMEs”.
involving multidisciplinary teams from cash or cards. says: “This is the largest acquisition in our the “world’s first” mini chip card reader The project is part of four so-called
Spain, the US and Mexico. User can download an app on their company’s history and significantly expands and software for mobile devices. Today, “speedboats” – innovative ventures within
The new app is the first built on this smartphones (iOS/Android) to either our in-store presence around the world.” the company’s commerce solutions are the broader Santander group – announced
global development platform, “unifying send or accept payments as it attempts On 8 May, iZettle said it intended to used by half a million merchants across 12 by the banking group last autumn.
user experience in all countries with to encourage spending in the national proceed with an initial public offering (IPO) countries and two continents. It is understood the technology for the
a single design and navigation logic, economy. and to list its shares on Nasdaq Stockholm. PayPal says it expects to close the deal platform will be supplied on a hosted basis
adapted to meet the financial needs of The BenefitPay app works by using And as reported in April, iZettle took on in the third quarter of 2018, at which time by Mambu, which already has experience
customers in each geographical area”. QR code scanning technology. There is a Square with the launch of its new platform it will begin its integration plans. with the UK’s SME banks – OakNorth is its
BBVA CEO Carlos Torres Vila says the app one-time step of the addition of the card, that will allow merchants to sell in-store Once the acquisition closes, de Geer will flagship customer in the UK.
is an “example of how a global approach which is saved. Then a customer scans a and online. continue to lead iZettle, reporting to PayPal Banking Technology understands the
blends in with our digitisation process”. QR code from the merchant app, enters In the latest deal, Schulman says the COO Bill Ready. system selection involved a number of
According to the bank, other benefits authentication, and the transaction occurs. combination “brings together iZettle’s in- There was no word on Nilsson’s fate. hopefuls, Thought Machine and Temenos
include reutilising different components, Any customer of a participating bank store expertise, digital marketing strength Antony Peyton among them.
which in turn helps shorten time-to-market can pair their debit card with BenefitPay. Benefit – aka The Benefit Company No comment was available from either
across all geographical areas. Participating banks include Ahli United (TBC) – is the nation’s switch for handling Santander or Mambu on the bank’s choice
These developments also “foster Bank, AlBaraka Islamic Bank, Arab Bank, ATM and POS transactions, and other Payments firm Adyen plans €9bn IPO of tech.
modularity, allowing the global product Bahrain Islamic Bank, BMI Bank, Citibank, services. “We are excited by opportunity to
to include local particularities”, such as ICICI Bank, Khaleeji Commercial Bank, It was established in 1997 with a special Dutch payments firm Adyen has confirmed There was more good news, when it said help more SMEs to prosper and we
payments by cheque in the US and utility Kuwait Finance House, Mashreq Bank, licence from the Central Bank of Bahrain it’s planning an IPO with the listing of its processed volumes increased to €108 billion look forward to sharing more about the
bills in Latin America. National Bank of Bahrain, National Bank as a “provider of ancillary services to the shares on Euronext Amsterdam. in 2017 compared to €66 billion in 2016, platform soon,” Santander says.
To support its ambitions, BBVA’s CEO cites of Kuwait, Standard Chartered, and State financial sector”. Adyen says the intended offering will representing year-on-year growth of 63%.
some stats – and says as of the first quarter Bank of India. Antony Peyton consist of a private placement of existing In February, eBay gave PayPal the SPEEDBOATS
of 2018, it had 24 million digital customers, shares held by the selling shareholders to boot and turned to Adyen as its primary The aforementioned innovation
of whom 19.3 million operate using mobile institutional investors in various jurisdictions, processing partner. “speedboats” are global platforms based
devices. He adds that 37% of total sales are Deutsche Bank Luxembourg turns to including the Netherlands. This will give it a Adyen’s customer base includes on a start-up model, led by independent
Avaloq for core banking tech revamp
generated through digital channels. valuation of up to €9 billion. Uber, Netflix, Facebook, Spotify, Etsy and CEOs and sponsored by Santander’s
Its current 5.7 million digital customers The selling shareholders intend to sell Vodafone. country heads.
in Mexico account for 30% of the group’s approximately 15% of the company’s Some of its famous backers include They are:
total digital customer base. Deutsche Bank Luxembourg has banking clients and as the EU service shares in the IPO. cyborg impersonator Mark Zuckerberg ■ Super Digital – a digital account
Eduardo Osuna, VP and CEO of BBVA implemented Avaloq’s core banking system, hub for the group’s international wealth Pieter van der Does, co-founder, and Twitter’s Jack Dorsey (and Square of for the unbanked population in Latin
Bancomer, the banking group’s subsidiary creating “a new, single cash ledger for its management business. It is one of the president and CEO, says: “We feel that we course). America;
in Mexico, says over the next five years, various businesses”, according to the vendor. largest foreign banks in Luxembourg are still in the early stages of a remarkable As of 31 December 2017, the company ■ Openbank – a digital challenger bank
it will invest $300 million in platforms, The new solution, Avaloq adds, will and classed as a systemically important journey. Our focus remains on building had 668 employees globally, with its initially serving the Spanish market acting
redesign of apps, and new (unspecified) enable the bank to “to deliver the full institution in the Grand Duchy. It is directly new functionality and on helping our headquarters in Amsterdam, and 14 other as a blueprint for a new IT architecture.
products and services. range of services to clients while reducing supervised by the European Central Bank merchants grow. This offering provides offices in the US (San Francisco, New York), The bank is now also moving into
The expansion of this project starts at complexity, risks, costs, and paving the way (ECB). us with the freedom to keep building the Latin America (Mexico City, Sao Paulo), Argentina. Temenos is proving its T24 core
BBVA Bancomer over the next few months for future growth”. Luxembourg and Switzerland are the company, while offering our shareholders a Asia-Pacific (Singapore, Sydney, Shanghai) banking solution for Openbank.
and will be extended to Uruguay and Peru, Deutsche Bank Luxembourg and key international competence and service path to liquidity.” and Europe (Paris, London, Manchester, ■ One Pay FX – Santander’s blockchain-
prior to rolling out across the remaining affiliate entities of the German banking group centres in Europe for Deutsche Bank’s As part of its explanations, the firm cites Berlin, Stockholm, Brussels and Madrid). based international money transfer
countries in BBVA’s footprint. in Luxembourg decided to operate from one cross-border wealth management its healthy financial status. In 2017, Adyen obtained a banking service, launched in April for retail
In March, Alipay, operated by Ant cash ledger for all of its businesses and have activities. For the year ended 31 December 2017, licence in Europe, enabling the company customers in the UK, Spain, Brazil and
Financial, said it was expanding its footprint now migrated “in one move” from their legacy The Swiss operations have already been Adyen says it generated net revenue of to offer payment processing services with Poland. The project is carried out together
in the Americas through a partnership with tech to Avaloq Banking Suite. using Avaloq Banking Suite for a few years, €218 million, representing 38% growth direct settlement of funds to merchants with blockchain tech provider Ripple.
Openpay in Mexico. (In April 2017, BBVA Deutsche Bank Luxembourg serves and so have the group’s subsidiaries in compared to 2016, and adjusted EBITDA from an Adyen account “instead of having ■ An open digital financial services
Bancomer acquired Openpay.) as the group’s syndicated and bilateral Hong Kong and Singapore. of €99 million, representing an adjusted to rely on external banking partners”. platform for SMEs in the UK.
Antony Peyton lending hub for corporate and investment Tanya Andreasyan EBITDA margin of 45.5%. Antony Peyton Tanya Andreasyan
04 | www.bankingtech.com | June 2018 June 2018 | www.bankingtech.com | 05
NEWS
ABN Amro profits from digital revamp
ABN Amro has reported a net profit of €595 cross-country scale and enable our strong Solutions and Finastra.
million for Q1 2018 due to cost savings North-West European private banking The bank also highlighted some of its
through its IT overhaul. activities to grow”. recent developments.
The profit is a decrease compared to Q1 Its IT transformation and digital innovation As reported in March, Moneyou, ABN
2017, when it was €615 million. The bank says programmes are “progressing well”. Amro’s digital banking subsidiary, was
it had a return on equity of 11.5% for Q1 2018, Dijkhuizen explains: “We continue to launching its Tikkie mobile payment app in
and its cost/income ratio improved from execute the transformation plans of our core the German market.
60.2% to 57.9%. banking systems which we initiated in 2013. In the same month, it was one of the
ABN Amro is in the midst of a tech revamp. We are confident in our current approach investors in Germany-based Banking-as-a-
Kees van Dijkhuizen, ABN Amro’s CEO, where we continuously phase-in further Service (BaaS) platform, solarisBank, which
says: “In recent years, private banking has modernisations and we do not intend to completed a Series B funding sound, raising
moved from a wider geographical footprint initiate a new core banking replacement.” €56.6 million.
to a franchise with strong local brands in core The bank is in the process of standardising Elsewhere in its financial results, ABN Amro
countries in North-West Europe.” its private banking and wealth management says its net interest income remained “strong”,
Its Asian activities have been divested operations on the Temenos T24 platform benefiting from loan growth especially in
and in February, BGL BNP Paribas revealed (plus a number of front-end products from Dutch SMEs and corporate loans. Its market
it was buying all the outstanding shares in Temenos which form its WealthSuite offering), share in new mortgage production was
ABN Amro (Luxembourg) and its fully owned replacing the legacy Olympic core banking around 20% for this period.
subsidiary ABN Amro Life as the latter sees system from ERI. The project started in early However, Dijkhuizen says its impairments
no future for its wealthtech business in the 2015 and is an extension of an existing deal were “high this quarter due to charges for
country. the bank has with Temenos (a number of its specialised loans in a few specific sectors”.
By 2020, Dijkhuizen says it will see international locations already run T24). The bank saw an increase in
“harmonised product and service ABN Amro is also on customer lists of a impairments for commercial banking clients
propositions and platforms as well as host of other core banking tech vendors, (predominantly healthcare).
standardised processes” that “should drive including SAP, Infosys Finacle, TCS Financial Antony Peyton
ING unleashes developer portal
ING has opened a developer portal for API corporate clients and fintechs who want to new European Payment Services Directive
innovation and to work more closely with partner with ING. (PSD2).
external developers. “We look forward to increasing choice The initial simulation APIs offered
This first version of the portal gives and value for our customers through a include account information services,
developers access to selected, simulated collaborative developer ecosystem,” says payment initiation, and payment request.
ING APIs they can use to jointly create new Mark Buitenhek, ING’s global head of ING says it will continuously expand
solutions. transaction services. the portal’s functionalities and the APIs it
“In the spirit of open banking”, the The APIs will be made available in a offers. No details on that at present.
portal is available to developers from sandbox for testing – and facilitate the Antony Peyton
Lloyd’s of London launches lab for insurtech innovation
Lloyd’s of London has unveiled its new lab Lloyd’s market participants”. Consulting Group.
as it looks out for insurtech innovation in an It’s located in Lloyd’s building (i.e. Lime It is open to applications from
“increasingly digital, data-driven world”. Street, in London’s main financial district). entrepreneurs, early and growth stage
Coming in the second half of 2018 the Lloyd’s names some specific areas where companies operating in the insurtech
Lloyd’s Lab will focus predominantly on it welcomes ideas. These include reduced space worldwide.
designing technology-driven solutions. expenses, improved premium retention, There are no specifics at present, but
As you guessed, the lab will enable new improved claims experience, brand participants will receive mentorship and
concepts, ideas and products to be tested awareness and reduced cost of change. guidance with the chance to trial and integrate
in a “fast-track, fast-fail environment with The bank’s partners in the lab are their technologies, products or solutions.
the support and active involvement of investment firm L Marks and Boston Antony Peyton
June 2018 | www.bankingtech.com | 07
NEWS NEWS
Julius Baer live with Temenos wealthtech SIA buys First Data European card processing for €375m
Private banking group Julius Baer has The project commenced in early 2015, Asia, which is our second home market,” Italian paytech vendor SIA will acquire First Frank Bisignano, chairman and CEO of White & Case as legal advisor and PWC as
completed the migration to Temenos’ following a lengthy selection process comments Nic Dreckmann, COO of Julius Data’s card processing businesses in parts First Data, adds: “This transaction aligns tax and accounting due diligence advisor.
WealthSuite platform at its subsidiaries in to find a new core banking solution Baer. of Central and Southeastern Europe for with our focus on portfolio management.
Hong Kong and Singapore. to harmonise the bank’s operations “Temenos’ WealthSuite is laying the €375 million. While these are solid businesses, aspects of ARRIVEDERCI
WealthSuite consists of Temenos’ flagship worldwide. Temenos beat rival Avaloq to operational and technical foundation In 2017, these businesses generated a their operations are no longer core to our In May, Arrighetti announced his
core banking system – T24 – at the back the deal at the final stage. for our growth in the region. After last combined revenue of approximately €100 strategy, and this sale allows us to deploy resignation for “personal reasons”. He will
office, and a range of front-end applications T24 replaced ERI’s Olympic core year’s integration of the T24 platform in million for First Data. the proceeds to create value in line with remain in office up to 15 June.
such as portfolio management (which stems banking system. Incidentally, ERI was Luxembourg, this is the second major step According to SIA, this acquisition our capital allocation priorities.” SIA said: “With regret, the chairman
from Odyssey Financial Technologies, a not part of the selection process at Julius in our effort to harmonise our IT landscape provides card processing, card production, First Data is focusing on its European and directors accepted the decision
wealthtech vendor acquired by Temenos in Baer. around the world.” call centre and back-office services, issuer processing business, “primarily” with taken by Dr. Arrighetti, and expressed to
2010), channels and analytics. “We are pleased with the go-live in Tanya Andreasyan including 13.3 million payment cards, its VisionPLUS platform. him their sincere thanks for the work he
1.4 billion transactions, in addition to the The agreement includes the transfer of has performed during the eight years of
management of POS terminals and ATMs. about 1,400 First Data employees into SIA. his tenure in office, a period which saw
Bank of England’s digital currency pushes ahead These businesses are primarily located
in seven countries: Greece, Croatia, Czech
Neither firms make it clear if this involves
redundancies.
SIA constantly grow in size to become a
leading player in Europe in infrastructures
The Bank of England (BoE) has unveiled Bank of England CBDC at commercial banks (“and therefore by Republic, Hungary, Romania, Serbia and The deal is expected to close in the third and innovative payment services.
a cunning plan for its central bank digital implication at the central bank”). Slovakia. quarter of 2018 and is subject to normal “During the same meeting, the board of
currency (CBDC) in its never-ending quest Finally, the central bank issues CBDC Massimo Arrighetti, CEO of SIA, says closing conditions. directors resolved to delegate the powers
for financial stability. only against eligible securities (principally it is “further strengthening its position Deutsche Bank and K&L Gates were to deputy CEO of the company, Nicola
In the bone-dry, 54-page “Staff Working government securities). in the e-payments international market, respectively financial advisors and counsel Cordone, who shall take them on at the
Paper No. 725, Central bank digital The bank makes it clear that the final two increasing its market shares in e-money to First Data on the transaction. time of Dr. Arrighetti’s departure.”
currencies – design principles and balance principles imply that households and firms high-growth countries”. HSBC acted as financial advisor to SIA, Antony Peyton
sheet implications”, BoE sets out to explain can freely trade bank deposits against CBDC
its desires and ambitions. in a private market, and that the private
While it does a lot of analysis, it says it the risk of a system-wide run from bank market can freely obtain additional CBDC
“does not currently plan to issue CBDC”. deposits to CBDC is addressed.” from the central bank, at the posted CBDC Temenos on M&A trail to grow US business
This paper is part of this research agenda. There are four core principles. interest rate and against eligible securities.
The bank states: “We find that if the CBDC pays an adjustable interest rate; That is pretty much it in a nutshell. The Temenos is keen to make it a success previously COO) at the start of this year. an external specialist as being fully US
introduction of CBDC follows a set of core and CBDC and reserves are distinct, and rest of the paper explains BoE’s plans and in the US, and is looking for more Mossman says the potential AML compliant, Mossman adds.
principles, bank funding is not necessarily not convertible into each other. principles, which we’ve just summarised, in acquisitions to complement its existing and fraud tech purchases will add There are currently two known takers of
reduced, credit and liquidity provision to Next, BoE says there is no guaranteed, on- a very Spock-like and logical manner. offering to the US market. to the vendor’s existing compliance T24 in the US: Ally Financial and Commerce
the private sector need not contract, and demand convertibility of bank deposits into Antony Peyton In an interview with Banking capability, which also came via an Bank.
Technology at the recent Temenos acquisition. Temenos bought Trinovus Ally Financial also signed for Temenos
Community Forum (TCF) in Dublin, Jay in 2013, which came with a portfolio of Payments Hub (TPH). The project at Ally
Mossman, chairman, the vendor’s North compliance products and 800+ users in is known to have experienced some
New holding firm Syncapay looks for paytech acquisitions America advisory board, says the areas of the community banking space. difficulties, but is progressing.
focus are anti-money laundering (AML), This portfolio continues to be At Commerce Bank, T24 will support
A number of venture capital firms She is also a long-standing board investments and support.” fraud and wealth management. For the developed and marketed, Mossman customer accounts and deposits.
have joined forces to launch Syncapay, member and audit committee chairman Its first acquisition – Swift Prepaid latter, trust accounting is especially of confirms, as well as Akcelerant’s own Mossman says deposits are “a sweet
a new holding company focused on of Cardtronics (the world’s largest ATM Services – was made late last year. interest, as it’s specific to the US. lifecycle solution (used by around 600 spot” for Temenos in the US. The bank
high-potential payments solutions. The owner/operator) and served as a board “Syncapay plans to acquire payments He adds that the opportunities are financial institutions in the US). “It is will be migrating from the legacy Trisyn
backing comes from Bain Capital Ventures, member of the Network Branded Prepaid companies with innovative or emerging ample for these areas as there are plenty actually exceeding our expectations,” he core system provided by US-based Infor.
Silversmith Capital Partners, MissionOG, Card Association (NBPCA). technology and solutions and leverage of interesting firms and products. notes. (Trisyn is a very old system – it was actually
and Nyca Partners. “The US payments industry continues the many synergies between them to Mossman himself joined Temenos as In the core banking space, Temenos sunsetted a number of years ago and now
Syncapay is based in Dallas, Texas. its rapid growth, but few opportunities accelerate growth,” the company explains. a result of an acquisition – his company, targets top 120 banks and credit has less than ten banks left still using it;
Industry veteran Juli Spottiswood is exist for high-potential companies to “The investment focus is on companies Akcelerant Software, was purchased by unions in the US (over $10 billion in among these was Zions, which has now
chairman and CEO. She co-founded leverage industry knowledge or shared that provide, facilitate or issue business-to- the banking tech vendor in 2015. He assets). Below that threshold, Temenos moved to TCS Bancs.)
Parago in the late 1990s, which focused on services and tackle the market together,” business (B2B) and business-to-consumer then became regional CEO for Temenos is “opportunistic”, Mossman says, i.e. Cognizant is assisting with the
consumer promotions and incentives tech. says Spottiswood. (B2C) payments in growth markets around in North America, and has recently it has to be a progressive, forward- implementation at Commerce Bank.
It was acquired by Blackhawk Network “The Syncapay vision is to build the world.” moved to the chairman role. looking financial institution to engage Mossman confirms the project is “fully
for $291 million in 2014, and Spottiswood a powerhouse portfolio of disruptor It intends to house an array of payments Emily Steele, who also comes from with Temenos for the T24 core banking on track” and in line with the original
continued with Backhawk Network until payment solutions that can accelerate brands that serve multiple needs. Akcelerant, was appointed president system. timelines that “have not been moved”.
2016. growth and success through our Tanya Andreasyan of Temenos North America (she was T24 has now been certified by Tanya Andreasyan
08 | www.bankingtech.com | June 2018 June 2018 | www.bankingtech.com | 09
NEWS
Central Bank of Sri Lanka readies New SME
fintech regulatory sandbox challenger bank
The payment and settlement department without the risk of infringing on regulatory preps for launch
of the Central Bank of Sri Lanka is looking requirements.
to set up a fintech regulatory sandbox. The regulator hopes it will help create
The bank says the rapid growth “robust and sustainable” innovations
of fintech innovations in the country resulting in more efficient financial
has created “the need to provide an intermediation, greater financial
environment that nurtures and promotes inclusion, and “a less-cash society through
their advancement whilst maintaining digitalisation”.
appropriate regulatory standards”. The central bank is calling on all
The objective of the sandbox initiative, relevant stakeholders involved in fintech
it adds, is “to encourage and enable innovations at entrepreneurial, academic,
fintech initiatives that promote efficiency investor, government, non-government
As sector experts we are constantly in touch with and increase access to financial products and multi-lateral agency levels, including
the best minds in the payments industry. and services”. banks, and non-bank financial institutions
The sandbox will provide “a safe space and incorporated entities to share their
in a controlled environment” for selected views on this initiative.
We take time to understand your requirements fully firms to test their products and services, Tanya Andreasyan
and take the pain out of your recruitment process.
Let us find you the right people to help drive your KBC in instant payments project
business forward.
with Temenos Jason Oakley, the former MD of Metro
Bank, is readying his new SME challenger
Belgium-based banking group KBC is Users of EBA’s instant payments system, bank to enter the extremely crowded UK
working with Temenos and its Temenos RT1, will be able to access the platform via market.
Payments Hub (TPH) to build instant SwiftNet Instant, Swift’s instant payments These are early days but Oakley says
payments functionality for its clients. The messaging solution, from November 2018. its SME banking licence application is
announcement was made at the Temenos “going well” and the new entity will be
Community Forum (TCF), the vendor’s HIGH AND LOW called Recognise.
annual event, held this year in Dublin, TPH is an evolution of Temenos Payments He says the name is designed to
Ireland. Solution (TPS), which was originally “reflect the lack of recognition and
KBC is already a client of Temenos, unveiled in 2012 as a joint development dedication to SMEs from the big banks”
with its flagship T24 core banking system between Temenos and ABN Amro. The and “no relationship, no contact, no
running at the group’s subsidiaries in Dutch bank uses the solution for high- recognition of the vital role they play in
Ireland and Bulgaria, and the roll-out value, low-volume payments in the our economy”.
underway in Hungary and Slovakia. All corporate banking space across a number It seems every new bank has to make
this is part of a group-wide technology of European locations. a sarcastic reference to the old order.
transformation at KBC. TPS/TPH is now being sold as a According to Oakley, who is currently
TPH will be rolled out across KBC’s standalone solution, competing with the the MD of Echo Financial Services, he
European network of subsidiaries in offerings from FIS, Finastra and Fiserv. took Metro’s commercial and mortgages
Bulgaria, Hungary, Ireland and Slovakia. Among the known takers are Ally lending business from £60 million to over
Belgium and Czech Republic are not in Financial in the US, and Citco, an £2.5 billion. He worked at Metro for three
the scope of this project. international group of independent years.
KBC is working with other financial service providers that specialises Oakley adds that Recognise aims to be
participating banks in Belgium and in corporate, fiduciary, financial and fund trading under restriction by the middle
Europe on instant payment capabilities. management services. of next year.
The go-live is planned for November The Citco project started in 2015 and He is also the founder and majority
2018, in line with the European also includes the implementation of T24. shareholder in Acorn to Oaks Financial
regulations around instant payments and The new payments hub is set to cover six Services Limited. This company was set
the relevant initiatives by pan-European countries. up in 2008 and offers financial advice.
industry bodies. Tanya Andreasyan Antony Peyton
June 2018 | www.bankingtech.com | 11
NEWS NEWS
Worldline to acquire SIX Payment Services for €2.3bn Danske Bank Spiir-ed into first fintech investment
Worldline has continued its million). It also gets €100 million Danske Bank has invested “millions” in Danish- automatically perform reconciliations with a Lars Malmberg, head of commercial
acquisition spree and will buy revenue from financial processing based budget app Spiir, thus becoming co- bank”. excellence in group development in Danske
Switzerland-based SIX Payment services to about 180 banks and owner of a fintech company for the first time. Dankse says the investment in Spiir Bank, says he sees a potential in Spiir’s work to
Services (SPS), a division of SIX, financial institutions, in particular According to the bank, more than “supplements” its work to meet the develop its platform, the Nordic API Gateway.
for €2.3 billion. to the Swiss banking community. 200,000 Danes use Spiir to manage their requirements of the new Payment Services In practice, this could mean Danke’s
The move is part of Worldline’s The transaction comprises a budget, monitor their spending and find Directive II (PSD2), which obligates banks to customers could view their accounts with
plan to strengthen its operations ten-year commercial contract with less expensive alternatives for their fixed make customers’ bank data available to third other banks, or if they have accounts with
in Europe. SIX will become a 27% SIX to deliver a range of processing expenses. parties. several banks, he says they will soon be able
shareholder of Worldline, with services to the Swiss banking With the investment, of which exact The bank explains that it is also a step to view these accounts in its new Danske
Atos retaining a majority stake of community. details were not disclosed, Danske says it now towards opening up more for partnerships Mobile Banking app.
51% in Worldline. In that context, Worldline has has access to Spiir’s technical platform, which and making it “simpler and more efficient for Spiir was founded in 2011 by Mai and
Thierry Breton, Atos chairman undertaken in a related transaction includes data retrieval from other Nordic our customers to manage their day-to-day Gudmundur Hreidarsson for the “purpose of
and CEO, Worldline chairman, to become a 20% shareholder in banks. finances”. making personal budgets both fun and easy
says this means it’s the “perfect long- billion. Closing is expected at the end of Q4 TWINT (the Swiss bank owned mobile and Rune Mai, CEO at Spiir, says: “With In April, it was reported that Sweden- to understand”. Good luck with that.
term payment partner for the European 2018, and a consolidation as of 1 January P2P payment scheme and solution) for a Danske Bank to back us, we now have the based start-up Minna Technologies’ personal The two founders are currently CEO
financial industry in these times of deep 2019. €25 million investment, alongside SIX and opportunity to accelerate the development of finance management (PFM) solution for and CTO in the company, respectively, in a
regulatory and digital transformations of SPS has done numerous cross-border other banking actors. both Spiir and Nordic API Gateway.” subscription management will be integrated business which consists of 15 employees and
the sector”. acquisitions in the past, such as Paylife in Last year, Worldline bought 100% of He adds, as an example, that consumers into Danske Bank’s mobile banking app later is backed by a number of private investors,
According to Worldline, the acquisition Austria in 2013, Cetrel in Luxembourg in the share capital of First Data’s fully owned benefit via this data deal – “imagine liquidity in 2018. But Danske says the investment in including entrepreneur Lars Kolind.
gives it a +30% group revenue increase, 2014, and in 2017 a subsidiary of VÖB-ZVD subsidiaries in Lithuania, Latvia, Estonia management or accounting solutions that Spiir “nevertheless stands out”. Antony Peyton
and a +65% increase in merchant services in Germany and Aduno, its competitor in (aka First Data Baltics or FDB) for around
business attaining over €1 billion annual Switzerland. €73 million, financed by available cash.
revenue. In addition, it makes it “number
one” for payment market positions in
According to SPS, it will have around
€530 million for its 2019 estimated net
Also in 2017, Worldline signed a
definitive agreement to acquire 100%
Nubi turns to Mambu for core banking tech
Switzerland, Austria, Luxembourg and a revenue, and currently 1,600 staff. There of the share capital of Stockholm-based Nubi, a company in Argentina linked to domestic SMEs and entrepreneurs who sell best fit as it has the flexibility, scalability,
“major reinforcement” in Germany. are no details on what will happen to these Digital River World Payments (DRWP), an Banco Comafi, has selected Mambu to services and products abroad to withdraw and innovation required for our next
The transaction is mostly paid in shares employees. online global payment service provider underpin its digital services, including international payments, and deposit them releases in the local market. Mambu
with a cash component of €0.28 billion In terms of more stats, 81% of SPS’s from Digital River. online processing of surcharges and in their local bank account, both in ARS supports our digital business strategy
valuing SPS at an enterprise value of €2.3 turnover is in merchant services (c. €430 Antony Peyton payments. The vendor will supply its and USD. in real time as part of our cloud-native,
cloud-based core banking system to “We strive to promote financial composable API-driven architecture.”
Nubi. inclusion and democratisation of electronic Mambu already has a handful of clients
Nubi provides businesses and commerce in Argentina,” states Martin in Argentina, including Wenance, Banco
Poland is world’s first for banking records on blockchain consumers with prepaid services for Borchardt, CEO of Nubi. Macro and Ualá.
international purchases and also enables “To do this, Mambu’s technology is the Tanya Andreasyan
Billon and the Polish Credit Office (Biuro the financial sector. Our solution will Billon says this would be “more than
Informacji Kredytowej – BIK), the largest soon be expanded to include electronic sufficient for even the largest institutions
credit bureau in Central and Eastern
Europe, will implement blockchain for
delivery with active confirmation and
remote signing of online agreements. It
to move to paperless customer service”.
The solution has been approved
Deutsche Bank to cut 7,000 jobs
storage and access to sensitive customer is also important that the solution meets following consultation with the Polish Deutsche Bank is axing more jobs with its “most significant clients globally”. In corporate and investment bank of over
information. legal requirements of a durable medium Office of Competition (UOKiK) and Data 7,000 people set to go from its equities prime finance, the bank says it will reduce €100 billion.
According to Billon, its blockchain of information, as well as the EU GDPR Protection Regulator (GIODO), making it sales and trading business. leverage exposure by a quarter, equivalent Deutsche Bank says it will accelerate
technology will benefit the bureau through requirements.” one of the “world’s first regtech compliant As reported in February, the bank said it to a reduction of approximately €50 billion. the pace of cost reduction across the
security, integrity and immutability of data. BIK is owned by various banks active blockchain solutions”. would cut up to 500 investment banking jobs. “We remain committed to our corporate organisation. In 2018, as it already
The GDPR compliant solution in Poland – including Pekao, ING, mBank, In April, Billon partnered with Igoria In the latest cull, its global headcount and investment bank and our international announced, the bank envisages adjusted
guarantees “total visibility, trackable Santander and Citi. It tracks nearly 140 Trade to let users make payments in 150 will fall from 97,000 to well below 90,000. presence – we are unwavering in that,” says costs not to exceed €23 billion.
history and full data integrity for any million credit histories of over one million currencies. There is no information on regions or Christian Sewing, Deutsche Bank’s chairman For 2019, the management board plans
client-facing document” including banking businesses and 24 million people. Igoria Trade will provide its IgoriaCard, breakdowns, but Deutsche Bank says of the management board. “We are Europe’s to reduce adjusted costs to €22 billion with
records, loan agreements, insurance claims, The BIK-Billon partnership saw eight which uses the Mastercard network to “associated personnel reductions are alternative in the international financing and “no further significant disposals currently
telephone bills and terms and conditions. Polish banks participating in trials, deliver an internet transaction system for underway”. capital markets business. However, we must planned”.
Mariusz Cholewa, president of BIK, says: which established that Billon’s scalable managing limits, payment history, and It aims to reduce headcount in concentrate on what we truly do well.” In its latest Q1 results the bank revealed
“Our cooperation with Billon is long-term. blockchain architecture could publish enabling currency exchange, in both a this equities sales and trading area by According to Deutsche Bank, these a net income of €120 million, versus €575
We believe that blockchain technology over 150 million documents every plastic and virtual form. approximately 25%. In cash equities, it will business reductions will contribute to million in the prior year period.
will transform client communications in month. Antony Peyton concentrate on electronic solutions and a decrease in leverage exposure in the Antony Peyton
12 | www.bankingtech.com | June 2018 June 2018 | www.bankingtech.com | 13
NEWS
Capital One buys digital identity start-up Confyrm
Capital One has acquired San Francisco- Confyrm was founded five years ago privacy-preserving identity alerts providing
based digital identity start-up Confyrm as it and offers help against online fraud. detection of digital identity risk. The
13 July 2018 seeks to capture the market for consumer According to Nash, identity systems are system works by providing notifications of
Silver Sturgeon | A 21st Century River Yacht identity services. becoming more and more complex as they suspicious account activity with providers
Financial details were not disclosed, are progressively more distributed, federated across the ecosystem.
but as part of the deal Andrew Nash, and outsourced. He says digital identity Nash has previously worked as director
ALIGN YOUR BRAND WITH founder and CEO of Confyrm, has become systems are becoming core to trusted online of technologies at RSA Security, and
EXCELLENCE AND INNOVATION managing vice-president of Capital One’s
consumer identity services. No word on
transactions for governments, companies and
consumers alike.
served on the boards of the Open ID
Foundation, Open Identity eXchange, and
what happens to the rest of the staff. Confyrm works by sharing security the Information Card Foundation.
EXPLORE SPONSORSHIP OPPORTUNITIES Nash says: “Start-ups are formed for alerts using “privacy enhancing” Capital One is staying active in the
WITH PAYTECH AWARDS 2018 many reasons – sometimes it is because
there is a challenge that needs to be
distribution methods to “increase safety
while avoiding impacting privacy or brand
fintech space. Back in March, it was
reported that Amazon was talking to JP
tackled, and it requires a scrappy little trust”. Morgan Chase and Capital One about a
start-up to prove that we can make a The firm offers its Confyrm Event checking account-like product.
Take a step further and raise your brand’s awareness with PayTech Awards! difference.” Warning System, a platform of shared Antony Peyton
A great opportunity to make headlines and position your brand in front of
industry leaders:
Deutsche Bank buys Indian start-up Quantiguous
Access an engaged audience of the senior executives in the paytech community
Deutsche Bank has acquired Quantiguous Bank’s transaction banking platforms and out of the transaction bank’s global API
Benefit from our extensive marketing programme Solutions, a Mumbai-based software services. programme.
company, as it seeks to strengthen its John Gibbons, Deutsche Bank’s head The bank and Quantiguous didn’t
Network with the most influential names in the industry transaction banking franchise. of global transaction banking, says: “The disclose the value of the transaction.
With the help of Quantiguous, injection of this high-quality talent pool In a separate development, Deutsche
Present the award category of your choice and hand over the trophy to the bank says it will accelerate the from Quantiguous into the bank’s digital Bank recently teamed up with the
a deserving winner development of its open banking franchise will help us go to market faster.” International Air Transport Association
platform that forms the core for As part of the acquisition, Deutsche (IATA), the trade association for the world’s
developing client applications and Bank will take over all employees of airlines, to test “a disruptive new payment
connecting corporate clients, fintech Quantiguous, who will join the core team model” (see p18).
As a sponsor, you will benefit from: firms and partner companies to Deutsche responsible for the development and roll- Antony Peyton
Official awards sponsor status
Mention on marketing collateral promoting the awards before and Virgin Money gets £1.6bn takeover offer from CYBG
after the event The UK’s Clydesdale Bank and Yorkshire and SME customers a genuine alternative the second half of this year.
Bank (CYBG) has made a takeover bid for to the large incumbent banks”. In addition, 10x Future Technologies,
Branding on the website along with a dedicated sponsor page
Virgin Money, valuing it at £1.6 billon. Both of them make a lot of noise about the start-up founded by former Barclays
Your logo on invitations sent out to attendees If the deal goes ahead, the combined being “challenger banks”, yet Virgin Money CEO Antony Jenkins, is building the bank’s
entity will have six million personal and was founded in 1995. It expanded in 2011 core banking platform.
Branding at the awards evening including ceremony backdrop screen business customers and a balance sheet of when it bought the remnants of Northern CYBG has been a long-standing user
and event signage between £60 billion and £70 billion. Rock for £747 million. of Misys’ (now Finastra) Equation core
CYBG says it will keep the Virgin Money In turn, CYBG is a holding company that banking system.
brand, subject to an agreement with owns Clydesdale Bank, Yorkshire Bank and There is no word yet on what will
Richard Branson’s Virgin Group. the app-based bank B. It was formed by happen to these two different platforms.
Virgin Money has confirmed the National Australia Bank in February 2016. By the way, the UK’s Financial Conduct
WWW.BANKINGTECH.COM/PAYTECHAWARDS preliminary approach and its board is “in On the day of the announcement, Virgin Authority (FCA) was looking into a 15%
the process of reviewing this proposal”. It Money’s share price rose by 7.7% to 336.6 increase in the value of Virgin Money’s
Get in touch to find out more about the sponsorship opportunities adds that there is “no certainty” a formal pence while shares in CYBG 1% to 321.4 shares, which rose from 271 pence on 27
offer will be made. pence. April, to close at 312.4 pence on 4 May.
or to book your seat at the event: CYBG says the two combined As reported in February, Virgin Money The FCA said at the time: “We don’t
Alec Gost businesses “would create the UK’s leading was moving closer to the launch of its comment on specific cases.”
challenger bank offering both personal digital bank with beta testing expected in Antony Peyton
e: alec.gost@knect365.com, t: +44 (0)207 017 6122
#PayTechAwards June 2018 | www.bankingtech.com | 15
NEWS
M A G A Z I N E
Volt Bank powers up Down Under
Sydney-based Volt Bank has been given
Australia’s first new restricted banking
example, it is recruiting staff and is calling
for investors.
For instance, Weston worked at Barclays,
while Bunbury was group service executive
Attending Sibos in Sydney?
licence and is now working towards It doesn’t go into a lot of specifics on for St. George Bank.
becoming a fully licensed bank. its website, just the usual stuff about By the way, in a separate development,
Volt joins Xinja and Judo Capital as “using the latest technology, we’re here to in May, the 2018-19 Australian budget gave
they all prepare to take on the big four of challenge the way banking is done!”. fintech a boost.
ANZ, CBA, NAB and Westpac. This is all part However, for its core banking system, The nation’s government plans to
of the Australian Prudential Regulation Volt has selected Temenos’ T24. introduce open banking reforms from
Authority’s ambition to open up the nation The bank was founded by Steve Weston mid-next year. There were also funding
to more innovation and competition. (CEO) and Luke Bunbury (deputy CEO), measures for blockchain, artificial
Right now, the bank says it is “mobile who have both worked in banking and intelligence (AI) and machine learning.
first” and is in the early stages of its life. For financial services. Antony Peyton
Indian lending start-up Finwego preps for launch
Chennai-based lendtech start-up Finwego working for its employer partners. This crunches a variety of employment
has won an innovation challenge and is The company explains: “Millions of related data such as length of employment,
readying for launch. lower-middle class customers working time-in/time-out attendance data, leave
Shiv Vadivelalagan, co-founder and CEO for small and medium businesses don’t pattern, salary increments, bonus payouts
of Finwego, says: “After four fulfilling years have a decent option for short-term credit and other performance related variables to
in the US, I’ll be moving back to where I despite a stable job and a regular salary. create a picture of the individual.
belong – India – to build a fintech venture, To solve this problem, Finwego partners The firm is still in the hiring phase – such
backed by Harvard Innovation Lab.” with small and medium businesses and as looking for a loan operations officer.
The firm has got some momentum uses employment data to underwrite Pavee Ramanisankar is the other co-
as it has just won a $25,000 award at the short-term credit for their employees.” founder and a “serial entrepreneur” who
Harvard President Innovation Challenge. Loan applications are made online and has owned companies in manufacturing
It was chosen from a “whooping” (maybe the firm accesses employment data from and education.
they were noisy, but he probably means the employer. Finwego says all data and Vadivelalagan has around eight years of
‘whopping’) 430 applications from across
all nine Harvard schools.
documents are taken directly from the
employer.
experience in payments, microfinance and
consumer lending.
Make your
Lending firms are rapidly springing up
all over India (and the rest of the world) as
It charges a 2% processing fee on all
loans and its interest rates range from
Finwego is the consumer brand of
Meitrail Financial Services. The latter is an
voice heard!
bright minds scent money to be made. 18% to 24%. unlisted private company incorporated on
Finwego joins this heaving throng and Finwego says these interest rates are 9 March 2018. The registered office of the Explore digital and print opportunities
acts as a “financial access platform” that entirely based on its artificial intelligence company is also in Chennai. with Daily News at Sibos,
provides personal loans to employees (AI) powered algorithm. Antony Peyton the conference’s flagship and
only daily publication:
Blockchain firm Zonafide shuts down › Interviews and Q&As
UK-based blockchain company Zonafide and we cannot afford to wait.” updating personal details with a bank. › Analysis and thought leadership
shut down in May due to ICO costs and the As reported in February, European IT Ivo Luijendijk, group industry director data › Videos
See you
unexpected freeze of a major deal. services company Atos turned to Zonafide to analytics, IOT and blockchain at Atos, said in
› News and announcements
down
On Twitter the firm said: “A major help combat identity theft and cybercrime. February: “Discussions with Zonafide have
engagement we had expected was put The deal would have seen Atos assist their been greatly appreciated by our clients and › Advertising
under
on hold. With the ICO costs the company clients in the use of Zonafide’s blockchain- we have already identified a prospect. I think › Sponsorship
became insolvent and our personal resources based technology in “processing life events this will be a fruitful partnership for both Atos
were expired. Very sad.” such as marriage and deaths”. Atos’ clients and Zonafide.” › And more!
Banking Technology contacted span a lot of industries and sectors, including Zonafide was founded in 2014. Paul
Zonafide to see if this was a reference to £3 billion of UK Government contracts. Worrall, its founder, is also the founder of
the Atos deal. It replied: “Yes, we had an At that time, Zonafide said its mobile Interition, a semantic web technology firm for
engagement with a client that used Atos app helps prevent fraud and cybercrime by enterprise software.
for BPO. That client has delayed the project securing activities – such as payments or Antony Peyton
16 | www.bankingtech.com | June 2018
Contact Alec Gost
Tel: +44 207 017 6122 | Email: alec.gost@knect365.comYou can also read
