The most significant news, events and trends of Q2: Fintech recap 2017

By Alex Hammond | 1 December 2017

Over the next month we will be looking back at fintech in 2017 from every angle, in order to determine the most significant developments in the industry during that time.

To kick off bobsguide’s review of the last 12 months in fintech we have recapped the biggest breaking news, deals, people moves, and themes we covered this year.  

In this article we look at the announcements and developments that turned most heads in Q2.

April

One of the biggest announcements of the year in the UK financial services landscape was the decision of the Competition and Markets Authority to accept undertakings offered by Mastercard to address competition concerns arising from its purchase of VocaLink.

The package of measures offered by Mastercard and VocaLink consisted of VocaLink making its existing network connectivity available to a new supplier of infrastructure services to LINK, VocaLink transferring to LINK the intellectual property rights relating to the LINK LIS5 messaging standard, which members of the network use to communicate when customers use cash machines, and Mastercard contributing to the cost to LINK members of changing to a new supplier of infrastructure services to LINK.

The biggest fintech industry event of the month took place in London, as leaders from the world of financial services joined evolutionary tech companies and expert commentators on the future of banking at Innovate Finance 2017. Key discussion points from the show included an evolution in digitising identity and payments, a commitment from every corner of the financial community to do a better job of improving global financial inclusion concerns, and that blockchain most likely will be hugely disruptive in financial services, but that this is further away than much of the conversation currently suggests.

We also published our key takeaways from the Merchant Risk Council London 2017.

In April bobsguide also published its 10 blockchain start-ups to watch in 2017.

Discussions on bobsguide in April focused on the evolution of the cybersecurity space and the future of financial services on the high street.

On the cybersecurity front, Peter Cohen, Strategic Director for Countercept at MWR InfoSecurity spoke to bobsguide about the latest attempt to get ahead of the cyber threat, threat hunting, where financial services actively trawl their own systems hunting for anomalies that indicate the digital infrastructure has been breached.

Auriga’s Mark Aldred and Suntec’s Amit Dua were two advocates of the argument that the digitisation of financial services won’t necessitate the demise of banking services on the high street. Aldred stated that “the digital age might not kill off the bank branch”, whilst Dua went one step further, claiming that digitisation might actually save banking on the high street.

Other significant announcements this month included:

UK financial services firms fear up to 40% of revenue at risk from fintech

Almost half of UK consumers aiming to switch banks amid customer service fears, GMC Software research shows

BlackRock Nominates Chuck Robbins to Board of Directors

StatPro to acquire UBS Delta

CFA Institute Study Reveals Leaders Must Transform if Investment Industry is to Thrive

Broadridge, J.P. Morgan, Northern Trust and Banco Santander Successfully Complete Pilot of Blockchain-Based Proxy Vote Solution

Fenergo Appoints HSBC Veteran to the Board of Directors as Vice Chairman

LexisNexis® Risk Solutions Announces FCA Authorisation

Citi Finds Shift Away from Cash by Underbanked Could Save Developed Economies $30 Billion

May

Perhaps the most notable people move announcement in May came from Broadridge, where it was revealed that that Eric Bernstein would take the reins as President of Broadridge Investment Management Solutions.

Later in the year bobsguide sat down for an exclusive interview with Eric to discuss his vision for the future of asset management, the themes can keep occurring during his conversations with asset managers about their satisfaction with the technology they use, and how the solution to MiFID II compliance is self-evident for those who have studied their financial services regulation history.

Another major announcement came from AEVI, as Nelson Holzner was appointed as the provider’s new CEO. Holzner was interviewed by bobsguide shortly after taking the role, and spoke in depth about the change PSD2 will bring, and how AEVI will fit into the post-PSD2 landscape.

Another bobsguide highlight in May was our feature interview with Tony McLaughlin, Managing Director at Citi’s Treasury and Trade Solutions and Nick Pedersen, Managing Director, EQ Global, examining the power partnership between fintechs and banks and the future of fintech particularly in the international payments space.

In the M&A sphere, following CMA approval in April the Vocalink acquisition by Mastercard officially completed.

Questions were also asked if following 100 days of President Trump, were there signs that financial services should prepare for post-regulation?

Other significant announcements this month included:

Worldpay Becomes First U.S. Payment Processor to Offer Quick Chip Technology for Chip Card Transactions

Pelican introduces Trade Based Money Laundering detection and prevention solution

HSBC Deploys Fenergo Client Lifecycle Management Platform

Banks’ Anti-Money Laundering divisions wasting nearly £3bn a year chasing false leads

Deloitte developthe power of partnship s Blockchain proof-of-concept to mutualize KYC checks

KPMG acquires Fintech matchmaker, Matchi

Deutsche Börse expands offering for start-ups

Samsung Pay goes live in UK with Mastercard

Goldman Sachs makes investment in Information Builders

June

In June one of the industry’s most significant conferences, Money20/20 Europe took place in Copenhagen, Denmark.

Payments industry experts from every corner of the globe gathered to discuss the future of money, including digital banking, biometrics, and eWallets. But of course, with implementation now only six months away, the overwhelmingly most popular discussion topic at the show was the compliance practicalities and future impact of PSD2.

How banks should be reacting to PSD2 sat atop the agenda, as well as the EC’s PSD2 RTS. Whilst there was some inevitable doom and gloom in the room, primarily from banking incumbents who were miffed about having to fork out budget on compliance which they believed would enable disruptors to take ownership of their customers and effectively eat their lunch, there was at least an equal level of optimism that banks should look to the positive opportunities that PSD2 offers them, especially in the form of becoming third party providers to their competitors customers in their own right.

bobsguide also added its voice to the PSD2 conversation at Money20/20. In conjunction with sister brand PaymentEye we published our annual print magazine Payment [R]Evolution in which we discussed claims that PSD2 would be the biggest shake-up in banking for 600 years.

Also in June bobsguide published the first in its series of Bob’s guide to… features. In order to ascertain a greater insight of the attitude to fintech on the front line, bobsguide surveyed our community, asking members about their current level of satisfaction in regards to the technology they employ and their priorities when researching new technology in the market.

The first in-depth study we published was Bob’s guide to treasury management systems, which is still available to be viewed today.   

Using feedback from the bobsguide community, in this guide we answer the questions: How to tell if it’s time to invest in a TMS, How to ensure your TMS is a perfect fit, How to avoid disruption during TMS implementation, and How financial professionals can prepare for GDPR.

The Misys and D+H merger also completed in June.

Other significant announcements this month included:

J.P. Morgan Asset Management Appoints Joanna Gallegos Head of U.S. ETFs

BNY Mellon Appoints Bridget E. Engle Senior Executive Vice President and Chief Information Officer

Investment banking research departments face potential losses of up to USD 240 million by 2020

Oracle and TAS Group Team Up to Deliver State of the Art Card Solutions on Oracle’s Digital Innovation Platform

Mastercard launches several new APIs for developers

BlackRock to Acquire Cachematrix

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