FinTech and the Regulators
The advent of e-money licenses has been seized upon by a number of fast-growing Fintechs, who aim to disrupt existing retail and commercial financial service providers, and in particular banks, in the same way the internet has challenged many ‘bricks-and-mortar’ retailers.
The ultimate Fintech may be Facebook’s proposed Libra global cryptocurrency. However, there are several key regulatory obstacles, such as data protection and AML. The collapse of one of the pre-eminent European Fintechs, Wirecard, has further highlighted the risks and regulatory issues. This course explains which areas of business the Fintechs are targeting, how the regulators’ approach is critical, the opportunities and obstacles and how the incumbents are responding.
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By the end of the course, participants will understand:
Which business areas the challengers are targeting
How they aim to do this
The various regulatory aspects involved
Their various business models
The viability of their approaches
How much impact they are having
How incumbents are responding
Introduction: what is a Fintech
The key components of the standard banking business model
Peer-to-peer platforms and the challenges the model faces, e.g. Zopa
E-money licenses and Payments services, e.g. Venmo
FX payments – e.g. Transferwise, Revolut
Facebook’s Libra and the regulatory challenges it faces
Internet-only banks – e.g. N26 v Metro Bank
How incumbents are fighting back
The course describes the various Fintech areas and also includes a number of case studies of current Fintechs. With each the aim is to facilitate discussion on the various attributes of the different offerings in order to assess how significant they may be.
This programme may be approved for up to 5 CPD units in Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies where you hold membership.
Who should attend
The course will provide essential knowledge for anyone involved in retail and commercial financial services, including regulators.
Who is Michael Stafferton?
Michael began his financial markets career in 1986 on the Financial Engineering desk at Yamaichi International, then one of the so-called ‘Big Four’ Japanese securities houses. The desk was mainly responsible for designing, structuring and swapping vanilla and structured bond issues for European clients. He then moved to a coverage role, predominantly in the UK and Eire, with responsibility for some of the more technically demanding clients, including the Bank of England and the European Investment Bank. He greatly expanded the volume of deals done, including a government, major banks, building societies and corporates. The role also involved working on UK privatisations and with the bank and fund management arm. In 1994 he moved to Kleinwort Benson with responsibility for debt, convertible and tax-structured origination with a number of top UK companies and helped launch an FRN. He has been training across a wide spectrum of cash instruments, derivatives, commodities and in risk management and regulation since 1999, at up to senior management level globally, his clients comprising mainly the top tier investment banks and fund managers, and is the author of a textbook on credit derivatives (Credit Derivatives Workbook, Euromoney, 2004).
CPDs - 5