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Cambridge Centre for Alternative Finance Annual Conference 29 September 2016 MAPPING THE LANDSCAPE OF ALTERNATIVE FINANCE Conference Programme Contents 1 Welcome 2 About the conference organisers 4 Conference agenda 6 Session biographies: Session 1 biographies The Evolution and Development of Online Channels of Finance 8 in Global Regions Session 2 biographies Investment and Credit Analytics Using New Forms of Data 10 Session 3 biographies Cryptocurrency and Blockchain Technology 12 Session 4 biographies Regulation and Policy, Panel Discussion 14 Information for conference attendees 16 Map of the local area 17 Downing College, Howard building 18 Downing College, Howard theatre and Grace Howard room 19 2 Welcome Welcome 3 We are delighted to welcome you to the Cambridge Centre for Alternative Finance Session 3, Cryptocurrency and Blockchain Technology, chaired by Professor David Yermack, (CCAF) Inaugural Annual Conference Mapping the Landscape of Alternative Finance will explore some of the motivations, opportunities and obstacles for public sector which brings together industry leaders, academics and regulators from around the institutions interested in distributed ledger technology (DLT). The presenters will also world. examine the many interesting areas beyond payments where distributed ledgers are already being employed and will conclude by exploring the question of timing. The first of its kind, this conference will focus on the continuously evolving global alternative finance landscape and will highlight several milestones for the CCAF: In Session 4, Regulation and Policy, Baroness Susan Kramer will chair a stimulating and lively panel discussion exploring regulatory development in alternative finance across various • This is the first in a planned series of annual conferences and we are proud to highlight a geographical jurisdictions. Ultimately trying to answer: to what extent can regulation and diverse global attendee mix and a strong line up of expert speakers. policy making be a hindrance or a catalyst in the advancement of alternative finance in • The conference will provide a platform to discuss prominent research themes relating to the countries or regions? evolution of the alternative finance landscape and to disseminate the results from the first of its kind, global benchmarking study. We would like to thank CME Group Foundation and Visa Europe Collab for their financial support of the conference and the Centre’s research. • This conference capitalises on both industry and academic knowledge, presenting a hybrid programme designed to enable top-level learning, engagement, and exploration of one of the most rapidly growing sectors of the global financial industry. Robert Wardrop Executive Director The 2016 conference theme, Mapping the Landscape of Alternative Finance, reflects the Cambridge Centre for Alternative Finance evolutionary state and growing global impact of a fascinating industry. The conference gives us the chance to push the boundaries of academic research, scope research areas, define Raghavendra (Raghu) Rau concepts, hone methodologies and establish working taxonomies whilst we collaboratively Sir Evelyn de Rothschild Professor of Finance begin to map the industry’s growth trajectory. Cambridge Judge Business School Director (Research) The conference is structured around four sessions, three of which focus on the CCAF’s main Cambridge Centre for Alternative Finance research streams – Online Channels, Credit Analytics and Payment Systems – whilst the fourth looks at Regulation and Policy. In Session 1, The Evolution and Development of Online Channels Bryan Zheng Zhang of Finance in Global Regions, the presenters and discussant Professor Thorsten Beck will Director (Policy and Operations) make sense of the evolving and fluid landscape of alternative finance as depicted by our Cambridge Centre for Alternative Finance empirical studies. They will aim to identify, scope and map the patterns of development and the emerging market trends to explore the fundamental drivers that propel the growth of alternative finance, as well as to elucidate some of the barriers and challenges for growth and the potential pitfalls. Investment and Credit Analytics Using New Forms of Data, Session 2, discusses research using new forms of data being explored by researchers that have relevance for the world of finance. This time the presenters and discussant, Associate Professor Rajkamal Iyer, will explore: the digitalization of social and commercial engagement that is producing new forms of data, some of which offers finance providers the opportunity to increase the predictive power of investment and credit analytics. 4 About the conference organisers 5 Since 1990, Cambridge Judge Business School has forged a reputation as a centre of The CCAF has unparalleled capacity and reputation in the field of alternative finance, rigorous thinking and high-impact transformative education. Situated within one of the evidenced by the depth and breadth of its data depository, and its policy and media world’s most prestigious research universities, it is in the heart of the Cambridge Cluster, the impact: most successful technology entrepreneurship cluster in Europe. I. Data The CCAF has the world’s largest data depository in alternative finance, with The School works with every student and organisation at a deep level, identifying important market data gathered from 1,200 + alternative finance platforms from across the problems and questions, challenging and coaching people to find answers, and creating Asia-Pacific region, the Americas, Europe, Africa and the Middle East. The Centre has new knowledge. also collected survey data from over 15,600 users of alternative finance and a granular- level transactional database of 25 million micro-transactions totalling £1.2 billion. The Cambridge Centre for Alternative Finance (CCAF) is a research institute established II. Policy Impact The CCAF has engaged and is widely cited by a plethora of regulators within Cambridge Judge Business School, University of Cambridge. and policymakers including: the FCA, HMT, the European Commission, the World Bank, IDB, Bank of England, Hong Kong Monetary Authority, Singapore Monetary Authority, The CCAF conducts research across three broad, yet interconnected, research streams: Malaysia Securities Commission, DFID-FSD, Kenya CMA, Uganda CMA, Rwanda CMA, Tanzania CMA, British Business Bank, BIS and the Cabinet Office. I. Online Channels and Instruments including crowdfunding and peer-to-peer lending III. Press and Media The CCAF has been extensively covered in the media, including: the II. Credit Analytics and new forms of data analytics to inform credit decision-making Financial Times, Reuters, BBC, CNBC, The Economist, The Guardian, Bloomberg, The III. Payments Systems and distributed ledger technology Times, The Independent, City A.M., Wired, Le Monde, Les Echos, Forbes, Der Spiegel, the Daily Telegraph and the Sunday Times. CCAF is an internationally renowned centre of excellence, noted for its pioneering research in alternative finance. CCAF’s benchmarking and industry reports are widely recognised as For information about the Cambridge Centre for Alternative Finance and the the most reliable, independent and comprehensive sources of information and market data opportunities to collaborate in its research programmes, please contact: in crowdfunding, peer-to-peer lending and other forms of alternative finance. Robert Wardrop Executive Director, Cambridge Centre for Alternative Finance CCAF’s research is made freely available to policymakers, regulators, industry practitioners, [email protected] academia and the wider public via the CCAF website: www.jbs.cam.uk/ccaf Since its inception in January 2015, the CCAF’s funding has come from corporate donations, sponsored work, and contract work. We are an academic institute within the University of Cambridge and adhere to the principle of academic independence, while following stringent research ethic guidelines. 6 Conference agenda Conference agenda 7 08:30 Registration and arrival refreshments 15:30 Session 4: Regulation and Policy Panel discussion 09:00 Welcome Chair: Session 1: The Evolution and Development of Online Channels of Finance in Baroness Kramer House of Lords Global Regions Panellists: 09:30 Rolf Hickmann Research Fellow Cambridge Centre of Alternative Finance, Cambridge Vladimir Ivanov Senior Financial Economist, US Securities and Exchange Commission Judge Business School, University of Cambridge and Founder pH Group Dr Julie Maupin Senior Research Fellow, Max Planck Institute for Comparative Public Law 09:45 Professor Giancarlo Giudici Associate Professor Corporate of Finance, and International Law; and Senior Fellow, Centre for International Governance Innovation Politecnico di Milano Aki Kallio Ministerial Advisor, Financial Markets Department, Ministry of Finance, Finland 10:00 Professor Raghavendra Rau Sir Evelyn de Rothschild Professor of Finance and Director (Research) Cambridge Centre for Alternative Finance, Cambridge Judge Business School, 16:30 Q&A University of Cambridge 17:00 Closing session 10:15 Discussant: Professor Thorsten Beck Professor of Banking and Finance, CASS Business School City, University of London 17:30 Post conference drinks reception 18:30 Event ends 10:30 Q&A 11:00 Mid-morning break Session 2: Investment and Credit Analytics Using New Forms of Data 11:15 Dr Jeremy Sosabowski CEO AlgoDynamix 11:30 Desislava Hristova PhD Candidate, Computer Laboratory, University