SALZBURG GLOBAL FINANCE FORUM FINANCIAL SERVICES IN THE 2020s: TECTONIC SHIFTS AND NEW LANDSCAPES SALZBURG GLOBAL SEMINAR IS GRATEFUL TO THE FOLLOWING ORGANIZATIONS FOR THEIR SUPPORT OF THIS PROGRAM:

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FINANCIAL SERVICES IN THE 2020s: TECTONIC SHIFTS AND NEW LANDSCAPES

JUNE 23 TO 25, 2019 Session 621

RAPPORTEUR PROGRAM DIRECTOR PROGRAM MANAGER Silke Finken Tatsiana Lintouskaya Antonio Riolino

EDITOR Louise Hallman PHOTOS Ela Grieshaber COVER IMAGE Tatsiana Lintouskaya 4 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

CONTENTS

5 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

6 Executive Summary 6 Social and Technological Developments Are Key Drivers Of Global Change and Emerging Risks 7 ESG Aspects Have Increasing Importance for the Entire Financial System 9 Technology and Digitalization Give Rise to New Business Models 11 In the Face of Open Banking, Data Protection and Privacy Become Pivotal 11 Open Architecture Requires Move Toward More Activity-based Regulation 12 Stronger Principles for Global Financial Governance Are Needed

16 Program Participants

18 Staff and Consultants Introduction 5

FINANCIAL SERVICES IN THE 2020s: TECTONIC SHIFTS AND NEW LANDSCAPES

The geopolitical landscape and the global economy are going through tectonic shifts with the pace of global growth becoming less vigorous and balanced. Growing polarization and protectionist tendencies give rise to continuous economic, political and financial fragmentation. The increasing importance of environmental threats as a result of climate change and their potential impact on the long-term economic and financial stability lead to a growing relevance of sustainable finance and extensive and consistent environmental, social and governance (ESG)-related disclosure.

Additionally, the rise of new technologies, the increased Forum – Financial Services in the 2020s: Tectonic Shifts maturity of players like fintechs, and the entrance of large, and New Landscapes – brought together stakeholders from established technology companies into financial services different financial institutions, regulators, and policymakers are transforming the financial system from a centralized around the world to discuss how new global trends and framework into an open architecture. Emerging platforms emerging risks are both impacting and challenging society and fundamental changes in the distribution mechanism of and financial markets, and what consequences they imply financial services result in a range of activities being offered for policy, regulation, and practitioners. outside of the core jurisdiction of banking regulators and The following report is an executive summary of the create new regulatory challenges regarding contextual discussions from the two-day session (June 23-25, 2019) at finance, privacy, and data protection. Schloss Leopoldskron in Salzburg, concluding with a list of The ninth session of the Salzburg Global Finance all participants in attendance. 6 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

EXECUTIVE SUMMARY SOCIAL AND TECHNOLOGICAL especially regarding risks shifting to non-bank finance. DEVELOPMENTS ARE KEY The proliferation of alternative finance as well as non-bank providers of financial services is partly driven by the enabling DRIVERS OF GLOBAL CHANGE role of technological development, but can also be attributed AND EMERGING RISKS to an increasingly pronounced disillusionment with and an erosion of confidence in conventional finance after the Geopolitical risks and social as well as technological financial crisis. This deterioration of trust is not only evident developments have become more complex in recent years, between citizens and traditional financial service providers, affecting economic structures and producing a higher but also between regulators and financial service providers degree of uncertainty under which regulators and market and is affecting communication and interaction between participants have to operate. Ten years after the financial the involved parties. crisis, its legacy is still being felt, as it has become one of This decline in cross-party communication and the catalysts of backlash against liberal democracy and interaction also raises challenges regarding the capability of globalization, amplified by an increasing income inequality.1 regulators and market participants to efficiently respond to Growing polarization and protectionist tendencies market shocks. Global debt has risen significantly over the on a global level are an indication that the benefits of past ten years, while at the same time low interest rates have international integration and coordination have not been formed a number of asset bubbles. As banks are currently shared by all social strata and all countries. Trade tensions able to play only a limited role as shock absorbers regarding between major economies and populist movements in a liquidity and the pricing of market risk, the consequences number of countries reflect a growing discontentment with of a new crisis could be even more severe than that of a existing global cooperation frameworks and the associated decade ago. institutions, giving rise to continuous economic and With the continuously rising power of Asian economies political fragmentation. Trust in governments and political – especially China – new challenges arise and exacerbate institutions is eroding also, putting the financial system at current tensions. On a political and societal level, an increasing risk of fragmentation. fundamentally different stances become evident regarding Additionally, in many emerging countries, financial privacy and data protection, which become pivotal in an inclusion is still limited with significant portions of the increasingly digitalized world with a growing influence of population lacking proper access to finance and financial automation and artificial intelligence (AI). Demographic advice. While technological developments and mobile developments, especially in aging economies, require stable penetration provide a variety of opportunities to participate and well-developed financial markets, which are still not of in the economic value creation, growing automation and an adequate size and depth in a number of affected countries. digitization will pose severe societal challenges, especially in The astounding penetration of technology in financial countries with a high labor participation in manufacturing services in China also poses challenges for the financial in the long run. community and regulators alike. With predominately The financial system has become more resilient US and Chinese platforms currently combining content, from a regulatory standpoint, however, concerns arise retail, and financial offers, the financial services industry is beginning to become more and more contextual, resulting in a range of activities seemingly being offered outside of the jurisdiction of bank regulators. Another fundamental risk is 1 Especially in the US, income inequality has been rising more than in most other large countries based on GINI coefficient analysis. fueled by the growing economic activity in Asian countries: The potential severe and adverse consequences of climate change that will affect Asian economies strongly due to the DISCLAIMER sheer size of their population. The threat of climate change The executive summary reflects the author’s view of the also needs to be approached and managed more actively in overall discussion during the program and should not be these regions due to the enormous impact these economies attributed to individual participants. may have on mitigating the ensuing risks. Executive Summary 7

ESG ASPECTS HAVE INCREASING environmental threats due to climate change is particularly IMPORTANCE FOR THE ENTIRE evident, as shown in the 2019 Global Risks Report by the 4 FINANCIAL SYSTEM World Economic Forum (WEF) . Climate-related risks threaten the larger private sector Undoubtedly, environmental, social, and governance (ESG) as well as financial systems. First, the potentially disastrous aspects are becoming critical considerations for investment consequences of climate change are highly correlated on a decisions and the redirection of capital flows. While global scale and hence by nature difficult to hedge. Extreme estimates of the size of the sustainable finance market vary weather conditions often lead to physical risks such as significantly – according to J.P. Morgan2, investments where damage to infrastructure and disruptions of production ESG factors are systematically and actively incorporated and supply chains, which in turn translate into negative are estimated at US$2.5 trillion, compared to the US$30.7 shocks to productivity. Second, transition risks such as trillion in global sustainable investment assets reported regulatory changes affecting resource prices and taxation, by the Global Sustainable Investment Alliance (GSIA)3 – changes in dominant technology, or even changing customer interest the market is growing. The increasing importance of preferences and behavior can have a structural impact on the private sector and financial system in turn. Due to its significance, sustainable finance will

2 Elders, G. (2019). J.P. Morgan Perspectives: ESG Investing 2019: become a key element in ensuring the long-term stability Climate changes everything (Rep.). J.P.Morgan. 3 Arai, M., Lanz, D., O’Connor, S., Oulton, W., & Woll, L. (2018). Global Sustainable Investment Review 2018 (Rep.). Global Sustainable 4 Collins, A. (2019). The Global Risks Report 2019 (Rep.). Geneva, Investment Alliance. Switzerland: World Economic Forum. 8 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

and competitiveness of the global economy. While its instruments. To foster sustainable investments more importance has been recognized by the financial sector as dynamic and up-to-date data is necessary, including a better well as regulators, the high number of different ratings and taxonomy as to which economic activities contribute to the standards, and the resulting lack of common definitions, transition to a greener economy and which, on the other still impede the investability in appropriate financial hand, increase exposure to environmental risks.

PROGRESS ON TRANSPARENCY Progress toward transparency has been made on different Sustainability Accounting Standards Board (SASB), taking levels by a multitude of institutions: into account that effective standards and metrics ideally • Regarding principles, the Task Force on Climate-related need to directly relate to balance sheet items or cash flows. Financial Disclosures (TCFD) established by the Financial • Understanding the long-term consequences of climate Stability Board (FSB) developed principles and associated change on financial stability, the Network of Central recommendations for climate-related disclosures with the Banks and Supervisors for Greening the Financial System aim of supporting “informed, efficient capital-allocation (NGFS), developed a report containing six best-practice- decisions”1 and decrease the financial system’s exposure to based recommendations for central banks, supervisors, climate-related risks. policymakers and financial institutions “to enhance their role • Similar work has been pursued by the Climate Disclosure in the greening of the financial system and the managing Standards Board (CDSB) which aligned its framework of environment and climate-related risks.”2 These include for reporting environmental information with the for example the integration of climate-related risks into recommendations of the TCFD. financial stability monitoring, increased international data • Work on clarification of industry-specific standards, and knowledge sharing, as well as striving for internationally sustainability topics and their associated metrics across consistent environment-related disclosure. a wide range of industries has been promoted by the

2 Network of Central Banks and Supervisors for Greening the 1 The Task Force on Climate-related Financial Disclosures: Financial System. (2019). A call for action Climate change as 2019 Status Report (Rep.). (2019). Washington, DC: Financial a source of financial risk (Rep.). NGFS Secretariat/Banque de Stability Board. France. Executive Summary 9

Financial firms and policymakers are expected to play an beneficial due to their complementary capabilities: the enabling role in accelerating the awareness of climate-related agility and technology expertise of fintechs combined with financial risks and scaling up green financing. Measures the broad customer base, product range and regulatory include: fostering sustainable finance to redirect capital expertise of incumbent banks. Similarly, the entrance of big flows; increasing the awareness of the impact of corporate tech firms, such as Alibaba, Amazon, Facebook, Google and actions on climate change; and improving financial Tencent, may significantly increase customer convenience education of market participants and investors. due to their customer-centricity and aptitude for advanced The most important progress, however, has to be data analytics. made at the levels of both individual corporations and On the other hand, the growing presence of fintechs, national governments. Extensive and consistent disclosure as well as big tech in this space, increases the diversity and is a prerequisite, but it will not be sufficient to achieve the competitive pressure within the financial system. This is necessary level of change. Only with societal agreement driving significant changes due to the different cultural on the key aspects, globally-consistent solutions, and dynamics in the technology industry, as well as their way positive as well as negative incentives for corporations and of delivering services and thinking about risks, compared investors, will sustainable finance scale up sufficiently and to the financial services and banking industries. As a result, environmental risks be appropriately managed. this changing technological and competitive landscape is leading to a fundamental transformation in the distribution mechanism by changing how, by whom and at what speed TECHNOLOGY AND DIGITALIZATION financial services and products are delivered.5 GIVE RISE TO NEW BUSINESS MODELS The rise of new technologies, the increased maturity of new players like fintechs, and the entrance of large, 5 With approximately 8.6 billion global mobile devices and established technology companies into financial services connections in 2017, consumers also have immediate access to a are transforming the financial system from a centralized wider range of products, services and information. See: Cisco. (2019, February 27). Cisco Visual Networking Index: framework into an open architecture. Collaboration Forecast and Trends, 2017–2022 White Paper. Retrieved from between banks and fintechs in general can often be mutually https://www.cisco.com/c/en/us/solutions/collateral/service- provider/visual-networking-index-vni/white-paper-c11-741490.html 10 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

Due to these trends, emerging platforms are changing entry to the financial sector, more players from different the dynamics and collaboration between different players sectors are competing with comparable offerings for the in the financial industry. This leads to the disintermediation same customers. of traditional banks, intermediaries and gatekeepers, Additionally, consumer expectations and behaviors in addition to a fundamental transformation of their are changing, resulting in an increased irrelevance of who operations and value chains. At the same time, scalability is delivering certain services and instead a greater focus on becomes increasingly important as network effects lead to how, based on convenience, reliability, accessibility, and a “winner-takes-all” phenomenon. The increased speed of personalization. Financial services become progressively change and technological developments due to increased contextual especially with retail banking services such as computing power and its diminishing cost, as well as the payments, lending, and asset management being offered ensuing ability to use data much more comprehensively and as part of the customer journey of retailers, comparison efficiently, leads to a more rapid development, iteration, websites, social media, and lifestyle apps. and testing of business models and their subsequent Emerging banking platforms blur boundaries between instantaneous adoption via the internet. sectors, resulting in a range of activities being offered As a consequence, small start-ups, which initially may outside of the core jurisdiction of bank regulators. This lack regulatory and compliance expertise, can quickly also raises questions and challenges about the perceived and scale up their operations and presence globally. This goes real accountability regarding the protection of personal as hand-in-hand with a trend toward convergence. Due to well as financial data on an individual, organizational, and the internet and mobile infrastructure lowering barriers to societal level. Executive Summary 11

IN THE FACE OF OPEN BANKING, These differing approaches to data usage, protection and DATA PROTECTION AND privacy and the resultant concerns may, however, present PRIVACY BECOME PIVOTAL banks with an opportunity to act as the trusted custodian of clients’ financial data and digital identity. They can thus Open Banking initiatives around the world are leading regain and retain clients’ trust in a world where personal application programming interface (API)-based access to data is unwittingly used to pay for increased convenience accounts and banking infrastructures, as well as customer and seemingly “free” amenities. Feedback circles between and transaction-related data for non-financial third party trust and data may lead to a virtuous circle with those players providers. who earn the consumers’ trust also becoming their data’s Generally, combining data from different sectors guardian. Clear ethics regarding the use of financial data could significantly enhance offers, tailor user experiences, will be paramount for data- and privacy-based business increase efficiency, and ameliorate insights and decisions models to grow, as well as to ensure accountability by all by all participants. However, this data is currently mainly parties involved, and to safeguard the obligation to protect unstructured without agreed standards and formats, and the users’ privacy. even databases within organizations are often not adequately connected. New technologies such as cloud computing and the use of distributed ledgers allow users to aggregate OPEN ARCHITECTURE REQUIRES data into interoperable and standardized formats, to move, analyze, and use it more efficiently, transparently and at MOVE TOWARD MORE ACTIVITY- lower cost, and subsequently to facilitate its automation in BASED REGULATION the context of smart contracts. New challenges for regulators stem mainly from the speed Players like Alibaba and Tencent in particular benefit and extent of technological developments, the structural from a substantially different attitude towards data sharing impact of the entrance of new players, and the emergence and privacy in China, allowing them to interlink insights of new business models such as robo-advisory, credit on consumer behavior across a wide range of activities scoring by retailers or crypto-assets, and other Distributed with financial data, and consequently offer a broad array Ledger Technology (DLT)-based services. Due to the of potentially value-adding comprehensive services on disintermediation of financial services, a range of banking their platforms. This mindset towards data ownership and activities are increasingly offered by players that are not in usage, combined with the resulting network effects and the traditional core regulatory realm, making the assignation all-encompassing services offered by these large platforms, to existing entity-based regulatory regimes difficult if not leads to overwhelming adoption of their services within impossible. China. This is reflected by an almost 54% market share in Regulators therefore have to either integrate these the mobile payments market for Ant Financial’s Alipay and players and their activities into existing regulations, or an almost 40% market share for Tencent’s WeChat Pay and redefine the perimeters of their regulatory scope to avoid QQ Wallet. risks to consumer protection and imbalances in the playing Nevertheless, not all elements of these business models fields between regulated banks and new entrants (who will be transferable to other geographical parts of the otherwise provide part of the financial service value chain world mainly due to a diverging stance on privacy and data without being regulated). To accommodate these new protection, particularly highlighted by the EU’s General business models and delivery mechanisms, regulation needs Data Protection Regulation (GDPR) and comparable laws to become more activity-based instead of preserving the in the US and Asia. traditional entity-based approach. Applying the same rules The general deterioration of trust that consumers have and regulations to the same risks, activities, and business in banks as a long-term consequence of the financial crisis models also helps regulators to stay responsive in the face remains an issue. Additionally, the current situation lacks of an increasingly open architecture and the blurring of reciprocity and creates an asymmetry. The Payment Service boundaries across sectors and industries. Directive (PSD) II is allowing standardized and real-time The extent of these challenge becomes evident in the access to payments data to non-financial third parties, but case of the Libra cryptocurrency introduced by Facebook: yet, financial institutions are being denied access to tech While bank payments have to undergo a range of checks companies’ data on customers and their behavior. regarding the consistency of payments with the client’s 12 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

overall profile and the legitimacy of the origin of funds conflicting and overlapping policy objectives between bank and recipients, questions arise about the level of safeguards and data regulators. This also creates challenges for banks for payments outside of the regulatory environment. This that have to reconcile the need for central data repositories in potentially raises security concerns regarding anti-money the context of a single-client approach with data localization laundering (AML) and counter-terrorist financing (CTF) requirements preventing them from sharing information standards. across jurisdictions or different legal entities. The accelerating dynamics of technology and changing Data sharing and connectivity agreements across market structures also require regulators and supervisors countries, such as the International Organization to become more agile, to expand their mindsets beyond of Securities Commissions (IOSCO) “Multilateral sectoral and national borders, and to acquire and build Memorandum of Understanding Concerning Consultation new capabilities regarding their technological literacy and and Cooperation and the Exchange of Information” (the proficiency. Regarding the interaction with new players MMoU), are a good basis, but the long-term goal should as well as striking the right balance between facilitating be global data standardization in a cross-border data innovation on one side and consumer and investor repository with harmonized and real-time information. protection on the other, some regulators have set up Data protection rights need to be able to be suspended if “sandboxes” such as the Regulatory Sandbox of the FCA compliance would compromise market abuse investigations. (Financial Conduct Authority) in the UK and the FinTech Promising examples are the respective provisions in the new Regulatory Sandbox of the MAS (Monetary Authority of United States-Mexico-Canada Agreement (USMCA), Singapore). The FCA’s sandbox “allows businesses to test which prohibits data localization and allows regulators to innovative propositions in the market, with real consumers.”6 access relevant data while requiring robust privacy, as well as Such initiatives foster innovation in a responsible way as the recent work on legal entity identifiers (LEI) and uniform they allow regulators to expand their understanding of new global unique transaction identifiers (UTI) in the context business models, products, and technologies early on while of over-the-counter (OTC) derivatives markets. at the same time internalizing data and technology to make their own regulation more effective and efficient. Regulatory challenges will also extend to the STRONGER PRINCIPLES FOR GLOBAL “explainability” of complex algorithms based on advances in machine learning, visual recognition, and language FINANCIAL GOVERNANCE ARE NEEDED processing. Such processes allow a more efficient analysis One approach discussed at the Salzburg Global Finance of less structured data and are increasingly used to boost Forum to cope with rapid technological evolution and new efficiency in back and middle office processes, improve business models is a partial reinstitution of principles-based credit decisions, and enhance risk management in general. regulation. While reliance on third-party service providers such as cloud Principle-based and rules-based regulations do not storage by financial institutions is still low, an increased shift have to be mutually exclusive. They can coexist in an towards external partners such as Amazon Web Services aligned fashion with broader-based principles on top of (AWS), coupled with a high degree of concentration their respective international levels, backed up by detailed among these providers, also heightens the importance of guidelines and rules about how these principles should be issues around cyber security and accountability of digital applied in practice. This would address the challenge of providers. rule-based systems lacking the flexibility to adapt to the The trade-off between data and privacy protection and increasing pace of change. A combined principle/rules-based the use and sharing of data is also reflected in the regulatory approach also provides the necessary degree of consistency context: The opposing views on the importance of data and clarity needed by market participants regarding the protection in the context of big tech versus the regulatory practical implementation, since a purely principle-based goal of maximal information sharing to contain financial regime runs the risk of lacking a level playing field for banks risk and deal with misconduct in financial markets result in across different jurisdictions and for banks in turn lacking certainty regarding their level of compliance. The goal is to ensure consistent outcomes across

6 Financial Conduct Authority. (2019, April 29). Regulatory Sandbox. different countries and jurisdictions, and to avoid diverging Retrieved from https://www.fca.org.uk/firms/regulatory-sandbox interpretations of principles and their practical realizations Executive Summary 13

both within supervisory organizations as well as across including agreement on definitions and processes will different regulators and supervisors. This is especially make internationals standards and recommendations more relevant as the internet – and hence digital business models equivalent, acceptable and enforceable. Ideally this should – cut across legal and territorial boundaries. Immediate be accompanied by stronger monitoring and mechanisms measures that are already being undertaken among others, for dispute settlement, as well as a higher degree of by the FSB are a recalibration and evaluation of existing enforceability, for example through sanctions. rules to ensure that the current framework and international A higher degree of inclusion of various players and standards are at the appropriate level of generality to provide experts from emerging countries is also crucial in the face the necessary flexibility to address emerging risks and meet of the increasing border- and jurisdiction-encompassing the desired results without having unintended economic emerging risks and the growing power of Asian economies as consequences. the international financial governance is still predominately To ensure that the international financial architecture bank-centric and Western-oriented. and the surrounding governance will remain able to cope To address risks that have not yet had immediate with the many and expansive emerging risks – spanning impact on the financial system and financial stability but environmental, social and cyber issues – more coordination very likely will do so in the future, such as climate change, and cooperation at European and international levels appropriate expertise outside of the financial realm should are urgently needed. Strengthening the assertiveness of be incorporated in a more intensively and institutionalized multilateral institutions and securing their credibility way. To better understand and assess the potential impact and legitimacy in the face of the fragmented political of these risks, analysis has to become more scenario-based and economic environment is becoming pivotal. Giving besides the customary surveillance of current and often international financial institutions more power will cyclical data. ultimately lead to greater benefit for the entire system. Given the increased pace of change, institutions must A crucial first step is to build a general consensus between become even more forward-looking, and systematically policymakers and regulators around common policies and build up competencies in the areas of new technologies approaches, as well as around the importance of emerging such as cyber, crypto assets and DLT, as well as in emerging topics such as creating a level playing field with big tech and issues such as climate-related risks and data protection at facilitating sustainable finance. Additionally, more detailed the crossroads between financial service providers, fintechs, agreements on international recommendations as well as and big tech. a stronger ex ante coordination prior to their legalization 14 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

CONCLUSION AND NEXT STEPS

Growing geopolitical risks, economic and political Additionally, in the face of long-term climate-related risks, fragmentation, challenging societal and technological fostering green and sustainable finance needs to become a developments, and a deterioration of trust characterize greater priority for all involved participants with banks and the complex environment in which market participants, regulators acting as facilitators. regulators and supervisors have to operate today. The deliberations of the 2019 program of theSalzburg The ethics and values surrounding privacy and data Global Finance Forum demonstrate that a new economic in an increasingly digital world are becoming pivotal to and financial system is emerging – one that is driven by avoid a fundamental crisis of confidence and to hopefully technology, demographics, social and political pressures, restore the trust of the public in financial service providers. climate change risks, and the environment. New challenges Retail financial services like payments, lending, and asset ahead require new finance, which will be more greatly management are becoming more and more contextual due rooted in society, more inclusive, more responsive to the new to fundamental changes in underlying business models, needs of the real economy, households and entrepreneurs, dominant technologies, and delivery mechanisms. As a and better able to support the transition to sustainable consequence, market participants have to rethink their role, development, as well as to serve emerging digital needs. competitive position, and collaboration models. All this must be achieved while still retaining trust and Regulators and supervisors also have to adapt to the maintaining resilience. wider variety of players offering financial services sometimes As the world of finance continues to change, the Forum’s outside of their traditional core regulatory regimes. future programs will tackle this new role of finance and Increased international coordination and integration, as explore the new implications and redefining possibilities in well as strengthening multilateral systems, are important the banking and financial markets industry, which in turn aspects in overcoming these challenges on a global scale. could help enable a more sustainable and resilient economy. Executive Summary 15

ADVISORY COMMITTEE Lorenzo Bini Smaghi Patrick Kenadjian Sandra O’Connor Chairman of the Board, Senior Counsel, Former Chief Regulatory Affairs Officer, Société Générale, Paris, France Davis Polk & Wardwell London LLP, JPMorgan Chase & Co, London, UK New York, NY, USA Andreas Dombret Senior Adjunct Research Fellow, Michael Krimminger David Wright Columbia University, New York, NY, USA; Partner, Chair, EUROFI, Paris, France; former Member of the Board Deutsche Cleary Gottlieb Steen & Hamilton LLP, Partner at Flint-Global, London, UK; Bundesbank (2010 - 2018), Frankfurt, Washington DC, USA former Secretary General, Germany IOSCO, Madrid, Spain Sylvie Matherat Douglas Flint Chief Regulatory Officer, Former Chairman, Member of the Management Board, All members of the Advisory Committee of HSBC Bank Plc, Deutsche Bank AG, Frankfurt, Germany the Salzburg Global Fiance Forum serve London, UK in a voluntary and personal capacity. Annette Nazareth Salzburg Global Seminar is grateful for José Manuel González-Páramo Partner, Davis and Polk, LLP; their time and expertise shared. Member of the Board of Directors, former Commissioner of the US Securities Chief Officer, Global Economics, and Exchange Commission, Regulation & Public Affairs, Washington DC, USA BBVA, Madrid 16 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

PROGRAM PARTICIPANTS

CO-CHAIRS PARTICIPANTS* Ashley Alder, Vickie Alvo, Joanna Cound, Yasuhiro Hayasaki, CEO, Hong Kong Securities and Managing Director, JP Morgan Head of EMEA, Global Public Counsellor on Global Strategy, Futures Commission, China, Chase & Co, New York, NY, USA Policy Group, Blackrock, London, The Norinchukin Bank, Tokyo, Hong Kong SAR (UK) UK Japan Jarryd Anderson, Eugene Ludwig, Senior Counsel, Wells Fargo & Co., Andreas Derndorfer, Jacob Hook, Founder and CEO, Promontory Washington, DC, USA Managing Director, Raiffeisen Managing Partner, Oliver Wyman, Financial Group, Washington, Verband Salzburg, Salzburg, Singapore, Singapore (Australia) Madelyn Antoncic, DC, USA Austria CEO, The SASB Foundation, New Alan Houmann, York, NY, USA Chen Ding, Head of GGA, EMEA, Citi, London, CEO, CSOP Asset Management UK Denisa Avermaete, Ltd., China, Hong Kong SAR (USA) Senior Adviser, European Banking Thomas Huertas, RAPPORTEUR Federation, Brussels, Belgium Andreas Dombret, Senior Fellow, Center for Financial (Slovakia) Senior Adjunct Research Studies, Goethe University, Silke Finken, Fellow,Columbia University; Frankfurt am Main, Germany Professor of International John Banes, former Member of the Board (USA) Management, International Partner, Financial Institutions Deutsche Bundesbank (2010 - School of Management, Group, Davis Polk & Wardwell LLP, Alexander Kadow, 2018), Bad Homburg, Germany Munich, Germany New York, NY, USA Senior Economist, Deutsche Mitchell Eitel, Bundesbank, Frankfurt am Main, Joseph Barry, Partner, Sullivan & Cromwell LLP, Germany Global Head of Regulatory, State New York, NY, USA Street Corporation, Boston, MA, Richard Kaye, USA Douglas Elliott, Managing Director, Head of Partner, Oliver Wyman, New York, Government Relations, EMEA, J.P. Johannes Beermann, NY, USA Morgan, London, UK Member of the Executive Board, Deutsche Bundesbank, Frankfurt Santiago Fernandez de Lis, Patrick Kenadjian, am Main, Germany Head of Regulation, BBVA, Senior Counsel, Davis Polk & Madrid, Spain Wardwell London LLP, London, Byron Boston, UK (USA) CEO, President and Co-Chief Anne Gates, Investment Officer, Dynex Capital, Board Member, Raymond James Heinz Konrad, Inc., Glen Allen, VA, USA Financial, Inc., Los Angeles, USA Member of the Board (Corporate Banking), Raiffeisen Verband Paul Brione, Stefan Gavell, Salzburg, Salzburg, Austria Head of International Policy Vice Chair, Program on and Strategy, Bank of England, International Financial Systems, Michael Krimminger, London, UK Cambridge, MA, USA Partner, Cleary Gottlieb Steen & Hamilton LLP, Washington, DC, Angus Canvin, Daniel Gorfine, USA Director, International Affairs, UK Chief Innovation Officer and Finance, London, UK Director, LabCFTC, US Commodity Akio Kurata, Futures Trading Commission Founder & CEO, EQUITY X INC., Amelie Champsaur, (CFTC), Washington, DC, USA London, UK (Japan) Partner, Cleary Gottlieb Steen & Hamilton LLP, Paris, France Charles Gray, Boon Ngiap Lee, Special Counsel, Sullivan & Assistant Managing Director, Joyce Chang, Cromwel LLP, New York, NY, USA MAS, Singapore Chair of Global Research, J.P.Morgan, Washington, USA Roland Günther, Christopher Lee, Chief Transformation Officer - Senior Partner, FAA Investments, Wei Sun Christianson, Digital Investments, Deutsche Redwood City, USA Co-CEO of Asia and CEO of China, Bundesbank, Frankfurt am Main, Morgan Stanley, Beijing, China * positions correct at time of Germany (Austria) program — June 2019 (USA) Appendix 17

STAFF Johannes Leitner, Wolfgang Pointner, Andres Unger, Stephen L. Salyer, Relationship Manager Corporate Advisor, Oesterreichische Partner, BearingPoint GmbH, President & Customers, Raiffeisen Verband Nationalbank, Vienna, Austria Vienna, Austria Chief Executive Officer Salzburg, Salzburg, Austria Barnabas Reynolds, Towa-Christina von Bismark, Benjamin W. Glahn, Rebecca Lentchner, Head Financial Institutions Executive Director, UBS Vice President – Head of Government Relations & Advisory & Financial R, Shearman Switzerland AG, Zürich, Business & Operations Public Policy APAC, BNY Mellon, & Sterling, New York, USA (UK) Switzerland (Sweden) China, Hong Kong SAR (USA) Verena Ross, Nehal Vora, Tatsiana Lintouskaya, Peter Levitt, Executive Director, European Chief Regulatory Officer, BSE Ltd, Program Director EVP & Treasurer, CIBC, Toronto, Securities and Markets Authority Mumbai, India Canada (ESMA), Paris, France (Germany) Antonio Riolino, Peter Wilson-Smith, Program Manager Colin Lloyd, Stéphane Rottier, Founder and CEO, Meritus Partner, Cleary Gottlieb Steen & Senior Advisor EU Affairs, HSBC Consultants, London, UK Hamilton LLP, New York, NY, USA Holdings plc, Brussels, Belgium Johannes Woelfing, Rachel Barclay, Ferheen Mahonmed, Alison Sander, Head of European Affairs, The Development Manager, Group General Counsel, Hong Director Center for Sensing & Investment Association, London, Campaign & Donor Relations Kong Exchange and Clearing Ltd., Mining the Future, The Boston UK (Germany) Ian Brown, China, Hong Kong SAR (Portugal) Consulting Group, Cambridge, David Wright, European Development Director USA Sylvie Matherat, Chair, EUROFI, Paris, France; Jan Heinecke, Chief Regulatory Officer, Deutsche Maximilian Schausberger, partner at Flint-Global, London, Fellowship Manager Bank AG, Frankfurt am Main, Head of Fintech Partnerships, UK; former Secretary General, Germany (France) Raiffeisen Bank International AG, IOSCO, Madrid, Spain (UK) Oscar Tollast, Vienna, Austria Communications Associate Barbara Matthews, Mark Yallop, Founder & CEO, BCM Strategy, Michael Sholem, Chair, FICC Markets Standards Jenny L. Williams, Inc., Alexandria, VA, USA Special Counsel, Cadwalader, Board (FMSB), London, UK Director of the Inspiring Wickersham & Taft LLP, London, Leadership Campaign Elizabeth McCaul, Zachery Zweihorn, UK Global Head of Strategy, Counsel, Davis Polk & Wardwell Promontory, New York, NY, USA Ranjit Ajit Singh, LLP, Washington, USA Yasmina Ghandour, Former Chairman, Malaysian Wim Mijs, Communications Intern Securities Commission, Kuala Chief Executive Officer, European Lumpar, Malaysia Youngji Kwon, Banking Federation, Brussels, Program Intern Belgium (Netherlands) Thomas Steiner, Partner, BearingPoint GmbH, Meredith Nelson, Burkhard Ober, Munich, Germany Development Intern Head of Public Policy, Allianz SE, Brussels, Belgium (Germany) Debra Stone, Martin Silva Rey, Managing Director and Head of Communications Intern Sandra O’Connor, Corporate Regulatory, JPMorgan Former Chief Regulatory Affairs Chase & Co., New York, NY, USA Officer (ret.), JPMorgan Chase & Co, New York, NY, USA Heath Tarbert, Acting Under Secretary, Neil Parekh, International Affairs, U.S General Manager-Asia, National Department of the Treasury, Australia Bank, Singapore Washington, DC, USA Robert Patalano, Dominik Treeck, Deputy Head of Divison, Partner, Oliver Wyman, Organisation for Economic Washington, DC, USA Co-operation and Development (OECD), Paris, France (USA) 18 Financial Services in the 2020s: Tectonic Shifts and New Landscapes

STAFF AND CONSULTANTS SALZBURG GLOBAL SEMINAR AND SCHLOSS LEOPOLDSKRON

SENIOR MANAGEMENT BANQUETS DEVELOPMENT KITCHEN Stephen L. Salyer, Rebeka Breznikar, Rachel Barclay, Hannes Bergner, President & Banquets Staff Development Manager, Campaign Chef Chief Executive Officer & Donor Relations Martina Laimer, Thomas Bodnariuk, Benjamin W. Glahn, Head of Banquets Connor Bevan, Executive Chef Vice President, Davidson Impact Fellow Marjana Misic, Robert Eder, Development & Operations Banquets Staff Ian Brown, Chef Clare Shine, European Development Director Erlita Morawska, Matej Hascak, Vice President & Banquets Staff Allison Cowie, Kitchen Staff Chief Program Officer Development Associate Thi-Yen Nguyen, Jürgen Kling, Daniel Szelényi, Banquets Staff Michelle Dai Zotti, Chef Vice President, Development Manager Hospitality Ali Samim, Thomas Priller, Banquets Staff Andrew Ho, Sous Chef Pia C. Valdivia, US Development Director Vice President & Nikolett Solyom, Harald Stögbuchner, Chief Financial Officer Banquets Staff Danielle Karnoff, Chef Development Manager, Gulistan Suleiman, Constantin-Marian Tudor, Campaign & Individual Giving Banquets Staff Kitchen Staff Jenny L. Williams, ADMINISTRATION, Gabi Weldetensay, Director of the Inspiring Banquets Staff FINANCE & Leadership Campaign OPERATIONS MAINTENANCE Richard Aigner, COMMS, Gerhard Bauer, Hotel Operations Manager EVENTS Technician MARKETING & Brenna McGaha, Lisa Hübner, Matthias Rinnerthaler, Director, Finance & Head of Maintenance SALES Events Associate Administration, US Jiri Urda, Thomas Biebl, Ursula Stadler, Beth Pertiller, Gardener Director of Marketing & Events Associate Director of Operations Communications, Isabella Surer, Salzburg Global Seminar Michaela Radanovic, Events Associate Controller Finance, Salzburg Louise Hallman, Ursula Reichl, Strategic Communications Assistant Director Finance, Manager Salzburg HOUSEKEEPING Jan Heinecke, Nicoleta Galca, Manuela Resch-Trampitsch, Fellowship Manager Housekeeping Staff Director Finance, Salzburg Karin Pfeifenberger, András Molnár, Carina Rögl, Director of Sales & Marketing, Housekeeping Staff Finance Assistant Hotel Schloss Leopoldskron Suzi Özdemir, Alexis Stangarone, Oscar Tollast, Housekeeping Supervisor Special Assistant, Communications Associate Office of the President Marisa Todorovic, Executive Housekeeper

Elena Tudor, Housekeeping Staff Appendix 19

RECEPTION & PROGRAM REVENUE REPORT AUTHOR Jennifer Dunn, Ghelajo Bah, Silke Finken is a professor at the International School of Program Development Associate Receptionist Management. Her research areas are innovation management, Charles E. Ehrlich, Christina Böckl, financial services, fintech and blockchain as well as strategic Program Director Night Porter management. Previously she was a senior vice president operations and services at DZ BANK AG, responsible for strategic projects and Marty Gecek, Tim Erkert, regulatory affair as well as the head of the innovation and consulting Chair, Salzburg Seminar Night Porter American Studies Association management for transaction banking. Before joining DZ BANK AG, Roman Ihly, (SSASA) Dr. Finken was a project manager at Bain & Company’s financial Night Porter service practice. She holds a PhD in Finance from Frankfurt Michaela Goldman, Karin Maurer, University. Dr. Finken is a Fellow of several Salzburg Global Seminar Internship Program Manager Revenue Manager programs. Faye Hobson, Claudia Noisternig, Program Manager Receptionist Astrid Koblmüller, For more information contat: Manfred Soraruf, Program Manager Night Porter Tatsiana Lintouskaya, Brigitte Kraibacher, Katharina Wiener, Program Director Admissions Associate Receptionist [email protected] Tatsiana Lintouskaya, Antonio Riolino, Program Director Program Manager John Lotherington, [email protected] Program Director INTERNS* Louise Hallman, Strategic Communications Manager Paul Mihailidis, Yesica Gufler, Reception Program Director, [email protected] Salzburg Academy on Media Jocil Janca, Banquets and Global Change Yasmina Ghandour, Social Media

Klaus Mueller, Youngji Kwon, Program For more information visit: Founder & Chair, Series SalzburgGlobal.org/go/finance Su Hyun Lee, Program Salzburg Global LGBT Forum Program SalzburgGlobal.org/go/621 Bernadette Prasser, Meg Monroe, Library Admissions & Program Officer Christian Müller, Reception

Dominic Regester, Celine Ortiz, Banquets Program Director Nanda Peixoto, Fellowship Antonio Riolino, Program Manager Carla Remenyi, Banquets

Susanna Seidl-Fox, Martín Silva Rey, Features Program Director, Culture & the Arts * at time of program — (June 2019) SALZBURG GLOBAL SEMINAR Salzburg Global Seminar is an independent nonprofit organization founded in 1947 to challenge current and future leaders to shape a better world. Our multi-year program series aim to bridge divides, expand collaboration and transform systems.

Salzburg Global convenes outstanding talent across generations, cultures and sectors to inspire new thinking and action, and to connect local innovators with global resources. We foster lasting networks and partnerships for creative, just and sustainable change.

Over 36,000 Fellows from more than 170 countries have come together through our work, with many rising to senior leadership positions. Our historic home at Schloss Leopoldskron in Salzburg, Austria – now also an award-winning hotel – allows us to welcome all participants in conditions of trust and openness.

SALZBURG GLOBAL FINANCE FORUM The Salzburg Global Finance Forum tackles issues critical to the future of financial markets and global economic growth and stability. Created in 2011, its annual meeting facilitates candid in-depth analysis of strategic challenges and emerging risks by senior and rising leaders from financial services firms, supervisory and regulatory authorities, and professional service providers.

For more info. please visit: www.SalzburgGlobal.org

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