Issue 02 July 2021 FinTech Talks Semi-annual publication MAGAZINE Fintech Talks: journey Shaped by cloud: the Insurtech: is it overhyped? OIM 21 – 3rd Edition: around the world brand-new way for Banks The final question on Investments Management Vision of the future from to manage risk on Cloud what is shaping the future Symposium speakers around the world A FinTech Story of insurance Our insights Page 06 Page 18 Page 22 Page 26 MagazineFinTech title goes Talks here | Magazine | Section titleIssue goes 02 here 2 FinTech Talks | Magazine Issue 02 ISSUE 02 • JULY 2021 06 08 10 FINTECH TALKS: JOURNEY BRAZIL EMBRACES BUSINESS DIGITIZATION: FROM AROUND THE WORLD OPEN BANKING PHYSICAL TO DIGITAL IN UAE by various speakers by Bruno Diniz by David Jegerson 12 14 16 COVID-19 CHALLENGES ISRAEL DRIVES SCREEN LIFE BALANCE IN FOR AFRICA FINTECH GROWTH SMART WORKING AGES by Lexi Novitske by Moises Cohen by Samantha Ghiotti 18 22 26 SHAPED BY CLOUD: THE BRAND-NEW WAY INSURTECH: OIM 21 – 3RD EDITION FOR BANKS TO MANAGE RISK ON CLOUD IS IT OVERHYPED? INVESTMENTS MANAGEMENT SYMPOSIUM by Luca Giuratrabocchetta by R. Sacchi, M. Bertini, A. Greco by various speakers 3 FinTech Talks | Magazine Issue 02 FinTech Talks Magazine: looking towards the future A quick introduction in this next chapter of the FinTech Talks Magazine PAOLO GIANTURCO BUSINESS OPERATIONS & FINTECH LEADER AT DELOITTE CONSULTING ITALY 4 FinTech Talks | Magazine Issue 02 Last year has taught us an important Change can be daunting. However, it can be understood, controlled lesson. Things change, landscapes and turned into a mean to reach new goals and objectives. This was evolve and what we thought was the aim of the 3rd Investment Management Symposium, organized certain can be overturned in the by SIAT and Deloitte: understand De-Fi - the next big disruption in drop of a dime. Digital evolution Financial Services – and how even traditional players can learn and evokes not only fast but also take advantage of it. inevitable change. However, along with the change came even more New generations are even more interested in this new instruments to adapt and overcome decentralized world, but it does not mean traditional players don`t difficulties. play a role in it. Even if the means change, the ability of those institutions to act as trusted advisors for their customers will It’s the ability to drive and govern change that makes the be the same, regardless them being boomers or millennials. Financial Technology field so exciting. The ability to adapt, turn The only requirement is the willingness to look towards the future, adversities into opportunities, that lies at the core of each and embrace its challenges and the opportunities that come along. every visionary. Speaking of the future, the magazine you are reading provides a This is what we were looking for in our Fintech Journeys around glance into two of the most fascinating innovations that will shape the world. In one of the most difficult year for FSI – and for the Financial Services in the near future: Cloud and Insurtech. I hope whole world – we searched for inspiring stories coming from the point of view of our experts will act as an inspiration to foster different geographies, to explore how the financial services world new ideas and drive innovation. has mastered the disruption brought by the pandemic. What we discovered were incredibly innovative ways, aiming to build a Once more, I wish you to enjoy the reading! different future and close the gaps that were creating inefficiencies and inequalities. – Paolo Gianturco 5 FinTech Talks | Magazine Issue 02 FinTech Talks: journey around the world A decade ago, many companies could gain competitive advantage by embracing innovations that were already underway. That was the past. Today, to stay ahead of the game, companies must work systematically to detect innovation and new possibilities. During the event, for the first time fully digitalized, guests from different regions have introduced different point of views, giving us hints from their experiences and helping us to answer to the question: how can we sense and act upon a future that remains unclear? 6 ISRAEL SINGAPORE UNITED BRAZIL ARABIAN EMIRATES AFRICA FinTech Talks | Magazine Issue 02 01 Brazil embraces Open Banking Our FinTech journey around the world takes us to: BRAZIL BRUNO DINIZ MANAGING PARTNER AT SPIRALEM 8 FinTech Talks | Magazine Issue 02 Bruno, what is the state of play in Open Banking in Latin America as far as today? Latin America has come a long way since the last few years to the place we are now. Lot of things happened in terms of regulatory changes, technology advances and in the FinTech initiatives, in the Region. The 2020 was a particular special year, specifically because of the Pandemic that brings acceleration of many different FinTech initiatives such as new Banks rising, digital wallet and alternative landing that allow people to access to capital they need, specifically in times like this. Can you identify the main changes have you seen in Brazil? I believe the Country was able to implement three significant changes: ① Pix, the Brazilian instant payment system, something that comes up in November of 2020. The new system enables immediate transactions, such as money transfers and payments, including bills, within up to ten seconds. ② Regulatory sand boxes take place in March 2021. We have three different regulators in Brazil: Insurance Regulator, The Central the banking as a service phenomenon. This ability and capacity Bank, and our local SEC (Securities and Exchange Commission) to create new ages of change embedded in the FinTech, it’ s really which together aim to encourage innovation projects in the something that can help driving financial inclusion here in Latin financial market. America. So, we have many companies, and they are all fighting for ③ Open Banking Regulation. The first version delivered in a share of the market which is embedded finance that also got the November 2020 with the goal of full implementation by October opportunity of leverage this change in terms of financial inclusion. 2021. The project is a very ambitious and it consists of the sharing We are going to witness people to start using digital Financial of data, information, and services by financial institutions to third Services. It’ s a time of change here and I believe that we just got parties. a shortcut doing this pandemic through a new reality in Latin America. Would you tell us some interesting cases recently developed? Many people that did not even have a chance to use any kind of digital Financial Service got a chance to do so with different I have some examples from both the FinTech and Banks, but I think approaches. I think it’s a very interesting opportunity for the many things we are going to see in the future. population here in Brazil to start really understanding this new world of technology in digital financial services and have the culture → PicPay is a FinTech digital wallet, grown from around 15 million and start using it from different FinTech or even Banks. clients to more than 30 million clients during the Pandemic. They really took the opportunity that came along with. There were some So that was massive and very important in terms of transformation, interesting features in the wallet, for example donations. They I believe that the Pandemic in one way or another accelerated this put their QR code to send and donate money to people. PicPay whole process to our much faster environments and to financial also afforded some important alliances, state governments and inclusion as well. I believe that we have this opportunity here to governments of the city, in order to distribute financial aids to the make something really special in the Region. population. → Caixa Economica is a Brazilian government-owned bank, and What makes Brazil financial environment so special? it was responsible for distributing financial weight in a national scale. Doing so they managed to open more than a hundred million You know FinTech also grew in India during this time, but they grew different accounts. stronger here Brazil. We got the 3rd place in terms of the Countries that received mega dials with our investments that are up to more What is the social effect of FinTech in Brazil? than a hundred million dollars. So that really shows that Latina America is a hotspot in terms of opportunities in the Emerging We used to have huge gaps in terms of financial inclusion and that Latin Markets, lots of opportunities for foreigners to come here is something I wish we are going to solve. There are some trends and for locals to create new things they like to impact the Region as that gather good timing on what is happening in the Region, as a whole. 9 FinTech Talks | Magazine Issue 02 02 Business Digitization: from physical to digital in UAE Our FinTech journey around the world takes us to: UAE DAVID JEGERSON EVP HEAD OF CUSTOMER EXPERIENCE AND PLATFORM DEVELOPMENT AT THE NATIONAL BANK OF FUJAIRAH 10 FinTech Talks | Magazine Issue 02 Can you share some data about the business digitization? Just to give you date I just collected 67% of the merchants try to have a new approach. 67% of the merchants hit from the Covid in 1 or 2 weeks they switch completely their business from physical to digital. At least more than 65% stopped completely to accept cash in the store. What’s factor makes this possible? Thanks to the fact that the ecosystem is open to the business, the government and the plans and programs that are already placed.