The definitive source of news and analysis of the global fintech sector | October 2018 www.bankingtech.com THE TREE OF FINTECH LIFE Growth, gains and generations CASE STUDY: HOME CREDIT Life’s good at Europe’s heart FOOD FOR THOUGHT Authority in a disrupted economy FINTECH FUTURES IN THIS ISSUE Contents NEWS 04 The latest fintech news from around the globe: the good, the bad and the ugly. 17 Spotlight: APIs The rise of the API economy. 18 Comment: $2 bill fintech Do you like weird money? Then read on... 20 Case study: core banking Live Oak Bank pioneers Finxact’s core banking tech. 24 Analysis: bank of the future When banktech gets personal. 27 Interview: Peter Hainz, SmartStream Taking away the bank’s intraday liquidity risk pain. 28 Case study: Home Credit Life is good at the heart of Europe. 31 Spotlight: enterprise blockchain The rubber has met the road. 32 Fintech tour Frankfurt What can the city offer in the post-Brexit world? 34 Food for thought Titles, corner offices and authority in a disrupted economy. 38 Fintech funding round-up Good ideas can bring good money. 41 Spotlight: fintech How to succeed and influence people. REGULARS 43 Appointments – the movers and the shakers. 43 Industry events – mark your calendars! 44 Out of office – a slice of satire. October 2018 | www.bankingtech.com | 01 Managing Director & Editor-in-Chief Tanya Andreasyan +44 207 551 9010 13 December 2018 | London Marriott Hotel Grosvenor Square [email protected] Deputy Editor Antony Peyton +44 207 551 9010 [email protected] Reporter Henry Vilar +44 207 017 5709 [email protected] Design & Production Manager Kosh Naran [email protected] Head of Sales Jon Robson +44 203 377 3327 [email protected] Business Development Manager Editor’s note David Wurie +44 207 017 5593 [email protected] Marketing Manager Irena Andrisevic Thinking of changing your core banking and insurance firms. The majority of +44 207 017 5379 system? Prepared to cast your net wider its customers are in its home country [email protected] than the “usual suspects” such as Temenos (Aegon, Robeco, SNS Bank and LeasePlan Subscriptions and Renewals and Infosys Finacle? Here is our pick of Bank among them), but it has also made JOIN US FOR THE INDUSTRY’S MOST Tel: +44 207 017 5533 fresh faces that are worth putting on inroads into the UK with an FCA-approved Email: [email protected] your radar: subsidiary, Ohpen Operations UK. GLAMOROUS EVENT OF THE YEAR Subscription for one year: Finxact in the US. Built by Frank Five Degrees, also in the Netherlands ■ £495 Sanchez, developer of the Profile core and also founded in 2009. Its flagship ■ €625 ■ $795 banking platform, which today resides with solution, Matrix, has recently been Now in their 19th year, Banking Technology Awards recognise excellence in the use FIS and is well-known worldwide, Finxact supplemented by the acquisition of Libra, of IT in banking and financial services, strive for innovation, and Subscription for two years: is riding “the second wave” of digital a core banking software developer in ■ £800 banking. The solution is cloud-native and Iceland, and its Libra Securities and Libra professional contribution to the industry’s betterment. ■ €880 ■ $1,000 its design in API-first. It already has a taker Loan solutions. Libra employs 40+ staff, in the US, Live Oak Bank, and is in talks who specialise in the same technology Book a table for you, your colleagues, partners and clients, and join us for a with distributors in Asia to take the system stack as Five Degrees. fabulous black-tie event at London Marriott Hotel Grosvenor Square, international (for a detailed case study Íslandsbanki (Bank of Iceland) is see p20). among Libra’s clients. Five Degrees’ user a top-star venue in the heart of the UK capital. Mambu in Germany. This nine-year old base includes Munnypot in the UK and company has progressed from providing ABN Amro’s new wealth management Be a part of the celebrations! a back office engine for small credit and proposition in Germany, Prospery. bt © Banking Technology 2018 All rights reserved; Banking Technology material microfinance firms to a more fleshed out may not be reproduced in any form without core banking product suitable for bigger the written permission of the publisher. players across the globe. The solution, Banking Technology is published ten times a year delivered on a hosted/cloud basis, has www.bankingtech.com/awards OakNorth and Santander in the UK as Address customers, N26 in Germany (and Europe), Maple House 149 Tottenham Court Road Folkefinans in the Nordics, and Mynt in Get in touch to find out more and book your seat: London W1T 7AD the Philippines. UK The vendor has recently launched Jon Robson Printer Mambu Process Orchestrator (MPO) – an Hobbs the Printers Ltd integration Platform-as-a-Service. e: [email protected], t: +44 (0)203 377 3327 Hampshire, UK Ohpen in the Netherlands. Same age Tanya Andreasyan ISSN 0266-0865 as Mambu, and also cloud-based, Ohpen Editor-in-Chief www.bankingtech.com targets banks, asset/investment managers Banking Technology For general queries, please contact: [email protected] @FinTech_Futures October 2018 | www.bankingtech.com | 03 #BankingTechAwards NEWS NEWS NatWest starts KGI Bank pioneers Taiwan’s first Bank of Khyber in new core Judo selects quantum regulatory sandbox banking system search Temenos T24 computing testing Taiwan’s first test of its “regulatory sandbox” According to Koo, the participants’ Bank of Khyber (BOK), a regional assign 80% weighting to the technical core system will begin on 5 December, according to the future payment records are to be used in government-owned bank in Pakistan, proposal, and 20% to the financial one. NatWest has begun testing with quantum financial supervisory commission chairman the scoring model. “A person who pays has embarked on a core banking system BOK’s incumbent system is Bank Melbourne-based challenger bank Judo computing power to solve the efficiency Wellington Koo at the opening ceremony telecom fees on time will have a higher modernisation programme. Essentials, provided by local vendor Capital has selected Temenos’ T24 core demand of some of the issues the bank faces. of FinTechSpace in Taipei last month. credit performance,” he says. The bank issued a request for proposal Sidat Hyder. Its implementation process system, channels, analytics and financial The bank says it is using “quantum- The Taipei Times reports that the To make the scoring more accurate, the (RFP) in June, looking to “procure the was a lengthy one, starting in 2011 and crime mitigation, as it hunts for action inspired” computing power, to execute sandbox will have KGI Bank and Chunghwa experiment would verify the identity of services of experienced software houses, concluding in 2016. in the SME business sector. tasks at 300 times the speed of a traditional Telecom as participants, offering loan and the user by checking the IP address of the IT companies for the supply, installation, For treasury ops, the bank uses Adams The bank, which launched in March, computer – this meaning that quantum credit lines which will be limited to TWD borrower’s mobile phone. implementation and maintenance of a core from another local vendor Autosoft has created a cloud-based, API-centric algorithms are used, but not qubits. 200 million ($6.49 million) in total. Once the loaned amount reached TWD banking system”. Dynamics, as well as AutoRTGS for settlement. tech ecosystem and the Temenos Cloud The quantum-inspired computing power The commission, who initiated the 160 million ($5.2 million), a panel will The new solution should “provide all the It is likely BOK will be evaluating was a “perfect fit”. can be used to help portfolio managers experiment, expects 4,000 people to take determine if it should pursue the TWD 200 necessary facilities to run the business of Autosoft’s core banking solution, Temenos says it was the first banking decide on the right composition for the part throughout its one-year duration. million maximum. the bank as per best standard practice”, the Autobanker, as well as the offerings software provider to launch a cloud bank’s £120 billion “high quality” liquid KGI hopes the sandbox test gives it The experiment would need to stop if bank says in the RFP document, and cover of international vendors that are well- offering running on Microsoft Azure assets (HQLAs) portfolio. access to new customers, including the there are four cases of imposter fraud, but its network of 166 domestic branches established in Pakistan: Temenos with T24 and since 2011, T24 has been available HQLAs are assets such as cash and bonds financially excluded, according to the the bank is required to give a preliminary (including 84 Islamic banking branches). and Oracle FSS with Flexcube. as a managed service on the Temenos that every UK bank must hold as a buffer in bank’s department of planning director- report halfway through. In the scoring process, the bank will Tanya Andreasyan Cloud. case it runs into financial trouble. general Lin Chih-chi. If the sandbox experiment presents By using the API layer, T24 will The hardware used in testing has been April saw the promulgation of the Act good results, the commission would integrate with Judo’s existing systems Fujitsu’s quantum-inspired Digital Annealer, on Financial Technology Innovations, consider adjusting the related regulations. 250 ATMs close monthly in UK via its zero trust network and identity whilst the quantum software is provided by which was originally passed by the Personal information would be protected, management system “thereby opening 1QBit – of which NatWest is an investor and Legislative Yuan on December 2017.