The Future of Finance

Articles

  • 27/11/2020 - Dominic Hobson 0 Comments
    ID2S plans to transform the European money markets

    Paris is not the obvious launch pad for a young and ambitious CSD that wants to help the European Central Bank (ECB) fulfil its vision of a single euro money market capable of competing with the United States. But the largest commercial paper market in Europe is a solid foundation on which to build a blockchain-based technology platform that offers issuers, investors and their agents a fully integrated, pan-European issuance, trading and settlement platform for a new class of genuinely international financial instruments. It may become extremely lively as economies emerge from the Pandemic, and access to credit becomes crucial for businesses of all sizes and types

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  • 28/09/2020 - Dominic Hobson 1 Comment
    THE PROMISE AND THE POWER OF DIGITAL IDENTITY

    Banks, asset managers and insurance companies and their corporate clients are spending tens of billions of dollars a year conducting Know Your Client (KYC), Anti Money Laundering (AML), Countering the Financing of Terrorism (CFT) and sanctions screening checks as they on-board new clients and re-run checks on existing clients. In 2019 Lexis Nexis put the total cost of AML compliance in the financial services industry of the United States at US$26.4 billion and in Canada at a further $5.1 billion. In 2017 the company estimated the equivalent figure for just five countries in Europe at $83.5 billion a year.

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  • 28/09/2020 - Dominic Hobson 0 Comments
    The strange lack of technological disruption in FX

    Foreign exchange (FX) is routinely described as the largest and most liquid financial market in the world. And the most recent triennial survey of FX by the Bank for International Settlements (BIS) reckoned daily turnover hit US$6.6 trillion in April 2019, up from $5.1 trillion in 2016.


    The liquidity of the market, in particular currency pairs at particular times, is a lot less reliable than such a scale implies. And, despite the hordes of participants in every currency and country and the shift to from inter-bank trading to on-exchange trading, the FX markets are in reality controlled by an astonishingly small number of banks.

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  • 15/06/2020 - Future of Finance 18 Comments
    TRADE FINANCE: EVERYONE NEEDS BUT NO-ONE WANTS A REVOLUTION IN TRADE FINANCE

    A FUTURE OF FINANCE WEBINAR WITH TRADE FINANCE BANKERS, CORPORATES, TECHNOLOGY VENDORS AND FINTECHS 


    Date October 7 2020 2.00-3.00 pm UK time


    Trade finance is one of the biggest and simplest of banking businesses, but also one of the oldest. Its working practices remain archaic. Documentation is paper-based and the adoption of standards is patchy and slow. The result is higher levels of manual processing and lower levels of automation than in most financial markets. The manifold inefficiencies of trade finance have attracted technology vendors for more than 20 years. They are now joined by a horde of FinTechs which also see opportunities to cut the wastage of money and time, mitigate operational risk and accelerate the sourcing of finance and the payment of invoices. But a combination of bank resistance to change, plus the dependence of the benefits on network effects, are slowing progress down. This Future of Finance panel asks how it can be speeded up.

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  • 18/05/2020 - Dominic Hobson Future of Finance 2 Comments
    PROPTECH STARTS TO ANALYSE THE IMPACT OF COVID 19 ON THE REAL ESTATE INDUSTRY

    Covid-19 may well be re-writing the way to make money in real estate. Picking a promising location, borrowing a large amount of money, constructing a building and then collecting rent and service charges while the capital value of the investment increases is not a prudent methodology when a viral pandemic is putting the whole idea of commuting to a downtown office at risk. The real estate industry needs a new model that can help investors understand the present to better predict the future, because what worked in the past is no longer a reliable guide to what might happen next.

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  • 29/04/2020 - Dominic Hobson 0 Comments
    Bank of England consultation paper is too coy about the consequences of a CBDC

    The main reason that central banks are cautious about issuing central bank digital currencies is that they threaten to undermine the source of funding of the commercial banks, and therefore their ability to lend. It is hard to see how this risk can be avoided.

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  • 29/04/2020 - Dominic Hobson 0 Comments
    ​French CBDC strategy is characteristically conservative

    With virtually every central bank on the planet investigating the risks and benefits of central bank digital currencies (CBDCs) it is easy to lose sight of the differences between their approaches. The Banque de France, in keeping with its longstanding suspicion of market-led innovation, is trying to control the pace of the digital currency revolution.

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  • 31/03/2020 - Peter Smith 0 Comments
    Challenger banks are unable to capitalise on Open Banking

    The much-heralded arrival of Open Banking has proved a disappointment. Neither the second iteration of the Payment Services Directive (PSD II), nor the concomitant efforts of the Competition and Markets Authority (CMA) to use digital technology to widen consumer choice and improve customer experience in retail banking, have had much effect.

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  • 31/03/2020 - Dominic Hobson 1 Comment
    Blockchain Clearing and Settlement for the Real World

    L4S is a start-up led by people who know that a successful blockchain revolution in securities clearing and settlement cannot ignore either the technical limitations of the technology or the prevailing dispensation of service providers, market infrastructures, transaction processing technologies and accounting methodologies. If their approach catches on, blockchain in securities services could just be in the foothills of the Slope of Enlightenment.

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  • AI and Blockchain
    17/06/2019 - Dr Francesco Corea 0 Comments
    AI and Blockchain

    Francesco Corea, Ph.D., is a complexity scientist and tech investor who is mainly focusing on science-driven companies in high-social-impact verticals including

    life sciences, energy, and artificial general intelligence. Francesco has a background that ranges from economics and finance to applied machine learning,
    and he's been working on a variety of different data problems over the past few years (e.g., sentiment analysis, fraud detection, behavioural science, etc.).
    He has worked with AI companies as well as an emerging VC funds and strategic consulting firms. Dr. Corea holds a Ph.D. in Economics.

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  • Professor Emmanual Haven, Professor of Economics
    15/05/2019 - Professor Emmanuel Haven, Professor of Economics, Memorial University Canada 0 Comments
    Quantum Computing

    There is a lot of talk about the possible existence of a so-called quantum computer. The popular science press often covers articles on that topic, and although many important universities have allocated very important research funds to the development of said computers, it may well be the case, that at present no such computer really yet exists (or at least it is not public knowledge).

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  • Mike Halsall - Entrepreneur and Government Advisor
    29/03/2019 - Mike Halsall 0 Comments
    AI and China

    Artificial Intelligence (AI) and China, an interesting blend of ethics, ambition and world domination.  In February 2018, the FT published an article ‘Why we are in danger of overestimating AI’, arguing that ‘considerably more work is needed before we can reach the long-dreamt-of moment when machine intelligence matches the human variety’. By 2030, just 11 years from now, China intends to lead the world in AI. Is this a realistic ambition, or has China become over-confident in her re-emerged wealth and growing geopolitical muscle?

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