Posts Tagged ‘Marketing’

Interview: Nick Rugg

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Nick Rugg, Senior Underwriter,Financial Institutions and Fintech, Markel International.

Whilst Open Banking will bring opportunities, what risks do you think could arise?

Transactions involving the sharing of data and the movement of funds will always carry risk. Where there are multiple parties involved in these transactions there is clearly heightened risk. The exposure to fraud, theft and data loss for banks, account information service providers and payment initiation service providers will no doubt be a key concern for these companies.

What can companies within the Open Banking space do to protect themselves against these risks?

As well as having strong customer authentication and data protection procedures it is vital that companies also have the right insurance policy in place. The right insurance policy is key for companies that wish to gain FCA authorisation to offer account information services and payment initiation services and to protect themselves against the liabilities that may arise from offering these services.

Is there adequate insurance cover available to companies that are looking to offer account information or payment initiation services?

The market for the type of insurance that AISPs and PISPs need in order to gain FCA authorisation is very small, however the Markel fintech insurance policy has the covers required for these companies to become authorised and we are very proud to say that our insurance policy has formed part of many companies successful applications for authorisation from the FCA.

What can AISPs and PISPs do to ensure that they have the right insurance cover in place when applying to the FCA for authorisation?

The right insurance policy is critical for FCA authorisation so it’s important that companies wishing to offer account information and payment initiation services speak to an experienced insurance broker or insurer of fintech companies in order to arrange the right level and breadth of cover required for successful authorisation.

What do you hope to get out of the Finance Edge’s Open Banking Summit?

It will be a great opportunity to meet some interesting people within the Open Banking sphere and to hear about their ideas and experiences. And hopefully they will be interested to hear what I have to say too!

Speaker Interview: Patrick Hunger

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How far along are wealth and asset managers in the digitization process? What else still needs to happen to get us to the next stage?

The transformation is still in its infancy. Most of the traditional wealth and asset managers continue to preserve and protect existing revenue streams based on non-digital ‘business blueprints.’ In particular, the role of the human interface is stereotyped relative to robo-advisers or algorithms with the argument that humans in essence only relate to humans. This is fundamentally wrong, as humans relate in the wealth and asset management space to value and value only. Hence, what will get us to the next stage is an understanding of value creation by human advisers, and ‘human interaction as a service’ (HIaaS) around trade-offs.

What are the best ways firms can design a customer experience that will appeal to an existing customer base as well as the next generation?

Historically, wealth and asset managers have been rather one-dimensional in their channel approach to clients. Technology has fundamentally changed the way we access information and this seems to be true irrespective of demographics. As such, I do not strongly advocate ‘generational’ or ‘gender’ segmentation. I would rather recommend designing means of collaboration with your customers based on social needs, i.e. create inclusion, team dynamics or peer-to-peer-connectivity. You do not want to create a ‘customer-base legacy’ but rather create an eco-system of interrelated ambassadors.

How is automation changing the role of wealth and asset managers?

As indicated before, automation puts more emphasis on value creation. Technology is after all a commodity and does not idiosyncratically drive success. Wealth and asset managers need to create their ‘value space’ by skillfully combining technology and HIaaS or alternatively by designing services without any kind of personal intermediation. Whatever the approach is, strategy follows customers and unless you create value for your customer, you should not be in the game in the first place.

In an evolving digital landscape, how can firms most effectively utilise client and company data?

The wealth and asset management space is obsessed with data. In a digital world, your starting point is though whether your data is big and holds value. This may sound counterintuitive, but your challenge is not just to target broadly, but also to personalise your services deeply. Moreover, for that to successfully and continuously happen, you need to think outside of dashboards, connect siloed data, and merge data from the past with data from the moment. Your goal is to answer important customer questions on the fly. I doubt that the majority of wealth and asset managers hold these capabilities today, which makes them vulnerable to fintechs and tech companies in general.

How do you choose the technology that will be the best fit for your firm?

That is a very difficult question to answer. However, whatever your path is, do not try to outsmart your competition with technology, as this will not work – it is a commodity. You can only outsmart your competitors with your value proposition. ‘Customer service magic’ is created by connecting the dots

Why will you be speaking at Finance Edge’s Digitizing Wealth & Asset Management Summit, and what do you hope to get out of the event?

It is a great privilege to be speaking at the summit and to connect with all the subject matter experts. I concluded a long time ago that mastering the digital future is only possible through collaboration. As we do not know what we do not know, it is in a digitised world that displays unprecedented developmental velocity, even more relevant to listen actively to what other people have to say.

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Interview: Nick Rugg

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Speaker Interview: Patrick Hunger

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Payment Services Development Ltd

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