Lisa Davis LL.B, is the CEO of PearTree Securities. Drawing on her extensive advisory and business experience in the investment industry, Lisa oversees the strategic direction of the firm and is responsible for the legal aspects of the firm’s business. Lisa gained her in-depth knowledge of securities regulation at the Ontario Securities Commission and as General Counsel for a specialized investment fund business. Through private practice, Lisa specialized in corporate and securities law.
Dedicated to the Canadian resource sector, Lisa is a Director of the Prospectors & Developers Association of Canada (PDAC) and co-chairs the Finance & Taxation Committee. Here she tells us all about PearTree Securities.

PearTree Securities Inc. is a subsidiary of PearTree Financial Services Ltd., an exempt market dealer and a specialized fund manager. PearTree created an investment platform for High-Net-Worth Canadian clients to access the tax benefits available in resource exploration and development activities funded through the issuance of flow through shares, for the ultimate purpose of lowering their after tax cost of philanthropy.

A flow through share is a unique Canadian hybrid instrument made up of a common share and a tax benefit available only to the first subscriber. Our platform captures the tax benefits for our clients enabling the sale of the shares stripped of tax value to global equity investors at a discount. Since January 2016, PearTree has deployed more than $500M (CDN) of capital with equity acquired from PearTree by global institutional and strategic investors, at material discounts to market.

Junior resource companies rely heavily on Canada’s flow through share system to raise high risk capital for exploration and development. Flow through shares enable these companies to “renounce” eligible expenses funded with subscribers’ money. These investors then claim these expenses as deductions for tax purposes. However, flow through share tax benefits are available only to Canadian resident investors, a retail market.

PearTree’s platform increases access to capital for junior resource companies by expanding the capital pools available. We secure the highest price possible for the share issuer, with less dilution to existing shareholders.

Our clients are a triumvirate - the resource sector (mining and oil & gas), the banking/brokerage community and the “end buyer” investors, often international. We offer the flexibility of being able to facilitate financings by public or private issuers and can participate in all or part of a flow through financing. PearTree provides additional demand from a larger, more diverse investor base and the potential for higher remuneration on larger financings.

Our format adds no incremental cost to the flow through financing process. We are paid by our clients with no fees charged to the share issuer, bank or broker or the end buyer. Therefore our program doesn’t interfere with any existing fee arrangements.

The PearTree format is well-known in Canada and our goal is to grow market share, retain and grow trusted relationships and expand the market through adoption of this financing platform by international investors. By providing optimized investment access to high-quality Canadian resource stocks, we create new opportunities for investment in the Canadian resource exploration sector. Our format is well poised to expand the universe of capital sources, bringing a unique value proposition directly to a worldwide investment community.

Website: http://peartreesecurities.com

FirstPort Insurance Services is a respected and trusted insurance broker working in a niche market that specialises in insurance for blocks of apartments. It prides itself on its ethical ways of working and customer-centred ethos. Managing Director, Judi Runciman talks about her approach and that of her team, which ensures that the business stands out from the crowd.

I began my career in insurance 45 years ago as an underwriter and moved to broking when I was given the opportunity to run a small brokerage office. I have never looked back. Since then I have worked both at a local and national level and have seen a great deal that has inspired me for my leadership of FirstPort Insurance Services.

FirstPort as a business has a strapline ‘More Than Just Bricks and Mortar’, in our business this has never been more relevant.

We deal directly with Resident Management and Right to Manage Company Directors who are entering into contracts with us to arrange their buildings insurance. Some of these clients have taken on these roles without prior property management or insurance knowledge and we take the time to go the extra mile so that they fully understand what service we provide and the benefits – it’s about making their life easier. With block insurance, not only is it important that we get the right price, but also the right cover as not all products on the market are comparable.

As a contents insurance broker, with over 12,000 contents insurance customers, we are often dealing with vulnerable people when it comes to our retirement property customers who require a service that offers reassurance and confidence in our ability. Each customer has a named contact within our team so they can speak to the same person for all their dealings with us and can form a relationship with them. Customer feedback on our unique approach is very complimentary - we have many long term customers coming back to us year on year because they trust and value our service.

The environment we deal in can be extremely complex. For buildings insurance, we are often dealing with multi-block sites that require a tailored approach. We deal with crisis situations, such as large-scale water damage that can affect 100s of apartments and communal facilities. In these situations, we need to be on hand to provide not only a rapid response, but one that meets the needs of all customers concerned.

My team are wonderfully supportive and we are all on the same wave-length as I only employ people that can showcase they have strong ethics and morals. I know we will always put the customer at the heart of what we do, not only because that is what is expected of us by our regulators^*, but also because everyone deserves to be dealt with in a respectful manner and given the best advice and service. We work very hard to be fair and transparent to our clients and to treat them with the respect we would wish to receive ourselves.

We operate in line with our own Code of Ethics that I have developed with my team. It sets out the standards we want to work to. For us, it’s about being accurate and straightforward with customers and ensuring advice is tailored and suitable for their individual needs. It’s also about remembering everyone is an individual and about putting ourselves in someone else’s shoes and seeing it from their perspective so the service truly reflects their situation and requirements. We know we don’t always get it right but we always learn from our experiences and have a will to continually improve.

It’s very exciting times for FirstPort Insurance Services. We are growing, with plenty of new business on the horizon. FirstPort recently announced a major acquisition of Pentland Estate Management. I am confident that this will give us an opportunity to WOW a whole new customer base, and I am confident our customer–centric approach will serve us well and see us taking our business forward in a way that I am extremely proud of.

^*FirstPort Insurance Services is authorised and regulated by the Financial Conduct Authority.

Website: https://www.firstport.co.uk/

Pini Yakuel, founder and CEO of customer engagement specialists Optimove, talks about the coming changes in the financial services sector.

Ten years ago, UK bank Northern Rock collapsed, marking the beginning of a global financial crisis whose effects on financial services are still being felt today. Consumer mistrust in traditional banks does still linger from the fallout of the last decade. With new regulations looming on the way, financial services organisations use customer account data, more established financial providers need to update their marketing strategies to build strong relationships with their customers, before they are led away by new online challengers.

In a survey last year on confidence in banking, only 39% of consumers reported having complete confidence in banks with branches, as compared to 44% for internet-only banks. [1]  Customer loyalty is still low, with online challengers pulling into the (admittedly narrow) lead. As these competitors grow, banks need to reach out to their customers and build a more personalised relationship with them.

Consumers tend to not change banks once they have chosen one, even if they are dissatisfied, and this inertia in the industry has meant that banks haven’t focused on sustaining close customer relationships. But this is changing, with a record number of customers switching to a different provider last April. [2]

The change has been in part enabled by the variety of digital and app-based financial providers that have emerged in the last few years as competitors to the more traditional banks. By offering services tailored to each user, such as retail discounts and financial advice on how customers can use their money more efficiently, these challengers are taking business away from established providers. Research by Kasasa has found that eight out of ten millennials would switch banks if a competitor offered better rewards.[3]  These challengers are making the most of this new generation of brand-agnostic customers by offering more individualised rewards to their customers.

After the implementation of the Open Banking Initiative and the Payment Services Directive 2 (PSD2), which comes into force in January 2018, the spur for customers to compare the services and rewards of different financial services providers is set to increase. Banks will have to share customer account data with third parties (with the customer’s consent). They will be required to open up the back end of their systems to other payment providers. This means that customers will be able to easily compare the services of different providers on an equal playing field, giving FinTech companies a great opportunity to win customers, as transparency may overcome inertia.

To respond to this, banks will need to make the most of the customer data available to them. Using data analytics to divide customers into separate groups based on what kind of account-holders they are, they can develop specific, individualised marketing schemes. By trialling a variety of marketing strategies, such as individualised retail discounts or reductions on charges, banking marketers can use AI programmes to make smart observations on which strategies bring in the most revenue, for each type of consumer, leaving no customer behind. From this, banks can forge strong customer relationships that provide ongoing value in both directions.

The way that established financial services firms respond with their marketing and customer engagement will be key to survival. Fintech companies have focused on the value they demonstrably add to customers. Traditional players must get better at articulating their proposition to customers – personally, emotionally, and intelligently. With the large amounts of customer data available to them, traditional banks have the resources to do this too. By applying AI and data analytics to their marketing strategies, banks can gain deep insight into what is most useful to their customers. They need to develop their own personalised services for their users, using this insight to create meaningful relationships with their customers.

Website: http://www.optimove.com/

[1]  EY, “Trust: Without it you’re just another bank”, http://www.ey.com/gl/en/industries/financial-services/banking---capital-markets/ey-trust-without-it-youre-just-another-bank

[2] The Telegraph, “Record number of customers switch their bank account”. http://www.telegraph.co.uk/business/2016/04/19/record-number-of-customers-switch-their-bank-account/

[3] https://kasasa.com/landing-pages/switching-millennials.html?utm_source=the%20financial%20brand&utm_medium=guest%20post&utm_campaign=2017-Partner-Marketing&utm_content=switching%20motivator%20for%20millennials&utm_term=millennials

The UK outsourcing market recorded its strongest half year performance since 2012 between January and June as financial services companies ramped up activity, according to the Arvato UK Outsourcing Index.

The research, compiled by outsourcing provider Arvato and industry analyst NelsonHall, revealed outsourcing deals worth £5.2 billion were agreed in the first six months of the year, with financial services accounting for 55 % of the total contract value at £2.9 billion.

The sector’s investment in outsourcing services was behind a steep increase in spending by UK businesses, according to the findings. Companies signed contracts worth £4.5 billion between January and June, representing a 95 % year-on-year rise. The latest figures follow a particularly strong first quarter, which saw firms agree deals worth £2.5 billion - the strongest quarterly private sector spend since the last three months of 2011 (£6.4 billion).

IT outsourcing (ITO) contracts accounted for the majority of private sector procurement in H1, with deals agreed worth £3.8 billion, up from £1.2 billion in the first six months of 2016. Application management and hosting were the most popular service lines procured by the private sector, as businesses focused on digital transformation.

The overall value of UK outsourcing contracts signed in the first six months of 2017 represents the largest half year spend since H1 2012 (£5.6 billion), and a 23 % year-on-year rise.

Debra Maxwell, CEO, CRM Solutions UK & Ireland, Arvato, said: “It’s clear from the research findings that we are yet to see any impact of Brexit on the sector as businesses continue to invest in new technology and transforming their services.”

Security concerns drive outsourcing spend in financial services

Financial services businesses signed outsourcing contracts worth £2.9 billion in the first half of the year, a steep rise from the £428 million agreed in the first six months of 2016.

An increased demand for outsourcing IT services, specifically network infrastructure, security architecture and cloud computing, was behind the rise, according to the findings. The sector accounted for 62 % of total ITO spend in H1 2017, compared to just five % over the same period last year.

Patrick Quinn, CEO of Arvato Financial Solutions UK & Ireland, said: “Strengthening security and data protection are top of the agenda for the sector and businesses are increasingly turning to partners to deliver resilient infrastructure and architecture in the wake of high profile cyber-attacks and to prepare for the new data privacy legislation.”

Improving customer service drives growth in energy and utilities sector

The number of deals agreed by energy and utilities businesses over the first six months of 2017 rose by 20 cent year-on-year, according to the latest Index findings.

Companies signed outsourcing contracts worth £268 million over the period, up 10 % on the value of deals agreed between January and June 2016.

The research reveals an increase in BPO spend is behind the rise, specifically investment in customer services and collections. Energy and utilities firms spent £164 million improving customer experience in H1 2017, compared to the £4 million invested by the sector on BPO during the same period in 2016.

The Arvato UK Outsourcing Index is compiled by leading BPO and IT outsourcing research and analysis firm Nelson Hall, in partnership with Arvato UK. The research is based on an analysis of all outsourcing contracts procured in the UK market during H1 2017.

Other headlines from the H1 2017 Index include:

Overall, 87 % of spend came from the private sector, with government bodies accounting for the remaining 13 %.

A total of £882 million was spent on business process outsourcing (BPO) deals, representing 17 % of the overall UK outsourcing spend.

The value of ITO contracts accounted for 83 % of the UK market, with contracts signed worth £4.2 billion.

(Source: Arvato UK & Ireland)

Greg Cox is the CEO and co-founder of Quint Group – an award-winning FinTech company with headquarters in Macclesfield, Cheshire which also has operations in London, America, Poland, South Africa, China and Australia. Here Greg tells us more about the FinTech giant’s beginnings and triumphs, as well as his role in achieving all of this.

 Tell us a bit more about your career path, prior to founding Quint Group - what attracted you to the financial technology sector?

 After learning to code at 16, I worked in a range of businesses areas, some online, before focusing in the consumer finance industry. I’ve always had keen creative inclinations (both parents are designers) and an entrepreneurial approach which, when combined with a computing background, seemed to be a successful recipe for building a business like Quint.

How was the idea about Quint Group born?

 I was a passive investor in a consumer finance business in 2006, which subsequently failed in the wake of the financial crisis in 2008. When the business failed, I was asked to investigate and summarise to other investors why the business was unsuccessful and what our options were. While completing this report I started to look at the market in detail and it became apparent to me that consumer finance was primarily delivered to customers over the phone and on paper, which seemed crazily outdated. I could not believe how far behind the consumer finance industry was in terms of online technology application - this realisation prompted me to start Quint. Upon launch in 2009, my aim was to build businesses in the consumer finance space that focused on online platforms and technology.

Despite your countless responsibilities, you are still involved with the day-to-day technology developments of the business - how do you ensure you are directing the company in the correct direction, form a technological point of view?

 I have lots of talented people around me that are experts in tech and product delivery. Those people work across our three separate tech hubs, allowing me to take considered views from three independent groups of experts. This is helpful and means I get a balanced perspective. The experience gained from making good decisions and the lessons learned from making bad decisions historically are also very valuable in my current decision making progress.

Do you look at others in the FinTech industry as competitors or do you take a different view?

 Yes and No. As a Group, we do not have single direct competitor because we have multiple business channels combined within one group. However, we do have competitors to some of our individual businesses, although my perspective is that everyone in the sector is someone we can potentially work with and learn from. Across the Group, a competitor of one of our businesses might be a potential client or supplier of one of our other businesses, so our outlook is necessarily collaborative and perhaps more relaxed to competitors than most.

To what extent is Brexit going to affect Quint Group?

 That is a very good question – I don’t think anybody knows the answer to how Brexit will affect their business! We do not import or export goods and have limited exposure to currency fluctuations so certain aspects of Brexit may not affect us in the same way they will other businesses. My feeling is that Brexit and other economic and political challenges we have ahead of us, could result in an economic downturn, which could have the potential to negatively affect the UK economy. All we can do is prepare as much as possible, diversify to mitigate risk and react timely to changes in the socio-economic landscape.

What goals are you working towards with the company? What do you hope to accomplish?

Our company is ultimately consumer focused – our greatest successes are derived when we put the consumer’s needs at the heart of what we do and this ultimately drives our commercial success. In terms of revenue, our short-term goal is to grow to £100M GBP annually and successfully develop our international territories. Our long-term goal is to create Europe’s most successful group of FinTech businesses.

 What is your advice for successful leaders in the modern tech-focused world?

 Focus on the medium to long term and worry about getting that right. The medium and long term will soon become the now and if you take a long term approach, you will get long term results. It can be easy to get distracted with the day-to-day, so I mindfully set aside time for strategic planning on a regular basis. Another key area for me is keeping laser focused on real profits and revenues as opposed to users or other tech intangibles. I’ve witnessed too many people give away valuable services for free because they feel user volume is more important than traditional metrics of success. I think this approach will result in many businesses failing in the coming years.

Website: http://www.quint.co.uk/

Ashok Vaswani, the CEO of Barclays UK talks to Katina Hristova about championing digital skills for all and his outlook for the future.

Barclays has a history of innovation and continues to be a leader when it comes to technological innovation in banking services – tell us more about it.

 Barclays has been at the centre of British finance for over 327 years, and in that time, the world has changed beyond recognition. However, the reason we have been able to consistently deliver game-changing innovations throughout all this disruption has been a relentless focus on our customers, their needs and aspirations, and being there for the moments that really matter.

We have 24 million customers in the UK; roughly one in two adults. For me, success isn’t about driving the business to get 25 million customers – it’s about becoming indispensable for the 24 million customers we already have, by continuously making their lives easier, offering greater convenience and delivering value for them.

If we can’t do that, we won’t be around for another 327 years, or even 10 years. In this era of disruption, businesses will become obsolete unless they serve a clear purpose. Our purpose is to help people go forward.

What have been Barclays’ biggest achievements in the past 12 months?

We have been at the forefront of reinventing banking through a focus on great technological innovation with a purpose. I think our biggest achievements have been transforming the business and its culture as well as creating Barclays UK; a business that is truly fit to meet customers' needs and expectations in the digital age.

As part of that, we have rolled out a number of technology solutions to make our customers’ lives much easier, such as instant cheque imaging and video banking. Barclays was also the first bank to introduce contactless cash; a completely new way for customers to withdraw their cash using their Android smartphone or their debit card’s contactless technology.

We have also launched automated valuations for home purchases, shaving days off the processing time. Mortgage Agreement in Principle has also been introduced into 338 branches, allowing customers to obtain a mortgage decision in less than 15 minutes.

New digital processes have also helped improve the on-boarding of Business customers, and the introduction of pre-approved credit limits for Business customers has reduced the time required for customers to request an unsecured loan of less than £25,000 from five days to a matter of minutes.

In addition, we have opened 12 Eagle Labs, sites where people can use new technologies such as 3D printers and laser-cutters and which help facilitate small business growth in local communities.

We have also demonstrated a strong commitment to using technology to enhance customer security; Barclays was the first bank to pioneer finger-vein technology in the UK, and we are working to tackle fraud through innovations like voice biometrics, which over 750,000 customers have now registered for.

How would you evaluate the impact that you’ve had on Barclays achieving all of this?

In creating Barclays UK, I have set out three mains goals for the business:

• Continually demonstrating how we are putting customers first by providing value and making their lives easier.
• Demonstrating our commitment to supporting the UK economy.
• Fundamentally rebuilding trust in Barclays and reinstate pride in our profession by putting customers at the heart of everything we do.

Barclays UK has already made significant progress in achieving these strategic aims, and we have done this by putting the customer at the heart of everything we do.

Our investment in technology sets us apart, putting us at the forefront of innovation in the banking sector, delivering products and services that improve people’s experience, enhance accessibility and offer quicker and more convenient choices for customers.

At the same time, we have been working to make sure that no one is left behind in the digital revolution.

Our Digital Eagles have so far helped to support over 100,000 customers to become more digitally confident through dedicated Tea and Teach Sessions in our local branches, as well as delivering Code Playground sessions to teach young people basic coding skills.

We’ve also introduced the Digital Driving License, a free app through which users can earn a City & Guilds digital skills qualification, boosting their digital skills and confidence.

In 2017, Barclays UK launched its latest campaign to promote digital safety, a major nationwide initiative to raise awareness of cybercrime and help people protect themselves from fraud and scams.  Since the campaign launched in May, it has already helped 2.5m people take action to become more digitally safe.

We have also pioneered Beacon Technology, improving the level of in-branch service offered to customers with disabilities, as well as SignVideo, which allows deaf people who use British Sign Language instant access to an interpreter via the in-branch colleague iPads. Talking ATMs, supersize card readers and high-visibility debit cards have also been launched for the visually impaired.

In addition to championing accessibility, we want to ensure we are doing the right thing by society as a whole. As part of our commitment to helping people move forward in their lives, we run a number of skills and employability programmes, for example, the Barclays apprenticeship scheme, through which over 3,000 apprentices have already been offered employment. I also support the Armed Forces Transition, Employment and Resettlement (AFTER) programme, which provides work placements, employment opportunities, CV and interview coaching, and money management sessions, as well as funding for education and vocational courses for service leavers.

We also have the LifeSkills Programme, which provides schools with a range of free, curriculum-linked lesson plans, workshops and resources designed to help 11-19 years olds to develop the skills employers most seek. To date, over 4.3m young people have been reached through the LifeSkills programme via either in-school lessons or directly online.

I believe we are beginning to rebuild the trust and reputation of the banking industry, but I know we still have some way to go. However, by remaining committed to the strategy of putting customers and clients first, serving our economy and earning trust, I want to build a solid foundation on which we can grow. Barclays is creating a bank that is truly good for customers and clients, good for businesses and good for Britain.

As CEO of Barclays UK, how do you ensure you are directing the company in the correct direction? How do you advise your team to make the correct decisions for the company alongside your customers?

The thing I ask myself every time I make a decision is: “are we doing the right thing for the customer?”. I learned a lot from my Mum growing up, and one of the principles that has always stuck with me is that there is no substitute for integrity. Integrity isn’t just about what you write down as your mission statement, it’s also about how people behave when no-one is looking.

When it comes to my team, another thing that my Mum taught me is the importance of humility, that is to be ready to admit I don’t have all the answers, which is why I need many brilliant minds working to deliver our game-changing innovations.

I sincerely believe everyone needs to keep learning throughout their career. We can no longer rely on what we learnt at school to last a lifetime. I encourage everyone at Barclays to keep learning, particularly digital skills, and to develop an entrepreneurial mind-set.

What was your main motivation behind being the CEO of Barclays UK and what is the most rewarding aspect of your role?

The most rewarding thing about the role is the opportunity to work for millions of people.

In terms of how I got here, as a kid in Mumbai, my Mum wanted me to be a Doctor. When I said I didn’t want to do that, she actually took me to see my local bank manager to ask what he thought a good job would be.

I’ve since come to realise that the role of a bank manager is really at the centre of a community, and I have him to thank for the fact I became a Chartered Accountant. After that, I moved to Dubai aged 27 with $10 in my pocket, and met my wife there. That was the start of a fascinating journey working around the world.

What are your plans for the company for the rest of 2017 and beyond?

There are some exciting times ahead, with next year’s PSD2 and data protection regulation set to transform the shape of the digital economy. Barclays has all of the right ingredients to remain a leader in financial services, but we must be prepared and remain agile in order to take full advantage of the coming changes.

In the longer term, customer expectations are no longer confined to one industry – we are being judged not against other banks, but against the best in class from across our customers’ favourite brands. Is Barclays a bank, an information business or a technology company? We’re all three. But we will never lose that central focus on the customer, and that’s how we will thrive in a truly connected world.

Retail banks have an opportunity to differentiate with new offerings and control their own disruption. Find out how: http://cs.co/90018tx9R

By Rob Brown, Associate Vice President at Cognizant’s Centre for the Future of Work

Chatbots are gaining in popularity in a number of industries as an important customer service tool, with financial services and insurance particularly keen to roll them out: Crédit Agricole Assurance has Marc, and Bank of America recently announced it was introducing Erica. Barclays, Société Générale, USAA, BBVA, and Capital One have all also begun investigating the technology.

The rise of chatbots is being driven by several converging trends: the popularity of messaging apps, the explosion of the app ecosystem, advancements in artificial intelligence (AI) and cognitive technologies, conversational user interfaces and a wider reach of automation. Their adoption is accelerating so quickly that Oracle believes that 80% of brands will be using them by 2020. But will the current hype be sustainable over time without a stronger business rationale and better short-term results?

We live in an age of instant gratification, and this certainly applies to exchange of information – the core mission of financial services.  So why are customers confronted with long wait-times on hold, being transferred department-to-department, or having to wait through a list of phone prompts? In the context of chatbots, it is actually not about “the robot” at all, it is all about how easy the end-user finds it to use, and simply whether it works or not. To get it right, businesses should start preparing for the coming bot age now if they have not begun to already. This means peeking into the future and designing bots to respond to today’s customer needs, such as personalisation, context, meaning, first contact resolution, management, as well as bot-human interaction and interface design.

Here are four areas chatbots will evolve.

1. Specialisation and Personalisation
   For chatbots to be effective, they need to become far more specialised in topics and tasks, and have the ability to personalise interactions. As time goes by, we will begin to see this happen. Very soon we will see expert chatbots that specialise in providing information about different banking solutions, while there will be some like x.ai’s Amy, Apple’s Siri or Microsoft’s Cortana that are experts in making calls and scheduling meetings, or helping to orchestrate process steps. For example, your close of escrow got delayed due to unforeseen disclosures from the seller – was the bank notified not to fund the mortgage loan? In-the-moment examples like these will make chatbots more utilitarian and dependable.On the flip side, users will also then need to understand what the chatbots does, specialises in, excels in and – most importantly – where it has limitations. This leads to one of the most crucial design decisions: the history of continuity and personal connection. Consider this element as a “tuning fork” of sorts that brings together and harmonises all interactions a person may have on a given subject.If the user were to stray from a central line of main dialogue, for example, from Siri to Facebook Messenger, a chatbot will need the history and context of other discussions with people, places, and things in order to provide continuity and personal connection. In turn, this will dictate how much personalisation can be brought into the interaction itself. For instance, can the system remember user profiles, previous interactions, the interactions of other users in the system, the current context and the situational bigger picture? Chatbot creators will then need to design them so that they can access this information using a multitude of systems and derive meaning from that information, all while keeping the central “plot line” of context intact.
2. Speed of ResponseOne of the things that makes most present-day browsers so useful is their ability to answer questions at almost the speed of the user’s thoughts – sometimes faster. The experience of a good chatbot interaction is not judged only on its capacity to answer a question correctly but also the speed at which such a response is provided. In the bot world, solving a problem after a first contact with a customer will become a key performance metric.Chatbots that can provide basic solutions in the first instance without the need to paraphrase or explain the problem in greater detail will be the most useful and, by extension, the most popular.
3. “Superbots” – Your Personal Assistant
   The concept of a superbot is not yet well known but will be a significant element in the future of bots. Indeed, as bots become more specialised and popular, they will proliferate. For many companies, managing them could become as overwhelming and complex as managing apps is today. The solution could come in the form of a superbot.A superbot, or “bot of bots,” would act as a personal assistant, getting things done on behalf of the user. That would mean calling other bots to complete tasks such as scheduling meetings, dialing conference call numbers or redirecting the customer to the appropriate page to make a claim. The superbot would know which bot to call for a particular task and instruct that bot to provide feedback to the user, therefore being faster and more efficient. Some platforms already use “global managers”, automated robots that orchestrate workflow, and delegate which process transactions should be worked on by myriad other robots.
4. Humanising Chatbots
   Many of us will have seen an example of a gimmicky, humanoid “greeter robot” deployed in your high-street bank branch but the chances are, it fell short on actual needs-based problem solving for the customer. Chatbots, to the rescue – customers actually want solutions to process common choke-points in the gaps between information flows. Most of today’s technology exploration focuses on enhancing features and improving functionality to enable chatbots to mimic human responses, engaging in a more natural, intelligent conversation with users. Despite the merits of this work, the continued success of chatbots will not wholly depend on their ability to conduct a natural conversation but on the accuracy of their responses to customers’ questions at the moment-of-truth: when the tax bill is due, when the overdraft charge kicks in or when the mortgage documents are being finalised.Humans can sense when they are interacting with a machine, and any attempt to make it appear more human rather than intelligent may end up triggering negative emotional responses in humans— this phenomenon has been called “the uncanny valley” by a Japanese roboticist in the 70s. That is why some novelties robots are merely a distracting detour on the road to real breakthroughs in applying automation that matters to the financial services sector for real and lasting results.

Chatbots will be the vanguard of these efforts, and success will hinge upon their ability to become useful, maybe even indispensable, to human beings. Automation has its limits — and there are some things that robots just cannot do. That is where a blended model of automation augmenting people in their daily lives, conversations, and information requirements can provide extraordinary outcomes. By connecting conversations with meaning, context and intelligence, and providing people with relevant information in real-time and after absences, chatbots will provide as higher quality service and outcomes.

For companies in financial services, in addition to other industries, it requires striking a balance between speed, specialisation, and personalisation provided by chatbots and the ability to cater to human sensibilities and expectations. After all, the main goal is to support users and to make their lives easier.

This month Finance Monthly had the privilege to speak to Gianluigi Montagner - the Chief Executive Officer of Malta-based Framont & Partners Management Ltd. In his interview with us Gianluigi tells us all about the services that the company offers, their business strategy and priorities towards their clients, while also providing a rich insight into the investment services sector in Malta.

How are most financial investments structured in Malta?

Malta holds a good reputation as a jurisdiction for smaller and medium financial companies and start-ups. Thus, the fund sector attracts asset management activities all around Europe, being a cost-effective and efficient solution with respect to other jurisdictions that are traditionally experienced in the same field but less appealing from this perspective.

Malta has been able to develop numerous investment funds, which is the main reason why we opted for a full AIF and UCITS licence as fund managers, both targeting professional and retail investors. Framont can offer even the traditional investment services, since we offer services of portfolio management, as well as advisory.

What are the main considerations that need to be followed when providing investment plans to your clients?

The main considerations to be followed always relate to the risk management and the investment objectives. This can either be in terms of target or timeline.

It is imperative to help the clients understand that all investment plans involve some degree of risk, as the reward of taking risk results to the potential for a greater investment return.

Can you outline the process Framont & Partners go through to assess your clients’ current financial situation and assist them with identifying financial goals and concerns?

We perceive it as imperative to hold a frequent and close relationship with each client we have, in order to update their characteristics, understands their needs while trying our best to accommodate them, as well as their personal financial positions. Therefore, this successfully allows us to assist the clients and reach their goals.

Since we are in close contact with our customers and form part of the network in the wealth management markets, trends are identified at an early stage. This is the main reason for offering solutions that are customised for the customers’ needs.

How do you assess levels of risks for investment strategies? How can you accurately assess the level of risk that an individual is prepared to accept?

In order to assess the risk levels, we make use of internal models that are drafted to combine risk profiles and goals. The risk manager assists us on a daily basis and we make sure clients are well informed about the investments in their portfolios by providing regular statements and information upon request at any time.

What strategies do you implement to ensure that your clients’ goals and objectives are achieved?

We always make sure to understand and acknowledge our client’s goals and objectives. Therefore, we periodically review the financial situation of the client and match such strategies and goals. Our team is always available for any needs or questions that the clients or any potential clients might have.

As CEO, how do you ensure you are directing the company in the correct direction? How do you advise your team to make the correct decisions for the company alongside clients?

As the CEO, I make sure that the company’s direction is assessed very often, in terms of competencies as internal goals. We also check closely the reference market in order to promptly meet together with the regulation requirements and the clients’ needs. Turnover may be possible but generally, the employees on board portray a desire to remain with the company. I think this is a signal of a positive and growing environment for the employees and the partners.

About:

Gianluigi Montagner is the Chief Executive Officer of Malta-based Framont & Partners Management Ltd. It is one of the main players for wealth management market and a well-developed and growing reality in the Maltese Financial marketplace. The Company holds a Category 2 Investment Services Licence, allowing a wide variety of products and services, including outsourcing services, structuring, coordination of fund launches, investor relations, investment management, as well as distribution services for investment funds from Malta.

Thanks to the wide ranging financial background of the Company’s founders and the support of a highly specialised team with a deep knowledge of today’s constantly evolving markets, Framont places particular emphasis on stability and flexibility. Its solid structure means that the company offers personalised investment services, which are in tune with the expectations of even the most demanding of customers.

As a Fund Manager, Framont is able to establish different ad hoc sub-fund types for the management family assets or for the implementation of particular investment strategies. The firm also offers support within the evaluation of investment strategies proposed by private customers, institutional or advisory to attain the product that best suits them.

The Company’s task is to be able to switch between being a facilitator of communication, to a supporter of the observance of agreements, rules and intensive choices. Furthermore, it aims to facilitate in the process of the transitions and handover of corporate assets in the least traumatic and linear way possible.

“Framont & Partners Management Ltd aims to be a key market player within the financial markets where independency, quality and efficiency are met at all times. Excellent results mean satisfactory clients, team and partners, led by a professional approach and guidance.”

Website: http://www.framontmanagement.com/

By Adam Oldfield, Vice President Sales EMEA Financial Services at Unisys

The financial services market continues to evolve digitally to meet the rising expectations of customers, particularly in relation to their experience with digital and in-store services. Consumers expect banks to be accessible 24/7, from any location, and any device. As a result, security of access continues to be front of mind for everyone in the financial services industry, and the challenges that come with it.

 Multifactor authentication built into modern applications, the use of biometrics or analytics as well as artificial intelligence are all needed to be interwoven in the modern environment to keep security capabilities at a high – but why is cybersecurity such a pressing factor in the market over the last few months?

Legislative drivers

It is widely known about the multitude of financial, and reputational, incentives tied to increasing security standards in order to be compliant with a variety of legislative drivers, with the biggest and most impactful deadline being the General Data Protection Regulation. The GDPR brings consistency to the current data protection laws across EU member states, and provides guidance on how customer data should be stored and how companies must respond in the event of a data breach.

It is widely known about the multitude of financial and reputational incentives tied to increasing security standards in order to be compliant with a variety of legislative drivers, with the biggest and most impactful deadline being the General Data Protection Regulation.

The GDPR brings consistency to the current data protection laws across EU member states and provides guidance on how customer data should be stored, as well as how companies must respond in the event of a data breach. As we move towards the 2018 deadline a large proportion of companies including financial services, are still unsure on what they need to specifically do in order to be as compliant as possible.

Therefore, we are continuing to see the demand for cybersecurity advisory services, personnel as well as solutions at an all-time high - demanding higher and higher shares of annual and quarterly budgets within financial institutions.

The threat landscape and impending legislation has meant cybersecurity has moved from a once discretionary spend to a mandatory one in recent months. Financial services organisations are rapidly restructuring teams, hiring new talent and most importantly seeking advisory services to manage the journey to compliance. Cybersecurity maturity levels held with each organisation in the market also fluctuate, meaning each company has a different set of requirements, goals and timeframes to abide by.

However, legislative drivers forcing financial institutions to treat customer data with the utmost care are not withheld to just the GDPR. The Payment Services Directive (PSD2) and the 2018 mandate set by the Competition and Markets Authority (CMA) are some of the key drivers to raising data protection and security requirements as well as market standards, having a particular impact at the decision making, forecasting and budgeting level.

These legislative drivers will continue to move security up to a boardroom discussion, with advisory services taking the front line of demand as well as budget. As we move towards 2018, the stopwatch is on for new entrants, as well as established players to restructure teams, align ecosystems and improve data management. They must also fine tune effective cyber breach response strategies to ensure the legislations and regulations put in place have a positive impact on their business and customers.

No organisation is immune

Many financial services organisations are aware of technological developments taking place throughout security, as well as the evolving security postures needed to combat threats and reduce routes to entry. Biometric authentication is an example of this that adds an additional layer of personalised security for data and account protection purposes. The plethora of high-profile attacks, such as Petya and Wannacry, highlight how no organisation or industry, including financial services, is immune.

The need for flexibility and responsiveness is paramount in this ever-changing landscape, not only legislatively but operationally, driving companies to pull together best in breed solutions to ensure capabilities match fluctuating threats. Legislatively the PSD2, for example, forces organisations to contract and conduct payments in a certain way, as well as effectively store and protect sensitive data. In comparison, the CMA 2018 mandate is forcing all financial services providers to offer customers the ability to manage their products, regardless of provider, via a single mobile application of their choice. Operationally, customers are demanding seamless payment and verification options with a 24/7 responsive service. A best in breed and reactive approach is capable of managing these demands, meaning flexible and intuitive ecosystems for application roll out can be the route to success, and gone are the days of using one provider for everything.

Rob Mellor, General Manager at Wherescape, explains the process from data to decision, and how any business, large or small, needs to make its data amalgamation efficient in order to move forward.

They say moving house is one of the most stressful things you can endure. Having moved recently, I can confirm the old adage rings true! And this was despite paying extra for packers to do all the 'hard work'. But here's the thing: the packers didn't really save us much time because prior to them arriving, we had to spend weeks sorting and prepping our belongings into the right piles to then be boxed and shifted! This is effectively what data architects have to do if they choose not to automate the building of a data warehouse.

Imagine if I could automate the sorting of all my belongings into neatly organised boxes. Then imagine if I could automate the sorting of many families’ belongings without having to visit their houses - even taking into account the unique requirements that each individual customer has. In effect, this is what solutions like WhereScape do: help businesses to intelligently automate the gathering of data, and allow them to dramatically speed up the time it takes to drive value from it. Automating the process of data gathering can drive real business value and provide a flexible, templated approach to automation, personalised for every business requirement.

To give a real world example, Xerox Financial Services (XFS), a $2bn business spanning 14 countries, has the challenge of putting all kinds of data requests into its data warehouse and producing rapid, accurate business intelligence for its local leasing companies across 14 countries. The rapid growth of the company led to business structures growing up in parallel, creating disparate data and variations in business processes. In the past, these data sets had to be looked at in individual silos because of their breadth and complexity. This meant getting an accurate overall picture took so long that often the information was out of date by the time it was delivered.

XFS now consolidates and transforms all of its data sets into a harmonised model using WhereScape. Integrating multiple tables of data from each source has enabled XFS to create a variety of management reports, including an up-to-date snapshot of sales performance on a daily basis, allowing senior management to ensure targets are hit.

Over the last year, XFS has doubled the number of automated processes yet maintained data quality and decision making. Whereas previously the business had to rely on a monthly 'cycle' of data, it now uploads data every day allowing agile, fast and effective decision-making based on relevant, timely snapshot and trend data. By automating this data collection process, XFS can also engage more effectively with its partners. Through monitoring the value of each relationship, they have a better understanding of the number of proposals sent in by customers, average deal size and the number of order agreements. And the most tangible outcome? The level of automated credit decision-making has increased significantly without compromising the credit quality of the portfolio with complex statistical modelling being supported by data collected daily and transformed by WhereScape. This is a huge leap forward for XFS.

The only value of data is its ability to drive the right business decision. Yet we constantly see businesses failing to do this because of avoidable failures in how they manage it. The automation process XFS has deployed with WhereScape demonstrates that it doesn't have to be that way. There is a choice, and choosing the right process will drive a significantly improved commercial outcome. Now, if I can come up with something similar for helping with my packing the next time I get to move house..!

Worldpay, the UK’s largest electronic payment processing group, has announced that it is to merge with US-based firm Vantiv, following takeover approaches from two American companies.

A preliminary agreement has been reached for Worldpay to combine with its US rival Vantiv valuing the British group at £9.1 billion. The deal also sees two executives take the run for the group, between themselves based in London and Cincinnati.

This comes after news that Worldpay’s takeover request was approached by both Vantiv and JPMorgan Chase, the world’s largest bank by market value. According to the FT, shares in Worldpay have soared in the days following the announcement of the deal.

Below Hayley Bevis, Partner and Head of Corporate at law firm Coffin Mew, gives Finance Monthly her response to this story:

“It is no surprise that Worldpay has received takeover approaches from two US companies and is now to merge with Vantiv. In our experience, the size of cross-border transactions over the last year has increased dramatically, as has the appetite of overseas acquirers and investors since the result of the Brexit vote. From our discussions with overseas acquirers and investors, the interest in the UK’s fast-growth companies has been triggered by a number of factors including the favourable exchange rate, but also as a way of quickly expanding an overseas acquirer’s capabilities, experience, customer base and technological advances. 

“We have seen a particular interest in the technology sector from overseas parties, with a UK based acquisition/investment often forming part of a larger “buy and build” strategy.

“In the case of Worldpay, tax and local law considerations will need to be taken into account by potential acquirers, as well as the often harder to define practicalities of how things are done locally in the acquirer/investor’s jurisdiction. 

“We don’t foresee this trend abating any time soon, so UK companies should brace themselves for a flurry of unsolicited interest – and not be surprised when approaches come predominantly from overseas.”