FinTech Magazine - March 2020

Cybersecurity and market disruption in a digital age www.fintechmagazine.com

MARCH 2020

Developing data and talent

LEADING THE INDUSTRY Jason Manns on delivering best-in-class scientific insurance claim solutions

FinTech Innovators under 30

Make Every Customer Interaction Count Create innovative & delightful customer experiences with programmable communications. www.nexmo.com | sales@nexmo.com |

FOREWORD

W

elcome to the March edition

Joe Mancini, Chief Information Security

of FinTech magazine.

Officer at Radius Bank, to learn more

Technology is transforming every

about approaching cybersecurity dur-

industry, and insurance is no exception.

ing a shift to digital, and take a deeper

Here, the landscape is rapidly evolving,

look at why building an excellent work-

making the managing of this change

force and optimising data are essential

essential to success. In this edition,

to success of Mercer Marsh Benefits.

CodeBlue’s Jason Manns tells us more

Change can come in many different

about transformational change and

forms, of course. The change from

the importance of delivering best-in-

being an entrepreneur with a simple,

class performance.

yet innovative idea, to being at the helm

“The insurance industry is paying

of a successful fintech startup is the

close attention to the technological

theme of the lead feature in this issue.

advancements of other industries,”

Specifically, we report on Nerdwallet’s

he explains, adding that “the opportu-

Tim Chen addressing last year’s

nity exists for insurance leaders

Money20/20 USA in a fascinating

to challenge the status quo in their

keynote address titled How Nerdwallet

organisations, embrace available

Turned an $800 Investment Into a $500

technologies, and to become champi-

Million Company. Chen discussed the

ons for change to improve existing

origins behind Nerdwallet and

insurance models.”

discussed the challenges — and oppor-

Managing the expectations and chal-

tunities — around startup funding.

lenges of operations in a digital age is a recurring theme across the publication. For example, we speak with

Matt High matthew.high@bizclikmedia.com

w w w.f i nte c hma ga z i n e. com

03

From Inspiration

to Innovation

Click the home icon (top right of page) to return to contents page at anytime

EDITOR-IN-CHIEF

MATT HIGH CREATIVE DIRECTOR

STEVE SHIPLEY CREATIVE TEAM

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CONTENTS

CodeBlue: Leading an industry

10 32

BRAND BUILDER

THE YEAR OF INSURTECH

42

FINTECH: THE KEY TO DUBAI'S SMART CITY?

52

66

FinTech Innovators under 30

82 FINTECH EVENTS

CONTENTS

86 Radius Bank

100 Plymouth Rock Assurance

112 Mercer Marsh Benefits

142 126

ELMO

Zambia National Commercial Bank (Zanaco)

10

MARCH 2020

CodeBlue: Leading an industry

WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

ANDY TURNER

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11

CODEBLUE

Jason Manns, COO of CodeBlue, details the rise of insurtech as CodeBlue leverages science and cutting-edge technology to meet industry challenges

T

echnology is transforming every industry, and insurance is no exception. The landscape is rapidly evolving and with

this, insurance companies are challenged with managing change. The transformation toward digital solutions creates an opportunity to have 12

a better understanding of customer behaviours and to provide immediate customer solutions.

When harnessed successfully, these newly acquired technologies improve policyholder satisfaction while reducing costs for insurance carriers.

Jason Manns, COO of CodeBlue, has over 25 years’ experience in the personal and commercial lines insurance industry. As a transformational change leader, he has led claims and operations for a number of insurance carriers with a passion for delivering best-in-class performance, while ensuring that the customer experience is at the heart of decisions.

As an insurance executive, Manns has seen the insurance industry begin to slowly shift with technological adoption advances and, consequently, sees three of the most significant challenges MARCH 2020

13

w w w.f i nte c hma ga z i n e. com

CODEBLUE

“ The insurance industry is paying close attention to the technological advancements of other industries but continues to significantly lag behind in the adoption rate of the innovations that exist today in the marketplace” — Jason Manns, COO, CodeBlue

The second challenge insurance carriers face is the embedded inefficiencies in the claim handling process

14

currently faced by insurance carriers.

from inadequate initial claim damage

The first is the effective management

evaluations. “For example, it is common

of labour and the expenses associ-

for insurance carriers to experience 25%

ated with insurance carrier workforces.

to 40% supplemental claim payments

“This is particularly important because,

due to inaccuracies in the initial

in today’s low unemployment rate

damage evaluation process.” Today,

economy, there are shortages of

technology is available to provide

qualified and technically proficient

real-time digital capture of damages

insurance staff. I expect the virtual

at the policyholder’s initial loss report,

technologies that are now available

reducing supplemental work.

will significantly change traditional

Lastly, policyholder engagement

insurance carrier staffing models,”

presents a new challenge. The expec-

he says.

tations of customers have increased to the point where an Amazon-like standard of service, with same-day turnarounds between orders and deliveries, has become the norm.

“This level of service with regards to policyholders seeking immediate same-day property claim inspections

MARCH 2020

Join the CodeBlue Revolution CLICK TO WATCH

|

3:20

15 and contractor on site arrivals is typi-

insurance claims management pro-

cally unheard of across the insurance

vider with full scale customisable

industry,” says Manns. “There is a mas-

solutions. Drawing from his experi-

sive potential for insurance carriers

ences in the insurance carrier industry,

to catch up to what other industries

he focused on immediate policyholder

are doing.”

actions at first contact and the contin-

Early in CodeBlue’s inception,

ued development of proprietary claim

Manns — while working at an insur-

management software with digital

ance carrier — was involved in the

technologies. This included virtual

development of CodeBlue’s proactive

inspections strategies that provided

claims management model, which

solutions for insurance carrier staff

was and continues to be significantly

to view loss damages real-time and

different than all others in the industry.

remotely. “Insurance carrier staff

Today, Manns leads the operations

can now view initial damage inspec-

at CodeBlue, an industry-leading

tions from their office in a few hours w w w.f i nte c hma ga z i n e. com

Let us grow together.

Bamboo is a newly formed insurance organization, backed by some of the largest carriers in the industry, and established on the principles of customer advocacy and transparency. We aren’t looking to reinvent the wheel, but to add some grease that ultimately delivers a smooth and pleasant experience for our Customers.

Learn more

LEARN MORE

CODEBLUE

CodeBlue Join the Revolution #2 CLICK TO WATCH

|

1:59

18 after claim notification as opposed

reporting of claims, CodeBlue has

to having to be physically present at

advanced this by providing a 24-hour

the site, removing the additional costs

service, available 365 days a year,

incurred with travel time and fleet

for first notice of loss claim reporting

vehicles,” says Manns. In addition,

with virtual damage inspections and

virtual damage inspection solutions

contractor integrations that provide

reduce vehicle usage, promoting envi-

immediate actions for policyholders.

ronmentally friendly carbon practices

This approach maximises the accu-

and are a strategy that can be used to

racy of initial damage inspections

protect staff against exposure to air-

while driving high levels of policy-

borne viruses and contaminants often

holder engagement. In addition to

found at loss locations.

this, says Manns, “insurance carriers

While it remains an industry stand-

include policy language that stresses

ard to use call centers to interact

the policyholder’s obligation to pre-

with policyholders during the initial

vent additional damages at the time

MARCH 2020

of the loss by taking the needed

as “First Notice Of Loss” claim report-

actions. However, policyholders often

ing, but instead, we call it “First Notice

need greater levels of assistance in

And Response” with immediate actions

the claim process than they typically

for policyholders.” Vault Insurance

receive.” This is where CodeBlue’s

Chief Claims Officer, Peter Piotrowski

combination of technology, staff with

stated, “by partnering with CodeBlue,

property subject matter expertise

we can leverage best-in-class technol-

and contractor network, are lever-

ogy to respond quickly with the right

aged to ensure insurance carriers

resources and skills to policyholders.

and policyholders receive immediate

Together with CodeBlue, customers

actions that translate to science-

will always receive efficient, empa-

based outcomes. Manns explains,

thetic and personalised assistance,

“because of this advanced approach,

leveraged by technology in order

we no longer refer to our process

to deliver the best repair services.

E XE CU T I VE PRO FI LE

Jason Manns Jason Manns is the Chief Operations Officer at CodeBlue, an industryleading insurance claims management provider servicing North America. Jason has over 25 years of experience in leading claims and operations at insurance carriers at the executive officer level.

At CodeBlue, Jason is responsible for overseeing and scaling company-wide operations, including the continued development of proprietary claim software with digital applications that support virtual damage inspection strategies for insurance carriers. He is passionate about working with personal and commercial lines insurance carriers to provide property claim solutions that assist in making technology transformation easier.

w w w.f i nte c hma ga z i n e. com

19

CODEBLUE

D ID YO U K N OW?

The CodeBlue Flood House Experience

20

Facilities That Embody The CodeBlue Culture CodeBlue is headquartered in Springfield, Ohio, USA, with two additional offices in Hudson, Ohio, and Eau Claire, Wisconsin. Much like the company itself, CodeBlue’s headquarters in Springfield, Ohio, is a blend of history and innovation.

CodeBlue is located in the historic 1893 Bushnell Building, where the Wright brothers patented their design for the airplane. The building renovations since its erection have achieved Platinum LEED (leadership in energy & environmental design) Certification by the U.S. Green Building Council (USGBC).

MARCH 2020

In the CodeBlue flood house, they train and certify (IICRC S500) CodeBlue staff, insurance carrier staff, and contractors to be subject matter experts on the science of drying. The Springfield OH, CodeBlue flood house has been flooded with 1,500 gallons of water over 200 times since being built in 2011. “In this live water damage home environment, we demonstrate and teach the science of drying with participants using industry water and fire mitigation equipment to understand what is possible using today’s technology. Participants witness the ability to dry and restore wet materials such as carpet, hardwood flooring, cabinets, trim, and drywall versus replacing materials. This enables CodeBlue to return policyholders to pre-loss condition in the fastest and least disruptive manner.” CodeBlue has a 2nd flood house used to train and certify staff, built in 2007 in Eau Claire, Wisconsin.

21

Classroom teaching session with Ed Jones in the CodeBlue Flood House Vault Insurance and CodeBlue are

smart-connected homes and buildings

united by the same ethos: excellent

that measure the inside environmental

customer service.”

conditions. These emerging technolo-

“The insurance industry is paying

gies provide insurance carriers with

close attention to the technological

missing data points and consumer

advancements of other industries but

behaviors to better predict underwrit-

continues to significantly lag behind

ing risks, loss frequency and all of the

in the adoption rate of the innovations

costs associated, as well as the ability

that exist today in the marketplace,”

to take actions to avoid losses through

Manns notes. “We are seeing innova-

virtual real-time policyholder interac-

tions ranging from automotive loss

tions. The opportunity exists for

avoidance capabilities and self-driv-

insurance leaders to challenge the

ing vehicles, aerial photography

status quo in their organisations,

and the use of drones, to IoT

embrace available technologies, w w w.f i nte c hma ga z i n e. com

T H O UG HTF UL, SIM PLE, DYNA M IC

Vault is the new standard in personal insurance.

Vault is the new standard in personal insurance. Everything we do from building superior insurance products to interacting with our customers, is just that: personal. Our business is about empowering people to live spirited, passionate, and fulfilled lives, and we’re deeply committed to creating an unrivaled experience for our agents and our customers. Our mission is to create the perfect balance between living life and protecting it, and where the status quo doesn’t cut it, we’re rethinking insurance.

Easier to do business with.

Insurance should feel intuitive and direct. At Vault we work obsessively to make this a reality. We’re constantly reinventing how the technology we build saves customers time -- from how our bespoke insurance plans are generated to how we’ve redesigned the billing process for a more intuitive, less cumbersome process.

The luxury of support for all.

Simply put, Vault is protection done in a new way -- the broadest coverage on the market today, with real humans, prioritizing real lives in the background. Customers will feel supported by Vault before a claim is ever filed. After all, we’re here to make their lives less stressful, not more complex.

The tenacity of a startup with backing you know and trust.

Vault is backed by significant financial and operational support from Allied World, a global insurance and reinsurance company. Our team is led by top industry veterans focused on developing a better holistic experience for customers, because we believe you can have it all.

Learn more at vault.insurance or contact us at 844 36 VAULT (82858)

CODEBLUE

24 I N DU ST RY FACT S

According to US Housing Study and Chubb Water Survey, 1 in 12 homes experience a plumbing leak each year with more than 2.5 million US homeowners experiencing water damage (excluding f looding) annually. US$10bn is paid annually by US insurance carriers to repair water damage (excluding f looding) each year.

MARCH 2020

and to become champions for change

For example, insurance carrier staff

to improve existing insurance models.�

can typically drive to inspect five to

To add to this, Manns asserts that

eight claims in a day, yet with the utili-

the fast emergence of startups in the

sation of digital technologies, the

insurtech space supports that there is

same staff member can virtually

evidence of insurance carrier sectors

inspect between 15 to 20 claims

dedicated to financially supporting

a day. This approach maximises the

this evolution. We are seeing insurance

accuracy of initial damage inspec-

carriers use emerging technologies

tions, reduces expenses and delivers

in the claim process to evaluate dam-

high policyholder satisfaction.

ages to the exterior of houses and

Another CodeBlue advantage is

buildings, but often overlook using

its proprietary claim software specific

available technologies in the evaluation

to each property line of business:

of damages to the interior of the home

water and fire mitigation, reconstruc-

or building. This is where CodeBlue has

tion, contents and inventory. These

become an industry leader, differenti-

are digitally connected to photo and

ating itself from its competitors by

video chat technologies that give

having the best-in-class interior vir-

the insurance carrier staff the ability

tual damage inspection solutions.

to confirm the cause of loss, verify w w w.f i nte c hma ga z i n e. com

25

CODEBLUE

26

MARCH 2020

27

Policyholder Video CLICK TO WATCH

|

2:28

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CODEBLUE

28

coverage and evaluate damages in

Information Institute, this averages

real-time at the loss location. At the

out at a cost of US$9,633 per claim.”

same time, personalised assistance

“Here is a pipe break example. The

is provided to the policyholder so that

insurance carrier directs the policy-

immediate action is taken to avoid

holder to report the loss to CodeBlue,”

additional loss damages and to start

says Manns. “Through targeted ques-

the repair process. Manns comments,

tions, CodeBlue identifies loss

“In the world of insurance property

specific details and uses a scientific

claims, one of the most frequent

algorithm in our proprietary database

losses are water-related damages

of 3,100 certified contractors to

caused by broken pipes and leaks.

select the best contractor for the job.

According to the Insurance

The chosen technology enabled

MARCH 2020

contractor arrives at the loss location within four hours. CodeBlue staff complete a virtual damage inspection video chat with the contractor and policyholder on-site, which provides insurance carrier staff the needed information — such as measurements, materials, and a sketch document — to be able to evaluate the loss damages from their office.” After this, CodeBlue’s certified IICRC staff use the proprietary software with the sci-

“ We’re highly customisable to insurance carriers and provide a suite of property claim solutions and virtual damage inspection strategies that insurance carriers can choose” — Jason Manns, COO, CodeBlue

ence of drying to proactively create

insurance carrier field staff coverage

a water mitigation drying plan with

locations,” he says. “Our success

the on-site contractor to restore wet

is driven by our ability to identify the

materials instead of replacing them.

best virtual inspection solution for

This keeps the focus on returning the

each specific claim, with inspection

policyholder to pre-loss condition

methods including policyholder self-

in the fastest, most efficient and least

service, contractor dispatch, and the

disruptive manner possible.

deployment of CodeBlue W2 staff.

To deliver the highest level of detailed

All virtual damage inspections utilise

loss documentation, CodeBlue uses

our proprietary claim software and

a combination of 3D cameras, digital

digital technologies to meet a policy-

applications and video chats to cap-

holder’s specific needs. This assists

ture the loss in a virtual environment,

insurance carriers with the effective

which allows insurance carrier staff

management of labor and the expenses

to tour the site from their computer

associated with large workforces,

or mobile device. “Our virtual damage

while reducing the inefficiencies

inspection solutions vary and are

of supplemental claim payments.”

determined by the type of loss and

Bamboo Insurance founding member w w w.f i nte c hma ga z i n e. com

29

CODEBLUE

“ Our success is driven by our ability to identify the best virtual inspection solution for each specific claim, with inspection methods including policyholder self-service, contractor dispatch, and the deployment of CodeBlue W2 staff” 30

— Jason Manns, COO, CodeBlue and Chief Advocacy Officer, Stann Rose, explained: “Code Blue’s partnership and technology has enabled Bamboo Insurance the ability to scale operations from a startup into a high

Since no partnership is the same, Manns

growth company by providing imme-

emphasises the importance of listen-

diate information gathering, coverage

ing to partners to understand their

identification and faster claim han-

desired operating model and individ-

dling which has translated to high

ual needs. “We’re highly customisable

policyholder satisfaction.”

to insurance carriers and provide

CodeBlue partners with companies

a suite of property claim solutions and

throughout North America, including

virtual damage inspection strategies

three of the top 10 insurance carriers

that insurance carriers can choose.

in the US, regional insurance carriers

Insurance carriers like to partner with

and insurtech-like startup companies.

established companies with a history

MARCH 2020

2004

Year founded

$63mn Revenue in US dollars

455

Number of employees

of success, while simultaneously

solutions centered on virtual inspec-

providing innovative services with

tion strategies inside the home and

technology at the core. CodeBlue

building, they continue to focus on

has been providing property claim

the next innovations to achieve best

solutions to insurance carriers since

-in-class performance levels for poli-

2004 and is leading the way in making

cyholders and insurance carriers.

technology transformation easier for insurance carriers that choose to embrace innovations.� While Manns and the CodeBlue team provide industry-leading property claim w w w.f i nte c hma ga z i n e. com

31

FINTECH

32

BRAND BUILDE MARCH 2020

D ER

33

What does it take to turn an $800 investment into a $500mn company?

Nerdwallet CEO and Founder Tim Chen told Money20/20 WRITTEN BY

MATT HIGH

w w w.f in tech ma ga zi n e . c o m

FINTECH

G

reat ideas are often borne of necessity. That’s certainly

true of the fintech sector, where the genesis of many of the most successful startups and innovators lies in an original and inventive solution to a particular problem. Tim Chen, founder and CEO of Nerdwallet, is a great example of this. The 35 year-old entrepreneur sprung upon the idea behind the US-based per34

sonal finance company in 2009 when, he says, he was “sitting around twiddling my thumbs” having lost his job as a result of the financial crash.

Chen’s story is particularly interesting, given the way in which Nerdwallet

Chen and Nerdwallet’s story began

grew organically from a single

with an email from his sister, who was

spreadsheet for a family member

living in Australia at the time and, like

to a successful fintech business that

many others facing a financial deci-

reaches some 100 million people

sion was having difficulty finding

and is worth in excess of $500mn.

answers regarding her search for

He took to the stage at last year’s

a credit card with lower foreign trans-

Money20/20 show in Las Vegas

action fees. “Like all of us, my first

to elaborate on this journey as part

instinct was ‘let me Google that for

of a keynote speech titled How

you’,” he told the audience. “Basically, I

Nerdwallet turned an $800 invest-

found a load of infomercials, a lot of

ment into a $500mn company.

marketing or promotional material

MARCH 2020

35

“ If you want to build a brand where you’re not competing on scale or price, it makes a lot of sense to bootstrap and build organically” ­— Tim Chen, Founder and CEO of Nerdwallet

and nothing close to actual real information.” And so he set about finding the answers himself. Prior to Nerdwallet Chen had been a financial analyst, experience that he put to use building out a spreadsheet over the course of a week or so that clearly identified the offers of a number of large banks and credit card companies. The spreadsheet, which broke down the various options, was then emailed back to his sister. w w w.f in tech ma ga zi n e . c o m

FINTECH

“I was using experience I already had, and it was fun,” he explained.

was and how many people would

“She found the information really

be looking for the kind of service

helpful and from there it started to

we offered, made it clear that we

get circulated around other friends;

could extrapolate it towards a very

I thought pretty quick that, if I’d done

sustainable business.”

all this work and it was proving popular, why not just put it out there on the internet and let others access it.”

The popularity of the data saw Chen realise the ‘shopability problem’ that existed in financial services: unless consumers actively seek profes36

but knowing how big the market

sional financial advice it’s difficult to compare products or find readily available answers to what are often relatively straightforward problems.

“Most people don’t want to spend their weekends making a spreadsheet,” he told the Money20/20 audience, elaborating on the moment he saw the potential in Nerdwallet becoming something larger. “I think by year two we had a pretty decent audience. It was still relatively small, but maybe 30,000 to 40,000 people per month were visiting to get the advice that they needed. We weren’t making much in terms of revenue, MARCH 2020

Today, that ‘sustainable business’ reaches around 100 million Americans

NerdWallet | Want a better credit card?

CLICK TO WATCH

|

0:15

37

“ Knowing how big the market was and how many people would be looking for the kind of service we offered, made it clear that we could extrapolate it towards a very sustainable business” ­— Tim Chen, Founder and CEO of Nerdwallet

every year according to Chen, with the most engagement coming from customers between the ages of 20 and 65. Nerdwallet’s growth is typical of many innovative startups that venture into the market and, as Chen told Money20/20, the scale and pace of change is one of the challenges any entrepreneur must deal with. “The vision since 2009 has been somewhat consistent,” he explained, “but what’s changed is how I have had to think about my role in relation to the company.” w w w.f in tech ma ga zi n e . c o m

FINTECH

Running with this theme, Chen used the analogy of a basketball team — when starting out you have to be “the one scoring all the points and directing the small team”. But, he noted, “over time you become the coach, then the general manager, at which point you realise that your product is no longer really your product. Instead, you’re akin to the governing board of the business, the regulator and legislative or judicial branch.

At some point you have to stop and 38

ensure everything is correctly in place to manage the growth, and that’s the transition I had to go through.”

Of course, with that process comes — for many entrepreneurs — the personal challenge as a result of transitioning from the innovator or driver

“ It takes a lot of hubris and lack of self awareness to say ‘I’m going to start a company and do better than anyone else’” ­— Tim Chen, Founder and CEO of Nerdwallet

MARCH 2020

of an idea to the more formal title of CEO. Chen, like many others, described this as a tough learning curve, stating “it takes a lot of hubris and lack of self awareness to say ‘I’m going to start a company and do better than anyone else’ — you have to be lucky too”.

He continued: “At some point you have to fundamentally change your mindset and be open minded enough to see the opportunities and the changes happening around you.

Things like building the right team to change my job, to take my ego out of decisions and disagree with me and so on. They’re pretty natural growing pains that entrepreneurs, CEOs and leaders go through.”

With growth comes the seeking of funding or further investment with which to scale startups. According to research by CB Insights, for example, fintech startups raised $33.9bn in 2019 worldwide. While this figure is slightly down on that of 2018, which saw $40.8bn invested in startups, it demonstrates the voracity with which keen investors are willing to be involved in innovation in the sector. w w w.f in tech ma ga zi n e . c o m

39

FINTECH

“ The vision since 2009 has been somewhat consistent, but what’s changed is how I have had to think about my role in relation to the company” ­— Tim Chen, Founder and CEO of Nerdwallet

We had no money, so we knew we couldn’t compete on performance marketing with the larger players.

Rather, we were forced by the

40

Nerdwallet, according to Chen, has

constraints on us to really focus on

“a bit of an unusual funding story as

building organic traffic and proper

people don’t like to invest in what they

media relationships. It was a great

perceive to be content or medium

foundation.”

businesses in Silicon Valley. Overall,

Asked how other fintech entrepre-

Nerdwallet has raised a total $105mn

neurs should approach the funding

across four funding rounds.

question, Chen offered two trains of

“The fact we didn’t really get any

thought. “If you want to be a ‘winner

funding for the first five or six years

takes all’ business where scale is all

was, in hindsight, actually something

that matters, then frankly it’s abso-

of a blessing,” Chen said. “It meant

lutely rational to raise a significant

we didn’t have all the pressure that

amount of money and buy your way

comes with investment, to build rev-

into the market. If you want to build

enue and so on, but rather could

a brand where you’re not competing

focus on the things that were impor-

on scale or price, it makes a lot of

tant to us like building out our brand,

sense to bootstrap and build organi-

buying Google AdWords and becom-

cally. It’s important to think long-term

ing super efficient with things like

too. Are you competing on price with

optimising our pages for monetisation.

incumbents which have decided not

MARCH 2020

41

to compete with you, or are you actu-

“You can specialise in niches that no

ally building a brand where you’re

big player can compete with you on

going to be immune from those pres-

and it’s a great place to start to build

sures? That’s an important decision

a durable foothold.”

to make for any entrepreneur.

“As someone who’s come from the background of building this brand, I think there is a huge advantage for being small,” he continued. w w w.f in tech ma ga zi n e . c o m

INSURANCE

42

THE YEAR OF INSURTECH

MARCH 2020

43

FinTech breaks down some of the key technologies behind the digital transformation of the insurance industry, and explores the startups behind their rapid adoption WRITTEN BY

HARRY MENE AR

w w w.f i nte c hma ga z i n e. com

INSURANCE

A

s the technological transformation of the global business landscape continues, more and more industries

are feeling the pressure to embrace the potential of digital solutions, or be consigned to the scrapheap. In the unending quest for legacy industries to stay agile and avoid disruption, leading edge technologies are fusing with existing business models to create new, tech-driven disciplines. Fintech has been one of the great success stories of this trend, as financial institutions harness the power of artificial intelligence (AI), big data and multi44

platform customer experiences (CX) to meet the expectations of their customers.

One subset of the fintech space that’s proven to be ripe for innovation and disruption in the past few years is the insurance industry. As one of the oldest financial businesses, insurance has traditionally been a market that’s slow to adopt, cautious and favours those with deep pockets who already have a seat at the table.

Embracing new avenues for value creation are a new breed of companies. Fusing leading edge technology with a venerable profession (much like the 1980s cult classic Robocop) “insurtech” (insurance is to law enforcement as value-added digitalisation is to cybernetic abs and a big gun) is applying data analytics, MARCH 2020

45

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INSURANCE

46

AI, machine learning (ML) and a host

HELLO, HOW MAY I HELP YOU?

of other new solutions to the space.

Chatbots have been around since

This digital transformation has seen

before the internet. The very first

a huge diversification of services

one, called ELIZA, was built in 1966 by

and streamlining of operations begin

MIT professor Joseph Weizenbaum.

to sweep the industry. Like challenger

It used a pattern matching system to

banks a few years ago, insurtech

simulate a human conversation and

firms are offering “ultra-customised

gave a series of scripted responses

policies, social insurance, and using

designed to have it play the role of

new streams of data from internet-

a therapist. In the 53 years since

enabled devices to dynamically

then, chatbots have grown increas-

price premiums according to

ingly sophisticated. Today, they’re

observed behavior.”

a vital part of the way companies

More and more new applications

interact with their customers, with

are being applied and developed

applications covering everything

in this emerging industry. Here is

from content delivery to conver-

a run through of some of the key

sational ecommerce. By 2025, the

technologies behind the digital

global chatbot market is expected

transformation of this industry,

to reach $1.25bn.

and an introduction to the startups behind their rapid adoption.

A report released last year by IT services company Cognizant is

“ Chatbots are integral to many enterprise initiatives focused on business modernisation and digital customer experience” — Cognizant

MARCH 2020

confident that chatbots are set to

chatbots are even part of the core

be at the core of a digitally trans-

value proposition.

formed insurance sector: “Chatbots

Meet Lemonade, perhaps the

are integral to many enterprise initia-

most well-known poster child for the

tives focused on business modernisa-

insurtech revolution. Based in New

tion and digital customer experience.”

York, the $2bn startup has exploded

Chatbots’ ability to offer a customised

across the US market, becoming the

experience 24/7 with lower pro-

top rated provider of renter’s insur-

cessing time and faster resolution

ance in the country.

is expected to generate over $8bn

“In less than three years, Lemonade

in savings globally by 2022. In the

has expanded across the US, given

new generation of insurtech firms,

back to dozens of charities chosen 47

w w w.f i nte c hma ga z i n e. com

INSURANCE

“ We aspire to create the 21st century incarnation of the successful insurance company” — Daniel Schreiber, CEO and co-founder, Lemonade

These claims bots are so good that,

on December 23, 2016, it set a world record for the fastest processed insurance claim in history, receiving a claim

by our community, and fundamentally

for a $979 coat, checking the claim

changed how a new generation of

against the policy, running 18 anti-fraud

consumers interacts with insurance,”

algorithms and making the payment —

said Daniel Schreiber, CEO and co-

all in just three seconds.

founder, Lemonade. “Looking forward, 48

incarnation of the successful insurance

WHERE WE’RE GOING WE DON’T NEED ROADS…

company: a loved global brand that can

From bringing medical supplies to

endure for generations; an organisation

remote villages in Africa to dropping off

built on a digital substrate, enabling ever

an ounce of weed to a frat house in San

faster and more efficient operations,

Francisco, drones have become an inte-

and ever more delighted consumers.”

gral part of the modern logistics pipeline.

we aspire to create the 21st century

Lemonade’s selling point is the level of personalisation and flexibility it can offer its customers. To achieve this,

They’re also finding a less obvious niche in the burgeoning insurtech market.

As the global climate crisis worsens,

it heavily relies on its app-based chat-

natural disasters ranging from fire

bots. Powered by AI, these bots can

to flash flooding are becoming more

craft personalised insurance policies

and more common. After one of these

and quotes for customers right in the

disasters, it’s important that insurance

Lemonade app, and respond quickly

companies are on the scene quickly to

to a variety of customer queries and

assess the damage and start paying

process claims.

out claims to affected people. This

MARCH 2020

poses a problem if a hurricane has just

enhances damage estimate accuracy,

torn through the nearest airport and

and reduces indemnity and loss adjust-

the roads are flooded.

ment expenses.

Thankfully, drones offer a world of new data collection opportunities and can

WEAR AND TEAR

gain access to areas too remote even

Data collection and analysis is at the

for surveyors in helicopters.

heart of how insurtech companies

One startup uses drones to provide

understand risk and determine their

live, on-demand video inspections as

clients’ policies. As developments like

part of the claims-handling process.

5G and the expansion of IoT devices

Founded in 2015, DropIn Inc is a Los

find more and more applications in

Angeles-based startup that provides

the workplace, the ability for watches,

an on-demand, live video platform which

vehicles, and even clothing, to feed

enables more precise underwriting risk

data into a network is redefining the

assessments, speeds claim resolution,

way that insurtechs gather information.

Insurtech explained CLICK TO WATCH

|

3:00

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49

INSURANCE

“Health ecosystems are essential for the future success of those operating in the life sector,” affirms a recent report by KPMG. “Wearables are increasingly contributing to this market, and without access to these datasets, insurers will not be able to manage risks or engage with their customers.”

In the US, insurers have begun offering their customers premium discounts in exchange for data from their wearable health monitors.

50

Insurer John Hancock’s policies have

“ Things like lighting and temperature can vary greatly in the space a few feet. All of those things can impact the health, wellbeing, happiness and safety of a worker” — Gabriel Glynn, CEO and co-founder, MakuSafe

gone one stage further, according to KPMG, by requiring fitness tracking

compensation claims. MākuSafe’s

data to be submitted. This lends

platform then collates the data in

credibility to wearables data as a

the cloud, presenting it to insurers

valid new source for risk assessment,

in a dashboard.

rather than simply a distribution loyalty gimmick.

“We set out with the purpose of trying to solve two problems. We wanted

MākuSafe, an Iowan startup, offers

to gather data constantly and in real-

a full solution to insurers and compa-

time, so we can identify before some-

nies to increase data collection and

one ever gets close to a dangerous

compliance. The company uses a

exposure. Secondly, we wanted the

device similar to a Fitbit to capture

device to be wearable. The environ-

and measure workplace environmen-

ment in manufacturing facilities is

tal data and hazards to improve work-

always changing, which is another

place safety, and helps insurers and

reason why constant real-time data

carriers better process workers’

monitoring is so important. Things

MARCH 2020

51

like lighting and temperature can

large, legacy businesses that are

vary greatly in the space a few feet.

in danger of being disrupted into

All of those things can impact the

the history books by a wave of agile,

health, wellbeing, happiness and

sophisticated, hungry insurtechs.

safety of a worker,” said MākuSafe

Digital transformation has the ability

CEO and Co-Founder Gabriel Glynn

to streamline processes, expand

in a recent interview.

capabilities, and ensure that companies’ offerings are tailored to the

LOOKING TO THE FUTURE

needs of the consumer. It’s time for

Insurance isn’t the first industry to

the whole industry to take a look at

feel the effects of disruptive technol-

the sector-wide transformation all

ogy, and it won’t be the last. However,

around them and decide whether to

it is an industry with a high number of

be the disruptors or the disrupted. w w w.f i nte c hma ga z i n e. com

PAY M E N T S O L U T I O N S

52

FINTECH: THE KEY TO DUBAI’S SMART CITY? As the UAE overcomes regulatory hurdles, we explore how Dubai is going to leverage fintech in order to become a truly smart city

WRITTEN BY

MARCH 2020

A MBER DONOVAN-S TE VENS

53

?

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PAY M E N T S O L U T I O N S

T

he Middle East is the embodiment of

the speed at which humans evolve, taking dusty expanses of land and

building smart cities that overtake nations

which have stood centuries longer. Cities such as Abu Dhabi are an exciting monument to the technological revolution taking place, and planned new urban sprawls like Masdar in Abu Dhabi and Neom in Saudi Arabia prove that the UAE doesn’t plan to slow down any time soon.

54

In recent years the fintech industry has been dominated by US and European markets with scarce mention of the UAE, which has been responsible for just US$66.6mn of investment, according to the Magnitt State of the Middle East and North Africa Funding report. However, when it comes to harnessing financial technology to foster the creation of smart cities, the UAE remains ahead of the curve. With that in mind, it’s worth considering what, if anything, is holding the region back from occupying a more prominent position in the industry. One potential hurdle to the acceleration of UEA smart cities, as well as their position as leading fintech players, is the current financial and legal regulation in the region.

MARCH 2020

55

The Middle East has long been recognised as being slow to adopt international legal standards. According to Clifford Chance: “In many cases, this can be due to linguistic or cultural approaches or through the necessity of prioritising core structural reforms to promote economic and social stability.� In addition to this, Sharia laws are applied at varying degrees across the region. However, Islamic finance is quickly evolving and this extends to fintech. The Dubai International Financial w w w.f i nte c hma ga z i n e. com

PAY M E N T S O L U T I O N S

“ We aim to continue this momentum and growth through our evolving regulatory environment and the quality of collaborators we bring into the DIFC, as our vision of driving the future of finance 56 becomes a reality” Arif Amiri, Chief Executive Officer of DIFC Authority

Centre (DIFC), for example, has led in addressing Islamic fintech regulations and its success is already evident. The Sharia Review Board in Bahrain has recently certified Stellar, which is the first DLT protocol to be Sharia-compliant.

Fintechs still have a way to go. While regulatory regimes are coming into place, such as the UAE’s creation of ‘financial free zones’, upscaling businesses is still a challenge as operations MARCH 2020

in new consumer markets require additional local licensing. But this is changing.

The number of regulatory sandboxes are growing, and the newly-implemented crowdfunding regulations in the DIFC, will allow companies to obtain new forms of operating licenses. In addition, there is a wealth of opportunity to partner with existing banks in the UAE. As these regulations evolve, projections for the region have greatly increased. Since 2015, the number of fintechs in the UAE is expected to grow

DIFC Rises to the Occasion as it Celebrates 15 Years CLICK TO WATCH

|

0:30

57

by as much as 230%, from 559 companies. By 2022, the fintech market is estimated to reach a value of $2.5bn across the broader MENA region, according to Accenture. To understand these projections, we take a closer look at the city of Dubai, which closely leverages financial technology with smart city initiatives.

SMART DUBAI Smart Dubai is an institution championing smart city initiatives across the region in a bid to make Dubai “the happiest city on earth�, a vision w w w.f i nte c hma ga z i n e. com

PAY M E N T S O L U T I O N S

set out by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, 58

Vice-President & Prime Minister of the UAE. The initiative seeks to harness AI, data and blockchain in order to drive Dubai’s economy and achieve the ultimate goal of making it entirely

STARTUP SUPPORT

paperless. Banks are notorious for

As a part of Dubai’s Smart City initia-

paper waste and in order to digitally

tive, it will support startups in three

transform these services incumbents

components: Global Blockchain

will either need to develop in-house

Challenge, the Dubai Smart City

solutions, or obtain assistance from

Accelerator and Dubai Future

fintechs. Government-owned bank,

Accelerators. These will seek to

Emirates NBD, is driving this change

nurture blockchain, AI, ML, IoT and

by undertaking one of the largest

connectivity in order to drive a

digital transformations in the region.

smarter government, transporta-

In addition to this, it also launched

tion and retail sectors. The Dubai

digital banks Liv and E-20, which are

Smart City Accelerator is powered

driving fintech capital.

by Startupbootcamp, a European

MARCH 2020

to becoming a paperless, smart city.

The key way it nurtures fintech growth in the region is through The FinTech Hive, which runs an annual accelerator programme that provides mentoring, funding opportunities and marketing company that supports early-stage

exposure to fintech, insurtech, regtech

tech companies and plays a supple-

or Islamic fintechs. It received 425

mentary role to supporting fintechs.

applications for the programme, a 42% increase from its 2018 event. As

THE DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC)

of September 2019, the centre has

The DIFC is the region's largest

Amiri, Chief Executive Officer of DIFC

financial ecosystem, comprising over

Authority said: "We aim to continue this

24,000 professionals across 2,200

momentum and growth through our

companies. The institution drives

evolving regulatory environment and

the future of finance, which will con-

the quality of collaborators we bring

tinuously play into the technological

into the DIFC, as our vision of driving

advancements that take Dubai closer

the future of finance becomes a reality.�

registered over 100 fintech firms. Arif

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59

PAY M E N T S O L U T I O N S

The DIFC also recently announced the launch of a new onboarding platform designed to meet Dubai’s Smart City needs. Alya Al Zarouni, Executive Vice President of Operations, DIFC Authority, said: “Adopting the latest technology and innovation reflects our culture, values and commitment to the Smart Dubai 2021 strategy and we fully believe the new digital onboarding journey will deliver client satisfaction supported by value add tools at every step.”

60

INTERNATIONAL INVESTMENT Dubai is continuing to gain a notable amount of attention from international banking and fintech firms. A number of companies have signed onto the DIFC, including UK-based architect of digital banking and payment solutions company, Bankable, and global mobile payment technology company QFPay, which provides backend solutions to Alipay and Wepay.

Channel VAS is a leading European fintech provider of mobile financial services that currently operates in the Middle East. Bassim Haidar, Founder and CEO of Channel VAS has said that fintech is one of the most important MARCH 2020

growth factors in regions like the Middle East. He explained that “it has the benefit of bridging gaps through initiatives like micro and nano loans that, in many countries, the traditional, brick and mortar banking sector cannot cover. For every hi-tech city like Dubai, there are scores of financially underserved areas where fintech services do not only offer convenience, but they cover necessities for people that cannot otherwise be financially included. So, adopting technologies that offer scoring and nano loans should be seen as building bridges to financial inclusion and not as a disruption, as is still often the case.

“The Dubai example clearly shows that having a functional regulatory framework is as important for a ‘smart’ hi-tech city as it is for every Middle Eastern country,” Haidar added. “Adopting a clear, concise and solid regulatory system across the region, will help in spreading the fintech benefits to more and more underbanked, or even entirely unbanked people, thus broadening financial inclusion.”

For many institutions external to the UAE, partnerships are the best way to enter the region's industry. Mastercard w w w.f i nte c hma ga z i n e. com

61

PAY M E N T S O L U T I O N S

announced its partnership in September

day-to-day activities seamlessly. As a

2019 with the Dubai Roads and

leader in bringing cutting-edge solu-

Transport Authority (RTA) that would

tions to cities worldwide, Mastercard is

see the two companies collaborate to

engaging with governments across the

enhance public transport inline with

globe to harness contactless and open-

Dubai’s Smart City Vision.

loop technologies in order to make cities

Commenting on the partnership,

more connected, efficient and inclusive.”

Khalid Elgibali, Division President, Middle

62

East and North Africa, Mastercard

EXPO 2020 DUBAI

said: “With 70% of the world’s popula-

EXPO 2020 takes place in Dubai from

tion expected to live in urban areas as

20 October 2020 to 10 April 2021.

early as 2050, cities must adopt smart

According to Dubai Media Office,

innovations to become more efficient

Dubai’s World Expo is expected to

and enable people to go about their

welcome 25 million visitors from over

MARCH 2020

The Stage Is Set to Welcome the World CLICK TO WATCH

|

0:57

63 190 countries that will make up almost

the conference will provide a wealth of

1.5% of the UAE’s annual GDP. The

opportunities.

UAE’s Minister for AI Omar Sultan

Commenting on the collaboration

Al Olama has openly expressed the

between Expo 2020 and DIFC, Arif

event as the greatest exhibition in his-

Amiri, Chief Executive Officer, DIFC

tory, as it is predicted to have a $30bn

Authority, said: “The flagship event

ripple effect across the UAE.

during Expo 2020 is an important

The DIFC is set to host the Flagship

milestone as we continue on our jour-

Future of Finance conference at the

ney to transform the future of finance

expo, which will last two days, welcom-

throughout the MEASA region and

ing a wealth of global leaders to discuss

globally,” he went on. “There is a robust

technological trends and build upon

link between innovation and growth. A

opportunities to invest in the MEASA

key factor propelling economic devel-

region. As 70% of this region has little

opment in the region is technological

or no contact with financial services,

innovation, which has created new w w w.f i nte c hma ga z i n e. com

PAY M E N T S O L U T I O N S

value propositions, attracted new global investment and generated a diversification of sector opportunities. Therefore, it is no surprise that the region is significantly shaping financial innovation.

With a young and cosmopolitan population of well-educated, highly mobile and connected individuals, alongside tremendous investment potential, the region represents a dynamic financial

“ Fintech is one of the most important growth 64 factors in regions like the Middle East.

It has the benefit of bridging gaps through initiatives like micro and nano loans that, in many countries, the traditional, brick and mortar banking sector cannot cover�

Bassim Haidar, Founder and CEO of Channel VAS MARCH 2020

ecosystem with increasing diversity in financial products and services. For companies keen to capitalise on these emerging markets, this is a multibillion dollar opportunity to bank on the future of an ambitious and dynamic region.�

As this new decade begins, Dubai, along with the rest of the UAE, is in a position of untapped potential. With EXPO 2020 on the horizon, major

65

global players in the fintech industry are turning to the Middle East. As cities like Dubai drive every industry to innovate the smart cities of the future, finance is finally overcoming rprevious regulatory challenges, and could contribute towards propelling Dubai to become both the smart city it aspires to and quite possibly the fintech capital of the world. w w w.f i nte c hma ga z i n e. com

T O P 10

66

MARCH 2020

Fintech innovators under 30 As digital innovation across the financial sector continues to surge, FinTech Magazine shares, in no particular order and with reference to Forbes, the top 10 millenials who are pioneering the future of the industry

WRITTEN BY

AMBER DONOVAN-STEVENS

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67

T O P 10

CEO of Ocrolus Sam Bobley has business opportunites For You CLICK TO WATCH

68

10

|

6:51

Sam Bobley [ 28 - C O - F OUNDE R A ND CE O ]

Sam Bobley is co-founder and CEO of Ocrolus, a fintech infrastructure company that transforms documents into actionable data. The platform is powered by AI and boasts a 99% accuracy rate in its readings. It can connect directly into customer workflows through an API, reducing the need for manual data work significantly. Ocrolus is predominantly used for loan underwriting, invoice processing, account openings and other document-intensive processes. So far it has raised over US$30mn in venture capital and is currently valued at $100mn.

MARCH 2020

09

Amber Feng [ 29 - HE A D O F F IN A NCIA L I N F R AS T RU CT U RE , S T RIP E ]

Amber Feng has held an instrumental role at fintech giant Stripe since the company’s inception in 2012. She was one of the first 10 employees of the US$35bn software company and wrote the majority of the code for its product, Stripe Connect, which has gone on to connect payments between platforms like Lyft, Shopify and Kickstarter and their respective customers. She has worked her way up through the company, at one point leading a team of 100 individuals as the Head of Infrastructure. She now heads up Stripe’s new corporate credit card which was launched in September 2019.

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69

N W

E z

In close cooperation As a family-owned IT solutions provider founded on craftsmanship, we work in close cooperation with our customers.

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We help organizations create frictionless and highly personalized experiences for their customers, consumers and citizens.

Find us:

08

71

Paul Gu [ 29 - C O-F O U NDER A ND HE AD OF P RO DU CT, U P S TA RT ]

Paul Gu is the co-founder and Head of Product at the online financial service Upstart, which was founded in 2012. The lending platform uses unconventional information pertaining to the applicant in order to assess borrow risk, such as the applicant’s higher education. It offers three-year and five-year fixed interest loans, designed to pay off credit cards and consolidate debt. Gu heads the data science team responsible for this alternative model, which approves 27% more applications than other models, according to a CFPB study.

w w w.f i nte c hma ga z i n e. com

T O P 10

07

Tatyana Mitkova [ 26 - FOUNDER AND CEO, CL AIM COMPASS ]

After studying Law at Freie Universität Berlin, Tatyana Mitkova went on to become the founder and CEO of ClaimCompass, a legal service which assists passengers with flight compensation for cancelled, overbooked and delayed flights. The platform works on the basis of EU Regulation 261/2004, which is a regulation often kept quiet by airlines. Users can submit a claim in under two minutes and have access to customer service reps that speak 11 languages.

72

ClaimCompass CLICK TO WATCH

MARCH 2020

|

0:39

73

06

Shashank Murali [ 25 - C O- FO U NDER A ND CEO , TA P CH IE F ]

Shashank Murali is the co-founder and CEO of TapChief, a platform designed for professionals to learn from experts in their industry without needing to work fulltime. The Bangalore-based fintech has received US$2.5mn in funding and is used by over 60,000 professionals who have exchanged 75,000 hours of expertise through it’s platform. TapChief is not the first company that Murali has founded. Previously, he co-founded the on-demand tutoring platform Edvice, which was acquired by edtech company HashLearn.

w w w.f i nte c hma ga z i n e. com

Driving insurers

digital future into a

At Cognizant, we’ve invested in the end-to-end capabilities needed to help insurance organizations not just do digital, but be digital. We partner with our clients to unlock new value and through the power of digital technologies and new ways of working, we help them evolve into more competitive, progressive versions of themselves.

Learn more at Cognizant.com

Copyright Š 2019 Cognizant

75

05

Rachel Carpenter [ 29 - C O-F O U N DER , IN T RINIO ]

Founder and CEO of Intrino, Rachel Carpenter, is certainly something of an influencer in the industry. The financial data company specialises in providing affordable data to developers and engineers from fintech companies, large institutions, hedge funds, startups and universities.

Since its founding in 2013, the company has provided data for Harvard and Stanford, as well as major payment platform PayPal. Carpenter also writes for the Forbes Financial Council.

w w w.f i nte c hma ga z i n e. com

T O P 10

76

04

Laura Behrens Wu [ 27 - C O-F O U NDER A ND CEO , S H IP P O ]

Laura Behrens Wu is the founder and CEO of Shippo, and one of the most influential millennials to get a slice of the ecommerce pie.

She and Simon Kreuz co founded the American software company in 2014 in a bid to assist ecommerce businesses by integrating shipping with multiple carriers through its API and web application.

It has over 10,000 customers using its platforms across 196 countries and was named a ‘Shipping and E-Commerce Innovator’ by the United States Postal Service in 2019.

MARCH 2020

03

Michael Bloch [ 28 - CO-FOUNDER AND CEO, PILLAR ]

In 2019, global student loan debt climbed to an astonishing US$1.41trn, the highest amount spent in history. As education debt grows, fintechs are moving to consolidate this debt with innovative technology. Entrepreneur Michael Bloch is the co-founder and CEO of Pillar, a mobile app designed to manage student loan debt by recommending repayment rates to users.

Though the Kleiner Perkins-backed app is little over a year old, it is continuously expanding the type of loans it supports and has been met with a greatly positive reception from its users across the US.

77

w w w.f i nte c hma ga z i n e. com

T O P 10

02 78

Jennifer Campbell [ 2 6 - C O - F O U N D E R , TA G O M I ] Jennifer Campbell is the co-founder of Tagomi, an electronic brokerage for digital assets firms which combines the institutional-grade services and the robust infrastructures expected of other industries. After completing a degree in Statistics at Harvard and working for two years in venture capital, she co-founded Tagomi with CTO Greg Tusar in 2018. Tagomi is connected to nine cryptocurrency exchanges and has over 275 institutional trading clients, according to Forbes.

MARCH 2020

79

Meet Tagomi, the End-to-End Crypto Solution CLICK TO WATCH

|

5:07

w w w.f i nte c hma ga z i n e. com

T O P 10

01 Ryan Breslow [ 2 6 - C E O , B O LT ] Ryan Breslow embodies the image of a college tech genius. In 2014, aged 20, he left Stanford’s Computer 80

Science programme in order to co-found the financial services provider Bolt with Eric Feldman. Bolt seeks to improve the checkout experience for online retailers by creating “the perfect online checkout”. The platform claims to reduce the time spent checking out by 50% compared to competitors. It has raised over US$90mn in funding and has been recognised for its success

by Forbes, Fortune and now FinTech. Today, Breslow leads a team of over 150 employees across the fintech’s Salt Lake City and San Francisco locations.

MARCH 2020

81

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EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the world for fintech leaders

9-10 MAR 2020

Future Digital Finance

82

10-11 MAR 2020

MoneyLIVE, Spring [ MELIÁ AVENIDA AMÉRICA, MADRID ]

[ MIAMI, FLORIDA ]

MoneyLIVE is a leading UK conference

Taking place this year at the Hyatt

that specialises in retail banking. This

Regency Miami, Florida, Future Digital

year, the annual spring event kicks off

Finance launches its 2020 annual con-

in Meliá Avenida América, Madrid, Spain,

ference, welcoming a host of speakers

with a number of speakers from over

from companies such as Greenlight

40 countries to engage on industry chal-

Financial, Ally, United Federal Credit

lenges facing fintechs today. Notable

Union, First Commonwealth Federal

speakers include Anne Boden, CEO,

Credit Union, Teachers Credit Union,

Starling Bank, Carlos Kuchkovsky,

Western Union, and many more. Future

CTO, New Digital Business BBVA, and

Digital Finance is a part of Worldwide

Eric Tak, Global Head of ING Payments

Business Research LLC, which differ-

Centre, ING Bank. One particularly inter-

entiates itself from other conference

esting feature of this event is that

production companies by avoiding

delegates have the opportunity to have

conference halls and opting for top tier-

1:1 meetings based upon Brella’s plat-

resorts. For example, it organises the

form, which allows them to scroll

entirety of the event, from concept

through a suggested list of connections

through to topic delivery, while also

that are in attendance, offering a new

staffing it entirely with its own team.

way to network at conferences.

MARCH 2020

EDITED BY

AMBER DONOVAN-STEVENS

17-18 MAR 2020

Insurtech Insights Europe 2020

30-31 MAR 2020

[ THE ROYAL LANCASTER, LONDON ]

Insurance Innovators: USA 2020

The annual Insurtech Insights Europe

[ MUSIC CITY CENTER, NASHVILLE ]

event is back for 2020 and will take

This year’s Insurance Innovators event

place in London. This edition expects

will be a carrier-led conference, gather-

to see over 2,500 leaders hear from

ing 300 of the top minds in the industry

over 200 speakers. Some 500

to collaborate on new projects and

insurtech startups will be in attendance,

share ideas via the two-day event. Want

showcasing demos and building upon

to get the best from this event? Arrive

marketing opportunities. The top

one day earlier for the pre-event mixer,

names in insurance will be amongst the

which will take place in the 21 Floor bar

network, including Zurich, Axa, Allianz

at the HQ hotel. All attendees are wel-

and Aviva. As the insurtech industry

come from 18:00 to 20:00 for drinks

continues to grow at an exponential

and canapes. Attendance also lets

rate, key topics under discussion will

visitors to the event fastrack entry by

include how AI, customer experience

collecting their badge early and skip-

and claims all affect the value chain.

ping queues the next day.

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83

EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the world for fintech leaders

31 MAR 2020

Disruption Forum 84

5-8 APR 2020

KNOW Identity [ LAS VEGAS, NEVADA ]

[ RISE NY, NEW YORK ]

The KNOW Identity conference is

As one of three of Netguru’s events,

focused on digital identity, trust and

the Disruption Forum lives up to its

the data economy, with an emphasis

title: by gathering together fintechs

on uniting and transforming the mil-

that are disrupting the industry. As this

lions of non-interoperable platforms

event returns to London, experts

operating today. Key topics of discus-

from brands such as Plaid, Stash and

sion will include biometrics and

Policygenius will be in attendance.

multi-factor authentication, privileged

Valentina Kristensen, Growth and

access management, cloud IAM and

Communication, OakNorth, said of the

ISaaS, Customer Identity and Access

event: “I loved the panel, a really good

Management (CIAM), and many other

debate there. I also enjoyed the net-

trending topics around identity in the

working part – the room was packed

payments industry today. Over 2,000

with people from startup businesses,

thought leaders are currently regis-

established corporations, fintech

tered to attend from 500 companies

companies, banks, and consulting.”

more than 35 countries.

MARCH 2020

EDITED BY

AMBER DONOVAN-STEVENS

20-21 APR 2020

IFGS Finance [ GUILDHALL, LONDON ]

IFGS is back for its sixth installment, tak-

25-27 AUG 2020

ing place at London’s Guildhall, where

Money 20/20 Asia

more than 2,500 senior delegates will

[ MARINA BAY SANDS, SINGAPORE ]

congregate to showcase the top

One of the biggest events of the year,

advancements of the industry. Speakers

Money20/20 Asia is a must for any

from some of the hottest fintechs will

fintech innovators, distributors or inves-

be delivering keynotes, including Anne

tors. The first of three Money20/20

Boden, CEO and Founder, Starling Bank,

events to take place in 2020, the Asia

David Blumberg, Founder & Managing

conference has hosted a number of

Partner, Blumberg Capital, Des McDaid,

giants such as American Express,

Managing Director, Marcus by Goldman

Stripe, AWS, Ant Financial, Google,

Sachs. “The UK is a world-leading and

Ping An, HSBC and many more. The

unique ecosystem for FinTech,” says

event will also give the stage to a num-

Charlotte Crosswell, CEO, Innovate

ber of Unicorns that have skyrocketed

Finance. “It has deep reserves of entre-

to prominence, as they share their

preneurial and tech talent, progressive

experiences and advice. Dozens of

regulators and policy-makers, steadfast

speakers are expected at Money20/20,

financial institutions, investor and pro-

including representatives from major

fessional expertise, and a supportive

Asian fintechs will be in attendance,

government. All of this combined ensures

with many startups across the world

it will remain the capital of fintech.”

also exhibiting.

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85

86

WRITTEN BY

SHANNON LEWIS PRODUCED BY

SHIRIN SADR

MARCH 2020

87

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RADIUS BANK

Joe Mancini, Chief Information Security Officer at Radius Bank, on how the company made a shift to digital five years ago and what that has meant for its cybersecurity

T

he American digital banking space has historically fallen behind the wider world’s innovations. Radius Bank seeks to correct

that. It specialises in partnering with fintechs to provide industry-leading consumer and commercial offerings. Recently, it was named Best Online 88

Bank by Bankrate.com. Headquartered in Boston, Massachusetts, the company has provided financial services for customers across the nation since 1987, when it was still called First Trade Union Bank.

The business assumed its current name in 2014, a decision that coincided with a major transformation that closed every brick-and-mortar branch except one and evolved it into a digital-first organisation.

Joe Mancini has been at Radius since 2016, overseeing information and cybersecurity across every facet of the bank and working closely with business lines, managing external partners, and ensuring appropriate protection on networks and assets. Mancini’s lifelong interest in cybersecurity has resulted in him working everywhere, from frontline protection at banks to interning at a local police department. With a special focus on cybercrime, MARCH 2020

Customer Service Team in Boston, MA

89

1987

Year founded

$100mn Revenue in US dollars

121

Number of employees w w w.f in tech ma ga zi n e . c o m

RADIUS BANK

“ You find a vulnerability; you patch it before it’s exploited. We come at it from a more investigative background” 90

— Joe Mancini, Senior Vice President, Chief Information Security Officer, Radius Bank

SVP, Operation Excellence; SVP, CISO; SVP, Treasurer; SVP, Customer Experience

MARCH 2020

he brings a unique perspective to his role. “My viewpoint tends to be ‘what is the visibility from a malicious actor standpoint, and how can we work from there?’,” Mancini explains. “Often, it tends to be a cat-and-mouse game.

You find a vulnerability; you patch it before it’s exploited. We come at it from a more investigative background.”

Mancini’s role includes a business enabling approach, seeking opportunities to help Radius grow. His team works closely with the virtual banking team to assess acquisitions and potential

Radius Bank: Why Work at Radius Bank?

CLICK TO WATCH

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0:44

91 partnerships, while also keeping an

products and services to consumers

eye out for emerging technologies

and businesses.” Some partners play a

such as cryptocurrency.

major role in Radius’ risk prevention pro-

By partnering with fintechs, Radius

grammes; Alloy operates heavily within

drastically reduces its time to market

Radius’ fraud prevention space. Together,

and was able to rebuild its entire digital

the two companies rebuilt the model by

platform in a mere four months. “Our

which Radius judges the risk of potential

digital banking strategy is built around

customers, integrating a risk waterfall

fintech driven technology,” Mancini

with seven to eight checkpoints. With

explains. “Push products, gain custom-

the help of partners like Alloy, Radius

ers and create a frictionless experience.

Bank has been able to significantly

The biggest challenge is speed to market

decrease its fraudulent account open-

and flexibility. Aligning with partners

ings. The financial benefits have also

that provide the high-tech platforms

been high, while the technology costs

allows us to offer these industry-leading

of opening a new account decreased. w w w.f in tech ma ga zi n e . c o m

RADIUS BANK

Radius Bank Security Team

92 Trust and shared values are at the core

approach rather than having risk seen

of Radius’ partnerships. “Speed to

as the roadblock.” This allows the

market is critical,” Mancini says, “but

risk team to catch problems before

we also need to understand there is risk

they happen, aligning with business

in the digital space. It’s about finding

partners while ensuring security

the right balance.”

compliance. “Proactively identifying

To ensure the highest standards of

potential risks and vulnerabilities is

cybersecurity, Radius Bank embeds

a critical component to the project

risk management into every stage of

lifecycle.” Mancini continues, “there

development. Banking is already a

is significant pressure to build and

highly regulated industry, but Radius

release products as quickly as pos-

goes further. “The risk team is involved

sible to remain competitive. Radius’

from day one in all these projects and

speed to market is industry leading,

partnerships,” Mancini states. “It’s

but we won’t roll out a product that

about building a business enabling

poses a risk to our customers.”

MARCH 2020

The key to implementing such a new system has been mutual trust between employees and executives. “It all goes back to culture,” notes Mancini. “You can have the best strategy in the world, but if your culture isn’t in line with that, you’re in trouble.” Team building starts from recruitment. Radius seeks out individuals whose values and mentality align with the bank’s, offering in turn a high-benefits, high-energy work environment. In order to attract talent, Radius ensures its offerings are 93 E XE CU T I VE PRO FI LE

Joe Mancini Joe Mancini is the Senior Vice President, Chief Information Security Officer at Radius Bank, an industry leading digital first bank, headquartered in Boston, MA. In his role, Joe develops and implements a forward thinking, business enabling approach to information and cybersecurity that supports Radius’ fast-paced, tech driven approach. Prior to his role at Radius, Joe spent 10 years at East Boston Savings Bank.

Joe is an experienced banking leader having held roles in fraud prevention, information and cyber security. Joe’s specialties include data security, business continuity and disaster recovery, emerging technologies such as digital currency and blockchain, along with privacy and compliance requirements in the digital world.

w w w.f in tech ma ga zi n e . c o m

The complete identity operating system Alloy helps top banks and fintechs make better decisions using a single API and dashboard to manage KYC/AML, fraud and more.

Approve More Good Customers Increase customer conversion and improve customer experience by increasing autoapproval rates.

Stop Fraud with Better Data Fight onboarding and ongoing fraud in one unified system.

Expertise to Ensure Success Alloy powers top 20 banks and the biggest names in fintech. We ensure you will never get stuck or fall behind.

Learn more

RADIUS BANK CASE STUDY Radius Bank is a forward-thinking community bank offering personal and business products and services.

In an effort to become a digital-first, 21st century bank, Radius decided to create the best possible digital experience for its customers by using the best-in-class and most innovative fintech products on the market.

Our partnership with Alloy is transformative and means that we can now scale our digital retail bank ad-infinitum.

- Mike Butler | CEO

OVERVIEW

Radius partnered with Alloy (in partnership with another fintech, Mantl) to transform the bank’s online consumer application process. By integrating APIs and data-driven workflow management tools into Radius’s digital banking platform, a superior customer experience was delivered while generating enormous cost savings for the bank.

?

CHALLENGE

With an increasing number of online banking applications, Radius’s onboarding process couldn’t meet customer demands.

Applicants abandoned their applications or were denied in manual review resulting in significant back-office costs and huge delays in account opening and funding.

Online banking is fraught with fraudulent account openings; a more sophisticated approach was required to combat fraud while letting in good customers.

SOLUTION

Alloy overhauled the entire KYC/AML process in Radius’s digital banking platform. By combining multiple data sources, fraud scores and authentication tests into a single rules engine, customer onboarding decisions were optimized, transparent and made in seconds.

Most powerful of all, Alloy’s solution is customizable. This flexibility enabled Radius to create a risk decision scorecard that can be tested and modified in real time.

RESULT

The strategic partnership has equipped Radius with a best-in-class digital application platform and has transformed it into a recognized digital banking leader.

Radius is now efficiently and automatically validating users’ identities and onboarding customers. Where users did have to go through manual review, the wait time was significantly lowered by having one place to review all application data and documents. Furthermore, the transparency of the Alloy platform gives Radius full digital paper trails when audits take place.

Together with Alloy, Radius is empowered to capture more value from their online channels, delivering a far superior digital experience to their clients, all while lowering fraud.

50

% fraudulent

95

%

30

account openings

manual review applications

% application to account conversion

alloy.co

RADIUS BANK

96

MARCH 2020

CO MPAN Y FACT S

• Recently, Radius Bank was named Best Online Bank by Bankrate.com • With the help of partners like Alloy, Radius Bank has been able to half its fraudulent account openings

substantial and competitive with the standards of the best tech companies and that employees have flexibility and perks, such as the ability to work from home. “We want to incorporate a fun, hard working experience, while at the same time acknowledging the need for a cross functional, open-minded approach from all of our employees.”

Security compliance comes down all the way from the executive team and board of directors. To this regard, Mancini emphasises the importance of leadership setting the example that others should follow.

Security is a high priority to modern consumers, but so is a frictionless experience. Ultimately, it comes down w w w.f in tech ma ga zi n e . c o m

97

RADIUS BANK

98

“ Speed to market is critical, but we also need to understand there is risk in the digital space. It’s about finding the right balance” — Joe Mancini, Senior Vice President, Chief Information Security Officer, Radius Bank

to providing customers with the best experience possible in an allencompassing single platform. Part of engaging with new technologies is acknowledging contemporary cybersecurity needs. “Today’s cybersecurity landscape presents a complex array of risks with a growing list of technologydriven tools to help combat those threats,” Mancini says. The biggest risk continues to be the human element.

Employees are still the main target of malicious actors. “Phishing attempts aren’t going away anytime soon.”

MARCH 2020

99

Mancini adds, “It’s about educating

emerging technology sphere. It turns

employees and customers about these

towards international waters for inspi-

potential risks.”

ration, absorbing concepts from the

Partnering with fintechs puts Radius

advancing global technology. “We will

Bank at the cutting edge of the industry,

continue to strategically incorporate

meaning it becomes the company that

high-tech driven initiatives,” Mancini

sets the precedent. Mancini states,

concludes. “We are an industry disrup-

“rather than looking at it as a challenge,

tor and are excited for what the future

we welcome the opportunity.” This is

holds for Radius and our customers.”

particularly important moving into the future, as the banking industry evolves and becomes increasingly digital. Over the next five years, Radius Bank intends to continue being a leader within the w w w.f in tech ma ga zi n e . c o m

WRITTEN BY

SHANNON LEWIS PRODUCED BY

SHIRIN SADR 100

Plymouth Rock Assurance: building up from within

MARCH 2020

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P LY M O U T H R O C K A S S U R A N C E

We speak to Bill Martin, who leads the Home Insurance Group at Plymouth Rock Assurance, about how being willing to take risks for the sake of the customer experience can lead to sustainable growth

P

lymouth Rock Assurance, founded in 1982, is an insurance provider that had historically focused on providing auto

insurance for the Northeastern USA. However, the 102

last two years have seen its Home Insurance Group growing extraordinarily, all thanks to a decision by the company to embrace homeowner’s insurance as a growth strategy. “Our values are helping customers solve their problems.” Bill Martin, who leads the Home Insurance Group at the company, says, “We go a little further than most companies are willing to in order to do a better job.”

Martin was brought on to turn home insurance at Plymouth Rock into a self-sustaining business in 2016. “Coming into the home insurance business, we already had established relationships through our auto insurance connections, so we had an embedded advantage. Our independent agents and our distribution partners were already committed and enthusiastic marketers of our products,” he explains, “but it also provided us with MARCH 2020

103

1982

Year founded

$1.5bn Revenue in US dollars

2,400 Number of employees

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Plymouth Rock: Celebrating 35 Years CLICK TO WATCH

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1:58

105

“ What happens in the background might be very complicated, but for you sitting on the other end of the chatbot, or our website, or the phone, it looks like three small steps” — Bill Martin, Head of the Home Insurance Group, Plymouth Rock Assurance

an opportunity to do something more dramatic and sophisticated than what was being done.”

The goal at Plymouth Rock was to streamline the customer experience.

Traditionally, acquiring home insurance is a complex process with dozens of lengthy questionnaires full of “gotcha” questions that either hike up the price or justify denying the customer. “We did something similar to what a startup does,” Martin says. “We wiped the slate clean.” This allowed the company to establish a clear goal. “We wanted to start with something very simple: what w w w.f i nte c hma ga z i n e. com

P LY M O U T H R O C K A S S U R A N C E

was the absolute ideal way for a customer to buy and maintain their home insurance policy?” Martin continues, “Everything we do is built around that specific experience.” Internally, the quest for innovation saw the Home Insurance Group completely remodel its product manager role, following a technology industry model. Historically, product managers in the insurance industry focus primarily on product pricing. Plymouth Rock gave product managers direct oversight for a variety 106

of employees, from data scientists to technology IT professionals, user design experts to business process engineers.

The resulting tool is called @Home.

While the average competitor takes 20-30 minutes to quote a home insurance policy and find coverage, @Home

by Plymouth Rock Assurance can do it in under five minutes. The quote itself takes less than 30 seconds. “The only way we can do that is by doing our homework first,” says Martin. “We try to answer all the questions about the people and the houses that need insurance before they even ask us for a quote. We pre-rate all the homes in our territory and figure out what it MARCH 2020

107

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P LY M O U T H R O C K A S S U R A N C E

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Plymouth Rock: The future of Home Insurance is landing CLICK TO WATCH

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1:11

108

costs to insure them for a basic cover-

payments. While this isn’t possible for

age package.” Everything delivered at

every customer and every case, data

Plymouth Rock works alongside the

and analytics help the company define

advent of technology. It is a learning

when loss scenarios can be stream-

process, with customer experience

lined like this. Customers can also

at the forefront. “What happens in the

take pictures of their home and submit

background might be very complicated,

them through an app developed by

but for you sitting on the other end

Plymouth Rock when initially seeking

of the chatbot, or our website, or the

a home insurance policy. This removes

phone, it looks like three small steps,”

the need for inspections and allows

Martin says. With Plymouth Rock’s new

policies to be in force more quickly.

tech platform, customers can submit

Plymouth Rock also focuses on the

photographic evidence for simple

importance of partial loss claims such

claims with the potential for instant

as ruined carpets or fire-damaged

MARCH 2020

kitchens. “Most home insurance com-

profitability. While the insurance

panies practically expect you to be

industry grew around 3% last year,

a general contractor, able to know how

the Home Insurance Group grew 57%.

much it’ll cost to rebuild your home

Rapid growth is not the main chal-

two years from now,” Martin says.

lenge; competitors can grow rapidly

“Yet the majority of claims you make

by under-pricing the product. What

aren’t total loss claims.”

sets Plymouth Rock apart from the

The approach taken by Plymouth

many fast-growing insuretechs is how

Rock has had such great success that

it keeps growth in line with profitability.

it has started bleeding into other busi-

Aside from a competitive market, the

ness lines of the company. Plymouth

company has had to face detractors

Rock’s home business has exceeded

who operate traditionally and criticise

internal expectations in terms of

new methodologies. “There’s a lot

both growth trajectory and business

of mischaracterisation in what we’re

E XE CU T I VE PRO FI LE

Bill Martin Bill Martin leads the Home Insurance Group at Plymouth Rock and also oversees Plymouth Rock’s reinsurance program. He joined Plymouth Rock in September 2016.

Bill has more than 30 years of experience in the property/ casualty insurance industry. He has held senior positions at several companies including Farmers Insurance, Progressive and Travelers. He has been involved in four home and auto start-ups, most of which continue to thrive today. Prior to joining Plymouth Rock, Bill was President of Bankers Insurance in St. Petersburg, Florida. Bill has a B.A. in political science from Stanford University. He is an avid sailor, skier, trombone player and sports fanatic.

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P LY M O U T H R O C K A S S U R A N C E

“ While it takes a little bravery to do something that’s dramatically different, with us, we’re less brave than we are strategic” 110

— Bill Martin, Head of the Home Insurance Group, Plymouth Rock Assurance

doing,” Martin says, “but you make

the industry. But it’s worth it. Plymouth

yourself vulnerable to that whenever

Rock’s quick processes allow agents

you disrupt a market.”

to spend more time talking to custom-

This rapid growth has had its chal-

ers about types of coverage instead of

lenges. Being at the forefront of

price, ultimately selling more and more

innovation means presenting unknown

often. “While it takes a little bravery to

processes to partners that might have

do something that’s dramatically differ-

to change their workflow to accommo-

ent, with us, we’re less brave than we

date new systems. Meanwhile, finding

are strategic.” Martin explains, “We use

in-house talent to perform at the level

a lot of data, advanced modelling, and

needed is an obstacle faced across

process technology behind the scenes.

MARCH 2020

111

It would be difficult for other compa-

concludes, “I think that will set us as

nies to replicate and deliver the results

a market leader. Internally, it will be a

we’re delivering.”

rollercoaster of making mistakes and

According to Martin, the indus-

learning from those. Externally, for the

try is on the cusp of major change.

customer, it will be a lot more enjoyable

“Five years from now, there will be

to buy home insurance.”

a shakeout of people who have good technology but don’t have a sustainable profit margin, leaving only companies that are ‘doing it’ rather than talking about it.” Martin w w w.f i nte c hma ga z i n e. com

112

Mercer Marsh Benefits: Developing data and talent WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

NATHAN HOLMES

MARCH 2020

113

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MERCER MARSH BENEFITS

Richard Roper, Health & Benefits Leader Hong Kong, Mercer Marsh Benefits (MMB) Asia, discusses building an excellent workforce and optimising data in order to drive the insurance company forward

R

Richard Roper, Health & Benefits Leader Hong Kong, Mercer Marsh Benefits (MMB) Asia, became a part of MMB,

a collaboration between Mercer and Marsh, when Marsh & McLennan acquired Jardine Lloyd 114

Thompson (JLT) in April 2019. Roper had been with JLT for over 20 years, starting out as a consultant before moving to lead the corporate financial services business, private clients, sales and marketing in the UK. In 2014, he moved to Asia in order to lead the JLT Employee Benefits business in Asia. Though the merger marked a significant shift across the organisation, Roper takes personal pride in the success of the integration of the two companies. “During this time, we surpassed all targets. This was against a backdrop of difficult times in Hong Kong,” he adds. “The resilience of the team to get the job done was remarkable.”

Roper’s role divides into two sets of priorities: internal and external. “From an internal perspective I want to build a great working environment which gives everyone an opportunity to shine,” he explains.

MARCH 2020

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MERCER MARSH BENEFITS

“ I want to build a great working environment which gives everyone an opportunity to shine” 116

— Richard Roper, Health & Benefits Leader Hong Kong, Mercer Marsh Benefits (MMB) Asia

MARCH 2020

Given the amount of uncertainty in Hong Kong at present, he emphasises the need for stability, transparency, good communications and an element of fun when completing tasks. In terms of external priorities, Roper refers to Mercer’s new tagline, ‘Welcome to Brighter’, which he feels summarises both his and the company’s outward priorities. “We need to always bring a point of view to our clients and execute well. We need to ensure that our clients get to see the whole of what Mercer can offer and boldly shape the

Mercer: Welcome to Brighter CLICK TO WATCH

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1:38

117 future.” He goes on, saying: “This is

improve the employee experience,”

particularly exciting in Hong Kong and

he says. “Our role is to work out how

in the health and benefits space as it is

we can best help companies achieve

such a fast moving environment with

those goals by understanding what

many new companies trying to impact

the factors are that affect those

on the medical insurance ecosystem.”

goals.” To achieve this, data needs to

Executing a successful digital

be acquired and assimilated in a man-

strategy is invaluable in the industry

ner that enables effective insights for

and region currently, but for MMB it

Marsh & McLennan’s clients, and this

is particularly important to harness

has been taking place alongside the

technology in order to bring improved

changes undertaken by the workforce.

insights to its clients while matching

“For example, last year our Hong Kong

the needs of its changing workforce.

office went 100% agile. No allocated

“Our clients are looking to attract and

desks, no offices, just different types

retain employees, manage costs and

of mobile workstations. All employees w w w.f i nte c hma ga z i n e. com

MERCER MARSH BENEFITS

118

have laptops and access to confer-

then use the outputs to formulate

encing technology that allows fully

targeted actions to help organisations

mobile virtual meetings.” He adds that

achieve their people-related goals.”

this has been particularly valuable with

Corporations moving to harness large

the recent disruptions in Hong Kong,

amounts of data is often easier said

as employees have been able to work

than done, but MMB has met this

from home or remotely.

challenge with confidence through its

Within this strategy, Roper believes

partnership with AIA. “We worked very

that the key technology underpinning

closely with AIA on data driven well-

MMB’s competitive edge is its use of

ness, utilising claims data, biometric

data. “MMB goes a step further with

screening data and health risk

the use of data. Data without insights

assessment data to formulate a plan

is useless. We go the extra mile to

to provide targeted interventions

gather different data sources and

to improve the underlying health

MARCH 2020

“ We utilise our own talent and retention strategies and work on organisational structures in order to ensure that MMB is an exciting, challenging and vibrant place to work” — Richard Roper, Health & Benefits Leader Hong Kong, Mercer Marsh Benefits (MMB) Asia

E XE CU T I VE PRO FI LE

Richard Roper Richard Roper is the Health And Benefits Leader Hong Kong. Having worked for JLT for 14 years in the UK EB team, Roper came to Asia in 2014 to lead the JLT Asia EB business which now spans 14 territories in the region. Situated in Hong Kong, he sits on the JLT Asia Executive Committee and the Global EB Leaders Forum. Roper previously held roles at JLT as Head of Private Clients, Sales and Marketing Director and Managing Director of the JLT benefit Solutions business in the UK. Prior to JLT he worked at Capita for nine years leading the UK financial services team.

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119

LEADING A

HEALTHIER CENTURY At AIA we make a promise. We are going to help people live Healthier, Longer, Better Lives. This is our purpose and sits at the heart of everything we're about and everything we do.

LEARN MORE

aia.com

MERCER MARSH BENEFITS

PA RT N E R S

Richard Roper on Mercer Marsh Benefits’ partnership with AIA Group

122

“AIA are a key insurer partner. We work closely with them, particularly around health and wellbeing and ‘data driven wellness’. Their Healthiest Workplace Survey is a key tool in benchmarking corporate health. For our larger clients we utilise AIA’s data tool which provides a great visualisation of data for clients. In addition, the ‘Vitality’ exercise incentivisation programme, delivered by utilising wearable devices or simply mobile phones, is very successful in getting people moving more.”

MARCH 2020

and wellbeing of employees.” Roper credits the ability to have provided companies with a benchmark from which they can assess the success of these goals to MMB’s completion of AIA’s Healthiest Workplace Survey.

MMB has real expertise on ‘The Workforce of The Future,’ according to Roper. He asserts the need to be attuned to the fact that MMB’s workforce is changing, as employees’ needs differ depending on where they may live. “We utilise our own talent and retention strategies and work on organisational structures in order to ensure that MMB is an exciting, challenging and vibrant place to work.”

To give his workforce the tools needed to provide excellent service, Roper elaborates on MMB’s new healthcare data dashboard, which enables companies to understand how ongoing claims information could be used to predict costs at renewal.

“Rather than wait until close to renewal and possibly get a shock in terms of costs, we can provide a dashboard providing a consolidated view of all aspects driving future insurance costs,” he says. This includes top diagnoses w w w.f i nte c hma ga z i n e. com

123

MERCER MARSH BENEFITS

and conditions, predictive cost modelling and hypotheticals. Clients can then benefit from both early warnings to any future cost increases, as well as a view of all of the underlying drivers of those costs.

Looking forward, Roper can see that the claims process is moving to become wholly digital in the wider industry. As an athlete with a particular love for triathlons, Roper uses various apps such as Strava and Relive in order to track his performance. Wearable 124

technology, he believes, will become an integral part of the medical insurance industry in the future. “In addition to simply providing fun data postexercise, wearable technology will undoubtedly impact medical insurance as well. The more data that insurers have on individuals, the more accurate the pricing and therefore the more incentive to improve health.� Wearable technology will be amongst many other types of disruptive technology that will enter the region. “Telemedicine has to come to Hong Kong, despite regulatory challenges. There are also many advanced chatbots or virtual assistants that can serve as a triage service MARCH 2020

“ We go the extra mile to gather different data sources and then use the outputs to formulate targeted actions to help organisations achieve their people-related goals” — Richard Roper, Health & Benefits Leader Hong Kong, Mercer Marsh Benefits (MMB) Asia 125 before a doctor is seen. That will become commonplace over the next decade. The culmination of all of these factors will create an improved experience for both clients and employees alike.” As MMB gathers pace in this new decade, it is ready to embrace new challenges and technologies head-on in order to remain a leader in the region and industry.

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126

ELMO CLOUD HR & PAYROLL: BEYOND THE NUMBERS

MARCH 2020

WRITTEN BY

AMBER DONOVAN-STEVENS

PRODUCED BY

ANDREW STUBBINGS

127

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E L M O C L O U D H R & PAY R O L L

James Haslam, Chief Financial Officer, ELMO Cloud HR & Payroll, discusses the evolution of the cloud HR and payroll software provider, and the role that the modern CFO plays in business today

A

s technology evolves at an exponential rate and customers demand more from their products than ever, the role

of C-suite executives is also changing. Few understand this as well as James Haslam, Chief 128

Financial Officer, ELMO Cloud HR & Payroll, who seeks to redefine the traditional associations of his role as he leads the financial strategy of the tech company that enables medium-sized companies (50 to 2,000 employees) within Australia and New Zealand to deliver employee satisfaction through the use of its cutting-edge technology.

Haslam’s experience spans over an 18-year career in accounting and finance. Before becoming a chartered accountant, he obtained his Bachelor of Science in Engineering and Business from the University of Warwick in the UK. Haslam moved into KPMG’s graduate program in 2001, working largely across audit and corporate restructuring before moving to Australia in 2005 with KPMG’s secondment program where he worked primarily in corporate finance.

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In 2014, he joined Deloitte as a director in the corporate finance team. Yet Haslam’s ambitions were pulling him away from ‘the Big Four’ and in 2017 he founded Financial Agility Consulting. “I saw a gap in the market for providing corporate finance advice to midmarket executive teams, particularly around mergers and acquisitions and IPOs,” he explains. Shortly after founding the company, Deloitte reached out to Haslam, referring him to ELMO in order to assist with developing the w w w.f i nte c hma ga z i n e. com

E L M O C L O U D H R & PAY R O L L

“ I believe that we have a great work culture and I am only as good as my team”

company’s prospectus as part of the IPO, which was successful in 2017.

Little did he know at that time how the initial engagement would set him on the path to become a CFO at ELMO. As he continued with Financial Agility Consulting, Haslam continued to work on mergers and acquisitions (M&A) projects and IPOs until early 2019, including supporting ELMO on

James Haslam, Chief Financial Officer, ELMO Cloud HR & Payroll 130

five successful acquisitions, before he succeeded ELMO’s then-CFO, Trevor Lonstein. “It’s not your traditional route into the CFO role,” Haslam acknowledges, “but the advantage I’ve gained through both my Big Four and consulting experience is a wide view of the strengths and weaknesses of many CFO’s who I have worked with. I believe this experience has provided me with a more holistic view of businesses which I find now benefits me in my role.”

The skills and networking abilities gained from both KPMG and Deloitte, along with its prestigious alumni, gave Haslam the tools he needed to navigate the industry well, but he reflects that it was in his private consulting work where he learned how to obtain his own opportunities and engagements.

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ELMO Software — Predictive People Analytics CLICK TO WATCH

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131 “That need to be resourceful and go

alongside providing a fantastic user

the extra mile with self motivation has

experience,” he says. As CFO, Haslam’s

really honed my negotiation and emo-

core responsibility is to set the financial

tional IQ skills that are so vital in my

strategy and ensure the accuracy of

role today.” He goes on: “Learning how

financial information and metrics, both

to really listen to the needs of stake-

internal and external to the company,

holders is integral to my work at ELMO

particularly with regard to stakeholders.

every day.”

This is in addition to the traditional role

ELMO is a leading provider of human

of ensuring company controls and pro-

capital management (HCM), payroll,

cesses are both working and effective.

rostering and time and attendance

Yet to truly drive the company forward,

software solutions. “We’ve currently

the role of CFO needs to extend beyond

got 14 modules covering the hire-

day-to-day operations. “The position is

to-retire spectrum, with a focus on

no longer about simply doing the work

increasing automation for companies

and reporting the numbers” explains w w w.f i nte c hma ga z i n e. com

E L M O C L O U D H R & PAY R O L L

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Haslam, “but being a leader that looks beyond the numbers; being a progres-

everyone can understand.”

ELMO is growing at a significant pace

sive figure.” He describes this type of

both organically and through acquisi-

CFO as the ‘Modern Finance Leader’.

tion, reporting annual recurring revenue

“A Modern Finance Leader looks

growth of 42.8% over the last 12 months

ahead by two or three years; asks

to A$52million and it is expected the high

themselves ‘how can we invest and

growth will continue in the near term.

lay the foundations to support further

Haslam explains, “It is important to

growth?’ and embraces new technol-

support the growth through the adop-

ogy in an ever-changing landscape.

tion of new technology and partnering

To do that you need to be partnered

with key providers across the business,

across the company and able to com-

particularly as we grow our customer

municate complicated financial data

base, now up to 1,478 and employees

with any department in a way that

up to 368.”

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“ A modern finance leader looks ahead by two or three years; asks themselves ‘how can we invest and lay the foundations to support further growth?’”

Haslam divides the company into four segments: the financial and administrative function; client services; sales and marketing; and R&D. “All of these departments need great support and so we work closely with them to ensure that their needs are being met.

This also extends to C-suite members of the company.”

To ensure these partnerships are

James Haslam, Chief Financial Officer, ELMO Cloud HR & Payroll

cared for, Haslam notes that there are other companies that ELMO partners with in order to support automation.

133 E XE CU T I VE PRO FI LE

James Haslam James Haslam joined ELMO as CFO in February 2019. He is a Chartered Accountant with over 18 years of experience in accounting and finance roles. Before joining ELMO, James founded Financial Agility Consulting, a consultancy practice providing senior executive management support through mergers, acquisitions, capital raisings and IPOs. Prior to Financial Agility Consulting, James worked for both KPMG and Deloitte, providing professional services advice, predominantly in the respect of mergers, acquisitions and IPOs. James holds a Bachelor of Science in Engineering and Business from the University of Warwick in the UK and is a Fellow of the Institute of Chartered Accountants in England and Wales. w w w.f i nte c hma ga z i n e. com

93% business traveller satisfaction

Up to 34% savings on accommodation alone

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135

“For example,” he says, “our sales and

provides automated billing services

marketing team and the executives

and metrics reporting, we expect Zuora

undertake a significant amount of

to have a major benefit to our opera-

travel and TripActions provides a sim-

tions going forwards. Automation is

ple and intuitive platform for booking

a key part of my outlook for finance

travel and capturing the data around

which enables my team to spend less

travel.” Nurturing partnerships like

time undertaking routine tasks and

this is a part of the forward thinking,

more time developing themselves, their

technology embracing attitude that the

knowledge and decision making.”

Modern Finance Leader needs in order

Another partnership Haslam is

to assist in navigating the company

enthusiastic about is the ongoing work

through a fast-evolving landscape.

between ELMO and the University of

A company that ELMO is currently engaging with is Zuora. “Zuora,

Technology Sydney (UTS) on developing a new module leveraging data w w w.f i nte c hma ga z i n e. com

E L M O C L O U D H R & PAY R O L L

136

MARCH 2020

2002

Year founded

$52mn Revenue in AUS dollars

368

Number of employees

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137

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139 analytics and artificial intelligence

is both supported and appreciated by

in a program that will benefit both

the CFO. “My team is the backbone of

institutions mutually. “Through the

our finance operations and I am a big

partnership with UTS, which includes

believer in empowering my team, what-

access to their state-of-the-art data

ever their aspirations may be.” Since

center, we can leverage our large vol-

Haslam has been in the role, he has

umes of anonymised data to develop

expanded the team and set up both a

insights to develop algorithms which

financial planning analysis team, and

are expected to provide customers the

a corporate development team. He

ability to deepen their workforce plan-

identifies being “collaborative” as the

ning processes” he says.

key requirement for teams. “I want the

To ensure a high standard, Haslam

team debating ideas and talking collab-

enthuses that, for him, and for any

oratively. I don’t stress about mistakes,

good Modern Finance Leader, it is

but I want the team feeling confident in

imperative to have a great team that

exploring and finding solutions. I often w w w.f i nte c hma ga z i n e. com

E L M O C L O U D H R & PAY R O L L

140

“ My team is the backbone of our finance operations and I am a big believer in empowering my team, whatever their aspirations may be”

say, if you can’t fix your issue in less than 30 minutes, share it. I believe that we have a great work culture and I am only as good as my team. I am proud of them and their efforts.”

As ELMO continues its upward growth trajectory, it will continue to drive automation through technology.

As it breaks into the finance and tech-

James Haslam, Chief Financial Officer, ELMO Cloud HR & Payroll MARCH 2020

nology industries, Haslam is confident that younger decision makers will increasingly adopt the ELMO solution

141

with their increased appetite to adopt

across Australia and New Zealand it

technology. “Our automation makes

will be interesting to see how this latest

both employers and employees lives

acquisition with operations in the UK

simpler. We have great brand equity

evolves and if it acts as a launchpad for

in the ANZ region; we attract a lot of

global expansion.

leads and we’re evolving into a market leader in the mid-market.� ELMO also garners a notable amount of international interest, with a number of other countries taking interest in the solution. Although the company is very much focused on maximising growth w w w.f i nte c hma ga z i n e. com

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MARCH 2020

Creating financial inclusivity WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

JUSTIN BRAND

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Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O )

Last time we spoke with Zambia National Bank, it was on the cusp of an accelerated digital transformation set for completion in 2020. Fresh into the new decade, CDO Wane Ng’ambi, details the bank’s journey

T

he symbiosis between the telecommunications and finance industry is stronger than ever in Africa, and as technology

evolves, many banks are being left behind as a 144

result. One bank in the region that is staying ahead of the curve is Zambia National Commercial Bank (Zanaco), which in 2018, was on the cusp of an accelerated digital transformation set for completion in 2020. Sharing the bank’s success since then is a Chief Digital Officer who understands the relationship between finance and telecommunications better than most, Wane Ng’ambi.

“I love a challenge!” exclaims Ng’ambi when asked what drew him to his current role. “I’m not a traditional banker. To me, one of the slowestchanging industries has been banking and financial services. With Zanaco, the whole agenda of taking a very mature, traditional industry and moulding it into a very tech-savvy future-focused one is a fantastic opportunity.” When Ng’ambi joined Zanaco in 2018, he brought 15 years of experience in the MARCH 2020

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Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O )

“ We’re at almost 110% growth year-on-year, effectively doubling our traffic through our digital channels” — Wane Ng’ambi, CDO, Zambia National Commercial Bank (Zanaco)

telecommunications industry with him.

Specialising in creating telecommunications and digital solutions from an IT engineering perspective, he previously looked after mobile financial services for MTN in Zambia. “There’s a big drive across Africa that is pivoting mobile telecommunication companies from predominantly providing voice and data services to providing financial services by using the existing technology infrastructure,” he says.

“Mobile money is a big phenomena

146

in regions like Kenya, Tanzania and Uganda. Zambia is the latest country to embark on this journey.” After a few years with MTN, Ng’ambi moved to Millicom International Cellular’s subsidiary, Tigo, in order to care for the company’s mobile financial services and customer distribution technology.

After a year he returned to Zambia to work with Zanaco in order to serve its existing customers through new channels. “The heart of Zanaco’s strategy focuses around the use of technology in order to enable customer fulfillment for different products and services,” he summarises. Over the years, banking has evolved considerably, MARCH 2020

Bank Here TVC CLICK TO WATCH

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147 but Ng’ambi reflects that telecom-

Zambia National Bank has met

munications engineering has always

the challenges of this ever-shifting

remained embedded in the lives of

landscape head-on and has achieved

customers. “This is the move banks

an astonishing 115% growth across

need to make. They need to ask

digital channels in the last 18 months,

themselves: How do we migrate from

with defining weight placed on mobile

the traditional branch servicing of

channels. Other streams that have

customers and into the digital age?”

contributed to this exponential growth

He is cognizant that Africa com-

include QR Code, which has acted as

prises a largely young population that

a replacement channel to the original

will pilot a remarkable technological

postal one and cost inhibitive POS

shift in the continent in the next five

channel, and the express “Agent

to 20 years, and it is essential that

Banking” channel. “We’re at almost

banks like Zanaco keep the pace in

110% growth year-on-year, effectively

order to remain relevant.

doubling our traffic through our digital w w w.f i nte c hma ga z i n e. com

Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O )

148

channels.” This is the result of what

collectively. This forms up to 20% of

Ng’ambi would describe as a very

the total financial inclusion and often

“aggressive” campaign: “Africa has a

goes missed by banks. “Now, this is

very interesting dynamic; the financial

not regulated formally in Zambia, so

inclusion rate is relatively low, with the

it’s unregulated financial inclusion,

exception of some successful markets

which is pretty much a conventional-

like Kenya, Tanzania and Uganda.

type financial inclusion,” he explains.

Zambia sits at around 59% of the

“But when you look at formal financial

total financial inclusion. This inclusion

inclusion, through regulated entities

includes regulated and non-regulated

such as Zanaco, we’re somewhere

channels.” By non-regulated channels,

around 38-39%. That’s relatively low if

Ng’ambi refers to the phenomena of

you look at the population.” This totals

‘Chilimbas’ – village banking – where

to around 6-9mn individuals who are

groups in rural communities invest

currently excluded from regulated

MARCH 2020

financial services. This makes

branches on a day-to-day basis, with

Zanaco’s growth all the more impres-

a shift of customers moving from

sive, but it also creates a number of

branch to digital marking a negative

challenges to overcome.

trajectory. However, we are close to

“The challenges can be split in two,”

gaining 40,000 customers every month

explains Ng’ambi: “Technology and

who did not have access to financial

culture. Naturally these factors both

services previously. We’re somewhere

intertwine. While automation drives

in the space of maybe 200-300% new-

efficiency, which achieves our digital

to-bank acquisition growth between

strategy, digital transformation impacts

2018 and 2019. That’s a very, very

the lives of stakeholders within the

strong growth for a traditional bank.” To

E XE CU T I VE PRO FI LE

149

Wane Ng’ambi Wane Ng’ambi is a seasoned telecommunications and financial services executive with extensive skill sets in sales and distribution, financial services, project management, IT and telecommunications and FMCG experience spanning several African markets.

Ng’ambi has held several senior management and executive roles in the Telecommunications and Financial Services industry across Africa including his most recent role at Millicom Group (T/A TIGO) as Regional Director – Sales Distribution and Customer Operations – Africa Market.

Prior to joining Millicom, Wane served five years with MTN Zambia as Executive Head, Mobile Financial Service (MFS). He holds a Graduate Diploma in Information Systems Management, BSc (Hons) Computer Science. w w w.f i nte c hma ga z i n e. com

powered by

ensure that the implementation of these new technologies is smooth, Ng’ambi explains that the bank has traveled around the country to a number of town halls in order to engage with staff as to identify any pain-points in relation to the changes occurring, as well as how to mitigate them within new strategies. “We are very conscious that digitisation can lead to redundancy and so we take a very active role in the reskilling of our staff and honing new skills as the company transforms,� he says.

The benefits of this digitisation greatly outweigh the challenges and MARCH 2020

“ Banks almost solely examine assets, liabilities and the revenue aspect, but behavior is what results in assets and liabilities and revenue”

in addition to the increase in financial inclusion across the nation, there have been other benefits. “We’re now able to proposition customers more effectively; I can look into a customer’s habits over the course of six months and track his experiences to identify individual or economic changes,” he says. In terms of UX, Zambia’s online banking platform was originally very

— Wane Ng’ambi, CDO, Zambia National Commercial Bank (Zanaco)

traditional in terms of UX, but it has since been upgraded to provide a more seamless and accessible experience for customers. “We created the new platform from a number of focus groups around customer behavior and now it is intuitive, fresh. But this will not be enough,” asserts Ng’ambi. “The platform will continuously develop to ensure that it meets the changing demands of the customer.”

As the bank progresses with its digital transformation, Ng’ambi enthuses that the bank’s focus is now on datacentricity. “I am predominantly a telco player and telcos have also shifted focus on to data. When you cross-pollinate the experiences from different industries, you begin to understand the depth and the wealth of what data can w w w.f i nte c hma ga z i n e. com

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actually mean. One of the things that I have understood from my time in both the telecommunications and banking industry is that the tracking of the behavioral patterns of customers is not a strong suit of the latter.” He goes on, “banks almost solely examine assets, liabilities and the revenue aspect, but behavior is what results in assets and liabilities and revenue.”

Moving forward, the goal of Zambia Bank is the culmination of effective data in order to drive assets and liabilities in a more effective way while using AI to better understand this data.

“Things are looking very, very exciting

N G ’A M BI O N T HE BAN K ’S PART N ERS

“I have a number of fintechs, aggregators and multiple traditional core banking solution providers that all assist with different aspects of our operations in a cost effective manner that meets the needs of our end customers efficiently. One company that covers a very notable amount of our requirements is Devshack International, which allows us to pivot quickly to respond to the consumer’s demands as the market starts to shift and change.”

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Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O )

for us in the future. We are continuing to drive toward mobile interoperability.”

Ng’ambi shares that they are also looking to move towards the creation of an open digital product marketplace via Open API integrations to their digital platforms. “We’re looking to build a whole ecosystem by adding everyone into one interoperable environment where everyone can play and trade with everyone. From a traditional banking perspective, I think this is relatively strong because all banks are already 154

playing with everybody, but from a mobile perspective, mobile acquirers, mobile issuers, are not doing very

“ Things are looking very, very exciting for us in the future. We are continuing to drive toward mobile interoperability” — Wane Ng’ambi, CDO, Zambia National Commercial Bank (Zanaco)

MARCH 2020

1996

Year founded

$15.mn+ Revenue in US dollars

1,228 Number of employees

well, so this is an area where we’re trying to create an environment that allows everyone to play with everyone.

Mobile is continuing its strong growth and we’re trying to now bridge that gap with banking, so that for us is one key area that we’re going to keep focusing on.” As technology evolves, one thing is for certain: customercentricity will remain at the epicentre of all of Zanaco’s operations.

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