About the talk
03:37 Key Areas of Focus
04:35 Fintech Cadence
05:41 Tom Carpenter
09:25 What Are some of the Key Considerations Fintechs Need To Take into Account When Scaling into Canada
15:43 Barriers for Entry
16:06 Complexity of Market
45:07 How To Know When It's the Right Time
48:54 How Do You Know When To Take the Jump
50:25 Final Words of Wisdom
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Hi everyone. I hope you're enjoying your day. So far. I had a CT in North America are named Laura Thompson products and contact manager at DC, elevation of cited to be moderate. In this town today said something but it is. Spock something in your own experience that with us and any questions for anybody speakers as well. I paid off the way in the shop. Joined by full-timers today representing between them a wealth of experience of both the pool things and taking that leap into North America
on all his experience as a housemaid, this job opportunity. Hi, Laura. I am sorry. I work for best. Northern northern Ireland's of services to businesses to grow 18 to work with social services and help them explore. Thank you. Great. Thank you, Tyler. And I really looking forward to exploring the mall, some of the ways that you of support and texted the thing in the day, if I could come to you, not Chase for your instructions, were invited me today. And my name is dirt marks. I work for an organization called century. And my my
rules specifically is is head of Business Development. Am I'm based in New York and Centre is an orthodox company, but I am actually based in New York and the B and B was broke them. Wear red tech company providing solutions for all our clients. All our clients are so very much purpose in the, in the financial services and the strength. We are here today is to design and Implement solutions to tell them either regulatory obligations and our key areas of focus are legal risk and compliance kyc consultancy. I'm technology and our
clients are stretched across the globe. We have plans in North America and in Europe in the early stages of argue Asus pension, and we have around 60, per-cent of our clients, like Sleep Inn in North America for the only in New York. And at the moment is trying to avoid our business in North America. Great Wolf. Ready. Ready Pizza Hut has today. Shut up going to be some volleyball experience has shown us. We could come to you nuts, please. Yeah, so we
know what the rest of the panelists said, Thank you for having me on here. Always will be to represent a happy. Belated one. Another part of what we do is work directly with financial institutions to see what their needs are and would help To Have and Have Not Great. Welcome. Thank you for joining us. Then finally, if we could come to you, so you can taste. Yeah, thanks so much. It's a pleasure to participate. I with all of you today in this panel. My name is Tom Carpenter. I run public affairs and marketing for the financial data exchange or ft. X 8. Ft x is a market-leading
open-source royalty-free, standards body. We operate in the US and Canada and really make our name is as the broadest open finance standard around, technical api-based data-sharing. Cirelli. Our goal is helping the ecosystem. And that is everybody from the financial institutions that hold the date of the data, aggregators and Industry, utilities that help consumers move their data around. And then the fintex the date of recipients the apps and services that users are, are sharing their data with. And so we
operate in the US and Canada today. We have about a hundred and seventy eight members across the ecosystem and we've moved at this stage. 12 million consumers from screen scraping Bay State of sharing to apipa State Insurance. Looking really forward to the conversation about some of the opportunities and challenges that exist in North America, is going to be a great conversation. What are some of the considerations of the next Wednesday evening into a new market?
Yeah, it's it's such a big question and I'm sure we'll get into some of the specific details as we go for it. But I think what's interesting from my vantage point as the standards body in. So we really get a chance to work with all of the different industry segments that make all this possible. To me. One of the key indicators for fintax is the need for collaboration. So obviously there is a, it's a highly competitive landscape. There's a lot of innovation and disruption that's occurring. And yet, you still have these Legacy players that that are in place and and they're, they're the consumers
are aware of them, as regulatory overlays with some of those Legacy players. And so, it's figuring out how can you collaborate? How can you plug into the ecosystem? And sometimes it's difficult for, for the smaller fintex? They're just starting up now. Their focus is making sure that they don't die, making sure that they're still around in a year. And so, how do you play in kind of the larger space sometimes? Can be a challenge that opportunities for collaboration. It is really one of them. Secondly, and maybe I'll focus on some of our world in terms of Technical Center. Just trying to figure
out where are some of the building blocks in the industry that you can do to calm, and interoperable means rather than trying to kind of build the same mousetrap over over and over again, you know, we don't need so many proprietary Solutions if there's essentially a commonality to some of those foundational layer, so whether it's security or whether it's technical standards, or whether it's user experience and how you might be able to to standardize some of those things. So I'll stop there because I know our panelists have other thoughts but looking forward to some more in this
discussion. Yes, it's a big question, isn't it? But I like that operation. Even is there a destructive play strange things from your perspective? Considerations been texting to take into account when sailing into Canada. If I'm not sure. What are some of that consideration. Is released. It does have different realities which can be quite how I think it very clear. Understanding of what you're hoping to achieve from this session is accountable as well as it tested regular country full of a
lot of diversity in our development. Standing who is going to be a champion for you. In a specific industry will help you open that Network. So how can you find somebody that can help you prove Champions internally and financial institutions to House of operation of Thomas mentioned that with a key goal in my mind going to sit here and text. I think so. What's your agenda? The market is going to be in, untie your contacts and what's the best way to cover? The market will be really important building and understanding.
I think your input on this. This opening question is very important because I think one of the key things that we asked ourselves that the right set of expanding as North America was, is it a new market or is it actually just an extension of the existing Market to we already owe you for the UK, what we do for Europe and largely be translated to defrost it, to North America and I was a key consideration to keep questions that we asked ourselves. Except I think. We embarked on on the expansion to 2, North America. One of the key considerations was, what does the market
look like over here? What's the competitive landscape? We had a really good grass in terms of what the UK was like. We had a really good guy is like the North. America is a different 50 states. Who's already here on? What are they doing? I'm at the last one that we make is. Once we have done that, we tried to establish where the Gap in the market are on my job site. Don't mean, you know, I I clearing the obvious. You know, Abyss are there. And I actually can be something that's already
in existence that can be done better. I'm having more cost-effectively. I'm not really where we started. Our attention that doesn't need to be the new finds thing. It can actually do something that's already there, but we can do about little bit fatter. Great, and I'm sure I really like that idea of making it as an extension, into a ceramic it rather than it being a completely new market. I think that's very interesting way. Since it's a setting, a gap in the mafia understanding at the market, completely, and times to operate weather, and finding your way,
and it sounds great. But when you last talked about how to change the navigation system. Yeah, thank you. I, you know, I will start with maybe a couple different areas thinking about complexity of Market, some of the market cultural indications as well as some of the regulatory peace in. So I think the complexity the market is really interesting, especially when you look at the us a lot of the developed markets around the world, you might have a single Financial regulator. You may have just a handful of large, financial
institutions that really control a majority of the banking traffic. And then you look in the US. We got fourteen thousand different financial institution scaling up from the very smallest, Credit Union or Community Bank up to some of the world's largest banks. We've got, you know, depending on how you count somewhere. As many as eight different Regulators that have a piece of the pie around, send check and data, sharing info and privacy. There's also the cultural component is a market more kind of industry led by by default. Or is it looking more
for regulatory partnership in and is the regulation typically what goes first in the Market's going to respond to that in the US. Typically we have a usually an industry-led front foot in and that's indicative of what how ft actually really got started. And then the last one I'll say is just from a size standpoint than not to mention this at the beginning. If you've got a very small startup fintech. There are a lot of different pieces that you're trying to pay attention to and for most small businesses. It's just hate. We are going to focus on our Core Business here who are
customers and how can we deliver the best product or service to them? But when you think about all these different layers, you have to devote a lot of energy to things that are not necessarily bringing direct dollars in the door and said that can be a challenge especially if your, if you have tight resources, whether they be monetary or, or people not at the table. So many moving parts and pieces that considers the regulatory complexity of the United States that you mentioned it,.
It's on. Yahoo, and you know, what's interesting we're having this conversation and we just found out a few days ago that revolut we're going to be leaving Canada trying to figure out what is conjecture around it that it was graduation stole one thing and this is why I think a walk and talk about my location to the Canadian government. A lot of the startups as well, navigate to know, some of the stats are that, we are still wearing it around and how to navigate with him. So, there is also just that traditional cultural and process.
The access to Capital. We are nowhere near the United States Capitol and worry about what they're doing in the sentence. Yeah. Yeah. But it is really about Sunny for the understanding that landscape. They are getting in service and Santino and Sons of Jesus you say the regulation Landscapes and regulation City fines. Yes, I see why I probably take a slightly different reasons and Leo and Tom, you know, I couldn't organise the regulations. If it's probably some of the key challenges that we find Laura, we're first and foremost. We have a large portion of our clients already, in
North America, cross to your controller. So, it was an entrance into the market was likely easier, because people who've been free where we already have working relationships with starting from zero a.m. And I think us aside from the physical to 2 North America. One of the key challenges was a competitive landscape, you know, I've mentioned earlier this year. We also we need to consider us our competitors are. So I think from the local town of regulatory perspective.
We are very quickly finds that the US. And we actually care to imagine. Someone said to me recently that it looking at the u.s. Is actually like looking at different country in Europe. Through each state in the U.S. Has its everyday bro, regulations employment laws ways of entering the market which is very similar to Europe. If you're going to let you know, answer is from Germany, Spain. And so that's something that we had the chicken out and say, okay, you know, I thought we grew our operation here. What does that look like? Where do we need
to go? Where are the states that we need to be looking at? What are those key consideration in New York today like ourselves? Because we can look to them for intelligence to say what what should we be doing it because we're already Our entrance into this area, has probably been more straightforward than it might be for, I sent a car to ride. Text it that it had zero presence in North America. I'll bring you in on that point again. This is something that you will have experienced those. Providing support to send text. What do you
think, sipping braising find the knowledge and developing knowledge specialist? We would also work at other advisers are or you got a chance to be grateful. You came along just to find out what companies are offering a solution. Market Pantry into the market. More things you're living in in, in North America are companies into Professional Services for setting up a business in New York. Call trying to research North America. We can't afford in terms of Northern Ireland.
We're at, we're very pleased to have signed 50th North America today, and I think that's on the market. Expanded metal for us. Ya certainly show open biking or open finance, which I think a lot of the market is beginning to move through which is this idea. You know, that that we do have a set of data elements that are traditional Banking and then it's much broader than we think about 10 of all elements of financial data. And how might a consumer want to use that Finance, their own financial data, in a
range of the regulatory pieces, an interesting one because so far we've seen some examples. UK was really the first-mover. We seen it in Australia and some other jurisdictions where it truly is kind of a start from the regulatory standpoint. The US has really started from a market-leading standpoint. So, the question is not so much. A, we need a clear regulatory framework but is open banking happening. Happening is our consumers able to use and leverage their own data into in the US through standards bodies. Like you like that. We've been able to do kind of move
that ball forward that said technical standards can only go so far. There are still a very Elemental and fundamental policy questions that have to be answered and I think what we're seeing in the US and Canada are a little bit of push-pull of probably what will land with a hybrid approach. So where are there rules are guardrails that need to be clarified on, need to be stipulated. And then what can the marketplace do to make sure that standards and some of those foundational elements that we talked about are able to consistently and nimbly respond to market conditions, in terms of
approaches to regulation a man. I come from a can, a government Affairs background and I'm always a big fan of Engagement. So meeting with your policymakers and Regulators in your in your country of jurisdiction, or even in your look how to explain what it is, you're doing and why you're doing it. And then I also think this is really where collaboration comes comes. No, Single Fin check is going to be able to have kind of such a loud voice that day on their own will be able to move the policy needle and sew coming together with the whole ecosystem, or even an industry market. Segments to
be able to communicate what are core needs, or what are the key questions that are? That remain outstanding is really important. So maybe I'll just kind of wrap up by saying that I feel like the regulatory piece is really important because there are on a unanswered questions. And at the same time, I think that there that we've kind of put open banking or open finance in this box. It says it always needs to be regulation first and then the market can move forward. When in fact, if we look at it a lot of consumers are already participating in open finance. They may just not know the term in
certain. There's a lot of growth and Innovation that's occurring. So I think we need to kind of hold both together if you will. Yeah, that makes sense is already having an impact than that. I think engagements directions to Surry side and then kind of operation for from the fence side as well to put forward. Cool, needs some changes from finding, I can find something that you'll say nothing explodes and that other ways in which power is left of the timer.
Autonomy agreed there. So, earlier is the movement. All recognition. Regulators are very friendly and are always looking to open for discussion. We have every single night since it's really great. You are coming. Any are trying to snap? It wants to send the regulatory body will be there to support you and there is no other responsibilities that they have to follow the recipe to understand. Open banking open data open financing. Like I said earlier that has been playing around with it for a few years now and I
really want your voice. Without changing have to do it at the office. I know a while back, they were taking was looking at contributing to their consultations are being done by the Canadian government has released a report. So unification invoices report. Around. And in a way that is similar to the states in North America. Tennessee. I am say it's reached and directions to make a hold of Tom. Do you mean the last year during the pandemic science of the Northern Ireland?
Language people are a huge part one or two generations removed, you know that the north northern northern Ireland's official for people who have studied and worked in North Arlington. That. Pretty interesting. And did you find the same with with Century 21 breaking into North? America is the market. If you find a sad quote, to, to be important and what were some of the values? Yeah, I would ask her. What? What kinds just said. I think that their cultural similarities between Northern Ireland and I really helped us expands
and into North America and everywhere. I think. Yes, Whitworth, intek, we're right exits of people are still at the core of our company. If it's our biggest asset. Might find a little bit cliche, but actually the people in our organization on the culture that they dry forward, really is, I guess, what we say, differentiates us from our competitors, from the cultural perspective. I really, really close to me. I'm not staying as a, as a valued partner of the post test third parties. After, I think what she can want you to react. I know
where were no longer be a trusted partner that are going to be on this kind of long-lasting Journey with the other point that I would buy from from one of our clients very recently is we as an organization will sell to our clients what they want, but I think we want to be alongside with our clients partnership. We do on a salad and what they're kind of will sell you watch the physically. You're looking for is something that we really really focus on. We start to expand and grow in North America. It's translating into the North America when they hire locally over here. Look like
from the cultural perspective. And it's something that I'm very focused on to make sure that the way almost create.com culture, albeit in a new area Nation tips, long-lost thing as important. How do we battle it out? Northern Ireland in the UK. Share a lot of similarities. Definitely, a lot to to leverage when you come into Canada and expand on from from January. What do you a Grace home? I would agree with everything. That was just that, of course. Yes. That's right. All great points. I'm going to build off with
a couple things around kind of that,. Now, these are clearly, there are cultural differences and all these places that need to be accounted for and understood. And whether that's consumer or your customer Behavior, expectations, or whether that's a regulatory landscape, which we've already discussed but that you're one of the things that we're doing it, the financial exchanges saying that we're trying to build a consumer-centric ecosystem and that really didn't comes down to trust. We're talking about, send text today. We're talking about Innovation. We're talking about a
lot of new market entrants and processes, and ultimately that trust is what propels US forward. There was a recent study out in the US that sent Americans, still trust financial institutions, a great deal or the ecosystem with their money, but when it comes, Their data, it's 20 30 points below that trust level. And so, we are in a data economy in thinking about how do you make the customer more aware, more in control of what they're doing with their own data in using syntac and what their expectations are so that so that they are more
aware. The process is more transparent. I think there's a lot of work that the ecosystem needs to do to elevate that trust with all of the disruption in the marketplace. In to say, yes, this is still an ecosystem. Where is the consumer in the customer first? And really, I think a lot of other cultural differences can be accounted for if you really nailed that that single element. There's a lot of really great insights that I told him to consider when
it's time to take the plunge and when it comes to the market and how do you open a device inside the house tonight, at the right time, right? Place? I guess of your markets and initial target market. New York, State custody financial institutions and organizations is the easier part to Unser. And as you've already mentioned, so many of our classroom in New York based out of New York. And I think where the challenge comes is as we look to scale, doesn't make sense to build a large offering in New York with the costs associated with the scalability.
It's to say, as we grow, where, where do we go? But I think the most consistency is where they are clients, wants us to be probably doesn't make an awful lot of sense to position up on the west coast. So it's been largely client-driven. I think it was when was slightly different year for us to do our original plans, where we want to kill up in the US in 2015 and our CEO, spent some time looking at different state than brexit happened in 2016 or the brexit referendum, do everything was put on the back burner and saying that
we're in organization that is scaled up and move to America in the middle of the global pandemic. It's hard to kind of figure it was looking at it already mentioned. We had a tried-and-tested model that works in the UK that works in Europe. So therefore would we felt that it was right? At the time, was right for us to transition results in North America, I've mentioned before. So, it wasn't as if we were just ran into a new market. With, with we were already here. We already have that presents and soaps. The when is probably more difficult to take
your finger on it and save, this is when we're going to pull the trigger, but for us to wear with straightforward, just an organic kind of Journey today. Great news. Thank you. Yeah, that's what your organization Capital customers network, but don't worry. I'll be able to project to my current location. How do I make a great question in? And I agree with what's been said in terms of, you know, there is no a clear riskless move when it comes to entrepreneurship and
Innovation up. But at what I see a lot are folks that have maybe underappreciated. What does the barriers to entry? That? We talked about a little bit might be and specifically those that they don't control. So if you need a few red, Tori items to be clarified in order for your Market, to really succeed. At your likely, going to be waiting for a long time. And so you really may want to think about, you know, what are, what are any regulatory barriers or are there? Marketplace barriers in place? Is he? Okay. I need
this industry. In this industry, to adopt this way of doing things or this digital, a structured data approach in order to, to really move the ball forward and figuring out, kind of weird to you not control your, your own Universe in your own. Ecosystem up to me is are some things that I've seen, especially fintax show up with wide eyes and great plans and then really struggle because they don't, they don't necessarily control the market. I think that's the best time is when, you know, you've got a product or service, you can deliver, you know, that the marketplace at once
that product or service, and you can do. So, kind of with very little outside issues, if that makes I would just say it in some, it's really trying to take stock of the barriers that you might face and figure out. Which ones can you control and which ones can you control? Thank you very much, ready on the understanding that market having a key goal and minds of building relationships based on trust and cooperation, as well as playing today. I really enjoyed talking to you
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