Mark Langton

The FCA has announced a fine of £11 million and nearly £100 million in redress costs for TSB due to unfair customer treatment. This serves as a strong reminder of the regulator's increasing focus on consumer duty and fairness in the UK financial services industry. The fine underscores the need for systems and processes that genuinely consider customers' individual circumstances. The way we treat customers needs to evolve -- not just to meet regulatory requirements but to deliver better service and outcomes to customers. I firmly believe GenAI presents a unique opportunity to build systems that offer truly tailored experiences and improve financial journeys for every customer, at scale -- enhancing both efficiency and results across the industry. #FinancialServices #UK #TSB #FCA #ConsumerDuty

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Fantastic speech on 'Modernising the trains and rails of UK payments' by Sarah Breeden, Deputy Governor Bank of England, given at the Innovate Finance Global Summit 2024 today. 'Money is the train, and the payment system is the set of rails by which that asset travels from sender to receiver.' Sarah has touched upon a range of topics, including innovation in payments and money, the Bank of England's work on retail innovation (stablecoin regulation and exploration of retail CBDC), the increased focus on wholesale innovation across settlement and payments and innovation by banks. 'As we look ahead, we appear to be on the cusp of widespread, more fundamental technological change. Technologies loosely grouped under the broad heading of ‘tokenisation’ – distributed ledger technology (DLT) and the potential for atomic settlement and programmability, have the potential to offer greater efficiency and functionality for ‘real world’ retail and wholesale payments. Such technologies offer the opportunity to enhance wholesale payments and settlement – low volume, high value activity between financial and corporate institutions, which includes interbank payments as well as the payments that settle financial market activity. Its great to see the role the Bank of England is playing in driving innovation in wholesale payments, financial markets and in banks’ retail payments offerings. Looking ahead, I am personally excited to see a joint public private collaboration in unlocking powerful use cases enabled by tokenization including cross-border payments and the fruition of #RLN and project Agora. Genevieve Marjoribanks Abigail Viljoen Andrew Pilgrim Oliver Carew Simon Spencer Richard Monks Jack Armstrong Muneeb Shah Dayna Bordin Matt Taylor Suruj Dutta Patricia (Pati) Partelow Diana Halder Sanjeev Chatrath Susan M. Barton Dr. Jan Rosam Brendan Maher, CFA

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📣 The Fintech rumour mill 📣 Many Fintechs will breath a sigh of relief as rumours circulate that the PSR intend to reduce reimbursement thresholds from £415K to £85K. The previous £415K was seen as something that put the sector at risk, with Fintechs in particular concerned that such a threshold could bankrupt them! This could be good news for many. But for the vast majority, the challenge lies in tackling the high volume, low value fraud - and we see this day in day out in our data (the attackers are relentless) - curious as to how much impact the threshold change will really have? With the October 7th deadline fast approaching there is no slowing down.. https://lnkd.in/eV78VzFE

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Exporting or importing…read on…

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The FCA has today fined Metro Bank £16m for failing to monitor over 60 million transactions, caused by an error in how transaction data was fed into the system and exacerbated by a lack of mechanism to check that transactions were indeed being monitored. At FINTRAIL we've compiled a list of 53 (!!!) questions for firms to check and challenge your transaction monitoring system. The questions cover: 📊 Risk identification to guide your TM rules ⚙ Calibration of TM rules and parameter setting 🔢 Data (including ensuring that data is fed accurately from the source system to the TM system) 📣 Alert management 🔎 Testing and oversight of the TM system If you can answer No to any of these questions, you might have a gap in your transaction monitoring system. At FINTRAIL we've helped a lot of firms to identify and remediate gaps in their controls, both as a preventative measure or as part of a remediation. Get in touch if you think we can help! You can download our guide here: https://lnkd.in/e7rzMxPR Or DM me and I'll send you a copy!

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Things worth reading: 5th November 2024 - Things we're reading today include ... UK Finance response to Bank of England discussion paper on Innovation in money & payments CFPB Releases Final Open Banking Rules: Key Takeaways for Fintech Companies US regulators must take reins on fintech oversight - bank associations Why Leading US BNPL Fintech Affirm has https://lnkd.in/eXEFKRPJ

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Significant opportunity for FS / Fintech recruiters Welcome back from the summer holidays. Great news for any recruiters dealing with Fintech firms. A lot of EU based financial institutions are likely to have to set up a UK entity, with at the very least an FCA approved CFO and MLRO by the end of the year (2024) - if they don't already have one. IMPACTED: EU / International firms operating in the UK under the FCA Temporary Permissions Regime (that expires at the end of the year). After Brexit, the FCA agreed that EU regulated financial services firms could continue operating in the UK under their "Temporary Permissions Regime (TPR). This was designed to give EU based firms time to set up a UK entity and apply for authorisation from the FCA. The application for authorisation requires the firm to provide a lot of detail, including specifying the key officers (e.g. CFO and MLRO) who will be overseeing the firm if authorised and a business plan demonstrating that once authorised the firm will be financially stable and meet FCA capital requirements, etc. Normally the proposed CFO and MLRO would be heavily involved in preparing the application for authorisation and the business plan. The FCA promises to respond to applications within 3 months, but in reality, after any questions they may have, getting authorisation normally takes around 6 months. We are currently 4 months away from the year end deadline, after which any fintech which hasn't obtained authorisation would likely have to stop doing business with UK clients until their authorisation comes through. (It would clearly make their investors deeply unhappy if the company had to put UK business on hold for a few months and they lost clients as a result). It is likely that a number of International / EU based firms will urgently need to appoint a CFO and MLRO, get their application in and hope that the application is approved before the end of 2024. As recruiters, you could probably win a mandate to find a CFO and MLRO for impacted firms by checking with your VC and PE networks whether any EU based FS / Fintech firms they back (a) do business in the UK (or plan to start doing so in 2025), and (b) have yet to set up an FCA authorised UK entity. If you have an international presence, you could directly contact EU based firms that you deal with to see if this is an issue for them. As the FCA in many cases has to explicitly approve the proposed CFO, their safest bet to ensure their authorisations go through as quickly as possible is to find a CFO who was previously approved by the FCA in their current / last role. NB I was approved by the FCA to act as CFO in my last role, which was with an FCA regulated business. I also helped a previous client prepare their FCA application and have strong regulatory experience, so if you find an EU client needing to hire a CFO for a UK entity, please keep me in mind. All the best in signing up a few new clients! #Fintech #recruiting #VentureCapital #CFO

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https://lnkd.in/eVUf_fxg Hot off the press 🔥 The UK’s payments regulator (PSR) has confirmed a U-turn on the maximum amount banks and Fintechs will have to reimburse fraud victims under the new regime. After announcing a two-week consultation on 4 September, the PSR said today that firms will now have to refund victims of authorised push payment (APP) fraud up to a limit of £85,000 per claim from 7 October. This cap is down from £415,000, which triggered concerns from the industry and government that it could be unaffordable for smaller payment firms and encourage new types of scams. “This was a carefully balanced decision – which provides significant protection to fraud victims and strikes an appropriate balance having regard to the PSR’s innovation and competition objectives and making sure that payment systems work well for everyone,” the PSR said. #psr #regupdate #regaffairs #fintechs #banks #banking #payments #UK

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How much is your business losing to fraud or financial crime??? Get in touch on 02920 856737 to see how you can protect your business!

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🚨 𝙅𝙐𝙎𝙏 𝙄𝙉: Monzo Bank pumps €4m into new Irish 🇮🇪 unit. The news comes just a few months after Monzo’s chief executive, TS Anil, said that the company was in the midst of setting up its EU base in Ireland. At the launch of the company’s annual report in June, Mr Anil said that “Ireland will act as our gateway to European markets, and we’re in the early stages of setting up an Irish office”. He added: “We believe every part of the world needs a Monzo so we’re focused on expanding our offering, building strategies to disrupt the US with a first-class leadership team in place.” Since then the company has set up a new company and appointed a number of experienced financial industry figures as directors. Monzo, which competes with other online banks such as Starling and Revolut, has about 10 million customers and more than 450,000 business customers, according to its own figures. In its most recent financial reports the company had a pretax profit of £15.4 million (€18.3m) for the 13 months through March. That compared with a £116 million loss a year earlier after its revenue rose to £880 million. During that period the company loaned £1.4 billion to its customers, a rise of 84 per cent. More info/source: https://lnkd.in/d-fP-_5y Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

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It used to be that SME lending was the domain of accounts armed with sharp pencils and years’ old audited financials, but a lot has changed and changed very quickly. Arguably, if you’re a credit-minded data scientist data, business funding is where you want to be. While at Money20/20 last week, I sat down with Rob Straathof, CEO of Liberis, to hear about how they’re embedding frictionless business finance and, more importantly, how that is provided access to growth-accelerating capital to sectors who’ve long been underserved.

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Things worth reading: 1st November 2024 - Things we're reading today include ... Banks’ use of AI could be included in stress tests, says Bank of England deputy governor World’s Safest Banks 2024: World’s Biggest Banks

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🔎 Did you know that the length of time (16 weeks) between Labour being elected and when they will publish their first budget is one of the longest gaps between an election and budget ever? 📕 Read our practioner point of view from Client Director Tom Carter on the IPA (Institute of Practitioners in Advertising) Bellwether Report in Performance Marketing World #TheBudget #BellwetherReport #Advertising #Media #Forecast https://lnkd.in/evTtKr64

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