David Higgins

Data compliance should be very high up the agenda for every business.

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HSBC and BNY Mellon early adopters for Quantexa GenAI suite “…HSBC and BNY Mellon are among the early adopter programme participants for Quantexa's Q Assist context aware generative AI technology suite. Quantexa describes itself as an AI, data and analytics software company focused on "decision intelligence" that helps organisations make operational decisions with data…” #decisionintelligence #ai #informationbanker Finextra

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This is going to be a game changer if governments have the will and legislation roadmap to see it through. The ability to have data portability between companies , in effect a ‘data passport’ for individuals, businesses and NGO’s with appropriate data governance, security, data privacy etc will accelerate growth , unlock the power of data. Combining curated data sets from different companies and integrating these to create specific insight and models for AI generated decision making will propel the AI Revolution we are currently going through. There will be multiple hurdles , and this is where the ecosystem of regulated firms, innovative data and tech companies, legal firms, consulting firms and importantly regulators can develop frameworks to create innovation whilst protecting customer data in the way the customer wants….(designed from a consumer / customer standpoint) This will also require the thorny subject of international data transfers to be approached for equivalence to be understand between the multiple data protection regimes exist impacting multi-nationals. Exciting times ahead, there will be a few missteps but the country and the FS ecosystem which innovates in this space will see the financial return (together with the customer benefits)…. ‘Central to the body’s plans is a call for ministers to embrace so-called smart data, a form of “data portability” that allows companies to more easily transfer information. Then-Chancellor Jeremy Hunt said last Autumn he wanted to “kickstart a smart data big bang” by overhauling data rules.’ #smartdata #data #datasharing #datatrusts #datacontracts #fintech #datapassport

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Unleashing Data Intelligence: For our September episode of the Data Book Club we hosted a double feature from the New York bestsellers 'Algorithms to Live by' and 'Super Forecasting' for a masterclass on how to think, act and use algorithms to better forecast and predict in a changing world. The goal of forecasting is to foresee the future accurately and algorithms can help both humans and machines. We discussed how we need to adopt an optimistic sceptic outlook and think like a scientist. A few highlights and please check out the books for a whole lot more insight:   Forecasting & Prediction are a Skillset that you can improve🔭 🔹 It’s a systematic approach that requires breaking down questions into smaller components. Use techniques like fermi questions and calibrated questions to help reduce uncertainty. 🔹 Actively seek various perspectives, test opposing views and constructively challenge each other. 🔹 Continuously update predictions as new information emerges. Invest in your Data Inspired Mindset 🧠 🔹 Key factors to being data inspired include your ability to offset biases, precision in making predictions and maintaining a growth mindset. 🔹 Practical experience and consistent feedback are essential for honing your skills. Add Algorithms to your Problem-solving Toolbox 🧰 🔹 Algorithms contains a lot of problem-solving wisdom that can help you make good decisions, predicts probable outcomes and becomes a more productive individual in life and work. 🔹 From knowing when to choose with optimal stopping, when do you stick or twist with multi-arm bandit algorithms, be incrementally less wrong with bayes theorem, when to leave to chance with randomisation to persuading others with game theory and beyond. What are in your toolbox?   Finally, are you a fox or a hedgehog? 🦊 or 🦔    Our data book club is our member-driven community & haven for the inquisitive, passionate continuous learners and data enthusiasts. 📚 #databookclub #databookclub #forecasting #algorithmtoliveby #superforecasting #prediction #datainspired #dataanalytics

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📢 Some interesting news related to payments and digital money: - Citi, J.P. Morgan, Visa, Swift, Mastercard and others are taking part in a Regulated Settlement Network (#RSN) PoC that will explore multi-asset settlement using shared ledger technology. https://lnkd.in/dnXFxaJq - The Eurosystem completed the first #DLT-related experiment for settlement in #wCBDC. https://lnkd.in/dyBMmJ9s - EBA Clearing completed a PoC to exchange #RequestToPay messages via R2P. Some of the participants were BBVA, BNP Paribas, CaixaBank, Commerzbank AG, Deutsche Bank,... https://lnkd.in/dndqVK7H - WordLine has formed a partnership with Google Cloud to boost its digital transformation efforts and use Google Cloud's infrastructure. https://lnkd.in/dbHxyhNM - Circle's USDC takes lead in Stablecoin transactions (Visa says) https://lnkd.in/dFGvwRjG - #Tether sees record net profit of over $4.5 billion in first quarter of 2024 https://lnkd.in/dVXAGYug - Stripe would start accepting the #USDC stablecoin for payments. https://lnkd.in/d9iRVzsJ - Bank of Japan launches #CBDC API sandbox. https://lnkd.in/dtzJa9vU

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A big milestone reached today with the launch of the Bank/FCA Digital Securities Sandbox (DSS). Well done to everyone who helped us to get to this stage today. And thank you to everyone who engaged in our consultation and industry body roundtables – your contributions have helped improve the design and operation of the DSS. We've made several changes from the initial consultation, including:   - More flexibility in firm-level limit allocations, with additional review points for firms to progress - Lower, more proportionate minimum capital requirements to encourage start-ups to join the DSS - Expansion of eligible assets to include non-GBP denominated securities - The introduction of a regular discussion forum for DSS entrants and regulators. See below for more info! Kushal Balluck Alex Gee Noreen Rana Alexandra Haydock Charles Gundy Nagi Tateno Rebecca Gunn James Thatcher Pavel Chichkanov Francesco Fici Charlotte Kelly Ali Aswad Justin Jacobs Helen Boyd Carmel Deenmamode James Webbe Aditya Bandyopadhyay #digitalassets #tokenization #tokenisation #sandbox

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Blimey. Barclays set to give away 80% of Barclaycard Payments, the UK's second largest merchant acquirer, in return for Brookfield, a giant PE fund, "bearing the costs associated with growing the business." Barclaycard must be in more of a mess than outsiders had realised. We knew the SME business was in freefall after Global Payments Inc. bought Barclaycard's best ISO but this deal suggests the corporate business is under huge pressure too. When Barclays stopped publishing KPIs mid-23 (never good sign), Barclaycard was processing >£300bn from 400K merchants so there's a big prize for a successful turnaround. Brookfield, which also has Network International on its books and Sir Ron Kalifa on the payroll, will have some easy costs to cut. eg Barclaycard has twice as many people as it needs. But the new owners will need to upgrade product and replace ageing systems fast if they are to stem customer losses to Stripe, Adyen, Checkout.com, Dojo and many others. https://lnkd.in/eKaXEwNU

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Interesting article from Colin about the new feature on Matching about to be launched.

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UK Finance has announced the commencement of a new experimentation phase for the 𝗨𝗞 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗲𝗱 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 (𝗥𝗟𝗡) in collaboration with eleven of its members. The RLN aims to serve as a common platform for innovation, facilitating various forms of money, including existing commercial bank deposits and tokenized deposits on a shared ledger. 🤝 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝘃𝗲 𝗘𝗳𝗳𝗼𝗿𝘁𝘀: • Leading financial institutions such as Barclays, Citi, HSBC, Lloyds Banking Group, Mastercard, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money, and Visa are part of this initiative. • Supported by EY (project manager) and Linklaters (legal and regulatory advisors), with a technology team comprising R3, Quant, DXC Technology, and Coadjute. 💡 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀: • Enhanced payment management options for users. • Strengthened fraud mitigation measures. • Improved settlement capabilities for businesses and the wider UK economy. 🔍 𝗘𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗙𝗼𝗰𝘂𝘀 𝗔𝗿𝗲𝗮𝘀: • Payment-upon-delivery for physical products to combat online marketplace fraud. • Simplifying home-buying processes and mitigating conveyancing fraud. • Digital bond settlement to connect digital customer money to digital assets. 🔬 𝗘𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗣𝗵𝗮𝘀𝗲 𝗗𝗲𝘁𝗮𝗶𝗹𝘀: • Runs until summer 2024, covering customer and business benefits, technical feasibility, and legal framework analysis. • Aims to explore foundational capabilities aligned with the BIS and Bank of England’s Project Rosalind for a digital pound API. 🗣️ 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: • Jana Mackintosh, Managing Director, UK Finance: "Our work aims to inform the best way forward for all forms of regulated digital money." • Lee Braine, Managing Director – Advanced Technologies, Barclays: "These experiments will provide insights into enhancing customer experiences and mitigating retail payment market fragmentation." • Tiina Lee, Chief Executive Officer, Citi UK: "Shared ledger technology can support emerging needs of the rapidly developing digital economy." • Tom Wood, Head of Global Payments Solutions, HSBC UK: "HSBC is committed to exploring more efficient and secure payment alternatives." This collaborative effort signifies a significant step towards modernizing payment systems, fostering innovation, and ensuring the UK remains a global leader in financial services. Source: https://lnkd.in/eJtNmmNf #PaymentsInnovation #RegTech #DigitalEconomy #Finance #Technology #Blockchain #Fintech #FinancialServices #RLNExperimentation #UKFinance

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Week 22: After a tougher week for fixed income RM Funds see excellent opportunities within credit to exploit after the weakness seen post UK CPI within UK credit and fixed income. The back up in yields is now offering tremendous value for money: 5 year yields touched 3.4% on 27th Dec and at one point last week touched 4.3%. We (still)do not believe we see the wides of last year/Overall in credit we (still) favour the front end with 1 year IG offering circa 5.4% and we are u/w longer dated A & BBB credit which is offering 80-130bp over gilts. Spreads have begun to widen over recent weeks, RM Funds suspect this will continue over the coming months. Sector positive: Natgrid rights issue shows the defensive nature and size of the assets the SVS RM Infrastructure bond allocates into.

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Think Again: For our May episode of the data book club, we had Martin Krsek host, for our debate on Adam Grant book on the ‘Power of knowing what you don’t know’. In a perpetually evolving world, when the fact change, we must enhance our ability to adapt and adjust our thinking. This is a ‘data inspired mindset’ that invests in rethinking skills to listen to the evidence, both quantitative and subjective, and combine it with human ingenuity to let it inspire us. 💡 Here are a few of my favourite insights from the episode and recommend reading / listening to the book for a whole lot more. 🔹 Why a scientific approach and an open mind helps us unlock the purpose of learning and to evolve our beliefs. 🧪 🔹 The secrets of great negotiators - from finding common ground, presenting fewer stronger arguments to maintaining a scientific curiosity. 🔹 Growing engagement by openly showing the options than painting as ‘pick a side’ story. 🗺️ Our data book club, is our member-driven community & sanctuary for the curious, passionate continuous learners and data enthusiasts. 📚 #databookclub #ThinkAgain #datainspired #rethinking #DecisionMaking #DataAnalytics

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In Wealth Management, Alpha is universally understood as the value added (often above a benchmark return) to client portfolios that arises from investment research, trading and other activities. Brooklyn Investment introduced - Operational Alpha - is the reduction of effort required to run any given part of the advisory service. An illustration of Scaling Separate Account Management with GenAI while balancing with advisor as a human-in-the-loop👇 https://lnkd.in/gjCHHTkF

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Illustrating the importance of defining and measuring the right #Metric / #KPIs.

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It’s great to share additional insights from our Financial institutions sentiment survey on the subject of #ai which follows on from Rohit Dhawan PhD post last week. Working with partners like Aveni and Cleareye.ai allows Lloyds to continue to innovate, drive efficiency and deliver value to our customers. Lloyds Corporate & Institutional #artificialintelligence #innovation

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Second resolvability assessment makes for major banks to be better prepared for major idiosyncratic or systemic deterioration.

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