I like to start with a quick show of hands so can you put your hand up if you
hands so can you put your hand up if you
hands so can you put your hand up if you know your bank managers name that’s very
know your bank managers name that’s very
know your bank managers name that’s very easy then so I’m pretty sure you can’t
easy then so I’m pretty sure you can’t
easy then so I’m pretty sure you can’t explain standard variable rate mortgages
explain standard variable rate mortgages
explain standard variable rate mortgages any 101 you’re very brave you’re a
any 101 you’re very brave you’re a
any 101 you’re very brave you’re a unicorn in fact my point is that
unicorn in fact my point is that
unicorn in fact my point is that financial services are confusing
financial services are confusing
financial services are confusing inaccessible and cumbersome but we all
inaccessible and cumbersome but we all
inaccessible and cumbersome but we all rely on them every single day now I’m
rely on them every single day now I’m
rely on them every single day now I’m pretty sure given a choice like this you
pretty sure given a choice like this you
pretty sure given a choice like this you could probably come up with a sensible
could probably come up with a sensible
could probably come up with a sensible decision but how about now not so easy
decision but how about now not so easy
decision but how about now not so easy is it so Who am I and why am i comparing
is it so Who am I and why am i comparing
is it so Who am I and why am i comparing wheelbarrows and credit cards well this
wheelbarrows and credit cards well this
wheelbarrows and credit cards well this is me from a young age I’ve loved making
is me from a young age I’ve loved making
is me from a young age I’ve loved making things now at first this meant sticking
things now at first this meant sticking
things now at first this meant sticking everything together with cellotape but I
everything together with cellotape but I
everything together with cellotape but I quickly discovered computers and built
quickly discovered computers and built
quickly discovered computers and built my first website when I was 11
my first website when I was 11
my first website when I was 11 shortly after graduating I moved to San
shortly after graduating I moved to San
shortly after graduating I moved to San Francisco to work for an early-stage
Francisco to work for an early-stage
Francisco to work for an early-stage tech startup I loved making software and
tech startup I loved making software and
tech startup I loved making software and software’s everywhere
software’s everywhere
software’s everywhere be it your phone your washing machine
be it your phone your washing machine
be it your phone your washing machine and your bank and if banks had your
and your bank and if banks had your
and your bank and if banks had your software then I realized that’s
software then I realized that’s
software then I realized that’s something I can make – last year I moved
something I can make – last year I moved
something I can make – last year I moved back to London and applied for a credit
back to London and applied for a credit
back to London and applied for a credit card to fund my entrepreneurship or
card to fund my entrepreneurship or
card to fund my entrepreneurship or unemployment as my mom called it
I was rejected
I was rejected it turns out after living outside of the
it turns out after living outside of the
it turns out after living outside of the country for two years I had a terrible
country for two years I had a terrible
country for two years I had a terrible credit score and I’m not the only one
credit score and I’m not the only one
credit score and I’m not the only one thousands of people get rejected for
thousands of people get rejected for
thousands of people get rejected for credit every single day for a whole raft
credit every single day for a whole raft
credit every single day for a whole raft of reasons they’re outside of their
of reasons they’re outside of their
of reasons they’re outside of their control so I founded a fin tech company
control so I founded a fin tech company
control so I founded a fin tech company now fin tech is short for financial
now fin tech is short for financial
now fin tech is short for financial technology and is an area that’s grabbed
technology and is an area that’s grabbed
technology and is an area that’s grabbed us ways of investment and many headlines
us ways of investment and many headlines
us ways of investment and many headlines of pink broadsheets in the past couple
of pink broadsheets in the past couple
of pink broadsheets in the past couple of years and now I spend my time hanging
of years and now I spend my time hanging
of years and now I spend my time hanging out with these guys but so much of the
out with these guys but so much of the
out with these guys but so much of the attention in fin tech has focused on
attention in fin tech has focused on
attention in fin tech has focused on building complicated wealth management
building complicated wealth management
building complicated wealth management products designed to answer questions
products designed to answer questions
products designed to answer questions like how could i optimize my investment
like how could i optimize my investment
like how could i optimize my investment portfolio or how can I consolidate
portfolio or how can I consolidate
portfolio or how can I consolidate insurance to save money
insurance to save money
insurance to save money in fact our industry has even come up
in fact our industry has even come up
in fact our industry has even come up with an acronym to describe our most
with an acronym to describe our most
with an acronym to describe our most lucrative target market
lucrative target market
lucrative target market we call them Henry’s and Henry stands
we call them Henry’s and Henry stands
we call them Henry’s and Henry stands for high earning but not rich yet but
for high earning but not rich yet but
for high earning but not rich yet but there are 13 million people in the UK
there are 13 million people in the UK
there are 13 million people in the UK that don’t have enough savings to
that don’t have enough savings to
that don’t have enough savings to survive losing even a quarter of their
survive losing even a quarter of their
survive losing even a quarter of their income and we’re still we’re busy
income and we’re still we’re busy
income and we’re still we’re busy closing the services these people rely
closing the services these people rely
closing the services these people rely on the most
on the most
on the most just this year we’ve seen thousands of
just this year we’ve seen thousands of
just this year we’ve seen thousands of bank branches close their doors and can
bank branches close their doors and can
bank branches close their doors and can expect more of the same cost-cutting in
expect more of the same cost-cutting in
expect more of the same cost-cutting in the coming years there’s a huge
the coming years there’s a huge
the coming years there’s a huge opportunity to use technology to help
opportunity to use technology to help
opportunity to use technology to help these people so back to credit scoring
these people so back to credit scoring
these people so back to credit scoring this is Leon Leon’s applying for a loan
this is Leon Leon’s applying for a loan
this is Leon Leon’s applying for a loan this application gets passed to a credit
this application gets passed to a credit
this application gets passed to a credit bureau to answer a very simple question
bureau to answer a very simple question
bureau to answer a very simple question is he going to repay or not the problem
is he going to repay or not the problem
is he going to repay or not the problem is the information that’s used to answer
is the information that’s used to answer
is the information that’s used to answer that question is incomplete at best but
that question is incomplete at best but
that question is incomplete at best but grossly irrelevant for a huge number of
grossly irrelevant for a huge number of
grossly irrelevant for a huge number of us and the reason is the bureau’s
us and the reason is the bureau’s
us and the reason is the bureau’s themselves refuse to involve the end
themselves refuse to involve the end
themselves refuse to involve the end user in the process I mean after all if
user in the process I mean after all if
user in the process I mean after all if you want to know about me then why don’t
you want to know about me then why don’t
you want to know about me then why don’t you just ask it’s a bit like me writing
you just ask it’s a bit like me writing
you just ask it’s a bit like me writing your CV for you even though we’ve only
your CV for you even though we’ve only
your CV for you even though we’ve only just met and the way the thing is the
just met and the way the thing is the
just met and the way the thing is the credit industry themselves actually sees
credit industry themselves actually sees
credit industry themselves actually sees this as a good thing I remember being in
this as a good thing I remember being in
this as a good thing I remember being in a meeting once sort of early on when we
a meeting once sort of early on when we
a meeting once sort of early on when we started the company and someone said to
started the company and someone said to
started the company and someone said to us well if our customers understand
us well if our customers understand
us well if our customers understand their credit scores then they’ll game
their credit scores then they’ll game
their credit scores then they’ll game the system and I didn’t say anything at
the system and I didn’t say anything at
the system and I didn’t say anything at the time but I wanted to say you know
the time but I wanted to say you know
the time but I wanted to say you know well if your credit score’s really good
well if your credit score’s really good
well if your credit score’s really good then gaming the system would mean your
then gaming the system would mean your
then gaming the system would mean your customers become financially healthy so
customers become financially healthy so
customers become financially healthy so great game on
great game on
great game on and what’s even where there is the
and what’s even where there is the
and what’s even where there is the lending companies in the absence of good
lending companies in the absence of good
lending companies in the absence of good data from the credit bureaus they’ve
data from the credit bureaus they’ve
data from the credit bureaus they’ve started coming up with their own methods
started coming up with their own methods
started coming up with their own methods of evaluation each more weird and
of evaluation each more weird and
of evaluation each more weird and wonderful than us I remember another
wonderful than us I remember another
wonderful than us I remember another meeting someone talked about a street
meeting someone talked about a street
meeting someone talked about a street check process which I assumed was some
check process which I assumed was some
check process which I assumed was some kind of sort of way of verifying address
kind of sort of way of verifying address
kind of sort of way of verifying address or where someone lived and and we turned
or where someone lived and and we turned
or where someone lived and and we turned out later what they were actually doing
out later what they were actually doing
out later what they were actually doing was getting in their cars driving past
was getting in their cars driving past
was getting in their cars driving past people’s houses and checking if they’ve
people’s houses and checking if they’ve
people’s houses and checking if they’ve mowed the lawn or taking the bins out
mowed the lawn or taking the bins out
mowed the lawn or taking the bins out that week and I’m sure you’ve all used
that week and I’m sure you’ve all used
that week and I’m sure you’ve all used websites like this or at least seen them
websites like this or at least seen them
websites like this or at least seen them you know pick how much you want to
you know pick how much you want to
you know pick how much you want to borrow and for how long but did you know
borrow and for how long but did you know
borrow and for how long but did you know as you move those sliders along these
as you move those sliders along these
as you move those sliders along these companies are actually measuring how you
companies are actually measuring how you
companies are actually measuring how you behave and using that to decide if your
behave and using that to decide if your
behave and using that to decide if your creditworthy and did you also know that
creditworthy and did you also know that
creditworthy and did you also know that they’ll change the initial positions
they’ll change the initial positions
they’ll change the initial positions when you load up the site based on where
when you load up the site based on where
when you load up the site based on where you live to try and convince you to
you live to try and convince you to
you live to try and convince you to borrow more it’s pretty obvious that
borrow more it’s pretty obvious that
borrow more it’s pretty obvious that technology can be a force for evil in
technology can be a force for evil in
technology can be a force for evil in financials tech in financial services at
financials tech in financial services at
financials tech in financial services at this point the idea of turning your bank
this point the idea of turning your bank
this point the idea of turning your bank into a robot it’s probably conjuring up
into a robot it’s probably conjuring up
into a robot it’s probably conjuring up some pretty scary images so let me use
some pretty scary images so let me use
some pretty scary images so let me use the rest of my time to try and convince
the rest of my time to try and convince
the rest of my time to try and convince you that technology can be the key to
you that technology can be the key to
you that technology can be the key to building a fair and inclusive financial
building a fair and inclusive financial
building a fair and inclusive financial system and one that works for everyone
system and one that works for everyone
system and one that works for everyone a recent study found that over 50% of US
a recent study found that over 50% of US
a recent study found that over 50% of US still want a face-to-face relationship
still want a face-to-face relationship
still want a face-to-face relationship with our bank and what’s more a third of
with our bank and what’s more a third of
with our bank and what’s more a third of us
us
us actively distrust banks that don’t have
actively distrust banks that don’t have
actively distrust banks that don’t have a high street presence even if mainly
a high street presence even if mainly
a high street presence even if mainly banking online so the question is how
banking online so the question is how
banking online so the question is how can we have a face-to-face relationship
can we have a face-to-face relationship
can we have a face-to-face relationship with our banks if they’re robots
with our banks if they’re robots
with our banks if they’re robots well NLP stands for natural language
well NLP stands for natural language
well NLP stands for natural language processing and is the field of computer
processing and is the field of computer
processing and is the field of computer science artificial intelligence and
science artificial intelligence and
science artificial intelligence and computational linguistics concerned with
computational linguistics concerned with
computational linguistics concerned with building interfaces between computers
building interfaces between computers
building interfaces between computers and natural language or put more simply
and natural language or put more simply
and natural language or put more simply converting written and spoken words into
converting written and spoken words into
converting written and spoken words into concepts a computer can understand and
concepts a computer can understand and
concepts a computer can understand and manipulate now I’m sure you’ve all used
manipulate now I’m sure you’ve all used
manipulate now I’m sure you’ve all used tools like Apple Siri or maybe like
tools like Apple Siri or maybe like
tools like Apple Siri or maybe like Google now set a time check the weather
Google now set a time check the weather
Google now set a time check the weather well later this year
well later this year
well later this year RBS are going to launch their Laveau
RBS are going to launch their Laveau
RBS are going to launch their Laveau chat bot which is powered by IBM Watson
chat bot which is powered by IBM Watson
chat bot which is powered by IBM Watson now at first this is just going to help
now at first this is just going to help
now at first this is just going to help direct customers to the right
direct customers to the right
direct customers to the right departments but over time as the
departments but over time as the
departments but over time as the algorithms learn it will be capable of
algorithms learn it will be capable of
algorithms learn it will be capable of much more complicated tasks imagine for
much more complicated tasks imagine for
much more complicated tasks imagine for example calling up your bank instead of
example calling up your bank instead of
example calling up your bank instead of hearing the usual your callers
hearing the usual your callers
hearing the usual your callers important to us please hold hearing hey
important to us please hold hearing hey
important to us please hold hearing hey Freddy how you doing if you remember the
Freddy how you doing if you remember the
Freddy how you doing if you remember the rents due this week or perhaps more
rents due this week or perhaps more
rents due this week or perhaps more likely hey Freddy looks like your
likely hey Freddy looks like your
likely hey Freddy looks like your overindulge that the weekend I’ve set
overindulge that the weekend I’ve set
overindulge that the weekend I’ve set aside the rent before you blow the lot
aside the rent before you blow the lot
aside the rent before you blow the lot there’s been a huge huge buzz around
there’s been a huge huge buzz around
there’s been a huge huge buzz around what’s called Robo advice which you’d
what’s called Robo advice which you’d
what’s called Robo advice which you’d assume was trying to build products like
assume was trying to build products like
assume was trying to build products like the ones I’ve just described and sadly
the ones I’ve just described and sadly
the ones I’ve just described and sadly what it actually means is providing
what it actually means is providing
what it actually means is providing advice to people with too much money
advice to people with too much money
advice to people with too much money that don’t our to invest it properly but
that don’t our to invest it properly but
that don’t our to invest it properly but those same conversational interfaces
those same conversational interfaces
those same conversational interfaces could help the people with most
could help the people with most
could help the people with most financial needs a recent report by
financial needs a recent report by
financial needs a recent report by Lloyd’s contrasted the digital access
Lloyd’s contrasted the digital access
Lloyd’s contrasted the digital access with financial capability and it found a
with financial capability and it found a
with financial capability and it found a surprisingly high nineteen point six
surprisingly high nineteen point six
surprisingly high nineteen point six percent of us or over 12 million have
percent of us or over 12 million have
percent of us or over 12 million have high digital access but low financial
high digital access but low financial
high digital access but low financial capability and could therefore really
capability and could therefore really
capability and could therefore really benefit from technology an eighty-seven
benefit from technology an eighty-seven
benefit from technology an eighty-seven percent of us are now online and the
percent of us are now online and the
percent of us are now online and the fast majority of us use a smartphone and
fast majority of us use a smartphone and
fast majority of us use a smartphone and perhaps what’s more surprising even
perhaps what’s more surprising even
perhaps what’s more surprising even those in the sort of 65 to 75 age group
those in the sort of 65 to 75 age group
those in the sort of 65 to 75 age group and now twice as likely to use a
and now twice as likely to use a
and now twice as likely to use a smartphone as they were in 2012 but even
smartphone as they were in 2012 but even
smartphone as they were in 2012 but even if we could talk to our bank how does my
if we could talk to our bank how does my
if we could talk to our bank how does my bank know what’s best for me banking
bank know what’s best for me banking
bank know what’s best for me banking needs to be relevant and we need to make
needs to be relevant and we need to make
needs to be relevant and we need to make decisions based on concepts that we
decisions based on concepts that we
decisions based on concepts that we understand
understand
understand I always remember hearing the story of a
I always remember hearing the story of a
I always remember hearing the story of a lady not far from office in London she’d
lady not far from office in London she’d
lady not far from office in London she’d been working with the debt charity and
been working with the debt charity and
been working with the debt charity and struggling with debt for a long time and
struggling with debt for a long time and
struggling with debt for a long time and finally overcome her troubles and she
finally overcome her troubles and she
finally overcome her troubles and she actually wanted to start saving so she
actually wanted to start saving so she
actually wanted to start saving so she walked into local branch of her bank and
walked into local branch of her bank and
walked into local branch of her bank and sort of declared to the guy at the desk
sort of declared to the guy at the desk
sort of declared to the guy at the desk cake I want to open a savings account
cake I want to open a savings account
cake I want to open a savings account and the chap said you know usual options
and the chap said you know usual options
and the chap said you know usual options you can get a nicer it’s fifteen
you can get a nicer it’s fifteen
you can get a nicer it’s fifteen thousand pounds tax-free maybe you want
thousand pounds tax-free maybe you want
thousand pounds tax-free maybe you want to get a savings bond two thousand
to get a savings bond two thousand
to get a savings bond two thousand pounds and if they didn’t do either of
pounds and if they didn’t do either of
pounds and if they didn’t do either of those things instead she left the bank
those things instead she left the bank
those things instead she left the bank and she was so embarrassed and ashamed
and she was so embarrassed and ashamed
and she was so embarrassed and ashamed because she only wanted to save a pound
because she only wanted to save a pound
because she only wanted to save a pound per week and what uses the fifteen
per week and what uses the fifteen
per week and what uses the fifteen thousand pounds I say to someone wants
thousand pounds I say to someone wants
thousand pounds I say to someone wants to save a pound a week banking needs to
to save a pound a week banking needs to
to save a pound a week banking needs to be relevant but how can we get relevance
be relevant but how can we get relevance
be relevant but how can we get relevance without reciting our life story or every
without reciting our life story or every
without reciting our life story or every time we pick up the phone or go online
time we pick up the phone or go online
time we pick up the phone or go online well prompted by a piece of EU
well prompted by a piece of EU
well prompted by a piece of EU legislation known as the payment
legislation known as the payment
legislation known as the payment services directive earlier this year the
services directive earlier this year the
services directive earlier this year the open banking working group was formed
open banking working group was formed
open banking working group was formed between the
between the
between the and the Oprah net open data Institute
and the Oprah net open data Institute
and the Oprah net open data Institute with the goal of building an open
with the goal of building an open
with the goal of building an open standard for access for financial data
standard for access for financial data
standard for access for financial data our financial data or put more simply it
our financial data or put more simply it
our financial data or put more simply it means that the click of a button I could
means that the click of a button I could
means that the click of a button I could go to any authorized company and say
go to any authorized company and say
go to any authorized company and say this is me here’s my financial story
this is me here’s my financial story
this is me here’s my financial story what’s the best deal you can give me
what’s the best deal you can give me
what’s the best deal you can give me better still it means that the products
better still it means that the products
better still it means that the products and services we use can be tailored to
and services we use can be tailored to
and services we use can be tailored to our exact requirements I’m thinking a
our exact requirements I’m thinking a
our exact requirements I’m thinking a credit card that detects missed payments
credit card that detects missed payments
credit card that detects missed payments before they happen or how about a
before they happen or how about a
before they happen or how about a current account that recognizes when
current account that recognizes when
current account that recognizes when I’ve got money money left over and
I’ve got money money left over and
I’ve got money money left over and invest it for me our banks make a huge
invest it for me our banks make a huge
invest it for me our banks make a huge amount of money by locking us in they
amount of money by locking us in they
amount of money by locking us in they hook us with free current accounts but
hook us with free current accounts but
hook us with free current accounts but then build walls around our data making
then build walls around our data making
then build walls around our data making it harder at first shop around for
it harder at first shop around for
it harder at first shop around for subsequent products open banking will be
subsequent products open banking will be
subsequent products open banking will be the key to knocking down those walls and
the key to knocking down those walls and
the key to knocking down those walls and creating competition and building
creating competition and building
creating competition and building products and services that meet our
products and services that meet our
products and services that meet our actual requirements rather than the
actual requirements rather than the
actual requirements rather than the one-size-fits-all approach we’re
one-size-fits-all approach we’re
one-size-fits-all approach we’re lumbered with today so do you remember
lumbered with today so do you remember
lumbered with today so do you remember Leon Leon’s a mechanic
Leon Leon’s a mechanic
Leon Leon’s a mechanic he works hard during the week it’s
he works hard during the week it’s
he works hard during the week it’s Keffer to pay his bills on time and even
Keffer to pay his bills on time and even
Keffer to pay his bills on time and even save a little he doesn’t have a credit
save a little he doesn’t have a credit
save a little he doesn’t have a credit score because he’s never borrowed money
score because he’s never borrowed money
score because he’s never borrowed money but he’s facing a shortfall in the
but he’s facing a shortfall in the
but he’s facing a shortfall in the run-up to Christmas and needs some extra
run-up to Christmas and needs some extra
run-up to Christmas and needs some extra cash to pay for presents now imagine if
cash to pay for presents now imagine if
cash to pay for presents now imagine if Leon could just explain all of this to
Leon could just explain all of this to
Leon could just explain all of this to his bank and get the answers he needs
his bank and get the answers he needs
his bank and get the answers he needs perhaps something like this
perhaps something like this
perhaps something like this [Music]
[Music]
[Music] so if I banks become robots then maybe
so if I banks become robots then maybe
so if I banks become robots then maybe it’s not such a bad thing as almost look
it’s not such a bad thing as almost look
it’s not such a bad thing as almost look after the Leon’s as well as the Henry’s
after the Leon’s as well as the Henry’s
after the Leon’s as well as the Henry’s thank you
”
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