LFP142 – Capital Markets Fintech & “Grown-Up” Digital FS w/ Martin Boyd FIS

Capital Markets is the beating heart of FS – far higher tech and far more hardcore than just bank accounts and it is by definition the most complex area. What can we and Fintech learn from the super-big boys working in this world?

FIS systems process an astonishing amount of $9 trillion moved around the world per annum. They acquired the super-well known FS systems vendor Sunguard systems at the end of 2015

Martin Boyd is President of Capital Markets at FIS and is thus well-placed to give us the view on FS and “digital” from the most hardcore high volume end of the industry spectrum.

Indeed as we all regularly gloss “digital” as being “interweb + smartphone” what does digital actually mean when we are talking about wholesale markets for megabanks – I assume it isn’t “interweb + smartphone” – what does it mean in this context?

What we can learn, the view from the top of the mountain and much more are discussed. Topics include:

  • Architecture of the City cf Canary Wharf and the relevance of this to IT systems development
  • The importance of energy management as a sustainable approach to being a business person
  • The rhythms of business and so need to be flexible in terms of ones other activities that help regenerate the soul/spirit
  • Martin’s mentoring – the enjoyment thereof, the two-way nature and the advantage of being in BigCo to benefit from this in many cases
  • Martin’s career journey from StartUp to running a major division of a business doing trillions of dollars of turnover per annum
  • The long-term benefit of a good grounding at the start of one’s career
  • The advantages of BigCo for career development in terms of changing roles which you couldn’t do by changing from one SmallCo to another SmallCo doing a completely different role
  • Mission-objective in B2C being frictionless transactions
  • Capital Markets is incredible high.y regulated
    • efficiency
    • access to data to provide to regulators
  • Is there space for new Fintechs in huge oligopolistic markets such as Capital Markets Fintech
  • Regulation as creating boundaries
  • Where the gaps and opportunities lie
  • The historically anomalous nature of modern regulation
  • The problem arising form layered development of regulation as opposed to the Canary Wharf “lets start again with a new site” approach to architectural provision for modern businesses
  • Banks have histrionically gone about regulation in an incremental/layered/segregated fashion
  • The impact of the US’s “Consolidated Audit Trail” regulation – threats and opportunities
  • The need to shift capital around between business lines
  • Outsourcing systems and processing
  • The challenge for BigCo of inertia – tomorrow tends to be like today – hard to break out of that inertia but this is necessary to add-value in new ways
  • Execution is super-streamlined compared to a decade or two ago
  • Digital in Capital Markets, unlike B2C, implies:
    1. access to data when its high volume and highly regulated; data lakes – moving data into a form wherefrom it can be accessed in many different ways
    2. lowering cost – AI and ML on top of this – fixing breaks in operational flows
  • This provides the background to more B2C Fintech – need a back-end for the wholesale business as a base
  • An interesting fact from FIS’s annual survey – comparison of growth rates of high-intensity users of AI/ML with others, IT spend – chicken and egg
  • FIS main businesses:
    1. Capital Markets
    2. Merchant Services (now including the Worldpay brand)
    3. Core Banking Payments
  • Where FIS is focusing, thinking and developing

And much much more 🙂

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