FMG Highlights: CEO Devadas Krishnadas speaks at the Singapore Fintech Festival 2018

Date November 15, 2018

On 14 November 2018, FMG CEO Devadas Krishnadas spoke at a panel discussion on “The Accelerated Evolution of the Bank” hosted by the Oracle Group at the Singapore Fintech Festival.

This session brought together investors and market participants from Singapore, Europe and America to share their perspectives on the future of banking and financial services. With Oracle Group’s Vice President Mr Mark Smedley as moderator, panelists Devadas Krishnadas, Founder and CEO of Future-Moves, Ketan Samani, Vice President of Consumer Digital at Singtel and Fabian Vandenreydt, Executive Chairman at B-Hive, they wrapped up the session with an engaging discussion and Q&A session on the 2023 Market Outlook, Observations and Strategies.

Insights from our Chief Executive Officer:

  1. “Within the context of Fintech, you see almost the absence of policy coordination between regulators. Some are playing catch up while others are taking a wait and see approach. If crisis does impact the Fintech space, a mechanism needs to be in place for them to come together with a common understanding and common vocabulary for them to work together. More broadly, there is a disturbing trend of populism which if feeds a disinclination to work together. This is a cause for concern that we should have because what that means is that when a crisis starts, even if that crisis is intrinsically self-containable at that point, because of this absence of coordination or the weakness of the propensity to coordinate, it becomes larger than it should be and can start to contaminate other sectors. So, while we talk about the shiny new things in the markets, actually it is old solutions and remedies of communication, cooperation and coordination in crisis response that will still matter.”

 

  1. “What you see happening in the Fintech industry is a rising up of natural monopoly. These natural monopolies are competing with governments for control of information. Governments used to be the only authority that could legitimately collect and store information relating to the most intrinsic and private concerns of individuals or corporates. Now, technology companies are gathering it, controlling it and are using it in ways that are not regulated or are not necessarily responsible or responsive to government policy. Hence, I believe it is going to be a question of either governments getting on top of them or trying to find some common space where the responsibility for governance is then burden shared between these natural monopolies. In the next 10 – 15 years, we are going to find a new definition for governance and are going to try a new structure for governance. Regimes in countries which are proactive in working towards this in a constructive way will get ahead of the curve and regimes that seek to combat this and contest this – I think are going to get bogged down. What we will find happening is a little bit of the regulatory arbitrage where concession corporations then play a little bit more in this space. But it is important to ask ourselves if we are dealing with a lack of change or an ocean of change. If we accept that we are dealing with an ocean of change, then it is critical to find a broad enough beach for traditional historical models of leadership and governance to confront each other and to find a way of working harmoniously as a governance ecosystem.”

 

  1. “Banking is going to endure. Banking and financial services are integral to modern life. The important question to ask ourselves is, notwithstanding all these technological drivers, what do we want banking and financial services in general to assure? We want the assurance on financial inclusion, we want a future where there are more banked than unbanked in the community. Secondly, we want to have financial security which means capital has to be protected. It requires regulation and macroprudential measures within a global jurisdiction. Thirdly, we want financial stability. That means leadership within technology driven structures, whether they are now being regulated or they have not been regulated such as Alipay, need to be able to demonstrate that capability and willingness and the capacity to be able to lead the organisation in a way that inspire confidence in consumers and financial systems.”

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