Capital Markets Corporate

November 2, 2018

Our Weekly Newsletter


Across Instinctif Partners’ Financial Services team, we are always keeping an eye on the key developments taking place across the sector to evaluate their impact on the many businesses we work with. Here we share our picks of the week’s most interesting news, and our expert views.

Female Pensions Boost

A High Court ruling is expected to lead to millions of women receiving a pension boost. Lloyds Banking Group has been instructed by the court to equalise pension benefits for men and women, in a decision which is set to cost the bank up to £150m. This landmark ruling is also likely to have wider ramifications for thousands of companies who may have unfairly helped male employees to bigger pension pots than their female counterparts. (From Reuters, 26 October 2018)

Styling It Out With Fintech

For those looking to keep it fashionable, the latest must-have looks are now being shaped by what you keep inside your purse or wallet. Monzo orange – or “hot coral” as the colour is called – is set to replace ‘millennial pink’ on the catwalks and in outlets across the nation. Clearly, the fintech revolution is influencing society from all angles. (From Sunday Times, 28 October 2018)

AI Beats The Best Lawyers – Who’s Next?

Twenty top US corporate lawyers were allegedly beaten by AI in a battle of legislative prowess. In a task which involved spotting issues with five contracts, AI software achieved an average 94% accuracy rate, while the lawyers trailed behind on 85%. If AI can outsmart some of the smartest lawyers, which industry will it trump next? (From Hackernoon, 25 October 2018)

Giving Renters A Credit

UK tenants with little to no credit history have historically struggled to apply for mortgages regardless of their ability to manage monthly rent – but all this could now change under an initiative from The Rental Exchange. Tenants will be able to keep an official record of their history of rental payments, so reliable payers can have this track record taken into account when lenders score and judge their ability to pay back a loan. (From Financial Times, 24 October 2018)

The Fraud Is In The Face

In the latest attempt to clamp down on banking fraud, Chinese banks have begun using smart technology that detects micro-changes in people’s expressions, which they claim can help spot early signs of fraud in customers’ faces. This comes as some banks are worried that customers are lying about what they are planning to use the loans for. Systems are already in use which flag customers for further investigation if something about their expression looks amiss. (From Financial Times,  28 October 2018)

Fintech Disruptors Share An Outlook For The Future

Last week we attended the Fintech Disruptors London edition, hosted by Netguru in Canary Wharf. There was an absorbing discussion featuring some of the biggest players in the UK digital banking scene including Lloyds Banking Group, Revolut, Starling Bank and Monese.

The panel agreed that the biggest trends in banking is convenience, which Revolut and others are heavily focusing on. They noted that many brands are trying to become the “one app” for all financial services by creating a market place or platform to automate consumers’ many financial decisions, from home insurance to pension planning.

On the subject of trust, the four panellists agreed that old and new players alike have a long way to go to establish a deep rapport with consumers. Lloyds, as an incumbent, reflected on the damage of the 2008 recession and noted that one decade on, long-established players still had a lot of ground to make up to build bridges with consumers. Conversely, the newer fintechs are suffering from a lack of brand equity in a market that relies heavily on trust.

Nonetheless, there was agreement that the best way of gaining trust from a broad customer base is through product innovation and remaining relevant and convenient.

The speakers concluded that a uniting mission for fintech should be to focus their efforts on improving people’s and communities’ prosperity. Good economic outcomes are good for everyone, after all.

There are clearly ambitious aims shared by many digital banks. Building trust, gaining deeper customer relationships and influencing the market will all require smart storytelling. In a complex, competitive and dynamic landscape, comprehensive communications strategies will separate the leaders from the crowd. Creds Button