hot topic: “the rise of fintech businesses and the...

1st edition | august 2016

market intelligence

Welcome. An interesting and busy Q3 for many in and around Corporate Banking. Mr Trump has fi rmly kicked Brexit into the small print and reassured us that our friends “across the pond” can always create bigger global waves. From a hiring perspective, senior mandates (Director+) have fallen, but analysts and associates remain in high demand as Banks, in particular, seek good quality in the engine rooms of Operations and back offi ce. As we continue to grow our Alternative Finance business, this quarter we asked your thoughts on the wonders of Fintech. Happy reading, enjoy your festive season and here’s to a productive new year for one and all!

introduction

Fintech seems to be one of those

rollercoaster trends. Starting with great

fanfare, then losing its way (and money)

the second half of 2016 has seen a

phoenix-esque rise. Such peaks and

troughs are to be expected however

and as one lender falls by the wayside

there seem to be 2 more ready to

pick up the baton. From what we are

seeing and hearing though I’m not sure

how much “tech” is being employed.

Traditional SME credit risk analysis

skills are carrying real weight and

solid, pro-active Business Developers/

RMs remain hot property. Despite this

bumpy ride you cannot argue with the

volumes being lent and the returns

available. Traditional bankers continue

to make the switch and the appeal has not diminished, from a candidate perspective at least. Fintech is clearly here to stay but longer term “survival of the fi ttest” selection will no doubt see the number of fi nance providers stabilise at more sensible levels.

Mark Russell, Managing Director and Founder

Our view

Hot Topic: “The rise of Fintech businesses andthe effect that will have on our traditional banking market”

newsletter | market intelligence | december 2016 | 2nd edition

Head of Commercial Banking, European Mid -Market Bank:

“ block chain / bit coin etc is the future and I do wonder to what extent the traditional banks do really understand such; they are being passed left and right and are just not able to keep up with speed; or is the playing field not fairly set by the regulators for all players? Something worthwhile to have an in-depth discussion about between all relevant stakeholders. ”Head of Sales, Boutique Trade Finance Specialist:

“ Indeed, there has been a rise in Fintech orientated businesses, which is healthy for the industry in terms of phasing out some of the older paper and manual – related activities and processes that have long plagued transactional elements of banking especially trade finance, which continues to be largely paper based. However, there will be many Fintech casualties too who forsake compliance and older more cumbersome, but conventional forms of compliance in order to process transactions faster and seemingly more efficiently at the expense of mitigating risk. As the banking sector continues to focus on compliance and mitigating corporate and internal banking delinquency with high profile cases consistently in the headlines or setting precedents such as the Libor rigging scandal and major institutions recently being fined record amounts for financing embargoed countries, risk

versus reward remains very much in the spotlight. In short Fintech has a part to play in maintaining the stability of the banking sector but it will not govern the whole sector because of the fragmented growth and introduction of fintech across the globe. Ironically some western societies have been slower to embrace it than developing economies. Regulation will control its impact especially with passporting requirements in the UK with the advent of Brexit, which will require UK banks to have this in place to participate within the EU. ”Managing Director, FinTech Business:

“ There will always be a place for traditional banks. However, technology is democratizing finance by matching people with capital to people and businesses who need it. This is opening up the finance market to borrowers who have struggled to raised finance from traditional banks in the past, and is also providing increased competition and choice for traditional bank clients. ”Consultant, Alternative Finance Business:

“ As the Banks continue to be very cautious about the markets they want to be in, the alternative finance market is growing strongly. There is such a diverse range of solutions in the market, from Crowd funding and equity positions to traditional mortgage lending. Low interest rates are a major driver, people want, and are seeking a good return on their money. It is achievable to obtain interest rates north of 6% without taking high risks. It is becoming more and more common

for property developers to raise private money and the banks are becoming the last resort. Whilst tech driven solution are a prerequisite in the modern finance market, people still want to deal with people. Companies and individuals want to discuss their projects and businesses and speak with people who have a true understanding of what they are looking to do. In addition, they want quick decisions and speedy drawdown of funds, this is where the fintech and alternative finance market have stolen the march on the banks and can work incredibly quickly. Without, doubt we are going through a silent revolution in financing and its future progress will be dependent on how well the alternative finance market keeps it’s ‘house in order’ and avoids the pitfalls of poor portfolio management.

.”

your view

Spokesperson, One of the UK’s largest P2P lending companies:

“ Peer-to-peer lending volumes are growing fast but are still a long way off the sort of sums that banks do, so banks won’t be worried (yet) about us eating into their volumes in a meaningful way. However, there are other ways in which established institutions are affected, simply because they are highly incentivised to ensure that their products remain competitive. “For example, if we can offer a loan at a rate which is just a few basis points cheaper than a bank can, that bank will have to match the price if it wants to stay at the top of the best buy tables. In this way, even small players can shake up consumer financial markets, and fintech companies’ disruption is already being felt. ”Spokesperson, Alternative Lender:

“ Entrepreneurs are attracted to the fintech sector because of its informality, freedom and sense of possibility. Many reject careers in banking, and the salaries that come with it, for the lifestyle of an entrepreneur and the satisfaction of helping to create a business. This is a real challenge for traditional banks, who can no longer rely on salaries and prestige to attract the brightest talent to work in traditional roles in The City. Some fintech companies are able to adopt a global business model from day one, unconstrained by the tightly regulated and siloed banking sector. At our fin tech start up, we were interested in creating a new global credit model, not simply competing with banks through clever use of data or leaner infrastructure. Fintech

is challenging the traditional banking market with new payment methods, digital currencies and machine learning algorithms in underwriting. Banks are racing to innovate and apply their incumbents advantage, pointing to their resilience throughout differing market cycles, while fin techs are building tech-led, mobile products that disintermediate banks’ costly infrastructure and internal bureaucracy. It is an exciting time to work in finance, and the future of the sector is very much up for grabs. ”Risk Manager, Alternative Financier:

“ There has been a great rush into this area to gain clients to gain funding and to gain traction. Of course not all of these businesses can succeed, the market simply won’t wear it, and so the key is to move to a Financier who you feel has a sound product offering, robust funding stream and clear and manageable risk policy. Due diligence is key. That all said the market is here to stay and so a new career path is possible away from traditional banking. ”

Managing Director, Mid-Market Bank:

“ These kind of businesses (that sit

within ‘fin tech’) tend to go through

phases, phase one is usually an explosion

of interest and early success stories.

Which is quickly noticed by others and

usually results in other more established

lenders, descending into the market

via Acquisitions or organic growth. The

Fin tech boom has been lucky due to

its genesis at a time when most banks

have slowed down lending to the SME

space and a lower risk tolerance for

private lending. This has birthed various

alternative finance lending most notably

peer to peer lending. I personally feel we

may now be entering a saturated phase

and natural selection would suggest not

all start-ups will succeed, juxtaposed to

a general drying up of founding (let’s not

forget how ‘all consuming’ these start-

ups can be when financed with someone

else’s money). Banks like ours have

noticed and are slowly de-risking in full

anticipation of mass consolidation and

some failure in the market.

.”

newsletter | market intelligence | december 2016 | 2nd editionnewsletter | market intelligence | december 2016 | 2nd edition


recent market moves ....

August 2016 Jeff Fallon

has joined BACB.

September 2016 Paul Baker

Head of Trade Finance at Scipion.

September 2016Sir Edward Lister

a consultant to CBRE.

August 2016Tim Jones

Senior Relationship Manager at Al Rayan Bank.

September 2016Jeroen Westrik has been named ABN

Amro’s global head of energy, commodities and transportation (ECT)

clients, natural resources.

September 2016Vikram Khanna

head of advisory at ICBC Standard Bank

August 2016Daniel Trinder

head of regulatory reform atStandard Chartered.

September 2016 Duarte Pedreira

as the new head of trade finance at Crown Agents.

September 2016Iain Laing

as chief risk officer at TSB.

September 2016Richard Flaherty

Nedbank – Associate, Oil & gas.

September 2016 Colin Westlake

at Crown Agents, sector head ofcommercial banks.

September 2016David Renwick

Head of Trade Fin at Barclays UK.

September 2016Tim Lamey

head of export and structured finance EMEA at Mizuo Bank.

September 2016 Paul Nolan

joins CAB as its money laundering reporting officer and head of the

anti-financial crime team.

September 2016 Richard Shayler

Senior Credit Analyst at Crown Agents.

September 2016 Michael Vallance

has been appointed as the new head of Santander’s UK transaction banking

and cash management division

September 2016 Simon Harris

has been appointed as non-executive chair of the credit risk committee for

Crwon Agents.

September 2016Alice Myers

Head of Property Finance and Construction at Puma

Investments UK.

September 2016Kenneth Rouse

been appointed to the board ofBNP Paribas Real Estate.

September 2016Amir Firdaus

Treasurer at Al Rayan Bank.

September 2016Ioana Maritiu

Senior AssociateTrade Finance at MUFJ.

September 2016Andrew Fursman

Head of Property Finance at Bank of Communications.

September 2016 Richard Murley

Chairman at United Trust Bank.

September 2016Murali ReddyCFO at CCB.



recent market moves continued

September 2016George Ashworth

Managing Director: Asset Finance at Santander.

October 2016Vince Sharma

Chief Risk Officer at BLME.

November 2016Graeme Laing

Head of Origination,Asset Finance at LCM Partners.

November 2016Steve Laws

RM at ABN AMRO Lease.

August 2016Nigel Richards

non executive director at Union Bank.

November 2016Avner Brunner

Business Development Managerat Falcon Group.

October 2016Paul Gilbertson

Senior Manager, CRE Lending at ICICI.

October 2016Trevor DaviesMLRO at UBL.

October 2016Patrick Sherrington

Director at First Asset Finance Plc.

October 2016Anne Marie Verstraeten

has been appointed head of the UKfor BNP Paribas.

October 2016Laura Kim Blake

Chief Risk Officer at Jordan International Bank.

November 2016Christopher MarksManaging Director,

Head of Emerging Markets,EMEA at MUFG.

October 2016Metro Bank

Andy Hallett as Director of Property and Hannah-Louise Smith as Director of Cash Management and Deposits

within their Commercial Banking team.

October 2016Chris Bush

left Goldman Sachs and joined as CEO of a fintech start-up called Shogo.

November 2016Andrew Clayton

Head of Financial Sponsorsat Santander.

October 2016HIG Capital highers newDirector Natale Giostra

November 2016Alex Rowe

Head of Client Services at Aldermore.

November 2016Richard Starsmeare

Head of Trade and Commodity Finance, Fim Bank.



contact usOur door is open and all contact is treated in total confidence. If you

wish to discuss your own situation, new hiring mandates, future hot

topics or anything else please do use the contact details below:

c james 80 Coleman Street, London, EC2R 5BJ

+44 (0) 20 7240 0760 [email protected]

@c_james_search www.c-james.com

Director:

Transaction Banking

Asian Bank, Hong Kong

$USD200,000 – $USD300,000 basic

Relationship Manager:

Trade & Working Capital

International Bank, London

£60,000 - £80,000 basic

Loans Administration:

Property, Trade & Corporate Banking

International Bank

£35,000 - £45,000 basic

Manager:

Internal Audit

Middle Eastern Bank

£80,000 - £100,000 basic

Director:

African Multinationals


£125,000 - £150,000 basic

Credit Analyst:

Leveraged and Corporate Banking

International Bank

£55,000 - £70,000 basic

Director:

Internal Audit

Asian Bank, London

£100,000 - £125,000 basic

Associate:

Trade & Project Finance

European Bank

£60,000 - £70,000 basic

Relationship Manager:

SME and Corporate Banking

Asian Bank

£50,000 - £70,000 basic

a sample of current mandates ....

Head of Risk:

International Bank

£140,000 - £160,000 basic

Senior Manager:

Compliance


£85,000 - £100,000 basic

Portfolio Manager:

Property Finance

Financial Institution

£55,000 - £70,000 basic

hot topic: “the rise of fintech businesses and the...

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