Podcast appearances and mentions of lawrence wintermeyer

Before the FTX blowup there was a serious conversation happening around regulation of the DeFi space. During our Merge event in London last month I interviewed Lawrence Wintermeyer, the Chair of the GBBC Digital Finance (and the former chair of Innovate Finance) on the topic, Paving the Way for Web3 Legitimacy.Given the events of the last couple of weeks this topic has new urgency. For the DeFi industry to scale it must begin a serious and open discussion with regulators and it needs to address some of the thorny issues caused by its decentralized structure. This interview was recorded on October 17 and there was a prescient quote from Lawrence during the interview: "The industry just does not look like a very safe place to put your money right now."In this podcast you will learn:Why people are at war in the digital innovation space.Why it is critical for the web3 industry to come together and self-regulate.What a co-regulatory model could look like.How can approach regulating DeFi where it is by definition decentralized.The difficult issues that most need to be addressed.Why identity and liability considerations are so important for DeFi.How far away we are from effective DeFi regulation.His thoughts on permissioned and closed DeFi networks.What's the most practical thing that we can do to create Web3 legitimacy.Connect with Lawrence on LinkedInConnect with Lawrence on TwitterConnect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

This week, Jeff sits down with FinTech expert, and friend from Davos, Lawrence Wintermeyer, Co-Chair of Global Digital Finance. They deep-dive into a wide range of topics, including digitization of products and services, and the opportunity for governments to utilize digital currencies for relief in times of crisis. Lawrence was the CEO of Innovate Finance, an NGO established by U.K. Prime Minister David Cameron with the goal of promoting FinTech by openly collaborating with regulators, technologists, and other key members of the FinTech ecosystem. Now, among other important efforts in the world of digital finance, Lawrence strives for greater adoption of technical standards and the use of digital assets. Jeff and Lawrence tackle subjects like how FinTech can become a driving force behind more resilient industries and why asking governments to solve things on their own actually might not work. They also discuss topics like the emergence of stablecoins as friction-less digital currencies, the rising tide of digital identification, and opportunities for commercial and government institutions to collaborate on resiliency initiatives. 

Episode 28 of our TechLaw Podcast Series features Executive Co-Chair at Global Digital Finance, Lawrence Wintermeyer, discussing the Fintech sector with one of our partners, Martin Bartlam. The recent findings from our European Technology Index 2020 focus the discussion on the key drivers to success in this space and the importance of regulatory collaboration. Find out more: https://www.dlapiper.com/focus/2020-european-tech-index/fintech/?utm_source=soundcloud&utm_medium=social&utm_campaign=tech-index&utm_term=europe&utm_content=tech-index-podcast

Ahmed is at the World Government Summit recording from a beautiful room that overlooks the beautiful Jumeirah Beach and the Madinah Jumeirah in all its glory. And what an amazing line-up he have for this episode with two amazing guests, Lawrence Wintermeyer from Global Digital Finance and Martin Bartlam from DLA Piper. Adult supervision After initial introductions, Ahmed recalls with Lawrence the crypto panel that took place at the World Government Summit this time last year which comprised mostly of bitcoin maximalists. This is in complete contrast to this year’s crypto panel at the World Government Summit where panel members all comprised of regulators and lawyers. Interesting how much changes in one year! Lawrence and Martin emphasise the aspect that the crypto market is reforming and it is a time of consolidation and building before another round of excitement will come to the market again. Why reinvent the wheel? Most commentators would ascertain that new regulation would need to be implemented before the industry would see mass adoption. Martin, however, disagrees putting forth the viewpoint that we already have an effective regulatory framework in place and instead the market would need new infrastructures such as regulated exchanges, effective KYC procedures and custody solutions to exist before we see real traction. In an environment of seeing the next wave of infrastructure the two guests believe that regulators and lawyers are already up to speed with recent developments in the space and are preparing for the new wave of innovations coming in the next couple years. Let’s have a new term for STOs Ahmed takes a crack at killing the term security tokens and STOs and the guests have slightly mixed views about this. Check out the episode to hear more! Conquer or Partner? Ahmed moves the conversation to see whether or not the current incumbents are able to or will bypass the current innovators and use their mass resources to move to a truly digital platform. The guests believe that the partnership model seems to be an approach that is common in the industry and that start-ups in the future will provide very niche services. Incumbents, they argue, have gone better in researching and collectively working together to find opportunities and actively contribute to the industry. All the above and more was discussed in this week’s episode of Encrypted. But before the ending, the two guests talk about their biggest takeaways from the World Government Summit. So do make sure to check out this episode to hear their takeaways and what they have to say. We really hope you enjoy this episode as we worked really hard to get this specific episode recorded and yes sorry about the echoes in this episode. If you liked what you heard, please do leave us a review on Apple Podcasts and the other platforms. Don’t forget to support us by spreading the word! Special Guests: Lawrence Wintermeyer and Martin Bartlam.

Did you know that Satoshi Nakamoto is the name used by the unknown person or people who developed bitcoin? And why is blockchain an important part of financial services? In this episode of #LØRN, Sunniva talks to the principal of Elipses, Lawrence Wintermeyer, about what bitcoin, blockchain, DLT technologies and crypto currency are, and how it all started 10 years ago.— Bitcoin miners consume the annual power of the equivalent of Denmark, says he in this episode. This is what you lørn: Satoshi NakamotoBitcoinBlockchain Financial ServicesBli med og #lørn du også — abonner på podkasten vår!Følg oss gjerne i sosiale medier

Shaking the bad apples from the ICO tree, self-policing code of conduct changing the world. Global regulation of the ICO sector has proved contentious, with individual jurisdictions reacting differently to the rise of tokenisation and the need to deal with bad actors and the potential for fraud. But it is widely agreed across the industry that it can only work if it avoids regulating this creative and passionate sector out of existence altogether. It became clear early on to today’s guest, Simon Taylor, fintech expert from within the traditional banking sector - at Barclays. With so much happening in the ICO space in 2017, he knew there was a wave coming. One that the regulator might snap at, rather than nurturing the innovation this could kill it off. During research, he was meeting more and more mainstream banks concerned that tokenisation would become stifled by regulation. They liked the idea of tokenising traditional assets, making the system hugely efficient. And whereas in the early days of blockchain the banks’ reaction tended to be a standard ‘no’, because of propaganda around  Bitcoin, in more recent times they have actually started driving the innovation, setting up their own innovation units to explore the possibilities of the technology, and looking to bank the sector. The answer seemed obvious. As Simon says, in order to engage with risk, you need to know what it looks like. And to reassure the regulator that you know what you’re doing, you need to demonstrate you understand what it is you’re trying to do! One thing that became apparent was that the clinical trial methodology which has been applied fintech and other areas of the blockchain space has challenged with bankability, with no chance to do small tests on just a few subjects – banking tends to work on an all-or-nothing basis. So with a background in creating digital solutions, including the UK’s second ever banking app, he founded Global Digital Finance alongside Lawrence Wintermeyer of Innovate Finance. He felt that it must be up to the industry itself to become self-policing and to create its own Code of Conduct – along the lines of the FX Code regulating currency exchange. So the remit was creating a taxonomy, a common language, and building a principles-based code that is self-policing and run pro-bono. Similar The same kind of codes have also rolled out in other parts of fintech – peer-to-peer lending for example.  The interim advisory board held a consultation this summer, during which over 200 organisations gave more than a thousand bits of feedback. The code of conduct will be finalised over the coming months, and the activities within the ICO space carrying risk outside the normal regulatory parameters can be flagged as outside the code. Legitimate entrepreneurs in the token space need to differentiate themselves from the bad actors, and this kind of self-policing model can clean up the sector’s image if done right. A final thought from Simon? If we radically change the infrastructure of operating norms and assumptions within financial services, we can make the greatest difference to every industry and every person alive.

Today, we welcome back our good friend Lawrence Wintermeyer, former CEO of Innovate Finance. Lawrence now works with a range of institutional investors and companies to help them capitalize on the shifts underway as part of the digital revolution. Lately, he's been doing a lot of work in cryptocurrency and tokens, the topic we pick up today.   We also connect with Oliver Oram, founder of Chainvine, a blockchain company, and lead advisor to MindArk, a video game developer preparing an ICO.   We get into some of the higher level developments in the crypto space with Lawrence, and dig into a specific ICO use case with Oliver in the second half of the episode.   It feels like we're in the middle of a hurricane in the crypto space, with prices blowing in all directions while the underlying technological and social components struggle to take hold. Crypto is one of the most fascinating topics out there right now, and you're bound to have views. Let us know what you think @rebankpodcast @lwintermeyer and @ONOUKSV.

This week, normal service is resumed as we returned, inexorably, to ANOTHER new Bitcoin high - this time, over $9,000 and, according to many, fast approaching $10,000. So is it just the result of more buyers than sellers in the market, or could there be other reasons? Plus, why maths might mean Bitcoin could reach $100,000 by 2021. Bonds on Ether! Nivaura has issued the UK's first regulated Ether bond. But what will be the impact on CSDs? Following a spate of rogue ICOs, we discuss the possibility that the US Department of Justice (DoJ) will crack down, and more fool the first ICO to fall foul of the DoJ as they might be looking to set an example. Non-financial blockchain applications are coming. But will it succeed in blockchain-based air travel? Several airlines have partnered up to try to use DLT to iron out some of the bumps in air travel with luggage. Plus, how to talk about cryptocurrency at the dinner table, and Ripple did a thing...again. This week we also bring you two special features. Firstly, a roundtable on the ICO space with Ruth Wandhofer, Global Head Regulatory, Market & Innovation Strategy at Citibank; Jeff Bandman, Principal at Bandman Advisors; Lawrence Wintermeyer, Principal at Capstone; and Oliver Oram, founder and CEO at Chainvine. And second, Simon talks to very special guest Commissioner Brian Quintenz from the CFTC about the derivatives markets and the potential impact of distributed ledger technology (DLT). Don't forget, this episode is sponsored by ZILLA, a new ICO marketplace app. Browse ICOs, upvote or downvote so the good ones rise to the top and, if you like an ICO, participate with one-click! Pre-register for the limited ZILLA beta app at ZLA.io/bi (https://www.zla.io/bi). We hope you enjoy the show and, as ever, don't forget to subscribe. Missing out on the conversation? Tweet the show @bchaininsider or to read more about the news stories and have your say visit fintechinsidernews.com (https://fintechinsidernews.com/). Special Guests: Brian Quintenz, Jeff Bandman, Lawrence Wintermeyer, and Oliver Oram.

Lawrence Wintermeyer (@LWintermeyer) is the CEO of Innovate Finance, an independent membership association that represents the UK's global FinTech community.   Founded in 2014, Innovate Finance looks to accelerate the UK's leading position in the global financial services sector by supporting the next era of technology-led financial services innovators.   During our conversation, Lawrence references Innovate Finance's recent sandbox paper, which is available at industrysandbox.org. Innovate Finance itself is very active online at innovatefinance.com, and also supports the global fintech hubs federation, which has a great website at thegfhf.org.   As always, connect with us on Twitter, Facebook, LinkedIn or on our website at bankingthefuture.com.   If you like today's show, please subscribe on iTunes, or your podcast platform of choice, and leave us a review.   Thank you very much for joining us today. Please welcome, Lawrence Wintermeyer.

It's an interview double header! We talk to Poornima Vijayashanker and Lawrence Wintermeyer. First up Aden interviews Poornima Vijayashanker about her work on Femgineer, her previous life at Mint and what it meant to be at the forefront of Fintech before Fintech had broken through After the break Chris Skinner interviews Lawrence Wintermeyer about Innovate Finance's new Industry Sandbox Consultation. We discuss why a sandbox is important, who should be getting involved, where we currently are with the regulators. This is a great insight into where the industry is going next and how companies both big and small can make a difference. Enjoying FinTech Insider? Tell a friend about us and please leave us a review on iTunes. The post Ep249 – Poornima Vijayashanker & Lawrence Wintermeyer appeared first on 11:FS.

It’s an interview double header! We talk to Poornima Vijayashanker and Lawrence Wintermeyer. First up Aden interviews Poornima Vijayashanker about her work on Femgineer, her previous life at Mint and what it meant to be at the forefront of Fintech before Fintech had broken through After the break Chris Skinner interviews Lawrence Wintermeyer about Innovate Finance’s new Industry Sandbox Consultation. We discuss why a sandbox is important, who should be getting involved, where we currently are with the regulators. This is a great insight into where the industry is going next and how companies both big and small can make a difference. Enjoying FinTech Insider? Tell a friend about us and please leave us a review on iTunes. The post Ep249 – Poornima Vijayashanker & Lawrence Wintermeyer appeared first on 11:FS.

In this episode We’re at the 2017 Innovate Finance Global Summit, one of the most prestigious conferences for the financial technology industry. This annual event provides a platform that convenes the world’s global institutions together with startups, policy makers and investors to share ideas and solutions to the challenges facing financial services. Guests Lawrence Wintermeyer, CEO of Innovate Finance Nick Ogden, Executive Chairman of Clear Bank Richard Peers, Director of Financial Services Industry at Microsoft John Edge, Chairman of Identity 2020 Claire Calmejane, Director of Innovation at Lloyds Banking Group Enjoying FinTech Insider? Tell a friend about us and please leave us a review on iTunes. The post Ep240 – Innovate Finance – THE Global Summit of FinTech appeared first on 11:FS.

In this episode Article 50. Well, we went through with it and signed the divorce papers. Does the triggering of Article 50 put FinTech at risk in the UK? On this episode of FinTech Insider News, you’ll hear a range of opinions, from fear the UK is throwing away its work to lead the globe in FinTech, to optimism that London has the talent and regulatory regime to remain one of the world’s greatest cities. We also talk about BBVA joining Hyperledger; Alibaba and Tencent and the coming FinTech boom; and 11:FS celebrating its first birthday ???????????? As part of this milestone, we’ve officially launched 11:FS Pulse, our competitor insights research platform. We think you’ll love it. Guests this week Paul Titterton, Managing Director at Barclays Kadhim Shubber, Reporter at the Financial Times News this week Crowdfund Insider – Lawrence Wintermeyer, CEO of Innovate Finance, says triggering of Article 50 puts FinTech at risk – Link Parliament – Time to act on ‘unacceptable’ level of UK financial exclusion – Link Economist – An earthquake in European banking – Link Gizmodo – 5 reasons why the Home Secretary’s proposed encryption ban is aggressively stupid – Link BBVA – BBVA joins Hyperledger, the top open-source blockchain community – Link LinkedIn – Making people a competitive advantage in a digital age – Link Venture Beat – Payments company Square launches in the U.K., its first European market and fifth globally – Link Barrons – Alibaba and Tencent and the coming FinTech Boom – Link Quartz – The world’s most secure coin debuts in the UK – Link Enjoying FinTech Insider? Tell a friend about us, and please leave us a review on iTunes. The post Ep233 – Article 50: Signing the Divorce Papers appeared first on 11:FS.

In this episode Is FinTech failing? We discuss this clickbait-y headline which made the rounds recently. We also talk to Lawrence Wintermeyer, CEO of Innovate Finance, to get insight on their latest report that says investment in UK FinTech startups dropped by 33.7% in 2016. Other news: WeChat to (see what we did there? James Lloyd,  Asia-Pacific FinTech Leader at EY, about the 46 billion digital red packets WeChat users sent over Lunar New Year; and Anna Irrera, a journalist at Reuters, updates us on what’s happening with Dodd-Frank. News this week Tech City News – Investment in UK FinTech startups ‘drops by 33.7% in 2016′ – Link The 2016 VC FinTech Investment Landscape by Innovate Finance Innovate Finance’s Global Summit is April 10-11 in London. FinTech Insider will be recording there, and FinTech Insider listeners get a 30% discount if they register for tickets using the discount code FinTechInsider. Coin Telegraph – Switzerland Set to Ease Finance Regulations, Support Blockchain Innovation – Link Reuters – WeChat Users Send 46 billion digital red packets over Lunar New Year – Link technode – How Chinese Mobile Payments are Quietly Conquering the World – Link Forbes – 3 Reasons Fintech Is Failing – Link Wall Street Journal – Fintech Startups Want to Save One Key Page of Dodd-Frank – Link Business Insider – 19 Laptops Containing Customer Information Have Been Stolen from FinTech Company GoCardless – Link efinancial careers – Five Crazy Start-Up Ideas in FinTech now – Link Finovate 2017 Winners That’s all for now! If you like what you heard, please leave us a review on iTunes. To learn more about the team behind FinTech Insider, visit 11fs.co.uk. The post Ep212 – News: Is FinTech Failing? Dodd-Frank. And Everything Goes Back to Cannabis. appeared first on 11FS. The post Ep212 – News: Is FinTech Failing? Dodd-Frank. And Everything Goes Back to Cannabis. appeared first on 11:FS.

In this episode Is FinTech failing? We discuss this clickbait-y headline which made the rounds recently. We also talk to Lawrence Wintermeyer, CEO of Innovate Finance, to get insight on their latest report that says investment in UK FinTech startups dropped by 33.7% in 2016. Other news: WeChat to (see what we did there? James Lloyd,  Asia-Pacific FinTech Leader at EY, about the 46 billion digital red packets WeChat users sent over Lunar New Year; and Anna Irrera, a journalist at Reuters, updates us on what's happening with Dodd-Frank. News this week Tech City News – Investment in UK FinTech startups ‘drops by 33.7% in 2016′ – Link The 2016 VC FinTech Investment Landscape by Innovate Finance Innovate Finance's Global Summit is April 10-11 in London. FinTech Insider will be recording there, and FinTech Insider listeners get a 30% discount if they register for tickets using the discount code FinTechInsider. Coin Telegraph – Switzerland Set to Ease Finance Regulations, Support Blockchain Innovation – Link Reuters – WeChat Users Send 46 billion digital red packets over Lunar New Year – Link technode – How Chinese Mobile Payments are Quietly Conquering the World – Link Forbes – 3 Reasons Fintech Is Failing – Link Wall Street Journal – Fintech Startups Want to Save One Key Page of Dodd-Frank – Link Business Insider – 19 Laptops Containing Customer Information Have Been Stolen from FinTech Company GoCardless – Link efinancial careers – Five Crazy Start-Up Ideas in FinTech now – Link Finovate 2017 Winners That's all for now! If you like what you heard, please leave us a review on iTunes. To learn more about the team behind FinTech Insider, visit 11fs.co.uk. The post Ep212 – News: Is FinTech Failing? Dodd-Frank. And Everything Goes Back to Cannabis. appeared first on 11FS. The post Ep212 – News: Is FinTech Failing? Dodd-Frank. And Everything Goes Back to Cannabis. appeared first on 11:FS.

Make America great again! It was President Trump's rallying cry on the campaign trail. And, his win and Brexit's victory at the polls tell us that nationalism is on the rise. But how does that sit with a global economy that is increasingly inter-connected? Every day a soaring amount of information and data crosses national boundaries. So where does that leave the nation state? We hear from both sides of the Atlantic. Manuela Saragosa is joined by guests Joshua Cooper Ramo, co-CEO of Kissinger Associates; Victoria Nash, deputy director of the Oxford Internet Institute; Lawrence Wintermeyer, CEO of Innovate Finance and Ryan Bourne, chair in public understanding of economics at the Cato Institute in Washington. (Photo: US President Donald Trump signs an executive order to start the Mexico border wall project, January 2017. Credit: Nicholas Kamm/AFP/Getty Images)

This week we are unpacking some of the latest and greatest breaking news with Ed Maslaveckas (@Ed_Masl) and Jamie Campbell (@JCtheOriginal). We are also joined by the fantastic Lawrence Wintermeyer (@lwintermeyer) who is the CEO of Innovative Finance. Key stories this week: Independent – Apple tax: UK says it welcomes any company after tech-giant hit with £11bn Irish tax bill : LINK Fortune – Beware of Blockchain Hype Says Chain CEO Adam Ludwin : LINK Coin Desk – IBM Bridges Blockchain, AI With New Business Unit : LINK Australian Financial Review – ANZ Bank ups cloud focus with open networks for fintech collaboration : LINK  Business Insider – Oscar – City CEO: ‘The whole banking model is a bit broken’ and at risk of an Uber moment : LINK Telegraph – Jeremy Corbyn has a plan to ‘democratise the internet’. But does he even understand it himself? LINK Monzo – Mondo is now Monzo : LINK If you enjoyed this episode, please subscribe using your favourite podcasting app and leave us a review on iTunes or the podcast platform of your choosing Got a burning question or just want to shout of how much you’re loving whats in your ears right now? Contact us on Twitter @FinTechInsider or @11FSTeam, or email on FinTechInsider@11fs.co.uk   The post Ep109 – The Secret to UK FinTech Success appeared first on 11FS. The post Ep109 – The Secret to UK FinTech Success appeared first on 11:FS.

This week we are unpacking some of the latest and greatest breaking news with Ed Maslaveckas (@Ed_Masl) and Jamie Campbell (@JCtheOriginal). We are also joined by the fantastic Lawrence Wintermeyer (@lwintermeyer) who is the CEO of Innovative Finance. Key stories this week: Independent – Apple tax: UK says it welcomes any company after tech-giant hit with £11bn Irish tax bill : LINK Fortune – Beware of Blockchain Hype Says Chain CEO Adam Ludwin : LINK Coin Desk – IBM Bridges Blockchain, AI With New Business Unit : LINK Australian Financial Review – ANZ Bank ups cloud focus with open networks for fintech collaboration : LINK  Business Insider – Oscar – City CEO: ‘The whole banking model is a bit broken' and at risk of an Uber moment : LINK Telegraph – Jeremy Corbyn has a plan to ‘democratise the internet'. But does he even understand it himself? LINK Monzo – Mondo is now Monzo : LINK If you enjoyed this episode, please subscribe using your favourite podcasting app and leave us a review on iTunes or the podcast platform of your choosing Got a burning question or just want to shout of how much you're loving whats in your ears right now? Contact us on Twitter @FinTechInsider or @11FSTeam, or email on FinTechInsider@11fs.co.uk   The post Ep109 – The Secret to UK FinTech Success appeared first on 11FS. The post Ep109 – The Secret to UK FinTech Success appeared first on 11:FS.

Welcome to Barefoot innovation as we start into a fresh new year. Being appreciated! We are kicking off 2016 with a wonderful guest, Nitish Pandey of BMO, and also with exciting momentum for Barefoot Innovation. In December, we were named one of the top 9 fintech podcasts by FintechNews Switzerland. We are delighted to be counted among the best in the world, including the Breaking Banks show of my friend Brett King.  (If you’re enjoying Barefoot Innovation, please do consider donating to our efforts to produce it using the button below!)  Innovation Nation – fintech in the UK That recognition of our series was especially timely, because I was in London at the time to participate in a roundtable of the U.K.’s Financial Conduct Authority on the topic of today’s podcast. The FCA has taken the lead globally in proposing creation of a “regulatory sandbox” – a safe space in which financial innovators can experiment with ideas that might benefit consumers, but that could hit trip wires or raise concerns under today’s rules. Americans should focus on this: the U.K. has adopted a national strategy, from its top leaders on down, of becoming the fintech capital of the world.  One facet of that strategy is the FCA’s launch ofProject Innovate, which has  goals like this one:  “We promote competition through disruptive innovation − innovation that offers new services to customers and challenges existing business models.”  Consider that language – the regulator is explicitly “promoting…disruptive innovation.” The FCA’s efforts include creating an Innovation HUB that provides support for promising innovation, and a methodical review of how regulation impacts innovation. Last year they formally requested public input on two crucial questions: what regulations are impeding beneficial innovation, and is there a need for new regulations to foster innovation? While digesting the resulting comments, they put out their proposal on the sandbox concept. They’ve been sharing these ideas globally and exploring very creative approaches, like whether it would make sense to create a “virtual sandbox” in which innovators could test certain ideas through shared data, without exposing real consumers to any risk at all. Lawrence Wintermeyer of Innovate Finance, speaking at the FCA’s December sandbox roundtable, cited growing excitement around both “fintech” and “regtech.” He argued that London has the “tech” of the U.S. west coast, the “fin” of New York, and the “reg” of Washington – all clustered in one city where everyone can get together by public transport in fifteen minutes. The U.K. has other innovation advantages over the U.S., including a more concentrated banking system and a much simpler regulatory structure.  Startups are also attracted by the ability to “passport” UK activities throughout the European Union, offering easy access to large markets. All this contrasts sharply with the U.S. model in which innovators seeking national scale must undertake the complex process of securing either a bank charter or 50 state licenses, or both. Still, part of London’s innovation success clearly stems from deciding to value the upside promise of innovation, in addition to policing the very real downside risk. The FCA’s efforts include a conscious effort to be nimble – something that does not come easily to any regulatory system. The resulting vibrancy is palpable. On this side of the Atlantic In the U.S., the same thinking is gaining traction. Comptroller of the Currency Tom Curry has appointed anew task force for Responsible Innovation, as we discussed in our recent episode with him. The CFPB has its Project Catalyst innovation lab, and the Federal Reserve Bank of San Francisco held a conference last fall on the “(R)evolution Underway” in financial services, addressing “how technological changes are presenting opportunities and challenges for financial institutions while compelling regulatory agencies to think about how innovation impacts the supervisory process.” These U.S. discussions increasingly include exploration of creating a regulatory sandbox – which brings me to our guest for this episode. Nitish Pandey is Senior Vice-President & Chief Legal Officer, U.S. Personal & Commercial Banking, for BMO Financial Group of BMO Harris. He believes our financial ecosystem needs a safe sandbox in which to innovate (as did Jesse McWaters and Rob Galaski in our episode on the “Secrets of Fintech”). Nitish and I started discussing the sandbox concept last summer (before the U.K.’s proposal). I’d convened a roundtable on disruption of consumer finance and how to (and not to) regulate it. Nitish, whom I’ve known for years, came to the meeting armed with the most specific blueprint I had seen on these ideas. In the months since then, he’s refined it and shared it publically several times. The goal of a sandbox approach is to allow testing of pro-consumer innovation, while assuring that customers are still well-protected.  The issue has endless subtopics. For instance, is a sandbox really needed? How do current rules impede innovation -- if they do – and which ones are most problematic? Is it appropriate to use the concept of “risk tolerance” in consumer protection?  If so, can risks be defined? Can they be quantified and measured? And, if a sandbox would help, how should it be designed? Do regulators have the legal power to waive or suspend rules to allow experimentation and if not, should they? What standards should innovators have to meet? How would experiments be time-limited? What standards should be used to permit them, and to judge their success? If new ideas prove out, should they be publicized? Should the whole market be allowed to adopt them? If so, would this require extensive rewriting of current rules? Will innovators have sufficient incentive to enter the sandbox, if competitors can simply adopt the ideas they pilot (in contrast to, say, government approval of new drugs after testing that ultimately produce patents)?  How can innovators protect their confidential intellectual property?  Would agency pre-review of sandbox proposals bog innovation down in bureaucracy, defeating the purpose of the whole exercise? And perhaps most importantly, how should consumers in a sandbox be protected? What limits should be placed on potential harm to them? Should they be compensated for any harm and if so, how? What disclosures should they receive? Should they have to give consent? How would harm be quantified? While Nitish doesn’t try to answer all of these questions, he tackles many of the hardest ones. And he pinpoints a core issue that’s widely underestimated. The problem is not just rigid and potentially counterproductive regulatory requirements. It’s also the sheer cost and effort of implementing full-scope compliance for virtually any change.  If businesses can’t inexpensively test how customers would respond to an innovation, they won’t offer it. And they can’t test real-life response to new ideas today, without also building out massive compliance machinery – Nitish calls it the “pipes” – affecting nearly every function of the company. We’re in a “Lean Startup” world today where innovators grow by designing and refining a minimum viable product (MVP) through quick, intensive consumer interaction. Traditional companies can’t do this well, partly because their compliance systems weigh them down. Nitish has ideas how to design and execute a practical solution for this – without going bureaucrazy! Compliance as innovator? While I had Nitish with me, I also took the chance to have him share his advice on the revolution underway in the compliance function. He is the first bank compliance manager we’ve had as a guest, and a visionary in the field. He believes, as I do, that consumer financial protection is migrating from a rules-based system to an increasingly principles-based one. That shift is bringing permanent uncertainty which, in turn, requires deeply remaking the compliance management model. “It used to be, if you knew your regulations, you were fine,” he says in our discussion, whereas today’s compliance manager is a “true risk management professional who can be creative in the process and demonstrate excellent judgment as we rapidly move into an increasingly gray world.” He lays out the new role of compliance in today’s bank, why it’s needed, the key changes required, and how to make it happen. Nitish’s insight derives partly from his broad background. He has undergraduate and postgraduate qualifications in Law, Economics and Management in his native Australia and has held positions ranging from marketing to nearly every facet of risk management. He spent a decade at American Express in Compliance, Risk Management and Operations, focusing on consumer, small business and commercial portfolios. He was Deputy Chief Compliance Officer for American Express Centurion Bank, responsible for the oversight and implementation of the bank’s Compliance Program. In November 2014 he joined BMO as Chief Compliance Officer (CCO) for U.S. Personal and Commercial Banking. I hope you enjoy my talk with him as much as I did! More Links: BMO Bank Nitish’s slides from his presentation  The FCA's Project Innovate The FCA’s Paper on the “Regulatory Sandbox”  The CFPB’s Project Catalyst CFSI’s research on consumer financial wellness If you enjoy our work to bring together thought provoking ideas and people please consider a contribution to support the site. Donate Please subscribe to the podcast by opening your favorite podcast app and searching for "Jo Ann Barefoot", or in iTunes.