If you look back on your career and the exciting roles you've had, what has been your greatest career achievement to date?
I have been very fortunate to be involved with various financial market infrastructure startups. These experiences have been incredibly valuable, and each role has led to another exciting opportunity.
However, my most impactful career achievement would have to be my pro bono work on the Access to Cash Review in the UK from 2018 to 2019. This review addressed the growing concern at that time about cash access and the need for a safe transition to digital forms of money for those who are currently cash dependent. The timing of this turned out to be fundamental with the impact that Covid subsequently had on cash usage and access. This has greatly influenced my current work, including my involvement with the Digital Pound Foundation, where we are exploring how a digital pound might address critical issues related to financial and digital inclusion.
You’ve seen the industry come a long way. What do you think are some of the most exciting advancements being made right now?
Without a doubt, it's the transformation of domestic and international payments.
The banking industry has undergone a remarkable transformation over the last decade with payments evolving from being considered the most boring aspect of finance to becoming a hot topic of discussion and fintech investment. This shift can be attributed to a series of groundbreaking developments that have taken place in recent years.
Contactless payments, faster payments, and open banking have revolutionised the way we transact, enabling individuals to send money domestically and globally with unprecedented ease and speed. This stands in stark contrast to the situation just fifteen years ago, when cheques and three-day clearing cycles were the norm in countries like the UK.
Looking beyond the domestic level, we've witnessed the rise of fintech, EMI providers, and concepts like embedded banking /banking-as-a-service. These innovations have blurred the lines between traditional banking and technology, creating an ecosystem where fintech and conventional banking are increasingly intertwined.
Many companies in the fintech space are now aiming to bring the same level of technological advancement and interoperability seen in domestic payments to the international arena, where transactions are often slow, clunky, and carry the risk of non or delayed settlement. The potential for improvement in this area is enormous.
Speaking of fintechs, are there any other trends you envision seeing over the next few years?
I anticipate that tokenised deposits, and the opportunity for CBDCs and well-founded stablecoins to interact with the existing fiat world will transform the financial landscape. I've been in numerous meetings where it's clear that this is a space that must be engaged with, as it will have a profound impact on the future of finance.
Even in the pure crypto-asset space, there is a tremendous amount of activity taking place. As these assets become more stable and regulated, I believe we will see significant developments in this area.
There is also much discussion around the disintermediation of banks if CBDCs gain widespread adoption. However, I personally believe that CBDCs will start with limited circulation and substantial oversight and control. Logically, one would expect banks and fintechs to build services on top of these and to act as CBDC wallet holders.
We will see those with strong technology and the ability to participate in this new ecosystem thrive. However, it's important to recognise that some “traditional” banks may struggle due to their legacy architectures and systems. I think we will reach critical moments in the next 5-10 years regarding these developments and the consequences will be significant for the entire financial industry.
It seems like we’re rewiring the global movement of money in the same way the Internet revolutionised the transfer of information. Do you agree with this analogy? Are there any other historical parallels you would draw upon to describe the transformative changes we are witnessing today?
I believe that the pace of change will only accelerate further. However, there is one potential hurdle worth discussing, which is "risk", and the measures needed to address it.
Drawing from my own experience, I was fortunate to be part of the management team that launched CLS. Prior to CLS, cross-border settlements were risky, slow, and required massive liquidity requirements from banks on a daily basis. While CLS has been a game-changer, its design is now 25 years old. If we were to create a similar system today, it would likely look very different, thanks to the advancements in technology.
This new age of technology enables us to achieve things that were unimaginable 25 years ago. While CLS was designed according to the limitations of the technology available at the time, we now have the tools to create a more adaptable and scalable system. This underscores the transformative power of the current era of financial innovation, which truly parallels the early days of the Internet, in terms of its potential to revolutionise the way money moves around the world.
Lastly, on a more personal note, what do you like to do when you’re not at work?
Family is my number one priority with two boys of university age who have yet to leave the “nest”. Away from that, I have a passion around classic cars and am a volunteer at Brooklands Motor Museum on their archive and research side. We also have a classic car ourselves which means we are often visiting car shows and events during the spring, summer and autumn. My wife and I are also keen walkers and, each spring, we travel to the Lake District to attempt to tick a few more Wainwrights off the list.
