Juicy Facts, Soothing Voices and Awkward Questions at Lending 3.0

We sent journalist Hannah Duncan to scope out this iconic event, and report back on her three most memorable panels.

Stepping into Fintech Talents Lending 3.0 was like diving into a giant lemonade. Refreshing, zingy and a little bitter after the SVB collapse. The event was held in a swanky Bishopsgate venue, and attended by the brightest sparks in the industry. I immediately got chatting to Christophe Langlois from Finastra. Uncharacteristically he wasn’t carrying a massive industrial camera. I almost didn’t recognize the guy! Lattes in one hand, notepads in the other we were soon marching off to discover the latest trends.

Reaching the underserved through scalable open banking innovation

Hosted by owner of the world’s most soothing voice, Lisa Moyle, the first panel was about reaching the underserved. It’s critical for LendTech to support underserved communities. Charities today warn that loan sharks are circling. Vulnerable borrowers even report getting beaten up! Accessible lending can help prevent this.

The experts debated credit scoring data, regulation and the need for unbiased software. Mitek’s David Pope highlighted how “identification technology developed by pale, male and stale teams” can exclude people. Diversity is the key to serving all markets. But looking around the room, there’s still some work to be done.

Since the panel covered tech in detail, I couldn’t wait to ask my first awkward question of the day. “What about reaching the people who don’t have access to phones or online banking?”, I piped up. After all, 24% of US adults earning less than $30,000 a year don’t have a smartphone. 40% don’t have broadband. None of the panelists provided an earth-shattering answer, but all of them looked quite thoughtful. Who knows, maybe with all those brains on it, something might change.

The panel was memorable for another reason too. CEO of Salad Money Tim Rooney aimed and took fire at Metro Bank three times! BAM! BAM! BAM! From open banking to credit scoring, nothing was left off the table. Incumbent Metro Bank emerged from the savaging, bruised but not destroyed.

“Overcoming Obstacles for Supply Chain Finance: A Post-Pandemic Eco-System”.

A few lattes later, I was awaiting the “Overcoming Obstacles for Supply Chain Finance: A Post-Pandemic Eco-System”. Although the name didn’t roll off the tongue, I was deeply intrigued.

Firstly, because a mysterious hand (in a fabulous sage green sleeve) tapped my shoulder as I was scribbling. I looked up to see CEO of Twinco Capital, Sandra Nolasco. “Stay on”, she whispered to me. Secondly, moderator Bhavna Saraf from Swift addressed me directly! She invited me to present my toughest questions. Uhhh… Challenge ACCEPTED.

And mostly… I was intrigued because trade finance is this massive deal that nobody talks about. Everything we buy, every service we use, it’s facilitated by trade finance. Even this article I am writing now!

I guess nobody mentions it because trade finance sounds kind of boring, right? Like you’d regret asking. But I’ve a sneaking suspicion that these parts of finance are actually the juiciest. And I wasn’t wrong!

Over the next thirty minutes, the panel bashed out insights and ideas about improving the world’s commerce. I learned “continents change across suppliers”. One day retailers may get their products from Asia, the next it’s South America. Trade financiers have the whole world on their to-do list.

I discovered the major roadblock to innovation is data. “Some of the larger organizations just don’t have visibility”, explained HSBC’s Sibel Sirmagul. And I learned regulations are about to flood the space, turning it into a big ol’ Compliance swamp.

When the time came for questions, I was ready. “We should be encouraging less consumption, not more. Local trade, not global. But that would put you out of a job. So, are you REALLLYYYYY pushing for sustainability?”, I shot out.

After a couple of beats, Nolasco swooped in. “The big challenge is how do we make global ESG trade compliant across living wages, shipment and levelling the playing field to smaller SMEs?”, she began. Sandra counted each challenge on her fingers.

She explained how Twinco Capital gives preferential rates to factories with satisfactory water treatment processes, and to suppliers that treat workers fairly. It wasn’t a perfect solution, but it was a good answer. Nothing from HSBC. I tracked down Nolasco as we headed to lunch to grill her some more. One of the best things about Fintech Talents is that you can do this. At many other events, speakers are so elusive. After their panel, I imagine they jump in a private jet surrounded by bodyguards. Fintech Talents, on the other hand, is refreshingly down to earth. This is excellent for nosey journalists like me.

Grounding Green Mortgage Lending through actionable EPC encouragement

As the day went on, I glugged coffees, pounded out awkward question after question and scribbled until my pen ran dry. The final panel was one of my favorites. It was about green mortgages.

Let me start by commenting on Tandem Bank’s Roger Morris. I glanced up from my notetaking when I heard him say, “EU Taxonomy”. Anyone who mentions that instantly seizes my attention because it shows they really know about sustainable finance.

But – oh my LORD – I couldn’t look away when I saw his tie. A woodland forest scene with “£100,000,000” scrawled across it in neon orange, accompanied by a love heart and a planet pineapple. I was transfixed.

The panel, meanwhile, bubbled with conversations around how better data can improve the energy efficiency of housing. Heating our homes accounts for around 17% of the UK’s carbon emissions. So, it’s a pressing issue.

I appreciated the frankness of the panel. The pink-haired, red-converse wearing Tracie Callaghan from NatWest explained how “EPC is just not a good predictor of energy consumption”. Lynne French from CHL Mortgages for Intermediaries nodded in agreement. “We know the system is flawed”, she commented. Fintech is working on this, but perhaps not as urgently as we need it to.

Better data will unlock new potential

Unreliable data seemed to be the major roadblock across almost all the panels. It triggered a tirade of issues. Credit scoring, trade finance or green mortgages … they need more accuracy information, and fast!

I am hopeful that this will come. After all, embedded finance is creaking open the door to a universe of unlimited data. For the sake of the people and the planet, I deeply hope that this data will be used for good. To reduce carbon emissions and nurture social justice.

It’s events like Lending 3.0 that give us the chance to challenge incumbents and fintechs. To critique, understand and debate with them. On that note, I’d like to say a massive thank you Victor and the team… And uhh… When is the next one?