In a reversal of fortune, the financial sector has been leading in solving the current crisis.
Charlotte Crosswell has an extensive resume with stops at Goldman Sachs, the NASDAQ, and others.
She is currently the Chief Executive Officer (CEO) at Innovate Finance, and she was the latest guest on the Futures Industry Association (FIA) podcast, FIA Speaks.
The host of the podcast is Walt Lukken, the CEO of FIA.
He asked her how the financial industry responded to coronavirus.
“In 2008, obviously the bailout of the banks and capitalization, and now, in this crisis, with governments around the world, especially here in the UK, looking to the finance sector for those solutions as well. So, that’s what’s been really fascinating is how many banks alongside governments- how do we solve this.”
She noted that she has been looking at how fintech could also help be a part of the solution.
“How do we scale some of those rescue packages ensuring that you know that the redistribution channels are more efficient,” she said.
She continued, “What’s been important is for us to look at how the sector can be leveraged as we emerge from the crisis, as we evolve from it.”
“It’s been interesting to be able to work alongside the banks through this and very much seeing everyone as collaborative,” she said, “Everyone has recognized this is a pandemic we’ve never seen before in modern times. It’s not the banks, or fintech, or government, or regulators; we have all come together to work collaboratively.”
She noted that collaborative effort helped get out rescue packages quickly.
Lukken asked Crosswell if the crisis would help or hurt fintech; he noted that many fintech companies are small start-ups, which are the companies which have been hit hardest.
“Some are already seeing the upside in this pandemic. Some have pivoted- you know- really quickly and put in COVID 19 responses and others are seeing the demand for their services just rise exponentially- so particularly in the regtech space as banks themselves are looking to enhance AML, KYC, KYB technology as we progress in some of these rescue packages they are obviously incredibly busy.
“On the flipside, we have other firms such alternative lending sector, where their back books you know have been put under pressure, and also they haven’t necessarily leveraged to distribute funds, putting their business model at risk.”
Lukken then asked Crosswell about government’s role in helping fintech. He noted that both the Finance Conduct Authority (FCA) in England and the Commodity Futures Trading Commission (CFTC) both have fintech sandboxes.
“I believe in the early stages that having that support of government and policy makers is really important.” She said.
Innovate Finance is , “the independent industry body that represents and advances the global FinTech community in the UK.” According to its website, “Our mission is to accelerate the UK’s leading role in the financial services sector by directly supporting the next generation of technology-led innovators.
“Innovate Finance’s membership ranges from seed stage startups and global financial institutions to investors, professional services firms, and global FinTech hubs. All benefit from Innovate Finance’s unique position as the single point of access to promote enabling policy and regulation, talent and skills, business opportunity and growth, and investment capital.”