This Team Creates Your Crypto Enabled Swiss Bank Within 9 Monthsby Fintechnews Singapore November 9, 2019
All the way from Switzerland, we met Lloyd’s & Partners for an exclusive interview on how to build a licensed Swiss crypto bank within just nine months.
Lucas Landolt, Head of Operation and Stefan Jans, Head of Communication, gave Fintechnews an exclusive interview ahead of their product presentation at the Singapore Fintech Festival. The Swiss company wants to convince companies all over the world to launch a hybrid crypto bank in Switzerland and they also claim to serve the best (Swiss) coffee at the fair.
Fintechnews (FN): You are the first company that creates a licensed bank as a one stop shop solution, like a product within 9 months. Why is there suddenly a market and how is your approach?
Lucas Landolt (LL): Well, there was a small market and we are focusing on this niche market since 2007. Now Switzerland has regulated distributed ledger technology activities in the banking sector and is becoming a global business base for Fintech. This opens new opportunities. We observe that new banks with crypto capabilities are urgently needed both as providers of financial solutions and as partners for the Fintech industry.
So there is a big demand for Fintech friendly- and also able banks. And the new technologies are disrupting the limitations of banks as we know them. There is also a high demand to create new banks as business case per se. The Lloyd’s & Partners approach is simple: we choose the world’s leading companies in the field of core banking systems, CRM, KYC / AML, Audit, Blockchain technology, a.s.o, take them under our management and create then Fintech friendly Swiss crypto banks – turnkey ready, one-stop shop.
One-stop-shop approach and the entrepreneurial approach of Lloyd’s & Partners
FN: Hmm, isn’t that very expensive?
LL: Well, obviously there are new blockchain service providers in banking on the market and according to publicly available information their setup costs were indeed high. But the question is not how much it costs, it is what competitive edge it brings and what value such bank has based on its business outlook. But the good news on the cost side is: as we have a unique one-stop-shop approach and are experienced in creating banking structures, we are able to create a bank with the perfect components, faster and more precisely than others and this reduces the cost of creation significantly.
As of today, bank applications were handled by law firms. The standard method of billing here is based on time and effort. We can and do offer a fixed budget. This corresponds to the entrepreneurial approach of Lloyd’s & Partners to carry out projects for our clients.
FN: Let us know a bit more about your company
Stefan Jans (SJ): Lloyd’s & Partners emerged from the consulting company pfi partners Ltd which has served individuals and financial intermediaries since 2007. For the last six months, Lloyd’s & Partners redefined their strategy from a national approach into an international context that also follows the evolution of the Fintech industry.
We bring together a team of 30 experts with the following backgrounds: Financial Markets, International Consulting Companies, Legal & Regulatory Affairs, IT, Blockchain & Crypto, IP, Human Resources, Fin- and Regtech, Branding and also Communication. All our team members have many years of solid professional experience, also in an international context.
FN: How can Lloyd’s & Partners help banks worldwide?
LL: Banks urgently need to adapt their business model and technical capabilities to participate in the vast and highly profitable opportunities Fintech offers. Many jurisdictions imply regulatory restrictions, so they will need to move part of their business to more friendly jurisdictions, for example Switzerland. We can help banks around the world to develop their business model further and create access to new markets, target groups and earnings opportunities via Switzerland.
Switzerland: Gain a competitive position in the crypto and fintech market
FN: Why an APAC Bank needs a Swiss Crypto Bank?
For banks from the APAC region, there are two options;
First; wait until the local financial market authority creates similar conditions as in the Swiss financial market, which now allows DLT Business, or secondly, creating their own Crypto Bank in Switzerland and thus, as an early market participant, gain a good competitive position in the new Crypto, Fintech and Blockchain Business market.
FN: If you compare the Swiss Crypto banking market with the Singapore market where do you see the difference?
LL: The subtle differences lie in the regulatory appreciation and the financial market law of single countries. Actually, the Swiss Financial Market Supervisory Authority FINMA has a clear position that it assesses the submitted concepts for blockchain business of banks in a technology-neutral manner. This means that FINMA has no problem or restrictions with Fintech solutions, including Blockchain and Crypto, as long as the already existing regulations are complied with.
Singapore is also very active here and may well be the most progressive country after Switzerland in this field. But by the time the Singapore financial center is really ready to catch up with Switzerland, the Swiss banks, which are now preparing to enter the market with Crypto, will long since have consolidated their pole position.
Swiss bank client benefits from the deposit protection of 100,000 Swiss francs
FN: We guess you must believe hybrid banking will be one of the top trends for 2020 in the fintech space, why?
LL: We do not believe that pure “crypto banking” will prevail in the hard-fought global competition for the world’s ultra-richest persons and families. Who wants to invest 100% of its assets in Crypto? Hybrid banking will be the model of the future. In Switzerland, we will see this going live in 2020.
Hybrid banking means a balanced mix between “classic banking services” and regulated crypto transactions. It is urgently necessary that customers also have the opportunity to enter crypto business in a secure and regulated environment and via a trustworthy and regulated partner – a Swiss bank.
We believe that the run on banks which offer accounts in Crypto will be huge. In addition, a Swiss bank client also benefits from the deposit protection of 100,000 Swiss francs, guaranteed by law.
FN: You have an impressive booth at the Singapore Fintech Festival. Tell us more?
SJ: After we finalized our strategy and created the Lloyd’s & Partners brand, it was obvious that we needed an adequate platform to launch our products and services. So, we decided to become a platinum sponsor and have our global launch at the Fintech Festival in Singapore, one of the most important fintech events in the world. We are also proud to announce that our preferred integration partner Tata Consultancy Services will be present at our booth with the Deputy Country Manager of Switzerland and the Head of the Blockchain Solutions traveling directly from India to Singapore.
Why you should visit us?:
- Challenge our experts at our booth and explore the opportunity to create your own swiss crypto bank.
- In the meeting room on the 2nd floor of our booth we can discuss your business case as future bank owner in a private atmosphere.
- Get the best coffee at the festival and Swiss chocolate for free.