FinTech Opportunities in the Metaverse 7/4/22
On Thursday 7th April we hosted our latest seminar, which took place during UK FinTech Week at the Engine Shed in Bristol. The focus of the event was on the role of FinTech in the metaverse, but we also heard pitches from local FinTech startups.
The event was chaired by David Henderson, FinTech West’s strategic advisor, who earlier in the week had represented FinTech West on a FinTech National Network panel at the Innovate Finance Global Summit. We were delighted to be joined in Bristol by Sarah Williams-Gardner, CEO of our near neighbours FinTech Wales.
Panel discussion: FinTech and the metaverse
The opening panel was made up of Nick Fellingham (CEO and Co-Founder of Condense Reality), Ed Hayes (Partner at TLT Solicitors), and Simon Stygall (Financial Adviser at Close Brothers).
The panel discussed the emerging role of the metaverse and highlighted some key examples of activity to date, including a number involving major financial services brands. We heard there will be multiple metaverses (the ‘multiverse’), and this will create a fragmented network similar to the way the internet works today.
The three main elements of the metaverse are 3D web, blockchain, and virtual / augmented reality. The panel debated at length the logic and value of buying assets such as real estate and goods in the metaverse. It’s fair to say that the jury is out on whether these specific ‘investments’ are shrewd or simply marketing gimmicks, but whatever you think about things like buying land in the metaverse, it seems that virtual world is set to continue to become more and more popular as virtual experiences become increasingly commonly used, as summarised by Nick Fellingham, who said:
“During the pandemic while we were all doom-scrolling on social media, young people were engaging with each other via immersive experiences online.”
Nick also added that Condense Reality already uses virtual meetings internally, citing it as the best way to have a meeting with 3-4 people, and “a surprisingly natural way for people to interact.”
There were a range of questions from the audience , which culminated in a discussion relating to the metaverse and financial services, in relation to identity and security. The use of pseudonyms is commonplace in the metaverse, particularly in gaming, but this practice is at odds with the core principles of financial regulation and standard practice. As Ed pointed out, rule number one in financial services is to know your customer, and he would not be able to advise clients to engage in regulated financial services via pseudonyms.
Interesting articles on this topic:
The metaverse will be worth millions (Chris Skinner, April 2022)
Metaverse and Money (Citi, March 2022)
MyWorldBristolBath
The next speaker was Thanh Quan-Nicholls, Partnerships & Industry Engagement Manager of MyWorldBristolBath. MyWorld is a £46 million, five-year programme which showcases the latest advances in digital production and research.
The programme aims to make the region a centre for creative technology and is led by University of Bristol and delivered in partnership with various organisations including Digital Catapult.
Thanh provided an update on the progress so far and explored the overlap with the world of FinTech. Currently there is a ‘Collaborative R&D’ round, in partnership with Innovate UK, with £2m of funding available. Only projects related to innovative and diverse technologies in the creative sector are eligible, making this highly relevant to the metaverse. Projects have to be commercially viable and create jobs, to ensure they create value for the region. The CR&D call is now available here and you can book on to the event here.
Regional FinTech Showcase:
Behind Login
Oliver Lane is Founder of Behind Login, a Bristol-based FinTech that provides competitor analysis for organisations seeking to better understand the user journeys and functionality that sits behind secure logins of FinTech applications. These applications can range from FinTech startups through to the banking or investment management apps of major global brands. Behind Login has a global network of super users who are paid for their (anonymous) contributions, which are made via screen-share sessions with Ollie and the team.
The Bunch
Ashton Clapp presented the concept behind The Bunch, a utility bill bundling service that enables students to make one monthly payment to cover all their bills. It provides only 100% green energy, and customers can earn bonuses by completing tasks such as submitting meter readings, or posting on social media.
The Bunch is now expanding into new markets and geographies, and is moving to tools such as Open Banking. The team is expanding fast, and is in the process of doubling from 25 people this year following a recent and ongoing recruitment drive.
Sefin Hub
Jessica Miller founded Sefin Hub following a career in corporate financial services and becoming an entrepreneur when she created her own flower business.
Jess saw an opportunity and set out on a mission to level the playing field for people who are self employed.
Sefin Hub will support people who work for themselves and want to save money for the future. These people typically have variable income, have to use multiple financial product providers, and want to do everything on the go so that it fits with their work and lives. Jess told the audience that the current focus is developing the MVP for launch later this year.
Regional developments / next event
Following the FinTech West event many of the delegates stayed behind at Engine Shed to join an afternoon event hosted by SETsquared, which included an overview of the newly published WECA strategy for the development of FinTech in the region, as well as an overview of recent research conducted to inform the new Innovation Programme, and a panel discussion.
The next FinTech West event will take place on Tuesday 17th May, and will be hosted at EY. It will focus on Financial Inclusion and places can be booked here.
