Starling Presents at Institute of International Finance (IIF) Digital Finance Symposium

Starling Team

Starling’s Co-founder Jeff Kupfer was invited to participate at the IIF Digital Finance Symposium in Washington DC on May 29, 2019. He appeared on the “sandboxes” planned along with the Chief FinTech Officer of the Monetary Authority of Singapore and the Deputy Director of the Ontario Securities Commission’s LaunchPad.

Jeff and his fellow panelists discussed how industry and the public sector are seeking ways to unleash innovation for more efficient and effective financial services while containing the risks. They focused primarily on sandboxes, including the newly formed Global Financial Innovation Network (GFIN), which is a group of 35 regulators and international organizations led by the UK’s Financial Conduct Authority. After describing how the GFIN selected Starling to be one of eight companies to test a cross border pilot project, Jeff explained the benefits for all involved – encouragement for banks to be the “first mover” and trial new technologies, knowledge sharing for participating regulators, and development of common metrics.

The IIF is a global association of the financial industry with almost 450 members from 70 countries. Its mission is to support the financial industry in risk management, develop sound industry practices, and to advocate for policies that foster global financial stability and economic growth.

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APRA Warns of Capital Charges for FIs with Poor Culture | Regulation Asia

Starling Team

According to the Australian Prudential Regulatory Authority deputy chair John Lonsdale, self-assessments make it clear that several of the issues identified in CBA’s Prudential Inquiry weren’t unique to CBA.

“They confirmed our observation that industry is grappling to manage non-financial risks, such as culture and accountability,” he said. Lonsdale also notes that institutions didn’t always understand what lead to these findings and ctions to address weaknesses may not be sustainable.

In response to these findings, APRA is considering applying additional capital requirements to several regulated institutions.

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Penalties for Poor Culture | Financial Review

Starling Team

The prudential regulator warned Australia’s largest financial institutions they face big financial penalties in the form of capital charges unless risks – including poor culture –  are managed to its satisfaction. The threats were noted in a report released Wednesday.      

This 28-page paper focuses on culture and risk culture. Academics have criticized this term for being difficult to define but this has been recognized in the report.  

“While APRA acknowledges the challenges of measuring and analysing risk culture, it appears there remains significant score for improvement in this area,” the report reads.


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Hong Kong: An Ecosystem Approach to Bank Culture Reform | Regulation Asia

Starling Team

The HKMA is addressing culture and conduct risk by learning from other markets, engaging with other regulators, and exploring new technology, say Jeff Kupfer and Stephen Scott at Starling Trust.

This article focuses on Hong Kong, where regulators are building on their previous efforts to address culture and conduct. The Hong Kong Monetary Authority (HKMA), for instance, is looking to learn from the Australian experience, by asking the financial institutions it oversees to indicate why similar issues would not be a risk domestically.

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Starling presents at Berle XI: Law and Corporate Culture

Starling Team

CEO Stephen Scott was invited to present Starling’s ideas on “Trust & Technology:  a New Paradigm for Culture & Conduct Risk Management,” at the 11th Annual Adolf A. Berle Symposium on Corporation, Law and Society.  Hosted by the University of Seattle Law School, the event took place on May 16th-17th .

The Berle Center facilitates the study of the American and global economic system, and the role of the law in shaping relations among corporations, governments, individuals, and society. Under the direction of Professor Chuck O’Kelley, the Center was launched in 2009 and has since become an internationally recognized center of academic excellence, leadership and knowledge creation in the field of corporation law.

Berle XI featured an interdisciplinary exploration of corporate culture. Organized by Professor Claire Hill, the James L. Krusemark Chair in Law at the University of Minnesota, and Professor Eugene Soltes, the Jakurski
Family Associate Professor of Business Administration at Harvard Business School, the symposium included the scholars from law, economics, accounting, management, sociology, and anthropology, among other fields.

The aim of the group was to consider how best to understand, measure, and change culture with a view to fostering improved outcomes for customers, employees, shareholders, and broader stakeholder communities. Among other notable speakers, the event was joined by Professor Luigi Zingales, the Robert C. McCormack Distinguished Service Professor of Entrepreneurship and Finance at the University of Chicago. Zingales was prescient, Scott noted, when he wrote in his 2012 book A Capitalism for the People that, “The twentieth century was characterized by ideologies. The twenty-first century will be characterized by data analysis.”

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