• MBO at Suffolk tech distributor following record year of 30% revenue growth
• Business targets further revenue growth with plans to expand its product range and training programmes
• Shawbrook Bank supports investment house with £2 million loan to support buyout

A Suffolk technology consultancy and distributor has been acquired by Merino Private Equity, after growing revenues by 30% during the pandemic, with support from Shawbrook Bank.

Multithread Consultants’ management now aim to drive further growth following the management buyout (MBO) with investment from Merino Private Equity.

The company provides consultancy for, and distribution of, wireless networking products. Its strong team includes software designers and developers, with network and wireless specialist advisers.

Nick Shore has been appointed Managing Director after 20 years within Multithread Consultants, most recently as Chief Technology Officer.

Nick said: “New standards of connectivity mean businesses can enhance their IT network infrastructure with wireless solutions.

“This creates an opportunity for us and our installer partners to work with organisations and help them facilitate the new hybrid ways of working that have emerged in the last two years, and to build on the success we’ve already had helping organisations to adapt their infrastructure to meet new requirements.

“The addition of Merino will help us as we target growth from these opportunities. And the quick decision making of Shawbrook Bank ensured a swift completion of this deal, helping us to focus on growing the business with the support of our new owners.”

Oliver Sutton, relationship director at Shawbrook Bank, said: “The case to back this change of ownership was exceptionally strong. The longstanding expertise of Nick and his team positions the business well for tapping into a booming market buoyed by changing working patterns and new technologies.

“We’re also well aware of Merino’s track record of supporting its portfolio companies to scale-up their operations from past deals we’ve supported them with.

“We worked closely with the Multithread Consultants team to understand its business model and working capital cycle, ensuring that we provided the new owners with a finance package with terms that will help to enable its growth.”

Jack Kinnersley, investment director at Merino Private Equity LLP, said: “We are thrilled to have completed the MBO of Multithread Consultants, and particularly to partner with Nick and the wider team. The business has built a great reputation off the back of high service levels and a compelling product range. Shawbrook Bank has been a valued partner throughout this deal, which is made possible thanks to its team’s fast and considered approach to funding.”

Survey of 12,000 banking consumers explores how and why they engage with banking technology through unique motivations, desires and expectations

Diebold Nixdorf, a global leader in driving connected commerce across the financial and retail industries, and NielsenIQ today announced results from the “Motivations in Modern Banking” report, based on a representative survey of 12,000 consumers in 11 countries. 

As banks continue to transform due to digitalization, increasing competition, regulatory complexity and the COVID-19 pandemic, keeping track of how consumers’ needs and behaviors are changing is critical to any transformation strategy. The results of the report help financial institutions better understand what’s behind the way consumers engage with banking and technology. By understanding these unique motivations, organizations can improve outreach and service quality, win loyalty, and invest in solutions that resonate with consumers and deliver operational efficiency.

The report uncovers five “Tech Types”: distinct financial consumer segments, each with a unique set of motivations, desires and expectations around banking technology. While local representation of the Tech Types varies country by country, each segments’ distinct motivations and patterns remain consistent and entrenched. The following is a breakdown of the various Tech Types and their representation in the U.K.

1. Simplicity Seekers (28%) represent the largest consumer segment in the U.K. This Tech Type manages risk by avoiding unnecessary complexity and not relying on others, resulting in a demand for technology-driven banking services that follow the principles of simplicity and self-determination. 

2. Guarded Explorers (19%) crave human reassurance and will lean towards technologies with a human touch. 

3. Struggling Realists (27%) find financial management to be a challenge. Only 17% of the U.K. sample feel comfortable about their financial state, and only 36% claim to have a good understanding of financial topics. Hence, they crave financial security and appreciation. 

4. Established Traditionalists (20%) perceive change as a risk. This Tech Type prefers to stick with long-standing habits and will only adopt technologies as they become widely accepted and safety proofed.

5. Empowered Self-Starters (6%) are an elite segment expecting hyper-personalization. U.K. members of this Tech Type are twice as likely as the average consumer to be open to share more personal information in exchange for more personalized services and offerings.  

Özlem Yilmaz-Daniel, NielsenIQ, Consumer Insights Team Leader, said: “Companies used to just look at gender and age, maybe financial state, and make their assumptions on what services would be most suitable for a customer. That is not enough to speak the same language. Think of their life stage, their beliefs and values, their habits and attitudes; these do not adhere strictly to certain ages.”

Simon Powley, Head of Advisory Services and Consulting at Diebold Nixdorf, said: “For banks to truly understand how to cater their technology experiences to their consumers, they must understand the ‘Why’ - the motivations that drive what consumers crave from their banking experience. Those banks that can understand these motivations will improve outreach and service quality, win higher loyalty, and focus investments on areas where they will make the biggest difference.”

To download a copy of “Motivations in Modern Banking - Beyond the ‘Who’: Understanding Why Consumers Respond in Certain Ways,” please visit DieboldNixdorf.com/DiscoverTheWhy. The results from this study were revealed at DN Intersect Online on October 26, 2021, where the best and brightest in the financial industry explore common themes and discuss the latest global banking trends. A replay of the webinar is available here.

Industry-leading ADAS Solution Uncovers Reduction in Claims Frequency to Help Benefit U.K. Motor Insurers’ Pricing Accuracy

Admiral, the U.K.’s largest motor insurer[i], is set to use Advanced Driver Assistance Systems[ii] (ADAS) data in its pricing and underwriting through LexisNexis® Vehicle Build, developed by data, analytics, and technology provider, LexisNexis® Risk Solutions.

The culmination of several years of research and development, LexisNexis Vehicle Build is a new solution to help insurance providers understand and evaluate the specific standard and optional ADAS fitted to a vehicle at a Vehicle Identification Number (VIN) level, to help improve loss and expense ratios and support competitive pricing.

The data scientists at LexisNexis Risk Solutions analyzed more than 2.7 million vehicles and have been testing the solution with motor insurance providers in the U.K. and Europe over the past year. This analysis has revealed the increased penetration of ADAS in vehicles in the U.K. and the corresponding need for insurance providers to factor for ADAS in pricing. LexisNexis found that on average, there are eight safety features per vehicle in the U.K. car park, making the U.K among the leaders in the adoption of automated vehicle safety systems across Europe.  

Mark Gabriel, head of van insurance and motor product for Admiral said: “The more we can understand about the specific ADAS fitments to the car, the more accurate our pricing. This is not only fairer for our customers who have invested in ADAS-equipped vehicles, but having this insight through LexisNexis Vehicle Build also helps prepare for the future where cars will have increasing levels of autonomy.”

Within LexisNexis Vehicle Build, there are a set of core ADAS features that have been found to deliver a reduction in claims frequency. 69% of cars analysed in Europe by LexisNexis Risk Solutions were equipped with a core safety feature and are therefore less likely to have an insurance claim. As technology develops, this percentage is expected to increase. Data from The Society of Motor Manufacturers and Traders[iii] shows eight in 10 new cars are currently available with driver assistance systems. 

Carla McDonald, senior manager, motor insurance, U.K. and Ireland, at LexisNexis Risk Solutions, said: “Having a key industry partner like Admiral on board cements what we knew all along - that this type of enrichment will be business critical as ADAS becomes more prevalent in the driving behaviour of newly manufactured vehicles. The crucial benefit of LexisNexis Vehicle Build is the ability to provide ADAS fitment information on not only standard but also optional features at a VIN-level, which have been normalised by LexisNexis across automakers in the market. A good portion of these features are selected extras, and trim-level information as an alternative simply can’t tell you if that optional feature is on the vehicle or not.

“ADAS features exist to avoid or reduce the seriousness of collisions, so as the features become more common, the dynamics of claims will change. For insurance providers like Admiral, this aligns to their business objectives, helping to improve their bottom line. Using our classification of ADAS from millions of lines of data, motor insurance providers can understand and use the features of a car and their relative performance to improve their pricing accuracy.”

Digital Asset, a leading software and services provider helping enterprises build economic value through interconnected networks, today announced that Goldman Sachs will use Daml, Digital Asset’s core technology, to develop its end-to-end tokenized asset infrastructure supporting the end-to-end digital life cycle across multiple asset classes on permissioned and public blockchains.

“Globally, regulated capital markets have been on a multi-decade journey to full digitization,” said Eric Saraniecki, Co-Founder and Head of Strategic Initiatives at Digital Asset. “Tokenization done right offers a dramatic step change in capabilities and operational efficiency. Daml-based tokenization platforms can provide the capability to capture the full complexity of rights, obligations, and cash flows throughout the life cycles of complex regulated assets on the assets themselves, and they can make that digital representation and workflow accessible and fully automatable across distributed interconnected ecosystems of participants. We are thrilled that Goldman Sachs has selected Daml to explore the full potential of tokenization in its new multi-asset platform.”

“We are very excited to work with Digital Asset,” said Mathew McDermott, Managing Director, Global Head of Digital Assets at Goldman Sachs. “As we continue to build out our tokenization capabilities, we needed solutions that could rapidly capture the full complexity and diversity of assets at the heart of our business for both digitally native or tokenized traditional assets, and interoperable across multiple blockchains. It is critical to create distributed networks and digitization workflows across financial institutions and clients, interconnecting traditional and new market infrastructure. Daml-driven solutions, selected by leading market operators, could be an accelerator for us to achieve this.” 

Daml is a platform for building multi-party applications that run seamlessly across new technologies and legacy infrastructure. It is the first system to fulfill the key requirements of a network-of-networks for global commerce. Daml solutions have been selected for production rollout at several of the world’s top exchanges, as well as powering the daily processing of around $35B in repo transactions.

SOLMate has announced the launch of its newly branded SOLMate prepaid debit cards. In its ongoing effort to offer clients a fully-fledged financial ecosystem in their pockets, SOLMate has further enhanced its solutions with the launch of this new generation debit card.

In addition to the host of payment services housed in the SOLMate app, customers can now tap or swipe at thousands of retail stores countrywide, withdraw cash from any ATM, cash in and out at selected points of sale, while also shopping safely online. 

“By launching our prepaid debit cards, we have answered the call from our customers for a more sophisticated card solution that offers the same or better capabilities than conventional bank cards”, says Jonathan Holden, Chief Operating Officer of SOLMate.

Holden says that the journey into the SOLMate ecosystem starts with the ability for its customers to get paid directly into their wallets by third parties or employers. Customers are then free to use the funds free of charge to buy services such as airtime and electricity and other vouchers, or transfer funds directly to their card: “This reduces the need to travel from home, stand in queues and ultimately risk their hard-earned money.”

SOLMate has also addressed a burning need in unbanked communities with this launch.  Holden says that customers are now a part of a growing digital revolution and are a step closer to real financial inclusion: “We will add to our offering in the coming months to enable access to more sophisticated products that protect and serve our customers financial interests.”

Follow the SOLMate journey to find out more.

The fund, which aims to offer a reliable option for crypto investing, recorded a net return of 215% in 2020 and 205% in the first ten months of 2021

Private market exchange ADDX has launched its first cryptocurrency product, with the listing of a digital asset fund by investment manager Trovio Capital Management (TCM). The fund aims to provide accredited investors with a reliable option for crypto investing and has put in place institutional-grade safeguards in relation to the trade execution and custody of the fund’s underlying digital assets.

The TCM Digital Asset Fund takes a diversified approach to crypto investing. On top of core positions in Bitcoin and Ethereum, the fund invests in a set of seven other top-performing cryptocurrencies that are identified and reviewed regularly through a proprietary method of quantitative analysis. The fund recorded a net return of 215% in 2020 and 205% in the first ten months of 2021.

Relying on an institutional-quality infrastructure, the fund has an independent administrator, auditor and custodian. It is among the first digital asset funds to be audited by KPMG. Custody and trading services are provided by the Nasdaq-listed Coinbase. Investors on the ADDX platform can subscribe to or redeem units each month with the fund manager. The fund’s minimum investment size is US$10,000.

Founded in 2017, the Australia-based Trovio Group is led by veteran bankers Jon Deane and Bob Tucker. Trovio CEO Jon Deane has more than 15 years of experience managing large complex risk positions for investment banks, including JP Morgan and UBS AG. He was Managing Director and Head of Asia Commodities Trading at JP Morgan from 2014 to 2018. 

Mr Deane said: “It has been a fantastic experience bringing our flagship fund to ADDX’s MAS-regulated platform. We are continuing to witness significantly wider adoption and appreciation of digital assets as a standalone asset class in a diversified portfolio. ADDX’s platform is enabling investors to seamlessly access these asset classes, whilst reducing friction often experienced via traditional channels. We look forward to working with the ADDX team on launching our other products over the coming months.”

Oi Yee Choo, Chief Commercial Officer of ADDX, said: “Cryptocurrencies are very likely the digital gold of our age. There is robust demand among investors for exposure to these digital assets. The traditional world of finance tried to keep a cautious distance initially. But today, major financial institutions either have a crypto offering or are seriously considering one. We believe the time for discussing whether cryptocurrencies have a place in an investment portfolio is all but over. The more relevant question now is around how one should manage the risk of crypto investments, from an asset custody as well as a price volatility standpoint. Professionally managed crypto funds with a good track record can potentially address these risk concerns for investors.”

Ms Choo added: “ADDX is pleased to work with Trovio on this first crypto offering to investors on our platform. The team led by Jon Deane has deep expertise in both traditional finance and the crypto space, and this is reflected in their rigorous approach to conceptualising and bringing to market this institutional-grade fund. As Singapore establishes itself as an important global hub for regulated crypto activity, ADDX seeks to make a positive contribution to the crypto landscape of the city, by adding to the rich diversity of high-quality offerings available to investors.”

ADDX, previously known as iSTOX, is a full-service capital markets platform with Monetary Authority of Singapore (MAS) licenses for the issuance, custody, and secondary trading of digital securities. Launched in 2017, the financial technology company raised US$50 million in its Series A round in January 2021. Its shareholders include Singapore Exchange (SGX), Temasek subsidiary Heliconia Capital and Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ). Individual accredited investors using the ADDX platform today come from 27 countries, spanning Asia Pacific, Europe, and the Americas (excluding the US).

The new report provides in-depth insight into cash reporting, cash forecasting, and technology practices and expectations across hundreds of treasury teams

GTreasury, a treasury and risk management platform provider, and Strategic Treasurer, which delivers consulting services for treasury management, security, technology, and compliance, today announced the release of the 2021 Cash Forecasting & Visibility Survey Report.

The survey of nearly 250 treasury professionals from across industries and continents sheds light on the current state of corporate treasury’s cash reporting practices, cash forecasting methods, technology strategies, and expectations around technology spend.

Highlights from the 2021 Cash Forecasting & Visibility Survey Report include:

• Treasurers want real-time global cash position updating. The majority of treasurers are seeking global cash positions that can update on a real-time or intraday basis, but many report being stuck with weekly (or less frequent) updates. Just seven percent of survey respondents are currently achieving real-time cash position updates.
   
• Generating cash positions is three times harder without a TMS. Only 10% of treasurers using a treasury management system report difficulty generating their cash position, compared to 33% of those who use other methods.
   
• The use of AI and ML in cash forecasting is nascent but accelerating. While just 6% of respondents are currently using AI/ML for forecasting, the report indicates that number should swell to 27% of organizations within the next two years.
   
• More budget is being allotted for treasury and forecasting technology. Over the next year, more than 35% of companies plan “extremely heavy spending” on treasury systems and forecasting.
   
• Generating cash forecasts is difficult for half of all treasurers. Just 23% of treasurers report that building cash forecasts is a simple process within their organization, compared to the 48% of respondents indicating difficulty with this task.
   
• Excel forecasters are more dissatisfied than their TMS/ERP-using peers. Compared to treasurers relying on TMS/ERP technologies, treasurers using Excel spreadsheets for forecasts are more than three times as likely to be dissatisfied with their forecasting output: 23% of those relying on Excel report discontent, compared to 8% leveraging TMS/ERP solutions.

“The findings in this year’s Cash Forecasting & Visibility Survey Report provide a clear view into what matters to corporate treasury right now, and the areas that are particularly ripe for modernization,” said Craig Jeffery, Managing Partner at Strategic Treasurer. “AI and ML is arguably the biggest sea change coming to treasury teams, and it will move quickly. Treasury teams are realizing the challenges of building AI/ML-infused capabilities internally, and are instead adopting AI/ML forecasting capabilities within their existing systems. The rapid anticipated adoption here will empower corporate treasurers with transformative new practices and approaches, from treasury management to FX to payments.”

“The treasury ecosystem is constantly evolving, and this survey illuminates not just how treasury operates today, but how treasurers want – and expect – it to tomorrow,” said Michele Marvin, VP of Global Marketing at GTreasury. “From CFOs to treasury and accounting teams, the results of this report are revelatory when it comes to navigating the current treasury technology landscape, adopting best practices, and capitalizing on the most advantageous opportunities going forward.”

Those interested in further results and analysis from the 2021 Cash Forecasting & Visibility Survey Report can view a recorded webinar, hosted by GTreasury and Strategic Treasurer, analyzing the results of this report: https://resources.gtreasury.com/Cash-Forecasting-Report-On-Demand-Webinar-Request.html

The downloadable report is available at: https://resources.gtreasury.com/Cash-Forecasting-Visibility-Report-Request.html

LiquidX’s Digital Trade Credit Insurance platform was selected for recognition at the annual awards, which celebrate groundbreaking solutions that transform industry practices.

 The Monetary Authority of Singapore (MAS) has named LiquidX Insurance Services (Singapore) Pte. Ltd. a finalist for the Singapore FinTech Festival (SFF) Global FinTech Awards 2021 in the Singapore Financial Institution category. The awards are a highlight of the annual festival, which takes place November 8-12, 2021.

The SFF Global FinTech Awards, supported by PwC Singapore, recognize ground-breaking solutions that have enabled the financial sector to rebound from the impact of the pandemic, including initiatives that have helped create new growth opportunities, transform industry practices, and promote financial inclusion. The theme for this year’s Awards is “Emerging from a pandemic, the road to recovery.”

The Singapore Financial Institution award is granted to a regulated Singapore institution whose Singapore office must have contributed to the implementation/deployment of the solution in at least one ASEAN country in the past three years.

The LiquidX Digital Credit Insurance solution is a platform for Trade Credit Insurance policy quoting, policy management, and risk monitoring, saving policyholders, carriers, and brokers time and effort. LiquidX digitizes and optimizes the management of Trade Credit Insurance policies by cross-referencing policy terms and conditions, authenticating the eligibility of endorsed buyers, and automating policy reporting requirements to help ensure policy compliance.

“On behalf of the entire LiquidX team, we would like to express our sincere appreciation to the panel for recognizing our achievements,” said Alex Bursak, Director and Regional Head of Insurance Asia Pacific at LiquidX. “We are really proud of our momentum in Singapore in 2021. In June we were granted our insurance brokerage license by MAS, in August the first Singapore-based insurer joined our platform, and in October we launched the pilot of our groundbreaking InBlock Digital Trade Credit Insurance solution. We are confident our innovative solutions will benefit companies, insurers, and insurance brokers in Singapore and across the region.”

Todd Lynady, Global Head of Insurance, added, “We are especially proud of this recognition given Singapore’s position as a major hub for FinTechs and InsurTechs globally. InBlock Digital Policy Management is truly a game-changer for the Trade Credit Insurance industry.”

Winners of the Singapore FinTech Festival Global FinTech Awards 2021 will be announced November 11.