WikiStage ESCP Europe 8 - London. London, United Kingdom, 2016 Devie MOHAN speaks for the good side of the debate. She works at Thomson Reuters and is a FinTech Market Strategist. She is ranked #12 on the FinTech100 global list. "FinTech by definition came about as an industry forced by the economic crisis as a way of bridging the gap between banks and consumers. Consumers want one thing: they want an easier way of dealing with banks or any financial service and they want an intuitive experience of doing that. Banks were not able offer it, primarily because of the economic crisis - they had complex issues to deal with, new kinds of regulations coming in, they had to cut costs, the margins were literally not there. That is how the FinTech industry really came about, as a way of bridging that gap." The three main things FinTech brands have done in terms of good: (1) Developing new business models. (2) Opening to new markets - FinTechs let anybody open an account. (3) Opening to different geographies and using different kinds of big data

WikiStage ESCP Europe 8 - London. London, United Kingdom, 2016 Reverend Chris CHIVERS speaks for the good side of this debate. He is Principal at Wescott House in Cambridge (UK). "There are only 50 references to sex in the Bible; there are over 500 references to money. The new testament talks more about money than anything else, any other single subject. But it interesting that everyone's perception is that Christians spend all their time talking about sex." "Impact investment model is a post-colonial model of investing, because it is the only model in which there is a true relationship." "Where there is power and money residing in a donor-recipient model, you cannot develop true relationship - you can only develop dependency.

WikiStage ESCP Europe 8 - London. London, United Kingdom, 2016 Dr. Terence TSE speaks for the flip side of this debate. He is Professor of Finance at ESCP Europe. "Like fire, finance can be a good servant or a very bad master." "Between land, labour and capital, one thing that is not shrinking or flattening is capital. Its role and significance is tremendously bigger than before." "Even though overall level of GDP is rising and economic pie is getting bigger and bigger, the middle income class is actually earning less and less. Why is this the case? Because of automation: machines started to take over those jobs that were traditionally held by the middle income class." "Think about Uber - who actually finances the taxi cars? The car drivers, because they now have to take a loan to buy a car, the financial risk is on them. Where is the financial gain going? - to Uber. "
Rank #3 for this event.

WikiStage ESCP Europe 8 - London. London, United Kingdom, 2016

WikiStage ESCP Europe London 2016 Lenke KISS speaks for the flip side of our debate. She is Senior Manager in the Stress Testing department of Lloyds Bank in London. "The bank performs the service of lending for a fee. That fee is the profit and like every other corporation the banks want to make a profit." "When profit becomes the main aim of operating of a bank and we have an environment which is entirely buoyant, credit is cheap, bank to bank lending is very cheap, they can take on more and more liabilities without having the assets to support them. And the regulator believe it or not (like it happened in the 1990s) says that the market regulates itself, we will not interfere - what happens then? The banks start inventing products that have no relationship with lending or the real world. More and more exotic, more and more wrapped up into bundles that are more and more obscure." "When that happens how do you make profit? By generating sales - so you try to make your customers to buy as much products they can, whatever those products might be." "However, what really increases your profits is risk. So banks start trading more and more risky products, without the appropriate capital base and without the regulatory controls in place - that's what happened in the financial crisis. Because of the linkages in the financial system and because the financial system is such an important part of the real economy supporting all economic activity, the financial crisis created a global recession" "If you stop lending, how do businesses get the funds to invest? How do banks get the funds to grow? As individuals, how do you get your mortgage? And not just that, but also the banks had to be bailed out, using taxpayer money. About 50 billion pounds worth bailout happened in the UK, 7 banks collapsed, some banks were nationalized." "At this point, there is about 30 billion pounds worth of fines and costs to the banking industry because of misspelling financial products." Although the regulators have made a lot of headway in trying to fix the financial risk within the system, by introducing stress testing, by the Basel Committee that introduced tougher and tougher rules on capital, by separating the investment banks from the retail banks - even so, the inherent risks remain. Conduct has not yet been solved, bankers are still taking enormous short term bonuses. The bonus cap has not worked; salaries have been raised to circumvent these regulations." "How about those people in the population that have no bank account, because no bank wants to open a bank account for them? If the banks become even more risk averse because of the regulations, who are they left to? And then we come back to the social responsibility of the banks."
Rank #4 for this event.