Name: Compliance and the profit paradigm with Allica Bank
Uploaded: 2024-07-24T11:26:07.006Z
Duration: 710.08

Mitch Trehan_Allica Bank.mp4

Mitch Trehan_Allica Bank.vtt

English

{{00:00:08}}
Hello, everybody, and
welcome to FinTech Futures.

{{00:00:10}}
We are here at day two of
Money 2020 in Amsterdam.

{{00:00:14}}
My name is Tyler Pathe.

{{00:00:15}}
I'm a reporter for FinTech Futures.

{{00:00:17}}
And today, I'm really excited
to be joined by Mitch Trehan.

{{00:00:20}}
Mitch, how are you?

{{00:00:21}}
I'm good, thanks, everyone.

{{00:00:22}}
I'm Mitch Trehan.

{{00:00:23}}
I am the chief compliance
officer at Allica Bank.

{{00:00:26}}
Allica Bank is focused on established
businesses in the UK market.

{{00:00:30}}
We provide lending, business current
accounts and saving accounts with

{{00:00:33}}
a hyper focus on that client base.

{{00:00:36}}
That's really fantastic.

{{00:00:37}}
thank you for that introduction, Mitch.

{{00:00:41}}
I understand that it's a very exciting
time for you to be here at, at Money2020

{{00:00:47}}
this year and here in Amsterdam.

{{00:00:49}}
You've got a panel session
coming up tomorrow afternoon.

{{00:00:53}}
It should be very interesting.

{{00:00:54}}
Can you give us a little bit of a
sneak peek into what we can expect?

{{00:00:58}}
Can't give too much away, but the panel,
I'm moderating a panel on meritocracy.

{{00:01:03}}
And what's actually happening
with meritocracy across the

{{00:01:05}}
financial services industry today.

{{00:01:07}}
Focus on, focusing on also,
what's happening with diversity.

{{00:01:12}}
How do people that speak up and speak up a
lot louder and confidently getting noticed

{{00:01:16}}
versus maybe members of a team that aren't
as outspoken, but are great performers.

{{00:01:20}}
How do we ensure that everyone is
recognized appropriately and tackling

{{00:01:24}}
unconscious bias that leaders may have.

{{00:01:26}}
So the panel surrounding all of
those aspects and what to look

{{00:01:29}}
for and how to address that to
the best for everybody at large.

{{00:01:33}}
That sounds really interesting.

{{00:01:34}}
I think it taps into a lot of,
key ideas are circulating here

{{00:01:38}}
today at the conference, and
brings them onto the stage.

{{00:01:41}}
So it'd be really exciting to see that.

{{00:01:43}}
And I'm, I'm sure I'll
be there in attendance.

{{00:01:46}}
So really, good.

{{00:01:48}}
Allica Bank, it's an interesting time to
the Chief Compliance Officer, Allica Bank.

{{00:01:54}}
in April, it reported its first
full year of profitability.

{{00:01:58}}
Fantastic achievement.

{{00:02:00}}
Well done.

{{00:02:01}}
What do you think were the key drivers of
the bank's 141 percent climb in revenues?

{{00:02:09}}
I think, genuinely, I don't believe
there's any real secret sauce here, right?

{{00:02:15}}
We've got our client base has
been historically underserved.

{{00:02:19}}
The big banks have focused
on the big large corporates.

{{00:02:22}}
Those new challenger banks have focused
on the individuals and the consumers

{{00:02:25}}
and you've got this big section of
society, these established businesses.

{{00:02:28}}
A third of UK GDP.

{{00:02:32}}
That had just been underserved.

{{00:02:34}}
So if you focus specifically on an
underserved market with clear focus on

{{00:02:39}}
objectives and delivery Everything just
then falls into place and that's a route

{{00:02:46}}
that you've followed quite clearly and
it's paid off, which is really fantastic

{{00:02:50}}
So well done on that achievement It's a
very exciting time in terms of your role

{{00:02:59}}
as chief compliance officer How does
Allica Bank balance its risk appetite

{{00:03:05}}
with its compliance requirements.

{{00:03:07}}
Okay, no problem.

{{00:03:08}}
So the compliance requirements matching
into that risk appetite falls into

{{00:03:14}}
place on its own for a lot of it.

{{00:03:16}}
Given our client base, it is that
SME market or established businesses.

{{00:03:21}}
That means that speaks a lot of itself
on what the risk appetite should be.

{{00:03:25}}
We don't do other financial institutions
on a correspondent banking and

{{00:03:28}}
downstream payments and all of that area.

{{00:03:31}}
So all of that's outside of appetite
because That's not our client base.

{{00:03:35}}
We're also extremely transparent
about what our risk appetite is.

{{00:03:38}}
It's available on our
website for everyone to see.

{{00:03:41}}
And at the core root of Allica
Bank is a societal purpose.

{{00:03:46}}
So a lot of our risk appetite, a
lot of what we will do and won't

{{00:03:49}}
do, it's all about what is good for
society and driving that societal

{{00:03:53}}
purpose through, which again is all
transparently documented on our website.

{{00:03:57}}
That's, really interesting, to talk
about that sort of societal purpose.

{{00:04:02}}
It taps into a lot of what we're seeing
in, the UK at the moment, for example.

{{00:04:07}}
I know we're, in, we're not in the
UK at the moment, but talking back,

{{00:04:11}}
we are sometimes, maybe sometimes
maybe we are, maybe we never left.

{{00:04:13}}
Everyone here is from the UK.

{{00:04:15}}
a lot of people anyway, I know
I've noticed that, it was a

{{00:04:19}}
major financial hub, isn't it?

{{00:04:20}}
It's still, we, see things for the FCA
for consumer duty, meeting consumers where

{{00:04:25}}
they are in, Allica Bank for example.

{{00:04:28}}
in Allica Bank's instance, it's
SMEs, but it's really, good to

{{00:04:31}}
hear that you have that practice
and those sort of beliefs in play.

{{00:04:37}}
I've witnessed a lot happening
at Allica Bank before it reported

{{00:04:40}}
its profitability in, April.

{{00:04:43}}
you've formed partnerships with
Wise Platform, for example, with

{{00:04:48}}
ClearBank who are here somewhere.

{{00:04:50}}
I think they're back here for that.

{{00:04:52}}
how do you then manage that sort of
like compliance requirements and.

{{00:04:58}}
the opportunity for risk to arise when
partnering with those fintech providers.

{{00:05:05}}
Of course, no problem.

{{00:05:07}}
so the key attributes with both Wise
and ClearBank, for example, is they're

{{00:05:10}}
supporting us with providing our products
and services to underlying customer base.

{{00:05:15}}
So the key part of all of that, and I know
I mentioned it before with our website and

{{00:05:18}}
the transparency of the risk appetite that
way, but it also happens with our partners

{{00:05:23}}
that need for that open communication,
understanding their risk appetites.

{{00:05:27}}
What they will help us process, what they
won't help us process, what we want to

{{00:05:32}}
do with our societal purpose and mapping
all of that together is really how we

{{00:05:35}}
address those compliance requirements.

{{00:05:37}}
So we've got specific teams
internally that manage those ClearBank

{{00:05:40}}
relationships and the Wise relationships.

{{00:05:42}}
And that feeds then through into our
compliance procedures and processes to

{{00:05:46}}
ensure that all of those multifaceted
pieces of requirements go all the way

{{00:05:51}}
through in a seamless way, making the
end user experience clean and straight.

{{00:05:56}}
Yeah.

{{00:05:58}}
that's a really interesting point
because when you think of compliance

{{00:06:02}}
and, abiding by finances, many
regulations, there's too many to

{{00:06:07}}
count in this video, unfortunately.

{{00:06:11}}
but, there, there is a risk of being
compliant in a regulatory manner and then

{{00:06:18}}
having that sort of level of innovation
to serve, in your instance, SMEs.

{{00:06:23}}
With, profits now rolling in.

{{00:06:25}}
And I believe 385 million pounds in
financial backing, which is astonishing.

{{00:06:31}}
It's amazing.

{{00:06:32}}
Congratulations.

{{00:06:33}}
But how is Allica Bank ensuring
that balance between being

{{00:06:37}}
compliant and being innovative?

{{00:06:39}}
So it's a really, good point as well.

{{00:06:42}}
that's also really maps back to what I
was saying at the start about that focus

{{00:06:46}}
on our established business market.

{{00:06:49}}
We have typically been underserved
and one of the key areas there is

{{00:06:51}}
that onboarding process and procedure.

{{00:06:54}}
And what Allica is doing differently here
is, it's very much a handheld process.

{{00:06:58}}
It's not just fill in a form and
you disappear into the ethos.

{{00:07:02}}
Our clients are given a
relationship director.

{{00:07:05}}
And that hand holding is part
of that onboarding process with

{{00:07:09}}
our onboarding teams as well.

{{00:07:10}}
Means that our ability to comply
with those onboarding procedures,

{{00:07:14}}
the identification and verification
requirements, the nature of the

{{00:07:18}}
business of our customers, it all
quite happens quite seamlessly and

{{00:07:21}}
naturally through the engagement model.

{{00:07:24}}
So if you think about the user
experience, you've got a user experience

{{00:07:27}}
that's engaging, not just a fill in
a form and we'll never speak with

{{00:07:31}}
you, you've got that dedicated piece.

{{00:07:33}}
And when you start overlaying that with
compliance requirements, it actually

{{00:07:36}}
becomes quite easy to put that in.

{{00:07:38}}
Then you start taking in, we are
here at Money 2020, many reg tech

{{00:07:42}}
providers, identification and
verification providers, PEP sanctions

{{00:07:47}}
and electronic checking providers,
ways of making the risk assessment of

{{00:07:51}}
the customer in an automated fashion.

{{00:07:53}}
Thank you.

{{00:07:54}}
You start overlaying and putting that all
into the procedure and processes, you can

{{00:07:57}}
get a really unique compliant process,
that still works from a user experience.

{{00:08:02}}
That's really fascinating.

{{00:08:03}}
I think, when you talked about this
sort of community focus, in, in your

{{00:08:09}}
initial aspect, what you've just
said then about pairing your clients

{{00:08:13}}
with somebody from the bank, is
like really doubling down on that.

{{00:08:16}}
And you're not just talking the talk,
you're walking the walk in that instance.

{{00:08:20}}
Of course.

{{00:08:21}}
banking and financial services at
large is one of the most heavily

{{00:08:25}}
regulated industries in the world.

{{00:08:28}}
you can't do, you can't do
anything without the job.

{{00:08:31}}
That's why you got a job.

{{00:08:33}}
I'm sure it keeps the regulators
very, busy from your standpoint.

{{00:08:38}}
Then, what do you think the major
compliance hurdles are going to

{{00:08:44}}
be in the next two to five years?

{{00:08:46}}
And importantly, how is Allica
Bank preparing for them?

{{00:08:49}}
Okay.

{{00:08:49}}
So I'll start with the end of the
question, how are we preparing for them?

{{00:08:53}}
You can't prepare for anything unless
you've identified what's coming along the

{{00:08:56}}
horizon and what's actually coming up.

{{00:08:58}}
So let me go down that
road and talk about that.

{{00:09:00}}
I think there's a few key
parts that everyone in the

{{00:09:02}}
industry needs to be aware of.

{{00:09:04}}
First one's going to be
authorized push payment fraud.

{{00:09:06}}
That's coming in later this year and
how the industry is preparing for that.

{{00:09:10}}
The next part is going to be cyber.

{{00:09:13}}
The world is becoming a more
and more tech focused place.

{{00:09:16}}
So while all firms are being cyber
resilient, making sure you're not.

{{00:09:21}}
Just leaving that aside and say,
Oh, we've done what we need to.

{{00:09:23}}
That was like brushing your teeth.

{{00:09:25}}
You don't do it once and
then never do it again.

{{00:09:27}}
You have to constantly keep
rechecking and being there and make

{{00:09:30}}
sure it's appropriate and correct.

{{00:09:32}}
So I think cyber is going to
be a longer term focus for

{{00:09:34}}
everyone across the industry.

{{00:09:36}}
The next part is going to be
resources and hiring, right?

{{00:09:39}}
As firms such as Allica and anybody
that's growing rapidly as we

{{00:09:42}}
are, you need to keep growing and
bringing in the right compliance

{{00:09:45}}
resource, but finding that compliance
resource with that type of growth.

{{00:09:50}}
It's very interesting.

{{00:09:51}}
You think about what the big
banks have done, they've siloed

{{00:09:54}}
all of their compliance teams
and departments and people have a

{{00:09:56}}
unique, small specialism and focus.

{{00:09:59}}
And then the smaller players have got
that wider, generalist type population

{{00:10:04}}
of employment and compliance staff.

{{00:10:07}}
What you need then to start
doing is getting people that are

{{00:10:09}}
specialists with a generalist view.

{{00:10:12}}
And that's going to be a challenge for
a lot of people, particularly as when we

{{00:10:15}}
come to the last part of what's happening,
more regulation coming down the path.

{{00:10:19}}
And for me, it'll be really
interesting seeing what, if there's

{{00:10:22}}
a change of government, what
comes with that when it comes to

{{00:10:25}}
financial services and regulation.

{{00:10:27}}
And in terms of that talent and those
people with that know how has it been to

{{00:10:33}}
find those people, to source those people?

{{00:10:35}}
Do you think that it's going to be a
challenge to, to overcome that hurdle?

{{00:10:40}}
Or do you think that there are
people with that knowledge who

{{00:10:43}}
are actively in banking right now?

{{00:10:45}}
I think there are definitely
people in the market with that

{{00:10:47}}
appropriate skill set and knowledge.

{{00:10:49}}
And.

{{00:10:49}}
The years under their belt.

{{00:10:52}}
the next part is just finding, right?

{{00:10:54}}
Finding those individuals.

{{00:10:55}}
There are a lot of people out there.

{{00:10:57}}
I'm currently hiring
and expanding the team.

{{00:11:00}}
and I'm up for the challenge.

{{00:11:01}}
I want to, I enjoy working with
people and bringing new talent

{{00:11:04}}
through and coaching them up.

{{00:11:05}}
The next levels of mentoring that well,
Mitch has been fantastic to speak to you.

{{00:11:09}}
Hopefully next time that we meet it
at next year's Money 2020 or sooner.

{{00:11:13}}
You can, you can tell me all about
how that journey has gone and how,

{{00:11:18}}
Allica Bank has, progressed and
has a great financial performance.

{{00:11:21}}
I would absolutely love to
speak with you again about that.

{{00:11:23}}
I'll see you next year.

{{00:11:24}}
thank you very much for
joining us for having me.

{{00:11:26}}
Thank you everybody who has joined
us online for this conversation.

{{00:11:30}}
If you'd like to find out more about
Allica Bank Money 2020 Europe, any more

{{00:11:35}}
about the compliance issues that are
facing the industry at large, please

{{00:11:40}}
visit our website at vintagefutures.

{{00:11:42}}
com.

{{00:11:42}}
Until then, I'll see you
next time and goodbye.

Hello, everybody, and
welcome to FinTech Futures.

We are here at day two of
Money 2020 in Amsterdam.

And today, I'm really excited
to be joined by Mitch Trehan.

I am the chief compliance
officer at Allica Bank.

Allica Bank is focused on established
businesses in the UK market.

We provide lending, business current
accounts and saving accounts with

I understand that it's a very exciting
time for you to be here at, at Money2020

You've got a panel session
coming up tomorrow afternoon.

Can you give us a little bit of a
sneak peek into what we can expect?

Can't give too much away, but the panel,
I'm moderating a panel on meritocracy.

And what's actually happening
with meritocracy across the

Focus on, focusing on also,
what's happening with diversity.

How do people that speak up and speak up a
lot louder and confidently getting noticed

versus maybe members of a team that aren't
as outspoken, but are great performers.

How do we ensure that everyone is
recognized appropriately and tackling

So the panel surrounding all of
those aspects and what to look

for and how to address that to
the best for everybody at large.

I think it taps into a lot of,
key ideas are circulating here

today at the conference, and
brings them onto the stage.

And I'm, I'm sure I'll
be there in attendance.

Allica Bank, it's an interesting time to
the Chief Compliance Officer, Allica Bank.

in April, it reported its first
full year of profitability.

What do you think were the key drivers of
the bank's 141 percent climb in revenues?

I think, genuinely, I don't believe
there's any real secret sauce here, right?

We've got our client base has
been historically underserved.

The big banks have focused
on the big large corporates.

Those new challenger banks have focused
on the individuals and the consumers

and you've got this big section of
society, these established businesses.

So if you focus specifically on an
underserved market with clear focus on

objectives and delivery Everything just
then falls into place and that's a route

that you've followed quite clearly and
it's paid off, which is really fantastic

So well done on that achievement It's a
very exciting time in terms of your role

as chief compliance officer How does
Allica Bank balance its risk appetite

So the compliance requirements matching
into that risk appetite falls into

Given our client base, it is that
SME market or established businesses.

That means that speaks a lot of itself
on what the risk appetite should be.

We don't do other financial institutions
on a correspondent banking and

downstream payments and all of that area.

So all of that's outside of appetite
because That's not our client base.

We're also extremely transparent
about what our risk appetite is.

It's available on our
website for everyone to see.

And at the core root of Allica
Bank is a societal purpose.

So a lot of our risk appetite, a
lot of what we will do and won't

do, it's all about what is good for
society and driving that societal

purpose through, which again is all
transparently documented on our website.

That's, really interesting, to talk
about that sort of societal purpose.

It taps into a lot of what we're seeing
in, the UK at the moment, for example.

I know we're, in, we're not in the
UK at the moment, but talking back,

we are sometimes, maybe sometimes
maybe we are, maybe we never left.

a lot of people anyway, I know
I've noticed that, it was a

It's still, we, see things for the FCA
for consumer duty, meeting consumers where

in Allica Bank's instance, it's
SMEs, but it's really, good to

hear that you have that practice
and those sort of beliefs in play.

I've witnessed a lot happening
at Allica Bank before it reported

you've formed partnerships with
Wise Platform, for example, with

how do you then manage that sort of
like compliance requirements and.

the opportunity for risk to arise when
partnering with those fintech providers.

so the key attributes with both Wise
and ClearBank, for example, is they're

supporting us with providing our products
and services to underlying customer base.

So the key part of all of that, and I know
I mentioned it before with our website and

the transparency of the risk appetite that
way, but it also happens with our partners

that need for that open communication,
understanding their risk appetites.

What they will help us process, what they
won't help us process, what we want to

do with our societal purpose and mapping
all of that together is really how we

So we've got specific teams
internally that manage those ClearBank

relationships and the Wise relationships.

And that feeds then through into our
compliance procedures and processes to

ensure that all of those multifaceted
pieces of requirements go all the way

through in a seamless way, making the
end user experience clean and straight.

FinTech Futures

Best Practice

Speaking with FinTech Futures at Money20/20 Europe, Mitch Trehan, chief compliance officer at Allica Bank, details the events and technologies that led up to the challenger recording its first full year of profitability in April.

Here, Trehan discloses the key drives behind Allica’s latest revenue ramp-up, as well as how it measures up its risk appetite for lending, maintains a growing partner network, and its plans to put its newfound profits to good use.