It is my pleasure to welcome so many of you to Jersey’s first Fintech conference.
I would like to commend the hard work of Digital Jersey in putting on this event and attracting such an interesting set of speakers from the full cross-section of the FinTech sector.
I’m also delighted to welcome Digital Jersey’s new CEO, Tony Moretta, to Jersey and his first big event in Jersey.
I have every confidence that he and Jersey Finance can and will steer Jersey into a great FinTech future.
FinTech
For me, FinTech is the natural evolution of an innovative Jersey.
It's really exciting to see so many Jersey FinTech companies being promoted on the stands outside.
Jersey has a strong reputation in knowing where capital comes from and it's clear that there are strong opportunities in AML FinTech.
Having got home last night (after having hitched a lift in Jason Laity's new electric vehicle), I opened my email and asked very politely if I could take a copy of my driving licence and a utility statement to my bank.
I thought to myself, there must be online KYC through a customer’s smart phone, no matter where they are located.
Innovations designed to make our finance industry more efficient and responsive, whilst promoting the highest standards of regulatory compliance.
The government has placed a large amount of focus on FinTech because the technologies that are being developed by people here in this room have huge economic potential for Jersey.
Ultimately, the technologies being developed today will have the prospect of changing the way we bank, the way we invest and the way companies raise money.
It will lead to new products, new services, new lenders and many new opportunities.
And the exciting thing about combining new technology, open markets, free market and a connected, borderless world is that the opportunities are huge.
Virtual currencies
Governments also have a role to play.
It’s up to us to create the best environment in which this financial innovation can flourish.
There is no doubt that part of an innovative FinTech strategy for Jersey is a clear position on virtual currencies.
When we consulted on how to regulate for virtual currencies in July this year, we stated that virtual currency systems can be significant building blocks of a modern digital economy.
It was therefore important for us to introduce an appropriate and proportionate regulatory regime in this area to encourage confidence and innovation in the sector.
The feedback: overwhelming support for regulation to currently be applied at the point of exchange between fiat and virtual currencies.
I'm delighted that, later this morning, we will be releasing a detailed policy document on gov.je stating how we intend to regulate virtual currencies and you are going to hear about it from George Pearmain from government and Vladimir Jizdny from the JFSC.
The legislation required to enact this policy will start to be drafted immediately.
And I will then look to take this legislation to the States Assembly for adoption in early 2016, with the aim that this regime should be in force as soon as possible after that.
The work that has been done on this underlines the work Digital Jersey can continue to do and the vital role of strong links between the industry, the regulator and government.
Building this strong relationship has proved critically successful in building the financial services industry, and I am committed to achieving it in this sector.
The policy on virtual currencies is a stepping stone along that path for Jersey.
The purpose of the new policy is to state Jersey’s clear commitment to creating an environment that, however digital currencies evolve, in Jersey they can do so in a world-class jurisdiction that understands how to manage risk.
If anywhere can, Jersey can.
Jersey Innovation Fund
I would also like to mention the Jersey Innovation Fund (better known as JIF), which has been designed to provide funding and support to innovative new projects.
To be successful in a bid for funding, projects must have the potential to deliver a net economic benefit to Jersey, usually through means of employment.
The maximum amount of JIF funding support offered is £500,000.
And through the solid leadership of Tim Herbert, the chair of the JIF Advisory Board, they have attracted around 50 applications to date and released about £2.5 million of funds so far.
Over half of those supported have been digital initiatives and there is a healthy pipeline of applicants, including a number of FinTech products and services.
This is excellent work and has my full support.
Innovation review
Facilitating increased innovation, enterprise and inward investment are key Strategic Plan priorities for this government.
Achieving this will enable Jersey to maximise economic growth and productivity; it will provide a future-proof environment for firms to conduct business and will in turn, I hope, encourage firms to ensure their employees' skills are fit and relevant for a modern global economy.
However, saying the word innovation over and over isn’t enough to make it happen, and certainly isn’t enough to ensure FinTech businesses have the right environment in which to flourish.
That’s the reason why, with the Chief Minister's full support, we commissioned a review to consider Jersey's current innovation performance and to present recommendations for enhancing it.
This review has been led by Tera Allas, who you will be hearing from later on today.
On the basis of Tera’s analysis, she has provided 33 recommendations for Jersey to enact, covering our business environment, our access to money, our talent and even our education policies.
Coordinating the next stage of this work has required the coming together of no less than 10 departments and agencies, and we will be publishing a detailed action plan in the coming weeks.
Conclusion
Last night I was asked what success looked like today and what success will look like for FinTech in Jersey in the next five years.
As far as today is concerned, the aim is simple: to put Jersey on the FinTech map.
Long term, it's clear that tech provides both threats and opportunities.
We have a great history of punching above our weight: the Jersey cow and Jersey garment are known around the world.
I have an aspiration that Jersey should be regarded equally highly in the FinTech world.
If anywhere can, Jersey can.
I am confident that with your support, we can bolster what has already been achieved, and signpost Jersey as a world-leading location for innovation and innovative FinTech firms.
I hope you have a great day.
gov.je