Isle of Man launches Fintech Innovation Challenge

The Fintech Innovation Challenge encourages companies to be part of the financial sector on the island and participate in solving problems in fintech. Businesses have the option of partnering with non-Isle of Man technology firms or going it alone. They then have access to technology and financial services ecosystems on the Isle of Man which they can use to navigate the challenges and build a pitch, which is what the winners are judged on.

The Fintech Innovation Challenge will address four key challenges identified in the Isle’s financial environment:

1. Digital identity management, for example safe storage of passports
2. E-KYC, and how to verify the identity of financial customers using digital technology
3. Leverage AI to deliver fraud prevention and risk management
4. A wildcard option that allows FinTechs to define a problem statement that they believe exists in the Isle of Man

Speaking to Finextra at the launch, Lyle Wraxall, CEO of Digital Isle of Man, expressed his excitement at the diverse set of conversations taking place across all areas of fintech.

Wraxall states that a core component of the arrangement is working with regulators on the island, including Finance Isle of Man and the Isle of Man FSA. .

He explains that when Digital Isle of Man developed the Fintech Challenge, “Digital Isle of Man worked with a number of different bodies, both on and off island to understand what a fintech taxonomy looks like, the necessary building blocks to put in place to building a successful ecosystem, and what elements of a given taxonomy were and were not relevant to the Isle of Man and to a market of our scale.”

Through the Fintech Challenge, Wraxall sees an opportunity to navigate the authorities’ involvement in the industry, digital identity and dynamic compliance. The aim of the challenge is to improve all businesses on the Isle of Man in the future and to cement the island as a forward-looking, digital-first financial economy.

Wraxall explains that looking at comparative jurisdictions and taking risks is an important opportunity for the Isle of Man: “I did a panel with Jersey, Guernsey and Charlton, talking about how we can work together and what lessons we can learn from each other. Do we compete or work together? There is a balance between the two things and that is important. We don’t want to repeat mistakes that other people have made. Smaller jurisdictions all have similar challenges that we can learn from. Broadly, we look at everyone and try to think: what is most appropriate for us on the Isle of Man, and what are our aspirations as an island nation?”

The selection process for the event will likely run next spring. The event is in collaboration with Deloitte, which will contribute to developing the framework for the Fintech Challenge.

In a press release about the event, Kent Mackenzie, head of regtech and fintech at Deloitte, commented: “We are committed to working with our local markets and communities, using our global expertise to help drive growth and accelerate ambitious ideas.

“The Isle of Man FinTech Innovation Challenge is a fantastic opportunity for FinTechs from around the world to submit technology-based solutions to benefit the industry and wider society. There is also a “wildcard” challenge, where participants are asked to present their most boundary-pushing and imaginative ideas. We are excited to see the submissions and work with the participants throughout the process.”

Earlier this year, Chief Innovation Officer at Digital Isle of Man, Kurt Roosen, wrote about the island’s approach to innovation and fintech for Finextra.