Sustainable Finance, Frankfurt

What is Sustainable Finance and why is it reaching the mainstream of financial markets?

Increasing pressure on the environment, damages to ecosystems and environmental changes are presenting a global challenge. Integrating sustainability considerations into the financial system can play an important role in meeting the objectives agreed upon in the United Nations’ Sustainable Development Goals (SDGs) and the Paris Climate agreement. Therefore, the inclusion of sustainability criteria in the financial sector are essential to address the future challenges – this also includes the establishment of financial market structures that create incentives for large-scale shifts in investments and a more future-friendly capital allocation.

As part of the growing awareness that a shift in the financial industry is needed, sustainable finance is increasingly gaining attention from global financial and political actors as well as the broad public. But what does it mean?

Sustainable Finance aims at integrating environmental, social or governance (ESG) criteria into financial services. Decisions about investments and capital expenditures should take those criteria into account, while being beneficial to both the investor and society at large. Moreover, the sustainability risks that may impact the stability of the financial system should be made transparent. However, the future-oriented investment strategies should be based on valid data as well as medium to long term risks and returns. While this previously was a niche investment strategy, the approach increasingly reaches the mainstream of international financial markets.

An important component of Sustainable Finance is Green Finance, which refers to raising capital and financial investments into companies, services, products and projects that accelerate the development of an environment friendly and climate-resilient economy – an undertaking to which technological innovation and digital finance are essential to. By using big data, artificial intelligence and the internet of things Green FinTechs present innovative and efficient opportunities to further the greening of the financial system while mainstreaming the green finance approach by making sustainable financial services more accessible.

No signs of slowing – strong first half year for Frankfurt Office Market

Following 2017’s record results, the office market in the Financial Centre Frankfurt continues to boom with take-up in the first half of 2018 reaching third highest level of the past ten years and the best first quarter since 2000. According to experts at BNP Paribas Real Estate, CBRE, Savills Investment Management and Jones Lang LaSalle, the high level of activity in Frankfurt is leading towards the lowest vacancy rate in 15 years which will continue to fall in the latter half of 2018.

As a result of Brexit, 25 financial services firms have declared intentions to expand or move operations to the Financial Centre Frankfurt. Frankfurt Main Finance expects about 2,000 Brexit related positions will be relocated to Frankfurt by the end of 2018 and still holds its estimate of up to 10,000 potential positions in the medium-term, which have yet to impact demand on the real estate market to their full-extent.

Financial services firms affected by Brexit can still expect to find ample, modern office space in the city centre. Frankfurt remains affordable in international comparison, despite the waning vacancy rate now at 8.3% and Prime Rents increasing to 43 EUR/m2/month, according to data published by BNP Paribas Real Estate. In fact, the Financial Centre Frankfurt is just a fraction of the price of London or Paris. In the second quarter, prime rents in London and Paris topped 118 and 71 EUR/m2/month, respectively. Both cities have a vacancy rate below 6%.

These developments are discussed in detail by the Managing Director and branch head of BNP Paribas Real Estate, José Martínez, and Carsten Ape, Managing Director of CBRE, Andreas Trumpp of Savills Investment Management and Markus Kullmann of Jones Lang LaSalle (JLL), as well as Managing Director of Frankfurt Main Finance, Hubertus Väth.

The deviations in the data concerning vacancy rate, take-up or prime rents between the participating real estate firms result from the varying collection methodoligies or populations. Frankfurt Main Finance does not weight or value the individual methods, but instead presents them transparently.

José Martínez, Managing Director of BNP Paribas Real Estate GmbH and Frankfurt Branch Manager

“The upward trend in the Frankfurt office market continues. With a take-up of 273,000 m2 in the first half of 2018, the result is just under 14% above the ten-year average. Compared nationwide, take-up was higher only in Munich and Berlin.

In no other city are the results distributed so evenly across the various industry groups as in Frankfurt. First place is taken by banks/financial services with a share of 14.5%. Second place is taken by co-working providers, which contribute just over 12 % and are gaining increasingly in importance as a demand group in Frankfurt as well. The top three is completed by the group media and advertising, which is responsible for 12%. Places four to six are filled by three industry groups, which each have a share in take-up of just under 11%. These are public administration, ICT firms and consultancies. This even distribution of the result underlines impressively the very broad demand base and lively market activity. Among the most important deals were the leases of 24,000 m² by the FAZ newspaper in Europaviertel, 8,300 m² by the German Finance Agency in Heddernheim/Mertonviertel and 8,000 m² by the Bethmann Bank in the Banking District.

The reduction in the amount of vacant space has continued and currently stands at 1.28 million m². This is the lowest volume in the last 15 years. Of the total vacancy, however, just under 48% (611,000 m²) has the modern quality preferred by occupiers. The vacancy rate in the overall market has fallen to 8.3%. The biggest problem remains the shortage of space in the central, highly-sought-after locations. Due to the strong demand and inadequate supply of high-quality space, construction activity has increased. A total of 592,000 m² is under construction, but only about half of it is available to the market; the rest is already pre-let. It also needs to be taken into account that most of the supply is only concentrated on a few projects, which in some cases will not be available until 2023. As a result of the relationship between supply and demand outlined above, the top rent has increased compared to the previous year by 12% to 43 €/m². A similar dynamic upward trend has also been recorded for average rents, which have risen by just over 8% to currently 18.30 €/m².

The strong demand situation and the supportive economic environment for the occupier markets will stimulate take-up in the second half-year. This will be even more the case, because the share of major deals should increase. Against this background, an above-average take-up is again expected for the year as a whole, which should exceed the 600,000-m² mark. As the reduction in the amount of vacant space will continue, albeit at a slower rate, a further increase in rents is expected.”

Carsten Ape, Managing Director, CBRE

“Thanks to the strong economy, Frankfurt is in a dynamic state. We are observing an unwaveringly high demand in the office market. With an office space take-up of 253,700 m2 the first half of the year was 13 % above the strong previous years. That strong momentum at the beginning of the year persists throughout the first half of the year.

While the first quarter of the year was dominated by single large-scale projects such as the Frankfurter Allgemeine Zeitung leasing around 24,000 m², the current growth in Frankfurt can mainly be attributed to the traditionally strong financial sector: in addition to banks, consulting firms and law firms, companies from the real estate industry are looking for space.

Moreover, the focus increasingly lies on small-scale objects of up to 1,500 m² – a segment which made up 53% of the 106,800 m2 take-up of the second quarters. Co-working is contributing to that upsurge: within just a few years take-up increased from 1,100 m² in 2015 to 24,800 m² in the first half of this year. Especially start-ups are causing a demand in shared offices – an innovative segment giving the Frankfurt office market an opportunity to grow and ensuring its flexibility.

The high demand, the repurposing and demolition of existing office space as well as a rather modest number of completed real estate projects, caused the vacancy rate to drop to 8.5%. However, construction activity remains to be high. The pipeline is well filled. By the end of 2018, 114,000 m² of office space is to be completed in Frankfurt, of which only about 16% is still available. While the number of available office space is becoming increasingly limited, there is still room on the market.

It is likely that Brexit will have an impact in the medium term. Currently, the political developments in Great Britain are unpredictable and thus, many market participants are awaiting the outcome of the negotiations. However, it can be predicted that Frankfurt will be one of the Brexit winners.

The strong momentum of the Frankfurt office market is likely to continue throughout the second half of the year. The persistently high demand and shortage in office space located at the city centre could lead to an increase in prime rents. Nonetheless, national and international investors are interested in attractive investment opportunities in the Rhine-Main area. Frankfurt continues to be a focal point.”

Andreas Trumpp MRICS, Head of Research Deutschland, Savills Investment Management

“The outcome of the negotiation process for Great Britain’s departure from the European Union will determine the future of other Financial Centres such as Frankfurt. In 2017, the Frankfurt Office Market was marked by record results, even without Brexit-related relocations. An upward trend that persists in the first half of this year. The dynamic of Frankfurt and the Rhein-Main-Region is beneficial to real estate investors, which is amongst the reasons of why Frankfurt moved up 4 places to the 17th most dynamic city in Europe in the recently published Savills IM Dynamic Cities Index. The Main metropolis benefits from its excellent international train and airport infrastructure, above average public transport system and digital network on the local, national and international level. Real estate investors will find investment opportunities in every size category, real estate segment and risk profile. The Financial Centre Frankfurt offers unique investment opportunities that other German cities can hardly provide.”

Markus Kullmann, Team Leader Office Leasing Frankfurt am Main, JLL

“The Frankfurt Office Market reached a strong sales momentum midyear. With a take-up of 260,000 m² a comparison to the previous year (+ 9%), and both the 5- and 10-year average (+ 28% bzw. + 14%.) highlights the outstanding performance. Frankfurt has reached its third-best half-year take-up volume in the past ten years. While large scale rentals of over 10,000 m², such as the rental by the FAZ in the first quarter, do not occur every quarter, we are highly confident that the second half of the year will yield some top lettings – at prime rates. Companies seeking to hire or keep high-calibre personnel are willing to pay prime rents for excellent properties in top locations. Since the dynamic of demand continues to be high, I am confident that take-up will reach 575,000 m² in 2018.

An issue with which actors will be confronted on Frankfurt’s real estate market: vacancy does not necessarily mean vacancy. Available space does not meet the requirements in location, amenities, leasing period and rent. Meanwhile, the vacancy rate is at 7.3 %, with tendency to decrease to 6.8% by the end of the year. As quick reminder: The highest quote was at 17.9 % in 2006. From 2011 (15%) onwards, it gradually declined.

The urgently needed vacant office space did not become available on the market in the second quarter. This is unlikely to have changed by the end of the year. The supply in completed office space of around about 10,000 m² that will become available on the market in the next months is rather modest. I expect a notable relief to hit the market in 2020. By then, 485,000 m² could be constructed.”

Hubertus Väth, Geschäftsführer, Frankfurt Main Finance e.V.

“The high level of leasing activity in Frankfurt and the sinking vacancy rate show that the real estate market in the Financial Centre is booming. The extraordinary quality of life, excellent infrastructure, high concentration of innovative companies and the strong global commercial network make Frankfurt and the Rhein-Main Region one of the most popular destinations international firms. Frankfurt is able and ready to accommodate the numerous financial services firms relocating to Frankfurt from London due to Brexit.”

IFF Paris Europlace le 12 juillet 2018 à Paris au pavillon d'Armenonville

WAIFC – New global strategic alliance to facilitate cooperation and economic growth

Financial Services Leaders Announce Establishment Process of World Alliance of International Financial Centers

Financial services leaders from around the globe assembled in Paris on July 12, 2018, to announce their strategic alliance under the newly formed World Alliance of International Financial Centers (WAIFC) – a global organization created to facilitate cooperation and exchange of best practices across financial centers – and to finalize WAIFC’s common objectives ahead of the signing of WAIFC’s Charter and Statues by all members in September.

A financial center is a kind of a service infrastructure for investors and corporates to manage savings and to finance entrepreneurial risk to trigger economic growth in a sustainable environment. Financial centers are known for their clustering effect, they bring together financial institutions (banks, insurance companies, asset managers …), regional headquarters of multinational companies, professional services providers.

WAIFC was proposed by the financial centers of Frankfurt (Germany), Moscow (Russia) and Paris (France) in December 2016 to explore cross-fertilization opportunities and facilitate cooperation and the exchange of best practices among financial centers to help contribute to economic growth. They were joined in Paris by the financial centers of Abu Dhabi (U.A.E), Belgium, Casablanca (Morocco), London (UK), Luxembourg, Astana (Kazakhstan), Busan (South Korea), Tokyo (Japan) and Toronto (Canada).

Initially, WAIFC will focus on the following objectives, subject to approval by WAIFC’s Board of Directors:

  • Data on Financial centers
  • Green investment & infrastructure
  • FinTech
  • The role of financial centers in financing the economy

WAIFC will be incorporated as a Belgian association with its head office in the Financial Centre Frankfurt in Germany. Its first General Assembly is planned for the last quarter 2018.

Why WAIFC is Important

Financial centers are key to sustainable economic growth. They provide the infrastructure for investment and savings which go onto facilitate entrepreneurial endeavors and economic growth throughout industries and communities.

Financial centers are not identical in size or scope of activities but cross fertilization among centers can be useful to leverage collective and individual efficiencies and best practices, and thus increase competition and growth.

Find the official Joint Communique here.

Financial Centre Frankfurt welcomes new financial institution – Chinese CICC will be based in Frankfurt

The China International Capital Corporation (CICC) has decided to establish a continental European office in the Financial Centre Frankfurt. The Beijing-based investment bank has been listed on the Hong Kong Stock Exchange since 2015. Alongside CICC, more than 24 banks have chosen to relocate their European headquarters to or expand their capacities in the Financial Centre Frankfurt since the Brexit referendum two years ago.

“We are extremely delighted by CICC’s choice in location,” says Hubertus Väth, Managing Director of the Financial Centre initiative Frankfurt Main Finance e.V. “With the opening of the CICC office in Frankfurt, the leading investment bank from the world’s second-largest economy is now represented in the Financial Centre. We see this as another glowing affirmation of the high quality of the Rhine-Main region. CICC’s decision confirms that the city’s strong appeal extends far beyond Europe and can attract financial institutions from Asia, a region whose impressive significance continues to grow,” comments Väth.

Just recently, the Chinese bank, Essence Securities, chose to establish its base in Frankfurt. The Frankfurt-based China Europe International Exchange (CEINEX) was a decisive factor for both Chinese financial institutions. A fact that is clear to CHEN Han, Co-CEO of CEINEX.

“We are convinced that the city will become the leading Financial Centre in the Eurozone, which is why we came to Frankfurt. The city is the ideal stepping stone for Chinese financial institutions, who plan on establishing a foothold in Europe or seek to expand their market presence,” says Dr. CHEN. “We are happy and proud that we could play a significant role in attracting an important institution like CICC to Frankfurt.”


About Frankfurt Main Finance

Frankfurt Main Finance is the voice of the leading financial centre in Germany and the euro zone, Frankfurt am Main. The initiative has more than 50 members including the State of Hesse, the cities of Frankfurt and Eschborn, and dozens of prominent actors in the finance sector. Through their membership and engagement, they all demonstrate their close relationship to Frankfurt and desire to position Frankfurt amongst the top national and international financial centres. Frankfurt Main Finance leverages the influence of its members to advocate for the Financial Centre Frankfurt and provide high-caliber dialogue platforms. For more about Frankfurt Main Finance and its members, please visit www.frankfurt-main-finance.com.

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About China Europe International Exchange AG (CEINEX)

Based in Frankfurt/Main, Germany, CEINEX is a joint venture established by the Shanghai Stock Exchange, the Deutsche Börse Group, and the China Financial Futures Exchange. As the first market place for RMB-related and China-related investment products in the Chinese offshore market, it acts as a unique bridge between the Chinese and international financial markets. CEINEX is dedicated to providing reliable offshore RMB- and China-related financial instruments to investors, so as to promote RMB internationalization.

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Leading FinTechs honoured at the 2018 FinTechGermany Awards with the Golden Garage

For the fourth time, the Golden Garage was awarded to outstanding FinTech companies on Thursday, June 14, 2018, at the FinTechGermany Award ceremony. The leading investor-driven award for FinTech entrepreneurs, organized by Börsen-Zeitung, Business Angels FrankfurtRhineMain, Frankfurt Main Finance and TechFluence, honours start-ups in six different categories for their accomplishments. Awamo was able to convince the jury of its success in the category Seed-/Early Stage while Optiopay won the category Late Stage. N26 was awarded best FinTech in the Growth Stage. Revolut stood out as „Best foreign FinTech on the German market.” Additionally, the special prize for the best PropTech was given to Exporo. Element Insurance was honoured in the special category Insurtech. The Longlist, consisting of applicants and nominees, featured more than 150 companies.

“FinTechs are of utmost importance to the long-term attractiveness and high economic performance of the Financial Centre Frankfurt,” emphasises Dr. Lutz Raettig, President of Frankfurt Main Finance.

“We are pleased that the FinTechGermany Award provides a platform for start-ups and promotes the financing chain in the region throughout the entire start-up process – from the seed stage to pre-IPO,” states Andreas Lukic, Chairman of Business Angels Frankfurt RheinMain.

“The award ceremony has become a well-established event in the Financial Centre Frankfurt,” says Dr. Jens Zinke, Managing Director of Börsen-Zeitung. “The German FinTech industry continues to grow. We are still at an early stage with regards to the digitalisation of the financial sector,” explains Michael Mellinghoff, Managing Director at TechFluence Consult and Senior Advisor as well as Mentor at FinTech Forum Frankfurt.

The jury’s three most important judgement criteria were financial viability, scalability and exit-potential. They evaluated the business concept, competitive advantages, positioning, financial planning and management. The Seed-/Early-Stage comprises of FinTechs, which either generated their first revenue or had none yet. Companies with a cumulative turnover of at least six figures were able to qualify for the category Late Stage. The category Growth Stage requires companies to have a seven-figure or higher revenue and international expansion to qualify. The special awards recognize important FinTech industry sectors, which are becoming increasingly significant. In addition, the best foreign market participant is being honoured.

Frankfurt Startup Ecosystem Report

Release of the Frankfurt Startup Ecosystem Report

Universities and corporations hold key levers in driving Frankfurt from a startup to a scaleup ecosystem. With a strong startup culture, fast growth in funding, and a globally-leading Fintech cluster, Frankfurt can create billions in economic value. Read more

Said Ibrahimi, CEO of Casablanca Finance City and Hubertus Väth, Managing Director of Frankfurt Main Finance signed the Memorandum of Understanding at the Conference of Montreal.

Casablanca Finance City Authority and Frankfurt Main Finance e.V. commit to long-term cooperation

In a Memorandum of Understanding, Frankfurt Main Finance e.V. (FMF) and the Moroccan Casablanca Finance City Authority (CFC) agreed on a long-term cooperation. Hubertus Väth, Managing Director of Frankfurt Main Finance, and Said Ibrahimi, CEO of the Casablanca Finance City Authority, signed the memorandum on 11 June 2018, at the Conference of Montreal.

The agreement focuses on current issues facing the financial industry such as green and sustainable finance as well as fintech start-ups. Moreover, the memorandum emphasizes the commitment of both financial centres to promote business opportunities in their respective economic regions, namely the Eurozone and Africa. Additionally, the agreement aims to foster the development of an effective cooperation via joint programs, financial trainings, research activities, workshops, publications and study trips.

Frankfurt Main Finance’s Managing Director Hubertus Väth declared, “Africa offers many opportunities for the financial industry. Inclusion and sustainability are important keywords. We look forward to working with Casablanca, a young yet leading financial centre on the African continent.”
Said Ibrahimi, CEO of Casablanca Finance City, stated, “We are delighted to sign this memorandum of understanding with Frankfurt Main Finance, the leading financial centre in the eurozone. The partnership will undoubtedly reinforce the business cooperation between the Eurozone and Africa in the fields of green/sustainable finance and Fintech.”

In the upcoming weeks and months, Frankfurt and Casablanca will implement their joint plans and thus, strengthen their positions as leading financial centres.

Frankfurt Finance Summit 2018 – Ready, Steady, Go!

On May 29, 2018, well-renowned international and national experts from the financial industry and decision makers gathered at the 8th Frankfurt Finance Summit titled Ready, Steady, Go! Who is ready to set the pace in challenging times? to debate the challenges and the strategic responses to current issues facing the European economy, regulators and financial markets. The decision-makers from central banks, stock exchanges, supervisory authorities, banks, insurance companies, politics, business and academia further discussed the future location and supervision of euro-denominated clearing transactions by central counterparties after Brexit and the advancement of artificial intelligence and the potential implications for financial institutions.

Dr. Lutz Raettig, President of Frankfurt Main Finance, opened the Frankfurt Finance Summit by welcoming the attendees and speakers, ranging from several countries and continents and a broad range of backgrounds in the financial services industry. Dr. Thomas Schäfer, Member of the Hessian Parliament and Hessian Minister of Finance, followed with a welcome address in which he discussed recent legislative proposals by the European Commission concerning EU financial markets, stating that he finds a EU single market to not be necessary. In his opening keynote Dr. Jörg Kukies, State Secretary at the Federal Ministry of Finance discussed the transitional period of Brexit as well as the consequences for EU27 and the Financial Centre Frankfurt. Kukies proudly stated, “If we look at Frankfurt, we see a city in a very good starting position. Frankfurt is one of the continent’s leading financial hubs and plays in the league of the world’s leading financial centres.” Kukies further enumerated a lengthy list of the Financial Centre Frankfurt’s advantages, including its deep talent pool, academic network, and outstanding quality of life. Thereafter, Jeroen Dijsselbloem, former President of the Eurogroup and former Minister of Finance of the Netherlands delivered the European keynote in which he gave an outlook on the potential consequences of Brexit and a political and legal way forward, saying that “For Frankfurt, it’s a good outlook. When I go to the UK, bankers will tell me – they won’t say this publicly of course – that the amount of business and the amount of people they’re going to shift, is larger than what is publicly being talked about and Frankfurt is at the top of the list.”

The impact of Brexit on British financial institutions

The Summit’s first panel addressed tomorrow’s strategic responses to the major questions in the financial industry. Chaired by Prof. Dr. Uwe Stegemann Senior Partner, McKinsey & Company, the panel featured Katharine Braddick, Director General of Financial Services at HM Treasury, Bernd Geilen, Vice-Chairman and Chief Risk Officer at ING-DiBa, Thomas Grosse, Industry Leader Banking and FinTech at Google Germany, Felix Hufeld, President of the Federal Financial Supervisory Authority (BaFin) and Dr. Cornelius Riese, Chief Financial Officer at DZ Bank AG. As part of the debate, Kathrine Braddick discussed the impact of Brexit on the financial services industry in London, saying that Brexit is not a concern for most domestic firms, as they are primarily concerned with UK markets. When discussing the relocation of financial institutions from London to Frankfurt Braddick stated, “I think that first phase of moves is relatively confined. Most firms affected I think they are expecting there will be a second phase and depending on the relationship that we achieve with the European Union and of course our aspiration is a very close relationship on financial services that will determine the scale of that second phase and to me that is currently unknown.” The panel further addressed the challenges of digitalisation from an implementation and regulatory standpoint. This discussion naturally progressed to encompass the demands of recent data protection regulations, like GDPR and PSD2.

The consequences of Brexit for Euro clearing

The Summit continued with a discussion on the future of Euro Clearing after Brexit, beginning with a keynote from Yves Mersch, Member of the Executive Board of the European Central Bank, in which he discussed the potential adaption of legal frameworks regulating Central Counterparties (CCPs) who are located outside of the European Union, stating that  “Ultimately, amending both the European Market Infrastructure Regulation (EMIR) and Article 22 will establish a comprehensive legal framework to address the risks CCPs pose to the Union – both its financial markets and its currency. It will ensure that the EU’s legislators, supervisors and central bank – acting in their respective roles – can adopt the wide range of measures needed to safeguard stability.”

The following panel, moderated by Annette Weisbach, further explored the future supervision of the clearing of euro denominated derivates by CCPs with financial industry experts such as Karin Dohm, Managing Director and Global Head of Government and Regulatory Affairs and Group Structuring at Deutsche Bank, Christoph Hock, Head of Multi-Asset Trading at Union Investment Privatefonds, Erik Tim Müller, Chief Executive Officer at Eurex Clearing AG, Patrick Pearson, Head of Financial Markets Infrastructure and Director General of Financial Stability, Financial Services and Capital Markets Union at the European Commission and Fabrizio Planta, Head of Markets Department at the European Securities and Markets Authority. Diving right into the topic, Eurex’s Erik Tim Müller explained, “Our objective is to talk to the clients and find out what their needs are and the needs that we hear is that today obviously all eggs are essentially all in one basket in London and that seems like a very risky set up given the circumstance. So, what we came up with at Deutsche Börse is a market lead alternative for these market participants to build up a second liquidity pool. […] We came from less than one percent market share 12 months ago to over six percent market share now and rising.”

Giving insights into what is important to asset managers, Union Investment’s Christoph Hock, , highlighted the importance of competition in order to lower transaction costs for the benefit of investors. “You’ve had monopoly structures, take LCH, they’ve had something like […] 95% of interest rate derivatives cleared on LCH and obviously monopoly structures are not beneficial for lowering cost of trading and also when we are looking at innovations, that is completely left aside. […] That’s why we highly appreciate the partnership program Deutsch Börse Eurex offered to the market which caused prices to come down, big offer spreads to tighten. Our assessment is that with this new offering we are able to lower also our cost of trading and in this context our cost of clearing. […] Would we prefer to have a strong second clearing hub here on the continent, i.e. with Eurex? The clear answer is yes,” said Hock.

Artificial Intelligence in the financial industry: a new frontier

The third panel on artificial intelligence in the financial industry began with an impulse speech by Carsten Murl, Head Enterprise Security Solutions Germany at Mastercard, in which he explained how Mastercard is very successfully using artificial intelligence for smart fraud protection throughout their entire stream of transactions addressing various needs. Thereafter, the panel featuring Charles Delingpole, CEO and Founder of ComplyAdvantage, Markus Nigg, COO of ti&m AG, JP Rangaswami, Group Chief Data Officer & Group Head of Innovation at Deutsche Bank AG, Francisco Webber, CEO and Co-Founder of Cortical.io, and Peter J. Wirnsperger, Partner Cyber Risk Services at Deloitte discussed various aspects of data protection and whether artificial intelligence can be understood as the problem or the solution to data security in the financial service industry. During the debate, Deutsche Bank’s JP Rangaswami explored the definition of data safety and the responsibility it brings to companies processing data while highlighting the importance of people feeling secure and empowered by the ability to consent to the usage of private data. Moreover, Deloitte’s Peter J. Wirnspergeremphasised the consequences of data misuse and thus, the importance data protection has, which is something that should be of concern not only to the economy and but society as a whole.

The eighth Frankfurt Finance summit came to an end with closing remarks by Professor Dr. rer. pol. Dr. h.c. Udo Steffens, Chairman of the Executive Board at the Frankfurt Institute for Risk Management and Regulation (FIRM).

Frankfurt Main Finance and the Frankfurt Institute for Risk Management and Regulation would like to thank this year’s sponsors for their generous support. Deutsche Bank was this year’s Gold Partner. Silver Partners included Deloitte, Deutsche Börse Group, DZ Bank, ING-Diba, Mastercard, and Wirtschaftsförderung Frankfurt.

Euro-Clearing after Brexit – Hubertus Väth in BBC Radio 4 Interview

The Economic and Monetary Affairs Committee of the European Parliament just released a statement on the future regulation of Central Counter Parties (CCP). The euro clearing by CCPs is an important part of the financial architecture of the European Union following Brexit. At the moment, the majority of transactions is handled by a London-based company. Currently, it is up for debate whether this will continue to be the case. In an interview with Dominic O’Connell on BBC Radio 4 Hubertus Väth, Managing Director of Frankfurt Main Finance, discusses the recent ECON statement, which is an indicator for how the EU might eventually decide.

While it is not certain what the consequences of Brexit will be for the financial centre London, it can be assumed that euro denominated interest swaps will be under heightened supervision by the European Securities and Markets Authority (ESMA) and the European Central Bank. Second to London Frankfurt is the most important centre for euro clearing and generally, having more than one euro clearing institution is of importance as it allows for more stability in times of a crisis. While a relocation might have some economic impact, research conducted by asset managers found that a relocation promises to be beneficial to pensions.

Listen to the full interview!

Eschborn for Business 2018

Eschborn for Business 2018

The Trend Concept New York and how Start-Ups are Transforming Work Culture

The newest edition of the magazin Eschborn for Business is now available. The annual, English-German magazine puts a spotlight on Eschborn as an emerging modern business location, focuses on the city’s economic growth and uncovers interesting trends in sustainable city development.

The current issue of Eschborn for Business 2018 covers the trending concept “New York” – which allows employers to participate more and work more independently. Find out more about the innovation friendly concept and the key role of start-ups and agile FinTechs on page eight.

“Forget your shirt and tie, it’s time for beer and pizza!” Start-ups, especially FinTechs, known as pioneers of innovation, are shaping work culture at the FrankfurtRhineMine financial hub: “Despite digitalisation, the ‘human factor’ will be more important in business going forward than ever before”, says Helen Hain, CEO MarketDialog Eschborn. Read more about Frankfurts start-up scene and learn some fun facts. For example, did you know for example that 24 percent of the German start-ups have their own footie table in their offices?

Find more interesting reports, interviews and background stories relating to Networks, Business, Infrastructure and Eschborn Activities. Here are some highlights of this year’s edition:

  • “Small but smart. A quality location” – Eschborn has been growing steadily as a business hub over the past 40 years. Learn more about its small but smart profile.
  • “More space. More green. More at ease” – Gertler Estates intends to set new standards at Eschborn Süd.
  • “Eschborn 2030+ Ideas for the future” – Together with the mayor and local businesses, the city is currently working on an ambitious project: a Masterplan for the future of Eschborn.
  • “The Hessian Oscar” – the exemplary achievements of thirty volunteers were honoured by the communal movie theatre Kommunales Kino Eschborn K

Eschborn: top location with high standard of living

Thanks to a combination of relevant business factors, the city of Eschborn, with its population of 21,000, has developed into an international and modern business hub. Ninety-five percent of the over 4,000 local businesses are service providers, primarily in the finance, IT, consultancy, and telecommunication sectors. About 80 high-tech companies have also settled in Eschborn, establishing the city as an important innovation hub in the FrankfurtRhineMain area.

Download the 2018 edition of Eschborn for Business!