Having been courted by other nations, MoneyBrain made waves when it moved to Jersey in 2023. The crypto wallet and payment platform provides a secure digital bridge between traditional money and cryptocurrencies. Douglas Kruger sat down with the company’s founder, Lee Birkett, to find out more about MoneyBrain and what had inspired him to move the business to the Island
1. MONEYBRAIN IS YOUR BABY. WHAT WAS THE GENESIS OF THE IDEA?
The emergence of the internet. That was a real turning point when, suddenly, computers started talking to each other. When money started to communicate over the telephone lines, it was transposed from old-school banking and written ledgers to a calculator that could talk to anyone else in the world. That’s how, between 1998 and 1999, MoneyBrain came about.
2. YOUR TAGLINE AND ETHOS TALK ABOUT A FAIRER FINANCIAL SYSTEM FOR THE WORLD. WHAT DOES AN UNFAIR SYSTEM LOOK LIKE?
The mass profiteering of people on the rates that companies charge compared to the service that they deliver. The technology is there now to disintermediate a lot of fat in the system and unfair costs in the system. That is where we believe that everybody with a mobile phone can access better savings products, better payment products and better borrowing products for a better financial system.
3. WHAT WAS THE HARDEST OBSTACLE TO OVERCOME WHEN SETTING UP MONEYBRAIN?
Regulatory barriers and disrupting the status quo. We basically spent ten years in compliance to try and convert from the old into the new. When you are creating something new and innovative, it takes quite a long time for people to get their head round it.
And, equally, it takes a lot of lobbying, a lot of work and a lot of investment in time to get people to understand what you’re doing. Therefore, it’s mainly an education issue. And things that took maybe a year to develop, 20-odd years ago, are being developed in four to eight weeks nowadays, so people really have to be on top of the game at all times.
4. TAKE US BACK TO THE MOMENT THAT YOU MADE THE DECISION TO BRING THE BUSINESS HERE. WHY JERSEY?
I’ve been to other jurisdictions. I’ve been to Malta, I’ve been to Dubai, and I had been courted a number of times, because we are an innovative product embracing new technology. We’re embracing the blockchain. We were really bringing a new financial world to market, which meant we had invitations to go to a number of places. Jersey’s legal system was one of the main catalysts for us to come to the Island.
And, obviously, the communication with, and connections between, the UK are excellent. It’s only an hour away, so that was another main reason for the move.
5. IS THE REALITY OF OPERATING HERE THE SAME AS YOU EXPECTED IT TO BE?
Like everything, there are always learnings. Things are never as simple as you hoped they would be. But I think, on the whole, we can overcome [the challenges].
6. WHAT’S BEEN THE STRANGEST CURVEBALL THE ISLAND HAS THROWN AT YOU?
Hmm, I’d have to narrow it down.
I think one thing that’s really interesting is that we are an established peer-to-peer lending platform in the United Kingdom, and, with the reduction in product availability in Jersey, we are looking forward to rolling out our peopleto-people lending platform, which enables people to lend to each other.
There’s also the interesting dynamic of insurance shortage in the Island. Our technology allows people to access UK products, which is an issue that has been very obvious since I arrived here.
The biggest curveball was actually when I was advised that there was no land registry as such. I think the current biggest curveball may be the lack of development of databases in the Island.
7. HOW IS 2024 LOOKING FOR MONEYBRAIN?
Pending lift-off is probably the best way to describe it.
We are waiting for global regulations to evolve. Obviously, we are heavily involved in Bitcoin, which is having a phenomenal rise now. It has been accepted as a genuine digital asset around the world, so the actual digital asset business that we built is now becoming globally accepted. Jersey’s jurisdiction should be poised to capitalise on that sooner rather than later.
8. WHERE TO FROM HERE FOR MONEYBRAIN?
Other jurisdictions. We are using Jersey as our headquarters, but we will no doubt need to have a presence in Dubai, which we’re currently considering. We already have a presence in Europe and, obviously, the United Kingdom, as well as having offices and a presence in the US. Therefore, it is basically global expansion, with Jersey being the headquarters of the current plan.
9. IF YOU COULD WAVE A MAGIC WAND AND CHANGE ONE THING ON THE LANDSCAPE. WHAT WOULD BE AT THE TOP OF YOUR WISH LIST?
Personally, I’ll say the war in Ukraine and the horrors in Palestine. I think that the impact both personally and for businesses is staggering.
Then, talking from a business perspective, my wish is for more collaboration, as opposed to division.
10. WHAT ARE YOU READING AT THE MOMENT?
Financial regulatory… I’ve permanently got my head in the consultations or training manuals for specific regulatory developments.
But for a bit of light relief, motorsport. I’m a big motorcar fan.
