GOVERNANCE.IO : FRUSTRATION LEADS TO GREAT IDEAS
Bert Boerman, CEO of Governance.io, describes how meandering around regulations is a thing of the past. Interview.
Can you describe what Governance.io does in a few words?
Governance.io is a technology platform which helps fund managers and banks to deal with regulatory oversight. We make it simple to collect and connect data, documents and controls for very complex investment funds. The company was created because of my own frustrations in dealing with regulatory controls when I was a banker. I decided that there should be a more efficient way to tackle those hurdles and Governance.io was born.
« In the next five years, we want to become a global reference for efficient corporate governance. »
Who do you serve and how do you add value to their value chain?
Our firm initially developed the software with banks in mind - depositories which were dealing with custody for investment funds. We eventually realised that everybody in the industry faces the same regulatory blockers. Our clients and users currently include management companies, banks, fund administrators, independent directors, auditors: anybody involved in control processes. Since 2008, the European asset management industry has had to adapt to some 40 EU directives and countless local regulations, adding to the sector’s complexity. Our added value lies in simplifying that process of legal adjustment. We offer data management and visualisation via a simple interface. Because we compete with spreadsheets, our product is simple and intuitive and responds to each clients’ specific requirements.
Currently, changes like the OECD BEPS guidelines increase pressure on tax structures with regards to transparency. We are therefore also peparing to expand our activity to corporate structures as there are no solutions to tackle the implications brought about by BEPS. The experience we’ve gained within the funds industry can be transferred to corporate vehicles.
Governance.io is currently expanding geographically as well, as we’re about to deploy our software in five different European countries (Ireland, UK, Guernsey, the Netherlands, Poland). In addition to this, there’s also demand for our products from sectors and countries which we haven’t yet targeted. In the next five years, we want to become a global reference for efficient corporate governance, be it in the asset management, insurance, banking, automotive, healthcare or other sectors.
How has Luxembourg helped dynamic companies like yours?
Luxembourg offers a favourable environment in which to launch a start-up, with an ecosystem of actors like Nyuko, who can advise on a variety of entrepreneurial issues – funding, taxation, company structure, etc. On the market side, our initial targets were investment funds: there are over 14,000 (sub)funds based in Luxembourg. It’s therefore a fantastic market when it comes to launching a company in this field. In addition to this, our business activity benefits from great political support. Our Finance Minister, Pierre Gramegna, constantly emphasises the role of FinTech. It can be hard to develop business relationships with established players who have an unjustified fear of disintermediation or who are unwilling to contract with small companies. The Minister plays a huge role in helping players to understand the added value of our activity. By opening support structures including the LHoFT (Luxembourg House of Financial Technology) at the right time, the government is facilitating dialogue between the established financial sector and FinTech companies. This favourable political environment boosts our business.