Former Credit Suisse and VP bank executive Eduard von Kymmel wants to use a digital platform to upgrade corporate governance at funds.
Tighter corporate governance regulations in the financial sector are also impacting the fund management business. In the past, many independent board members were chosen based on personal relationships, but this is no longer as easy. The selection process is now more stringent and candidates have to show higher levels of expertise.
Finding such board members, even interim managers, has become more difficult as well, says Eduard von Kymmel in a conversation with finews.com.
Search and Matchmaking Tool
He knows what he is talking about. Until last March, he had spent six years heading VP Fund Solutions, the international fund competence center of Liechtenstein's VP Bank Group. Before that, the Frankfurter, who lives in Luxembourg, worked for more than 13 years at Credit Suisse.
Although he continues to hold various mandates at both banks, he used his newfound independence to establish «id Linked». Although the name is clearly a play on social business network LinkedIn, there have been no apparent trademark or copyright issues in using it.
Through id Linked, von Kymmel launched, «id Ship», a digital platform that is a search and match-making tool connecting industry experts with financial institutions looking for adequate candidates.
Appreciated by Women
Von Kymmel is trying to disrupt a business model in which appointments are mostly made through «good old boy networks». Given the need to ensure non-executive board members are really independent, the platform could, in hindsight, very well turn out to be pioneering.
Initial indications seem positive since he switched the platform on a month ago. He had hoped to start with about 40 members offering their services as independent board members but he already has 70, with that number set to increase. Around a quarter of them are women who seem to particularly appreciate the methodical search and match-making process, as von Kymmel emphasizes.
Fee and Commission Model
On the other side, around a dozen or so companies have registered interest in using the digital platform to find the expertise they need, according to von Kymmel. He is in talks with a number of them, including a few U.S. institutes with a presence in Europe. His business model is based on fees and commissions should any final agreement be struck although registering on the platform as an individual is free.
«id Ship's service adds value to modern corporate governance practice. It is very easy to register. It is self-explanatory and it doesn't cost anything for members offering their services,», says Swiss finance expert Alfred Moeckli, founder of Moeckli Finance and Management, who offers his services on id-Ship's platform.
Swiss Entry Planned
The platform has been focused in the three fund hubs of Luxembourg, Dublin and Liechtenstein. But in order to scale up the business profitably through commissions and fees, he needs to bring more countries on board. Against this background, it is not a big surprise that he is planning to enter the Swiss market soon.
He is already talking to a few banks and a number of experts and it is likely just a question of time before his platform also covers Switzerland.
Strengthening Corporate Governance
Von Kymmel clearly believes that upgrading the search process digitally will strengthen corporate governance, particularly in relation to sustainability, transparency, and even innovation. In the medium term, he wants to include young entrepreneurs in legal and consulting and public institutions with his match-making platform.
