This year FINOVATE in London was full of innovative ideas and products. The topics varied from more traditional ideas like investment management tool, BPM, real time customer on-boarding (including AML, KYC etc), Cloud based identity and transaction authentications
to more exciting ones like Virtual financial Advisory, Financial Gamification, Mobile Wallet, alternate payment and cryptocurrency, crowdsourced P2P lending super market etc.
This gives us a view of where the innovation is happening in FS industry. Few of the trends are very obvious and worth noticing.
Virtual financial Advisor
With the improvement of cognitive intelligence, Machine learning, voice recognition, NLP technologies, banks will look to provide “Next Generation Banking Experience” using those technologies. Machine will be able to contextually interact with you in natural
language using voice and gestures. It can also respond to you based on your spend patterns, banking transactions, retail transactions, and your social habits. It will learn from the user’s actions and is able to predict user action as well as provide timely
There are two distinct areas emerging. Firstly, interactive Advisor (you ask a question and Advisor responds). Secondly, prescriptive or preventive advisor (based on the goals you set Advisor will proactively advise).
For example, Wipro demoed ngGenie™ myAdvisor, which covered broad range of functionalities across branch, call centre, and web, and provides “Omni-channel” experience.
Gamification to improve finance management
There are two distinct areas gamification methods are emerging. Firstly, for personal behaviour and insights to help in product design, marketing and servicing.
Secondly, it will be in social media space, where banks will start to understand behaviour of a group or community and let the community benefit from each other's.
For example, ADVICEGAMES demoed a platform for budgeting and spending. The objective of the game was to encourage people to better budget and therefore be able to pay their mortgage instalments and reducing the risk for the bank.
Mobile Wallet actually vary in type, purpose and the problem it tries to solve.
Mobile wallets are emerging in two areas. Firstly, around traditional payment, where focus will be on the mobile payments user experience, coupled with value added services related to the payment. Secondly, it will be around digital currency based payment
wallets where the focus will be on our ability to pay with bitcoins in any shop through things like multi-currency card.
For example, Fiserv demoed Mobiliti™ platform and showcased:
- Augmented Reality
- Merchant Offers
- Integrated Payments
- Card Management
- Proactive Banking
For example, Revolut demoed a payment platform where bitcoins can be used to bridge the gap between physical and Digital currency.
Cloud based identity and transaction authentication services
This year many solutions were revolving around devise, transaction, identity and process security and frauds. Solutions varied from touch id payment security to multi-channel single sign on, KYC identify check in real time, voice authentication etc.
For example, iSighthis demoed solution which will securely authenticate customers in real time with no customer effort, Expedite time to service and free up more time for revenue generating activities, Improve fraud protection etc
Bank & TELCO Nexus
Bank & TELCO nexus is becoming evident more and more. And both see benefits in partnership to provide extended value added services to customer.
For example, Telenor banka is the first fully mobile online bank in the SEE region, showcased a loan offering when you buy a mobile phone.
Bank the underbank and Unbank society
Huge number of people across the world still don’t have credit history. And this segment can be addressed effectively by building more reliable customer profile based on data from different sources and make then credit worthy.
For example, Aire demoed an alternate credit score platform for people with low or no credit history.
Alternate payment and crypto currency & exchange
Cryprocyrrency like bitcoin and ripple are gaining popularity. Mainly due to its advantage of low transaction fee due to avoidance of intermediaries. While many counties put restriction around its use, it is not big enough to get attention of regulators
across the world. Corporates (NYSE), Innovators and start-ups started to build applications for P2P payments and currency exchanges. We will see convergence of digital and physical currency in near future.
For example, CoinJar demoed a platform for users to buy, sell, send, receive, and spend digital and traditional forms of currency using the blockchain technology that underlies bitcoin. It bridges legacy payment systems and new digital platforms.
For example, AlphaPoint’s exchange platform is leveraged by institutional and retail exchanges globally, powering their digital currency exchanges. The company’s proprietary platform also serves as a digital exchange gateway for organizations looking to
upgrade their existing systems to digital currencies.
P2P lending and Banking services Aggregation platform
Aggregating websites are very popular in other industry (moneysupermarket, gocompare, autotrader, Zoopla etc). We are starting to see aggregation websites for crowdsource lending platforms with participation from banks, also aggregation of bank accounts
to provide single view of accounts and manage household finance better.
For example, UP demoed a centralised access point to the entire UK crowdfunding market, and includes deals originated by traditional finance providers.
For example, C24 demoed a multi-channel platform that allows end users to connect their accounts with different banks, so that their household financial standing is visible and manageable.
Interactive flat screen for Cx, advisory and selling
As we move towards a IoT drive economy, boundaries between physical and digital world are blurring. We are beginning to see Smart advertising or display boards to drive advisory, upsell, cross-sell. This area has potential to grow once wallet, digital currency
and real time payments mature further.
For example, mBank & i3D developed a digital branch with interactive, “art exhibition” experience using the best technology available – gigantic multi-touch screen, motion-sensing, and face recognition.