28 June 2017
Bo Harald

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Bo Harald - ZEF, Transmeri, Real Time Economy Program

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Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

Real Time Economy for EU - Big Picture

15 March 2017  |  5502 views  |  2

Being back from a very inspiring meeting in Brussels it is a good moment to post a few high level observations (going into Why-How-What details separately). 

The RTE is all about automating financial and administrative processes and data management and bringing them into real time (a big value in itself). There are many building blocks - ecosystems supporting each others and being worked on in many member states and on EU-level - picture below..

Why is it so important for Europe? Three main reasons:

1. Huge improvements in productivity (huge direct cost savings, real time financials, lower risks, just taxation etc)  and service levels (real time data and AI driven, automation, lower costs, transparency etc. All important - especially for SMEs.

2. The next step in building the largest Single Market in the world. Digitalisation enables harmonisation and drives standardization. Standardization drives competition, which drives progress. Digitalisation eliminates borders efficiently, as Google and Facebook - but also new start-ups keep demonstrating (especially when the home market is big enough and data is openly available).

3. Better jobs. Automation and robotization have always aimed at eliminating boring (therefore often badly paid) routine tasks. This gives the shrinking workforce opportunities to move into more interesting, purposeful and productive (and thus better paid) jobs. 

Ohter important reasons include lower consumer prices, lower tax pressure, smaller CO2-emissions, shrinking grey economy, better transparency, less financial crime, better corporate profitability, export opportunities, more start-ups - and so on.

All in all - by far the most important thing for EU to promote. 

 

Why - How - What. Big picture TagsMobile & onlineInnovation

Comments: (3)

Dean Procter
Dean Procter - Transinteract - Sydney | 15 March, 2017, 07:57

I like it Bo. I do however have another target, real-time economic sentiment and supply chain management down to a very granular level.

eg. If a PISP could do the payment part in such a way that the anonymizable  data in the transaction, ie. 1 pair of levi's (with or without Price ~$45) sold at locality... was delivered to Levi'sCo in real time they would have insights into supply chain...and agregated data could be delivered to the gov/market similarly for sentiment etc.

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Bo Harald
Bo Harald - ZEF, Transmeri, Real Time Economy Program - Helsinki Region | 15 March, 2017, 08:36

Surely interesting aspects coming our way - supported by the standards and ecosystems. Was told that adding 1 digit to the EAN code would make every bottle of Coke an identifiable individual.. But it would of course be easy to use the coming real time VAT reporting (based on e-invoices and POS receipts) to have daily sales per EAN-code followed - also by region, type of outlet, type of buyer, type of payment method etc etc - and how it correlates with the weather, stock exchange, news flow, elections etc......

 

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Dean Procter
Dean Procter - Transinteract - Sydney | 15 March, 2017, 20:05

I had thought about EAN however many retailers have their own branded products with in-house bar-codes and unless you know a certain EAN is used by George's Fruit & Vegetable Shop for Granny Smith apples, then perhaps the same human readable text we see on our receipt would be a better way to go.

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