Blog nbr 400. The benefits of moving faster to a Data-driven Economy are clear. The mission in short: better service, mega-shift in productivity, sustainability through less waste and CO2, fact-based decisions, true single European market, global transparency
and the end of grey economy.
Without banks taking more responsibility and politicians realising how important the sector now is, the road will be long and Europe certainly risks being left behind. Why is this so important? Because banks have so much to bring to the table. To make
the transformation secure and smooth. Attempt to list:
1. Trust. Banks have what all want to have and customers and partners need. More than obvious that this KYC-based good-for-society-at-large resource should be used. But it is not - widely enough. Or banks are to often shunned rather than
invited in. Is this intelligent and fact-based?
2. Customers. Frequently using a wide range of their services > e-habit, e-trust etc. Inter-connecting private, corporate and public sector customers. Personal and e-selling to Mr Same Guy - at home and at work. Trusted by both sides.
3. Services and tools. e-banking, eInvocing, payments, eId, eSignatures, eSalary, cards, trade finance, risk mitigation, currency and equity trading, eFinancing..
4. Massive amounts of My- and BigData. Ready to bring into life events. Potential to become Data Service Providers.
5. Standardization traditions and skills. Banking is all about local, EU and global standardization. So is the data-driven economy.
6. Global networks. Be it payments, trading, trade finance, risk mitigation, cards. eID, eInvoicing and eReceipts going global next.
7. KYC, PSD2, GDPR and other regulation skills. Can be expensive (customers pay every cent) but should be used as an asset.
8. Secure systems. Should be used more widely.
9. Deep algorithm traditions. By necessity in payment, trading and fraud detection systems. Supporting wider use or AI.
10. Blockchain experience. Manyfold more than other sectors counted together.
11. PSD2 model experience - true Pandora's box for open access to data in all sectors. Not only money data...
12. Co-operation with Start-ups. Open banking opening up.
13. Strong competition. Based on standardization and 4-corner models. Without standards, no competition, without competition no progress..
14. Financial muscle.
So - now it is up to the banks to see the big data economy picture. Realize how much value can be created for customers and society at large. It does not need big money - but for sure big thinking - and like in icehockey not going were the puck is - but
where it is going.
And it is of course up to all of us to see how critically important the banking sector is - and invite them to use their pole position - for everybody's benefit.