It's the second day of Temenos' annual conference on the banks of the River Liffey in Dublin. Stay tuned for more on the latest in banking transformation and digital disruption, not to mention the Innovation Jam final.
And that's a wrap folks. Drinks served overlooking the river. Thanks Temenos and community for a really great event.
17.26 Fundamentally the core touches everything, so the challenge is great. Concerns include customer impact, credit risk, payment routing and reconciliation. Strategies include- recent examples aside, ahem- Big Bang; Standalone Greenfield; Progressive Renovation (phased approach)
17.08 Reiterated to the breakout audience are the four new models within open banking as Temenos sees it- manufacturer, platform, full service, distributor. Separating the front from the back office. The heart of the front office is to be able to create the customer view. In summary- the value prop is the single customer view, consistent engagement and tailored conversations, and third party and other API integration.
16.45 Final session time, bringing to you the new front office capability. Dharmesh, not having had enough stage action, takes the reins. This is a step toward a full-blown upgrade and enables banks to take advantage of open banking opportunities.
15.50 Embedded analytics- breakout session- integration of analytics content within business process applications. The goal would be common security, architecture and metadata. It's more than charts but embedding capability descriptive- what happened in past; diagnostoc- why it happened; predictive- when will it happen; and prescriptive- what to do about it.
It is basically an Excel pivot table within the core banking system - giving an overview of all accounts. We are being shown how through a few clicks, all manner of new analytic-based customer content can be brought up within the core banking system and integrated immediately.
This is a system that works around the core, enabling innovation at a faster pace, enabling fast and frictionless changes, instabtly deployable. Can multiple data sources be implemented? Tableau, Jasper, Qlik will be included in due course. To combine Qlikstream with core banking data is possible. UXP browser in the core banking system is needed.
15.15 TCF 2019 to be held in The Hague, 2-4 April.
15.10 CEO David Arnott wraps up the main stage action with a look to 2019, with an impressively succinct definition of Digital to the Core. He reiterates that the best technology in the world won't help anyone if they're not ready for change.
14.50 More Simon Taylor-led audience participation. The crowd here reckons tech giants will become banks- surprising, seeing as a lot has been said to the contrary during presentations and panel debates.. cloud services are in the good books as far as the audience is concerned. And customers should most definitely drive innovation. To free up capital to drive innovation it has to be an end-to-end prospect. It's up to the banks to initiate this.
14.42 Instant payments globally is going to be an important part of our banking future, podcasters discuss. The biggest challenge organisations have is culture, it's not technology. Talking about the creation of an ecosystem.
14.35 Now for some audience participation... Simon Taylor 11:FS is guaging open banking roll out- audience seemingly happy with open banking functionality but unimpressed with the progress of the rollout thus far. It would seem two people are extremely happy re open banking functionality thus far. And everyone is up for truly digital core systems.
14.27 Digital end-to-end- once this is established, customers will expect this more and more, and will want intelligent insights, in the knowledge that their providers should be able to provide this, the podcast panellists are discussing.
14.19 Fintech Insider podcast now being recorded live on stage! Covering the state of digital, changing business models and customer-centric engagement. With chief digital officer Dharmesh Mistry to share his insights.
13.51 Now we why out why we need to upgrade- courtesy of chief client officer at Temenos, Alexa Guenoun, and NDC tech, a Temenos partner. The message is upgrades are a three way piece- provider, partner and client. NDC has been partnering and upgrading for 15+ years. As a case study, State Bank of Pakistan, reasons for upgrade included a move to open standards, product agility and configurability to support business innovation and expansion, going from desktop-based user experience to a browers-based user experience.
13.48 Sonect wins the audience vote of the Temenos Innovation Jam- congrats Sonect!
13.47 Back in the plenary now where the Innovation Jam winner will be announced and we'll have sessions from the chief client officer and 11:FS
13.00 5-10 year outlook?
Friedman: Blockchain, instancy, seamlessness will frame the landscape, in the US and Europe, it will be an open, competitive environment, banks will have learned to partner and buy-out- further integration.
Hope: banks will emulate challenger bank propositions- it will be about niche offerings abnks can create and provide, eg for SMEs
Roller: beyond AI and specific technologies, macrotrends- more competition coupled with tech advances will create perfect storm in which the most innovative in battle will succeed..
12.55 McIntyre says biggest threat is the likes of JP Morgan Chase and Amazon- whitelabelling, rather than the threat of GAFAs getting into banking, the onerous regulatory reporting of which will be enough to keep them at bay. Says Kanika Hope- at regional level it is about the lifestyle add-ons banks can incorporate.
12.49 McIntyre- predicts KYD- Know Your Data processes, maybe even mandates, given perimeters of data liability. technology will facilitate this. And digital rights management for bank data so that any time cust data appears, you can track the provenance and journey of those data. And this could be a question that blockchain answers. In meantime, a full employment act for lawyers.
12.46 Renee Friedman, Economist Intelligence Unit, thinks security will become a three-factor process, in line with increased awareness and incidences of cyberattacks. After Facebook, Wells Fargo, Equifax fiasco, people are more aware and more concerned. GDPR may not impact US but it may not be far behind for the US. We are looking at serious changes in what is required in security, and how open banks are to regtech.
12.43 Commerce's Roller on AI- it is a game-changer but not in short-term, people are the bottleneck- everyone needs to understand how to use it and deal with it after all. The board will hear about one small unfortuante incident such as the crashed self-driving car, and this will be the focus- the one thing that went wrong, and hence, the bottleneck.
12.40 The reality is we don't know how the APIs will be used, we are putting out the lego bricks but we don't know how they'll be used, says Accenture's McIntyre. Google Duplex illustrates the tremendous pace of change in AI. AI will appear across whole value chain but initially cust exp, advice and fraud prevention will be foremost.
12.31 Nr one for COOs also top priority, says Accenture's Alan McIntyre, based on their annual survey. Roller says, core transformations in the US will be the limiting factor. Four views on speed: speed-to-market and speed of decisions- real-time decisions and speed to insight, understanding customer and fraud. These are the things banks should be looking to get out of core transformation.
12.25 Panel Q&A- not surprised- new technologies change the way services are consumed so they have direct impact on nr transactions, customers getting more demanding because they're comparing to other industries and they are moving back and forth between different channels- it's all much more dynamic, says Kanika Hope, Temenos. David Roller, Commerce Bank is still surprised regulation was ranked so highly.
12.19 AI- improving user experience, greater cust engagement, cust fraud detection were the main areas for AI. Most worrying for customers on other hand were security of info, lack of privacy and lack of clarity of how data will be stored, in that order. Convenient, because GDPR addresses all these.
12.17 For 61% banks surveyed, retaining customer base is key. A keen interest in becoming aggregators as well. Digital investment focus is on cybersecurity- 71%. Focusing also in individual delivery capabilities- 54%.
12.15 One of the surprises was cash is not believed to be dead and will still constitute a large part of transactions in 2020. Also the branch is far from being perceived as dead. Platformification- for 78% respondents was v important. Open banking.. nr concerns related to OP- biggest is lack of c suite understanding around opportunitites and risk. Another big one- educating customer on cyber risk and security. Also, the inability of existing IT infrastructure to support open APIs.
12.12 Whose customer are you? Trends in report illustrate up to year 2020 is changing customer behaviour. Fifty eight percent respondents cited this as the biggest trend. For first time resp. cited bigger focus on tech than regulation for first time. New top strategic priority is improving product agility.
12.09 Now to Breakout Stream... Taking the pulse of retail banking, the 5th annual Economist Intelligence Unit global retail banking report.
12.00 And the winner of the Temonos Innovation Jam Expert Panel Vote is... Bellenor! Congrats guys!
11.57 #10 Assurehedge- SME user enters figure they want protection for, quote is offered, price and execute an over the counter product in real time.. the fastest they've onboarded a customer is 7 minutes. Scalable automated API, no counterparty risk.. if currency gains in the meantime then user recieves this.
11.50 #9 Sonect, virtual ATM.. money transfer, reaching point of sales without MasterCard or Visa rails.. reduces cost of cash..
11.43 #8 Cygnetise- blockchain authorised signatory list. Currently a manual, paper-based process, 1% FTE.
11.34 #7 Trezeo - enables gig economy turning uncertain income into a regular paycheque. Uses data and machine learning for mobile-delivered service. Trezeo accesses bank account data and consolidates income, etc, to turn into an aggregated account. Savings account options integrated, useful for tax payments pot.
11.27 #6 Xtremepush- multichannel experience and engagement platform to enable customer centricity to help banks understand better all the different engagement channels and usage. Powered by code so thay everything can be tracked.
10.45 #5 Callsign Kilt Man is back- authentication solution- take multiple real time data points for KYC. Check the device, any malware, the networks to which they are connecting, the location, can identify real location despite what ip says.. behavioural analytics.
10.39 #4 UNIKEN- Authentication solution- security around connecting- replaces passwords and toher credentials, 100% verification transactions on any channel. Security platform- endpoint threat detection- from 16 seconds on enterprie app they do in one second, using machine learning. invisible multifactor authentication psd2 and gdpr compliant. Functions inside the app are 'dark to the internet'. The app opening validation replace any other verification method. Client can log in and conduct a secure transaction- high risk transactions "without a ton of questions". 11 million users.
10.32 #3 Belleron- dealing with unknown crime in fast-changing world- PSD2 open banking aka open innovation threats. They analyse responses and use triggers to feed anomolies into system, creating segments out of meta-data, time-cubed, continuously interpreted to ensure abnormal behaviour is picked up. When a threshold is crossed, a fuse breaks, and a response is initiated. It also tells you how to shut down your channels based on least business impact and to avoid collateral damage and how to report what, how and why it happened. Claims to nip attacks in bud to pre-empt and save potentially millions during an attack. Perfect timing!
10.23 #2 Apiax- Swiss regtech, digital compliance and tax rules. 50,000 new regulations introduced since 2008. Fines to the tune of $321,000,000,000 for non-compliance. Digital rules provided by Apiax' platform through APIs that can be set up in a few days. Continually updated, doing the groundwork for you, as it were. Access to numerous rules for dozens use cases, multiple countires. User's business risk can be applied to the digital tree of regulation- by dragging and dropping. Questions can be asked and answered in real time. Context-aware regulatory answers on complex cases.
10.15 The challenge is on.. no mean feat at 7 mins per demo.
#1 PUSHFOR- push content stays secure by design at source- for banks can control who sees what and how, to minimise risk. One-to-group scenario- the content never resides on the end users device- complying with GDPR (on the very eve of GDPR update). Content can be displayed in different formats. What if user doesn't want to authenticate to log in and what if user wants to communicate via 3rd party? Push to link generates a unique URL that can be emailed. The main gist is full control over content, appeasing the regulator, with flexibility over where it goes. Well done Pushfor- great presentation.
10.06 Innovation Jam time.. but first, two problems were highlighted from a partners survey last year on working with fintechs in the MarketPlace- procurement and selcetion.. it takes too long to figure out how fintechs can help and add value, and too long to onboard them.
09.55 To execute the digital bank, a persona was created in KBC's innovation hub, with cross funtional teams working together to define what the customer wanted and needed, prototypes developed, tested and validated. Net result for the retail consumer is a digital debit card delivered to their phone on accouunt opening.
09.49 Low level of customer switching in Ireland, says KBC Ireland- and also very little differentiation among the main banks. "it's about being seamless and simple- CX + UX = Brand experience. KBC decided to differentiate on three key things- Instant (instant account opening, decisions, digital documentation end-to-end), Accessibility (Always on, mobile first, 24/7 contact centre, web and video chat), Proactive (knowing the right time, right data and right products).
09.45 Specifically now on KBC Ireland, a new digitally-led bank, over 250K customers. Since 2017 a core country base for KBC and a so-called front-runner for digital for the group. It has a physical presence but a very light one- there are 16 hubs,which is enough, along with digtial channels to serve entire customer base, according to Aidan Power, KBC Ireland. He says it is no coincidence that the front-runner for digital is based in Ireland, given its digi-savvy and mobile-centric population.
09.42 Integrated distributon model according to a real time omnichannel approach remains key but the client will change over time, technology development will be the driving force.. Basically, think client- but fine-tune for the digital world. The clients will drive the pace of change. Human interface will still play a crucial role, and simplifiction is a key requisite, says Hueting.
09.35 Willem Hueting, senior general manager, International Markets, KBC, takes the stage. An integrated bank insurer, Hueting tells us KBC's consistent and sustainable aims have resulted in a healthy cost income ratio, by getting rid of the spaghetti legacy. The core strategy remains unchanged, which is very much framed and shaped by the local environment.
09.20 A cheque is presented to Hand in Hand international, Temenos' charity partner, for $10,000
09.16 Now for some Fun Run awards- that took place before the welcome bash.. Mr Green, aka Marc Burlereaux from Itau and Kilt Man, aka Paul Anderson from Callsign are getting shout outs for best-dressed runners! Well done lads
09.05 Welcome back to TCF.. everyone on good form after a fantastic gala dinner last night in which key partners and innovators were recognised and a spectacular performance from Spirit of the Dance..
Congrats Nordea on winning the Chairman's award for its Core Banking Transformation programme.