Finextra is here in The Hague covering Temenos' annual bash. Stay tuned for live rolling updates on proceedings and the very latest in innovative functionality and streamlined operations.
That brings it to a close. Thank you for a great panel and day. And so to the gala dinner...
18.35 How do you define long-term in terms of business model? Answers from the panel include taking ten-year view on trends, gauging current state and planning for a halfway point; Temenos commit to one-year plans only; two-year steps
18.22 Future Outlook? This being Dharmesh's job, he is asked first. Banks will design their own bank from different partners' building blocks, he answers- they may be a travel bank for example, the ability to configure a bank dynamically will be important.
Zijlstra- decouple the business and be open to the unknown end state. Long term it will always be about the customer financial health and stability at the core. We will likely become part of the growing network and move with the trends- for example the migration of people towards the cities.
18.15 Are banks now using big data properly, asks Mark Gunning from Temenos. "No", answers Judo's Alex Twigg. Banks' systems haven't been agile enough to change and adapt to new datasets.
Mistry adds that payments data is mainly what banks deal with- but what really matters is beyond transaction data to meta-data, and banks typically don't capture or analyse this.
BlueShore, however, is hot on data, scoring potential customers with sophisticated analytics as to the propensity of appetite for their product. Of course, ethical use of data is paramount, adds Zijlstra.
AI should be more anticipatory than reactive, says BlueShore's Fred Cook. What are the conditions that trigger a certain event in their life?
Zijlstra says partnerships are the way to make the most out of new technology. Also, for ABN AMRO, as a big bank, need APIs to decouple and deploy across so many teams and business functions.
Temenos' Dharmesh Mistry says AI is a set of skills to bake into banking.
As in industry we've spent billions of dollars over the last ten years trying to create the best in internet banking, which people aren't actually interested in- they want the outcome, says Alex Twigg.
18.03 Structure is crucial, says ABN AMRO's Zijlstra. It provides the methodology with which you build out on new ideas.
Re Design Thinking, Cook likes to get straight to the crux of the service or product, and has a "laser focus" on their customer, knowing exactly who their customer is.
Design Thinking is a great tool but it has to be mixed with 'Systems Thinking', says Judo Capital's Twigg, to which Zijlstra chimes in with blending lines of business within the bank. She herself was brought across to head up the Technology side of the bank, without a tech-specific background.
17.51 Now for a Panel: The Changing Face of Banking – innovators and challengers
- Fred Cook, Chief Information Officer at BlueShore Financial
- Alex Twigg, Co-Founder at Judo Capital
- Carolina Zijlstra, Head of Technology & Support, IT PB & C&IB, ABN Amro
- Dharmesh Mistry, Chief Digital Officer
Moderator: Mark Gunning, Global Business Solutions, Director
Innovation is about being relevant in the long run, says Carolina Zijlstra. And combining business and Technology.
For Fred Cook, it's about how to partner and how to go to market, with an emphasis on data collection to give insights and segment customer base.
Alex Twigg speaks of services economy, collaborating and co-creating- it's no longer abouut owning entire relationships but driving an ecosystem of partners and whomever to drive new experiences.
Darmesh Mistry says it's all about workshops and communication, getting banks to collaborate on ideas and bring this into the product area- design-led thinking- build the prototypes and see it through to production.
Alexa Guenoun presents the Partner Awards:
Regional Partner of the Year: ITSS
Technology Partner of the Year: AWS
Services Partner of the Year: Cognizant
Jean-Michel Hilsenkopf Chief Revenue Officer and Operating Officer and CEO Max Chuard on stage announcing Best in Banking Awards 2019
Best Visionary Leadership Award: Eddy Tai, Bank of Singapore
Best Digital Front Office: HSBC US
Best Core Banking: CIB Egypt
Best Payments Solution: KBC
Fund Administration Award: BNP Paribas
Best Wealth Solution Awards: Standard Chartered
Best Cloud Innovation Award: Prestanomico
Best Inclusive Bank Award: ARB Apex Bank
16.32 The Bloomberg partnership for asset managers to validate the value form third party administrators. The plug-and-play product will be delivered via the Bloomberg cloud and network.
16.00 We turn to the SME sector. 75% SMEs start their businesses with personal savings; says Steve Scott, Product Manager, Infinity Banking. They have liquidity management needs, onboarding assistance, invoicing functionality, account aggregation, and self service needs. Analytics are key for servicing SMEs. Decisions are based on pooled data capturing information on multiple businesses.
15.47 Kudos to the Product team, back on stage to showcase the Temenos Data Lake- real time AI-driven banking applications. The data is fuelled into the suite of APIs. Data can be blended with that of third parties; real-time data streaming.
What does it mean to embed analytics? "It means higher return on equity and being the best digital bank," says Todd Winship. It means a greater view on your customer, anticipating their needs, and reducing attrition.
15.20 Santosh Thomas, President of Global Growth Markets, Cognizant, outlines a decade of partnership with Temenos, providing end-to-end implementation services, including change management, testing, consulting, migration and data management.
What's all this about the future-ready bank? Having lived through Mainframe, Minicomputer, Distributed PC, Internet.. through to Digital- where technology is the business. Banks are technology businesses with a banking licence.
Reflecting on the retail industry, Thomas emphasises the need to leverage data and create a "fundamental change in culture" to enable transformation. He describes three building blocks of transformation:
- Transform Customer Experience
- Digitise Business Operations
- Digital Technology Foundation- the apps, software, middleware, entire tech stack
13.21 Timely lunch break. RDU also happily head into the break with ambitions for being crowned Bank of the Year.
13.10 Disruption in payments. Non-cash transactions are growing at 13% annually. Expectations have changed, this one-click, two-click, three-click business has put inordinate pressure on banks. Security and speed are not mutually exclusive anymore, says Sujatha Venkatraman, Product Director, Temenos Payments.
ABN AMRO went live with Temenos Payments in 2015, has rolled it out globally and continues to do so. It upgrades every two years. next journey will be ISO 20022.
Standalone option can connect to any core banking solution, whatever your legacy flavour- cloud, on-prem, or hybrid.
13.00 RDU cannot afford to rebuild as they did in the past, it wants out-of-the-box functionality. It wants core banking regeneration to compete with neo-banks, with tech to compete with the big techs. Some prospective numbers pertaining to Temenos Transact: 2x faster; 5x lighter, 10x lower infrastructure costs, and as luck would have it, they have risk covered as well.
12.48 And so to the customer- journey analytics, behavioural anaylytics. Darryl Proctor and Steve Demchuk demo'ing loan application journeys. Data shows device usage, enabling banks to focus and tailor their channel services.
12.25 Alexa Guenon, Chief Client Officer, talks us through the model bank structure- functional contents of which include local clearing, product names, withholding tax, securities, regulatory reporting. The end result is faster go-lives, reduced overall cost, reduction in time-to-migrate, complexity reduction, and reduced risk.
- Executive sponsorship, adopt not adapt, simplification and rationalisation, no core-to-core integration, one-way migration, accelerated time-to-value, ongoing partnership
12.10 Aaron Phetman, Product Director announcing Temenos Continuouus Deployment. Increase revenues by 15-20% due to speed, 20-25% cost reduction due to higher productivity, and 50% fewer failures due to more frequent testing and deployment. Phetman demonstrates how a system problem can be easily shared to get a fast fix.
12.00 The Royal Dutch Unibank (RDU) board meets to discuss digitisation when costs are prohibitive. Cue Temenos Chief Technology Officer speaking about cost and risk reduction stemming from deployment and integration piece.
- Cloud-Native, Cloud-Agnostic, Hybrid, On Premise
Example in payments and clearing- transaction requests hit the container, movements captured and pushed to holdings which then pushes to vendors. This means the execution path is much shortened. A pay-as-you-go model, scaling the service up and down according to demand. Native implementation of micro-services.
Launching a new portal for developer community to access the 712 APIs, across products, fostering creativity over product set. In parallel is the 'Extensibility Framework'.
Coleman presents a graph illustrating the correlation between spend on innovation and customer growth. In coming year, what is yet to come? Lighter, serverless deloyments, further integration with cloud-native services, and faster deployment, start-up times and quicker elasticity (scaling up and down according to demand), more open source platforms too.
11.35 Temenos Chief Product Officer Mark Winterburn takes the stage to intro the product section, which is presented in a role play scenario of a fictitious bank undergoing digital transformation and all this entails.
11.08 What a prospect
10.32 Applications of AI in business, from Cheyer's company Sentient.
FS- loan approvals completed in seconds; trading system that automatically evolves a team optimised for buying, selling, full team already deployed;
Health- genome- multi-mutation correlation detection;
Agriculture- a 'food computer', controlling the soil, humidity, nutrients- the system predicts what experiments to run next. Found that if you have continuous light during a certain period of time, it improves taste and yield;
E-commerce- predicting what aspects of website you need to change, by optimising on the user's clicks, evolves a system that can do 40% better
AI is the next UI- From Windows, Web, Mobile... the next paradigm will be the Assistant. From any device, personalised
10.20 Year 2017 Harvard and MIT researchers worked together on breast cancer- a human doctor augmented by AI could reduce surgeries by 30%. Cost and emotional savings- another development Cheyer says he could never have predicted. Where will that lead? Quotes Ray Kurzweil, based on Moore's Law, by 2029 humans will no longer be the most intelligent entity on the planet. Great
10.13 Adam Cheyer, Founder Siri, Viv Labs and Sentient. 'In the last ten years I have seen things occur that I've never seen in my lifetime.' Remembering IBM Watson playing Jeopardy and being blown away. People say Apple recouped the price of Siri in pre-sales in 24 hours
10.00 Friso Westra, Head of IT Development, Core Banking, ABN AMRO takes the stage speaking about continuous deployment, testing code together and faster at the end of each day- using 22 development pipelines
09.50 Ruby Walia, Head of Digital Banking, HSBC, explains time-to-market was key aspect in opting for Temenos Infinity ; flexibility in front-end to create authentic experiences in line with style guide; connectivity to service providers to serve the customer in the best way. Customer acquisitions have increased four-fold, and the bank has achieved 75% STP. Using Infinity primarily for credit cards, it has enjoyed 4-5x increase in originations, exceeding business plan by 50%.
09.40 For front office- Temenos Infinity, uses ML-based analytics to create personalised engagement and a single customer view in real time. Have combined with onboarding capabilities from Avoca, powered by open APIs.
09.30 Complete packaged functionality including specific local requirements spanning regulation across all sectors. Banks going live in just nine weeks a prouud highlight of the offering. All this functionality is accessible through APIs- also available on Temenos developer portal. With over 700 published APIs to innovate faster, this will be the de facto standard for banking integration, says Chuard, delivering up to ten times infrastructure savings.
09.20 The winning combination of packaged functionality and revolutionary cloud native and agnostic technology is the way forward, bringing flexibility and control, Chuard says.
09.15 Temenos CEO Max Chuard's energetic welcome details diverse competitors, increasing regulation and demand for better experiences, newer technoligies and API ecosystems all create the need to change and move faster. 'Build in the morning and deploy in the afternoon'. The urgency to change has never been greater and and end-to-end solution is crucial.
08.32 Hitting the auditorium for Temenos CEO Max Chuard to open the event, followed by opening keynote from Adam Cheyer, technology and AI aficionado and VP engineering, Siri, no less.