FinTech Magazine – July 2019

Driving the technology transformations of finance giants www.fintechmagazine.com

JULY 2019

TURNING RISK TO REWARD

Future proof digital transformation The bank’s first ever Chief Information Security Officer on cutting-edge tech and relationship building

TOP 10

most secure financial institutions

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E z

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FOREWORD

W

elcome to the July issue of international giant hoping to gain FinTech Magazine! a footprint in Indonesia.

As technology evolves, so do threats Elsewhere, Avaya’s UK Managing to the finance sector. In our lead Director for the UK and Ireland, feature this month, Canadian Western Ioan MacRae, discusses how the Bank (CWB Financial Group)’s Chief technology solutions provider powers Information Security Officer the digital transformations of Cory Gould discusses how finance giants – and says the bank uses cuttingchange doesn’t have edge technology to to happen all at once. combat threats and “My advice to any big foster growth. financial institution is “20 years ago, we to have conversations Cory Gould, CISO, Canadian Western Bank were concerned with with your vendors and things like debit skimming… partners, understand what we’ve seen a significant rise in can be done today relatively the levels of organisation, structure quickly and easily, as well as looking and sophistication of these threats,” at the long-term plan,” he comments. comments Gould.

Don’t forget to check out our We also sat down with Marsh other exclusive reports on United Indonesia’s new CEO, Douglas Ure, Cooperative Assurance, Barclays following the global insurer’s Bank Mauritius and Cashco Financial. acquisition of JLT. Marsh aims to Enjoy the issue! help businesses survive and thrive, Olivia Minnock whether they are an Indonesian olivia.minnock@bizclikmedia.com company looking to expand or an

w w w.f i nte c hma ga z i n e. com

03

Driving insurers

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CONTENTS

12

32 AVAYA

EMBRACING THE ART OF THE POSSIBLE J U LY 2 0 1 9

42

50

58

68 Top 10

most secure financial institutions

84 The biggest industry Events

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1

3 2

4

5

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138

United Cooperative Assurance

88 Cashco Financial

152

102 Marsh

116

Sun Life Financial

Barclays Bank Mauritius

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12

Future proof

digital transformation security for the enterprise WRITTEN BY

HARRY MENEAR PRODUCED BY

JAKE MEGEARY

J U LY 2 0 1 9

13

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CANADIAN WESTERN BANK

14

Cory Gould, the first CISO at Canadian Western Bank FInancial Group, discusses using cutting-edge technology, relationship building and user awareness to combat cyberthreats and help realize the company’s bold vision

T

he world is evolving. The proliferation of digital devices, mass migration to the cloud,

and a rising tide of data is changing the nature of the enterprise. In few verticals is this truer than the banking and finance sector. Bank vaults piled high with paper money are being replaced by digital vaults, in-person meetings at a local branch are giving way to 24/7 mobile banking solutions, and major banking houses are facing serious competition from a new generation

J U LY 2 0 1 9

15

of digital-only ‘challenger banks’. Digital

“We appreciate that this is the new

transformation means new opportuni-

world; things are changing and they’re

ties, greater efficiency and insight into

changing very, very quickly,” says

the business ecosystem, but every

Cory Gould, Chief Information Security

paradigm shift brings new challenges.

Officer (CISO) at Canadian Western

According to the Ninth Annual Cost

Bank (CWB) Financial Group. “20 years

of Cybercrime Study, released in

ago, we were concerned with things

March 2019 by Accenture, the methods,

like debit skimming - manual, tactical

targets and impact of cyber attacks

ways of committing fraud. Now, the

is evolving at an accelerated pace.

proliferation of digitization and the

In 2018, the report found, the average

sheer accessibility of financial services

cost of cybercrime to companies rose

remotely and somewhat anonymously

by 12% year on year to US$13mn.

is certainly driving the rise of cybercrime. w w w.f i nte c hma ga z i n e. com

CANADIAN WESTERN BANK

We’ve seen a significant rise in the

started at CWB Financial Group in 1997,

levels of organization, structure and

and became the first CISO in the

sophistication of these threats.”

bank’s history in December 2018.

One of the youngest banks in

“The financial industry has been fairly

Canada, CWB Financial Group is

static for a century. Over the last 15

headquartered in Edmonton, Alberta

years, however, we’ve seen a real shift

and positions itself as the top choice

in the demands of our clients. Traditional

for Canadian enterprises in search

banking isn’t fitting the bill anymore,”

of expert advice delivered through

he explains.” We sat down with him to

a relationship-based approach. “Our

explore the approach Gould is taking

size provides us with a level of agility

towards neutralizing cyber threats to

that is allowing us to respond to change

CWB Financial Group as it continues

in the industry,” says Gould, who

to grow at an industry-leading rate

16

J U LY 2 0 1 9

CLICK TO WATCH : ‘CWB – OBSESSED WITH YOUR SUCCESS’ 17 (recently surpassing the $30bn total asset milestone for the first time) alongside the global digital banking revolution.

“We’re on the cusp of something really special,” enthuses Gould.

“Increasingly, we’re being recognized for the value that we bring to our clients.” As the first CISO in CWB’s history, Gould is part of a bold and innovative shift in the bank’s own culture. A crucial success factor, he explains, is establishing an enterprise architecture in which security methodology is embedded at the initial stage.

“ We’ve seen a significant rise in the levels of organization, structure and sophistication of these threats” — Cory Gould, CISO, Canadian Western Bank

“It’s a really big win and, I think, critical w w w.f i nte c hma ga z i n e. com

CANADIAN WESTERN BANK

20 for an organization as they move forward,” says Gould, admitting that

proactive with respect to security.”

This closer, more collaborative

CWB Financial Group had experienced

relationship with the enterprise and

challenges maintaining strong relation-

technology side of CWB Financial

ships between security and leadership

Group is also driving a shift in the

before, “because we didn’t have a senior

philosophy of the security side of

dedicated role for information security.

the business. The traditional role of

It’s 2019. Nobody is going to deny the

a security division as a deterrent,

need for security, but it’s very easy for

Gould explains, simply isn’t the best

security to take a backseat in the wake

way forward in the modern world.

of rapid change. Now, we have a senior

“Gone are the days when security just

security leader out in the organization,

pounds its fist on the desk and says

pounding the pavement and building

‘No! Come back later.’ That’s not

relationships with key decision makers,

practical in the digital world we live in.”

positioning us to be much more

The rapid advancement of technology

J U LY 2 0 1 9

is at the center of CWB’s progress, and Gould’s mantra of “enable not deter” reflects it. Technology, he contends, may be creating both business and cybercriminal opportunity, but it is also enabling and empowering security. Stronger relationships between the security and business elements of CWB Financial Group is at the core of this.

“Our ability to sit at the table with the business, talk through their needs and challenges, and offer up technology solutions we know are inherently secure, brings to them functionality

E XE CU T I VE PRO FI LE

Cory Gould Chief Information Security Officer Cory Gould is the Chief Information Security Officer at CWB Financial Group, a diversified organization providing specialized business and retail financial services across Canada. Mr. Gould has over 20 years experience in Information Technology and Security primarily within the Financial industry and as the first CISO at CWB Financial Group, is working to mature the Information Security practice by embedding sound security awareness and behaviours within the culture of the organization.

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21

CANADIAN WESTERN BANK

22

“ Our size provides us with a level of agility that is allowing us to respond to change in the industry” — Cory Gould, CISO, Canadian Western Bank

J U LY 2 0 1 9

23

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25

and capability they’ve never had

machine learning. “One of the key

before,” Gould explains.

things to enable is machine learning.

Rapid and ongoing digital transfor-

We are absolutely neck deep in data

mation has become the day to day

and analytics like everyone else on

reality for any enterprise seeking to

the planet. The more dependent we,

stay abreast of the information

as an organization, become on our data

revolution. Gould recognizes the power

and knowledge, the more it becomes

of employing technology to automate

currency. So, we’re using it within our

day to day operations in an institution,

information security program to gain

as well as process data to generate the

intel and understanding,” Gould explains.

kind of insights that lead to high-level

In addition to boosting the detection

decisioning. The key to both applica-

and insight gathering capabilities of

tions is artificial intelligence (AI) and

CWB’s security department, AI and ML w w w.f i nte c hma ga z i n e. com

CANADIAN WESTERN BANK

is set to play a key role in automation.

“Like any other position in IT, there are the necessary evils of day-to-day operational activities,” Gould notes.

“With those ongoing, almost mundane tasks that we have to perform, there is the risk of human error. Any time that you can remove that day-to-day work that just needs to be done from very capable resources and have them focus on the big picture, it’s valuable.”

Striving for a near-perfect security architecture is no mean feat, and Gould recognizes that CWB Financial Group 26

cannot stand against the rising tide of cybercrime alone. “We rely on strong partners who have a genuine interest in our success; FireEye is one of those partners. FireEye sees the world of Cyber Security through the eyes of active threat actors. It is this relevant, real world experience that is assisting CWB Financial Group in meeting our Cyber Security objectives,” he explains.

Every year, driven by experience, artificial intelligence and increasingly sophisticated software, cybersecurity solutions reach closer and closer to infallibility. “With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot J U LY 2 0 1 9

27

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CANADIAN WESTERN BANK

“ With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot that can be prevented” — Cory Gould, CISO, Canadian Western Bank

28

J U LY 2 0 1 9

that can be prevented.” However, as technology grows more sophisticated, the most common vulnerability for an organization grows more obvious: the human element. According to Accenture’s report, “Whether by accident or intent, many employees are often the root cause of successful cyberattacks.”

While security systems and protocols can be updated and tweaked on a daily basis, Gould points out: “You can’t patch humans. Humans are vulnerable, passionate and intellectual; they don’t

think in terms of bits and bytes and

We spend a lot of time with the organi-

ones and zeros, so people make

zation educating, bringing about greater

mistakes and we recognize that.” In

awareness. We know that we will never

order to shore up this potential weak

be 100% in that area but will continue

point, Gould is turning to the flagship

working with the business and our

skill in his arsenal: relationship building

internal clients to keep security at the

and management. “It wasn’t until one of

forefront of the way CWB Financial

our more recent and most significant

Group operates.”

initiatives that we really recognized how

The threat of cybercrime is only

important change management is,” he

expected to rise, and the constant arms

recalls. “Now, one of the most critical

race of technology, training and

tools in our security toolkit is our User

relationship building shows no signs

Awareness Program.

of slowing down. Looking to the future, 29

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CANADIAN WESTERN BANK

30

J U LY 2 0 1 9

Gould has the responsibility of ensuring that CWB Financial Group remains agile and responsive, even as it continues to scale. With phishing and ransomware replacing cheque fraud and men with guns in balaclavas, Gould and his team are on the front line, protecting CWB Financial Group as it strives towards greatness. Reflecting on over 20 years at the bank, Gould looks ahead filled with confidence and optimism. “As an organization, we pride ourselves on listening intently and asking the right questions to provide our clients with the right financial solutions. We are obsessed with our clients’ success and our proactive approach to supporting them, and we are obsessed with ensuring that the information they entrust us with remains confidential and secured,” he says. “It’s a bold vision but I think it’s achievable. I’ve spent my career here and I can honestly say that when this group of great individuals puts its mind to something, there’s little that gets in the way.”

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31

LEADERSHIP

AVAYA 32

EMBRACING THE ART OF THE POSSIBLE FOR TODAY’S BIG BANKS, TECHNOLOGY TRANSFORMATION IS A MUST. IOAN MACRAE, UK & IRELAND MANAGING DIRECTOR FOR TECHNOLOGY SOLUTIONS PROVIDER AVAYA, SAYS IT DOESN’T HAVE TO HAPPEN ALL AT ONCE WRITTEN BY

J U LY 2 0 1 9

OLIVIA MINNOCK

33

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LEADERSHIP

N

ow more than ever, it’s vital for businesses to provide a high quality, tailored customer experience driven by technology.

This is especially true for the finance space, as the rise of fintechs and challenger banks focuses on meeting consumer expectations; those large financial institutions which do not keep up risk being left in the dust.

34

Avaya, a leading provider of tech solution to global clients, has studied recent changes in customer experience expectations to ensure it is best placed to help the companies it partners with grow through ‘experiences that matter’.

Ioan MacRae, Managing Director UK and Ireland at Avaya, has been involved in the tech industry for around two decades, having held roles at Cisco and Nortel prior to joining Avaya. He took his current position in 2012, having gained international experience in the Middle East, and relishes his role to this day.

“The culture is brilliant. I’ve got a fantastic team,” he enthuses. “We have large team of about 360 people in the UK and in Ireland you can double that with our R&D centre J U LY 2 0 1 9

“ IT DOESN’T NEED TO BE DONE OVERNIGHT. IT’S NOT ONE BIG BANG” Ioan MacRae Managing Director, UK & Ireland, Avaya

in Galway. All that can only be in play when you’ve got great technology as well,” he adds.

35

The UK and Ireland is Avaya’s second largest region after the USA, and over the past few years the company has experienced positive financial growth.

“We’ve delivered and exceeded plans,” says MacRae. Through partnerships with BT, Vodafone, Virgin Media and the like, it’s probable most consumers in the UK have interacted with Avaya solutions, even if they haven’t realised – but Avaya has certainly noticed the consumers. Indeed, it has recently released its latest consumer survey which found that machine learning technologies are being embraced with gusto globally, and the UK is no w w w.f i nte c hma ga z i n e. com

LEADERSHIP

exception. 51% of UK consumers prefer to have questions answered by an AI chatbot while shopping online or using an app, with 32% going as far to say they prefer this to human engagement.

“It’s a very changing environment at the moment,” MacRae comments.

“Like any R&D organisation we never stand still; we’re constantly developing to meet the demands and challengers of customers.” As such, Avaya is wellplaced to look at how customers have evolved, and MacRae says it’s impor36

tant to understand that just as banks and other corporations are at different stages of the technology journey, so are consumers. “If you look back

fingertips, MacRae stresses the im-

10-15 years ago, we were quite happy

portance of choice to keep customers

going into our local bank and issu-

comfortable with their finance needs.

ing cheques. 10 years ago, telephone

“There are times when people do want

and internet banking were both fairly

to pop into a branch or speak to a hu-

modern, then seven or eight years ago

man,” he explains. “The idea is that

came the common adoption of smart-

you give the customer the option but

phone technology. Five years ago,

consistent service comes through.” He

apps became more commonplace and

cites his own family as an example: two

so you can see new demands on any

sons, 17 and 20, MacRae himself and

financial institution, especially in retail

his parents, in their late 70s, all use the

banking, where technology adoption

same bank. “The way my children will

among consumers is so rapid.”

do self-service compared to me and

Despite all the technology at our J U LY 2 0 1 9

my parents is totally different. We’re

“ THERE ARE TIMES WHEN PEOPLE DO WANT TO POP INTO A BRANCH OR SPEAK TO A HUMAN” Ioan MacRae Managing Director, UK & Ireland, Avaya

by an agent, but I want the agent to know what I’ve been calling about.

I don’t want to have to tell them the journey I’ve been through,” MacRae explains. “The adoption is there, but in varying degrees.”

Based on his company’s extensive research into the UK’s financial technology scene, there were some aspects MacRae didn’t expect despite his extensive experience on both sides of tech. “What surprised me is how much people are willing to adopt technology from smart speakers to chatbots worldwide. People’s knowledge was higher than I thought on a global

all in different parts of our life in terms

basis, and their willingness to have it

of mortgages and debt, but trying to

as part of their customer journey was

serve three generations via traditional

a pleasant surprise with it.” MacRae

methods as well as more complex

also points out how technology has

methods is very challenging.”

permeated every area of business – for

As an increasing number of banks

example, chatbots need to be connect-

turn to AI and chatbots, as well as voice

ed to the marketing department to offer

biometrics for identification, this is like-

appropriate responses. “IT, security,

ly to form part of the consumer journey

marketing… all different departments

as opposed to replacing it.

need to be part of this digital transfor-

A customer might use a chatbot to get

mation.”

to the right place but will still want to

Equipped with this knowledge that

speak to a human. “At that point, I still

change is influencing businesses and

want my call answered immediately

demanded by consumers, every finanw w w.f i nte c hma ga z i n e. com

37

LEADERSHIP

38

cial institution worth its salt is on a digi-

Often, that customer experience is the

tal transformation journey, but MacRae

place to start when developing digital

advises it doesn’t need to happen all

strategies in banking.

at once and Avaya can guide organisa-

“It’s a big conversation, a big journey,

tions through each stage. “It’s not just

and it won’t stop,” MacRae adds. “They’ll

about understanding what’s out there

do each piece at a time, but technology

and the art of the possible, but it’s also

is being adopted and altered so quickly

about ensuring we understand our

– my sons for example will be demand-

customers exceedingly well. Where

ing different experiences in the next

are they? What technology have they

five to 10 years than I ever will, and

got today? What is the customer ex-

most certainly more than my parents.”

perience they’re offering currently and

The solution does not have to lie in

what would they like to be offering?”

building stacks of technology in-house,

J U LY 2 0 1 9

“ IT’S ABOUT UNDERSTANDING WHAT’S OUT THERE AND THE ART OF THE POSSIBLE, BUT IT’S ALSO ABOUT ENSURING WE UNDERSTAND OUR CUSTOMERS” Ioan MacRae Managing Director, UK & Ireland, Avaya

39

however, and MacRae actively encour-

relatively quickly and easily to start

ages large organisations to partner

the journey of transforming customer

with technology companies: whether

experience, as well as looking at the

it’s an experienced industry advisor

long-term plan. You might have voice

like Avaya or a new, more niche fintech.

only contact centres, followed by in-

“It sounds easy to improve customer

troducing email next month and then

experience, but it’s a huge undertak-

web chat. A conversation is free, so

ing for these big organisations, and it

embrace your vendors.”

doesn’t need to be done overnight. It’s not one big bang. My advice to any big financial institution is to have conversations with your vendors and partners, understand what can be done today w w w.f i nte c hma ga z i n e. com

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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T E C H N O L O G Y T R A N S F O R M AT I O N

42

ELI ROSNER, CHIEF PRODUCT AND TECHNOLOGY OFFICER AT FINASTRA, EXPLAINS WHAT BANKS MUST DO TO KEEP UP WITH THE BLISTERING PACE OF TECHNOLOGY TRANSFORMATION WRITTEN BY

J U LY 2 0 1 9

ELI ROSNER

43

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T E C H N O L O G Y T R A N S F O R M AT I O N

“ FINTECHS ARE FIRST AND FOREMOST TECHNOLOGY SPECIALISTS” — Eli Rosner Chief Product and Technology Officer, Finastra

44

W

hen arriving at a crucial mo-

ber of BigTechs and fintechs. Using

ment, the analogy of a cross-

new technologies and programming

roads is often employed. The

languages, and working with more

implication is that a decision

modular architectures, these firms can

must be made, a path decided upon.

develop new products and services

Today, organisations are becoming

that meet the needs of the banks’ cus-

ever more used to these moments.

tomers with ease.

Emerging technologies and the pres-

If incumbents are to level the playing

ence of disruptors in all industries

field and compete in the digital age,

means firms must adapt or be left

they must seek to overcome the chal-

behind. In the world of banking, incum-

lenges that prevent them from deliver-

bents must now contend with challeng-

ing value at pace. Here’s three key tips

er banks and an ever-growing num-

for getting ahead of the game:

J U LY 2 0 1 9

45

CULTURE CHANGE

with business staff operating separately

The first thing any bank must do to

from the technology experts. This

increase innovation is to acknowledge

system means there is a significant dis-

the challenge and implement a digi-

connect between business objectives

tal-first culture. By establishing a ‘big

and innovation. Take, for example, the

picture’ that shows how digital trans-

broad business objective of improv-

formation aligns with business goals,

ing customer engagement through

buy-in from the board can be achieved.

digital assets. In the past, when a lack

But in order to establish a new mindset,

of competition from challenger banks

legacy structures and practices must

and fintechs meant banks could take

be addressed.

their existing customers for granted,

Traditional culture within banks

the need to improve customer experi-

organizes teams into functional silos,

ence was not so pressing. If, for examw w w.f i nte c hma ga z i n e. com

T E C H N O L O G Y T R A N S F O R M AT I O N

ple, customer feedback indicated that

customer-centric approach – and to-

web services needed improvement,

day’s customer demands innovation.

this area would likely become the next job for developers, but there would be

OVERCOMING LEGACY SYSTEMS

no immediate call to innovate. Banks

Legacy core banking systems at the

were of a mindset that focused on

heart of banks’ IT infrastructures are

customer acquisition, which they

responsible for stifling innovation.

achieved through existing proprietary

Built and gradually updated using now

offerings, rather than retention.

outdated technologies and languages,

Today, increased competition has

46

these cumbersome monoliths are

altered the landscape. Banks now

made up of hundreds of intercon-

recognise that they must adopt a more

nected applications. The result of this

“ BANKS NOW RECOGNISE THAT THEY MUST ADOPT A MORE CUSTOMERCENTRIC APPROACH – AND TODAY’S CUSTOMER DEMANDS INNOVATION” — Eli Rosner Chief Product and Technology Officer, Finastra

J U LY 2 0 1 9

CLICK TO WATCH : ‘OPEN FOR INNOVATION, COLLABORATION AND BANKING WITH UNLIMITED POTENTIAL’

is that the majority of an in-house full

be broken down into three areas:

stack developer’s time is taken up

• Systems of record

with maintenance of these systems –

These are the back-office core

not building new applications for the

systems. Software here is typically

customer facing environment. Digital

developed using a linear, or ‘waterfall’

transformation is a must to overcome

approach. It’s OK, as well as neces-

the problem of legacy, but for banks

sary, for developments and changes

this process must be a gradual evolu-

to these systems to move at a slower

tion. Ripping and replacing these

speed.

systems, many of which are mission

• Systems of differentiation

critical, is not an option.

These include decision-making, pric-

Consider the main systems a bank

ing, analytics and risk management

needs to operate effectively. They can

tools in the middle office. These will w w w.f i nte c hma ga z i n e. com

47

T E C H N O L O G Y T R A N S F O R M AT I O N

need updating more often to accommodate changing business practices or customer requirements.

• Systems of innovation These are the customer facing apps and must be updated frequently.

It’s here where banks are struggling to innovate, and where they are most at risk of losing out to competitors.

It’s clear that legacy structures will require legacy development practices, but when it comes to innovation, banks must look beyond their own 48

systems and workforce to operate with greater agility.

EMPOWERING DEVELOPERS To deliver the products and services demanded by their digital-first custom-

and engaging with the latest software

ers, and achieve digital transformation

development tools and practices, and

themselves, banks must empower their

are eager to have their technologies

developers, as well as collaborating

leveraged by financial institutions.

with more agile technology specialists

Cloud-based open development

to overcome their infrastructure chal-

platforms that focus on providing ac-

lenges. Fintechs may form a significant

cess to banks’ core systems via open

part of the competition in many of the

APIs are the most effective means of

markets banks traditionally owned, but

enabling this collaboration. These plat-

they should not be viewed solely as

forms offer a safe and secure environ-

poachers. Fintechs are first and fore-

ment in which agile third parties can

most technology specialists, operating

build, test and run applications, without

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“ A PLATFORM-BASED APPROACH ALSO GIVES IN-HOUSE DEVELOPMENT TEAMS THE FREEDOM TO BUILD, TEST AND RUN NEW APPLICATIONS” — Eli Rosner Chief Product and Technology Officer, Finastra

risk to the banks’ core systems. It’s a

tems will be evolved slowly, while new

win-win scenario that allows banks to

applications created via platforms will

tap into the wealth of innovation going

reach the customer-facing environment

on outside of their walls. Further to this,

at pace. Once a culture is in place to

a platform-based approach also gives

support this strategy, banks will achieve

in-house development teams the free-

the agility needed to compete in the

dom to build, test and run new applica-

modern financial services landscape.

tions in the same, risk-free environment.

Innovation at banks that adopt this collaborative approach will consequently move on two different tracks, at very different speeds. Internally, core sysw w w.f i nte c hma ga z i n e. com

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M O B I L E PAY M E N T S

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TENCENT’S EVOLUTION INTO THE PAYMENT INDUSTRY Tencent’s understanding of its wide customer base has allowed its successful transformation into the payment market, changing the ways in which transactions are carried out in Asia forever WRITTEN BY

A MBER DONOVAN-S TE VENS

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51

M O B I L E PAY M E N T S

T

he multi-conglomerate Tencent

mobile phone age.� This sparked the

has moved across industries

creation of WeChat in 2011.

since its creation in 1998.

In 2013, WeChat Pay was launched

Originally a platform that created

and the company moved into the

online multiplayer games such as

finance space with the creation of

League of Legends, it moved into the

WeBank (China) two years later in

instant messenger service, QQ.

2015, before beginning to expand

According to the Senior Product

overseas to Hong Kong and the

Director of Tencent, Wendy Sun, who

Malaysian markets in 2013, 2016 and

spoke at Money 20/20 2019, Tencent

2018, as Tencent began to establish

wished to adapt alongside its custom-

itself as a key player in the financial

ers, who “changed from the PC to the

payments industry.

52

J U LY 2 0 1 9

Sun shared one innovation that has

enables almost all aspects of the

had a great influence with the launch of

average Chinese person’s life. “As well

the payment app. “In 2014, Tencent’s

as connecting people with each other,

WeChat fundamentally changed the

WeChat Pay also connects people with

game, by allowing you to send the

services.” If an individual leaves the

digital red packet to your friends or to

house with their phone, then they do

your chat group. Traditionally, the

not have the need for money or a

hóngbāo, the Red Packet was only

wallet, as WeChat Pay enables them to

given between family and friends for

shop without these items. WeChat Pay

good luck during the Chinese New

is now the most popular payment

Year period.”

network in China, with over 1bn users.

Sun explained that WeChat Pay

“This total mobile internet solution

53

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M O B I L E PAY M E N T S

brings the convenience to people’s lives.”

Tencent also expanded their financial technology to offer the “boutique” wealth management, lending and insurance service, Licaitong. According to Sun, as of September 2018, “Licaitong became the second largest online wealth management platform in China with more than ¥500bn in aggregated customer assets.”

WeChat Pay has not only had a 54

strong domestic impact, but has also cultivated an ease of service for Chinese users internationally. Sun noted that, in 2018, Chinese tourists made up 149mn trips, a 14.7% increase from the previous year. When Chinese tourists travel abroad, they can use WeChat to complete transactions with Tencent organising the currency exchange through the app. Tencent also has a program embedded in the app for tax refunds. This includes refunds in real time at 83 airports in 20 countries.

Further innovation has allowed the company to improve the lives of its users. “Tencent is passionate about J U LY 2 0 1 9

“ As well as connecting people with each other, WeChat Pay also connects people with services” — Wendy Sun, Senior Product Director, Tencent

improving people’s quality of life through technology,” said Sun, going on to discuss We Return, Tencent’s product designed to assist in the smooth transactions of several thousand domestic helpers who work in Hong Kong, but who are originally from the Philippines and Indonesia.

She emphasised that these helpers work 6 days a week, and will spend three hours queuing in central Hong Kong to send money home just to settle remittance.

“At Tencent, we launched the ‘We Remit’ through our WeChat Pay Hong Kong Wallet. We give all the helpers a hassle free, real time remittance service. Just from a simple click, all the helpers can send the money to their distant relatives, instantly.”

Tencent’s expansion is constant, but adapts its services to suit each region.

In South East Asia, Tencent got its e-money license, from Central Bank of Malaysia in 2017. In South East Asia, Tencent received its e-money license from the Central Bank of Malaysia in 2017, and has since grown its customer base in the region to over 20mn registered users. A similar product to w w w.f i nte c hma ga z i n e. com

55

M O B I L E PAY M E N T S

“ Tencent is passionate about improving people’s quality of life through technology” — Wendy Sun, Senior Product Director, Tencent

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the red packet was released in the region, only to suit Malaysia’s local festivals. “More than that, we also help the Malaysian local merchants use our platform to engage customers through the whole WeChat ecosystem,” said Sun. To understand Tencent’s commitment to creating a beneficial product to its user base, Sun shared the three questions that the company asks itself when developing a new product. “What kind of product do we need to provide the customer? What value can we add to the service we provide to our customers, and what is actual difference we can bring to the market?”

“Tencent’s strategy is to connect everything. From the beginning we connect people with each other and then create the ecosystem. We want to connect the customer with the services. The key is to understand your customer to enable them to receive real value-added service, which they really want to do on your platform.”

© TIM GRIFFITH/NBBJ

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CYBERSECURITY

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PSD2

OPEN BANKING AND THE FUTURE OF PAYMENTS Gavin Littlejohn, Chairman FDATA Global and Fintech Stakeholder Group Convenor for UK Open Banking Implementation Entity, offers his thoughts on the impact of open finance and the need to regulate

WRITTEN BY

OLIVIA MINNOCK

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CYBERSECURITY

60

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T

he world of finance has been turned on its head by open banking, allowing for the sharing of data with the aim of transforming customer experience. In Europe, and in particular the UK, fintechs have sprung up

to both challenge and benefit incumbents. The urgency to prepare for APIs, the rise of challengers, and all open banking has to offer has been compounded by regulation. In 2018, the European Union implemented PSD2, the second Payment Services Directive, updating legislation for payments. The update acknowledges the rise of fintechs and will seek to ensure security and consumer protection while evening the playing field for challengers.

PSD2 will come into full force in the UK in September, and even with Brexit and the EU’s jurisdiction only applying to member states, such directives will have a global impact since any organisation that does business in an EU member state will be impacted. Gavin Littlejohn, Chair of the Financial Data Technology association which campaigns on banking and financing issues across the globe, also sits on the steering committee for open banking in the UK. “This has given me a lot of insight into how implementation takes place, the pros and cons and types of processes,� he comments.

We caught up with Littlejohn at Money20/20 Asia to benefit from some of this insight into developments in the open banking arena.

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CYBERSECURITY

Littlejohn says regulation is neces-

standardise the areas where it makes

sary with so many changes going on in

sense to standardise. From my own

the finance world, and can make life

perspective as an entrepreneur as well

easier for both incumbents and tech

as the companies I work with, you want

startups. “If you look at the challenges

to spend your time solving customer-

of engineering, risk and complexity, it’s

facing problems – not problems with

important – from both a regulatory and

the plumbing.” Littlejohn says that the

technology perspective – that we

next big challenge finance is facing in the UK especially will be to implement

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“ T HE CUSTOMER HAS THE RIGHT TO CHOOSE THE SERVICES THAT BETTER MEET THEIR NEEDS” — Gavin Littlejohn, Chairman, FDATA

PSD2 in a way that does not impede access or hinder the customer journey.

“Across the banking landscape, requirements are for financial services to sell their financial products in a compliant way, digitally”, he outlines.

For this to work, organisations must endeavour to know their customer inside out and leverage that all-important resource, data. “The open banking and open finance movement will create a great opportunity for banks to be better at their job,” Littlejohn argues.

“At present, from the customer perspective they suffer from relatively low access to financial advice. Any applications that help empower customers to solve their problems are only as smart as the data

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CLICK TO WATCH : ‘FDATA CHAIRMAN GAVIN LITTLEJOHN ON HOW FINANCIAL DATA APPLICATIONS BENEFIT CUSTOMERS 63

you put into them – so open banking

the knowledge that you can only get

enables that customer to see a true

a better outcome if you know you have

picture of their financial self.”

the capability and the assets at your

However, as huge as the rewards can be, when dealing with this data, it’s important to keep it safe and remem-

disposal to be able to compare and contrast.”

With permission, aggregating data

ber who has the right to it. As Littlejohn

can make life more seamless for any

is quick to emphasise, data belongs to

consumer dealing with their finances.

the subject, in this case, the customer.

“My experience of this domain is that

“The customer has the right to choose

customers have a variety of different

the services that better meet their

details. A couple or family, for example,

needs, and yes, some customers will

might have different credit cards and

be fearful of sharing their financial data,

savings accounts, a family might have

but on the other end of the spectrum is

one account to pay bills and one to w w w.f i nte c hma ga z i n e. com

CYBERSECURITY

save for parties – and usually this is not all through the same provider. In order to facilitate simple things like budgeting and making good financial choices, then, being able to combine your data from different sources is really helpful.”

This is already visible with big banks in the UK as well as fintechs like Monzo which work to equip customers with the right knowledge to make better financial decisions, and Littlejohn says that consumers and businesses alike are beginning to truly embrace such 64

opportunities. “Looking at the UK model as well as other markets, the banking sector was very resistant to open banking to start with, but now they know they’ve got it they’re coming to understand it’s a great opportunity for them to get to know where their customers are when they’re not with them.”

Large banks are all beginning to move with the times says Littlejohn, and this is only set to continue. “If you were to go to RBS, Barclays, HSBC or Lloyd’s, you’ll be able to download and use their open banking app where you can see financial services as well as the fintechs in the market. There’s J U LY 2 0 1 9

“ T HERE’S A LOT OF INNOVATION AND COMPETITION COMING IN” — Gavin Littlejohn, Chairman, FDATA

a lot of innovation and competition coming in.” In particular, PSD2 will also allow for third-party initiation of bank-to-bank transfer. “The alternative is peeling a card out of your wallet and making a payment that way, so there’s different pathways,” says Littlejohn, adding: “The payment capability, I would presume, will eventually be cheaper than paying via the card system. Then, one would also presume, eventually the actual user experience will encourage consumers to buy things.”

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Transforming Fixed Income. Together 17-19 September, 2019 | The Westin, Singapore The BIGGEST gathering of Buy Side Heads of Fixed Income & FX Trading & Portfolio Management

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T O P 10

68

most secure financial institutions Based on the 2018 ranking from Global Finance which measures each company by size, Business Chief has taken a closer look at the world’s safest banks WRITTEN BY

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AMBER DONOVAN-STEVENS

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T O P 10

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10

Caisse des Depots et Consignations [France]

The report from Global Finance measured each company by assets investor grades. Moody’s ratings chart was indicative of the relative credit risk of fixed-income obligations. Fitch provided a credit rating, and S&P measured by the ‘ability and willingness of an issuer.’ Caisse des Depots et Consignations is headquartered in Paris, France. The French bank stands in 10th place with assets of US$207.6mn, and a total score of 24 out of 30, averaged from Fitch (AA), Moody’s (Aa2) and S&P (AA).

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09

anque et Caisse B d’Epargne de L’Etat

[ Luxembourg]

Banque et Caisse d’Epargne de L’Etat is a national financial institution founded in 1856 and governed by the law as of March 24, 1989.

The bank has headquarters in Luxembourg City and goes by the name Spuerkeess in Luxembourgish. With assets of $54,305, Banque et Caisse d’Epargne de L’Etat has achieved NR, Aa2 and AA+ across the three grading systems, placing it in ninth place.

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T O P 10

72

08

NRW.BANK [Germany]

NRW.BANK is a state development bank of North Rhine-Westphalia, with headquarters in Dßsseldorf, Germany. It was originally founded in 2002 and now has 1,348 employees. The bank achieved top marks from Fitch (AAA), but lower marks from Moody’s and S&P (Aa1, AA-).

As of the end of December 2018, it had assets of $175.2mn.

J U LY 2 0 1 9

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YOU’RE CHANGING.

WE ARE TOO. Marsh & McLennan Welcomes Jardine Lloyd Thompson

75,000

The world has never spun so fast. Change – exponential change – surrounds us.

In these dynamic times, every great business needs to get three issues right – Risk, Strategy and People. And that’s what we do. For almost 150 years, Marsh & McLennan has been at your side helping solve your most complex challenges.

130

This marks the start of a new era as we welcome more than 10,000 colleagues from Jardine Lloyd Thompson. This unmatched collection of talent will be there for you in the moments that matter.

STRONG

COUNTRIES

75

07

Kommunalbanken [Norway]

Kommunalbanken (KBN) is a Norweigan AAA/Aaa/AAA rated local government funding agency, located in Oslo, Norway. The bank has been entirely owned by owned by the Royal Ministry of Local Government and Regional Development on behalf of the Kingdom of Norway since its creation in 1927. KBN has assets of $47,738.

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T O P 10

76

06

Nederlandse Waterschapsbank

[ Netherlands]

The Nederlandse Waterschapsbank (NWB Bank) (English: Netherlands water boards bank) is a Dutch bank that specialises in the financing of waterboards and local governments. NWB Bank has been owned by public authorities since its creation in 1954. The bank has the smallest body of staff of the companies to achieve full marks across the Fitch, Poor’s and Moody’s ratings, with 39 employees.

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05

L-Bank

[Germany]

L-Bank, (Landesbank Baden-Württemberg) has achieved the highest marks that can be issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service. It has assets of over $84.6mn, and as of 2018, became Germany’s largest state-backed Landesbank lender.

The company was founded back in 1999, and formed through the merger of SüdwestLB, Landesgirokasse, and the commercial banking business of L-Bank. L-Bank has its head office in Stuttgart, and has over 10,000 employees.

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T O P 10

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04

Landwirtschaftliche Rentenbank

[Germany]

Landwirtschaftliche Retenbank is Germany’s development agency for agribusiness. The bank has its headquarters located in Frankfurt am Main, Germany with 285 employees. At the end of 2017, the company had assets of $108.7mn, placing it in fourth place in the rankings.

Founded in 1949, the bank boasts a rich history as the successor of Deutsche Rentenbank, which was originally established to issue the Rentenmark in 1923 to combat hyperinflation. Today, Rentenbank encourages a wide range of investments with its low-interest loans.

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03

Zürcher Kantonalbank [Switzerland]

Zürcher Kantonalbank (ZKB) is the largest Cantonal bank, and fourth largest bank in Switzerland. It achieved full marks across Fitch Ratings, Standard & Poor’s and Moody’s Investors Service, and places third in GL’s rankings with $167.9mn in assets. The Incorporated public-law institution has just over 5,000 employees across 80 offices. The offices are largely based in the city of Zurich, but also has regional advisory offices in Beijing, Mumbai, Singapore, Panama, and Sao Paulo.

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T O P 10

02

BNG Bank N.V. [Netherlands]

The Bank Nederlandse Gemeenten (Netherlands Municipal Bank, BNG) is a private Dutch bank and Local Government Funding Agency. The company was founded in 1914 in The Hague as the Gemeenteli-

80

jke Credietbank (Municipal Credit Bureau), and was later renamed to Bank voor Nederlandsche Gemeenten in 1922, before eventually becoming Bank Nederlandse Gemeenten in the late 1990s.

The company offers financing exclusively to (semi-) public organisations, such as municipalities, provinces, public utilities and public housing.

Though BNG scored in 5th place in The Global Finance’s top 10, as of March 2019 it was announced that Fitch had increased its rating of the company from AA+ to AAA, bringing it up to second place with a total score of 30, and assets of $167.9mn.

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T O P 10

01

KfW

[Germany]

KfW achieved a full score across the three investors services, but claims first place with distinctly higher assets of $566.4mn. The KfW, formerly KfW Bankengruppe, is a German state-owned

82

development bank, based in Frankfurt. Today, is has over 6,376 employees at 80 local offices and representations globally. Since its foundation in 1948, it has since provided over $1.9trn in loans.

KfW maintains a strong interest in trending concerns worldwide, particularly regarding sustainability and domestic promotion. In the last year, KfW has granted over 500,000 promotional loans, venture capital investments and promotional grants. KfW is responsible for a quarter of financing of SMEs in Germany.

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EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the EDITED BY OLIVIA MINNOCK world for fintech leaders

05–06 SEPT 2019

AI in Finance Summit 03–04 SEPT 2019

Seamless East Africa 84

[ NAIROBI ]

[ NEW YORK ] Organised by global summit creator ReWork, the AI in Finance Summit is colocated with the AI in Insurance Summit

This is the leading fintech event for the

and Women in AI Dinner. The previous

East Africa region, and 2019 marks its

iteration of the two-day event included a

fifth iteration. The event is aimed at the

host of practical workshops and inform-

sectors of payments, fintech, banking

ative presentations. Confirmed speakers

and insurtech. At present, it welcomes

for 2019’s event includes Joan Gelpi,

around 1,500 professionals from

SVP and Head of Data Science at AIG;

across 45 countries. Speakers set to

Manuela Veloso, Head of AI Research at

attend this year come from Harvard

JPMorgan Chase & Co; and Charles

Innovation Lab, the Government of

Girve, Lead Data Scientist at Deutsche

Kenya, Standard Chartered Bank,

Bank. With hours of networking opportu-

Barclays Bank and more. Some high-

nities, the event is recommended for

lights listed by the organisers include a

data scientists and engineers, financial

“pitch-off” for fintech startups, an “ask

regulators, C-level executives, venture

the expert zone” and a specific summit

capitalists and more, so there truly is set

for merchant payments.

to be something for everyone.

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23–25 SEPT 2019

InsureTech Connect [ MGM GRAND, LAS VEGAS ]

25 SEPT 2019

Billed as the world’s largest gathering

Blockchain Live

of insurance leaders and innovators,

[ OLYMPIA, LONDON, UK ]

InsureTech Connect (ITC) is highly

Blockchain Live aims to create a ‘festival

recommended for industry execs,

of content’, promoting discussion and

entrepreneurs and investors within,

debate around how to best accelerate

and impacted by, the insurance industry.

the global adoption of blockchain.

With companies in attendance including

Some notable speakers at this year’s

insurance giantslike Allianz, Lloyd’s,

event will include the Blockchain

Prudential and AXA, this is the place to

Research Institute’s Hilary Carter,

make global connections and under-

Global Digital Finance’s Teana Baker-

stand what some of the world’s biggest

Taylor and the Blockchain Policy

players are doing to remain competitive

Centre’s Caroline Malcolm. This year’s

in an increasingly digital landscape. 2018

event will include a Tech Connect

hosted a range of experienced speakers

Stage which will explore the technical

including Dan Glaser, CEO & President

challenges and opportunities presented

at Marsh & McLennan; Inga Beale, CEO

by blockchain and distributed ledger

of Lloyd’s; and Tracie Grella, Global Head

technology and the benefits it can

of Cyber at AIG. With this in mind, the

hold for information security, sharing

2019 event is set to be a must-visit.

and management.

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EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the EDITED BY OLIVIA MINNOCK world for fintech leaders

OCT 2019

86

27–30 OCT 2019

Finovate Asia

Money20/20 US

[ TBC ]

[ LAS VEGAS ]

Following on from the success of 2018’s

This year’s US iteration of the world’s

event in Hong Kong as part of the city-

leading fintech event will be held in

state’s Fintech Week, advance tickets

Las Vegas. The event aims to create

are already on sale for Finovate Asia

an ecosystem of payments, banking,

2019 which promises 600+ attendees,

fintech and financial services leaders

20+ firms offering demonstrations

and offers networking opportunities,

and 80+ expert speakers for a mix of

panels, keynotes and a variety of other

speeches and panels. Finovate Asia

events. The Las Vegas event promises

advertises the opportunity for attendees

to welcome over 2,300 C-level

to “meet the fintechs, platform players,

executives and over 500 speakers.

financial institutions, regulators and

Key companies set to attend include

investors who are redefining the future

Finastra, Mastercard, IBM and

of financial services.” Notable speakers

Marqeta. The event will also include

in 2018 attended from Danske Bank,

the Rise Up programme which

AXA Lab, Accenture, Bank of America

supports women wishing to move up

and Alipay.

the career ladder, especially in the finance arena.

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11–15 NOV 2019

04–08 NOV 2019

Hong Kong FinTech Week

Singapore FinTech Festival [ SINGAPORE ] In 2018, the week-long event was

[ HONG KONG & SHENZHEN ]

attended by 45,000 participants from

The world’s first cross-border fintech

130 countries – this year, it is only set

event, the week takes place in both

to grow. Singapore FinTech Festival

Hong Kong and Shenzhen, China. Each

is sponsored by the likes of Deloitte,

year, the week includes more than

Google Cloud, VISA and Amazon

10,000 senior executives and features

Web Services. The world’s largest

over 250 fintech founders, investors,

FinTech event, it includes startups,

regulators and academics. Notable

policymakers, financial and technology

previous speakers have included

industry leaders and more. The festival

Ant Financial CEO Eric Jing, Ping An

is organized by the Monetary Authority

Executive Vice President Jessica Tan

of Singapore (MAS) in partnership

and Standard Chartered regional CEO,

with The Association of Banks in

Benjamin Hung. Last year, the week

Singapore and in collaboration with

was sponsored by many big names

SingEx Holdings. Key highlights of

including Standard Chartered, Citi,

the festival include the AI in Finance

Tencent, PwC and Finastra.

summit and the FinTech Awards.

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VALUES DRIVING CASHCO FINANCIAL’S DIGITAL TRANSFORMATION

88

WRITTEN BY

HARRY MENEAR PRODUCED BY

JAKE MEGEARY

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CASHCO FINANCIAL

Raymond Wilson, COO of Cashco Financial, discusses the company’s five core values and how they are driving the digital transformation of its customer journey

T

oday, more than 30% of Canadians are living from paycheque to paycheque.

The number of people in debt is rising too,

with the Bank of Canada reporting in May 2018 that the average Canadian typically owes around 90

CA$1.70 for every dollar they own. Canadians are not just struggling financially: according to a report

by NBC, financial pressure and consequential stress can both directly and indirectly affect mental and physical health. Millions of underbanked Canadians are in need of banking and money management services, of short-term loans to make it to the next paycheque, and of long-term services to nurture and support their aspirations.

The idea of Cashco has been rooted in a number of businesses founded by the company’s CEO, Tim Latimer. Cashco Financial as it exists today has been around for a decade delivering alternative financial services to the citizens of British Columbia, Alberta, Saskatchewan and Ontario, both through brick and mortar and online – providing over 140,000 clients with long and short-term personal J U LY 2 0 1 9

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CASHCO FINANCIAL

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“ We work hard to make sure these are living, breathing values embodied throughout the organization” — Raymond Wilson, COO, Cashco Financial J U LY 2 0 1 9

loans, cheque cashing and, as of 2017 in Alberta, banking services. “Over the course of our history our business model has continued to evolve, at a time we were focused solely on providing access to payday loans, then added and evolved to installment products, and now we’re focused on bringing banking services to our clients. There isn’t a one size fits all solution to our clients banking needs so we work to offer banking-like products that can offer support to

CLICK TO WATCH : ‘CASHCO MOM’S REALITY’ 93

people that can’t get help anywhere

clothe the both of us,” he recalls.

else,” says Raymond Wilson, Chief

“I really feel passionate about the

Operating Officer (COO) at Cashco.

subprime loans market because I can

Wilson, who has served in his current

connect with the customers. There

role for three years, is able to bring

were plenty of days growing up when

a powerful sense of empathy to the

there was nothing in the fridge. I know

company’s relationship with the numer-

where they’re coming from.”

ous underserved families and individu-

Cashco serves its clients by working

als across the country. “I grew up in a

tirelessly to embody its five core

single parent home; my mother raised

values: Respect the vision, Embrace

myself and my brother, and there were

Can I, Live the Golden Rule, Own the

many times I could see the stress on

Results and Communicate Honestly.

her face as she was trying to feed and

The core values set the expectations w w w.f i nte c hma ga z i n e. com

CASHCO FINANCIAL

94 for staff on how Cashco employees

commitment to them. “At the time, it was

behave and treat each other. “We work

transformational for our business, today

hard to make sure these are living,

it means we can make better decisions

breathing values embodied throughout

on affordability and support our clients

the organization,” says Wilson. “The

need in order to help them maintain a

organization moves quickly, and we

positive relationship with their money.”

have a big job to do. If we don’t have

That technology now needs to be

clear expectations of ourselves and

monitored and adjusted continuously

the people around us, it’s very hard

to ensure that, first, clients keep moving

to do what we do every day.”

along their credit journey, and second,

Over the last 5 years Cashco

that Cashco builds a sustainable

introduced a decision engine that takes

business that can be around for many

all the data feed into it and works to

years serving the underserved and

make better predictions on client’s

underbanked. This technology is heavily

likelihood of honoring their financial

based on artificial intelligence/machine

J U LY 2 0 1 9

learning that speeds up the delivery

he says. The company’s efforts range

and removes friction from the client’s

from simple steps, like attaching an

journey with Cashco.

employee’s picture to an email to

One of the largest challenges that

humanize the interaction for the client,

Wilson recognizes is the preservation

to the construction of an entirely new

of the empathetic, personal experience

portal to allow for easy access to

as Cashco increases its digital offerings.

account information and Cashco’s new

“We know we can be successful when

banking services. Rather than cold

the client sits down at the desk and we

functionality that widens the distance

have a conversation. But, as we move

between Cashco and its customers,

into a more digital age, we need to start

Wilson sees the “exponential growth

looking at other ways to create those

of technological applications” as an

touchpoints and still maintain that

enabler for increasingly personalised

relationship while the client benefits

and empathetic services. “We’re

from the accessibility of digital products,”

utilizing technology to make our

E XE CU T I VE PRO FI LE

Raymond Wilson Raymond Wilson has been with Cashco Financial for 10 years where he started as a VP managing the branch network. In 2016 he was promoted to Chief Operating Officer and now oversees all operations.

He has worked in this market for almost thirty years and is very passionate about what Cashco stands for and the people they serve.

Wilson has four beautiful children and has been married to his wife Leslie for 13 years. He is also an avid golfer and enjoys the outdoors with his family.

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95

CASHCO FINANCIAL

96

140,000 Clients served

2009

Year founded

HQ

Edmonton, Alberta Canada

J U LY 2 0 1 9

customer journey as painless as possible,” he explains.

In particular, Cashco is employing analytics and artificial intelligence (AI) to both empower the front end of its business and augment its back-end decision making. “We use AI for our loan decisioning, which we’re constantly tuning to make more efficient, and twinning with our analytics to create a higher loan completion and closing rate,” says Wilson. Cashco has also made the decision to build its AI in-house.

“Our CEO has the entrepreneurial spirit,” Wilson explains. “With that comes quick change; this way we don’t have to wait to make alterations the way we would if you bought something off the shelf.

We acknowledge that there’s a cost to doing things in-house, but it allows us to be much more agile.”

AI also plays a critical role in Cashco’s latest project: applying decision making to the loan recovery process. “We’re working with another company to bring AI into our recovery and collections department,” says Wilson. “If clients are unable to make a payment, there’s a reason for that. AI can help us understand not only how to best communicate with people, but how w w w.f i nte c hma ga z i n e. com

97

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CLICK TO WATCH : ‘CHRISTINA’S REAL WORLD STORY’ 99

to help them ensure they can complete their loans with us.”

To maintain relevancy Cashco has recently mapped out the strategic direction for the next three years, identifying the necessary business decisions in order to compete in their space – knowing the space continues to grow and demand is increasing.

“A digital Cashco is imperative, and we have it centered around the idea of digital client-care services,” says Wilson. “Overall, our digital ecosystem

“ Respect the Vision, Embrace Change, Live the Golden Rule, Own the Results and Communicate Honestly” — Raymond Wilson, COO, Cashco Financial

is focused on leveraging our data, and w w w.f i nte c hma ga z i n e. com

CASHCO FINANCIAL

CLICK TO WATCH : ‘ELISIA’S REAL WORLD STORY’ 100

advanced analytics platforms are built together so decision making is driven by the business, and AI/machine learning will be the driving factor is producing sound recommendations to guide the process.”

The entire enterprise is designed to accommodate and exceed the needs and expectations of the underserved.

Cashco provides relief today by making it easy to get an immediate loan regardless of current or past credit history. The company accepts its J U LY 2 0 1 9

“ We’re utilizing technology to make our customers’ journey as painless as possible” — Raymond Wilson, COO, Cashco Financial

101

clients, wherever they are on their

resilient business with a loan book of

journey. Due to the multiple solutions it

$250mn by 2021, serving underbanked

offers, Cashco is the only finance

Canadians with subprime loans, and

company that can help move clients

continue to offer meaningful banking

through the entire credit continuum to

delivered through advice-based,

achieve a better credit rating and

intimate, one-to-one relationships.”

create hope for tomorrow.

Looking to the future, Cashco Financial has bold ambitions. “Our big, hairy, audacious goal is to be recognized as a new, different kind of bank by 2025,” Wilson concludes. “We’re going to build a forward-looking w w w.f i nte c hma ga z i n e. com

102

Marsh Indonesia: finding opportunity in the challenging insurance space WRITTEN BY

OLIVIA MINNOCK PRODUCED BY

ALEX PAGE

J U LY 2 0 1 9

103

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MARSH INDONESIA

Following the $5.6bn global acquisition of JLT, Douglas Ure explains how Marsh Indonesia will maintain local commitment amidst digital disruption in the insurance space

M

arsh has a global strategy of growing our business, and in doing so we focus on and prioritize our clients and colleagues,” says

Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia. Having been with 104

Marsh for 12 years, Ure is now taking a new step and moving to Jakarta as part of Marsh Indonesia, and for him the most exciting part is the people.

“The team we have in Indonesia is fantastic.

We have a real client centric attitude,” he enthuses, expressing admiration for the “energy, drive and collaboration across the Indonesia team”.

Having worked with Marsh London, Ure was responsible for one of the risk consulting practices that had him working with clients across the UK, Europe, Middle East and Africa. In 2014, Ure relocated to Singapore and has been getting to grips with the Asian market, and he looks forward to continuing his journey across a dynamic continent.

“Asia is such a vast, rich culture with huge opportunities for growth. Some clients, organisations and countries are very advanced and sophisticated with J U LY 2 0 1 9

105

1983

Year founded

35,000

Number of employees (Group)

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MARSH INDONESIA

regards to insurance and risk, others less so. In North Asia, for example, a lot of the Marsh client base is driven by large manufacturing and technologybased companies with sophisticated risk management needs.” As for Indonesia? “Marsh’s Indonesian business has been in operation for 35 years, and we have a mix of local and international companies that we are privileged to work with, all with bespoke needs and requirements.

In my regional Asia role, I had the opportunity to work with some Indonesian clients and visit the country regularly.

106

However, for me living, working and being truly engrossed in the culture will be fantastic. I’m really looking forward to learning more about Indonesia and

“ Cyber is a kind of risk you can’t put your finger on – it doesn’t have any boundaries” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

making a difference to our operation.”

INTEGRATING TWO INDUSTRY GIANTS Since we last spoke to Marsh Indonesia in 2018, the group (Marsh & McLennan Companies, Inc) has been involved in a significant global acquisition in the form of insurance and risk management, JLT (Jardine Lloyd Thompson). Having completed the last steps of the US$5.6bn deal, Marsh is now working to integrate the two

J U LY 2 0 1 9

CLICK TO WATCH : ‘#RIMS2019: DRIVING THE DISCUSSION ON DIVERSITY AND INCLUSION’ 107 businesses together. It’s a significant

Throughout what is more of a culture

shift, which Marsh has pledged will

integration than a culture shift,

happen gradually. “A key part of the

Marsh will maintain careful, elegant

integration is that it’s really comple-

change management strategies.

mentary,” says Ure. “Speaking to the

“Managing that change and transition,

Southeast Asia landscape, we see

collaborating with new colleagues as

aspects of the Marsh and JLT cultures

they integrate has started really well.

really complement each other,” he

I am genuinely impressed at how both

adds, noting the companies share a

teams are coming together, sharing

client-centric approach and commit-

ideas and learning from each other.”

ment to collaboration.

Ure adds that while this will be a

“Obviously there are differences

gradual process, some things can

as well, so there’s going to be change

be done quickly and these achieve-

for both Marsh and JLT as the two

ments will be celebrated. “With a

companies come together,” Ure adds.

stronger collection of talent from both w w w.f i nte c hma ga z i n e. com

MARSH INDONESIA

108

organisations, we create a solid team,”

treated. A global development for the

he says, adding that the end result will

company, the JLT acquisition is one

be a “broader and more sophisticated

of many that will be enacted locally, in

service with an even greater value

true Marsh style. “We have local talent

proposition” to clients.

providing local solutions to our clients.

Following the integration, Ure stresses

That ultimately means they’re engaging

that Marsh will carry through its “Seven

the clients, talking the same language.

Client Principles and Global Code of

The local approach is obviously really

Conduct” as it does already in each of

important. Marsh operates across

its locales. This covers everything from

more than 130 vastly different countries,

ensuring documentation is compliant

which requires us to apply a local

to the way clients and colleagues are

strategy as well. We take our global

J U LY 2 0 1 9

strategy, adopt and adapt it to what

to support our consumer segment,”

will work best in Indonesia. We are

says Ure. Marsh’s consumer segment

conscious of the consistency of our

involves working with large clients

service that must be delivered to

who have a number of customers

a client wherever they are in the world,”

or are part of the sharing economy,

Ure continues, outlining that training

and the business has worked

and development needs of staff often

extensively in Asia to provide technol-

vary by location.

ogy platforms that enable insurance solutions to be provided to consumers.

KEEPING ABREAST OF DIGITAL DISRUPTION

increasingly prevalent in the region,

Aside from its recent $5.6bn acquisition,

Marsh Indonesia is not ignoring this

Marsh continues to look at investment

key driver of growth. “Technology

opportunities closer to home. “We’ve

is critical to running any successful

invested quite heavily in technology

and efficient business,” says Ure, who

With tech-led organisations

E XE CU T I VE PRO FI LE

Douglas Ure Douglas Ure is the Chief Executive Officer & President Director of Marsh Indonesia with over 20 years of experience working in insurance and risk management.

He began his career in in the manufacturing sector where he was responsible for corporate risk management and insurance before moving into the consulting industry. Ure joined Marsh in 2007 and has been involved in various roles covering consulting, analytics and claims across UK, Europe, and Asia.

Ure moved to Asia in 2014 to be based in Singapore before moving to Jakarta, Indonesia in 2019.

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109

MARSH INDONESIA

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111 feels data analytics is increasingly vital for Marsh to make better, more informed decisions both internally and for its clients. “We need to collect data, which could be on losses or claims, or data about insurance premiums and how those costs might be increasing or reducing. It could be beginning to benchmark our clients across a particular industry to give an indication of market prices or buying trends.

Having systems that pick that information up and allow colleagues to navigate it and share it with clients around their risk profile is vital.”

“ The team we have in Indonesia is fantastic.

We have a real client centric attitude for a greater value proposition to our clients” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

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MARSH INDONESIA

To keep up with the blistering pace of advancement in data and digital more widely, collaboration is key and Ure says that rather than being seen as a threat, tech startups should be welcomed with open arms. “We’ve already made a number of partnerships with insurtech companies,” he says, adding that Marsh blends this with internal development too.

“We’re investing a lot internally in developing our platforms and support systems. We’ve recruited and built up a team that’s providing technology112

based solutions across the company.

One example is the growing cyber exposure our clients are facing and how we can support our clients to manage this exposure more effectively.

For example, we can profile clients and industries and types of cyber events that could happen, and the likely financial impact to their business.

Interestingly, it’s not just from the perspective of internal development that the fourth industrial revolution is opening up new opportunities for Marsh. It’s also worth remembering that new technology means new risk – and this is a growing business segment for Marsh.”

J U LY 2 0 1 9

MOVING WITH THE TIMES Going forward, Ure and his team will continue to see every challenge as a new opportunity, especially the integration of JLT. “Continuing business as usual, serving our clients and delivering what our clients expect while that change is happening, will be critical,” Ure comments. Marsh will also continue to invest locally and support clients as they grow. “Going back to the core principles of Marsh, challenging ourselves to develop talent is again an opportunity,” he adds.

Indeed, retaining top talent will be key, driven by Marsh’s commitment to change management and the development of a positive culture. “We like to communicate directly with our teams, sharing information about new initiatives, for example. We also like to give people opportunities for their own training and development. Sometimes that can be professional training and other times it can be opportunities for our colleagues to give something back to the community through rewarding volunteering initiatives.”

In terms of investment and growth, Ure comes back to the exciting prospect of a new region. “In Indonesia, w w w.f i nte c hma ga z i n e. com

113

MARSH INDONESIA

114

we want to take some of the investment we’ve made and deploy it here locally.

That’s a work in progress for us: with more than 260mn people live in this country so it’s a huge consumer base.”

Indeed, Indonesia itself is heavily investing in its own development with ongoing infrastructure projects, which all adds opportunity from Ure’s perspective. In addition, as the country continues to attract investment from further afield, Marsh will be there with those companies every step of the way.

J U LY 2 0 1 9

“ We have local talent with global network and global expertise providing local solutions to our clients” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

115

“We also recruit people into the

the world, we can give them the

Indonesian local market that have to

confidence and comfort of receiving

service Japanese and Chinese clients

an established, consistent standard

that are investing into Indonesia. We

and high quality people in New York,

employ Japanese and Chinese locals

Paris, Jakarta or wherever they are

alongside an Indonesian workforce to

in the world.”

work directly with those clients that are investing here,” Ure explains. “That’s where Marsh really stands out and is committed to the consistent service delivery in providing a higher quality of service. Although, organisations might be headquartered somewhere else in w w w.f i nte c hma ga z i n e. com

116

Digital transformation across the Asian landscape

WRITTEN BY

OLIVIA MINNOCK PRODUCED BY

ALEX PAGE

J U LY 2 0 1 9

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SUN LIFE FINANCIAL

Insurance giant Sun Life sees the Asian market as an important region to grow, innovate and experiment. Gavin Gollogley and John Trotter outline how the company uses digital tools, culture and partnerships to thrive in a rapidly changing landscape

W 118

hile insurance giant Sun Life is headquartered in Canada – the company’s commitment to digital transformation and

innovation surpasses borders, and the exciting market of Asia is becoming an important region for developing new ways of working. Sun Life, which is present in seven markets across Asia – Hong Kong, Vietnam, Indonesia and the Philippines, with joint ventures in China, Malaysia and India – sees Asia as a tech-savvy market with huge opportunities for growth, not just geographically, but also in terms of the innovation and services it offers. “Asia is an important growth engine for many global businesses now,” comments John Trotter, Head of E-Distribution and Fintech at Sun Life Asia.

Asia has several elements that come together to create a wealth of opportunity for a global insurer like Sun Life: a large and growing population, an emerging middle class, low insurance penetration across most countries, and a young demographic J U LY 2 0 1 9

119

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SUN LIFE FINANCIAL

“ It’s important to understand how data, coupled with intelligent analytics, supports business needs” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia

which is digitally savvy and used to leapfrogging technologies to take advantage of the very latest advancements. The company is highly enthusiastic about the region, and encourages the Asian businesses to drive their own developments for the local markets. “This is a really sensible approach,” comments Trotter. “Of course we share learnings across all our markets, but a one-size-fits-all model across countries rarely works – there are always local considerations that may mean something that works well

120

in one country will not necessarily work in another: regulation, market maturity, culture etc.”

As the company embarks on an ambitious journey to digitise its overall operations, Head of Digital for Asia, Gavin Gollogley, adds that Asia is the perfect place to experiment. “From an innovation perspective, there is a sense that people typically look toward the US, but there is equally as much going on this side of the world, particularly in China and India.” Gollogley adds that Sun Life’s ‘client obsessed’ CEO, Dean Connor, has put a lot of focus on digital and data to drive Sun Life’s cliJ U LY 2 0 1 9

CLICK TO WATCH : ‘SUN LIFE AND ME. PARTNERS FOR LIFE’ 121

ent strategy, actively encouraging our

building new business models, en-

transformation agenda, and new ways

hancing operational and value chain ef-

of operating in some of the world’s

ficiency, and creating best in class ex-

fastest growing markets.

periences, to building a digital culture and mindset – all enabled by the latest

FOCUSING ON DIGITAL

technologies, data-driven insights,

Gollogley highlights that digital trans-

skillsets, talent and change frame-

formation is not simply a matter of

works. When you look at it through

technology advancement and applica-

these lenses, it is a pretty large beast.

tion. “There’s a definite need to clearly

As we are a traditional life insurer, with

articulate what digital is, and how it

over 150 years of doing business, this

enables business strategy. It touches

requires taking transformation in bite

on many elements, some more trans-

size pieces.”

formational in nature than others. From

Sun Life Asia’s digitisation kicked w w w.f i nte c hma ga z i n e. com

SUN LIFE FINANCIAL

off in earnest in early 2016. “We have

cluding building an integrated customer

made good progress across the region

engagement platform, developing

in advancing our Digital and Data

a point of sales and productivity suite

& Analytics agenda,” says Gollogley.

platform for advisors, improving our

“The core focus has been on digitising

digital marketing and social media

our current processes, creating a data

capability and creating a data analytics

& analytics centre of excellence and

center of excellence.”

embedding a digital friendly culture, with investment in upskilling our people

en their digital foundations to push

with key digital skills.

for differentiation. “There is a definite

The initial focus was on a three year

122

In 2019, Sun Life will further strength-

awareness that we need to be vigilant

road map, its objectives having largely

on areas like talent, structure and culture

been achieved in developing a ‘com-

to achieve our goals,” Gollogley adds.

mon core’ across all business units; in-

E XECU T I VE PRO FI LE

Gavin Gollogley Gavin Gollogley is Head of Digital, Asia at Sun Life. He supports the organization’s digital transformation efforts, specializing in the digital portfolios which include marketing, experience and distribution, as well as overseeing their data & analytics centre of excellence. Gavin has over 25 years’ experience in digital roles spanning media, publishing and the insurance industry in Hong Kong, Australia and Ireland.

He brings to his role a deep understanding of how digital transformation can create opportunities and be leveraged to solve inherent business problems. Currently based in Hong Kong, Gavin enjoys spending quality time with his wife and three daughters when not working.

J U LY 2 0 1 9

GROWTH THROUGH PARTNERSHIPS

customers who may not have access

As part of the company’s digital

to Sun Life’s traditional channels,

transformation journey, Asia has also

the business is experimenting with

proved the perfect place to explore

new forms of distribution through

new digital distribution channels by

strategic partnerships. Currently,

collaborating with partners to en-

insurance penetration is around 3%

hance the experience for Sun Life’s

on average across all Sun Life’s

clients – for example, the business

Asian markets, so as Gollogley puts

has recently invested in startup Bow-

it: “There’s a huge opportunity,

tie, which will be Hong Kong’s first

a veritable ‘blue ocean’ out there

purely digital insurer. “Sun Life has

to navigate and explore.”

a proud history as a partnership

Telecommunication companies such

business,” says Trotter, explaining

as Malaysia’s U-Mobile have become

that in order to reach new groups of

an interesting component of Sun Life’s

E XE CU T I VE PRO FI LE

John Trotter John Trotter is Head of E-Distribution and Fintech at Sun Life. Within this role he is responsible for t wo t ypes of digital partnerships: developing strategic partnerships for new digital distribution, and working with startups and Fintech companies on innovative new initiatives.

Trotter has over 30 years’ experience working in the banking and insurance industr y across Asia and the UK, largely in business development roles.

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123

SUN LIFE FINANCIAL

growth plans. “We’re experimenting to see if we can sell insurance through non-traditional partnerships and ecosystems,” says Trotter, demonstrating Sun Life’s focus on pushing boundaries and extending its customer reach beyond traditional means. Additional telco partners already include Indonesia’s Telkomsel and Philippine’s Smart – both sector leaders in their respective countries with tens of millions of customers each. Sun Life has also recently formed another interest124

ing partnership with one of Southeast Asia’s major e-commerce platforms, Lazada, which itself has over 50mn customers in the region. “It’s a really interesting new model for us,” says Trotter. “We’ve simplified insurance to the extent that we can almost put the products on a supermarket (eCommerce) ‘shelf’ and observe how consumers respond. At this stage it’s still an experiment, but a good example of how we’re thinking – we need to push the boundaries to reach new types of customer.”

Another element of the clientobsessed firm’s digital transformation journey is to offer products and soluJ U LY 2 0 1 9

“ The focus is on client experience: trying to understand needs and behaviour” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia tions for those who may not be catered for by traditional insurance offerings.

“We’re interested in helping increase the 3% penetration rate and appealing to new customers,” says Trotter. “We’re also very conscious about customer groups who may not have the same level of affluence or consistent income to afford our traditional products. We are redesigning our products in several markets to offer credibly priced on-demand value options. There are groups of consumers in Asia that don’t want to buy a 10-year insurance policy the first time they buy – they want to w w w.f i nte c hma ga z i n e. com

125

SUN LIFE FINANCIAL

“ Asia is a massive growth engine for most global businesses now” — John Trotter, Head of E-distribution and Fintech, Sun Life Financial Asia

126

dip their toe in and try something more

to such a vast landscape of consum-

affordable and short term. We’re trying

ers would prove costly, this is one area

to deliver that for them.”

where e-commerce and telco partnerships have been vital. “People are inter-

CONNECTING WITH THE CUSTOMER

acting anyway, so that gives us a good

In addition to getting the product right,

opportunity to put products in front of

it’s important to explore different

people and test what works, what price

avenues of bringing these products to

point and coverage are right for them.”

the customer. “We’re trying to reach

Across its business lines, Sun Life

that niche of customers who can afford

has been quick to recognise and

what we’re selling, value what we’re

leverage the benefits of social media

selling, and who want to get into the

marketing across Asia, having

protection market at a price point they

garnered over 2.5mn followers on

can afford.” Whilst advertising directly

platforms such as Facebook, LinkedIn,

J U LY 2 0 1 9

127

Instagram and Twitter. In doing so,

it is how we will be perceived by

the company makes up for its rela-

prospect and client alike.”

tively smaller footprint in some markets

Though Facebook isn’t advertised

with an amplified voice online. “Sun

as a customer service function, Asia’s

Life uses social media to reach out to

well-known thirst for omnichannel and

people who don’t know the brand or

choice is reflected in the way many

understand the insurance need,” says

users engage with Sun Life via the plat-

Gollogley. “We’re using it for educa-

form. “Our clients are saying that’s the

tion and a lot of creative engagement

way they want to engage so we have

supporting brand awareness and

to cater for this,” says Gollogley. “It’s

sponsorship. Social media and digital

the same with chatbot technology. We

marketing in general is a way in which

have a chatbot sitting in our Philippines

we can present who we are, and what

Facebook page – but we also under-

our purpose is – and in equal measure,

stand that’s not a channel of choice w w w.f i nte c hma ga z i n e. com

SUN LIFE FINANCIAL

for everybody. Some people want to call us, some want to speak to their advisor, some want to go through email or through Facebook. We have to build connected experiences that match our customer needs, behaviours and intent.”

Social media is instrumental for an organisation like Sun Life as it aims to engage with customers at different stages of the client journey in order to

“ We have to build connected experiences that match our customer needs, behaviours and intent” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia

provide ongoing support from initial awareness to sustainable retention.

128

Sun Life also uses celebrities, KOL and supports its advisors through social

LEVERAGING DATA IN CLIENT OBSESSION

selling workshops. Here, content and

Along the path to purchase, awareness

context are king. Gollogley poses a

of the right products and services

key element of content marketing as

available to prospects and clients, and

a question: “How do we reach users

the experiences they receive, can be

who are unaware their needs may be

enhanced using the most vital resource

met by a financial product, regardless

available to businesses today – data.

of the brand?” With creativity, trans-

Organisations worldwide are leverag-

parency and education highlighted as

ing as much information as they can to

key, Sun Life has created ‘life moment’

provide a more personalised, predic-

frameworks which target human expe-

tive and proactive service and Sun Life

riences – ‘Getting Married’, ‘Building

is no exception. Indeed, its centre for

a Family’ or ‘Enjoying Retirement’ –

data & analytics aims to accelerate the

in order to show prospective clients

capabilities and development of best

how its products may help them at vital

practice around data and analytic solu-

stages in their lives.

tions. The team works with Sun Life’s

J U LY 2 0 1 9

A TRANSFORMATIONAL MINDSET Like any organisation embarking on a significant digital transformation journey, Sun Life is experiencing a large culture shift, and has had to keep a close eye on managing this change as employees adapt to a new mindset. Gollogley argues that this isn’t just about forming a digital mindset, but is also about transitioning into a transformational mindset. “People who are willing to change, learn and be comfortable with uncertainty — those are the individuals we’re trying to bring into the organisation. But we have to be conscious that this is a journey and we’re dealing with people who have been in the profession for many, many years. The organisation has put tremendous focus into creating digital leaders, with a focus on upskilling the practitioners leading the change, as well as key enablers across the region. This includes training and certification on design thinking, agile, digital leadership, digital marketing and change management.

To reinforce this change, we’re dependent on our senior leaders

being very vocal and communicating that change is good for the client, the organisation and the employee. We require our leaders to create a movement, being our number one change agents, to foster and accelerate a digital mindset within the organisation — encouraging agile digital leadership, change and transformation. If the execution is correct, this will be extremely beneficial to our transformation journey.”

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SUN LIFE FINANCIAL

130

1865

Year founded

£1.1trn+ Assets under management

10,000+

Approximate number of employees

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SUN LIFE FINANCIAL

SUN LIFE ASIA SERVICE CENTRE HYPER-JUMPS ITS CULTURAL AND DIGITAL TRANSFORMATION

132

In 2006, Sun Life formed the Asia Service Centre to build the foundations for its digital transformation, long before ‘digital transformation’ became a buzzword. More than a decade later, Sun Life’s Asia Service Centre is a fastgrowing innovation hub providing business processing, IT and investment research benefitting Sun Life’s global operations with offices in the Philippines and India and a combined headcount of almost 3,000.

The Asia Service Centre’s core digital competencies are mobile, data analytics, visualisation and RPA. In the past three years, Sun Life has launched over 20 digital assets, including the Sun Life Mobile Application launched in 2016, a first of its kind in the Philippines and supported the company’s e-commerce partnership with Lazada, another first in the industry. Agility played a big role in this project as the team achieved 80% re-use of components to lower cost and launch in two months’ time, ahead of the six-month timeline.

When it comes to emerging capabilities, Sun Life is currently focusing on cloud, data science and AI. In 2018, J U LY 2 0 1 9

RPA was implemented through the Intelligent Process Automation (IPA) program which involved automating 50 business processes within Sun Life through the use of over 100 bots.

Automation reduced the rate of errors and provided a lower level of operational risk. It greatly improved customer experience, moving highvalue front line employees to performing more important tasks.

After it was launched in Asia, ROI was achieved in less than a year. In the same year, the Asia Service Centre’s Intelligent Automation Program evolved into the Intelligent Automation Centre of Excellence pushing for more technology innovation. Both initiatives are driving Sun Life towards automation of business processes to provide faster and more efficient services to Sun Life’s businesses around the world.

“We won’t stop. Our digital transformation will continue to streamline our processes, reduce risks and achieve ultimate efficiency, thereby assuring improved customer satisfaction,” concludes Gollogley.

the organisation’s data and analytics maturity and business priority. These use cases can be offensive in nature, focusing on growing our business (for example, client engagement), or defensive, focusing on increasing efficiency to lower costs.”

The client experience is also digitised every step of the way in order to build and develop sustainable relationships.

“Persistency is one example of how the application of insights from data can bring a lot of value,” explains Gollogley.

“How do we deepen that relationship various business units to leverage

with the client so they don’t lapse their

machine learning and infrastructure

policy after a short period? After buy-

development, and also draw conclu-

ing the policy, they’re still with us – not

sions on how data and analytics can

for six months, or six years, but for

be applied across client, distribution,

a whole lifetime of value, for them and

operations and digital partnership.

their beneficiaries.” This year, the

“It’s important to understand how

company is focusing on two particular

data, coupled with intelligent analyt-

areas: what Gollogley refers to as the

ics, supports business needs,” com-

first and last mile. “The first mile is the

ments Gollogley. “Recently, we’ve been

data piece: understanding what data

leveraging data strategy workshops

we have and being able to access that

to develop a target state of how we

in the most digestible format” explains

maximise value from data assets – the

Gollogley. “In addition, from an external

outcome gives us the ability to develop

perspective, what data can we get our

a high-level data roadmap with new

hands on and what will bring true client

insights and use cases that reflect

outcomes?” The ‘last mile’ involves w w w.f i nte c hma ga z i n e. com

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SUN LIFE FINANCIAL

the business executing on insights.

“There’s little point spending 80% of the time on modelling and analysis, and only 20% on the execution of the insights generated. What are those insights that have tangible business value? When our data scientists bring those insights back into the business, are they different than anticipated?

If so, are we willing to execute on the results, and do we have the ability to do this at speed? This can be our formula for success.”

134

Data, just like all the other resources leveraged by Sun Life, always comes back to an obsession with clients – clients

“ There’s a definite ence: trying to understand the needs need to clearly and behaviours,” Gollogley emphasises. articulate what “We know expectations are not set by digital is, and insurance companies and banks, but by those companies with the large market how it enables caps – the Amazons, the Facebooks, business strategy” the Googles. Our strategy is to deliver whose expectations are increasing

every day. “The focus is on client experi-

experiences that are proactive, predictive and personal. An example of this would be offering clients a ‘next best offer’ – matched to their current needs, life segment or mirroring what people ‘like J U LY 2 0 1 9

— Gavin Gollogley, Head of Digital, Sun Life Financial Asia

Studio in Toronto as well as regionally with the creation of an Innovation Hub in Asia and active participation in the fintech community. Trotter stresses these burgeoning, disruptive startups shouldn’t be seen as a threat, but as an opportunity to collaborate and innovate. “We’re very comfortable looking outside the business for solutions that we can’t build ourselves. That’s something we’ll do in terms of core technology as well as emerging technology. Collaboration is really where the industry is going and businesses that do well with this will have a much better chance than those that don’t.” them’ purchase. This is only possible

Run by Accenture, the Fintech

through advanced analytics and target-

Innovation Lab Asia Pacific runs annual

ed marketing. That’s the lens through

12-week mentorship programs for

which we try to match customer expec-

startups. Launched in 2014, companies

tation, while supporting and fueling our

which have utilised the lab have raised

advisor and partner ambitions.”

a total of US$288mn to date. Sun Life is one of the principal partners of the

INNOVATION IN AN OPEN LANDSCAPE

lab, alongside other global organisa-

As the financial landscape changes

tions such as HSBC and Goldman

and develops, becoming ever more

Sachs. Ignite, meanwhile, is Sun Life’s

competitive with the advent of fintechs

own centre for innovation which

and insurtechs, Sun Life is focusing

opened in 2017 to act as a ‘living lab’,

heavily on upskilling and innovation

advancing innovation and collaboration

– on a global scale through its Ignite

between employees. w w w.f i nte c hma ga z i n e. com

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SUN LIFE FINANCIAL

Trotter also stresses that partnerships are often the best way to go to introduce innovation. “The idea that a startup could be a serious industry competitor is obviously unlikely – they understand that they need to partner with the incumbent in the industry, and likewise we as the incumbent understand these insurtechs have ideas that can accelerate our transformation. Whether that’s claims process, RPA, AI, facial recognition – they have specific talents and techniques we can 136

leverage and vice-versa.”

A CONTINUOUS JOURNEY As finance and insurance continues to evolve, particularly in the exciting and

of talent: “Transformation itself will

fast-paced Asian markets, Sun Life is

never cease, and will continue to rely

reaching out to new clients continu-

heavily on people. Building a team,

ously, and adapting new experiences

bringing in the right talent and capabil-

for its existing client base. “We’re only

ity is challenging, but it’s a challenge

three years into our digital journey. It’s

that the Sun Life team, and those at

a story that’s going to continue, with

the forefront of the journey across

perhaps a narrative that is challenging

the region are managing well. I read

but exciting,” says Gollogley. “I expect

somewhere that digital transformation

the word ‘digital’ may be out of fashion

challenges the very concept of career

in a few years’ time, as it becomes the

paths and traditional job profiles, with

standard way of doing business.” Gol-

the agility and innovative capacity of

logley goes back to the importance

organisations resting on the diversity

J U LY 2 0 1 9

137

of experience of those who comprise

culture. Our transformation efforts to

it. I believe this sums up pretty well the

date have been a real joint effort, led by

challenges before us on talent hiring,

our business units, supported by our

retention and increasing capabilities,

regional and shared service teams.

in today’s environment.

“At Sun Life, we’ve been fortunate to

“We know Digital is no longer an alternative: it must be viewed as core

hire some brilliant individuals across

and the new way of doing or providing

the region. We constantly learn from

ease of business. Sun Life is well

each other, and there is a real sense of

positioned to embrace and succeed

purpose, co-creation and collaboration

in this disruptive and changing world.”

for our mission. As a whole, Sun Life is a great place to work, a friendly and encouraging environment, with a great w w w.f i nte c hma ga z i n e. com

138

Digital transformation in Saudi Arabia’s insurance industry WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

K ANE WELLER

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U N I T E D C O O P E R AT I V E A S S U R A N C E

Waheed Y. Khayyat, CIO of United Cooperative Assurance, discusses how his firm is utilising technology amidst transformation in the Kingdom of Saudi Arabia

W

ith the role of a Chief Information Officer (CIO) transforming on a daily basis due to the speed at which technology is evolving,

it has become, now more than ever, increasingly vital to embrace and leverage the latest trends 140

in order to achieve an edge over the competition.

For Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA), the importance of adopting and utilising new technologies such as Artificial Intelligence (AI), Data Analytics (including predictive analytics) and Blockchain ahead of rivals cannot be underestimated. “For these technologies to succeed in its implementation, and to realize their benefits and ROI for an organization, there is a great importance for talent and knowledge management. I believe those two key areas are necessary for any organisation in order to remain competitive,” he says. “The change in technology over the past few years is huge. Everyone’s talking about AI, IoT, data and data science all of a sudden.

However, just a few years ago, these weren’t big topics and IT departments inside organisations J U LY 2 0 1 9

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U N I T E D C O O P E R AT I V E A S S U R A N C E

“Digital transformation is everywhere and the question we have to ask ourselves is: are we doing it right?”

were still working in their traditional ways with legacy job roles. However, if businesses did nothing to keep up with these trends worldwide, and in the areas of talent management as well as the continuous education and development of their staff; they will lose their competitive advantage.”

Although it is a challenging and competitive market to operate in, Saudi Arabia is largely considered an exciting region in which to conduct business.

142

— Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)

With the Kingdom in the midst of the Saudi Vision 2030 initiative, Saudi Arabia is experiencing change unlike ever before as the country seeks to diversify economy away from solely oil.

“In general, Saudi Arabia and GCC companies have a magnificent opportunity and it’s really tempting for all companies to operate there,” affirms Khayyat. “There’s a big demand because people have become more digitally aware and eager to introduce technology to see more efficient services.” However, Khayyat believes there are clear challenges and restraints to operating in the Saudi market. “One of the main challenges to overcome in this region is that the regulations are a bit tougher here.

J U LY 2 0 1 9

143 This is in part down to the macroeco-

is lagging behind in terms of digital

nomic and macro-political complica-

transformation,” notes Khayyat. “When

tions in this region specifically.”

you compare it to other sectors,

Due to the emergence of digital

it’s clear that insurance still has some

transformation, the leveraging of new

digitalisation work to do ahead.

technology has influenced the

However, I expect to see the insurance

decision-making process of companies

space drive forward in terms of digital

in a variety of different industries. With

transformation over the next few years.”

the insurance space often considered

“Digital transformation is everywhere

slower to adopt new technology to

and the question we have to ask

advance its processes’ efficiencies,

ourselves is: are we doing it right?

Khayyat expects the insurance sector

It isn’t just about digitising some manual

to take great strides to catch up over

activities into digital forms using

the upcoming years. “Insurance is

the same processes.” he explains.

definitely one of the industries that

“We should consider that it’s about w w w.f i nte c hma ga z i n e. com

U N I T E D C O O P E R AT I V E A S S U R A N C E

“We completely believe in the power of innovation” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA) 144 re-engineering the whole processes and building them up freely by leveraging recent, and matured digital technologies.

We have to utilise new opportunities that they have made available, in addition to removing any waste and unnecessary complexities out of the processes.”

Due to the competitive nature of the industry, UCA prioritises innovation as it aims to take the ascendancy in the insurance space. “Innovation is a capability inside organisations that triggers change; it should be blended in the DNA and inside the lifeblood of the company,” affirms Khayyat.

J U LY 2 0 1 9

“In UCA, we believe that everyone is

together in focus groups to brainstorm

eager to change, but you can’t

ideas and drive success of change

implement change if you just keep

(using ADKAR Change Management

following the same old and traditional

Framework). With innovation acting as

ways. You have to be prepared to be

the catalyst, Khayyat believes the key

different – it’s vital. This means we

has been encouraging teamwork to

mustn’t forget to introduce new ideas

introduce the correct changes. “We

— that’s what will make us stand out.”

like to think outside the box. We sit in

In tandem with the development of

focus groups and hold brainstorming

a pro-change culture, UCA works

sessions with not just people from

E XE CU T I VE PRO FI LE

Waheed Y. Khayyat, CIO A professional and a leader in the field of digital and information technologies, with 20 years of comprehensive & consistent IT experience at a technology-driven enterprises in healthcare & insurance industries. As a ‘Chief Information Officer (CIO)’ giving a holistic insight and involvement at the ‘strategic’ level for planning and supporting the business strategy, and the business model of the organization. However, ‘operational efficiency’ is a another field of expertise, with long years of operational duties gave the dexterity of working at both sides ‘Strategy’ and ‘Operations’. This leadership capacity is a key success factor for organizations and a ‘must-to-have’ capability for their senior management level in order to gain sustainable competitive advantage that is required to achieve their mission, and objectives efficiently, and to overcome the market competitors.

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U N I T E D C O O P E R AT I V E A S S U R A N C E

146

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“In UCA, we believe that everyone is eager to change, but you can’t implement change if you just keep following the same old and traditional ways.You have to be prepared to be different – it’s vital” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)

mid dl e e a s t . b u s in e s s c hie f. c o m

wawf rw.f ic ai nte . b ucshma in e sga s czhie i n e. f. ccom om

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U N I T E D C O O P E R AT I V E A S S U R A N C E

IT but also from different business disciplines to work together and bring new ideas to the table and develop them,” says Khayyat. “I believe it’s part of the excitement of working at UCA and is a great recipe for success.

We have a real desire to innovate and bring change – we completely believe in the power of innovation.”

With the importance of forming good partnerships critical to the success of all companies, UCA has established a strategic business relationship with Hilal Computers. “Hilal is a really

A Leading Turnkey Systems Integrator for the Region Hilal Computer (HILALCTTC) part of Al Hilal Group is a leading regional information technology, consulting and business process services company. We harness the power of computing, automation, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized regionally for its comprehensive portfolio of services, strong commitment to sustainability and good customer relationship, with wide presence in the region (KSA, BAHRAIN, UAE). Together, we would discover ideas and connect each other to build a better future.

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Bahrain

|

KSA

|

UAE

149 supportive partner in terms of bringing

2009

Year founded

300

Approximate number of employees

in expertise and great technologies through its collaboration with the inventors and manufacturers on the infrastructure side,” he says. “When I started at UCA, I worked on the analysis and assessment of the counter space and found that the current infrastructure we had in place was outdated.

Having developed a new infrastructure, Hilal helped us generate real value from

HQ

Jeddah, Saudi Arabia

the new software we installed.”

With the journey still ongoing, Khayyat hasn’t overlooked UCA’s task of laying the groundwork before introducing new processes to enable success. w w w.f i nte c hma ga z i n e. com

U N I T E D C O O P E R AT I V E A S S U R A N C E

150

“We must keep aligning as we go – it’s the only way to maintain the sustainability of our transformation” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)

J U LY 2 0 1 9

“I believe Abraham Lincoln put it the best way when he said ‘give me six hours to chop down a tree and I will spend the first four sharpening the axe’ – and that is exactly what is happening at UCA,” explains Khayyat. “We spent a lot of time doing the planning, understanding and outlining the account processes as well as trying to design the new processes. We’re halfway through – our key goal is to be dynamic and ensure we’re a moving target. It’s difficult to guarantee that what you have planned is going to be used two or three years from now because of how quickly the world changes. This means, now more than ever, it’s important that we continue to monitor the real-time changes in terms of technology, both economic and industrial changes and make sure we continue adjusting and aligning our direction accordingly.

We must keep aligning as we go – it’s the only way to maintain the sustainability of our transformation.”

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Barclays Bank Mauritius: a digital transformation across the African financial sector WRITTEN BY

CATHERINE STURMAN PRODUCED BY

STUART IRVING

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B A R C L AY S B A N K M A U R I T I U S

Barclays Bank Mauritius is undergoing a significant supply chain transformation.Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius, tells us how…

T

here is a significant need to rethink the way in which procurement engages with the supply chain, particularly in the

African banking sector. As financial organisations take a greater look at the products they procure, 154

their source of origin and the difference they can provide to customers, technology is also playing a leading role in enabling the procurement and supply chain to become better aligned and support businesses more effectively.

“Procurement should not be looked at in isolation, especially with technology taking the lead. This way of thinking in procurement has helped me to really make a difference instead of being in the back seat,” states Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius. “The right procurement specialists and expertise is increasingly vital. As a procurement specialist on the island I have been active in making sure that we really make a difference. In this challenging environment we have technologies taking over exponentially.”

Noting that procurement has previously gained J U LY 2 0 1 9

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“ Procurement should not be looked at in isolation, especially with technology taking the lead” 156

— Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

a negative perception, recent improvements in legislation surrounding anti-bribery and corruption laws across Africa have fully transformed the banking landscape in relation to public procurement. Undertaking independent review panels, where procurement decisions can be challenged, as well as bid openings in public sector procurement, as well as the online submission of bids has reignited conversations as to how procurement can better support the financial sector as it continues to be transformed through digitisation. “I think we should now be moving towards online actions and applying a consortium

J U LY 2 0 1 9

CLICK TO WATCH : ‘BARCLAYS COLOURS OF LIFE’ 157 approach to buying common goods for

unlike many other supply chain leaders,

the government, ensuring that we spend

his career has been one which has

more time on strategic procurement, for

been meticulously planned out,

example. When it comes to Barclays,

becoming a member of the Chartered

there has been significant improvement,”

Institute of Procurement and Supply

adds Bachoonum.

(CIPS) back in the early 2000s. With

Throughout his decade long tenure

the ambition to become a professional

at Barclays Bank Mauritius, Bachoonum

buyer and supply chain specialist, he

has witnessed the procurement industry

remarks that while many find this

shift from being reactive to an increasingly

position to be somewhat thorny, it is

proactive and agile division, ensuring

one which enables individuals to orbit

that businesses remain resilient amidst

within organisations and gain a greater

the ever-changing demands of its

understanding of the internal customer,

customers. However, against such

the external supply base and the

seachange, Bachoonum explains that

supplier community. w w w.f i nte c hma ga z i n e. com

B A R C L AY S B A N K M A U R I T I U S

“It’s ensuring a balance between what

It is exciting and formed part of my

organisations are looking for and how

thought process when I wanted to build

to get things executed from the supplier

a career in supply chain management.”

community. The supply chain comes with procure, supply management, cost

DATA GENERATION

reductions, due diligence and negotia-

Throughout its procurement opera-

tion. If you look at the bigger picture in

tions, Barclays Bank Mauritius has

logistics and supply chain, it is a huge

worked to implement robust govern-

pipeline of value adding services so

ance around its buying processes, and

that it becomes very exciting,” he says.

has enhanced its privacy tools and

“The role touches every part of the

embedded new policies and standards.

economy, from logistics, distribution

Establishing a new way of buying and

and production, to manufacturing and

enforcing clear segregation between

fast-moving consumer goods (FMCG).

buying and the supply management

158

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functions has also provided a number

of goods and services in the near

of advantages in building strong

future at Barclays Bank Mauritius,”

relationships between teams.

says Bachoonum. “This has been

Additionally, from a technology

a gradual move. Being an island,

standpoint, accessing advanced

the level of sophistication and the

data analytics has seen the business

readiness of the supplier community

gain essential insight into various

is important. We should be pushing

trends in the market, where sophisti-

things that are aligned to the readi-

cated processes and electronic

ness and the culture that lies within

request (ERFx) solutions are now

the supplier base, which mainly

used not only for bidding but also

constitutes small to medium-sized

as a bidding solution.

organisations. However, we also work

“The system will also be used to execute E-auctions for certain types

with large multinationals for specific hardware and supplies.”

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CUSTOMISED SOLUTIONS By improving its spend management and analysis through technology, Barclays Bank Mauritius has taken a greater look at its suppliers in order to source ways to unlock greater efficiencies. “We are investing heavily in the right tools, making sure that we can extract data from the systems both from spend analysis perspective, but also from supply management perspective,” adds Bachoonum.

“Spend analysis is done on a monthly basis so that we can see whether we have any spend that is outside J U LY 2 0 1 9

the normal procure process. All data generated can be shared and we can show the factions where money is going. It’s important to have the relevant data to trigger the right decisions as to whether we outsource or bring solutions in-house.”

Such technological focus has also extended towards the company’s investment in a system which has enabled the creation of a central data repository, enabling automated reporting of high-quality regulatory

“ Being an island, the level of sophistication and the readiness of the supplier community is important” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

data which is sent to the Central Bank.

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B A R C L AY S B A N K M A U R I T I U S

With all information remaining increasingly time sensitive, the system has reduced ongoing risks of fines and incorrect submissions and poor-quality data being sent. “We had to invest in a solution, where we went through a selection process. Nelito Systems proposed a solution and has ensured that we are able to capture the right data, in the right format and in an automatic manner to the regulator,” says Bachoonum.

“I’ve been heavily involved in the negotiation of the contract to ensure 162

the bank is protected in terms of key attributes and requirements. These solutions can then be used across the organisation. However, it is challenging in the sense that we are negotiating with a supplier that has credentials for delivering projects outside of the country, but not in the country,” he adds. “Due diligence was quite strong to ensure that they could build a customised solution, and we could also agree on expectations on both sides.”

SUPPLIER RELATIONS Procuring for a global bank with such a strong reputation as Barclays has no doubt led to increased pressures J U LY 2 0 1 9

across the procurement and supply chain. To counteract this, Bachoonum has sought to support its limited supply base across Mauritius and support them in remaining compliant within all regulations and standards.

“With regards to data privacy, for example, we need to educate suppliers.

I have been involved in influencing suppliers, looking at what this investment in processes would provide as a yield, which will enable them to deliver similar goods and services to other high level organisations. There is a need to implement a proper way of measuring performance, and if things go wrong how to easily recover,” explains Bachoonum. “Some suppliers felt it was over-engineering, but I presented it as an investment that would greatly improve the way they deliver.”

The business is continuing to grow in leaps and bounds, yet the company has revealed that it is set to become part of one of Africa’s largest diversified financial services group in 2020.

Decoupling from Barclays after a century will see the business become fully part of Absa Group, one of the largest financial institutions in South Africa, which will lead to further advantages for the business. w w w.f i nte c hma ga z i n e. com

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“ Nelito Systems proposed a solution and ensured that we are able to capture the right data, in the right format and in an automatic manner” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

J U LY 2 0 1 9

“We’re very proud of the Barclays brand, and were aware that there would be a transition period,” notes Bachoonum. “It is a chance for us to become a regional bank instead of a global one. It’s a great opportunity for us to become a completely African driven bank. The business is very confident and is embracing the Absa brand. We need to create opportunities for our customers.”

Set to become a completely different franchise, the organisation remains passionate in reinforcing its strong roots within Mauritius. Bachoonum is incredibly positive on what the future holds for the organisation, where it will remain active on the main continent, look at new customer-led innovations, such as the mobile wallet, and explore further territories as part of its five-year plan.

“We want to really mark ourselves in the local market but also in the offshore market,” he concludes. “We have a plan, and we are moving steadily in the right direction to achieve our goals.”

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