FinTech Magazine - July 2020 by FinTech Magazine

How data, RPA and technology are driving customer-centricity www.fintechmagazine.com

JULY 2020

Data innovation in financial services

Global fintech hubs

THE RISE OF THE DIGITAL SAVINGS MARKETPLACE Raisin UK co-founder Kevin Mountford on how the experienceâ&#x20AC;&#x201C;driven digital savings marketplace is changing the sector

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FOREWORD

elcome to the July edition

of FinTech magazine.

Innovation can come in many

forms. Working in this industry, we understand this more than most. However, in this edition we look at one of the business models that is changing the financial services landscape: the digital savings marketplace. Specifically, we speak with Kevin Mountford, co-founder of Raisin UK. He discusses the rise of the business and how itâ&#x20AC;&#x2122;s customer-centric approach that is built around a desire

The issue continues with a strong narrative around innovation. For example, we meet Aidan Millar, Chief Data and Analytics Officer at DNB, who discusses the bankâ&#x20AC;&#x2122;s three-year journey to a data driven culture, and take a sweeping look at companies including OTIP, WSIB and Mastercard. More broadly, we consider how IoT innovation is changing the way in which financial services are delivered and take a closer look at why digital ecosystems could prove to be the foundation for accelerated insurtech innovation.

to ensure financial wellbeing for all, is becoming increasingly popular. The story of Raisin, he says, is really

Enjoy this issue.

about the rise of the savings marketplace and marketplace solutions. Mountford touches on innovation, how technology is changing the

Matt High matthew.high@bizclikmedia.com

customer experience and collaboration between fintechs, marketplace providers and incumbents. w w w.f i nte c hma ga z i n e. com

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PUBLISHED BY

PRODUCTION MANAGER

MEDIA SALES DIRECTOR

Owen Martin

James White

DIGITAL VIDEO PRODUCERS EDITOR-IN-CHIEF

Matt High

Kieran Waite Sam Kemp MARKETING DIRECTOR

CREATIVE DIRECTOR

Steve Shipley

Leigh Manning DIGITAL MARKETING MANAGER

CREATIVE TEAM

Oscar Hathaway Erin Hancox Sophia Forte Sophie-Ann Pinnell PRODUCTION DIRECTORS

Georgia Allen Daniela Kianickovรก

Shirin Sadr

DIGITAL MEDIA DIRECTOR

Jason Westgate CHIEF OPERATIONS OFFICER

Stacy Norman PRESIDENT & CEO

Glen White

DIGITAL MARKETING EXECUTIVE

Evelyn Howat PROJECT DIRECTORS

Andrew Stubbings Jake Megeary Jordan Hubbard

www.fintechmagazine.com

CONTENTS

62 64 82 WHY INSURTECH ECOSYSTEMS ARE DRIVING DIGITAL DISRUPTION

Global fintech hubs

114 WSIB

138 Mastercard

152 100

MSU Federal Credit Union

166 State Street

180 Monedo

178 Monedo Holding GmbH

194 Moneyfarm

OTIPâ&#x20AC;&#x2122;s technology driven, peoplefirst response to COVID-19 WRITTEN BY

GEORGIA WILSON PRODUCED BY

GLEN WHITE

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O N TA R I O T E A C H E R S I N S U R A N C E P L A N ( O T I P )

Stacey Rous, EVP & CFO at OTIP discusses the company’s people-first strategy, technology trends and its response to the impacts of COVID-19

hen it comes to the workforce at Ontario Teachers Insurance Plan (OTIP), Stacey Rous, EVP & CFO, shares that the organi-

zation understands that staying connected, whether with coworkers or senior leaders, is key. “Creating that sense of community at work is really important, 12

as is the ability to listen and evaluate opinions,” she says. “After anything we do as an organization, we ask for feedback to develop a safe space for people to talk about the organization in a collaborative way. This allows us to be both responsive and agile in an ever-changing world.” This mindset played a key role in OTIP’s response to COVID-19. Rous believes that relocating the majority of our workforce to home offices has been the biggest disruption to the company from the COVID19 pandemic. “We moved more than 600 people into home offices in less than two weeks, moving them onto a technology platform that is compatible with working from home. Protecting the health and well being of our employees was top of mind, but at the same time we managed to accomplish this task while maintaining our service to members.” J U LY 2 0 2 0

1977

Year founded

$1.5bn Revenue in Canadian dollars

500+ Number of employees

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Success begins and ends with people. We help organizations optimize the health and productivity of their people, through innovative and entrepreneurial solutions. Our technology, people and processes help organizations simplify administration burden and increase productivity, while providing industry-leading member support. benefits administration, Morneau Shepell takes a holistic approach to beneĂ&#x17E;ts retirement services, absence management and employee assistance. We provide the tools and expertise to help organizations solve complex problems to improve productivity and engagement, wellbeing,and and financial security.

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HR Benefits: Technology and Experiences that Exceed Expectations As the leading provider of technology-enabled HR services that deliver an integrated approach to employee wellbeing, Morneau Shepell has been a valued partner to OTIP since 2014. We continuously deliver innovative solutions to their members that support the mental, physical, social and financial wellbeing of their people. With unmatched industry experience, Morneau Shepell has been providing plan administration services for more than 50 years. We serve mid-sized and large clients, including complex organizations with multiple locations, across all industries, in both the public and private sectors. We support nearly 9,000,000 members through our administrative solutions and have an average client size of 15,000 participants in our North American Health and Welfare client group. Our teams of industry professionals and IT specialists are trusted advisors, subject matter experts and technology enthusiasts. We provide flexible and integrated benefits and pension administration solutions, employee and family assistance, health and wellness programs, and recognition and workplace learning solutions that support organizations in helping their people be healthy and engaged, all towards delivering measurable gains in productivity and results. Morneau Shepell’s proprietary benefits administration software is a highly configurable system designed to efficiently implement and execute client-specific provisions and processes. The complexity of benefits administration can be magnified and made prohibitively costly to organizations that lack the right technology platform. Our advanced enterprise technology provides a comprehensive and innovative single system for all benefit administration solutions, and is specifically designed to support complex organizations. Our highly flexible technology seamlessly integrates with clients’ existing platforms and infrastructures while providing the security and compliance that is absolutely crucial. Integral to our advanced platform is intuitive design and navigation so participants can easily interact with the system, and gain a benefits experience that meets their consumer technology expectations.

Paul Sywulych @ Morneau Shepell

Online self-service on any device is standard, with features and functionality covering all aspects of benefits and pension administration, including decision support tools and an AI virtual assistant. “Morneau Shepell has been partnering with us for over six years. They have helped OTIP through a digital transformation process by streamlining our benefits administration solution. The value of offering a single system to our members that simplifies the administration process and delivers the services that participants want and need has enhanced the experience for both administrators and plan participants. As our organization continues to digitally transform and grow, having a proven and reliable partner that understands our culture and truly cares about our members is invaluable.” – Stacey Rous, Executive VP and Chief Financial Officer, OTIP Now more than ever, organizations need a complete benefits administration solution that utilizes the latest technology and a single platform to improve accuracy and productivity, but also helps participants improve their lives. Morneau Shepell’s solutions deliver advanced technology for simpler, more cost-effective management that improves participant wellbeing, engagement and overall financial security. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. By improving lives, we improve business.

O N TA R I O T E A C H E R S I N S U R A N C E P L A N ( O T I P )

“ We are a people-first organisation. There will always be tweaks to how we work, but our core strategy of ‘people first’ has not and will not change” — Stacey Rous, EVP & CFO, OTIP

Achieving this incredible feat was not easy, and not done alone. Rous says that OTIP’s partners and stakeholders have been vital in adopting this work from home strategy. “Prior to COVID-19 we didn’t have the system capacity for everyone to work from home. We had been planning for 20 to 25%, but certainly not 100%. Our partners really stepped up to help us implement this capability once the healthcare sector was under control, allowing us to stay connected to our

employees and members.”

The OTIP Story CLICK TO WATCH

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1:53

E X E C U T I V E P R OF IL E :

Stacey Rous Stacey Rous is the Executive Vice President and Chief Financial Officer at OTIP, Ontario Teachers Insurance Plan. OTIP serves the education community across Ontario, providing health benefits and other insurance needs as a not-forprofit Trust. At OTIP, Stacey is responsible for Finance and IT strategy, including financial operations of the company and accountable for the Project Management Office. Stacey is an accomplished financial executive known for achieving financial and service benchmarks by creating a compelling vision, clearly communicating strategies and providing strong leadership. Over the years, Stacey has been helping insurance and health care organizations grow and improve member experience with her finance and operational expertise. She has more than 25 years of progressive leadership experience in operational finance. Stacey has provided executive financial leadership to the Waterloo Wellington Local Health Integration Network, Allianz Global Assistance and Cowan Insurance Group of Companies. Outside of her role with OTIP, Stacey is

actively involved in building strong partnerships with communities to make a positive impact on social issues such as social isolations, poverty, inequality and mental health. She serves on the Board of the YMCA for Kitchener Waterloo, the Canadian Mental Health Association for Waterloo Wellington and International Womenâ&#x20AC;&#x2122;s Forum Waterloo. She previously served on the IWF Canada Sponsorship Committee to raise funds for the IWF World Leadership Conference. Stacey is an MBA graduate from Athabasca University and holder of CPA designations in Canada and the US. Throughout her career, she has continued to seek educational opportunities and certifications that enhance her finance and operational capabilities, including: Chartered Professional Accountant (CPA, CMA) designation, Certified Public Accountant (US designation), Chartered Global Management Accountant (CGMA) designation and Advanced Health Leadership certification from the Rotman School of Management Executive Program.

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Brooklin Consulting: accelerating productivity with OTIP Brooklin Consulting is a management consulting organisation with worldwide experience in several leading industries. The firm helps companies overcome their unique business challenges, discover their greatest opportunities and achieve significant results. Brooklin Consulting has over 30 years of experience in global consulting, primarily focused on productivity improvement, strategic implementation and digital transformation. Brooklin Consulting specialises in achieving measurable results that improve their client’s performance quickly and efficiently. Michael Flemming is the Vice President of Brooklin Consulting. He leads projects to execute strategy and improve productivity, working with both senior leaders and frontline employees. Brooklin Consulting has formed a partnership with Ontario Teachers Insurance Plan (OTIP) to help improve productivity. Flemming believes this collaborative business partnership is essential and is the “archetype” of any successful consulting relationship. “We’re able to build trust, and work closely with every level of the organisation, which is the key to building solutions that drive the largest impact and are sustainable beyond the term of our engagement,” he says. “Every single change, large and small, is developed with the front-line managers responsible for the area. We work through the development and testing of solutions, but most importantly, we see those changes through to implementation. The collaboration between consultants and operating managers ensures changes are not just theoretical, but drive improvements in the real world.” When seeking to establish a mutually beneficial and sustainable partnership, Flemming has a clear idea of what he looks for. “We find that the most successful relationships are the ones where we collaborate through every step of the process, regardless if the problem is big or small,” he explains. “We’re prepared to work with clients through every step of the journey to find a solution that is going to succeed. Solutions developed together are always the most successful, and that is a key reason for the strength of our relationship with OTIP, and a key reason our projects have consistently generated 3:1 returns in their first year, while at the same time improving customer service and satisfaction.”

BizClik Media Interviews Michael Flemming, VP at Brooklin Consulting

Over the next few years, Flemming expects the future of Brooklin’s relationship with OTIP to continue to thrive as new technology shakes up the industry. “Organisations like OTIP need to be nimble and ready to change at a moment’s notice in order to stay competitive, and I expect key trends revolving around robotics and AI will push analytical decision-making to the next level and provide better quality to customers,” says Flemming. “We’ve been able to install a culture of continuous improvement with OTIP and help adopt those trends quickly and in a meaningful way. I believe the continued strength of our relationship will allow for those future opportunities to be adopted efficiently and robustly.” Stacey Rous, EVP & CFO at OTIP, says “The team at Brooklin Consulting has supported OTIP through several improvement projects over the past two years, each resulting in a significant return on investment. Their methodology has helped us transform our management operating system, allowing for better analytics, faster decision-making, and ultimately improved service to our members. Most importantly, they have helped our people to see challenges as opportunities, leaving behind an approach to continuous improvement that carries on internally beyond the term of their engagements. I would strongly recommend their services to organizations looking to improve their operations.”

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“ My best advice for girls and women looking to get into tech is to seek out a mentor or coach in the industry” — Stacey Rous, EVP & CFO, OTIP

the pandemic. “Our industry is under extreme financial pressure. People’s driving habits have changed, and there is an expectation that auto premiums will reduce accordingly. At the same time, the closure of things like dental offices and other health providers creates a mountain of questions for us and our members on how we handle things like claim limits, cancelled procedures and benefit premiums during and after the pandemic.” Rous believes that technology will be key as COVID-19 continues to change how organizations and the insurance

Rous adds that she is extremely

industry continues to operate. Post

proud of how OTIP’s employees have

pandemic, she says, a digital mindset

adapted, driving new ways of con-

should be seen as a way of doing

necting with its members, clients and

business, whether that be on-line

employees, but at the same time not

virtual doctor’s appointments, or using

exhausting them with the technology.

Telehealth and Telemedicine more

“Our members and our management

proactively. “COVID-19 should teach

teams are very accepting that there

us that it’s okay to do some things digi-

may be children in the background,

tally. We need to harness what we’ve

dogs barking or doorbell rings from

learned through this and not go back to

home deliveries, which previously

the old normal where it doesn’t make

would have been considered very

sense. Many of these technologies

unprofessional.”

are so powerful, and they will be cost

She adds that the insurance industry itself has not escaped impact from

effective for both our community and our healthcare system .” w w w.f in t e c hm a g a z in e . c o m

O N TA R I O T E A C H E R S I N S U R A N C E P L A N ( O T I P )

While Rous thinks that we are a long way from a post COVID-19 world, she does believe that “we are entering into a new normal and that the industry is going to have to settle. For me the future is about the financial stability of a company going forward. I think the finance and the tech folks are going to have their hands full for quite some time.”

TECHNOLOGY TRENDS IN INSURANCE Looking past the current pandemic, Rous highlights that digital innovation, 22

artificial intelligence (AI) and data are still the overriding trends in the insurance industry, adding that “these are the technologies that allow us better understand and service our members.” She details that, at the core, OTIP’s digital transformation strategy is designed to streamline communication and harness data analytics, using a data warehouse and data mapping to provide a seamless service to its members. “This is something that is still ongoing for us at OTIP. We have only just scratched the surface of this journey, however, the recent hiring of a new director of data and digital technologies supported by a dedicated team is going to allow us to really grow this potential.” J U LY 2 0 2 0

“ COVID-19 should teach us that it’s okay to do some things digitally” — Stacey Rous, EVP & CFO, OTIP

When it comes to adopting innovative technology to drive this strategy, Rous explains that the organization started using robotics in collaboration with RPAI and Blue Prism Software. “We were one of the first in Canada in 2016 using robotics to reduce the amount of non-value-added tasks from our people,” she explains. For OTIP, Rous continues, the use of robotics is seen as an extension of its workforce. “Our employees like it because they can focus on the valueadd work for our members.” Rous continues, saying that even though OTIP was one of the first in Canada to use robotics, it was doing very small projects. “We were more in the investigation stage, using it to understand how our members wanted to do business with us. Now, with our new director and dedicated team, we are ramping up our innovation and adoption of robotics for automation.” With regards to developing these technologies, Rous stresses the importance of strategic partnerships. “Our strategic partnerships with Rogers, our internet provider, or Central Logic, lay the foundation and w w w.f in t e c hm a g a z in e . c o m

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our insurance partners like Morneau,

“From a woman in tech perspective, we

Manulife, Economical and Aviva, are

have a number of BSA and data spe-

all intertwined. We don’t want to build

cialists – at least 50% – that are women,

our own tech, we want to build our own

which we are doing very well in,” she

intelligence around our members with

explains. “On the traditional side of

the help of the technology our strategic

tech, such as networking systems, the

partners provide. You don’t need to

figures are slightly less with about 25%

own those technologies, you need to

being women.”

leverage those technologies.”

Outside of the working environment, Rous explains that the organization has

WOMEN IN TECH

key people helping young girls learn

Rous believes strongly in the inclu-

code, known as girls for coding, to

sion of women in tech, a mindset that

promote females joining the industry.

is shared by the entire organization.

“However, I think it is still a generation

OTIP Sponsorship of Schools Projects and Initiatives CLICK TO WATCH

1:54

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O N TA R I O T E A C H E R S I N S U R A N C E P L A N ( O T I P )

away. Currently schools are working

is about finding people who you trust

to get the materials needed to show

and are willing to help you navigate the

girls the opportunities within the STEM

challenges you will face in this industry.

industry, but it is going to take time for

Don’t try and do it alone. You need

young girls to see themselves as coders.”

people out there advocating for you.”

Rous, seen by many as a leader and a mentor herself, shares that she did

WHAT THE FUTURE HOLDS

not get where she is today by herself.

Returning to the organization’s strat-

“My best advice for girls and women

egy, Rous reiterates that regardless of

looking to get into tech is to seek out

COVID-19 or changes in technology,

a mentor or coach in the industry. I

OTIP’s member-first approach has not

cannot underscore the importance of

changed. “We are a people-first organi-

finding people to help you through your

zation. There will always be tweaks to

career. Gender isn’t important here. It

how we work, but our core strategy of

J U LY 2 0 2 0

‘people first’ has not and will not change.” Throughout the pandemic, OTIP has been active in the communities it serves, donating more than $250,000 to food banks and mental health associations across Canada. “I’m on the Canadian Mental Health Association of Waterloo Wellington and a recent study highlighted that 70% of us are feeling isolated due to that lack of connectivity, which is having a detrimental effect on all our mental health right now.” In addition, she continues, 70% of those same survey respondents said they were concerned about becoming

“ The recent hiring of a new director of data and digital technologies supported by a dedicated team is going to allow us to really grow this potential”

sick from COVID-19, or losing someone close to it. “This crisis remains at the top of everyone’s mind. Given the corresponding mental health challenges we are going to see from an industry perspective, we need to be ready to help the people that maybe unwell, and be there for both employees and members to help them.”

— Stacey Rous, EVP & CFO, OTIP

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FINTECH

Raisin UK: the experience driven digital savings marketplace WRITTEN BY

MATT HIGH

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FINTECH

Kevin Mountford, co-founder of Raisin UK, discusses the rise of digital marketplace solutions and the importance of customer experience

oney. It drives many of the most important decisions we make and has the power to change our lives – for better and for

worse. Financial health, financial management and a focus on the greater use of technology to help us make those important decisions is one of the overriding trends currently driving innovation in 30

financial services. And yet, according to research by Raisin UK, more than 18 million people in the UK admit that concerns, anxieties or thoughts around money and financial wellbeing keep them awake. Several innovative technologies, companies and business models are addressing this problem in a customer-centric way. One is the savings marketplace model, of which Raisin is a leader. The concept of the marketplace model is nothing new, but it is, says Raisin UK’s Kevin Mountford, a model that is on the rise. “The story of Raisin is very much the story of the rise of the savings marketplace and marketplace solutions,” he explains. “Financial services and technology have had a close relationship for years, but that’s really taken a completely different meaning in more recent

J U LY 2 0 2 0

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FINTECH

“ It’s a really interesting time in terms of how technology is helping people to interact with financial services”

Open Banking and so on – but that has really accelerated more recently with a greater focus on the end user. Service and experience is a great driver and there’s a real evolution for the consumer happening. When Raisin GmbH began operations in Germany, for example, there was a clear understanding that the business had to have a tech-driven proposition but the

times,” he continues. “It’s not a rev-

ambition was very clear: to help sav-

elation to say that, in the broadest

ers across Europe to make the most

sense, the world of fintech has been

of their finances – technology is really

revolutionary in the industry – even

just a foundation to achieve that.”

more so with things like the rise of

For Mountford, this focus is in part driven by the inherent goal within Raisin of helping people with their finances, but he also recognises the broader shift of consumers embracing digital technology. “The way the people consider their finances is

J U LY 2 0 2 0

Learn more about Raisin as an employer CLICK TO WATCH

2:09

33 changing,” he explains. “One question

a level of personalisation through

I’m often asked is ‘what will the world

their technology that is crucial in the

of finance look like in five or 10 years?’

long term. “Despite this, the chal-

and it’s difficult to predict – I think it

lenge for them will be building on the

was Bill Gates, for example, who said

breadth or depth of that relationship

that we need banking but we don’t

and bringing customers into a more

need banks. You look at traditional

profitable environment in the long

banks and incumbents in today’s

term,” he adds. “Ultimately, consum-

market and it’s a difficult position to

ers are interacting with different

be in. They’re improving significantly

companies and models for different

in terms of how they interact with

reasons. The customer is in control;

customers, but it’s very difficult with

whatever you do, it has to be deliv-

legacy systems.”

ered in a way that genuinely earns

In contrast, says Mountford, challenger and neobanks are able to offer

the rights of that customer’s loyalty over time.” w w w.f in t e c hm a g a z in e . c o m

FINTECH

RAISIN: HELPING PEOPLE SAVE

than 30 countries and serving more

Raisin, and subsequently Raisin UK,

than 240,000 customers with the

uses innovative technology to help cus-

ability to view, purchase and manage

tomers save time and money through

multiple savings accounts.

its online savings marketplace. The

Mountford is co-founder of the

UK subsidiary of the business was

business, and has been at the helm

founded in 2017 as part of Germany-

of Raisin UK since the German parent

based Raisin GmbH, one of Europeâ&#x20AC;&#x2122;s

acquired Plan B Funding, a startup

most successful technology-led finan-

consultancy and marketing business

cial services businesses active in more

he established that specialised in

J U LY 2 0 2 0

“ The story of Raisin is very much the story of the rise of the savings marketplace and marketplace solutions”

with Starling Bank, for example, and another company called Meteor Asset Management; we have 14 banks in total and more than 40 products. As for how our technology works differently for savers, if you look at the pre-Raisin

assisting banks to raise retail deposits

world you see an environment where

across Europe. He explains: “That com-

customers mainly interact directly

pany grew well but, around late 2016,

with their core banks, albeit with some

we recognised the need to change the

exceptions for things like credit cards

business model and also at the same

or loans. We wanted to provide some-

time, to seek funding opportunities.

thing very different to this in the UK, and

“Coincidentally, around then I’d had

indeed more broadly across Europe.

several meetings with the Group CEO

The model is very simple; we allow

and some of the team at Raisin. I was

customers to make a single applica-

aware that they were keen to build a

tion, run a single regulatory check and

presence in the UK and I could already

deposit their money, which they can

sense that they and their business

then deploy across a number of banks

model were gaining real momentum in

and products.

the wider marketplace,” he continues. “But, it’s also a business that’s based very much around people and, within that, there was the clear B2C aspect with the aim of being a real consumer champion in the cash savings space.” Mountford elaborates on the Raisin model: “It’s a very solution-minded approach,” he explains. “Today, Raisin has more than 90 partner banks on board – in the UK we work w w w.f in t e c hm a g a z in e . c o m

FINTECH

“There’s an obvious time-saving

That analysis, Mountford explains,

aspect to it, but there’s also a hygiene

is due to the company’s use of data that

or financial health aspect too – there’s

informs Raisin’s proposition. Other

total transparency and visibility over

technologies that the company

any savings portfolio and the freedom

employs include automation and

to manage that portfolio as they saver

automated account sign up solutions,

wishes,” Mountford continues. “The

and an advanced API that can enable

really beneficial thing to our technology

the exchange of customer data

in particular is that we can see the dif-

across the company’s dashboard.

ferent behaviour within the marketplace

“The key to the customer aspect of it,”

and analyse what our savers are doing.”

says Mountford, “is the online bank-

“ The customer is in control; whatever you do, it has to be delivered in a way that genuinely earns the rights of that customer’s loyalty over time” J U LY 2 0 2 0

ing systems that we have developed. So, once the customer has registered they are active in a very secure environment that lets them transact, interact with products and service – it’s a true ecosystem model.

“Regardless of the banks or other

competitive market. On the contrary,

parties that we work with, the cus-

he explains, it’s healthy for Raisin

tomer always sits at the top of the tree.

and other businesses due to its rais-

When you consider the service that we

ing awareness to the marketplace

offer, that just has to be the case, you

solution for consumers. “In most

cannot have any failure or problems

cases the market requires some sort

when it’s based around helping people

of collaboration,” he explains. “The

with their money. We understand the

partners that we have are critical

different stages that customers go

because for us to achieve our end

through and there’s an optimal perfor-

game and help savers there has

mance aspect to everything that we

to be a really long-term strategy

consider. If the components are work-

in terms of those relationships.

ing to that level, then it’s a no brainer

“Increasingly now, some of the

for the customer. That’s why the mar-

larger players are recognising that

ketplace model is growing.”

they need to diversify and the likes

Despite that rise, Mountford isn’t intimidated by an increasingly

of Raisin give them a ready-made solution for doing that,” he continues. w w w.f in t e c hm a g a z in e . c o m

FINTECH

“ Once the customer has registered they are active in a very secure environment that lets them transact, interact with products and service – it’s a true ecosystem model”

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“There’s no cost of onboarding, other than time and assets, there’s no license fees, so it’s zero risk in that respect.” The benefits to the marketplace model, then, are clear for both banks and consumers. For Mountford, the plan for Raisin UK is to build on that foundation and continue with its already healthy pipeline of banks. “It’s recognition of the presence we’ve created in the market. We’re looking to double the number of banks that we have and continue to attain some of those larger players. We’re also considering new areas, such as ethical propositions, which are becoming popular with consumers. It’s a really interesting time in terms of how technology is helping people to interact with financial services, I think it will continue this awakening of the industry to the fact that the consumer has more power – that fact is greater than it’s ever been.”

w w w.f in t e c hm a g a z in e . c o m

J U LY 2 0 2 0

DNB: Data Innovation in Financial Services WRITTEN BY

WILLIAM SMITH PRODUCED BY

JUSTIN BRAND

w w w.f in t e c hm a g a z in e . c o m

DNB

Aidan Millar, Chief Data and Analytics Officer at DNB, discusses the bankâ&#x20AC;&#x2122;s three-year journey to a data driven culture

NB is Norwayâ&#x20AC;&#x2122;s leading financial services provider with a market capitalisation of NOK 258 billion at year-end 2019;

it is not just leading in regard to size, but also with its progressive data driven digital transformation program. In a Finalta benchmark analysis of the 42

international banking sector, DNB was ranked number one in the world based on the efficiency of its branch network. Over the last 15 years, DNB has gone from having 550 branch offices to 57. The mobile bank has gone from a hundred thousand visits a year in 2010, to almost a million daily customer interactions in 2019. The success of the channel shift is remarkable. Digitalisation is continuing to fuel an explosive growth in data, bringing new challenges and opportunities. For DNB the imperative is, and will always be, to stay relevant to customers in their daily digital lives. DNB recognised early on that it is important to capitalise and store data in a safe and secure manner. DNBâ&#x20AC;&#x2122;s ability to protect and extract insight from data not only has the potential to create better and more relevant customer experiences, J U LY 2 0 2 0

Aidan Millar w w w.f in t e c hm a g a z in e . c o m

DNB

“ Customers are talking to us every second on our digital channels – we just need to listen” — Aidan Millar, Chief Data and Analytics Officer, DNB

talking to us every second of the day on digital channels and must have the ability to listen and respond effectively to their needs,” he told us at the time.. This is the challenge of digitalisation that he believes is too often overlooked. “Everyone talks about going digital, but if you’re not capitalising on data streams that are generated through

but also to form the basis for new data

your digital channels, then you’re

driven business models. This is the new

going digital without listening.” Millar

reality for digital businesses.

explained that his role as the CDAO

In a previous article back in early

is to leverage digital interaction data

2019, we talked with Aidan Millar, the

to reconnect and stay relevant to our

newly appointed Chief Data and

customers on digital channels. We

Analytics Officer. “Our customers are

reconnected with Millar to see how far DNB have come on their three-year data transformation journey and to share any lessons learned on the way. After two years, Millar remains highly energised in his role as the Chief Data & Analytics Officer (CDAO). “It has been hard work, but a lot of fun, DNB

J U LY 2 0 2 0

DNB & Infosys on challenges faced by the Financial Service Industry CLICK TO WATCH

3:00

45 is now in the final leg of a three-year

changing how people think and act

DNB data transformation agenda and

towards data.

I feel that we are well positioned as a

Data is a challenging and formida-

front runner when it comes to data and

ble topic. “It is easy to underestimate

advanced analytics.” Millar says. “My

the amount of communication that’s

role as CDAO is focused on communi-

required to inform people on ‘the why’

cating the art of the possible and the

when it comes to data and analytics.”

need to inject more ‘I’ into IT solutions

It’s a challenge Millar likens to a musical

– going digital to the core. That means

orchestra. “You can make the anal-

understanding your data assets, and

ogy of the CDAO being a conductor,

how data flows through digital busi-

a Data Maestro. When you first arrive,

ness processes.” While strategies and

the organisation (the orchestra) is

detailed plans are important, Millar

playing out of sync! There’s a lot of

reiterates the importance of start-

people doing what they think is right, it

ing with promoting a ‘Data Culture’;

is a cacophony of un-orchestrated silo w w w.f in t e c hm a g a z in e . c o m

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Think Differently about Data-Driven Transformation Whether you are a bank, insurer or an emerging fintech, you have recognised the need and value of having a data-driven operating model. Your customers expect all their interactions with you to be joined up, relevant and hyper-personalised across every digital touchpoint. And it goes without saying that you need to accomplish this in an ethical and

Bill Bruno @ D4T4

legally compliant way. Undertaking the transformation to reach your digital utopia or ‘North Star’ is a journey that most enterprises have started but few have completed. Here in our newly published whitepaper Think Differently about Data Driven Transformation, we introduce you to a model we have developed which has identified the five stages to digital maturity. This model is inspired and informed by the transformation

About Celebrus: Celebrus is the leading instant data capture and customer profiling solution from D4t4 Solutions, and it provides the most complete view of your digital customer in the industry today without any JavaScript tagging needed. It has four core competences: ✓ behavioural data capture ✓ creation of detailed customer

journeys of many of the world’s largest retail banks

profiles augmented with your other

and insurers who are Celebrus clients generating

1st party solutions

millions of dollars annually in incremental profit. You can use it to help benchmark where you are on your journey and discover what still needs to be done to navigate to a fully automated, insights-driven, experience for all your customers across every channel. If you prefer to hear direct from a real world client then join us for a webcast this month where Aidan Millar,

✓ millisecond data connections to best-ofbreed enterprise systems ✓ enterprise grade security and control features to ensure 100% compliance Celebrus is trusted by DNB, Norway’s largest bank, and 60+ major financial services organisations around the globe.

awesome personal insights into the data-driven

Get in touch for an informal chat about your transformation ambitions with our team of

transformation journey he has envisioned and led

friendly data experts :

CDAO for DNB, a Celebrus client will share some

at DNB Bank:

DNB

D N B S TAT S

1. 2.1 million personal customers.

thinking and behaviour, when it comes to data.” Millar explains. “The priority in a CDAO leadership role is to bring structure (the plan – the musical score),

2. 1.5 million internet banking users.

the organisation (people – the play-

3. 1 million mobile banking users.

(enabling data tools – the instruments)

4. 221,000 corporate customers. 5. 258 million payment transactions in 2019.

ers) and the right systematic solutions and most importantly the culture (the passion for data) to the table.” Millar underlines the importance of simple messaging when developing your CDAO plan and story line – it must be put into a digital business context,

J U LY 2 0 2 0

“ We have to stay relevant and add value to customers in their daily digital lives” — Aidan Millar, Chief Data and Analytics Officer, DNB

The second leg (2019) was all about operationalising processes and ways of working – ‘Making it Stick’, this was

so it is easy for business leaders to

the hardest part,” Millar says. “The final

relate. “It all starts with people and

leg (2020), ‘Grow the Bank’, is all about

organisational culture. Culture eats

capitalising on shared data assets,

strategy for breakfast every time,

new data models and advanced ana-

you have to fuel your enterprise data

lytics to generate top line revenue

strategy with an organisational

growth and data driven efficiencies.”

passion for data,” says Millar.

2019 was the year DNB capitalised

“The first leg of the DNB three-

on the opportunities that came with

year transformation (2018) was

building customer channels and ana-

focused on ‘Protecting the Bank’.

lytics capabilities in the cloud; including

E X E C U T I V E P R OF IL E :

Aidan Millar Title: Chief Data and Analytics Officer Industry: Financial Services

Location: Norway

Passionate about the positive disruption of technology and advanced analytics on the financial services industry, Aidan is an experienced leader with the courage to make things happen. He offers 30+ years of professional experience – with eight years of top-tier consulting experience complemented with 22 years’ industry experience delivering sustainable change within large financial services organisations. w w w.f in t e c hm a g a z in e . c o m

Data Intelligence: > Trust your data > Democratise access > Empower innovation to transform your business.

For more information, visit collibra.com Collibra is the Data Intelligence company. We accelerate trusted business outcomes by connecting the right data, insights and algorithms to all Data Citizens. Our cloud-based platform connects IT and the business to build a data-driven culture for the digital enterprise. Global organizations choose Collibra to unlock the value of their data and turn it into a strategic, competitive asset.

Your customers are talking to you every second of the day via digital channels. Are you listening? The right way to connect to the digital customer through data

The way people bank and how banks

With the appointment of Aidan Millar

provide immediate business value was

provide services to customers has

as the bank’s Chief Data and Analytics

crucial to validating the company’s data

changed. Commercial banks need to

Officer, DNB launched a three-year

strategy.

evolve to bring customers value and a

data strategy aimed at reconnecting

better customer experience.

with its customers. In year one the

Year three will allow Aidan and his team

focus was on cultural transformation

to start having fun and see the fruits

Digital savvy financial institutions

– requiring people to understand the

of their labour as the real added value

are demonstrating that growth is

data strategy, commit to its success

for customers will be delivered and the

achievable by adapting their offerings

and embed a data culture into the

customer insights will allow the much

to meet the customer demand,

organisation.

sought-after reconnection.

Year two focused on the technology

Listen to the conversation with Aidan

infrastructure and new tools and

and Steve Neat, VP in EMEA, to hear

DNB Bank is on a mission to reconnect

techniques. To better understand

how DNB Bank is harnessing data to

with its customers through its mobile

how data is being used, DNB opted

deliver business transformation and

bank, which increased from 700,000

for data governance and data catalog

innovation.

visits to 17 million visits per month in the

products on the Collibra platform.

last three years.

Finding the use cases that would

drive engagement and build trusted relationships.

“I think data is central to everything we’re doing in DNB.” - Aidan Millar, Chief Data & Analytics Officer, DNB Bank

DNB

DNB & Infosys: A Partnership beyond commitment CLICK TO WATCH

J U LY 2 0 2 0

3:57

“ My role as CDAO is focused on communicating the art of the possible and the importance of injecting more ‘I’ into IT solutions – going digital to the core” — Aidan Millar, Chief Data and Analytics Officer, DNB

w w w.f in t e c hm a g a z in e . c o m

ENABLING RESILIENCE WITH DATA AND INSIGHTS

Make your #DataDoMore

Infosys enables enterprises to be data native, digital native so that they compete, respond in real-time and win in a data economy with connected ecosystems and innovations that disrupt industry boundaries, leading to new experiences, new efficiencies, and new revenue models.

Visit www.infosys.com to know more.

ÂŠ 2020 Infosys Limited, Bengaluru, India.

“ Our analytics capabilities are focused on delivering the right product, at the right price, through the right channel, at the right time” — Aidan Millar, Chief Data and Analytics Officer, DNB

One area that has benefitted from such insights is the continued development of DNB’s online and mobile digital services. “We’re looking at digital channel interaction data to assess customer journeys on our digital channels using a leading-edge real-time digital capture solution,” Millar explains. “We can assess whether our digital channels are aligned to customer preferences

a new DNB mobile bank, a savings

and continuously improve the digital

app Spare, DNB Puls a management

experience.” The platforms can also

tool for small and medium-sized

be optimised to deliver highly tailored

enterprises and IPA Insight Platform

digital offerings to meet anticipated

for Analytics to support data driven

customer needs and wants, he says.

actionable insights. All this advanced

“Our analytics capabilities are focused

technology underpinned by data and

on delivering the right product, at the

analytics is taking digital customer-

right price, through the right channel,

centricity to the next level.

at the right time,” says Millar.

w w w.f in t e c hm a g a z in e . c o m

DNB

“ We work closely together with our vendors to foster a trusted-partnerships where we co-create and deliver value together” — Aidan Millar, Chief Data and Analytics Officer, DNB

J U LY 2 0 2 0

With the foundations in place, numerous tangible data-driven projects have come into effect – with data compliance and ethical considerations always at the top of the agenda. “Everything we do at DNB is not just compliant, it’s ethically compliant. We’re a trusted financial custodian and now a trusted data custodian; and must not break that trust. Doing the right thing for our customers, is a core tenant of everything we do at DNB. DNB’s ability to extract insight from data not only has the potential to create better and more relevant customer experiences, but also form the basis for new data driven business models.” Millar elaborates on a variety of projects that capitalise on data and ensure that DNB stays relevant in the daily digital lives of our customers. “DNB is starting to harvest the value of data in a compliant and ethical way.” One such project involved an advanced online chat-bot, enhancing service quality and efficiency thanks to sophisticated natural language processing solutions to improve the digital services provided to our w w w.f in t e c hm a g a z in e . c o m

DNB

The next frontier for DNB & Infosys CLICK TO WATCH

5:17

customers. Millar continues, another focuses on leveraging real-time digital behaviour to identify possible fraudulent digital activities on customer accounts or providing relevant digital offerings. DNB has also deployed new innovative data driven products that provide market-based analysis and benchmarking J U LY 2 0 2 0

“ COVID has accelerated digitalisation and the realisation that data and analytics is the new normal” — Aidan Millar, Chief Data and Analytics Officer, DNB

1822

Year founded

€5.5bn+ Revenue in euros (2019)

9,336

Number of employees (2019)

to small business and large corporates.

The data itself is managed within

DNB has also played an important role

DNB’s multi-cloud solution. “From a data

in supporting Norwegian society and the

perspective the cloud platforms provide

Government during the pandemic, by

highly secure, massively scalable and

providing contextual data insights (at an

agile delivery solutions,” says Millar. The

aggregated level) to assess the impact

cornerstone of DNB enterprise data and

of the crisis and remediating policies

analytics platform, Millar says, has been

on the economy.

the establishment of DNB’s advanced w w w.f in t e c hm a g a z in e . c o m

cloud-based data science laboratory

Infosys as the strategic data part-

(IPA) which provides the analytics

ner leveraging their capabilities and

capability and the technical scalability

accelerators related to shaping data

to over 40 data scientists across the

strategy, data governance tooling,

organisation. Millar is quick to add that

analytics tooling and data engineering.

DNB takes a holistic approach to its

When it comes to managing this array

vendor partnerships, representing

of vendors, Millar believes that DNB’s

a break from the approach the sector

approach promotes reciprocity. “I see

has taken in the past. DNB has taken

our technology solution vendors as

a different route, bringing in the flex-

trusted solution partners,” he says.

ible, best of breed solutions: R-Studio,

“We work closely together with our

Jupyter Notebook, Spark, Neo4j

vendors to foster a trusted-partner-

among others, for their data science

ships where we co-create and deliver

capabilities; Trillium for data quality

value together.”

and Collibra for its crowdsourcing,

DNB’s data transformation remains

‘business orientated’, data governance

on course, despite the headwinds of the

toolset; and the Celebrus platform

COVID-19 pandemic. Millar believes

from D4T4 for real-time, tag-free data

DNB has been well positioned to cope

capture across our digital channels;

with the challenges of the pandemic

“ 2020 is the year for DNB to harvest the value of data and be even more relevant to our customers in their daily digital lives” — Aidan Millar, Chief Data and Analytics Officer, DNB

and the next frontier of digitalisation. “The investments made in data, underpinned by a data driven culture have enabled DNB to respond to these types of global crises much more effectively.” Millar has observed that IT solutions now have data and information at the core. “2020 is the year for DNB to harvest the value of data to be even more relevant to our customers in their daily digital lives,” says Millar. “Looking forward, our w w w.f in t e c hm a g a z in e . c o m

DNB

‘Next Frontier’ data strategy centres

time and resources required to com-

on the concept of connected data eco-

municate. To be effective, a CDAO

systems, ‘Wide Data’ and the adoption

must communicate, communicate,

of advanced AI solutions to continue

communicate and constantly refine

to optimise service delivery.”

the messaging to be relevant to the

As a final question, we asked Millar

audience. You cannot overcommunicate

if there was one thing he would do dif-

when it comes to the importance of data

ferently if he could take a step back in

and analytics in new digital business

time… “What mistakes did I make…that’s

models,” he concludes.

what you want to know!” Millar chuckles.

The focus on reconnecting with cus-

“I would stress the importance of invest-

tomers, not only to deliver added value

ing in an effective data literacy training

but also to generate impactful insights

program and not to underestimate the

to steer strategy effectively, is bolstered

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“ Promoting a data driven culture – to change the way people think and act towards data is all about communication and reframing the conversation to be business relevant” — Aidan Millar, Chief Data and Analytics Officer, DNB

by Millar’s focus on maintaining DNB’s reputation as a trusted data custodian. Through the application of data analytics and advanced technologies to optimise both internal efficiency and the customer experience, DNB is well on its way to maximising the value of the bank’s digital transformation to become both a trusted financial and data custodian.

w w w.f in t e c hm a g a z in e . c o m

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

HOW IOT IS DIGITALLY TRANSFORMING PAYMENTS WRITTEN BY

J U LY 2 0 2 0

HARRY MENE AR

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

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

IoT technology is powering a global revolution in the payments space, and here we explore some of the companies at the forefront of this trend

he global financial services sector is undergoing a period of significant

transformation. In particular, the digital payments space is in the

midst of a rapid evolution, pulled by growing

customer demand for easy, interconnected 66

payment solutions, and pushed by a rising tide of powerful new technologies. Alongside increasingly advanced data analytics, artificial intelligence (AI) and cloud-based digital architectures, one of the areas of technology poised to have the biggest impact on this sector is the Internet of Things (IoT). IoT is a term used to describe a wide variety of devices beyond those that we traditionally think of as being capable of connecting to the internet. From connected cars and Samsungâ&#x20AC;&#x2122;s smart fridge to powerful sensor relays inside active volcanoes, IoT devices are increasingly integrating an already connected world. The implications are astounding, and adoption is progressing at an incredible pace. J U LY 2 0 2 0

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

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The IoT revolution is happening so

back in 2018, and by 2025, that number

fast, in fact, that it’s proved hard for

will grow as high as 64 billion.Statista’s

analytics to pin down exactly how fast

research points to there already being

it is. According to a Business Insider

more than 22 billion IoT devices con-

report, at the beginning of 2019, there

nected to the web today, and Hogan

were an estimated eight billion IoT-

Lovells’ analysts believe that number

enabled devices active around the

could grow beyond 75 billion by 2025.

world. By 2027, they predict that figure

In short, the growth of IoT is already

will reach 41 billion. According to 451

so massive that it's impeding market

Research, the number of IoT devices

visibility. What we know for sure is that,

globally will expand from 7.9 billion in

over the next decade, it’s only going

2019 to 13.8 billion in 2024 – a much

to get bigger and faster. It’s estimated

slower rate of adoption. According

that, by 2022, global spending on IoT

to global consultancy McKinsey, the

technology could reach as high as

planet already hit 10 billion IoT devices

$1trn. While IoT is seeing widespread

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

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

adoption everywhere right now, from

using customer and contextual data to

healthcare to meteorology, financial

make better, more informed decisions

services and fintech appear to be

for hundreds of years. The more data

one of the areas most readily tack-

an organisation can gather, the better

ling adoption.

it can protect its interests and create

From providing granular data points

value for itself and its customers. In a

(and therefore more personalised

sense, the proliferation of IoT devices

customer experiences) to increasingly

is just more of the same. Today, 3.5 bil-

personalised and integrated customer

lion people own and use a smartphone

experiences, IoT has the potential to

which collects massive amounts of

supercharge the fintech payments

data from a single endpoint. In fact,

space and dramatically reshape the

the rate at which we as a species cre-

industry. Here, we explore some of

ate data is exponentially increasing.

the biggest applications for this new

Itâ&#x20AC;&#x2122;s estimated that 90% of all the data

â&#x20AC;&#x153;Internet of Payments (IoP)â&#x20AC;?, and the

in the world was created in the last two

companies turning this powerful new

years. IoT devices may help us pro-

technology to their advantage.

cess payments, monitor metal fatigue and know when to order printer ink,

DATA-DRIVEN FINANCE

but all those applications are, at their

The financial services sector has been

core, data gathering. IoT devices are sensory endpoints that collect information about the world around them. With the number of IoT devices set to increase dramatically over the coming decade, the amount of data available to everyone from retailers to insurance agencies is set to experience another exponential hike. In the fintech sector, this information is expected to be invaluable.

J U LY 2 0 2 0

71 According to Jordan McKee at Forbes,

revolves around privacy and informa-

“longer-term, the latent – and more

tion security. As the amount of data in

lucrative – IoP revenue opportunity will

the world grows – and companies take

be found in harnessing the explosion

further steps to harness and capital-

of new data inputs that can provide

ise on the value of that data – global

deeper and more granular insights on

cybersecurity efforts need to keep

customer behavior. The opportunities

pace with increased risk and higher

for new data streams generated by IoT

stakes. In 2018, the Mirai botnet attack

devices and sensors are endless and

saw teen scammers take advantage

will serve to bolster decision-making

of insecure IoT devices to effectively

accuracy in areas ranging from fraud

take down the internet across much of

prevention to ‘know your customer’

the eastern United States. Companies

(KYC) requirements, to lending to tar-

– particularly in the finance and pay-

geted offers and recommendations.”

ments sector – need to recognise

One of the most important ongoing conversations in the world of tech

that increasing IoT capabilities means increasing security as well. w w w.f i nte c hma ga z i n e. com

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

Agentless Device Security (from Armis) CLICK TO WATCH

1:45

72 A BO U T ARM I S

Founded in 2015, Armis is a silicon valley cybersecurity firm focused on IoT threat prevention. “The promise of productivity and collaboration with all these new devices can only come to fruition if they are safe and secure,” commented Yevgeny Dibrov, CEO & Co-Founder of Armis. Dibrov’s company provides IoT security solutions to the finance, healthcare,

J U LY 2 0 2 0

manufacturing, retail and smart city development sectors. The Armis platform is the first agentless, completely passive security platform to tackle the IoT security space, using the company’s unique technology stack to continuously discover and profile devices in the client’s environment, analysing their behavior to identify risks and attacks autonomously.

“ The promise of productivity and collaboration with all these new devices can only come to fruition if they are safe and secure” — Yevgeny Dibrov, CEO & Co-Founder, Armis

become one of the flagship products

for smart, connected home living, as well as IoP development, Samsung’s Family Hub Smart Fridge allows users

AN INTERNET OF PAYMENTS

to shop and pay for on-demand gro-

The most tangible development trend

cery deliveries using the Instacart App,

being driven by IoT applications in

as well as order takeout through ser-

the payment sector is an appreciable

vices like GrubHub. In the IoP age, eve-

expansion of the payments acceptance

rything from a household appliance to

network. In short, this means that – in

your car has the potential to become

much the same way that the last ten

an endpoint for payments.

years saw every smartphone become

In the Automotive sector, both GM

a potential purchasing tool – the next

and Honda have released features

few years will see any and all devices

which allow drivers to do things like

become platforms for purchasing

make restaurant reservations, pay for

goods and services. "From the comfort

goods and services like fuel, movie

of their homes to the confines of their

tickets and parking, all from the car’s

cars, people want to make purchases

navigation system. Honda’s Dream

when they want and where they want,"

Drive demoed at CES 2019 and

commented Sherri Haymond, execu-

featured the car manufacturer’s col-

tive vice president, Digital Partnerships,

laboration with Visa, Mastercard and

North America at Mastercard. "Our

PayPal. Olabisi Boyle, vice president of

familiarity of shopping with mobile and

IoT, at Visa commented: "Combining

voice-activated devices have created

Visa's payment expertise and Honda's

the expectation for almost every device

expansive platform, we are one step

to be a way to shop and pay.”

closer to transforming the car into

To focus for a moment on what has

a new epicenter for commerce." w w w.f i nte c hma ga z i n e. com

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

The area where the IoP has seen the most adoption is the wearable IoT space. With early movers like Apple – which sold more than 30 million units of its Apple Watch in 2019 – and Garmin bringing IoT technology and wearables together. IoP wearables allow customers to connect with banking apps to better track expenses, and perform a wide range of other mobile banking tasks. These devices also streamline the spending process for the user. Some can also grant increased security features, like 74

the Nymi smart wristband, which reads the signature of an individual’s heart rate for biometric authentication. A BO U T PAY BYCAR

Based in Boston, Massachusetts, PayByCar was founded in 2017 and is approaching a very specific angle of the IoP on a smaller, nimbler scale than Honda and GM. The six person startup company launched its pilot project in the Boston area in August of 2019. The project connects users’ E-ZPasstransponders and smartphones with participating gas stations across the J U LY 2 0 2 0

Westborough area. Drivers will pull up to a pump and receive a text asking to confirm their choice. PayByCar then unlocks the pump remotely and charges the user’s account. “Westborough has a lot of daily commuters with E-ZPass transponders. PayByCar gives them use of a proven and familiar technology in a completely new way," said Anand Raman, President and COO of PayByCar.

A B O U T GARMI N

Garmin has been making consumer electronics since 1989, and has established itself as a leader in the smartwatch market – with products aimed at the exercise accessory space. In recent years, the company has harnessed IoT technology in its array of smart wearables to support Garmin Pay, a contactless payment solution powered by Visa and Mastercard. “Garmin Pay lets you make purchases quickly and almost effortlessly with

nothing needed but your watch. No wallet? No phone? No problem.” The technology has also been expanded to include contactless transit payments on subways and buses. “Wearers now have the freedom to leave their phone and wallet at home when they go to run or work out, and still be able to make purchases wherever their day takes them," commented Dan Bartel, Garmin Vice President of worldwide sales.

How to Use Garmin Pay on Your Garmin Device CLICK TO WATCH

3:15

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

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

“PHYGITAL BANKING”

increasingly pushing customers

While exponential data proliferation

towards digital options.

and the complete transformation of

According to a report by software

the way in which we spend our money

developer Iflexion, IoT has the potential

are both – to put it kindly – revolutions

to create harmony between physical

in progress, the fintech sector has

and digital banking. “Phygital Banking”

already adopted several IoT applica-

experiences are the result of banks

tions to enhance its most traditional

blending their digital offerings with

point of contact with the public: retail

their physical ones using beacons: IoT

banks. While brick and mortar bank-

transmitters that connect to Bluetooth-

ing is unquestionably on the decline,

enabled devices like smartphones,

IoT technology has the potential to

tablets, etc. These beacons – which

digitally transform physical banking

have already seen deep penetration

spaces in a way that may allevi-

into the retail industry – then connect to

ate the kind of pain points that are

customers’ devices to push notifications,

Mastercard Engage – Helping Customers Find the Best Technology Partners CLICK TO WATCH

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2:11

“ From the comfort of their homes to the confines of their cars, people want to make purchases when they want and where they want” — Sherri Haymond, EVP, Digital Partnerships, North America, Mastercard

manage queues, handle the meet-andgreet process and create personalised ATM experiences. According to Iflexion’s report, “newgeneration… beacons can detect customers’ presence at a distance of at least 50 meters, presenting banks with an opportunity to prompt visits to a branch by pushing relevant reminders to the customers’ phones.” The result is increased customer interaction with physical locations using the power of digital banking. The bank also gains access to new data points relating to customer behaviour and preferences.

A B O U T MAST ERCARD As one of the world’s biggest payment providers, Mastercard has executed hundreds of projects and partnership goals with IoP solution and product providers over the last few years. The company also promotes integrations and partnerships throughout the IoP ecosystem through its Mastercard Engage platform. Mastercard Engage helps customers find technology partners who make their payments strategies a reality by supporting NFC wallets and payment devices,

as well as QR Code payments and card-on-file ecommerce. “Mastercard’s exciting journey in the wearables space is a testament to our commitment to driving contactless payments,” said Ben Gilbey, Senior Vice President, Digital Payments and Labs, Asia Pacific at Mastercard in a press release last year. “We offer a range of solutions to help fintechs rise to the next level and scale their business more rapidly through access to powerful resources, tools and insights.” w w w.f i nte c hma ga z i n e. com

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

A B OU T AMAZO N GO

One of the most prominent examples of IoP integration into physical retail spaces is Amazon Go, an IoT beacon enabled service that allows customers to walk into a store, pick up any items and leave without having to use a checkout lane. A combination of computer vision, sensor fusion, and deep learning powers the Amazon Go app and stores. “Just Walk Out Technology automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart. When you’re done shopping, you can just leave the store. Later, we’ll send you a receipt and charge your Amazon account.”

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This is one of the most advanced examples of an IoP which reduces the need for customers to interact with credit cards, or even their phones. As of April 2020, there are 25 Amazon Go stores active across the US, and recently announced plans to offer Just Walk Out technology to third party retailers. Last month, Derek Viita, Senior Analyst and report author for Strategy Analytics commented, “If cashier-less concepts such as Amazon Go become more widespread, we would expect to see continued growth in consumer adoption of forms on contactless payments.”

“ If cashier-less concepts such as Amazon Go become more widespread, we would expect to see continued growth in consumer adoption of forms on contactless payments” — Derek Viita, Senior Analyst, Strategy Analytics w w w.f i nte c hma ga z i n e. com

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

A B OU T KO N TAK T. I O Founded in 2013, Kontakt.io is a San Francisco-based startup that uses bluetooth beacons to automate payments, manage customer queues and further streamline retail and other customer-facing processes. It also works within the healthcare, industrial logistics and smart building design spaces to create smart environments powered by IoT. In 2018, the company opened up its Cloud Platform,

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including its Cloud Backend and Location and Telemetry API, to third party devices. Useful data on temperature, humidity, location and more will be gathered, analysed and ready to be acted upon by the system. This includes non-traditional beacons such as panic-buttons, thermostats, environmental sensors or door locks, further blending the physical and digital aspects of a space.

“ Combining Visa's payment expertise and Honda's expansive platform, we are one step closer to transforming the car into a new epicenter for commerce”

THE FUTURE OF THE IOP From smart speakers to smart sensors, from smart cars to smart watches, the IoP is set to be an omnipresent, omnichannel network for the modern consumer. Driven by increasingly ubiquitous IoT, the IoP has the potential to transform the finance sector as dramatically as the introduction of the credit card.

— Olabisi Boyle, Vice president of IoT, Visa

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

INSURTECH

WHY INSURTECH ECOSYSTEMS ARE DRIVING DIGITAL DISRUPTION WRITTEN BY

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M AT T HIGH

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

INSURTECH

As the pace of digital disruption in insurance quickens, survival relies on innovative digital ecosystems driven by technology and the consumer

he insurance industry stands on

the precipice of a paradigm shift. Digitisation is accelerating at pace,

with new and innovative technologies,

the greater use of data and a mobile-first approach not only changing how the industry

operates, but also how customers expect it to operate. So too is the competitive landscape changing the playing field for those incumbents in the industry, forcing them towards a better defined, service-based approach similar to that being adopted by many of the larger players in the financial services industry. But, unlike that industry, the insurance sector has typically been slower to adopt digitisation. That has to change. Digital can no longer be the preserve of the innovators or pioneers in the sector, it should permeate every level of the competitive landscape if insurers wish to reshape their business in line with customer expectations. Indeed, according to research by J U LY 2 0 2 0

â&#x20AC;&#x153; The insurance industry stands on the precipice of a paradigm shiftâ&#x20AC;?

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

From Inspiration

to Innovation

To know more, visit us at www.capgemini.com.au/insurance or email us at capgemini.marketing.au@capgemini.com

Accenture that analysed close to 20

and reliable data and the effective

industries, insurance is among those

analysis of that data. According to

most susceptible to future disruption.

Accenture, however, “the most fas-

Accenture explained that, by 2022,

cinating and potentially disruptive

carriers that are slow to respond to

developments lie at the intersection

digital – or ‘hyper-relevant’ – competi-

of new technologies, where they

tors could suffer market share erosion

combine to offer new, integrated and

close to $200bn and miss the oppor-

diverse value propositions”.

tunity to pursue new growth activities worth $177bn. It should come as little surprise that

For customers, it says, this converging of technologies will enable a greater delivery of end to end services

technology will change insurance.

that better address specific and real

The industry, regardless of what is

needs. For incumbents and legacy

being insured, relies on transparent

insurers to deliver on this technology

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

INSURTECH

driven by the increased use of digital technologies by consumers and the realignment of global markets into one, connected whole. As an example, it notes that seven of the 10 largest companies in the world by market capitalisation operate within ecosystems, including Apple, Amazon, Alibaba, Microsoft and Facebook. Further, it explains that by 2025, 12 distinctive ecosystems will emerge, accounting for $60trn in revenues, or close to 30% of all global revenues. 88

innovation will require the nurturing of digital ecosystems that sees tra-

According to McKinsey, there are

ditional insurers join forces with new,

three key values derived from being

innovative insurtechs.

an ecosystem player:

THE AGE OF THE ECOSYSTEM

1. They can be gateways that reduce

According to McKinsey, â&#x20AC;&#x153;as traditional

friction for customers wishing to

borders fall away, the future of insur-

switch between related services,

ance stands to be greatly influenced

to not toggle between different

by platforms and ecosystemsâ&#x20AC;?. The

portals or log-in networks.

latter, it explains, is an interconnected set of services that allows users to

2. They harness network effects.

fulfill a variety of needs in one integrated experience. McKinsey explains

3. They integrate data across several

that digital ecosystems are already

different services, thus providing

emerging in several sectors world-

better and more personalised solu-

wide, such as healthcare and finance,

tions to customers.

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What do digital ecosystems mean for insurers? CLICK TO WATCH

59:20

89 Accenture explains that the power of

partnered with organisations from other

the ecosystem lies in its complementary

industries. In particular, the highest level

nature – no single enterprise needs to

of disruption was reported in the areas

own or operate all the component parts

of products, services and customer ser-

of an insurance solution, for example.

vice – all crucial aspects of the insurance

Rather, overall success is measured

value chain.

by the depth and breadth of the col-

Accenture goes on to explain that

laboration between the various parties

“if insurers fail to create their own eco-

belonging to that ecosystem. Specifically

systems, they run the risk of being limited

on insurance, says Accenture, more

to the role of a pure risk cover provider.

than half of the industry executives

Other players may then be in a bet-

it surveyed for its The Ultimate Guide

ter position to provide a more nuanced

to Insurance Ecosystems report said

and valuable customer experience, to

they were seeing disruption or competi-

impose their brand, and to own the cus-

tion from others in the sector that had

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

INSURTECH

INSURERS AND ECOSYSTEMS: BUILDING THE NETWORK

insurers show an interest in becom-

Accentureâ&#x20AC;&#x2122;s research shows that

may lack the understanding and

more than four of five surveyed

knowledge to implement an effective

acknowledge the importance of

ecosystem strategy. When compared

ecosystems in their overall digital

to other industry sectors demonstrat-

strategy, while 54% said that they

ing a strong approach to ecosystem

are actively seeking to join an eco-

development, insurers fall short in

system model. There is, however,

several areas including capability,

a broader consensus that while

culture, technology and resources.

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ing part of a wider ecosystem, they

â&#x20AC;&#x153; Customer experience is a driving force behind insurance digital ecosystemsâ&#x20AC;? needs of any partner that the business can address.

ECOSYSTEM STRATEGY McKinsey states that insurers will be able to play multiple roles in a modern digital ecosystem, thus enabling them to reinvent their wider digital strategies. For example, the growth of automotive technology and a focus on automated vehicles by organisations like Tesla, Apple and Google offers considerable opportunity for auto insurers. Building an effective ecosystem

Here, says McKinsey, â&#x20AC;&#x153;insurers

strategy should start with several

already have a strong foundation

key areas of focus: how to create

[...] thanks to their current customer

a better experience for customers

base, distribution power, and stick

through their interactions with the

of personal data from auto insurance

insurer and the wider ecosystem;

policies. To position themselves as

how to value and enhance the impact

true ecosystem players and to fend

that the business takes on; what

off moves by other stakeholders,

makes the business stand out in the

insurers need to build capabilities in

ecosystem; and what are the specific

a number of areas including mobile w w w.f i nte c hma ga z i n e. com

INSURTECH

Insurers: Digital ecosystems are already forming CLICK TO WATCH

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2:38

sensors, analytical tools, and customer interfaces.â&#x20AC;? More broadly, both Accenture and McKinsey suggest that partnerships should play a crucial role in the establishing of ecosystems. These should cover a broad spectrum of technology and market partners, but all should bring value in terms of new opportunities in the market and scope to expand beyond traditional product and services models. Customer experience, as with many industries, is a driving force behind insurance digital ecosystems. Just as in fintech and financial services all institutions are shifting the balance in their strategies so that they are geared towards customer interaction, so too should insurers approach any ecosystem with a view to greater ownership of the customer relationship.

â&#x20AC;&#x153; Digitisation is accelerating at pace, with new and innovative technologies, the greater use of data and a mobilefirst approachâ&#x20AC;? w w w.f i nte c hma ga z i n e. com

INSURTECH

M C KI N S E Y

Key questions insurers should consider before developing an ecosystem strategy: 1. How highly does ecosystem strategy rank in overall priorities for the business? 2. What is the current state of the organisation’s customerfacing approach?

3. Is there an existing network of partners and does it reach beyond the industry? 4. How does technology drive change at present? 5. What is the culture and how do customers fit into that?

For example, consumers can use tools

among those partners involved in the

such as Amazon Alexa and Google’s

ecosystem. In its research, Accenture

search engine to receive advice on

sets out that insurers should build this

insurance and obtain quotes – that user

into a clearly defined strategy that

experience makes products like these

considers the role they want to play in

well positioned to drive the distribution

both the ecosystem and their custom-

side of the insurance ecosystem.

ers’ lives; fully understand their own

Other areas that are crucial to success of any ecosystem are trust J U LY 2 0 2 0

ecosystem strengths and weaknesses and be clear about what makes them

an attractive partner; and only choose

means that those businesses that

partners that support and align with

dare to attempt going alone, will

the previous two points.

be left by the wayside. In contrast,

To avoid falling short in a rapidly

a strong, customer-centric ecosystem

evolving marketplace insurers must

strategy that is broad enough to

adopt an ecosystem approach that

consider those products or inno-

suits their overarching business ambi-

vations that lie outside traditional

tions as rapidly as possible. The nature

insurance boundaries is a foundation

of todayâ&#x20AC;&#x2122;s competitive landscape

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

T O P 10

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Global fintech hubs Here, we consider 10 of the world’s hottest fintech hubs, with reference to Findexable’s Global Fintech Index 2020

WRITTEN BY

MATT HIGH

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

T O P 10

200+

Number of fintechs

Events

Blockchain for Finance

Based

Fenergo, Future Finance, Immedis, Currency Fair, AID:Tech 98

10 Dublin Ranked 26th overall in Findexable’s listing, Dublin’s fintech reputation is expanding rapidly. The city is known as a fertile breeding ground for innovative organisations involved in payments, regtech, lending, funding and trading, and financial management. Dublin also hosts several startup accelerators and incubator programmes, such as the Aon Centre for Innovation and Analytics, Citi Innovation Lab, the Bank of Ireland’s Startlab and the Central Bank of Ireland’s The Innovation Hub. In short, the city provides a thriving ecosystem for financial services technologies that is propelling it to the highest tier of global fintech hubs.

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250+

Number of fintechs

Based

Tala, Acorns, Green Dot, Crowdfunder, Oink

09 Los Angeles While Silicon Valley and New York’s financial quarters are often touted as thriving fintech ecosystems, Los Angeles has no shortage of contenders looking to disrupt this belief. The city has, in recent years, seen a growth in both startup activity and venture capital investments, which has fuelled momentum for several of LA’s leading fintechs including Aspiration, Tala and Honey. Those involved in LA fintech, state the city’s rich and vibrant culture as a key driver for innovation, with Andrei Cherny, founder and CEO of Aspiration Partners – which offers banking and investing solutions – stating that “there is a lot of groupthink and inside-the-bubble mentality [...] by not being locked into the pack mentality, it lets you experiment and innovate in new ways.”

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Better Business Decisions FICO powers decisions that help people and businesses around the world prosper. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

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08 Mumbai Findexable highlights several core areas of growth in Mumbai’s fintech ecosystem: alternative lending, B2B fintech, digital payments, insurance and wealth management. Mumbai’s fintech growth is a result of the Government of Maharashtra’s commitment to innovation. This has led to the creation of the Mumbai FinTech Hub, which aims to encourage nextgen innovation so as to enable financial empowerment and technological advancement for all. The hub offers local startups and innovators financial support, infrastructure and access to regulators, as well as mentorship and financial lab opportunities. 101

Events

India Fintech Day India Fintech Forum

Based

FlexiLoans, InCred Finance, BillDesk, Acko, Kissht

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T O P 10

Fintech deals in 2019

Events

FinTech Roadshow 2020, FinovateEurope 2021

Based

N26, Friday, Wefox Group, Penta, Billie 102

07 Berlin Widely recognised as Europe’s second largest fintech hub after London, Berlin is a hotbed for fast-growing fintechs, insurtechs and startups. Germany ranked second for venture funding into fintech in Europe in 2019 and Berlin is the epicenter of this activity, hosting more financial services innovators than Munich, Frankfurt and Hamburg combined. Most will know digital bank N26 as the star of the Berlin scene, but there’s far more, including several companies growing exponentially such as TaxFix, Moonfare, Penta and ndigit. Nurturing this pioneering spirit is the responsibility of the city’s several incubators and accelerators. This includes FinLeap, a startup studio focused on tech companies in the financial services sector.

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550

Number of fintechs

Events

Hong Kong Fintech Week 2020, Hong Kong Blockchain Week

Based

WeLab, Ping An One Connect, SC Digital, Fusion Bank, Livi VB

06 Hong Kong Last year the Hong Kong Monetary Authority announced that eight virtual banks had been selected to receive banking licences. These eight, including the likes of Ant SME, Livi VB and the Standard Chartered-backed SC Digital, represent a snapshot of the digitally disruptive financial services industry that’s taking hold in Hong Kong. Indeed, in recent years, the location has been widely recognised as one of the world’s leading fintech hubs – according to InvestHK, for example, as of 2017, 48 of the world’s leading fintech companies are reaping the rewards of the city’s technologically advanced ecosystem. Particularly hot are digital banking and payments, wealthtech, AI and cryptocurrency developments.

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103

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05 São Paulo Nubank is a familiar name in the fintech world – the São Paulo-based digital bank is Latin America’s biggest fintech and has more than 15 millions users. But, there’s more to São Paulo than banks. Findexable note’s the city’s rich fintech ecosystem, which encompasses lending, SME finance, mobile banking and payments, and a burgeoning crypto scene. São Paulo also hosts a number of accelerator programmes and incubators, such as Startup Farm and Village Capital and Partners. More recently, a welcoming environment has been fostered for tech-focused financial services companies with several measures including agreement 105

of new rules for online lenders by Banco do Brasil.

178

Fintech deals in 2019

Events

FinTech Conference jumio.com

Based

Nubank, Creditas, Recargapay, Neon, Guiabolso

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T O P 10

Singapore

Singapore has become a world leader in fintech of late, with the rise of smart and innovative financial services technologies playing a crucial role in the city stateâ&#x20AC;&#x2122;s growth ambitions. According to Findexable, insurtech, lending and payments are driving fintech growth, while 2019 saw 94 deals valued at $735mn. Singapore hosts several industry associations, each of which is aiding the rapid growth of the sector, as well as a number of accelerators and incubators. The latter includes ING Labs, HSBC Singapore Innovation Lab, Bank of China Innovation Lab Singapore and Start Path Global, Mastercard. 106

Fintech deals in 2019

Events

Finovate Asia, Money2020 Asia

Based

Validus Capital, Everex, Sherelt, Toast, Quoine

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101

Fintech deals in 2019

Events

Future of Fintech, Finovate Fall

Based

Abacus, Lemonade, Current, Betterment, Stash

107

New York

According to Findexable, New York is a hub for cryptocurrency innovation, B2B fintechs, lending, wealth management and insurance technologies. Like London, New York is one of the worldâ&#x20AC;&#x2122;s top financial centres, thus aspiring startups and businesses in their early stages have access to some of the worldâ&#x20AC;&#x2122;s leading banks, insurance companies and hedge funds. The city saw $1.9bn of fintech deals in 2019 and is the headquarters for companies such as Oscar, Mantl, Current and Seedinvest. With a population of 8.5 million New York is one of the most populated cities in the world, it also plays host to the most fortune 500 businesses worldwide.

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E M E A | A P A C | | APAC N O R T H | A EMEA MERICA AMERICAS FIND OUT MORE

FIND OUT MORE

T O P 10

114

Fintech deals in 2019

Events

London Blockchain Week, Innovative Finance Global Summit

Based

Transferwise, OakNorth, Starling Bank, Monzo, Revolut 110

FinTech Scene London - Top 25 People Changing the Finance World. â&#x17D;&#x153;#FinTech... Explained No.9 CLICK TO WATCH

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1:57

111

London The world’s oldest financial centre. While that may be true, London’s incumbents are being shaken by a pioneering and innovative tech spirit driven by the likes of Monzo, Revolut, Starling Bank and OakNorth. According to one study by Beauhurst, of the 1,139 fintechs in the UK (December 2019), 75% are based in the City of London. Little surprise, then, that the city has a highly active fintech ecosystem that includes more than 20 fintech accelerators – prominent names include Barclays Accelerator, Citi Innovation Labs, Accenture’s FinTech Innovation Lab London and the Bank of England Accelerator. Findexable found that last year there were 114 fintech deals in London, valued at $2.1bn.

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T O P 10

112

San Francisco Bay The San Francisco Bay area â&#x20AC;&#x201C; a mecca for innovators, startups, and now fintechs, according to Findexable. Indeed, the metropolitan region is home to globally recognised unicorns such as Stripe, Coinbase, Credit Karma and more, as well as host of up and coming fintechs like Robinhood. This should come as little surprise considering the area plays host to several fintech accelerators and incubators from names such as Deutsche Bank, Hitachi, Wells Fargo and Mastercard. According to Findexable, sectors of prominence include insurtech, lending, payments and B2B fintech and, in 2019, fintech deals in the region reached the $3bn mark.

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Fintech deals in 2019

Events

Future of Fintech, Finovate Spring Conference, CB Insights

Based

Stripe, Coinbase, Credit Karma, Plaid, Chime 113

FintechTalk Over the Years | iValley Innovation Center CLICK TO WATCH

6:26

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Combating COVID-19 with rapid digitalisation

114

WRITTEN BY

GEORGIA WILSON PRODUCED BY

GLEN WHITE

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WSIB

Samantha Liscio, Chief Technology & Innovation Officer at WSIB, discusses industry trends, digital transformation and the impact of COVID-19

116

ithin the insurance industry, Samantha Liscio, Chief Technology and Innovation Officer at Workplace Safety and Insurance

Board (WSIB) has seen the sector mirror what the organisation itself is experiencing internally. “It’s that customer focus,” says Liscio. “Our customers want to be able to deal with us anytime, anywhere and however they want, so we need to ensure that our products and services support that. This trend is one of six key drivers for our 2020 IT strategy at WSIB, to develop new channels and a sustainable operating model that are digitally focused as well as digitalising our core services and developing our work-from-home operations. The other five elements of our IT strategy include business intelligence and analytics, cyber and digital security, modernising applications, providing digital infrastructure and modernising our operating models, all with the customer experience in mind.” J U LY 2 0 2 0

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“ Our customers want to be able to deal with us anytime, anywhere and however they want, so we need to ensure that our products and services support that”

120

— Samantha Liscio, Chief Technology and Innovation Officer, Workplace Safety and Insurance Board (WSIB)

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Expanding on the industry trends emerging within insurance, Liscio explains that rapid digitalisation is posing challenges for insurance companies. “Insurance companies tend to be older companies that have been around a long time and have been built on a foundation of processes developed over decades, sometimes centuries, which can be longstanding and hard to change. These longstanding business models however do need to change to be flexible and adaptable if they are to continue to meet customer expectations.”

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Ready to Weather  the Storm

PURPOSE DRIVEN

The pandemic has forced  organizations to look beyond the  products they make and sell to the  purpose behind their existence. As  they embark on this transformative  journey, we will continue to enable  our clients’ strategic intent and  journey of end-customer purpose  centric themes (prosperity for SME  segment, wellness of individuals,  �nancial health of portfolios)  orchestrated through an ecosystem  of internal & partner solutions and  catalyzed by Open Banking move  towards pan-industry collaboration.

RESILIENT

Our adoption of a Secure Borderless  Workspaces (SBWS™) model has  ensured service continuity for  elevated levels of customer  conversations and high consequence  transactions (deferrals, payments,  investments). Our contextual  knowledge has enabled swift  realignment of eﬀorts on government  (Canada, US) relief & cross-segment  (individuals, businesses) customer  care imperatives while sustaining  paramount initiatives around �nance,  risk, cyber and �nancial crime using  cognitive solutions.

ADAPTABLE

We are actively participating in  endeavors around accelerated  intelligent responsive processes,  digital parity across channels,  insights driven decisioning,  open & agile architecture,  elastic infrastructure to be  operationally nimble and  strategically progressive  addressing the changing  environment.

We are privileged to be a key partner for WSIB, who has 106 years’  heritage and organizational purpose of wellness protecting and  promoting healthy & safe workplaces. We enabled 100% of our team  working remotely within �rst 2 weeks of lock-down. We accelerated  digital journey transformation for low touch frictionless experiences for  all - employees, businesses, and healthcare providers - for claims  registration, administration, and return-to-work.  To pivot this change management and organizational  redesign, we envisaged a strategy for enterprise  quality management and operating agility.

Manmeet Chhabra

Business Head, Banking-Financial Services & Insurance, Canada Business Head, Banking-Financial Services & Insurance, Canada

As human ingenuity embarks on a new beginning, we look  forward to meaningful contributions to Canadian  industries for engendering resilience, driving adaptability,  and enabling customer & societal purpose.

Having lived the reality of major transformations, our highly adaptable team supports all aspects of business change, including strategy development, digital and data driven process and service improvement, program execution management and the establishment of an enabling culture.

Our services www.avenai.com

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When it comes to its own IT strategy,

needs met within the first MVP. Before,

Liscio explains that WSIB adopts an

that would have taken us more than

agile approach for rapid innovation

a year to develop a solution, by gather-

which encompases three key areas

ing requirements, working on those,

working together to develop a minimum

developing, testing, and then putting

viable product (MVP). “These key areas

into production. With our new approach

include service design with a human

we have been able to bring projects

centered design approach, followed

live within three months of starting an

by product owners identifying friction

MVP which immediately addresses the

points. Finally the DevsOp group takes

key customer pain points, and provides

a scrum based approach to developing

a base for opportunities to build addi-

MVPs to target customer pain points.

tional functionality incrementally. This

With this ‘digital factory’ approach you

approach has become our foundation

can get about 80% of those immediate

for the future.” w w w.f in t e c hm a g a z in e . c o m

“ There are so many opportunities for IoT in the worker’s compensation space, especially as it relates to health and safety” — Samantha Liscio, Chief Technology and Innovation Officer, Workplace Safety and Insurance Board (WSIB) Many of WSIB’s new digital products are the outcome of this approach, which it has engaged with key partners for its agile-based solution development. “Within the last few months, partners such as Wipro and others have helped us develop a new service that provides secure digital access to claims information for injured workers. TCS – Tata consulting services – is our strategic partner and have been instrumental in transforming our end-to-end quality assurance process with industry best practices and innovations in the area of Automation, AI, Cloud Testing and Test Data Management,

E X E C U T I V E P R OF IL E :

Samantha Liscio As Chief Technology and Innovation Officer at the Workplace Safety and Insurance Board, Samantha leads digital transformation, leveraging technology to streamline processes and modernize the business, helping the WSIB provide responsive services to customers. Samantha drives IT service excellence and directs innovation while ensuring value from technology investments. Samantha has over 20 years of experience in IT leadership roles in eHealth Ontario, Accenture, and the Ontario Public Service. Currently Samantha serves on the Ryerson University IT Business Management Program Advisory Council and the Toronto CIO Governing Body. She is a past board chair for Cornerstone Family Violence Prevention and a past board member of the CIO Association of Canada and the Institute for Citizen-Centred Services. Samantha holds a Bachelor of Science (Honours) and a PhD from Queen’s University in Belfast. w w w.f in t e c hm a g a z in e . c o m

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WSIB

which has meant that we’ve eliminated 95% of the defects from our projects by implementing the optimized approach and methodology that TCS has helped us with. In addition to this we are also looking into opportunities to harness RPA, within our operations which is also something that we are working on with TCS.” As part of the company’s digital strategy to drive digitalisation in the heart of its operations, Liscio details the company’s adoption of cloud, internet 128

of things (IoT) and AI-enabled analytics.

CLOUD “For the WSIB, cloud is an opportunity to significantly accelerate the delivery of value, both to our internal business and to our end customers. From an IT perspective, cloud deployments can help to reduce risk. It’s complicated and expensive to host, deploy and maintain software that’s at the core of your business, and so increasingly big vendors offer those types of services better than we can ourselves. They can help us to use cloud native capabilities and drive innovations. WSIB’s cloud strategy focuses on the implementation J U LY 2 0 2 0

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How CGI helped WSIB transition to a fully remote workforce When Ontario Public Health declared a ‘Work From Home’ policy due to COVID-19, the WSIB, like many organizations, faced an unprecedented challenge: How to quickly transition to a fully remote workforce while maintaining service levels for employers, and payment continuity for injured workers.

WSIB and CGI mobilized and united the resources necessary, including senior management, technology, and expert personnel. With highly collaborative and creative thinking, WSIB and CGI were able to overcome conventional limitations and transition 4,300 WSIB workers and their IT devices into a remote workforce. Careful planning and crisis management from the deployed CGI service teams paid off when each team readily handled the spike in call volumes and increased handling times as WSIB workers moved home. It was imperative that WSIB data remained secure outside the traditional working environment, and that end users experienced no service degradation despite the increased load on technological infrastructure.

“

Together, WSIB and CGI rapidly implemented a range of risk management approaches to preserve the customer experience of the WSIB workforce. This included digitizing document handling, remote desktop re-configuration, creating a new toll-free helpline, and redeploying a number of support teams. WSIB and CGI were subsequently able to guide WSIB workers through the challenges of setting up their workstations from home while in parallel CGI quickly configured and issued over a 1,500 new laptops. In just over 3 weeks, WSIB and CGI demonstrated resiliency in crisis by transitioning all WSIB workers to remote work arrangements while maintaining critical service levels and uninterrupted payments to injured workers.

CGI’s exceptional support enabled the WSIB to maintain critical services to injured people from distributed locations while transitioning from a traditional bricks and mortar operation to facilitating employees working from home. I look forward to continuing this partnership and working collaboratively together. – Samantha Liscio, WSIB Chief Technology & Innovation Officer

ABOUT CGI

Founded in 1976, CGI is among the largest IT and business consulting services firms in the world. Operating across the globe, CGI delivers end-to-end capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions, helping clients achieve their goals, including becoming customer-centric digital enterprises.

“

WSIB engaged CGI to support their transition to the new working reality by providing tailored end user computing and service desk solutions.

of a hybrid cloud service model using

We’ve been thinking very carefully

both public and private cloud, with

about what our infrastructure needs

partners such as Microsoft Azure and

to look like when it comes to the cloud

IBM. As a result we have a specific

and we are now underway with our

software-as-a-service (SaaS) solution

key partners.”

approach that’s aligned to our application strategy. We also have database

INTERNET OF THINGS (IOT)

and integration-as-a-service offerings

“With the internet of things (IoT), it’s

and we are introducing other platform-

an interesting point on our innovation

as-a-service capabilities and providing

radar right now. There are so many

Windows and Linux virtual machines as

opportunities for IoT in the worker’s

an infrastructure-as-a-service offering.

compensation space, especially as

This is all underpinned by a restructured

it relates to health and safety. So our

network architecture and cloud man-

innovation lab is exploring things like

agement platform.

connected devices that can detect

“ When the emergency was declared in Ontario in the middle of March, the WSIB saw its remote workforce increase from about 2% to more than 99% of the workforce in the space of about 10 days” — Samantha Liscio, Chief Technology and Innovation Officer, Workplace Safety and Insurance Board (WSIB)

fatigue. Devices that can be connected to the wearer or the dashboard of a truck — or both – that can detect if they’re falling asleep and can alert them. We’re also looking at things like proper posture and biomechanics which are especially important in the construction industry where people are lifting and bending and moving. Having those kinds of devices that can be connected to people or the surroundings to provide real-time feedback rather than corrective action after, this is something really interesting that we are working on in the lab relating to IoT.” w w w.f in t e c hm a g a z in e . c o m

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WSIB

AI ENABLED ANALYTICS “On the analytics side, being an insurance organisation, WSIB relies on predictive analytics for things like risk scoring, case based reserving, claims segmentation models, anomaly detection and text mining. As a result, business intelligence and analytics is a key pillar for our IT strategy and we’re investing in the capabilities, the tools and the backend infrastructure to be able to make decisions better and faster. Currently we extricate data from various data marts to create diagnostic 132

and predictive models. We’re in the progress of creating a central data store and intend to leverage in-database analytics that will allow us to execute extensive analytical workloads directly against our data. That’s going to be really important to us in increasing our decision making speed.”

CYBERSECURITY While innovations are revolutionising the insurance industry, it is important to remember that progress comes with challenges, in particular cybersecurity. “At WSIB we operate a 24 hours a day, seven days a week, 365 days a year security operation center,” J U LY 2 0 2 0

“ Longstanding business models however, do need to change to be flexible and adaptable if they are to continue to meet customer expectations” — Samantha Liscio, Chief Technology and Innovation Officer, Workplace Safety and Insurance Board (WSIB)

incidents. So in total that 85 billion was whittled down to roughly 150 incidents requiring action.” In order to combat these potential threats, WSIB has a cybersecurity strategy and strong governance in place. “We’ve assessed our main maturity across security and we’ve taken an inventory of all of our critical data and assets, so we know where our crown jewels are and how those are protected and we’ve applied the appropriate controls to those protections. We also conduct regular testing via the likes of audits and penetration testing, as well as monthly vulnerability assessments.” In addition to harnessing technology to maintain security, WSIB comments Liscio. “We keep track of

has also established a breach response,

all of the security records we receive,

as well as awareness and training

these are essentially all of the potential

programs in place, cyber security intel-

hits on our perimeter from a security

ligence and cyber security insurance.”

perspective, and between January and September last year we had more than

THE IMPACT OF COVID-19

85 billion security records. Of those 85

“When the emergency was declared

billion we sent 19 billion to our security

in Ontario in the middle of March,

information event monitoring system

the WSIB saw its remote workforce

for a second look to determine if they

increase from about 2% to more than

are events that need to be monitored,

99% of the workforce in the space

events that are relevant, events that are

of a few weeks. With that sudden shift

possible threats or events that become

to over 4,000 employees working w w w.f in t e c hm a g a z in e . c o m

133

from home, a host of issues can arise,

corporate collaboration tools such as

from inadequate video conferencing

Microsoft Office 365, Microsoft Teams

capabilities due to connectivity at

and OneDrive, as well as encrypting all

the employee’s homes or additional

hard drives so that we could protect

challenges in maintaining security

and manage data remotely.”

of confidential information outside the

In addition to these changes, Liscio

office. But we’ve been able to effectively

explains that provisions have also

direct the company on how best to

been made for specific job functions

work remotely using our virtual private

such as call centers. “You can imagine

network which is robust and secure.

that within a large company like WSIB

We also have multi factor authentica-

there is a large call center and our

tion to ensure secure logins so that

service reps need to be able to answer

those working from home can con-

the phone. So even though they’re at

nect to the WSIB systems and our

home, they still need to be in that call

Your next clearance will be simple CLICK TO WATCH

0:21

w w w.f in t e c hm a g a z in e . c o m

135

WSIB

center environment. To achieve this we turned the WSIB computers into soft phones, rolling out on-screen dial pads to place and control calls from the desktop. In addition we have deployed more than 400 mobile devices in a couple of weeks since the state of emergency, so that end users working from home could maintain critical business services.” Without the support of its partners, Liscio emphasises, “would not have been able to get more than 4,000 peo136

ple productively working from home within a few weeks without the support of our partners, especially CGI and RCI Rogers who helped us expedite equipment provisioning across their supply

standard technology, providing that

chain and provide after-hours support

kind of flexibility for mobile work. We

for our IT and front-line staff.”

are also quickly digitising hard copy

While this has been a huge change

mail and things like access requests.

for WSIB, Liscio explains that now

When our customers ask for access

they are effectively and productively

to their file, we would typically go find

work from home, “the new normal

all of the paper, scan all of that paper

for us will be one where we probably

and then send them boxes of paper.

won’t be returning to our offices in

With digitised access requests we can

the same way as we worked before

share that information back with them

and things like phones and desktop

through encrypted email, making the

computers will be retired and lap-

need to do these kinds of paper-based

tops and cell phones will be the new

processes again obsolete. In addition

J U LY 2 0 2 0

1914

Year founded

$2,165mn

Total comprehensive income in US dollars (2018)

5,000

Approximate number of employees

we are pivoting to accelerate the deliv-

changes, premium deferrals, lower

ery of online services for people with

interest rates, volatile investments.

claims, as well as identify additional

Guided by our digital strategy, the

rapid-fire digital transformations and

WSIB will respond by: Creating new

we have adopted an electronic sig-

digital channels and digitizing our core

nature solution to ensure we can still

services, fully implementing a sustain-

procure, approve and authorise things

able IT operating model to support

in a virtual way.

the new digital WSIB and continuing

â&#x20AC;&#x153;Looking ahead, I see the key driv-

to support remote and flexible work.â&#x20AC;?

ers for change in the InsurTech sector and for the WSIB being very similar. Post COVID-19 there will be changes in the workforce resulting in revenue w w w.f in t e c hm a g a z in e . c o m

137

A DIGITALLY DISRUPTIVE ORGANISATION

138

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SHIRIN SADR

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MASTERCARD

Mohammed Kamal, Senior Vice President, O&T, at Mastercard, on the company’s unique operations, digital transformation, technology trends and its initiatives to combat COVID-19

hen it comes to the operations at Mastercard, Mohammed Kamal, Senior Vice President, O&T, reflects

on the history of the company. “Just looking at Mastercard’s payment network, it has a unique architecture with triple redundancy 140

built in, operating globally, peer to peer and with local AI decisioning. The way Mastercard and Mastercard’s network has been built over the years is different from some of our competitors, which I believe provides a quicker and higher quality of service for our customers. Beyond our historic payments network, I think Mastercard is in a position to disrupt itself. Where you typically associate Mastercard with credit card or debit card payments, being disruptive has taken us into areas such as account-based and bill payments, which have grown over the years. While we’ve been diversifying into services for some time, we’re also diversifying into multiple payment rails that you typically wouldn’t associate with Mastercard. For me this is one of J U LY 2 0 2 0

141

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MASTERCARD

“ Mastercard has very rigorous business continuity plans that are tested regularly so we are ready to respond when an unexpected crisis happens, such as COVID-19” — Mohammed Kamal, Senior Vice President, O&T, Mastercard

the big things that makes Mastercard unique compared to some of our competitors.” Kamal adds: “When I look at digital transformation and being disruptive, it is important to move from a

place where the digital and core businesses are not separate to be successful. The core

142

business itself has to evolve into being digital rather than adding a digital veneer and keeping the existing core processes in place.” This approach is something that Kamal sees as fundamental when digitally transforming business operations. “It’s visible when you look at a company, which ones have added digital as an afterthought, versus which companies actually reinvented themselves to be digitally native. Much of the time the result is a hybrid. Sometimes you’ll see competing products within an organisation, some that are digitally enabled but which obviously started off in more of J U LY 2 0 2 0

Inclusive access – Frictionless future of payments

CLICK TO WATCH

1:21

143 an analog form, and then you have

much more data-rich, so it typically

new products, built from the ground

goes hand in hand with more

up that are digitally native. I believe

advanced warehousing and analyt-

for companies to be successful, it’s

ics capabilities. In addition, digital

important to really reimagine what’s

tends to be exposed through web

possible without the confines and

and application programming inter-

design assumptions of the non-digital

faces (APIs), which require their own

legacy products. If you build new

sets of supporting infrastructure and

products from the ground up, I think it

security capabilities.

opens up new doors when it comes

When it comes to the application

to their flexibility and agility. There is,

of cloud, data and analytics and artifi-

however, a tremendous amount of

cial intelligence (AI), Kamal states

underlying infrastructure and plumb-

that “all are obviously important but

ing needed to successfully pull off a

for various reasons and applied

digital transformation. Digital is

across different industries. For our w w w.f in t e c hm a g a z in e . c o m

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MASTERCARD

146

organisation, which accumulates

consumer banks - in a network.

large amounts of data, being able

These new, digitally native products,

to draw insights based on data is

one of their selling points is that they

extremely important and I would rank

enable a richer exchange of data

this the highest out of the three. A lot

than their analog counterparts

of our fraud engines and insight plat-

through ISO 20022 messaging

forms run on aggregated data which

standards. These standards provide

is invaluable. Weâ&#x20AC;&#x2122;re also, however,

the capability to carry a lot more

enabling the exchange of data

information back and forth, driving

between participants in an ecosys-

value for parties in the ecosystem.

tem. Mastercard is very well

This exchange of data enriches the

positioned as a network where we

whole ecosystem, and provides for a

bring together different parties - mer-

more symbiotic relationship between

chants, billers, acquiring banks and

us and our partners.â&#x20AC;?

J U LY 2 0 2 0

Reflecting on the capabilities cloud

use cases, especially in the face of

technology can provide, Kamal

nationalism, where you may need to

explains that â&#x20AC;&#x153;you can gain tremen-

have something hosted in the cloud.

dous amounts of value. But first it is

For that reason, I have generally taken

important to determine the best use

a hybrid cloud approach when going

case for this technology. Mastercard,

down the path of cloud enabling solu-

for example, has a good footprint of

tions. The greatest value I see,

data centres around the world in dif-

however, is that the techniques

ferent regions. In some instances,

applied when using a hybrid-cloud

cloud makes sense and other times it

enabling platform generally make the

doesnâ&#x20AC;&#x2122;t, but the flexibility of cloud and

platform more scalable, agile and ven-

the ability to leverage an OPEX model

dor agnostic, which in itself is valuable

versus a CAPEX model provides scal-

whether actually deployed in a public

ability and flexibility. I think there are

cloud environment or not.

E X E C U T I V E P R OF IL E :

Mohammed Kamal Title: Senior Vice President, Consumer Applications Mohammed Kamal is a payments industry technologist with a passion for innovation and the Fintech space. He is currently serving as the COO of Consumer applications at Mastercard, leading a cross functional team with a mission of enabling new payment flows leveraging real-time payments (RTP). His responsibilities include technology and operations for retail payments (p2m), BillPay & p2p payment products. He is also responsible for corporate & commercial M&A integration within the Consumer Applications division. w w w.f in t e c hm a g a z in e . c o m

147

MASTERCARD

Mastercard has been leveraging AI

148

manual enrolment process

for its fraud services for over 10 years.

can take a consumer half an

“We have very advanced fraud detec-

hour - if not longer – trying to

tion capabilities that we provide our

identify and link with the differ-

customers,” says Kamal. “One of the

ent billers they have a

techniques that I think is interesting

relationship with. An assistive AI

with AI is the use of assistive AI versus

solution can bring this time down

fully autonomous AI - or a mix of the

significantly, reducing friction for the

two, depending on the use case.

customer, yet keeping them in control

There’s still tremendous value in hav-

of their personal and financial data.”

ing human intervention and making

Another technology trend Kamal

sure a human is kept in the decision

has seen emerge is the use of open

making loop, but drastically empow-

banking, “we’ve seen a huge amount

ered as a result of the AI. For example,

of action in this space. I use the term

fraud detection is sometimes one of

‘open banking’ loosely because it dif-

those use cases where selectively

fers in different regions of the world,

involving the user in the decision mak-

but it’s the idea that the bank is open-

ing process can provide for a better,

ing their ‘walled garden’ in a con-

more confidence-inspiring user expe-

trolled and secure way so that a cus-

rience. But other use cases could be

tomer can use the data for their

in the space of bill payments, where a

benefit with other products.” In some

S T R AT E GI C PART N ERSHI PS

“When it comes to our partners such as Fulcrum Digital Inc., a critical hallmark that we look for in a collaborator is f lexibility and agility. When collaborating with others we are looking for long term partners that we can share both successes and failures with and create future opportunities. We look for the type of collaborative partners that will share in the risks and the rewards and I think being able to share in that makes for a better relationship in the long run.”

J U LY 2 0 2 0

“ When I look at digital transformation cases the banks themselves are and being disruptive, it is important building new prodto move from a place where the ucts based on this digital and core businesses are not Open banking paradigm. The Consumer separate to be successful” — Mohammed Kamal, Senior Vice President, O&T, Mastercard

Application division here at Mastercard is helping our partners do just that. More generally, in the industry, I am seeing an increase in partnerships and collaboration between banks, which are well positioned with bank grade security and safety compliance built-in, with fintechs that are providing customers experiences the banks have not been able to provide in the past. At Mastercard, we want to support all members of the open banking ecosystem. We’re focused on delivering solutions that will enable these experiences, whether that is delivered just by a bank, just by a fintech, or in partnership.” With many organisations around the world being affected by the impact of COVID-19, Kamal explains that w w w.f in t e c hm a g a z in e . c o m

149

MASTERCARD

1966

Year founded

$12.5bn+ Revenue in US dollars (2017)

16,000 Number of employees

“ It’s visible when you look at a company, which ones have added digital as an afterthought, versus which companies actually reinventing themselves to be digitally native” — Mohammed Kamal, Senior Vice President, O&T, Mastercard J U LY 2 0 2 0

“Mastercard has very rigorous business continuity plans that are tested regularly so we are ready to respond when an unexpected crisis happens, such as COVID-19. As you would expect, the teams are executing our operations very well. We work very closely with our customers as well as having our

provide to help them?” Since the outbreak Mastercard has been implementing a variety of initiatives in order to help its customers navigate the impact of the pandemic. When it comes to digital transformation and adopting the current trends within the technology space, Kamal highlights the importance of having the right products and services to be able to capture the opportunities innovation provides. “I think that’s the key message, it’s not always easy to predict what the market will need in one go, but much of the time we are investing in flexible underlying product infrastructure, while the use cases themselves develop more organically. I think it’s important to build with flexibility so that, while you may build a set of technology or products for a particular own VCP processes to ensure that as

use case, or you have a business case

our customers encounter challenges

in mind, you also need to be able to

within their business we are able to

pivot the technology for different use

accommodate them. Our continuity

cases if the need should arise.”

plan not only looks at how our company could be impacted but whether our customers could be impacted, what policy changes we could make, what rule changes? And what can we w w w.f in t e c hm a g a z in e . c o m

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MSU FEDERAL CREDIT UNION: DIGITAL DISRUPTION IN FINTECH

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MSU FEDERAL CREDIT UNION

BENJAMIN MAXIM, ASSISTANT VICE PRESIDENT OF DIGITAL STRATEGY & INNOVATION, DISCUSSES HIS ORGANISATION’S DIGITAL TRANSFORMATION APPROACH AMIDST COVID-19

M 154

SU Federal Credit Union was founded in 1937 to help members achieve financial success and stability following the Great

Depression. It has remained dedicated to that same mission for more than 82 years. Its mission statement is simple: providing superior service while assisting members and employees to achieve financial security, their goals and ultimately, their dreams. Benjamin Maxim is the Assistant Vice President of Digital Strategy and Innovation for the Credit Union. Maxim is well aware of the importance of leading in the face of the COVID-19 pandemic. “It’s vital that you’re a strong communicator and offer transparent messaging,” he says. “Given the situation, people are concerned and uncertain, and they need someone to speak to them with confidence, understand their fears, and try to alleviate their worries. During times like these, it’s also important to continue to invest in technological advancements as these allow the organisation to continue to move forward.” J U LY 2 0 2 0

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MSU FEDERAL CREDIT UNION

The pandemic has resulted in many industries accelerating their digital transformation journeys and adopting new processes in order to avoid disruption as much as possible. However, financial institutions like MSUFCU were already ahead of the curve. “Digital has always been a focus and a priority of ours,” affirms Maxim. “We’ve built robust IT and UX teams in house to allow for greater control, which has enabled us to be extremely responsive to our members’ needs. Having the in-house teams 156

allows us to be nimble, agile and ready to

“ I’M FOCUSED ON CHAMPIONING INNOVATION ACROSS THE ORGANISATION AND ANALYSING EMERGING TRENDS AND TECHNOLOGIES” — Benjamin Maxim, Assistant Vice President of Digital Strategy and Innovation, MSUFCU

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Quickly and Easily Lock Your Visa with Card Lock from MSUFCU CLICK TO WATCH

0:35

157 respond to the latest trends and technol-

email address or phone number with

ogies. Additionally, we have established

M2M℠ which has meant a decrease

several strategic partnerships with

in the volume of calls to our call center

vendors, allowing us to capitalise on

and chats to our eServices team,” he

their strengths to enhance our own.”

says. “This has improved efficiency

In the last two years, MSUFCU

across the organisation.”

has launched its Member2Member℠

In October 2019, MSUFCU intro-

(M2M℠) transfer solution, in addition

duced its first member-facing Chabot

to modernising its existing member-

to extend its service hours. “We have

ship and loan application process by

an international membership living and

leveraging the ecommerce experience

working in various time zones and it’s

of bundling products and services

important to us that we are accessible

together into one streamlined applica-

to all of them as well as our members

tion. “Within our membership base,

in the U.S.,” explains Maxim. “This

you can now send money through any

solution enabled us to provide a better w w w.f in t e c hm a g a z in e . c o m

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experience for our members – when they need us. We continue to expand our Chatbot’s capabilities, and through this, our live chat employees and others can focus on more complex and meaningful transactions. In addition, our eServices team has grown exponentially, from just three employees when I started 13 years ago, to more than 75 employees today as our members’ behavior has changed over the years becoming more comfortable interacting through live chat and other digital touch points. J U LY 2 0 2 0

“ WE’VE BUILT ROBUST IT AND UX TEAMS IN HOUSE TO ALLOW FOR GREATER CONTROL, WHICH HAS ENABLED US TO BE EXTREMELY RESPONSIVE TO OUR MEMBERS’ NEEDS” — Benjamin Maxim, Assistant Vice President of Digital Strategy and Innovation, MSUFCU

“Whenever we release an innovation, we do so in gradual stages. First, we release it to a subset of employees and members to gather feedback along the way before going through the process of introducing it to all employees, and eventually to the full membership. Receiving feedback early in the cycle is key as it ensures we are able to address any issues successfully.” With a plethora of new innovations on the horizon at MSUFCU, the organisation’s digital drive shows no visible signs of slowing. “We’re currently investigating solutions with fintechs E X E C U T I V E P R OF IL E :

Benjamin Maxim Benjamin Maxim joined MSU Federal Credit Union in 2007 and currently serves as Assistant Vice President of Digital Strategy and Innovation. He is responsible for assessing emerging business trends and technologies, facilitating innovation throughout the Credit Union, and providing strategic direction for existing and future digital channels. Maxim began work initially as a Web Developer and in 2014, he became E-Commerce Manager before moving into roles including Assistant Vice President of Programming and Development and Assistant Vice President of Software Development. He earned a bachelor’s degree from Michigan State University. w w w.f in t e c hm a g a z in e . c o m

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R E I M A G I N E W H ATâ&#x20AC;&#x2122;S POSSIBLE WHEN YOU UNLOCK THE POWER O F Y O U R D ATA. J O I N T H E D ATA R E V O L U T I O N W I T H T R E L L A N C E.

“ WE’RE CURRENTLY INVESTIGATING SOLUTIONS WITH FINTECHS AND IN-HOUSE INNOVATION TEAMS THAT WILL HELP US INCREASE MEMBER ENGAGEMENT WITH OUR DIGITAL PLATFORMS, REDUCE FRAUD AND CREATE EFFICIENCIES THROUGH AUTOMATION USING TECHNOLOGIES LIKE RPA” — Benjamin Maxim, Assistant Vice President of Digital Strategy and Innovation, MSUFCU

and in-house innovation teams that will help us increase member engagement with our digital platforms, reduce fraud and create efficiencies through automation using technologies like RPA,” says Maxim. “We understand the importance of improving our processes and the way we work; it’s not just a case of bringing in another person; there are ways we can leverage technology to be both more efficient and more effective. We are also modernising our employee idea submission process to encourage collaboration and engagement from

MSUFCU’s Member2Member: Send Money Effortlessly to Your Friends and Family CLICK TO WATCH

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all our employees as they are the ones interacting with our members regularly, so they have a better understanding of member wants and needs.” Maxim acknowledges the challenge of a culture shift and is aware that some employees might be reluctant to change. “Our goal is to retain the employees we have and to make sure they are in the jobs that align with our business needs, while also providing the training and support they need to be successful in those roles. However, if they are unwilling to grow as individuals and learn new skills, then it will be more difficult to retain them long-term,” he explains. Maxim understands the importance of establishing key, strategic business relationships and believes his organisation is “only as good as its partners.” MSUFCU has formed long-term and mutually sustainable partnerships with Jack Henry, their core banking provider, and Visa over the past few years, and Maxim credits them with helping the organisation realise many of its ambitions. “We’ve spent several years solidifying our partnership with Jack Henry’s leadership team and developing a relationship with them. w w w.f in t e c hm a g a z in e . c o m

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MSU FEDERAL CREDIT UNION

We’re at a point now where we’re cocreating solutions in many cases. We also provide feedback by beta testing solutions they’re working on. We meet with them regularly, and they provide solutions that truly work for us. This relationship is important to us because if our core banking system isn’t strong, then we can’t be as successful an organisation as we’d like to be and our members need us to be,” explains Maxim. “Our relationship with our card provider, Visa, is similar. We’ve worked 164

with them on a number of technological initiatives. We were one of their first clients to go live with their Card On/Off

“ WE CONTINUE TO EXPAND OUR CHATBOT’S CAPABILITIES, AND THROUGH THIS, OUR LIVE CHAT EMPLOYEES AND OTHERS CAN FOCUS ON MORE COMPLEX AND MEANINGFUL TRANSACTIONS” — Benjamin Maxim, Assistant Vice President of Digital Strategy and Innovation, MSUFCU

solution, which enables people to lock their credit card if they lose or misplace it. We’re also working with them on travel-related APIs and to reduce fraud when travelling overseas. In addition, we worked with Visa to develop our Visa Signature cash back credit card. Visa has been a great partner and has enabled us to add many products and services benefitting our membership.” With the future in mind, Maxim has an idea of the effect digital will continue to have in the industry in the upcoming

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years. “I believe there will be varying

are many services, such as Netflix or

levels of comfort with people using

Amazon, that leverage their user’s data

digital products,” he says. “People will

to tailor an experience that is unique

still want to interact with us in person

to them, providing a personalised list

so it’s about how we use digital to aug-

of options or recommendations and

ment the experience they have with

the more the user is willing to share

us. We strive to provide a personalised

the more individual the experience

solution because everyone’s situation

becomes. We want to follow the same

is unique to them. As we innovate in the

process for financial services. The

digital financial space, we are focused

influence of data is huge and its influ-

on personalisation, encouraging finan-

ence will only continue to grow.”

cial wellness, and providing superior digital service to our members. There w w w.f in t e c hm a g a z in e . c o m

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STATE STREET GLOBAL ADVISORS: DIGITALLY TRANSFORMING LEGACY OPERATIONS WRITTEN BY

GEORGIA WILSON

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JAMES PEPPER

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S TAT E S T R E E T G L O B A L A D V I S O R S

JETINDER LALI, CHIEF DIGITAL OFFICER AT STATE STREET, DISCUSSES THE COMPANY’S DIGITAL TRANSFORMATION OF ITS LEGACY SYSTEMS AND ADOPTION OF INNOVATIVE TECHNOLOGY

hroughout his 25-year career, Jetinder Lali has been in the asset management industry, working for some of the largest

asset managers in the world, including JP Morgan, BlackRock and UBS. “After becoming somewhat 168

of a veteran within the industry I joined State Street Global Advisors as the Chief Digital Officer.” Lali describes State Street Global Advisors as the third largest asset manager in the world and a part of the world’s largest custodian. In 1993 State Street Global Advisors invented the world’s first exchange-traded fund (ETF), which has since grown to US$6trn organically. “We are innovators, we are leaders and we are collaborators.” Currently in the world of asset management, Lali has seen a shift within the sector that has seen technology taken more seriously. “It has become standard practice that digitalisation is either at the top, or is one of the top priorities of large asset firms. This is a direct result of our customers seeking more digital ways to engage with businesses. Data is also critically important and a challenge for the industry.” J U LY 2 0 2 0

‘Fearless Girl’ by Kristen Visbal, commissioned by State Street Global Advisors (SSGA), was installed on 7 March 2017 outside the New York Stock Exchange

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1978

Year founded

2,500+ Number of employees

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S TAT E S T R E E T G L O B A L A D V I S O R S

Since joining the company three years ago, Lali has led the company through its digital transformation program to unify its customer experience for the first time. “Due to the size of State Street Global Advisors, we have lots of different divisions and brands. As part of our transformation we have unified our divisions representing ourselves to our customers as one global firm, which took us 18 months to achieve. Now we are working on improving our back-end systems by 170

updating roughly 12 years of legacy systems and redundant websites.”

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“ WE RELY HEAVILY ON HAVING A CORE DATA INFRASTRUCTURE TO PROVIDE OUR SERVICES AS RECORD KEEPERS OF OVER 10% OF THE WORLD’S ASSETS” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors

State Street Global Advisors: Who We Are CLICK TO WATCH

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As Lali explains State Street Global Advisorsâ&#x20AC;&#x2122; digital transformation strategy, he breaks it down into three simple words: â&#x20AC;&#x153;Simplify, unify and amplify. In order to achieve this it is important for us to build the right foundations and decide what our architectural roadmap will look like in order to get us to where we want to be in the future. Over the last 18 months we have certainly taken care of unifying our web experience, data platforms and analytic systems, providing our customers with a 360 degree view. We are also making great w w w.f in t e c hm a g a z in e . c o m

IBM iX business designers envision brand experiences of the future and make them real.

Explore more at www.ibmix.com

SSGA Develops Next-Generation Digital Experience to Drive ETF Sales and Growth State Street Global Advisors (SSGA) is no stranger to shifting winds in the asset management sector. The organization’s parent company, State Street Corporation, is one of the world’s largest financial institutions. With increasing competition and demand for personalized content across each of its global practices, the investment management arm saw the opportunity to reimagine its digital experience to unify its global presence and more efficiently deliver localized content. Creating a Customer-Centric Digital Experience Platform—and an Operating Model to Support It In collaboration with long-time partner IBM iX, SSGA sought to more deeply understand their users’ needs across all points of digital engagement and build a world-class, frictionless experience to delight their customers. Anchored by several key guiding principles—such as moving from reactive engagement to proactive, enabling self-service, and leveraging data to better understand and refine the journey—SSGA and IBM iX set out to build not only an integrated digital platform to support their needs, but also establish and grow the right content capabilities and digital centers of excellence to support it in order to really drive measurable business value and ROI for the firm. Taking a design-led and human-centered approach, the team built a unified global digital experience platform (DXP) that would be customizable by region, language and investor types, complemented by a marketing data platform (MDP) to surface personalized content with a 360° customer view. IBM iX built the multi-site system on Adobe Experience Manager, replacing multiple custom legacy systems that were costly to

manage and led to disparate experiences. The new platform on AEM 6.3 Content Management System has a simplified and standardized design that leverages a responsive grid, seamless integration, with minimum customizations. To facilitate internal adoption of AEM, IBM iX also created a dynamic set of templates for SSGA’s marketing managers grounded in user-centric design principles to streamline the content delivery process. IBM iX also built a digital asset library and designed a governance model to reinforce brand consistency and efficiency across State Street’s digital ecosystem. Accelerated Adoption Delivers Accelerated Impact Since launching the platform, transitioning operations and training core teams with the support of IBM iX, SSGA has realized significant savings. Enabled by the Adobe Experience Cloud suite of applications, SSGA is now making more data-driven decisions, and can easily view how customers are interacting with their content, unveiling what information is most valuable to clients. Nearly 150 websites have been launched since the transformation, delivering a more consistent global experience in 22+ countries in more than ten languages, serving the needs of institutional users (wealth managers), intermediaries (brokers), ETF retailers and individuals. SSGA has also seen a 3.6X improvement in content accessibility with integration services through Akamai, as well as improved customer satisfaction. Explore more at ibmix.com

S TAT E S T R E E T G L O B A L A D V I S O R S

State Street Global Advisors: High Tech Automation vs. Old School Relationships CLICK TO WATCH

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progress in this area across our sales,

Lali. “We are also working with several

marketing and digital touch points. Our

automation solutions at both a deep

next steps are to look at our legacy

infrastructure level as well as at the

systems and understand which we

user level. Additionally, we are using

need for our operations and which we

automation technology to automate

need to build out.”

workflows, as well as harnessing cloud

To further its digitalisation journey,

technology to streamline our opera-

State Street Global Advisors is cur-

tions allowing us to move faster within

rently harnessing artificial intelligence

the industry.”

(AI), advanced analytics, automation

When it comes to data management,

and cloud. “Within our broader cor-

Lali says the company relies “ heavily

poration we have a data science team

on having a core data infrastructure

where we are currently working on a

to provide our services as custodians

joint advanced analytics project,” says

of over 10% of the world’s assets.

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E X E C U T I V E P R OF IL E :

“ WE ARE INNOVATORS, WE ARE LEADERS AND WE ARE COLLABORATORS” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors

Understandably, cybersecurity is incredibly important to us. We have a very robust infrastructure in place and a dedicated team to manage any threats. We are also continuously looking at technology from new providers such as Adobe, where we are starting to look at their cybersecurity services. In addition to Adobe, we currently use Akamai across the organisation.” With digital transformation comes disruption for any organisation,

Jetinder Lali Title: Chief Digital Officer Location: London, UK Jet Lali is the first Chief Digital Officer at State Street Global Advisors, which is one of the world’s leading Asset Management firms, with $2.7 trillion in assets under management. Jet has previously held similar leadership roles in both management consulting and industry including companies such as JPMorgan, Barclays Global Investors, BlackRock and UBS. He has over 20 years of experience in building and advising on market leading digital strategies and capabilities within financial services across all major financial markets, with experience of both B2B and B2C business models.

Lali highlights that, at State Street Global Advisors, the company splits w w w.f in t e c hm a g a z in e . c o m

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S TAT E S T R E E T G L O B A L A D V I S O R S

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“ ACROSS OUR ORGANISATION WE DEFINED OUR OPERATIONS AND OUR DIGITAL STRATEGY VERY EARLY ON WITH A FOUR-YEAR ROAD MAP IN MIND” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors

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S TAT E S T R E E T G L O B A L A D V I S O R S

its change management strategy into three key areas: people, process and technology. â&#x20AC;&#x153;Across our organisation, we defined our operations and our digital strategy very early on with a four-year road map in mind. We defined what capabilities we wanted to retain and where we had gaps, as well as the solutions to fill the gaps and potential partners such as IBM, which was very helpful in the simplification and rebuild of our web stack. When it comes to the processes, over the years they have 178

organically grown across our regions resulting in inconsistencies. So, like our technology, we looked to standardise our governance around data, processes and how we build solutions. Finally, in terms of people, we have several hundred working across the digital aspect of the organisation, but a lot of the technology we decided to use was new. As a result we spent a lot of time training our people across the world. Last year alone we did 4,000 hours of training as part of our partnership with Adobe, which we are looking to exceed this year.â&#x20AC;? Lali also highlights the importance of maintaining communication as part of a change management strategy. J U LY 2 0 2 0

“Everybody wants change, but everyone hates having to change. Therefore, we spend a lot of time communicating and training people on the technology we are using to give people a better understanding of what is possible.” Reflecting on State Street Global Advisors, Lali believes that the company’s biggest strengths are its ability to provide great partnerships for its customers, not just for its products but for its relationships it has across the industry, as well as its collaborative and innovative mindset, to drive the industry forward. “We’ve had many successes over the years, I would say that our biggest successes are our years of operation – over 120 years – as well as being the third largest asset manager in the world, inventing the first US listed ETF, building the first frontto-back platform for the industry and our leadership within environmental and social governance (ESG).”

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Monedo: the future of digital lending

180

WRITTEN BY

LEILA HAWKINS PRODUCED BY

GLEN WHITE

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MONEDO

Konstantinos Papakonstantinou, Chief Data Officer at Monedo, explains how data analytics and machine learning are transforming money lending

onstantinos Papakonstantinou remembers a time when the use of AI was barely spoken about in the financial sector.

“A few years back it was very hard to go to a conference and hear professionals from different organisations talk about leveraging alternative 182

data sources and machine learning to underwrite customers,” he says. “Now we see many are going down that path, and there’s a real shift towards automation based on machine learning and alternative data.” For online lending provider Monedo, data science, machine learning, artificial and decision intelligence (AI and DI) have been at the heart of the business since it was founded in 2012. Compared to traditional lending banks that verify income based on tax declarations, payslips and information provided by credit bureaus, Monedo acquires data from as many different data sources as possible, which translates into thousands of attributes that describe the customer, and which can then be fed into its machine learning model.

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MONEDO

“ There’s a real shift towards automation based on machine learning and alternative data” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo

The company’s main source of data is Kontomatik, an API that enables financial institutions to verify customers’ identities and access their banking activity. Monedo is also in the process of integrating Kontomatik’s scoring service, which is currently done in-house. Indeed, as the organisation has grown, it has begun to outsource technology to third parties. Dr Papakonstantinou explains that

Dr Papakonstantinou explains: “If you 184

this is a typical process for startups

have raw transaction data, enhanced

as they grow into scale-ups. “Startups

with labels for the different categories

tend to build everything in-house

of transactions, and transformed into

because integrating third parties is just

different features that accurately

too expensive, and because a smaller

describe the financial profile of the user,

team is more agile and has the capac-

you can underwrite more efficiently and

ity and the passion to do this. As you

achieve a much better performance

mature, one of the things you realise

than the banks that underwrite with

is that you need to have valuable part-

traditional methods.”

nerships and strategic alliances; you

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Monedo’s data sources CLICK TO WATCH

2:18

185 should refrain from building everything

worked closely together to develop the

in-house. You really need to leverage

functionality that Monedo needs. “It’s

the existing solutions that are out there.

a balance, I think third party compo-

“It’s a journey we also went through,”

nents certainly find their place in every

he continues. “We had a tendency

organisation that utilises a sophisticated

to build everything in-house, until

architecture for their products,” says

recently we moved to a new cloud-

Dr. Papakonstantinou.

based architecture where we replaced

When he first joined the organi-

all sorts of components with third

sation as a senior data scientist in

party components.”

2014, it was still a relatively young

A key example is Monedo’s loan

company, known as Kreditech. The

management and servicing platform

last two years has seen it undergo

built by Mambu, which provides

a strategy refocus and rebrand as

cloud solutions for banks and lend-

Monedo, with the appointment of

ing businesses. The two companies

Dr Papakonstantinou as Chief Data w w w.f in t e c hm a g a z in e . c o m

Boost financial services with open banking Business around the world transforms their financial services with Kontomatik using data aggregation, online identity verification, fraud prevention and machine learning based risk management.

Learn more

www.kontomatik.com contact@kontomatik.com

Officer to lead on data analysis and

solutions and add value for different

apply machine learning to automate

areas of the organisation,” he says.

processes and optimise decisions.

“As early as 6 months after I joined,

“We always wanted to expand the

I was promoted to a management posi-

data science use cases, to build more

tion and formed a multifunction team

E X E C U T I V E P R OF IL E :

Konstantinos Papakonstantinou Title: Chief Data Officer

Company: Monedo Holding GmbH

Industry: Financial Services Location: Germany Konstantinos Papakonstantinou is Monedo’s Chief Data Officer with over 12 years of experience as an individual contributor and a leader. His expertise lies in the field of data science and its applications in operations management, credit risk management, product personalization, conversion optimization, customer acquisition and retention. Prior to joining Kreditech’s data science team in Germany, Konstantinos studied and worked in educational institutes and high-tech organizations in multiple geographies. A passionate advocate of decision intelligence, in his current role in Monedo, Konstantinos is focusing on extracting value from data and unlocking the potential of machine learning in order to automate processes and optimize decisions. Konstantinos holds a MSc in Electrical Engineering from the University of Southern California and a PhD in Statistical Signal Processing from Telecom ParisTech. w w w.f in t e c hm a g a z in e . c o m

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MONEDO

“ We’re constantly looking for new data, but also how to leverage to a greater extent the data we already have in our possession, while at the same time building a framework for data governance” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo

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Monedo’s relationship with Stakeholders CLICK TO WATCH

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with data scientists, data warehouse engineers and business analysts, in order to start tackling product and marketing analytics.” The company found that during a period of large growth, product and marketing are obvious areas that could benefit from data science, and so Dr Papakonstantinou and his team looked at ways of optimising conversion for its products and increasing the marketing return on investment (ROI). From there the team focused on other areas beyond underwriting, like customer relationship management (CRM) and collections – and then also transformed every process within underwriting, like pricing and affordability, the process of estimating how much customers can afford to repay each month. Having a clear data strategy is crucial for an organisation as data hungry as Monedo. “We’re constantly looking for new data, but also for new ways to leverage, to a greater extent, the data we already have in our possession, while at the same time building a framework for data governance. As you grow from a startup and you w w w.f in t e c hm a g a z in e . c o m

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The way banks are built has changed. Meet Mambu - the cloud platform for composable banking that is leading the change. Composable banking helps banks and lending businesses evolve and compete in the fintech era.

“ We wanted to expand, to build more solutions and start adding value for different areas of the organisation” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo

and enabling as many stakeholders as possible to use it, is a key to maximise its value.” Monedo is undoubtedly a fastgrowing company. “The more time you spend with a growing organisation like Monedo, the more you also grow with it,” Dr Papakonstantinou says. “Strategies change, priorities change, resources change and you need to

scale up this is an important aspect

be able to adapt to different situations.”

you need to take into account – you

Adaptability has also been important

shouldn’t only care about value crea-

when it comes to managing his team.

tion, but also about value preservation.

“There are very smart, highly quali-

So, having clean good quality data

fied, strongly opinionated managers

Monedo’s View on the change of data & AI CLICK TO WATCH

1:40

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MONEDO

2012

Year founded

1mn+ Customers worldwide

350+ Number of employees

192

in the data space. It’s tantamount to

done on ensuring algorithmic fairness

managing a think tank. Everybody has

and removing any algorithmic bias.

their own opinion because they’re very

Moreover, a lot of publications and

good at what they do, and despite the

discussions at conferences and other

frequent healthy conflicts, you have to

events are looking at the impact of ML

make sure you reach a consensus as

and AI in society. I think that five years

much as possible.”

from now, we probably won’t be talk-

Looking ahead, he sees two main challenges for ML and AI: ethical concerns and challenges with wide-

ing about these challenges as they will have been resolved.” While many people are concerned

spread adoption. However, ultimately,

that AI may lead to a loss of jobs,

he strongly believes these will be

Dr Papakonstantinou believes it will

solved. “A lot of work is already being

actually create new opportunities.

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“We have the analogy of the Industrial

some positions will be lost, a lot more

Revolution. People were initially very

will be created.

sceptical that they would lose their

“More and more people will start

jobs to machines in factories, and

realising that adopting machine learn-

indeed many were replaced, but then

ing and AI in different areas adds value,

people learned how to work with those

and we’ll see that cultural change

machines and more positions were

within more organisations, and across

created than were lost. More positions

more industries.”

will be automated by algorithms but that doesn’t mean we’ll see unemployment by adopting machine learning and AI. We’ll optimise and automate different business processes, so while w w w.f in t e c hm a g a z in e . c o m

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Moneyfarm: meeting customer needs with innovative technology WRITTEN BY

GEORGIA WILSON PRODUCED BY

JUSTIN BRAND

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M O N E Y FA R M

Emanuele Blanco, Chief Technology Officer at Moneyfarm, discusses the company’s journey, technology trends in the industry and the impact of COVID-19

tarting its journey in Italy in 2011 as an investment business, Moneyfarm was created to help people make better decisions

with their money. “I officially joined Moneyfarm three years ago,” says Emanuele Blanco, Chief 196

Technology Officer at the business “At Moneyfarm we really think about our customers and their needs. In the early days we just provided investment advice, but now we really want to become a partner for our customers and a solution for managing wealth. Our goal is to really help our customers manage their wealth through every phase of their lives. I believe that what makes us different from our competitors is the human element of our operations. For us, our investment advisors are a key part of Moneyfarm – of course we have a site in which you can manage your investments online – but our human workforce provides a different level of support to our customers. So, I think what really differentiates us from our competitors is the human touch that we put in managing our customer and the level of expertise we provide to ensure that we are J U LY 2 0 2 0

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Founders Giovanni Dapra and Paolo Galvani

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M O N E Y FA R M

“ At Moneyfarm we really think about our customers and their needs” — Emanuele Blanco, Chief Technology Officer, Moneyfarm

fulfilling our mission to educate people on how to better manage their wealth.” Over the past 10 years as the world has become driven by digital innovation, Blanco highlights that “technology has started to play a more important role in areas that were not really seen as too much of a focus before, such as user experience or mobile buyers which are definitely more prominent now. I would say that definitely over the past 10 years I’ve seen lots of companies go mobile first, as while people

198

may still use a computer nine to five at work, the majority of the population own a smartphone and in their free time will use their phones or tablets instead of a computer. Back in 2010 it was really web focused, but now it’s mobile, which is one of the biggest changes that I’ve seen. For this reason, we’re really focusing our efforts on creating a mobile-first experience that our customers can use.” From a process standpoint Blanco has seen Moneyfarm evolve alongside the industry to have “the ability to implement continuous delivery of products, making sure that we can gather and track changes, as well as experiment for our J U LY 2 0 2 0

Embark on a journey with Moneyfarm CLICK TO WATCH

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199 customer to build the products they

products we need to go to market fast,

need at a quicker pace to stay ahead of

which is why we are leveraging the

the market.” Other trends that Blanco

features of technology as well as modi-

highlights within the industry include

fying them and experimenting with split

blockchain and cryptocurrencies, how-

testing. It’s tempting to go and do some-

ever this isn’t something Moneyfarm is

thing big, but what we really want is to

currently doing.

put something in front of our customer.

When it comes to the company’s

So we try everything we can to make

innovation strategy, Moneyfarm

sure that we can get feedback from our

acknowledges the importance of

users and from our customers, utilising

having a great product. “We think our

this information to make the right deci-

product is one of the best around. To

sion. For us, technology is an enabler

achieve this we have a very talented

that allows us to serve our mission in a

pool of people that drive experimenta-

more efficient way, taking our custom-

tion. When it comes to innovating new

ers closer to our goal of managing their w w w.f in t e c hm a g a z in e . c o m

M O N E Y FA R M

200

wealth in a hassle free method. So we

us and we integrate this with our CRM

run a lot of experiments, we have proof

system. This is something that we

of concepts and we make sure that we

launched very recently and results are

keep an eye on trends and technologies

promising so far. In addition to machine

to pick up the ones that are right for us

learning we are also doing a lot with

and have widespread adoption within

our data. We have around 40,000

the company.â&#x20AC;?

active customers which are invested

Currently, Moneyfarm has some

in our platform and we use our data

applications of machine learning,

warehousing to make sure that our

which Blanco says the company uses

customer advisors have access to the

to predict customer behaviour. We

relevant data in their dashboard so

have built our predictive model to

there is quite a lot of investment from

understand what kind of customers

that perspective. Though we are not

are more likely to invest money with

doing much with artificial intelligence

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E X E C U T I V E P R OF IL E :

Emanuele Blanco Title: Chief Technology Officer Location: Surrey, UK

at the moment, it’s something that we always have an eye on and we are looking for opportunities whether we can leverage deep learning techniques in order to help our business.” An area that Moneyfarm is also currently looking into is the use of an API

Emanuele Blanco is the Chief Technology Officer at Moneyfarm, the leading pan-European digital wealth manager. Emanuele spent the past 10 years of his career working with businesses across sectors such as government, finance, and e-commerce, helping them to deliver value to their customers via modern technology practices. He joined Moneyfarm as Lead Software Engineer in 2017, before being appointed CTO in August 2019.

suite and the possibility of connecting to its platform by a set of APIs. This can then be used by multiple partners, allowing them to integrate with Moneyfarm’s platform. “Another area we have recently looked into is switching from in-house solutions to software w w w.f in t e c hm a g a z in e . c o m

201

“ Financial markets were particularly hit by the crisis and this resulted in a higher level of load for us because people are concerned and want to know what is happening with their investment” — Emanuele Blanco, Chief Technology Officer, Moneyfarm

could do this ourselves or not, as well as whether we want to if it will be detrimental to our customers and whether we’d rather be spending the money doing something for our customers.” As a result, Blanco believes it important to have strategic partnerships. “Our success is also their success and vice versa,” he says. “So, when we find the partners that are for us in the long term, of course it’s a mutually beneficial relationship. I think it’s very important to establish a good relationship with a strategic partner because they are experts in their field and are helping your company to be successful.” Over the years Moneyfarm has worked with several key partners including Natterbox for its communication system, AWS for its cloud services and

as a service (SaaS) solutions,” says

solutions, Auth0 for its identity man-

Blanco. “I think that once you start to

agement and Tableau.

grow – especially a mid-sized company

Other technologies Blanco sees

like us – it becomes difficult to develop

Moneyfarm consider in the future

the right tools as the requirements

include, Blockchain technology, “there

increase. But we are not here to run the

are a lot of things we can do with

platform orchestration system. We’re

Blockchain in order to make sure that

here to help our customers, and so I

the data we use can’t be tampered with,

think, you get to a point in which we

currently we are having discussion as

have to make a call as to whether we

to the best use cases for it.” w w w.f in t e c hm a g a z in e . c o m

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M O N E Y FA R M

Chief Investment Officer Richard Flax speaking at Bloomberg event on the future of ETFs

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THE IMPACT OF COVID-19 “Of course the situation has been a bit of a roller coaster,” says Blanco. “The financial markets were particularly hit by the crisis and this resulted in a higher level of load for us because people are concerned and want to know what is happening with their investment. We’ve seen a huge spike on our platform but we have actually handled the load pretty well. So from that side we were able to serve our customers without any interruptions, aside from the spike in activities, but now the situation is a bit more settled. I am very

“ We think our product is one of the best products around. To achieve this we have a very talented pool of people that drive experimentation” — Emanuele Blanco, Chief Technology Officer, Moneyfarm

w w w.f in t e c hm a g a z in e . c o m

205

M O N E Y FA R M

2011

Year founded

£2.2mn Revenue

140

Number of employees 206

“ You can’t expect people to go to the bank branch anymore to meet their financial advisor. So having a solid digital presence is going to be key” — Emanuele Blanco, Chief Technology Officer, Moneyfarm

very proud of how we have handled this situation effectively. At Moneyfarm a lot of our departments were already used to working remotely as we are all quite distributed so switching to being fully remote has been quite smooth. Of course it’s been a challenge for some parts of the organisation, but I think we’ve worked really well. But I believe that this will be an emerging challenge for industries as the world becomes more digital and while this is a challenge it will also provide huge opportunity.”

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When it comes to technological inno-

to be about making sure you can put

vation as a result of the virus, Blanco

the product in front of your customer in

believes that remote working is the

a digital way. You can’t expect people

biggest topic. All the tools that allow

to go to the bank branch anymore to

you to be more productive in terms of

meet their financial advisor. So having a

working outside of the office such as

solid digital presence is going to be key.”

Zoom will see huge growth. “For example, since the lockdown Zoom has gone from 10 million people to 300 million people, showing a lot of interest in all these remote productivity tools. I also think that in terms of how the industry has changed, I think the future is going w w w.f in t e c hm a g a z in e . c o m

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