Webinar: Critical Steps to Accelerate Digital Transformation in Customer Support

Webinar: Critical Steps to Accelerate Digital Transformation in Customer Support

Wednesday June 3  |  2pm ET  / 11am PT

Register now >>

When COVID-19 hit, the financial services sector was faced with an abrupt realization that digital transformation needed to accelerate. While moving to a digital-first approach is a massive undertaking, it can be tackled over a period of time. Financial services can see impactful digital changes implemented in hours, not years.

Most importantly, digital transformation places clients at the center of business. An exceptional customer support experience distinguishes leading financial services from the rest, helping to retain clients well beyond these unprecedented times.

Join Zendesk’s Alex Mack, Sr. Solutions PMM, and Bank Novo’s Head of Customer Success, Brian Kale, for a live webinar. They’ll discuss quick steps financial institutions can take to digitize their customer experiences at a time when scaling support operations is crucial.

They’ll walk through digital customer support initiatives that are quick to deploy and can deliver big results. Learn how to:

  • Express empathy and build trust through personalization
  • Scale customer support with help centers and AI
  • Move customer conversations to SMS, social, and third party messaging platforms
  • Empower remote collaboration to expedite requests

See how these customer-centric initiatives can help scale your support today while strengthening your client experience for the future.

Find out more >>

What Leading Challenger Banks Have Learned on Their Journey to Build a Digital-Only Bank

What Leading Challenger Banks Have Learned on Their Journey to Build a Digital-Only Bank

Finovate’s Charlotte Burgess spoke to Michal Kissos Hertzog, CEO, digital bank Pepper and insha’s Founder and Managing Director, Yakup Sezer, about the challenges of setting up a digital-only bank, and how to get the customer experience right with zero face-to-face interaction.

What key lessons have your challenger banks learnt as you looked to be digital only?

Michal Kissos Hertzog: One key lesson businesses have learned is that you can’t just paste a “digital core” over an incumbent bank. They have to be truly digital or there will be limitations and barriers.

The benefits of having a business model that is digital to its core is that banks can adapt quickly to constantly evolving customer demand, technology and innovation. Incumbents with legacy systems need to adjust quickly or partner with tech and fintech companies, or innovation will always be slower.

Yakub Sezer: The learning curve is very steep. When building a bank from scratch, especially in countries with strong regulatory bodies such as Germany, there’s a myriad of things to consider on the way, and many hurdles to overcome.

Courage is a necessity: If you have too many reservations about what you do as an entrepreneur, you’re inclined to fail. Learning to fail fast and get back on track even faster is crucial, and so is a strong partnership network. With Albaraka Türk, we’re lucky to have a strong investor with roots in our market segment behind us, but building a fintech-spirited bank out of a corporate culture is a completely different challenge.

Why do you think we have seen such a boom of “digital-only banks,” and do you think these challengers have the ability to take on those more entrenched players?

Sezer: Consumers are used to a level of convenience from their personal lives that it’s only natural they want to handle their finances in an equally convenient way.

Challenger banks have much faster innovation cycles and often enable a company culture that encourages a team to try out things, and fail where necessary, and learn from that, and then go on and improve, facilitated through digital organizational patterns, something legacy banks have been lacking for the longest time . However, I don’t necessarily see challenger banks and legacy banks as mutually exclusive. We’ve seen many great partnerships developing over the last years and both sides can benefit from each other in various areas.

Hertzog: The profit and loss model no longer works. Unlike the incumbents, digital-only banks have the advantage of being able to utilize data to operate on customers first, profit second basis. Customer needs and demands are changing and they expect so much more from the companies they engage with on a daily basis.

For example, Pepper’s research found that two thirds (67%) of Brits don’t feel well-equipped to make the best financial decisions for themselves, yet nearly half (47%) believe it’s a bank’s duty to help them make better financial decisions. This shows that banks need to do more in providing the necessary tools to help consumers make the best financial decisions.

This is something that many challengers have already achieved and are excelling at, so for the incumbents, it really is a question of adapt or die.

How do you ensure a great customer experience when you are a digital bank?

Hertzog: Unlike traditional banks who have implemented technology solutions to improve how they currently work, digital banks tend to do things differently. They work hard to identify customer pain points and then implement tech solutions to solve them.

Another way is by leveraging data. Digital banks might not have the long history of data that the incumbents do, but they are far better at utilizing it to adapt to consumer demand and offer personalized services. This typically creates a much better experience for the customer. For example, we know that debt is a huge problem for many people, so at Pepper, we use data to provide our customers with the necessary guidance before this happens; such as suggesting cheaper loan alternatives to an overdraft.

Sezer: For us, it’s been very important to find a strong niche. As a digital bank, we’re obviously attracting people that are looking for a very high level of convenience in banking; but we also have strong moral principles when it comes to what we do with our customers’ money. We’re also convinced that legacy banks have been doing certain things right: personal customer service is definitely a plus.

We’re combining the best of both worlds: a mobile-first banking experience, that offers consumers the possibility to get in touch with their beliefs and moral convictions through a personal banking partner.

Finally then, how do you see fintech as a whole evolving over the next decade?

Sezer: B2B solutions, especially will continue to gain traction across the board, and co-operation between digital and legacy banks will play an increasingly important role throughout Europe. But B2C is going to evolve as well; handling your financial situation will not be only banking anymore. With the ability to monitor personal spending habits and saving goals on your phone, customers will always be aware of their financial situation.

Hertzog: In the next decade, we can expect to see a lot more partnerships and collaborations – not just between banks and fintechs, but also fintech to fintech partnerships. Many successful businesses realize the importance of collaboration, so they can focus on what they do best and use other companies for the rest.

The other trend we can expect from fintech is increased personalization through the use of AI. At Pepper, we envisage a world where a consumer enters their favorite coffee shop, and we drop money into their account to pay for their coffee as a reward. This level of personalization and customer obsession will dramatically reform the banking industry in particular, as consumers opt for products that truly understand them and their needs.

How Accusoft’s FormSuite for Invoices Puts Machine Learning and RPA to Work

How Accusoft’s FormSuite for Invoices Puts Machine Learning and RPA to Work

This is a sponsored post by Accusoft. For more information on sponsored contributions please email sponsor@finovate.com.

Machine Learning continues to dominate conversations across the fintech ecosystem, but one aspect that rarely gets into the limelight is where the data to train the algorithms actually comes from.

Finovate sat down with Tracy Schlabach, Senior Manager, Product and Customer Marketing at Accusoft to discuss the company’s latest technology, the data challenges they overcame, and why having a symbiotic relationship with their clients drives their strategy.

Finovate: Give us an overview of what FormSuite for Invoices does.

Tracy Schlabach: FormSuite for Invoices is a toolkit for developers that are building invoice processing software solutions. FormSuite for Invoices does the heavy lifting of invoice processing, solving the hard part of finding and extracting data, such as invoice number, purchase order number, total due, line item quantity, line item description, and other data. It is configurable by the developer to extract the data specific to their needs.

Finovate: What are the technical differences between FormSuite for Structured Forms and FormSuite for Invoices?

Schlabach: FormSuite for Structured Forms deals with fixed forms, where the location of the information doesn’t move, such as a tax form, while FormSuite for Invoices deals with what we call semi-structured forms since the locations of certain values might move around the page based on the data.

For example, the “Total Due” field would move down in an invoice that has more line items. While FormSuite for Structured Forms does use AI to identify which form was passed in and to extract the data, the AI is more limited than what is required to process more dynamic content such as invoices.

FormSuite for Invoices uses some of the latest machine learning (ML) to be able to extract data from the line item tables found in invoices. This type of ML is what you hear about most often these days; deep learning with supervised and unsupervised training of a custom ResNet convolutional neural network. This technology “learns” from the changes that users make to the output results. For example, if the Total Due information on ABC Company’s invoice is located in a different quadrant on the document, the user will correct the output information. The ML technology in FormSuite for Invoices learns from these corrections, ultimately increasing confidence values.

A lot of our customers are dealing with both types of forms, structured and semi-structured, so we see people using these toolkits in combination to solve their overall forms processing challenges.

Finovate: What role does Robotic Processing Automation (RPA) play in FormSuite for Invoices?

Schlabach: Both FormSuite for Invoices and FormSuite for Structured forms have been used to serve as a data input source for RPA. When companies are using RPA to automate data entry on legacy systems, that data has to come from somewhere. Before RPA, a data entry person might key data from a piece of paper or from a computer screen into another screen that has the legacy application running on it. RPA performs the typing in place of that person, but now that data has to come from somewhere. If the data isn’t digital, for example, it is on a piece of paper, that paper can be scanned and the data extracted with one of our FormSuite products allowing the RPA robot to type that data into the legacy application.

Document capture and RPA make great partners in this way, automating what was previously a tedious and time-consuming job. Having that data available in systems quicker allows people to have quicker access to the data and make decisions faster. And the people doing the data entry are freed up to do more valuable work.

Finovate: What was the biggest challenge your team had to overcome in launching FormSuite for Invoices?

Schlabach: Line item tables are particularly challenging on multiple fronts. Their format varies a lot. Some have graphic lines surrounding each cell, but some are what we call white space tables which just use spacing to align the rows and columns. All the variation makes it really hard.

In addition, in order to use any ML, you have to have a lot of data to train with. We tried to solve the table detection and recognition using data from the leading research papers in this space, those that were winners of various ML competitions. But, we found they always fell short in some subset of our test data. 

Eventually, after working with various algorithms, one of our Principle Engineers identified a way to make a significant improvement in the ML algorithm, and the results are quite impressive. To solve the data challenge, we used a number of unique ideas to source the invoice images and used raw manpower (internal crowdsourcing) to create the “ground truth,” the correct values that are used in training and testing the machine learning.

It was an impressive effort that had the entire Accusoft organization contributing to our training data. We even had our CEO helping with the data creation at one point.

Finovate: Aside from the obvious benefit of saving time on data entry, what other benefits does FormSuite for Invoices bring to an organization?

Schlabach: There are several benefits. With Accusoft specializing in solutions for content processing, conversion, and automation solutions since 1991, developers can focus on their core strengths and let Accusoft handle the heavy lifting of content capture. As a toolkit, FormSuite for Invoices helps developers solve the most challenging aspect of the invoice process: data extraction. By embedding FormSuite for Invoices, developers significantly shorten their product’s time to market.

On the end-user side, automating invoice processing has been shown to contribute many benefits. The data entry, as mentioned, is the obvious benefit. However, companies also see dollar savings by paying invoices sooner and recognizing early payment discounts. In addition, with the speed of business today, having visibility to data is important. Invoice processing automation helps companies see a more accurate picture of their cash flow much quicker.

Finovate: So, what do you see as the next evolution of this technology?

Schlabach: As customers provide feedback, sometimes in the form of challenging images, we make improvements to the technology. That is the symbiotic value we have seen in many of our partnerships for document capture products. When partners report challenging images, we incorporate improvements into our products to better handle those images. We see this in our forms processing solutions, our barcode recognition product, our OCR and PDF products, and our viewer. We continually evolve our products, and as the exposure to documents in the wild increases, our products improve. 

We also see this technology expanding into other semi-structured forms use cases. Credit card statement processing, bills of lading, and purchase orders are just a few of the documents that could be processed using this technology. There are some different challenges in those types of documents, but there are also a lot of similarities to invoices that we can take advantage of.

Webinar: Loan Defaults are About to Surge – What Have We Learned from Past Crises?

As the Covid-19 pandemic continues to unfold, loan servicers are experiencing unprecedented call center and default volumes as customers struggle to stay above water. With a looming global recession in 2020, financial institutions are reevaluating their loan servicing operations across the board (mortgage, auto, commercial, and personal).

During the last financial crisis in 2008, the rate of foreclosures in the United States more than quadrupled over five years, reaching a high of 1.18 million homes as falling valuations and high unemployment pushed people into default. At the same time, 3.7 million homes were in serious delinquency.

Watch the DXC Technology discussion on what lessons can be drawn from previous downturns and how institutions can better prepare their operations, technologies, and customers for what’s ahead. Topics included:

  • Scalability
    How to rapidly scale capacity and quickly train internal resources and customers while maintaining customer satisfaction.
  • Self-service and a single source of truth
    How to give customers more control over the process
  • Speed to change
    How to proactively react in a matter of days– not weeks or months– in a dynamically changing environment.
  • Auditing
    How to maintain a consistent audit trail throughout the process

Featuring Bart Bailey, Head of Global Lending Product Management, DXC Technology and David Penn, Research Analyst, Finovate.

Celebrating #WomenInFintech

Celebrating #WomenInFintech

At the beginning of this week, Greg Palmer wrote,

In order for fintech to be for everyone, it needs to be from everyone.

It’s a line that will strike a chord with anyone, across industries, who find themselves in the minority within teams and businesses, or even the sole representative of a different background or perspective.

Addressing gender-gap challenges in the finance industry is on-going, and a key part of this is providing a platform for women to share their insights and vision for the future of fintech. As part of this endeavor, we brought together some of the leading women from FinovateEurope to share their thoughts not only on issues on diversity in the workplace, but also on the key pain points in their field and their ideas on how to overcome them.

First, here’s a look at an interview with Dr. Louise Beaumont, Tech U.K.’s Co-Chair of the Open Banking & Payments Working Group. Beaumont was the Chair of the Open Banking Industry Stage at FinovateEurope last month and spoke with Finovate Research Analyst David Penn on the future of open finance, why banks need to believe they are trusted, and creating a full data daisy.

Penn also interviewed Ghela Boskovich, Founder of FemTechGlobal and Chair of the Digital Future Industry Stage at FinovateEurope. In this conversation, Boskovich explores why culture is the cornerstone on which financial institutions built looks at and the need for more public education around data.

The next interview was with Theo Lau, Founder at Unconventional Ventures and Chair of FinovateEurope’s Future Tech Industry Stage. Lau explores the challenges AI presents to legacy businesses and gender diversity in fintech.

Finally, here’s a conversation with Simone Vroegop, Head of European Product Management of Financial Technology at Brown Brothers Harriman. Vroegop discusses why it is crucial to have an open mind and look to where value can be added to an asset manager’s operating system, and why she’s surprised that hasn’t been more disruption in the sector.

Watch all our interviews with #WomenInFintech now >>


To promote the gender goal of 50/50 diversity in financial services, women who register by this Friday, March 13, can purchase a ticket to any 2020 Finovate event at a 50% discount. Just enter the code EQUALITY on the booking form.

What Leading Challenger Banks Learned While Building a Digital-Only Bank

As part of our ongoing #WomeninFintech series, and to celebrate International Womens’ Day, we sat down with several women leading the way in their sector and picked their brains on their role and the future of the industry. First up is Michal Kissos Hertzog, CEO of digital bank Pepper on the challenges of… challenger banking.

Finovate: What key lessons have challenger banks learned on their journey to be digital only?

Michal Hertzog: One key lesson businesses have learned is that you can’t just paste a “digital core” over an incumbent bank. They have to be truly digital or there will be limitations and barriers. The benefits of having a business model that is digital to its core is that banks can adapt quickly to constantly evolving customer demand, technology, and innovation. Incumbents with legacy systems need to adjust quickly or partner with tech and fintech companies, or innovation will always be slower.

Finovate: Why have we seen such a boom of “digital-only banks?” Do you think these challengers have the ability to take on the more entrenched players?

Hertzog: The profit and loss model no longer works. Unlike the incumbents, digital-only banks have the advantage of being able to utilize data to operate on customers first, profit second basis. Customer needs and demands are changing and they expect so much more from the companies they engage with on a daily basis. For example, Pepper’s research found that two thirds (67%) of Brits don’t feel well-equipped to make the best financial decisions for themselves, yet nearly half (47%) believe it’s a bank’s duty to help them make better financial decisions. This shows that banks need to do more in providing the necessary tools to help consumers make the best financial decisions.

This is something that many challengers have already achieved and are excelling at, so for the incumbents, it really is a question of adapt or die. Ultimately, this customer-first approach will benefit the bank, as their customers are more likely to opt for greater profit-producing solutions such as mortgages or investment products. For example, Pepper Invest provides customers with tips, guidance, and insights to break down the barriers to the investment market for all consumers, regardless of their financial ability.

Finovate: How do you ensure a great customer experience when you are a digital bank?

Unlike traditional banks who have implemented technology solutions to improve how they currently work, digital banks tend to do things differently. They work hard to identify customer pain points and then implement tech solutions to solve them.

Another way is by leveraging data. Digital banks might not have the long history of data that the incumbents do, but they are far better at utilizing it to adapt to consumer demand and offer personalized services. This typically creates a much better experience for the customer. For example, we know that debt is a huge problem for many people, so at Pepper, we use data to provide our customers with the necessary guidance before this happens, such as suggesting cheaper loan alternatives to an overdraft.

Finovate: How do you see fintech as a whole evolving over the next decade?

In the next decade, we can expect to see a lot more partnerships and collaborations – not just between banks and fintechs, but also fintech-to-fintech partnerships. Many successful businesses realize the importance of collaboration, so they can focus on what they do best and use other companies for the rest.

The other trend we can expect from fintech is increased personalization through the use of AI. At Pepper, we envisage a world where a consumer enters their favorite coffee shop, and we drop money into their account to pay for their coffee as a reward. This level of personalization and customer obsession will dramatically reform the banking industry in particular, as consumers opt for products that truly understand them and their needs.


To promote the gender goal of 50/50 diversity in financial services, women who register by this Friday, March 13, can purchase a ticket to any 2020 Finovate event at a 50% discount. Just enter the code EQUALITY on the booking form.

The Best of Europe’s Fintech at FinovateEurope 2020

The Best of Europe’s Fintech at FinovateEurope 2020

Fintech innovation is growing at an exponential rate and the need for financial institutions to embrace digital transformation has never been more urgent. We are at the beginning of a new S curve; just as the smartphone began to transform financial services in 2007, we now face unprecedented change driven by artificial intelligence, 5G and quantum computing.

In Berlin in February, FinovateEurope brought together 140+ expert speakers; 50+ cutting-edge demoing companies and 1,000+ attendees to explore the road to success in a brave new digital world.

The first day got off to a rousing start with a keynote address from Steven van Belleghem, author of Customers The Day After Tomorrow. His key message? The number one resource that we are all short of is time; the companies that save customers time are really solving a problem for them. The tech giants are excelling at this – how can financial institutions emulate their approach? If they don’t address real customer pain-points they risk losing them to new competitors.

In a new initiative for 2020 we then offered the audience the choice of five industry stages to attend – Digital Future, Open Banking Future, Future Tech, Future Payments, and Future Insurance. Themes that cropped up repeatedly across all five stages were the critical importance of the customer experience, the ability to effectively leverage data, and the need to embrace new technologies for real business reasons– not just for window dressing.

Two days of over 50 live demos followed, once again putting innovation front-and-center on the stage. Our unique demo model showcased the most transformative solutions currently being created across the whole fintech value chain and gave the audience the chance to speak to the innovators behind the most exciting tech in finance.

Across the whole event we covered a myriad of topics – from digital journeys to customer experience, open banking to payments, challenger banks to insurtech, digital identity to financial crime, AI to blockchain – and we launched three new initiatives.

Our Start-up Booster program was a huge hit with startups seeking expert advice around funding, scaling, and partnerships.

The Executive Reboot program allowed C-suite executives to brainstorm how to address their legacy culture and find a path to change with our keynote speakers.

And our Women in Fintech program brought together a highly engaged audience to explore the critical need for of diversity in financial services.

It was a jam-packed three days and the feedback was amazing – we look forward to returning to Berlin for more next year.

-Katie Gwynn-Williams, FinovateEurope 2020 Director

Catch the photos from FinovateEurope 2020 >>

Photos from FinovateEurope 2020

Improving Payable Processes: An Implementation Primer

Improving Payable Processes: An Implementation Primer

This is a sponsored post by Accusoft. For more information on sponsored contributions please email sponsor@finovate.com.

Accounts payable (AP) processes remain a sticking point for many organizations. Caught between the efficiency issues of paper-based solutions and the potential complexity of adopting technology-driven services, stagnation often results. Accusoft explores its top five tips to smooth out your system and reap the rewards.

Businesses now recognize the necessity of change, but many aren’t sure where to start. When it comes to new permutations of payable processes, a roadmap is invaluable. Here’s a look at five key forms completion and invoice processing improvements to help companies account for evolving AP expectations.

  1. Identifying errors

Staff remain the biggest source of AP errors. There’s no malice here; humans simply aren’t the ideal candidates for repetitive data entry. In this case, effective implementation of new processes depends on customizable software tools capable of accurately capturing forms data and learning over time to better identify and avoid common errors. The benefit? Staff are free to work on time-sensitive AP approval and reviews rather than double-checking basic forms data.

2. Improving invoice routes

Invoice routing is time-consuming and often confusing for AP staff. To avoid potential oversights, most companies use two to three approvers per invoice, creating multiple approval workflows. While the process reduces total error rates, it also introduces new complexity. What happens if invoice versions don’t match or approvers don’t agree on their figures? In the best-case scenario, your company needs extra time to process every invoice. Worst case? Double payment of AP invoices or payments result in missed critical deadlines. Here, a single-application approach to invoice processing helps improve invoice routes and reduce redundant approval steps.

3. Integrating data location

Where is your accounts payable data located? For many companies, there’s no easy answer; some invoices are paper, others are digitally stored on secure servers, and there are still more trapped in emails and messages across your organization. Instead of chasing down AP data, implement an invoice rehoming process. Solutions like Accusoft’s FormSuite for Invoices support thousands of invoice formats and keep them all in the same place.

4. Innovating at speed and scale

Complexity holds back many accounts payable programs. If new technologies complicate existing processes, employee error rates will go up and there’s a chance they’ll avoid digital deployments altogether in favor of familiar paper alternatives. In this case, automation is the key to implementation; speedy solutions capable of scanning paper forms, identifying key data, and then digitally converting this information at scale. 

5. Increasing visibility

You can’t fix what you can’t see. Paper-based invoice processing naturally frustrates visibility by making it difficult to find key documents and assess total financial liabilities. Integrated APIs that work with your existing accounts payable applications can help improve inherent visibility by creating a single source of AP data under the secure umbrella of your corporate IT infrastructure.

Want to learn more about the potential pathways available for companies to improve their AP processes and reduce total complexity? Check out Volume 1 of our Accounts Payable eGuide series, No Pain, No Gain?

Future Banking: Creating an ‘Incumbent Challenger’

Finovate talks with Ronit Ghose, global head of banks research and co-head of the fintech theme group at Citi about the future of challenger banks and why some shouldn’t be calling themselves a “fintech” at all.

Finovate: How would you define the different types of challenger bank that exist today, and what are the key differentiating factors between them?

Ronit Ghose: Challenger banks are designed around the digital revolution and are able to leverage data insights via advanced technology stacks. I’d say there are three types of challenger banks that have emerged:

  • The first are standalone challenger banks, which are primarily Fintech companies leveraging technology and data to streamline retail banking by offering better convenience and pricing.
  • The second are incumbent-led challenger banks, started within legacy banks through investment in technology and by creating new digital-only banks.
  • Finally, we’re seeing BigTech-led challenger banks who can use their vast networks to acquire customers quickly as they branch out into financial services.

Finovate: Interesting! So, we’ve seen many incumbent banks attempt to set up their own challenger banks – how successful has this been, what lessons should others learn, and how can banks make their back end look more like a digitally-native company’s?

Ghose: Over the past five years or so, especially since 2016 through 2017, incumbent banks have moved from ignoring or mocking the new entrants to engaging with them and giving them the best testimonial possible: They have begun copying them by setting up their own new businesses. While the results have been mixed, the success or failure of incumbents in this field could be characterized using three factors: markets, technology and operating model or culture.

So in most cases, incumbent banks launch a challenger bank in a market where they are already active; albeit they use their new proposition to better target a specific segment, such as millennials or digitally-savvy customers. With regards to technology, in the past 12 to 18 months incumbent banks appear to be moving to consider more disruptive technology and business model approaches, and to attempt to actually build new brands or businesses “like a startup”. If you aren’t doing new tech, then stop calling yourself challenger or fintech. ‎

Finally, we have to consider bank employee incentives, training, and formation are the human capital equivalent of a fixed income instrument. By contrast, fintech founders work and their employees are growth equity to the bank employees’ fixed coupon bond. In the language of financial instruments, can banks become convertibles not just bonds? ‎

Finovate: Moving away from challenger banks to other new market entrants, to what extent do incumbent banks fear big technology companies over fintechs?

Ghose: The emergence of BigTech has led to heightened competition in the financial services sector. I think the challenge BigTech poses for incumbent and standalone challenger banks is daunting, given the absence of any cost drag from legacy information technology (IT) systems and underused branch networks (common problems for banks) and their natural advantage in customer acquisition owing to their high user engagement models.

One of the most prominent of these is in Korea, where popular social messaging app Kakao Talk launched a digital-only bank in 2017, acquiring two million customers in a short span of just two weeks from launch date. Similarly in China, challenger banks such as WeBank, backed by Tencent, respectively, have seen strong user growth following their launch in 2015.

The experiences of Korea and China are successful examples of internet companies venturing into banking. There are many lessons to be learned from this. Firstly, incumbent banks should not be overly complacent with their existing customer base – the speed of customer acquisition could be much faster through digital channels than the traditional distribution channels. Secondly, internet giants have a clear edge in certain areas of banking, especially around payments and mobile money. Finally, there are opportunities to cross-sell and scale to other products.

Finovate: So there’s potential for a lot of change and upheaval then. What will the bank of the future be characterized by?

Ghose: Legacy banks often have data that is stuck in multiple silos supported by core banking technology that was literally built in the era of black and white television. Manual intervention is high, which slows down operating speed, reduces flexibility, increases costs, and ultimately degrades efficiency and experience. Creating an incumbent challenger sounds like an oxymoron, but as legacy banks recognize the threat that new entrants into banking are posing to revenue and customers, they need to reinvent themselves and reimagine banking. This involves legacy banks partnering with technology companies to create effective joint ventures as well as moving into more disruptive technology and business models to transform themselves into digital competitors. By creating their own Bank X, we believe some legacy banks can transform themselves from slow moving caterpillars to agile butterflies.

Finovate Webinar: Tech Giants in Payments and the Implications for Issuers

Tuesday, January 28, 2020  |   1:00 PM EST  |   Register now >>

Join us for this #FinovateWebinar, as Ondot gives an overview of what the Google Checking product is, how it compares to payment products from Apple, Facebook, and other tech giants, and what Google stands to gain.

We will be joined by Richard Crone from Crone Consulting, whose Apple Card insights have been featured in Bloomberg, Marketwatch, PaymentsSource, and The Financial Brand, to discuss what’s driving the opportunity from these tech giants and what is the opportunity or threat for banks and credit unions, as well as how financial institutions can respond.

Covered in the session:

  1. How is this different or the same from other tech company launches such as Apple Card?
  2. Why does Google see an opportunity and what’s in it for Google?
  3. Along with Apple Card and other tech giants, what are industry trends and consumer demands driving this change?
  4. What’s in it for banks and credit unions? Should financial institutions see this as an opportunity or a threat?

Featuring:

  • Richard K. Crone, CEO and Founder, Crone Consulting, LLC
  • Heidi Liebenguth, Managing Partner and Research Director, Crone Consulting, LLC
  • Vaduvur Bharghavan, CEO, Ondot Systems
  • Prasanna Narayan, VP of Product, Ondot Systems

Register now >>

Finovate Webinar: Accelerating the Speed to “Platform Ready” for Banks

In 2020, banks will spend about $2.3 billion on core modernization just to satisfy customers and keep fintechs at bay. In the age of apps and the platform economy, do you know how to ensure your bank is ready to compete?

Watch this on-demand webinar to explore:

  • The future of cloud-first strategies
  • The future of platform-as-a-service strategies
  • How banks can accomplish these and achieve transformation goals more cost effectively

Finovate eMagazine: Fraud Prevention, Cybersecurity and Regtech

We close out 2019 with a deep dive into fraud prevention, cybersecurity, and regtech, as well as unique insights from FinovateAsia and Middle East. This quarter’s eMagazine includes insights into the micro-trends set to emerge in 2020, and interviews with some of the Finovate Awards winners about their innovations.

Featuring

  • Tim Ayling, buguroo
  • Wendy Jephson, Nasdaq
  • Brett King, Moven 
  • Clara Durodie, Cognitive Finance Group
  • Jason Davies and Rebecca Engelber, Flybits
  • Chis McLaughlin, Nuxeo
  • Tim Nelms, Crawford Technologies
  • Matt Keil, Cequence 
  • Alissa Knight, Aite Group
  • Wai Lum Kwok, Abu Dhabi Global Market

Read now >>