ING December 2019

DREAM BIG, START SMALL

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DECEMBER 2019

DREAM BIG, START SMALL

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Paul Spronk, Head of ING Labs Singapore, explains how the bank is working closely with startups and partners to innovate for its clients in an ever-changing landscape

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NG Wholesale Banking has innovation labs in Amsterdam, London and Singapore.

Paul Spronk heads ING Labs Singapore,

having held this position since 2018. Prior to this, Spronk worked for fintech payments com04

pany Payconiq, which originated in ING’s Chief Innovation Office in Amsterdam – he later joined ING’s Wholesale Bank and helped to set up its global innovation team.

Today, from the city-state of Singapore, Spronk leads his team to drive innovation in the global trade ecosystem. His focus on different value spaces derives from where the bank traditionally has a strong footprint. For example, ING Labs Singapore is ideally located in a technologically advanced trading hub of Singapore, hence it is focused on the trade value space, covering the entire ecosystem of goods that are traded globally and the adjacent network of services and financial flows. This sector expertise and leverage on innovation enables ING to play a role in improving industry efficiency and addressing structural challenges.

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“ We are the ideal partner to help startups get off the ground: our wide industry knowledge, a large client base, deep industry knowledge, capital – all from a trusted global brand” — Paul Spronk, Head of ING Labs Singapore

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with open architecture and governance structures that enable the bank to create value-added products and services clients.

• The roll-out of PACE, INGs innovation methodology that combines a lean startup, and agile way of working with design thinking. It offers tools that enable the bank to develop relevant solutions to internal and external problems.

IMPROVING FORECASTING BEYOND A COIN FLIP With advances in new technologies

According to Spronk, the team has

such as AI and machine learning it has

a three-pillar strategy and works on:

become possible to do things that

• G reenfield ventures that create

were previously hard for the industry.

long-term impact for ING and its

For example, Spronk shares that the

clients. These ventures and ini-

Singapore lab has developed a software

tiatives can go beyond banking

venture called SoptAI, an AUTO-ML

business models in addressing client

powered demand and cash flow fore-

needs as the global trade ecosys-

casting system that optimises supply

tem evolves.

chain operations and financing.

• Venture partnerships with a clear

“Within the industry, the accuracy of

client-driven platform strategy in

forecasting can sometimes be as low

mind. ING invests in partnerships

as 50%, the same as flipping

with startup, scale-up and corporate

a coin,” he says, adding that “with SoptAI,

partners, with the aim of developing

early proof points show that we are able

multi-sided business ties and models

to improve the accuracy with double digit

DECEMBER 2019

CLICK TO WATCH : ‘ING ASIA CORPORATE VIDEO’ 07 figures on most of our client use cases,

contributor to Singapore’s economy.

saving the industry millions of dollars.

Within this sector, ING Labs Singapore

The system has a proprietary automated

is building a venture called Kapsool.

model selection engine that helps us to

“This is essentially a digital agency

build a scalable business.”

workflow platform in the marine port

SoptAI could potentially lower the

ecosystem. Its goal is to reach an

need for working capital, demonstrat-

efficiency level matched to that of air-

ing ING’s commitment to truly helping

ports,” says Spronk.

its clients to stay a step ahead, even

He explains how such greenfield

at the cost of traditional banking prod-

ventures begin development, with

ucts. For the bank, such ventures also

long-term impact in mind. “Now, before

generate new non-interest income

you start building, if you’re within our

revenues, which are particularly impor-

lab and building a venture, we encour-

tant in a low interest environment.

age people to start with a problem in

The shipping industry is a significant

mind; is this problem real? How big w w w.i ngw b . com

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CLICK TO WATCH : ‘SOPTAI’ 10

“ We are willing to disrupt ourselves from time to time all with the aim to help our clients be successful” — Paul Spronk, Head of ING Labs Singapore

is it for our clients and the industry if it can be solved? If there is enough room for impact we like to quickly build an iterate on a solution and we do that with trusted development shops and partners to help design and build the product. This is how we discovered Ming Labs.”

Ming Labs offers both design and software development services and has a strong sense of customercentricity across its teams. “The people over at Ming Labs are team players,” Spronk states. “If you walk into our office,

DECEMBER 2019

you’ll find at any given day about two

regulatory pressure and the need for

to five people from them working with

ever better Know Your Customer

us, and I think it would not have been

(KYC) processes, ING is moving to

possible to build Kapsool as quickly

meet this demand head-on by creat-

without them.” Spronk emphasises

ing a module called Blacksmith. “This

that, as a venture moves from ideation

will help the bank perform KYC more

to market-fit state, flexibility is para-

easily while still maintaining the qual-

mount when working with vendors and

ity of the due diligence,” says Spronk.

development partners. “Ming Labs was

To assist with the creation of a

aligned with this understanding and

minimum viable product, ING is col-

has been key to this venture,” he says.

laborating with long-time partner

Against a backdrop of mounting

Synechron, which Spronk confirms is 11

E XE CU T I VE PRO FI LE

Paul Spronk Paul Spronk heads the Asian innovation activities for ING Wholesale Banking out of Singapore and is responsible for origination, validation and scaling of INGs innovative ventures across ING Wholesale Banking’s network. Implementation of ING’s innovation method, PACE, in wholesale banking and developing external partnerships with fintech companies, industry partners and government agencies in the region are among the other activities under his supervision. He also acts as APAC liaison for all of ING’s innovation capabilities in other regions.

Paul has a background as an entrepreneur in digital retail services, has guided multiple innovation projects across various WB business lines and is a real technology enthusiast. He studied European law in Groningen and Budapest and holds an LLM in international & EU law from the University of Amsterdam.

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DECEMBER 2019

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“doing an excellent job”, as the bank

everyone within the organisation speak

works towards taking Blacksmith

the same language when talking about

to market.

innovation,” he explains.

INNOVATION: BUILDING THE NUTS AND BOLTS

HAND IN GLOVE: FINDING THE RIGHT PARTNER

At ING Labs Singapore, Spronk and his

Spronk shares the bank’s perspec-

team supports the roll-out of PACE,

tive when it comes to partnerships:

a proprietary innovation methodology

“ING understands that it cannot do

developed by the bank. “PACE com-

everything itself and so we are always

bines the attributes of a lean startup

looking for partners to assist us on

with agile working, design thinking

this journey, whether they are start-

and customer-centric innovation, all

ups, scale-ups, or corporate partners.”

neatly fitted into a framework to make

When asked what ING looks for in a w w w.i ngw b . com

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C O M PA N Y FACT S

How does ING innovate for its clients?

Spronk explains: “We identify a problem and then either build a venture ourselves that can become a new business unit, a standalone venture or a joint venture, or we look for partnerships with companies that have already found an interesting solution.

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In order to source the most interesting problem statements, ING hosts ideation sessions with clients, government agencies and employees alike. We ensure that the client is involved from the earliest stages so that the innovation is truly useful to them.�

DECEMBER 2019

partner, he shares his belief that ideal partnerships are strategic and not merely for financial return, noting that “we look for companies with the technological capabilities to help us and our clients to stay relevant in the future.’’

He cites Silicon Valley-based fintech startup, Flowcast, as an example of an ideal partner. The firm specialises in smart credit decisioning through its credit analysis capabilities and machine learning-based algorithms.

“Some of our larger wholesale clients can also benefit from these enhanced credit algorithms within their business and when these are optimised then the need for working capital, which is traditionally something that banks provide, is reduced. For us this is not a problem as we like to put the client’s interest above all and believe this will make them see us as a trusted partner for the future,” Spronk notes.

Flowcast’s CEO Ken So is optimistic about the impact of this venture, where the technology used will make credit available to the underserved. The firm’s platform also allows organisations to accurately use non-traditional data sources to predict risks. So adds: “We w w w.i ngw b . com

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“ We don’t want vendors to build partnerships just to solve our own problems, we want to build partnerships in order to combat industry issues and help solve some of the industry’s largest problems” 18

— Paul Spronk, Head of ING Labs Singapore

1991

Year founded

$19bn Revenue in US dollars

50,000+ Number of employees

believe that it won’t be long before every lending decision will be driven by AI in order for lenders to stay competi-

great potential that cross his radar are

tive. ING understands the impact that

referred to the appropriate regional lab.

AI will have on credit and reinvents

When working with startups, Spronk

its credit decision process. We look

and his team have much to offer.

forward to expanding our partnership

“Naturally it’s about providing mutual

with ING.”

value,” he explains. “We are an ideal

This is a perspective that Spronk

partner in assisting startups in get-

shares, noting that “we are also willing

ting off the ground thanks to our wide

to disrupt ourselves with the aim of

industry knowledge, a large client base,

helping our clients to be successful.”

deep industry knowledge and capital,

This isn’t limited to Spronk’s work in

all from a trusted global brand. These

Asia. He notes that businesses with

attributes are integral to startups

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looking to upscale, as having the

AI and ML landscapes,” he says. “The

backing of a larger company makes

readiness and availability of data

obtaining trust from clients and

increasing over the years is going to

capital easier for a startup.”

change a lot. We want to make our own contribution and help our clients

DREAM BIG AND START SMALL

with that transformation to ensure

As Spronk and his team look ahead, it

that we, as a bank, are still an impor-

is clear that they show no sign of break-

tant, innovative and relevant player

ing momentum. “The industry continues

in the future.”

to digitise as it has done for the last decade and more technology driven opportunities are opening in the DLT, w w w.i ngw b . com

ING L ABS 1 Wallich Street #12-01 Guoco Tower 078881 Singapore T +65 6535 36880 www.ingwb.com/network-offices/ asia-pacific/singapore