Finance Derivative Magazine Issue 2

CLOUD CONNECTIVITY: Completing the puzzle in the finance world

Eric Troyer

What does the Future of Finance hold?

Hans Tesselaar

From high -touch to no-touch: The changing face of banking Explainable AI (XAI): driving forward financial services

Alexei Markovits

BANKING IN A SECOND WAVE Campbell Shaw

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For all of us across the globe, 2020 has been a year like no other. The world has faced an unexpected loss. Now we can say we have successfully overcome the global loss due to the pandemic. With the New Year beginning we start afresh and we have covered the stories which shows us the how we will be driving in 2021 with the graph growing exponentially.

As the world moves towards the economic recovery, we are keen to discuss what does the future of finance hold. In this issue we also discuss the positive impacts on organisations or customers to prioritise in digital transformation initiatives, including the open banking.

The period ahead will challenge business leaders further to make rapid decisions. Whilst Technology continue to be enabler, trust, co-creation and a data-led approach will be the key ingredients towards successful transformation and a shift from protection to prevention.

Talking about Fintech, the needs of customers have changed as a result of Covid-19 – speed, simplicity and security when handling finances is now vital, and with fintech’s taking far too long to develop and launch new products that meet these demands, they are ultimately falling the end user.

I hope you will enjoy reading this edition of Finance Derivative.

Wishing you all success, health and happiness for 2021!

Enjoy the Read!

Mehtab Chisti Director

for recognition.

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www.financederivative.com

CONTENTS

Katharine Wooller

Banking in the Philippines

Content...

BANKING

Mandated E-Invoicing?’

TECHNOLOGY

30. From High-Touch To No-Touch: The Changing Face Of Banking

16. An Evolution In Data Management And Analytics Strategy

8. Explainable AI (XAI): Driving Forward Financial Services

34. It’s Time For Open Banking To Open Up 54. Banking In A Second Wave

FINANCE 6. The Role Of The Finance Professional In The Order-To-Cash Process 12. `How Can We Benefit From 4

16. What Is RPA, And What Can It Do For Finance?

32. What Does The Future Of Finance Hold?

60. Building Trust Into Your Audit Process 64. The Artificial Intelligence Opportunity In The Global Financial Services Sector

10. The Future Of Finance Lies In The Cloud 20. Cloud Connectivity: Completing The Puzzle In The Finance World 27. Assessing The Current Cybersecurity Landscape: CyberAttacks Targeting Banks 36. Driving Digital Transformation In 2020

Eric Troyer

46. Fintechs Aren’t Moving Fast Enough, And Its Failing The End User 48. Cloud Adoption – Is It Even A Choice Anymore?

58 The Key To Transforming Financial Institutions With AI

BUSINESS 38. The Silver Lining In Insurance Post-COVID-19: A New Business Model 42. 4 Steps To Help CFOs Define The New Normal

66. Multi-Banking Trade Finance Technology Will Transform Efficiency And Security For Treasuries

INVESTMENT 14. What Investors Are Looking For In The Next Fintech 22. Raising Standards In The Tax Advisor Market: A Cause For Concern 50. Property And Cryptocurrency - Ideal Bedfellows For Wealth Accumulation

COVID-19 62. Switching The Tax Evidence Base Means More Data Intelligence Than Ever

INSURANCE 24. Advancing The Hybrid Workforce In The Insurance Industry 40. The Next Generation Of Travel Insurance

LIST OF WINNERS

53. The Uptake Of Trading During 5

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FINANCE PROFESSIONAL -TO-CASH PROCESS 6

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As technology continues to evolve, organisations are finding ways to drive further efficiencies in their business models. In the case of finance departments, digital transformation is already making a discernible impact, with intelligent software tools and robotic innovations already partially or fully assisting with repetitive tasks. This is reflected in findings from Onguard’s 2020 FinTech Barometer, with 84% of finance professionals agreeing that digital transformation is high on their agenda.

process runs as smoothly as possible, and this is made available with the help of automated systems.

While these innovations may send warning signals to those who are concerned about robots replacing people in their jobs, the reality is actually quite different. The removal of these repetitive actions in fact allows finance professionals to devote their time to value adding tasks that they simply couldn’t make time for previously.

Robotic process automation (RPA) therefore has a key role to play in the future. With the Covid-19 pandemic creating greater workloads and uncertainty for finance professionals, any time they can gain back will prove to be crucial.

While data does have the capability of providing a level of background into a customer’s current situation, it is of course limited by its inability to factor in personal circumstances when looking at non-payment. It is of course crucial that outstanding invoices are paid in a business context, however it is important to identify the reasons for non-payment when considering long-term customer relationships. In these exceptional cases, it’s pivotal that human contact is made to ensure an understanding and empathetic approach towards the customer, and this is exactly the unique offering that a finance professional can bring to the table by taking on this responsibility.

Where humans can make the difference Ultimately, a company’s survival depends greatly on its level of returning customers who are satisfied with the service they receive. As businesses look to create a positive customer experience, this is more likely to happen when the order-to-cash

Due to the economic impact of Covid-19, an unfortunate consequence has meant more customers have been unable to pay their invoices because of cash flow problems.

It is therefore crucial for organisations to put the customer first and ensure that tailor-made solutions are delivered with the individual customer in mind.

With the finance professional taking this approach in a sensitive situation, the customer receives a positive experience, despite the difficult circumstances they may be in, and has the opportunity to control and resolve their payment problems. This in turn increases the chance of invoices being paid again in future, and the relationship can be maintained.

Freeing up time for the finance professional By enabling the automation of what used to be the day-to-day tasks of the finance professional, digital transformation is helping to free up time for professionals to apply their skills elsewhere in the business. For example, finance professionals are able to undertake an in-depth review of where any cash flow problems lie, or focus on strategic planning. Also, with the use of specialised order-to-cash and credit management solutions that are powered by artificial intelligence (AI), over time,

data acquires predictive value. Finance professionals can take advantage of this to interpret data in a better and faster way, putting them one step ahead.

With greater insights and predictive values, finance professionals can find it easier to make decisions with both the business’ and customers’ interests in mind. The end result is not only increased organisational efficiency, but also higher customer satisfaction and ultimately, retention and repeat business from customers.

People power While some may have feared that technological innovations would remove finance professionals from their jobs, it has in fact created new opportunities in this sector for employees. They can now devote their time to more value adding tasks, with the repetitive actions taken care of through automation. Not only this, but fewer mistakes are made in the cash-to-order process, thanks to the integration of innovative technologies such as automation and AI. Finance professionals can benefit from insights to help shape their future decisions and ultimately benefit their customers.

Despite the clear advantages of digital transformation in complementing the duties of the finance professional, customisation and a personal approach towards customers are needed, especially in the context of the Covid-19 pandemic. This human touch is something that technology can simply not provide. Through applying a personable approach, the finance professional can continue to make tangible difference in the cash-to-order process, both now and in the years to come.

Marieke Saeij CEO Onguard 7

TECHNOLOGY

Explainable AI (XAI): driving forward financial services Artificial intelligence (AI) is transforming the world we live in. Constantly evolving and advancing, AI systems are used to optimise investment portfolios, assess insurance claims, trade millions of financial instruments and assign credit scores.

However, to establish the trust needed to deploy these advancements to their full potential we need a framework to increase our understanding of how AI arrives at its findings and suggestions. This will shine a light of clarity on the processes behind AI. Many of today’s advanced machine learning algorithms that power AI systems are inspired by the processes of the human brain, but are constrained by their lack of human ability to explain 8

actions or reasoning.

Because of this gap, an entire research field is now working towards describing the rationale behind AI decision-making.

This is known as Explainable AI (XAI).

While modern AI systems demonstrate performance and capabilities far beyond previous technologies, practicality and legal compliance can inhibit successful implementation.

XAI will be a key deciding factor for organisations looking to utilise AI effectively due to its ability to help foster innovation, enable compliance with regulations, optimise model performance, and enhance competitive advantage.

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What is explainable AI’s value in financial services?

In financial services, the techniques of explainability are becoming especially valuable. When it comes to financial data, many service providers and consultants may already be aware of the low signal-to-noise ratio that is typical of this data, which in turn demands a strong feedback loop between user and machine.

AI solutions that are designed without human feedback capabilities run the risk of never being adopted due to the persistence of traditional approaches that rely on domain expertise and experience from years gone by.

AI-powered products that are not auditable will simply struggle to enter the market as they’ll face regulation issues.

Using XAI to reduce risk Assigning or denying credit to an applicant is a consequential decision that is highly regulated to ensure fairness. The success of AI applications in this field depends on the ability to provide a detailed explanation of final recommendations.

Beyond compliance, the value of XAI is seen for the client and financial institution in different ways. Clients can receive explanations that give them the information they need to improve their credit profile, while service providers can better understand predicted client churn and adapt their services.

Through use of XAI, credit-scoring can also help with reducing risk. For example, an XAI model might provide an explanation of why a pool of assets has the best distribution to minimise the risk of a covered bond.

A synergy between AI and domain expertise Financial services have been increasingly embracing time series forecasting methods as useful tools for predicting asset returns, econometric data, market volatility and bid-ask spreads. However, they are limited by their dependence on historical values. As they can lack disparate, meaningful information of the day, it is extremely challenging to use time series to predict the most likely value of a stock or market volatility.

By complementing such models with explainability methods, users can understand the key signals the model uses in its prediction, and interpret the output based on their own complementary view of the market.

This then enables a real synergy between finance specialists’ domain expertise and the big data-crunching abilities of modern AI. Explainability techniques also enable human-in-the-loop AI solutions for portfolio selection. An investor might find that they choose not to pick the suggested portfolio with the highest reward if the level of risk appears too great. On the other hand, a system that provides a detailed explanation of the risks, such as how they could be uncorrelated with the market, is a powerful addition to investment planning tools.

Powering human-AI collaboration It is now essential to recognise the importance of prioritising explainability to power human-AI collaboration and to satisfy audit, regulatory and adoption requirements. This is because AI solutions are now evolving beyond proof-of-concept to deployment at scale. AI systems are becoming more capable and finding their way to new industries and applications.

These enhanced capabilities mean more complexity, and that makes these systems more difficult to understand. Taking a user-centric approach along with the imperative for transparency across AI systems together reinforce the need for explainability to be a part of that cycle. All the way from the initial process of building a solution, right to the system integration and use.

Alexei Markovits, AI Team Manager, Element AI

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The Future of Finance Lies in the Cloud At the beginning of 2020, 87% of public sector organisations surveyed by UKCloud expressed a desire to move traditional IT environments into the cloud. But, as a result of the Covid-19 pandemic, the rate of cloud adoption in the UK has grown significantly, as many companies not already in the cloud were compelled to make the switch due to enforced remote work.

This is certainly indicative of many other industries, finance included. Pre-lockdown, the majority of finance and accounting teams still relied on on-premises software, but the move to remote-working meant many organisations had to quickly reconsider their technology needs and move some or all of their IT requirements to cloud-based platforms.

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But, in a recent survey by GrowCFO – an independent portal for finance leaders to network, learn and collaborate – it was found that there is confusion around what actually equates to a true cloud finance platform. This was apparent given some respondents replied with ‘cloud’ to known on-premises solutions, suggesting the difference between cloud-based and ‘onpremises with remote access’ is not fully understood.

This is an important point because it has the potential to influence the technology choices made by organisations across the sector. In short, traditional on-premises financial software resides on IT systems owned by the user organisation, typically on hardware hosted within their building.

After purchasing and installing the software,

they maintain, secure, and manage it themselves (or with the help of a specialist third party IT support business). Many of these systems also offer the option of connecting remotely, with users accessing software and data via a connection to their office-based network.

Conversely, cloud software is almost entirely outsourced and delivered via a web browser or app as a service to each user, hence the description ‘Software-as-aService’ (SaaS). The software resides with the service provider who is also responsible for reliability, performance, the availability of enhancements and updates, as well as the security of their service or application. The location of the user is largely irrelevant - as long as they have a good, secure internet connection, a suitable laptop or tablet and

TECHNOLOGY

a browser, they can access the service in exactly the same way as if they were in the office.

One of the most immediate changes organisations notice when moving from on-premises technology to the cloud is it removes the need for in-house IT personnel or external specialists to manage and maintain the technology. For many smaller organisations, it liberates the individual who has been given the task of ‘looking after’ the on-premises tech, even though it usually isn’t their specialism or even in their job description.

But that’s just the start. The massive success of the cloud-based, ‘-as-a-Service’ technology industry is predicated on a range of key developments over traditional on-premises, or ‘legacy’ software.

A Formula for Finance Often of particular interest to finance and accounting professionals are pricing and payment terms that accompany today’s cloud SaaS options. Cloud-based software typically offers the convenience of a monthly pay-as-you-go model, instead of

investing significant up front sums in oneoff software purchases. This also saves money on the server hardware that has previously sat in the office, which may no longer be needed at all. Also included in cloud pricing arrangements should be details which clearly set out the type of service and support included in the cost.

Done well, cloud-based customer support and service can deliver an exceptional experience where the provider effectively works as an extension of their in-house team.

The best cloud software providers place huge emphasis on security, focusing on data protection, backup services and their ability to deal with common security issues, such as ransomware. This also extends to compliance, and in the finance context, specialised compliance capabilities offered by many cloud software providers can be of particular benefit. Even for the most niche requirements, there is often a software provider out there whose technology has been written to meet compliance rules, often saving users considerable time and effort.

And then there’s the key issue of functionality and performance. Today’s cloud-based finance software market offers a wide range of options from simple entry-level tools to powerful applications designed

to meet the needs of even the biggest and most complex finance departments.

For organisations considering cloud, it’s important to assess the options available and choose a provider that most closely matches their individual needs.

For many finance and accounting organisations and their teams, the requirements of lockdown and transition to home working were made possible by cloud-based software solutions. In doing so, they have gained valuable insight into the range of services available, their potential benefits and how technology can become much more than just a labour-saving tool, but also a means to enhance their all round business capabilities.

Chris Tredwell, Enterprise BDM, Aqilla.

Source: 1 https://ukcloud.com/hub/the-state-of-cloud-adoption-report/ 2 https://www.growcfo.net/

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started issuing invoices electronically using the country’s online exchange system. The decision in Italy, like many others, was again driven by tax efficiency.

While these mandated government decisions can help achieve this, experts say the benefits of e-invoicing actually go well beyond this and it is time the arguments for mandating e-invoicing include the benefits for small, medium and global businesses too. The EU has been clear: mandated e-invoicing has the potential to not only save government processing costs, but also provide the stimulus for private sector adoption that can drive the environmental, cost, and efficiency benefits.

How can we benefit from mandated e-invoicing?

Electronic invoicing is at a tipping point.

On the one hand, only a small minority of invoices that are sent globally are e-invoices.

It is estimated that 75% of the world invoices are still transacted on paper, and those that rely on email instead experience similar inefficiencies. On the other, a recent trend of B2G mandates from governments around the world could potentially serve as a catalyst for a new wave of public and private sector e-invoicing adoption.

In India this week, for example, the Central Board of Indirect Taxes and Customs has regulated that e-invoicing will be mandatorily adopted by all companies with a turnover exceeding INR 500 crore. The decision follows many countries in Latin America, most notably Brazil and Mexico, where electronic invoices have been mandated as the only acceptable standard for all significant public and private commercial transactions.

In Latin America, these systems are largely being used as a tool to improve the government’s fiscal control and recapture lost tax revenue from economies with high rates of cash transactions. Brazil, Chile and Mexico have all adopted a ‘clearance model,’ where before invoices are sent, they are cleared by a government portal.

Documents are therefore tax-compliant in real-time, reducing delays and fines, while significantly reducing tax leakage. India’s model is broadly similar to this, and the EU is also looking towards adopting a similar clearance model.

In 2019, all VAT-registered businesses in Italy 12

For businesses, the potential benefits are huge. Companies on average able to save between 50-70% of processing costs and 65% of invoice processing time. E-invoicing reduces errors, fraud and human intervention.

A Wax Digital study found about 25% of time handling paper invoices is spent on resolving problems related to data entry and processing. As there are roughly 16 billion B2B invoices processed each year in Europe alone, Deutsche Bank projected that full adoption could lead to an annual saving of at least €260 billion. Organisations already using e-invoicing have been motivated to do so because of this huge cost efficiency aspect.

In the most recent Spring Statement, the Chancellor of the Exchequer described late payments as a ‘scourge’ and according to Siemens Financial Services, SMEs in the UK are missing out on over £250bn of working capital cash flow due to late payments.

Xero found that businesses which use online tools get paid 33% faster than those which use paper invoices. Faster approval cycles result in better cash flow, which can be passed down the supply chain in cost and time savings. Finally, a mandated move from paper to paperless could have a huge impact on the global carbon footprint.

In addition to the impact that the reduction of late payments can have on the working capital of businesses globally, e-invoicing can provide a more efficient avenue for the funding of invoices. Invoice financing is not new, but the level of transparency and depth of data accessible via modern e-invoicing platforms enable direct access for financiers to provide faster, efficient, derisked, and innovative funding solutions in relation to the financing of such invoices.

There is a growing belief that this will have a fundamental, evolutionary impact on the invoice financing space.

Public sector mandated e-invoicing therefore can be expected to drive private sector e-invoicing adoption and provide the gateway for the digitisation of many business processes. The blueprint for adoption was Denmark’s pioneering 2005 legislation that allowed vendors to submit invoices online, free of charge, using a SaaS service. The Danish were focused on the economic benefits of e-invoicing and decided the best way to influence behaviour would be to keep the barriers to entry as low as possible. By offering a free and open service, Denmark was able to voluntarily achieve the long-term commercial adoption of B2B e-invoicing in the private sector after mandating public sector B2G e-invoicing.

With the emergence of Covid-19, global governments will be more focused than ever on cost efficiencies and the need to guarantee tax revenues. Mandating e-invoicing, however, can also have huge knock-on benefits for the wider B2B business market. With a higher adoption rate across the private sector, mandating e-invoicing will provide huge cost and efficiency savings for businesses at a time when public and private finances are under significant pressure.

Mark Stephens CEO Blackstar Capital

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INVESTMENT

What INVESTORS are Looking for

Are investors getting pickier when it comes to fintech? It’s hard to say for sure, but there are recent developments that point towards a shift in investor interests.

Firstly, research from Innovate Finance shows that investment in UK fintech dropped by 39% in the first half of 2020, compared to the same period in 2019. In H1 2020, $1.8bn of venture capital was invested in 167 startups compared to H1 2019, when $3bn was invested in 263 startups.

However, it’s worth mentioning that the $1.8bn UK fintech investment earlier this year was still a 22% increase over the second half of 2019, when funding totalled $1.5bn.

Therefore, all signs suggest that investors will make significant increases in capital investments during the rest of the year.

Secondly, it appears that the current investor appetite is for more mature, later-stage fintechs: more than half of the $1.8bn went

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in the NEXT

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to just five companies: Revolut, Checkout. com, Starling Bank, Onfido and Thought Machine. Perhaps it is the ongoing economic uncertainty surrounding the COVID-19 crisis that is prompting inventors towards perceived “safer bets”, but what we do know for a fact is that early-stage fintechs raised just 8% of the total investments.

1. A strong, differentiated proposition

Is there a silver lining? The coronavirus crisis has rapidly accelerated the digitisation of financial services, with lockdown restrictions encouraging those previously resistant to engage with digital financial services. The stage is set for fintechs to thrive and deliver offerings that meet shifting consumer demands. To be in with a shot of wooing investors, fintechs will need to demonstrate certain qualities that set them apart from other companies.

So, what are the four things investors are looking for in the next big fintech?

The fintech marketplace is crowded and filled with mature innovators setting a high standard for everyone else. Against this backdrop, “challenging the incumbents” is, unfortunately, no longer a USP. To really catch the attention of investors, you must be addressing a clear, pressing market need that no one else is tackling.

Not just that, your proposition must be easily articulated and backed to the hilt with market research that proves the opportunity is worth pursuing.

Ultimately, investors are going to ask the question: why you? What are you doing that’s unique? What do you have that means you – and only you - can do this? They will also want to know how defendable that proposition is once you’ve built it. What is your moat? Getting this right means a foot in the door with investors.

INVESTMENT

2.A path to profitability or exit

3. Strong leadership and core team

This is an extremely pertinent point, especially given recent news surrounding the financial results for many of the big challenger banks, and how they show the route to profitability for challengers isn’t necessarily straightforward or easy.

Ultimately, securing investment is about building relationships and what often tips the scales is having the right people in the room. This is why a great team is crucial.

In the current environment, an attractive fintech must be able to demonstrate a concrete, long-term plan for the financial viability of the business. There are different paths for investors to make their returns, be it a trade sale or IPO, but the fundamentals of securing a successful outcome are usually the same. By being able to demonstrate how you can plot a course to attract and serve your customers for less than you can monetise them will be at the route of any subsequent valuation, no matter how its outcome is achieved.

Whatever the goal, you need a plan to support your ambitions. You need to demonstrate an understanding that building a scalable and sustainable fintech is likely to require significant capital – you must invest in the right people, partners and technology to make money. Developing competitive services, attracting customers and, crucially, monetising your offerings, requires hard work and the ability to adapt to your customer’s needs.

A great team means many things: Strong leadership with the vision to build something revolutionary. The skills and expertise to turn that vision into reality. The experience to traverse the pitfalls and opportunities you’ll face. And finally, the ambition and determination to make the business successful no matter what.

Building the right team with the right qualities is often what convinces investors that they’re putting their money in the right place.

4. The right partnerships Partnering with the right organisations can give you strategic access to the solutions that will help build and scale your offering.

Their expertise and experience are often invaluable; many partners have been in the game for years and may have already solved problems you might be encountering for the first time.

From an investor’s perspective, seeing that you’re working with credible partners and proven tech helps build confidence. It

shows that you’re a less risky investment, and that you respect their investment and are going to be using their money to build real value.

Fintech investment is not dead After this recent blip, we expect the amount of investment into fintech to continue to be significant, at least in relation to other industries. But there’s no avoiding the fact that investors will be looking to stress test potential investments much more than before.

By creating a differentiated proposition, planning a clear route to profitability, building a strong team, and finding the right partners, fintechs will be in with a shot of securing the funding they need to make their grand vision a reality.

Shaun Puckrin, Chief Product Officer, Global Processing Services Source: 1 https://www.innovatefinance.com/news/uk-fintechinvestment-slows-but-cautious-optimism-ahead/

2 https://sifted.eu/articles/a-comparison-of-uk-top-threedigital-banks/

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An evolution in data management and analytics strategy Financial institutions are changing the way they approach data management and analytics; two disciplines which have long been viewed as largely separate.

This detachment created problems for many financial institutions, increasing time to insight and acting as a brake on the decision-making processes that drive business success.

The data management process typically involves activities such as data sourcing, cross-referencing and ironing out any discrepancies via reconciliations and data cleansing processes. In contrast, data analytics processes are typically carried out afterwards in a variety of desk-level tools and libraries, close to the users and typically operating on separately stored subsets of data.

Data was typically held in siloed data stores and legacy systems, where accessing it was difficult. The metadata surrounding

the data was often updated infrequently, make complicating data lineage and understanding of the relevant permissions.

Judging whether data was fit for purpose was complex and frequently models came to suboptimal results because they were based on stale, incomplete or otherwise inappropriate data.

The role of analytics has become much more pervasive and is now ingrained in everyday business processes. Additionally, the bar has been raised regarding managing model risk and tracking data flows. Many financial services firms have come to realise that they need a better way to provision their data scientists with clean market data.

A shift to the cloud and the adoption of cloud native technologies is helping firms transition to a more integrated approach to data management and analytics. At least in part as a result of this, we are seeing data management and analytics increasingly

joined at the hip.

We still see quantitative analysts (quants) at the end points of data flows, carrying out modelling, forecasting and pricing of complex products. But in addition, any recurring business process in risk assessment, pricing, research, risk analysis and reporting has become more data intensive.

The new focus is on bringing analytics to the data rather than vice versa. In other words, it is about moving the analytics capability to where the data resides rather than moving large stores of often siloed data over to the analytics function. This typically led to inconsistent copies over time and lots of analyst time spent verifying and gathering data before the actual analysis could start Turbo-charging analytics with quality data For analytics to work effectively and efficiently, however, the data that fuels it has to be of

What is RPA,and what can it do for finance?

Rory Gray, Vice President of Sales at leading software automation firm, UiPath, explains how Robotic Process Automation (RPA) can be the key to improving efficiency of finance departments during and long after the pandemic.

Pre-coronavirus, finance departments were already feeling the pressure. Now, the burden of business health is becoming ever more heavy. Finance professionals are expected to move more quickly, increase efficiency and improve customer service, all while working remotely.

Unfortunately, fragmented finance systems are holding departments back. With legacy systems and long-winded manual processes clogging up the finance department, it is no surprise that employees are stretched to find time to overcome these new pressures.

Let me add an example. Finance professionals will likely agree that up to a third 16

of their day is taken up with gathering and modelling financial data in order to analyse its content and offer advice to businesses, clients and employers. If they can cut down on the time it takes to gather and model this data, there would be more time to focus on the tasks that really count during the current crisis – offering advice and analysis.

This will not only help businesses to thrive during the pandemic, but will also provide finance professionals with greater job satisfaction as they are freed from mundane and repetitive tasks. A rare win-win in 2020’s business landscape.

RPA is the key to finding more time in the day Robotic Process Automation or RPA, is software that can work just like a human.

It can read and interpret data from both physical and digital documents. It can

extract the necessary information and it can transfer this to multiple IT applications.

It’s a software robot – or digital assistant.

Software robots can take charge of gathering and modelling data, allowing professionals to spend less time copying and pasting and more time making sense of strategic data and following up with decisions that really count during the pandemic.

For example, for many organisations processing invoices is a long and mundane operation. It often involves a member or members of the finance team receiving the invoice by mail or email, approving it manually, printing, signing and submitting it to Accounts Payable. An AP Clerk then has to pick it up, read it, verify the approvals, extract the data and input it into to the accounting package. This all takes time and costs money. What’s more, it’s dull and prone to errors. People don’t want to spend their days doing it.

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the highest quality. Good quality input data makes analytics more reliable. Conversely, even the best model will produce useless results when fed with poor quality data.

This drive towards efficiency and accuracy as businesses look to turbo-charge their analytics function is one reason why data quality is critical. The other reason is that regulators are increasingly scrutinising data quality, and in particular the quality of data that feeds into models.

Financial services businesses will often need to explain the results, using not only the mathematics of the model itself but also the data that went into it, what the quality issues were, what the sources were and who touched it on the way. That can be difficult if they treat data management and analytics as separate disciplines. Without having the ability to analyse the data and the oversight of where it has come from and is going to, businesses struggle to gain transparency over how they are provisioning their models with data.

However, it does not have to be this way. A leading smart infrastructure solutions firm we work with, for example, has created a software robot affectionately named Archie, which has taken over the responsibility for processing all invoices.

Pre-Covid, the 400,000 invoices received by the firm each year were dealt with manually.

With Archie now working around the clock without fatigue to process all invoices, the finance department simply has to open up their laptops in the morning and find their invoices processed. Archie will flag any exceptions that need a human touch or a loop in the workflow where a decision is needed to a human employee. This means Archie does the legwork but the employee remains ultimately in control.

With Archie, invoice processing is now fully automated, freeing up on average 11 minutes per invoice of time which employees can now use to focus on value-adding activities.

This is not just one futuristic example. In

Adopting a better approach While regulatory reporting has long been an essential discipline for financial organisations, and while the coming together of data and analytics supports that, it is far from the only benefit that this new trend delivers.

As the cycle of managing and processing data extends further to take in analytics, users increasingly want to be empowered by the process and leverage these new capabilities to drive better informed decision-making. This move to data-as-aservice (“DaaS”), when combined with the latest analytics capabilities, is making this happen for financial organisations today.

By adopting this approach, they can gain access to multiple data sources and also multiple data types, from pricing and reference data to curves and benchmark data, ESG and alternative data. With the help of the latest open source technology like Python, users can share these analytics across their entire data supply chain and thanks to the

fact, Archie and other robots like ‘him’ are becoming increasingly common. They are automating tasks including invoicing, but also but also purchase orders, expense statements and many more.

Time is just one advantage of RPA While freeing up time using RPA has huge potential benefits to both the business and the employee, it is not the only driving factor in adopting software robots into a finance team.

Automating invoice processing, for example, means that no employee needs to come into the office to process the invoice, nor does any paper need to be passed around the team. Thus helping to keep the workforce safe.

Furthermore, software robots also free data intensive tasks from human error.

However accurate we aim to be, the reality is that processing data is always open to mistakes. Software robotsare programmed

power of the analytics engine, develop a common approach to risk management; performance management and compliance.

A new world of opportunity Today’s financial institutions are moving ahead at breakneck speed, with technology, process, macro-economic factors and business awareness all joining forces to bring analytics and data together to give rise to a new age in financial data management.

The upshot for financial institutions is a new world of opportunity where they optimise costs, drive user enablement and maximise the value they get from data.

Martijn Groot, VP Strategy Alveo

by finance professionals to strictly follow the same steps every time and thus do not fall victim to the same blunders as all humans inevitably do. This in turn provides better risk management and compliance, higher accuracy, better cycle times and improved throughput.

For finance professionals, RPA holds the key to freeing up their time and improving efficiency in their department and the business as a whole, while reducing human errors to almost zero. What might seem like futuristic concept is actually becoming ever more common and achievable with RPA.

Rory Gray, Vice President of Sales, UiPath 17

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ASSET MANAGEMENT www.cicapital.com

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TECHNOLOGY

CLOUD CONNECTIVITY: Completing the puzzle in the finance w rld From consumers moving towards online services, to new technologies such as artificial intelligence and machine learning entering the finance space, the current priority for the finance industry is to adapt to the changing environment around them.

To help the industry pivot, cloud adoption is playing an increasingly bigger role in this picture. While many financial organisations have long understood the benefits of cloud usage adoption has significantly accelerated in the past year, and looks set to continue to surge. Research from Ovum and ACI Worldwide, showed that 84% of FinTechs, 82% of corporate banks, 74% of retail banks and 79% of intermediaries plan to move mission-critical workloads into the cloud by the end of 2020.

Embracing the cloud enables organisations to speed up processing, eliminate data silos, boost collaboration, in addition to bringing out deeper insights and reduce infrastructure and operating costs. But to achieve this, organisations must think about what foundations need to be in place to support their cloud strategy goals.

Every cloud journey needs a connectivity strategy The global professional services firm EY argues, “The benefits of cloud technology can’t be contested. It’s less expensive, easier to use, and in many ways, safer

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than private data centres. In addition to its benefits, cloud technology helps solve some of the most pressing concerns of financial institutions.” It goes without saying that the cloud is going to play a vital role in how the finance sector develops for years to come. However, that comes with pressure to get it right now.

For example, a stockbroker may use data to influence their decisions to purchase or sell, but they need to have access to this information quickly, then marry it with intelligence on their customer (their appetite for risk, etc.), and then be able to seamlessly make the purchase or sale.

Having access to the data and partners that solves just one part of this equation isn’t helpful; it all has to be linked up.

This all requires speed, but, more importantly, it relies on a tightknit ecosystem for its success. Therefore, high performing cloud connectivity must be at the heart of any cloud strategy for finance organisations, so that they can tie these ecosystems together and move data quickly and securely.

Despite this being a critical ingredient to success, many businesses have focused on what cloud service provider they will use or what application they want to run without considering how they will actually connect it all together.

While many CTOs focus on their cloud strategy, what really needs to be refined is their connectivity strategy.

On-demand cloud connectivity When it comes to networks and connectivity, many finance organisations would have traditionally utilised a Multiprotocol Label Switching (MPLS) network. However, when private MPLS networks were first deployed, accessing cloud providers may not have been top of mind. Today, this is a critical factor in the deployment.

To support the enterprise costs of deploying a large-scale MPLS network, an organisation most likely entered into a long-term contract, not necessarily planning for how cloud could affect that decision in the future and the challenges of being locked into their existing topology. Adding multiple clouds and managing connectivity on an existing MPLS platform is typically slow, costly, and complex. This is the last thing financial organisations want when trying to boost speed and flexibility.

This is where Software Defined Networks (SDN) and virtual routing services come into their own. They can solve the cloud connectivity problem without requiring financial organisations to rip and replace MPLS networks and manage the expense that comes with that.

TECHNOLOGY

Working with an SDN to connect to the cloud helps reduce complexity of IT infrastructure and costs. More importantly, for financial services, SDN can reduce downtime as it helps to virtualise most of the physical networking devices, making it easy to perform an upgrade for one piece rather than needing to do it for several devices.

Virtual routing services, meanwhile, are a great option to solve the complexities and costs that come with connecting an MPLS network to the public cloud. Essentially, it is a way of easily and virtually routing an existing MPLS network to the cloud via an SDN. Another major consideration for IT leaders is whether their organisation can quickly adapt to peaks and troughs in demand.

Increasing bandwidth when needed can be critical to quickly adapting to changes in

the stock market, for example. Therefore, financial organisations should ensure that connectivity to the cloud is elastic — allowing bandwidth to be turned up or down in an instant. This flexibility ensures that core business operations don’t fall down if there are peaks in demand and, equally as important, IT leaders are not paying for unused bandwidth that they don’t need.

Blueprints for a cloud-driven strategy As more financial organisations turn to cloud technology, the priority for CTOs now is to make sure they have the foundations ready for this move. They must ensure they can easily get to the cloud and can connect to the mission-critical applications and services that they rely on for success. Rather than asking what innovation the cloud can bring, CTOs should question how they can make

the most out of it. What they’ll realise is that connectivity will form a central part of a cloud-driven strategy and completes the puzzle in their transformation processes.

Eric Troyer, CMO, Megaport Source: 1 https://www2.deloitte.com/global/en/pages/financial-

services/articles/bank-2030-financial-services-cloud.html

2 https://www.aciworldwide.com/news-and-events/press-

releases/2019/september/banks-and-fintechs-are-globalleaders-in-payments-innovation-study-by-aci-worldwide-andovum-reveals 3 https://www.ey.com/en_gl/innovation-financial-services/ cloud

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INVESTMENT

Raising standards in the tax advisor market

:A CAUSE FOR CONCERN

On 12th November, the Government announced that it intended to consult on making professional indemnity insurance (PII) compulsory for tax advisers, as part of a bid to protect consumers and raise standards in the tax advice industry. However, whilst the intention is clearly to improve the industry, it is important to consider that the knock-on effects from this decision may well do more harm than good.

tax advice, as well as for their clients, the Government appears to be considering using the insurance market as an addition to its armoury in the fight against tax avoidance and the dark arts of ‘bad’ tax advisers.

Currently about 70% of tax advice is given by professionals who are members of professional bodies and are required by these bodies, to take out PII. The Government’s focus, however, is on the 30% of tax advisers who are not presently affiliated to a professional body and therefore are not required to carry PII. As part of its consultation, it is also considering giving HMRC additional powers to act against entities or individuals that aggressively promote tax avoidance schemes. Part of their potential powers will include the ability to shut down promoters and to restrict individuals from setting up phoenix companies.

For insurers interested in providing this type of PII, identifying tax advisers may not be straightforward. The Government does not intend to include mere providers of tax services, such as payroll administrators and bookkeepers in its plans, however it could capture these organisations by mistake.

Even when considering active providers of tax advice, the Government may need to create an exception to avoid catching organisations such as small charities, which often provide free tax advice to potential donors and bodies providing tax advice to those on low incomes.

The immediate concern for insurers is that once again, the Government is seeking to use PII as a way to regulate a type of business and protect the public, ignoring its prima facie purpose of protecting the insured businesses themselves.

Whilst PII provides an important safety net for professional businesses offering 22

So, what are the potential negative implications of this?

1.Identifying tax advisers is not straightforward

2.Forcing insurers into a regulatory role may also stifle creativity Few insurers today would voluntarily choose to underwrite firms advising individuals on the tax benefits of film finance schemes, yet many successful films were funded in this way, including Atonement, Avatar and Life of Pi. In light of this, it may be difficult

INVESTMENT

to determine if a tax arrangement is “highly artificial” or “highly contrived” until after the event, and, of course, much tax advice seeks to exploit the complexity of UK tax legislation as well as legislative shortcomings. Therefore, insurers are likely to apply standards conservatively and there is a risk that some legitimate businesses may be unable to find cost-effective cover.

3.Risk of rejection from the insurance industry In a hardening market, there is also a risk that the insurance industry will reject the quasi-regulatory role that the Government is seeking to force upon it, by indicating that it is simply unwilling to cover the types of activity that the Government would like to see covered. While this would drive many incompetent and unprofessional advisers out of the market, a form of Kitemark involving minimum standards of education and continuing professional development could potentially achieve the same outcome at a lower cost to consumers.

4.Unofficial activity may increase Given the economic conditions we are facing, particularly in light of a recession, the lure of increased short-term cash flow offered by some tax planning arrangements may prove too tempting for some businesses and individuals.

The result of this could be an increase in businesses and individuals falling into the trap of paying for tax advice that is both bad and without insurance.

Whilst the Government is clearly trying to regulate the market and protect consumers, instead of using PII as a way to regulate a type of business, they should be strengthening the powers of regulators to manage both entities and individuals. In doing so, this would remove the risks outlined above whilst also protecting consumers, tax advisors and insurers themselves.

Harriet Quiney, Partner in Professional Indemnity at DWF

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INSURANCE

ADVANCING THE HYBRID WORKFORCE IN THE INSURANCE INDUSTRY AI is said to be redefining how customers interact with insurance providers, and according to research, this rings true. As far back as 2017, 80% of insurers in the UK and Ireland anticipated making moderate or extensive investments in deep learning, embedded AI solutions and machine learning over the next three years.

While the UK has a way to go in catching up with the US and China when it comes to AI investment in insurance, it’s clear this is an area we can expect to grow rapidly. We know that excellent customer service lies at the heart of good insurance services, it’s not surprising companies wants to invest in new technologies that drive innovation for both customers and employees’ experiences.

Today, amidst unprecedented and sudden challenges that have upended industries relying heavily on insurance, it is perhaps unsurprising that many are already looking to AI-powered digital employees and investing in cognitive solutions to upgrade and scale customer-facing processes.

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At the same time, given the nature of the insurance industry, licenced agents play a critical role in being able to legally perform certain functions – calling for a more blended AI-human solution, or a hybrid workforce. So, where can AI be implemented to transform processes and improve operational efficiency and customer service within insurance firms, and how does this affect how licenced experts employed in the insurance sector operate?

Streamlining the customer journey Insurance firms want to make the customer experience of their contact centres as seamless as possible. So, many have chosen to integrate AI at the beginning of the customer journey to help authenticate users and identify the intent of enquiries.

For example, a digital employee can confirm the routine information, such as asking “What is your name and policy number?” or “In a few words, describe what we can help you with today?” and get the customer in front of the right agent from the outset.

This again allows human agents to avoid repetitive, information-gathering tasks, in turn improving the customer experience, saving them huge amounts of time, and helping better manage incoming calls routing.

Empowering your staff to take on more advanced roles Digital employees, such as Amelia, whose programming can be personalised to match the specific company she works with, use Natural Language Processing (NLP) to automate common customer requirements at scale, while securing backend integrations with an organisation’s specific data management systems. For example, a customer can get immediate answers to questions like, “When is my monthly premium due?” or “How much would it be to add my daughter onto my auto insurance policy?” and leave expert human agents to handle individualised customer needs.

INSURANCE

By automating straight forward enquiries, insurers can improve customer satisfaction rates by empowering them to get answers more quickly and efficiently. In turn, employees can instead focus their time on higher-level interactions that are both more rewarding for the employee and beneficial for the business, such as building rapport or handling sensitive enquiries.

Augmenting experience for customers and employees 4 As well as automating simple tasks, digital employees can also support in augmenting the work of human agents by acting as a ‘whisper agent’. Digital employees can work directly with customer agents by discreetly sharing instant, relevant information with them – hence the term, ‘whisper agent’.

This is key for ensuring all customer calls are personalised to reflect the customer’s previous experiences, compliant with the industry’s significant regulatory requirements, and in line with company protocols.

Having the relevant information to hand in turn makes the call more seamless for the customer, as employees do not have to spend time searching through databases, policy guidance or FAQ documents.

In this capacity, digital employees can

significantly enhance employee satisfaction. By providing staff with instantaneous, on-demand information, human agents can feel safe in the knowledge that they are not only working quickly and efficiently, but that their customer engagements are compliant.

McKinsey predicts that future insurance claims will be massively aided by AI when it comes to filing and processing claims.

However, humans will still be required in providing emotional support to customers and high-impact, case-by-case expertise that cannot be as easily replicated.

changes and improvements to customer service across nearly all industries - and insurance is no exception. As more and more organisations get onboard with the notion of a Hybrid Workforce, there will be widening divide between the AI-haves and the AI-have-nots.

But it is not just about being ahead of the competition – it is also about being able to scale quickly and flexibly in order to cope with our fluctuating circumstances. Today, more than ever, it is vital that insurers can manage spikes in customer enquiries.

The future of insurance is in the Hybrid Workforce According to Deloitte estimates, more than 85% of customer interactions are predicted to be managed without a human by the end of this year. The role of insurance agents is changing dramatically, and with it, so are customer expectations. We will see an increasing number of firms adopting a Hybrid Workforce model, in a bid to speed up processes and enhance the customer experience.

It will no longer be feasible for organisations to expect customers to wait in long phone queues to get the answer to a simple claim query. AI is causing significant

Stephen Harcup, Cognitive AI Director for Banking, Western Europe at Amelia, an IPsoft company Source: 1 https://financialservices.accenture.com/rs/368-RMC-681/ images/ai-for-insurance-pov.pdf

2 https://www.ipsoft.com/amelia/ 3 https://www.mckinsey.com/~/media/McKinsey/Featured

Insights/The Next Normal/The-Next-Normal-The-future-ofinsurance https://www2.deloitte.com/content/dam/Deloitte/ru/ Documents/financial-services/artificial-intelligence-ininsurance.pdf

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TECHNOLOGY

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TECHNOLOGY

Assessing the current cybersecurity landscape: Cyber-attacks targeting banks In our current digital age, banks are able to offer a variety of benefits and plenty of app-based services to customers. That said, new technology innovations are actually augmenting the surface area for risks of new kinds of cyber-attacks to take place and therefore limiting the effectiveness of potential countermeasures and security solutions.

Therefore, there is an imperative need (now more than ever) to stay ahead of the game by pre-empting new forms of attack so that evolving technologies can be put in place before any changing risks can occur. Especially with the intricacy of the ATM ecosystem, with its heterogeneous hardware and software that are both expensive and difficult to update. As ATMs and customer touchpoints need to be available 24/7, financial organisations typically do not have the latest security policies in place, nor a centralised view of their attack surface. It is critical that banks strike the balance between software deployment and hardware maintenance, whilst simultaneously keeping control of changes in software and hardware and ensuring it is as secure as possible.

Taking a deep-dive into the current cybersecurity landscape in the financial services sector, ATMs and central servers that control ATMs have become a popular target for cyber-attacks. The pressing issue is growing worldwide, given that 58.16% of respondents revealed to the ATMIA Global Fraud and Security Survey 2019 that over the latest year ATM attacks for both physical security breaches and fraud incidents increased (compared to 53.85% in 2017). These types of ATM fraud attacks can be distinguished as follows: - Data fraud – derived from data breaches, such as account numbers, pin codes, and other personal data - Physical fraud – consists of theft of valuable assets, such as debit or credit cards 27

TECHNOLOGY

- Cyber fraud – logical attacks to the systems and communications There has been a rise in cyber-attacks that exploit the physical- and software-based vulnerabilities of ATMs to obtain cash, known as ‘jackpotting’, as it results in an immediate reward. Over the last five years, financial organisations have already lost millions to jackpotting. For example, the Ploutus family of ATM malware has caused losses of over 450 million dollars (€398 million) across the globe.

ATMs fall victim to both physical and logical attacks for several reasons, such as the fact that physical cash inside acts as an incentive. Plus, cash machines store confidential information, like debit card numbers and PIN codes, which can be stolen and sold. As ATMs are not strictly surveilled, they become an appealing target – there is very little logical action taken to protect the data in them. On top of that, cyber-criminals also realise that an ATM networks’ legacy hardware and software makes it one of the weakest links in a bank’s security infrastructure. This is due to the high cost of IT upgrades and tricky installations, which leads to insecure systems that can be easily exploited.

In addition, be aware that the numerous actors responsible for ATM upkeep that have administration rights pose a real risk of insider threat, which involves employees from the financial institutions, service 28

providers, developers, and installers.

the network from infected ATMs.

Cyber-adversaries typically attack ATMs via the ‘XFS layer’, which is a standard interface designed to have multivendor software running on manufacturers’ ATMs, as well as other hardware. Although the layer uses standard APIs to communicate with self-service applications, there is actually no standard way of secure authenticating available – therefore, making it easy for cyber-criminals to exploit this vulnerability.

Cyber-attackers deploy malware into banking

Innovative technology solutions are invaluable to financial institutions’ cybersecurity protection as it is both time- and cost-effective. ATM and infrastructure management can now be centralised into a single hub and actions can be executed remotely to quickly establish new defences, via techniques including network segmentation and the implementation of new firewalls.

touchpoints, such as ATMs, to dupe them into activating ‘cash out’ commands and dispensing money. Likewise, the card reader may also be compromised – fraudsters are able to steal card numbers and track the pin pad to copy pin numbers, making the XFS layer a very attractive target.

Standard endpoint protection security, such as anti-malware technology, is not enough to protect consumers and financial institutions. Cash machine networks and systems are core to the infrastructure devices – they need to be available 24/7, and so they require added protection and a personalised approach. Financial institutions require a centralised security solution that protects, monitors, and controls all ATM networks from a central location. This allows the organisations to manage and oversee their entire banking asset network in one place and take appropriate action, such as preventing malware spreading throughout

It is crucial that banks have several layers of protection in one single platform available – the layers could include full disk encryption, application whitelisting, hardware protection, and file system integrity protection. In order to check the security plans and processes, banks will need to enlist the help of specialised security consultancies. Indeed, financial organisations are making a concerted effort to enhance and modernise their security landscape, but cyber-criminals are constantly finding new methods of attack. As the threat environment is evolving and advancing non-stop, banks have to be proactive in implementing and testing their cyber-defences.

Therefore, awareness of the threat landscape is essential for understanding what could be potentially exploited and utilised by cyber-criminals. If banks fail to do this, they massively increase their chances of experiencing security breaches, loss of sensitive customer data, and of course stolen cash.

Elida Policastro, Regional VP,Cybersecurity Division, Auriga Source: 1 https://www.atmia.com/news/atmias-atm-security-

association-releases-global-fraud-and-security-surveyresults/9521/ 2 https://www.zingbox.com/blog/ploutus-d-malware-turnsatms-into-iot-devices/

TECHNOLOGY

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BANKING

From high-touch to no-touch: THE CHANGING FACE OF BANKING Interesting times call for innovative solutions. While banking has had its eye on the digital prize for decades, COVID-19 has become a catalyst for more urgent digital transformation.

Here, Monica Spigner, Executive Vice President, Business Transformation and Mike Sloman, Senior Vice President at Teleperformance explore the ways in which front-end banking processes have changed for the better, thanks to digital technologies Banking gets a bit of an unfair reputation.

A traditional sector governed by stringent laws and regulatory bodies, has arguably been a bit more tentative in wrapping its arms completely around online tools than sectors such as retail or hospitality. Online banking has certainly been around for longer 30

thank you think (the late 90s), and let’s not overlook the luxury that is the cash point (still technology in action). However, over the past six to nine months we’ve seen unprecedented change in how banks are now interacting with consumers.

During the current global health pandemic, we saw five generations living, working and quarantining simultaneously – the first time in human history. Homes suddenly became workplaces, and we turned to technology to remain connected, operational and profitable. For a sector previously reliant on face-to-face interactions, banking had to go back to the strategic drawing board and look at how quickly and effectively it could adopt digital tools to change frontend processes, at scale and against the clock. The results have been encouraging, turning turmoil into opportunity.

Following in the footsteps of retail If retail is the kingdom of all things digital, then Amazon is its queen. Whether we’re talking about its Prime delivery service, Alexa-enabled smart devices or the upcoming and very first online-only Whole Foods store in the US, if you can imagine it, then Amazon has probably done it.

Mike Sloman

BANKING

The tech giant has become a Goliath for digital innovation, all the while gobbling up Davids left, right and centre.

Despite creating a monopoly in e-commerce, Amazon has inspired new ways of thinking for peers, competitors and other verticals.

As such, in light of COVID-19, we began to see financial institutions start to emulate Amazon-like experiences – seamless, quick, convenient, intelligent and personalised – through the adoption of tools including artificial intelligence and Natural Language Processing. Amazon’s blueprint for digital success provided banking institutions with a roadmap for what could be done digitally, as the world moved indoors. The result?

A banking experience evolving from inperson relationships to virtual intelligence powered by analytics.

Monica Spigner

have either limited the number of staff working within them, or closed indefinitely. In the UK, the industry is preparing for up to one in 10 bank branches to close permanently, with a number of banks looking at how to redeploy or convert existing office space.

People – customers or employees – are simply no longer in banks. With the complete pivot to working from home, banks have therefore urgently needed to assess their current digital transformation strategies.

This means more ‘front facing’ tools, mobile apps, and more flexibility in how and when customers can interact with banks, in light of our socially-distanced new normal.

Whether it’s apps to log into your accounts, dashboards to manage your wealth, or chat bots to answer queries, banking is now more of a digitised experience. We’ve moved from the high-touch of physical branches, to the no-touch of self-service.

In the same way that Amazon can provide you with product recommendations based on past purchase behaviour, your own banking chat bot – configured to specific preferences – can provide you with recommendations on future actions (i.e. taking out an insurance product) based on past banking habits. The more you engage with this no-touch, online model, the more it learns about you. The more it learns about you, the more intelligent and intuitive it becomes in helping you to manage your money.

From high-touch to no-touch While most of us have benefitted from the convenience of internet banking for some time, on occasion there have been reasons for us to go into a branch and speak to a human agent. From a wealth management perspective, sitting down with a financial advisor in person over a cup of coffee to discuss a portfolio has become customary.

Any decision to move or keep more assets with that particular bank would largely be dependent on the customer’s personal relationship with the financial advisor – trust is paramount.

However, with governments worldwide mandating blanket lockdowns, bank branches

The commoditisation of banking The ability to provide an experience reminiscent of Amazon has opened up banking to commoditisation and the upsell of value-add services and support. Through conversational AI and NLP, banks can harness recommender tools that collect, retain and learn data on users based on previous interactions.

So, let’s go back to the high net worth individual we mentioned earlier. By virtue of who that individual is, what’s in his portfolio, the type of company he usually invests in, and investment habits, the bank can be very proactive in helping him

to manage and expand the portfolio, as well as mitigate risk. All of this activity – on both the customer’s and financial advisor’s side – can be conducted through a personalised dashboard, monitored by the financial advisor. Trouble finding time to log in to the dashboard? No problem, the financial advisor can call to remind you.

Trouble navigating the dashboard once logged in? Don’t worry – an intuitive chat bot that can provide you with real-time support and recommendations. Keen to speak to an actual human? That’s still an option, too.

Banking on the future Banking is incrementally becoming more sophisticated, and the opportunity is ripe for further innovation, not just from a consumer perspective but also from an operational perspective. But ultimately, digital transformation success will remain elusive if institutions don’t take into account changing user habits, preferences and concerns. Appetite for more online services in our new normal is evident, but as more or less every business in every sector goes digital, the safety and security of online interactions will become a deal breaker for customers who want reassurance that their data – and money – won’t fall into the wrong hands. Those businesses that are able to leverage technology such as AI for both front-end and mission-critical services – such as cybersecurity – can bet on a competitive edge. Ultimately companies will reap rewards by integrating AI capabilities into their day to day activities, while balancing High Tech with High Touch to produce a holistic Digital Customer Experience (DCX).

Source: 1 https://thefinancialbrand.com/25380/yodlee-history-ofinternet-banking/

2 https://www.cnbc.com/2020/09/01/amazon-to-open-firstonline-only-whole-foods-store-in-brooklyn.html

3 https://www.thisismoney.co.uk/money/markets/

article-8677305/Unions-fear-400-High-Street-bankbranches-set-close.html

4 https://www.ft.com/content/8a03248c-2f8b-4aa9-86dbce8a409e0e60

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FINANCE

Future of Finance

What does the Future of Finance hold?.

The development of Open Banking over the last few years within the global financial services sector has been one to watch.

Our research demonstrates over half (55%) of professionals from the finance, technology and consultancy sectors believe that COVID-19 has encouraged its organisation or customers to prioritise digital transformation initiatives, including Open Banking.

Open Banking has the power to revolutionise the way we manage our financial wellbeing, improves customer experience and increases

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competitiveness. Despite its revolutionary status, however, Open Banking still falls short when it comes to managing our entire cash pot, with the initiative only being applied to payment accounts. This is opposed to the likes of savings, mortgages, loans and investments.

range of financial sectors and products”.

This is why the industry has started to coin the phrase ‘Open Finance’. This, according to KPMG is the term used to describe the “extension of Open Banking data-sharing principles to enable third party providers to access customers’ data across a broader

The Open Banking model has initiated an upgrade to outdated infrastructures and processes within financial services organisations. In order to implement this approach, financial services businesses need to either replace or upend existing systems for greater digital agility. In this

If banks want to future-proof their businesses for the customer of tomorrow, they must look to Open Finance as a way of doing this.

The Open Banking advancement

FINANCE

way, Open Banking has been an integral part of digital transformation within banking by providing digital flexibility.

Traditionally, banking has been considered archaic, and when it comes to digital advancements, the sector often gets left behind. However, the speed in which digital services has grown within the industry over recent years has been extraordinary, though we cannot ignore COVID-19’s impact here.

There had been much speculation over the years around whether Open Banking would be the catalyst for digitisation within financial services, then in came the pandemic which has instead led to the accelerated adoption that we see today.

With our research finding that over half of financial services professionals believe that COVID-19 has encouraged its organisation to prioritise digital transformation initiatives.

Consumers now have access to major benefits as a result of the accelerated development of Open Banking. The ability to access account information services means that customers can track and utilise information about their accounts or grant access to third parties, for example, mortgage service and loan services, across various accounts from one place. In 2015, long before the idea was being marketed to consumers, 40% reported that they would be happy to share their personal data in order to receive personalised financial management services. Convenience is King and Open Banking supports an environment that streamlines the customer finance experience, simplifying the personal finance for many.

The decrease in popularity of traditional banks correlates to the rise in Open Banking as consumers change their general approach to banking - from legacy to digital.

Research from Statista shows that in 2020, the share of people using internet banking (a segment of Open Banking) is 76%, an increase of 21% over the past five years, an upward trajectory of 3-9% every year.

The banking industry faces many obstacles as it struggles to keep up with the changing needs of its customers. Open Banking was perhaps a first step towards addressing some of the issues apparent in the traditional banking industry but operating financial systems in a digital environment comes with its own challenges. Despite this, Open Finance is hot on the heels of Open Banking, opening the door for high street banks to provide yet another level of growth.

The lead up to Open Finance Open Finance is like the big brother of Open Banking, leveraging its services but offering a wider variety of sectors and products. It will allow consumers to make more comprehensive financial decisions, based on their entire financial portfolio, rather than just their payments accounts. In addition to this, it could potentially open up automated switching and renewals so that there’ll be less friction if customers want to compare different financial products.

Although the technology is relatively new, the potential benefits signify the next generation of financial services and the industry is certainly interested. Our research found that over half (53%) of professionals believe there is a demand for Open Finance in their country, based on the success of open banking.

A good example of some early movers is the merger between ING Bank and Postbank which, used Open Finance to deliver the four data migrations that were required to carry out the process. Not only did this make operations cheaper and faster, but it is also the catalyst for the increased use of Open Payments by organisations and consumers.

To make the most out of the opportunity presented by Open Finance, banks, technology providers, FinTech players, academics and consultants must collaborate to define a

revolutionary banking technology framework that standardises and simplifies the overall banking architecture. Only through greater collaboration, are we are able to future proof the industry, weather any storm that comes our way, but we need to control the costs.

Is the transition complete?

Over the last few years, we have witnessed the growth of Open Banking and seen Open Finance being brought into fruition. There have been increased benefits for businesses since the development of Open Banking including heightened insights for customers, reduced costs and better accessibility into new markets. Its benefits and growth can’t be ignored with adoption surpassing the one million mark in the UK alone. Open Finance takes this approach one step further with the opportunity for greater possibilities.

Those who are collaborating and embrace this new personal finance management model, with the right technology in place to support a seamless service, will be front in line to realise the benefits. Try not to be the ones who get left behind.

Hans Tesselaar, Executive Director of BIAN Source: 1 https://home.kpmg/xx/en/home/insights/2020/03/

2 3 4

5 6 7

engaging-with-open-finance.html#:~:text=’Open%20 Finance’%20is%20the%20term,products%2C%20 including%20savings%20and%20investments. https://www.paymentscardsandmobile.com/832-increase-inopen-banking-payments-during-covid-19-lockdown/ https://bian.org/news-room/bian-in-the-news/2020-yearchanged-us/ https://home.barclays/content/dam/home-barclays/ documents/citizenship/access-to-financial-and-digitalempowerment/Open-Banking-A-Consumer-PerspectiveFaith-Reynolds.pdf https://www.statista.com/statistics/286273/internetbanking-penetration-in-great-britain/ https://www.viqtordavis.com/en-uk/cases-detail/ing https://www.openbanking.org.uk/about-us/latest-news/ open-banking-adoption-surpasses-one-million-customermark/

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BANKING

In January 2018 the Competition and Markets Authority quietly announced an initiative that has since shaken up the way UK banks hold customer data - and who has access to it. That initiative was called Open Banking.

Today, two and a half years on, it is on the cusp of living up to its potential.

Open Banking modified the strict rules that govern the use of bank customers’ financial information. By granting limited access to this data to trusted, and vetted, third party businesses, it sought to spur the creation of new products and services that consumers would find useful.

Before the introduction of Open Banking, it’s safe to say the banking industry was not famed for its innovation.

That’s not to say innovation was not happening. The shift to chip and PIN, and then on to contactless card payments, as well as changes to ATM machines and the arrival of mobile banking, are merely the most visible examples of technological progress.

Since the Global Financial Crisis, successive UK governments have sought to inspire more competition in both the banking industry and the wider financial services sector.

A decade ago, London’s fintech melting pot sprang out of the nexus between City knowhow and Shoreditch’s tech entrepreneurs. Fuelled by thousands of overpriced flat whites, the two strands fused to create new and innovative ways to help people manage and invest their money.

Banking are everywhere. Consumers can see all their finances in one place, and the financial services sector is packed with new and exciting tech-led offerings, from budgeting apps to savings and investments.

But for all the huge strides made, it is fair to say that much of the innovation has been centred on financial services. The original vision for Open Banking - to extend the benefits to other sectors - has remained largely unfulfilled.

Until now that is. Other sectors are finally starting to reap the rewards.

Take retail for example. This summer saw the UK launch of Recash, a retail cashback app powered by the Open Banking freedoms that was originally developed in Hungary.

The free app has a simple, compelling pitch to consumers – it allows them to upgrade their bank card into a cashback card. It takes seconds to turn any card into a cashback card, which will automatically transfer money back to the shopper whenever they buy something from a participating store.

For retailers, the

Open Banking was conceived as a way to extend that creative momentum further. Tech developers who registered as ‘Regulated Providers’ were given access to previously confidential banking data they could then use to create innovative new products.

Fast forward to today and the results of Open

IT’S TIME FOR OPEN B 34

BANKING

technology is an ally that combines detailed information about individual consumers’ finances and spending with the ability to run precision-targeted cashback promotions which can be used to prize customers away from rival stores.

Though anonymous, the data the app collects through Open Banking gives stores a panoramic view of individual consumers’ tastes and spending patterns – including what and when they spend with rival brands.

Previously only tech giants like Google or Amazon could get close to gathering such granular detail of consumers’ tastes, through their online search and purchase history. But Open Banking is now enabling retailers of all sizes - both online and offline - to access, and act on, vital intelligence like this.

In many ways the UK’s retail sector is going through an existential crisis akin to that endured by some banks a decade ago.

Lockdown forced the closure of high street stores for several months, and even after restrictions

were eased, strict social distancing rules have curtailed shoppers’ willingness to visit physical stores.

Several well-known high street names have gone to the wall, and even retail sector thoroughbreds like Boots, Harrods and John Lewis have closed stores or laid off staff.

But it’s not just bricks and mortar retailers who are struggling. Even though well over a quarter of UK retail sales are now made online, online stores face a similar challenge of weak consumer confidence and an economy on the verge of an unemployment crisis.

Given the scale of the challenges the retail sector currently faces, it needs all the help it can get. Emergency Government support alone will not be enough, and the brands most likely to survive and thrive are those agile enough to adapt to consumers’ changing tastes and acute price sensitivity.

Fintech innovation and Open Banking have transformed the financial services sector over the past decade. The financial sector’s pivotal role in the UK economy as a whole means this progress has delivered broader growth too.

But now it’s time for Open Banking to deliver on its full promise, and spread more direct benefits to other sectors. As its potential is at last realised by retail and other sectors, Britain’s battered economy needs it like never before. Its coming of age can’t come soon enough.

Sara Korchmaros, CCO Recash Source: 1 https://recash.app/

BANKING TO OPEN UP 35

TECHNOLOGY

As organisations adapt to dramatic changes in working practices, the need for digital transformation has increased dramatically.

Many organisations have been forced to move quickly to virtualise and digitise, as 2020 has seen huge changes in how (and which) businesses operate in an increasingly uncertain economic landscape.

The current crisis presents many challenges but it also presents unique opportunities for business transformation. As Nobel prize winning economist Paul Romer once stated, “A crisis is a terrible thing to waste.”

Desire to adapt to new ways of working As companies respond to new challenges, the way teams approach problems and the way they work together to provide business value can change for the better.

Formerly disparate teams are now coming together to work on collaborative solutions to resolve current problems.

Today’s business climate presents an opportune time for finance teams to use digitisation to reduce the amount of time and effort they expend on manual processes, so that they can increase their focus on managing core business issues and making more strategic decisions.

In a time of such dramatic, forced change, many of the usual constraints to business evolution have been removed. Concerns about breaking out of comfort zones or making changes too quickly are gone as companies look to solve the clear and immediate challenges they are facing.

Similarly, structural inhibitors – like teams working in silos, general inertia and inflexible processes – are being replaced with

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a renewed energy and a common desire to adapt quickly to new ways of working.

This year is proving to be a catalyst for important organisational changes. As savings become more crucial to company survival, the misalignment of resources across the financial function can no longer be ignored. Most businesses can benefit from digital transformation to help finance teams modernise and become more efficient, effective and resilient.

Finance is a business function that can be dramatically improved through automation and the use of intelligent software in decision making. It’s arguable that the finance function of the future is being born out of the current necessity.

Focus on fundamental shifts As they adapt to new ways of working, finance teams should focus their transformation efforts in areas where they can make fundamental, long-term changes. This

TECHNOLOGY

means accelerating existing digitisation programmes and picking up on existing industry trends that go beyond short-term firefighting efforts merely designed to get through the current challenges.

Within the financial function there is an increased need for agile forecasting and reporting processes that rely on live data, rather than extracts, spreadsheets and manual reports. Finance teams were already making this shift, but this year has seen a more urgent need for real-time metrics that reflect the evolution of a rapidly changing business environment. This shift in approach is likely to be permanent with no reversion after the crisis is over.

Another important trend has seen many offices shift to remote working, and finance teams have been driven away from the standard practice of gathering paper-based documents and receipts. The ability to apply AI to paper trail-based processes has simplified a once tedious operation, making room for lasting change.

Why finance processes are ideal for transformation Many finance processes have three characteristics in common that AI is well suited to transform: they are based on paper trails, require contextual information and operate at high volume.

In finance departments there is traditionally a paper-based, unstructured information flow. Many companies are still dealing

with largely manual processes that are very time consuming and error prone. AI can understand unstructured finance documents, like receipts, POs and contracts.

Unlike general purpose OCR systems that make basic mistakes, like confusing a ‘$’ and an ‘S’ or a ‘£’ and a ‘6,’ finance focused AI is much more accurate.

There is also the need for contextual information from outside and inside the organisation. AI can enrich the paper trail with a lot more context. It can look at the entire history of expenses for duplicates, for example. It can compare prices, suppliers and individuals against publicly available information, like Google searches and proprietary company information.

Large volumes of paperwork make comprehensive manual work cost-prohibitive and prone to error. Unlike a team of people, AI never rests, and can scale infinitely. It can apply the same level of rigour to every document, meaning a much more thorough and accurate analysis is undertaken in a fraction of the time.

many resources to these activities, finance teams don’t have the bandwidth to spend on financial planning or strategic activities that would increase the value they provide to their organisations and contribute significantly to success.

By implementing AI driven systems, finance teams are rebalanced. They can focus more of their time on strategic finance initiatives rather than on manual and tedious tasks.

As digital transformation programmes are accelerated, finance teams can look at making a more permanent change and realigning their focus to areas of the business where they can add the most value.

Andrew Foster, VP Consulting EMEA, AppZen

Fix the misalignment of resources and value The misalignment of resources and value across financial functions makes transformation absolutely critical for success.

Most of finance’s resources and time are traditionally spent performing transacting, record keeping, reporting, and compliance duties. While these activities are crucial to the business function, they do not drive enormous added value. By allocating so

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BUSINESS

The silver lining in insurance post-COVID-19: a new business model At the height of COVID-19, the most pressing business challenge was operating remotely. Thanks to technology, insurers could respond, and for the most part, effectively work from home. Now, the sector faces a new crisis: the unknown. We are far from overcoming COVID-19 yet and planning for the future is near on impossible – but what insurers do know is that they need to be prepared for change.

The urgency created by recent events acted as a catalyst for faster executive decision-making and action, driven by the need to protect people and maintain business continuity. The period ahead will challenge business leaders further to make rapid (and often difficult) decisions. Whilst technology will continue to be the enabler, trust, co-creation and a data-led approach will be the key ingredients towards successful transformation and a shift from protection to prevention.

Data is king Data is core to a “predict and prevent” model. It holds great importance and is becoming more and more integral in the industry. And with an explosion of digital technology, real-time data is becoming increasingly available to analyse water pressure, personal fitness, how we drive, the status of machine components and much more.

The common approach to insurance is that customers purchase policies and nearly immediately forget about it… until an accident happens. Customers now ask far more questions with the majority related to COVID-19; a common example of late has been eligibility for money back on car insurance.

This trend was confirmed when Admiral automatically gave 38

BUSINESS

customers a £25 car insurance refund over lockdown.

introduce “smart policies”, thus making the move to a “predict and prevent” model.

It is a key example of how data points – like a reduced risk with fewer cars on the road – can create a more agile model to benefit customers. Using data to predict potential incidents and damage means insurance companies can reduce the likelihood and severity of losses suffered by their customers and, consequently, improve their operating ratios and prices.

Emerging data sources can now be leveraged to provide a continuously updated view of underlying risks and, as a result, insurance providers can make dynamic future projections and develop fairer pricing models.

Ultimately, how insurers use this data will be key. While there are huge opportunities available for the insurance sector to utilise data in effective ways, taking advantage of the volume of information requires refocusing activities and implementing technologies, such as automation.

Scrap legacy models Access to risk data is essential in allowing insurers to establish trust with their customers and help businesses themselves with long-term profitability. Yet, many insurers fail to reap the real benefits.

Insurers sell a policy and a customer commits with the hope that it will never be used – after all, using it means there has been an accident or loss. When the insurance model is traditional i.e. when it is a “repair and replace” model premiums are based on historical data. That being said, an insurer claiming to be a digital innovator using such a model is only making the purchase and claims process “easier”.

KPMG recently noted that they had seen an increase in the volume and use of customer data, as well as customer interaction increasing and improving during COVID-19.

Since the outbreak, it seems attitudes towards the power of data and technology have been shifting, so the question is – how can insurers make the shift permanent?

Well, the technology to facilitate a radical shift away from traditional methods exists.

The powerful combination of Artificial Intelligence (AI), automation, IoT and analytics means insurance providers can

Take natural disasters, for example, where insurers play an important role in minimising the loss caused through damage.

By working alongside other technology providers, governments, local councils and environmentalists, insurers can warn customers in advance.

Manan Sagar, CTO for Insurance at Fujitsu Source: 1 https://www.theguardian.com/money/2020/apr/21/admiralcar-insurance-refunds-coronavirus-lockdown-claims

2 https://www.fintechmagazine.com/fintech/customerexperience-and-digital-insurance-under-covid-19

Clear and concise data from environmental agencies can not only deliver fairer home insurance policies with premiums based on factual data, they could in this case play an important role in helping to save lives. There is no way to stop a hurricane, but if you can plan for it, the likelihood of recovery is far greater.

A force for good Ultimately, when the insurance industry combines data and technology, it goes from providing the reimbursement of losses and damages to predicting and preventing losses from happening. A transition like this would be a holistic one, as it would not only benefit the insurance industry, but society too.

Insurance has traditionally been an unwanted purchase, particularly when prices are high and customers question the value for money. But a smart, calculated approach is a good way to build strong foundations of customer satisfaction and trust. Ensuring risk is measured based on a continuous stream of data, rather than old or historical information and predictions, benefits the insurer, organisations and wider population.

As insurers emerge from the disruption caused by COVID-19, they must reflect on how technology helped them make the leap into a future of predict and prevent models.

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INSURANCE

XT GENERATION

THE NE

OF

INSURANCE

Covid-19 has caused a crisis for the tourism industry. Last year, McKinsey reported that it made up 10 per cent of global GDP, sitting almost three times larger than the agriculture sector at nearly $9 trillion. But new data indicates that international tourist arrivals are projected to plunge by 60 to 80 per cent in 2020 and are not expected to jump back to pre-crisis levels next year.

One thing is likely: increasingly cautious tourists and business travellers will be more inclined to purchase travel insurance when they go abroad. Naturally, this is music to the ears of travel insurance providers, but there is skepticism about whether the offerings currently available are innovative enough to meet the new demands of the next generation of travellers.

The cost of falling ill abroad Travel has long been the “problem child� of the insurance family - offering only a minor revenue stream with high loss and combined ratios, and a long road to breaking even on a customer.

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And, in bad news for insurance providers, health costs around the world are rising.

According to Willis Towers Watson in the US, the cost of medical care will rise 6.8 per cent globally this year. The most dramatic rises are in the Middle East and Africa, where costs are set to jump by 9.3 per cent, up from 8.5 per cent in 2019. There are several reasons why this is happening - including a greater demand for quality healthcare from more informed consumers, a higher incidence of chronic conditions, ageing and growing populations, the introduction of regional regulations, advancements in medical technology, and an increasing number of non-resident or no-income resident cases that do not pay any of the bills.

As healthcare costs continue to rise year-on-year, out-of-pocket medical expenses become further out of reach for many travellers and expats. This in itself increases the demand for cover that will shift the burden from consumer to the insurance provider. This is because costs for hospital care can be steep and vary drastically by country - treating gastroenteritis in Thailand will set you back around $2,000, but medical attention for pneumonia in Beijing

INSURANCE

will cost around $94,500.

Consumers who travel, work, or live internationally without proper cover leave themselves vulnerable to paying these extremely high prices if they get sick or injure themselves while they’re away from home.

Becoming ‘brand of choice’ for millennials Despite the disruption of the pandemic, we know that people want to see the world, meet people from other cultures, visit historical sites and much more. Research released by Berkshire Hathaway Travel Protection in November suggested the millennials are likely to lead the international travel recovery, with 38 per cent indicating that they plan to travel internationally, whereas the mature demographic (55+) will travel domestically.

The intention to buy travel insurance in 2021 was the highest recorded by the survey so far (51 per cent), also led by the millennials.

But millennials - who make up the largest living generation today - and Generation Z have a different purchasing

According to Raul Singh, CEO of Ithaka, a chat-based travel planning platform backed by Thomas Cook, “We will see more travel companies going for the millennial and Generation Z travel segments as it explodes with more younger travellers than ever before.”

mentality to previous generations, opting for products and services that have been personalised to suit their individual needs. Studies have also shown that millennials are more prone to spending money on convenience and experiences rather than spending on material objects, and they tend to show a higher loyalty towards brands they like and connect with.

So, building a brand that provides convenience for this very large population should be top of the agenda for providers looking to

access this large customer base and inspire loyalty and trust that their needs will be met.

Innovative offerings for returning customers One of the greatest challenges - and opportunities - for insurance providers as international travel picks back up is pre-empting problematic situations in the ‘new normal’ and responding with useful tools that will minimise disruption to the consumer while also reducing claims costs.

This is something core to our belief system at Air Doctor, where we have been educating travellers and insurance providers about the need to use networks of local private doctors to treat travellers who fall ill abroad, rather than burden overwhelmed emergency care services.

Similarly, the insurance companies likely to pull ahead and offer the best products to nervous consumers are the ones that have addressed the what-if scenarios and provide them with protection and support during their travels. These are likely to include benefits such as offering customers a digital journey should they fall ill, and cash-free solutions for a better customer experience.

As a global rollout of vaccines approaches, travel insurance providers must be proactive in building a new generation of tools - or collaborating with insurance technology startups that have the expertise in-house. As Todd Hancock, CEO of IMG, put it: “Our greatest challenge is being there for customers before they need us – in the market, providing expertise and offering the right products and services at the right price, at the right time.”

Yuval Zimmerman Director of Marketing at Air Doctor Source: 1 https://www.mckinsey.com/~/media/McKinsey/Industries/

Travel Transport and Logistics/Our Insights/Reimagining the 9 trillion tourism economy what will it take/Reimagining-the9-trillion-tourism-economy_what-will-it-take-vF.pdf 2 https://www.willistowerswatson.com/en-GB/ Insights/2019/11/2020-global-medical-trends-survey-report 3 https://www.bhtp.com/blog/covid-19-travel-research

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BUSINESS

4 CFOs While no one can with any degree of certainty predict how the pandemic will continue to affect our way of work, businesses now find themselves in the midst of the highly anticipated second wave. In preparation, business leaders have no doubt been looking at how they managed their company and its employees during the first wave, in an effort to limit the strain on their businesses a second time round.

At the beginning of this year, Grant Thornton conducted its annual CFO survey to better understand their priorities for the upcoming year. But due to the upheaval caused by the COVID-19 pandemic, the respondents were resurveyed in May. This offered additional insights into how priorities have changed as a result of the pandemic. CFOs’ time prior to the pandemic was traditionally divided across ‘strategist’, ‘change agent’, ‘producer’ and ‘guardian’ roles. However, according to the second survey conducted in May, CFOs’ main focus is now on their leadership roles as strategists and change agents, with less time spent on the day-to-day transactional responsibilities typically associated with ‘producer’ and ‘guardian’ roles.

This shift in the CFO role has been talked about for some time, but it seems the current crisis has forced CFOs to dedicate more time to strategic leadership, organisational transformation, and performance management.

result of distributed working environments.

While the fallout is yet to be fully revealed, we do know that business leaders are settling into a ‘new normal’ that will need to be shaped by how they want their business to function in the future.

With the economic uncertainty caused by the pandemic, it is now more important than ever for the finance and accounting organisation to focus on planning, analytics, and advisory. It’s precisely these areas where digital finance transformation initiatives are often focused―applying automation to unlock accounting efficiency, which enables the organisation to be more strategic and use data to achieve clear visibility into both financial and operational performance.

But achieving the full value of automation to enable this structural change requires the organisation of tomorrow to not only change technology, but also challenge and reimagine hardened accounting processes. Success necessitates engaging every level of the organisation to embrace digitisation rather than fight it, reallocating where personnel spend their time, and developing a new talent mix from within the organisation.

With this in mind, here are 4 steps CFO’s should consider to drive this change and successfully shape their new normal:

Shifting focus and shaping the new normal

1.Build ‘Team Change’ and put your new model into play

Since March, organisations have been busy adjusting to the twists and turns of the pandemic, with CFOs and their finance functions facing unique challenges as a

Work with a another senior leader, such as VP of Finance, Controller, or Chief Digital Officer, to craft a vision statement for the accounting and finance organisation, such

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as the goals for the organisation by the end of 2021 or 2022. Identify high-level gaps and obstacles between your current and future states and create a milestone-based roadmap.

Engage your most passionate team members to act as ‘champions’ and establish collaborative, cross-functional teams that include front-line accounting and finance team members to identify processes that are ripe for reinvention. Then identify ‘enablers’, who can help to ensure that personnel have the educational material they need and understand new processes.

Enablers can also help to communicate the career development opportunities of learning new ways to work.

Additionally, make sure you have ‘scorekeepers’ who can measure progress using quantifiable metrics to gauge success period-over-period, with feedback to the broader team on adoption and results.

2.Proactively tackle the key obstacles What are some of the critical obstacles you’ll likely face on the road to change?

Common issues range from a poorly-defined vision that lacks buy-in to a reliance on tools that finance and accounting can’t own and manage themselves.

Take proactive steps to manage these obstacles before they become a problem.

For example, if your overall digital vision is not clearly defined, hold integrative discussions within your organisation – bringing together representatives from all parts of the business – to come up with a joint digital vision.

BUSINESS

3.Incentivize change. Empower ownership.

Enable talent.

In addition to a clear vision, communication and enablement are some of the key tactics to get the frontline on board. Be sure to establish rewards and recognition, which can act as a powerful incentive. Some organisations, for example, establish rewards programs with recognition awarded based on measured results and improvement.

It’s also important to empower ownership by ensuring technology can be confidently owned and managed by end users. As part of this, you need to enable talent by ensuring easy access to skills development. Whether changing roles, changing technology, or changing processes, it’s vital that no talent is left behind.

4.Measure process performance & continuously improve Establishing process KPIs provides a powerful way to gauge the level of success and provide a feedback loop on where the next change initiative should be focused.

For teams, it’s a way to strive toward and transparently measure against established goals. Fortunately, modern financial close management and automation tools automatically collect KPIs and can often identify trends over time to show period-over-period improvements.

Whatever the preferred approach, it is clear that CFOs should act now to make sure their actions have a maximum impact in the new normal, not only to affect how they work in the future, but also the success of the business that they are in.

David Brightman, Director of Product Marketing BlackLine 43

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TECHNOLOGY

is something that’s especially important right now. With Covid-19 demonstrating the changing needs of customers, fintechs need to keep up and launch far more quickly.

AREN’T MOVING FAST ENOUGH, AND ITS FAILING THE END USER Change in financial services is constant, and emerging fintech players have now reached a level of maturity where they are challenging or revamping almost all pre-existing finance systems. Whether it’s know your customer (KYC), regulation compliance, or payments, fintechs are driving significant shifts in thinking throughout the industry.

However, with every success story there’s a whole host of fintech failures, and often those fintechs that fail to progress beyond a concept, are those that spend too much time and money on their proposition. Many inevitably head down the ‘fintech spiral of death’ route - whereby the complexity of the market and a lack of access to funds, hinders their development cycle before it even begins. But this does not, and should not have to be the case.

Why do so many fintechs fail?

Many fintechs fail to launch due to the complexity of the sector. In amongst the world of regulation, licensing and compliance, fintechs often find themselves battling it

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out against other players in hope to launch to market quickly and stand out against the crowd. But whilst these requirements are all necessary, it can take fintechs up to a year, or sometimes longer, to jump through these hurdles and finally get to market.

“These processes have also become

much more expensive. For fintechs, especially those that do it themselves, time is money, and building and developing a platform can become an extremely expensive venture. This is why many bring in investors to further their operations and drive scale. But by increasing the time it takes to launch, fintechs are draining their initial funds before they have even started, and investors quickly move to new investment targets in the space.

”

What’s more, the time spent navigating through the complexity of the ecosystem and wasting valuable time on back-end issues, means fintech are losing focus on what’s truly important - how to grow their customer base and drive revenue. This

The build or buy conundrum Not only is the slow, but necessary, world of regulation one of the biggest factors for a fintech failing, but so is building and connecting the different elements of the ecosystem into a platform.

Since the start of the fintech revolution, many incumbents have attempted to match a fintech’s offering, developing their own innovative solutions by building it themselves - rather than seeking help from third party providers.

Take the Royal Bank of Scotland (RBS) for example. It recently dropped its standalone digital bank Bo which tried to match the speed and simplicity of top challengers Monzo and Revolut, but couldn’t keep up with the pace and therefore failed.

This is an example of why doing it yourself and building your own ecosystem is no longer working - even big players like RBS do not have the infrastructure to do so. Many good fintech ideas are therefore being lost in the abundance of new fintech taking the financial services by storm, but for fintechs to move quickly and stand out against the crowd, there’s another solution gaining ground.

Let’s speed up innovation To speed up innovation and meet the demands of customers, fintechs need

TECHNOLOGY

to utilise the tools at their disposal, and collaborate with other fintech players to establish valuable platforms that can thrive in the challenging market.

Specialist fintech companies provide a ‘onestop-shop’ for fintechs looking to launch, dealing with the important, but resource heavy tasks - including regulation, licensing and compliance, but also the ever-changing ecosystem integrations which can be costly. This in turn allows fintechs to focus on improving their overall business strategy, so that they can launch quicker and act with greater agility.

The needs of customers have changed as a result of Covid-19 - speed, simplicity and security when handling finances is now vital, and with fintechs taking far too long to develop and launch new products that meet these demands, they are ultimately failing the end user.

If emerging fintechs want to continue to drive further innovation across the industry, then they need to move quickly and launch to market at a much faster pace

Stefan Pajkovic, CEO TradeCore Source: 1 https://techcrunch.com/2020/08/11/building-a-fintechgiant-is-very-expensive/

2 https://www.cnbc.com/2020/05/01/rbs-drops-bo-its-

attempt-to-rival-monzo-and-revolut-why-it-failed.html

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TECHNOLOGY

Cloud adoption is it even a choice anymore?

–

In early 2020, we had plans, we had goals, we had a roadmap. But since then most things have changed.

When O’Reilly fielded the annual Cloud Adoption report in early 2020, there was anticipation about the results, but even they must be looked at through a new lens. Some changes will fundamentally impact the trajectory of cloud adoption, so we must take these into consideration.

Originally, this survey was commissioned to understand changes to cloud usage throughout the enterprise from year to year. This would enable us to predict future trends, understand the motivations within sectors and acquire a better understanding of barriers and challenges on the journey to cloud.

Without devaluing the impact that COVID-19 will have on the long-term adoption of cloud, the survey still serves as a good indicator of where enterprises stood, habits, preferences and general attitudes towards cloud. It is a starting point.

Join the cloud crowd Cloud is happening and quickly – not necessarily something that surprises anyone, but the rate of adoption is staggering. Across the 1,283 survey respondents, 88% shared that their organisation uses cloud services. What is even more telling is that over 90% of respondents also stated that their organisation expects to increase its cloud-based infrastructure.

Although these numbers indicate wide adoption of the cloud, what is always intriguing is how much of its infrastructure an organisation plans to put into the cloud. When asked about this specifically, nearly a quarter of respondents – the second largest cluster – indicated 48

to th 34% plan of their applicat three years to be spec of respondents predicting t all of their applications to the clo

When we are talking cloud, the definition a-service (SaaS), platform-as-as-service (PaaS) a-service (IaaS). These terms cover everything, from c office productivity tools through to born in the cloud applica hards might not consider all of these tools equal with analy applications, they certainly fall within the broader understan broad definition also helps to account for the possible lack of usage, especially in large, possibly siloed organisations.

On the surface, these results may not change any of the cur many of the results simply reaffirm the current views on ente and usage. Organisations are increasing their use of the clou plans to grow cloud services. Cloud on the surface is no long is a necessity. It enables expansion of storage, upgrading of s of budgets while still embracing change and digitally transf

Putting it into practice

Digging a little deeper, it is important to understand the re saturation and company size. To do this we asked adopters w applications are hosted in the cloud. 21% indicated that they ho cloud, however, the majority (39%) indicated that a quarter or le

that they plan to move 100% of applications he cloud. On the flip side, n to move just a quarter tions. Looking forward, cific, this jumps to 40% they will have migrated oud.

includes software-asand infrastructure-ascloud-based email and ations. Now cloud dieytics and microservice nding of the term. This f visibility around cloud

rrent thinking. Actually, erprise cloud adoption ud. Organisations have ger new or innovative, it systems and tightening forming.

elation between cloud what percentage of their ost all applications in the ess of their applications

The sky’s the limit When the survey was conceived, we did not imagine that it would become an artefact of our pre-pandemic reality.

As with many things, there is an element of evaluation around what we would have changed if we knew what 2020 held.

Naturally the survey would look more closely at resilience, remote working and cost reduction, topics that have

are in the cloud. This provides even more insight when viewed in the context of company size.

At companies with 100 employees, 37% cited having all applications in the cloud followed by 22% noting 75% of applications reside in the cloud. This is logical in the context of the cost-effectiveness and scalability of the cloud versus on-premises solutions. Smaller companies may also encounter fewer barriers to adoption and embedding new models, with many now being ‘born in the cloud’. Despite this trend, in companies of 10,000+ staff, a surprising 17% host 100% of their applications in a cloud context. The traits that make cloud appealing for small companies – cost, flexibility, scalability, accessibility – also appeal to organisations with globally dispersed employees.

Of those who have not jumped on the cloud bandwagon, the most commonly cited reasoning was culture, skills shortage and an ‘organisational preference to keep data on-site’. Interestingly, many of the barriers here are also seen across other technology adoption cycles, specifically AI. When asked specifically what combination of solutions organisations are using, public and hybrid cloud were two of the most popular, with 61% and 39%, respectively. Traditional, on-premises infrastructure follows with 49%. This reinforces that even though cloud adoption is permeating many corners of organisations, it is not a catch-all solution.

The results overall may not definitively say cloud is always the way to go, but they do point to a state of flux. Many organisations are using a stop gap of multiple solutions. In the years to come, the current status of adoption and usage will provide an important gauge of progress.

come to the forefront for many organisations.

No doubt, the questions we think we would like to ask today will continue to evolve throughout the year as the landscape continues to change and as our understanding of the events and impact of this period unravel.

In times of change, it’s worth knowing where you started.

Mary Treseler, VP of Content Strategy at O’Reilly Source: 1 https://www.oreilly.com/radar/cloud-adoption-in-2020/ 2 https://www.oreilly.com/radar/ai-adoption-in-theenterprise-2020/

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INVESTMENT

PROPERTY AND CR

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INVESTMENT

RYPTOCURRENCY

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100% INVESTMENT

I have to confess to more than just a ‘soft spot’ for property as an asset class. I have spent 17 years in the industry, working across residential, commercial, social housing, hotel developments, lending, and prop tech. I’ve been personally purchasing rental property since 2005.

The vast majority of those years have been dreamy for property investors; broadly rising prices for the time (despite the exception of the 2008 general financial crash) great rental yields, a generally supportive political environment, and, personally, I’ve been lucky to have mostly good tenants. I remember the heady noughties, when a vast ecosystem of property companies sprung up, helping people replace their hated 9-5 jobs with a rental portfolio.

More recently, the property market has been somewhat in the doldrums. Even before COVID hit, a survey by Shelter in late 2019 found that just under half of working people living in privately rented homes in England would be unable to afford rent for more than a month if they lost their job. To break this down: even without a COVID recession, a significant proportion of people would be unable to pay their rent if they lost their jobs, within one month.

There is no starker warning about an overcooked property market, before you throw a whopping coronavirus recession at it.

2020 has been a strange time for the property market. Understandably, no-one could sell nor buy, over the strictest lockdown period, and more recently, with restrictions easing, there was some pent-up demand, as those who has been desperate to move were able to do so. However, in practise, we have stuck a giant sticky plaster over the problem.

Landlords and owner-occupiers alike were

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given mortgage holidays, and there is currently a 6-month process for a landlord to serve notice on their tenants. It also remains to be seen just how bad the unemployment rates will be as the furlough scheme is gradually withdrawn – which quite rightly provided a lifeline to 8.9 million people over the summer, and a lot of breathing space for paying rent.

Similarly, there is a stamp duty holiday, for properties up to £500,000 until March next year, yet none of these measures are long term fixes – indeed the Center for Economic and Business Research (CEBR) projects that property prices will fall by 14% in 2021. As we survey the wasteland of the economy as we attempt to recover from the COVID recession, property investors fasten their seatbelts and expect, at best, a bumpy ride. Indeed, my personal prediction is that 2020 will be a 3-5 year high for property market.

In the past few weeks I have spoken with a plethora of property professionals, be they buy to let investors, letting agents, investment agents, or property mentors, all of whom are rightly worried about the short-term outlook for property. They are diversifying out of necessity rather than choice. In the quest for yield, even the most loyal property enthusiasts are having their heads turned up the year to date growth stats for crypto: at the time of writing Bitcoin is up 41% and Ethereum is up 166%.

I see property and crypto as wildly compatible and supportive of each other. To participate in buy to let property in the South East of the UK, you will need in the

region of £60,000. For most crypto fans they are deploying far less. Indeed, it has also proven popular for those who are trying to grow their deposit to purchase a property. Further, crypto is far more flexible and liquid in case of “a rainy day”.

My only exit from property has either been either via re-mortgage taking 1-2 months, or a sale over 3-6 months; not great in the current uncertain climate. Crypto can be sold, in minutes, on a major exchange, those purchasing the bluechip cryptos (Bitcoin, Ethereum, Litecoin) are able to take advantage of a daily market of tens of billions of pounds – they can sell some or all of their crypto should they need to.

Crypto today feels to me much like property in the late 90s; few people were expecting it to sky-rocket, nor were many people conversant with building an empire from it. Crypto businesses seek to “educate” to the broader population about the crypto industry – it is no longer the preserve of the niche and nerdy.

Indeed, according to the FCA over 3% of the UK adult population owns crypto already.

In my opinion, in the near future, as the recession really starts to bite, the population will be starkly divided into those who have done their homework on diversifying into this asset class, and those that haven’t.

Katharine Wooller, Managing Director DacxiDacxi

INVESTMENT

UPTAKE OF TRADING 2020 has been a year of uncertainty and change. With millions of workers across the country being furloughed or losing jobs due to the knock-on effects of the pandemic, daily routines have been upended in both personal and work lives, leading many of us to find ourselves with more free time on our hands and new habit choices to make.

This will likely be the first time that many people have had enough spare time to ask themselves what they really want to do and actually do something about it. Although this is undoubtedly a challenging time for the majority of us, we may never have this extra time to educate ourselves or upskill in the same way again.

Education platforms have taken great pride in helping customers try new things during lockdown. By providing materials to help users’ upskill to find new opportunities, online courses have been an ideal way for many to retrain and learn new skills in an affordable and accessible manner on topics they may have once thought were out of reach. It would seem many have done just that when it comes to retail investing.

This year alone, we’ve seen over 20 million new students globally sign up to Shaw Academy courses and over the past year, we have seen a huge boom in the number of users partaking in our trading and investing courses in particular. The financial courses we offer have consistently remained on our list of top performing courses accessed during the pandemic, with many students looking to level up their knowledge of financial markets and commodities and get into trading.

The financial industry is one of the many industries that falls foul to the ‘education gap’. Finance, when in relation to trading in particular, is not something taught during secondary education. In order to upskill

in this field, prospective traders need to access helpful learning materials either directly in the industry whilst gaining first-hand experience or via some form of tertiary education.

The recession this year has led to huge volatility within the stock markets. While this level of instability might not fill savers with confidence, it does make for a stock market that excites and tempts those who have been waiting on the side-lines looking for an opportunity to take the plunge into retail trading and investment.

Just a few months ago, retail-trading platforms such as Robin Hood were reporting huge increases in the number of daily average revenue trades, representing a shift as people at home decided to try their hand at day trading. This increase, in addition to the announcement from TD Ameritrade revealing that visits to its website providing trading advice nearly quadrupled since January, lead to CNBC publishing a feature advising those who wanted to try day trading to do so with care.

When it comes to trading there is always risk involved. However, if you factor in lack of knowledge and training as well, that risk quickly intensifies. Individuals looking to trade cannot remove all elements of risk from learning how to do so safely, but they can offer themselves a greater deal of protection by taking the time to learn and understand the trade. It has never been more important to make great education accessible and affordable to everyone for this very reason.

Personal trading ambitions aside, the rise in individuals wanting to learn how to trade responsibly is a benefit for the economy.

As we rebuild from the recession and see long-term, structural changes to global trade emerging, we need to lower the

aforementioned ‘education gap’ and barrier to entry for this new, refreshed generation of retail and institutional investors.

It isn’t just a rise in overall financial literacy that we are seeing. Data shows this year, the uptake in courses like MBAs has surged significantly. Many new entrants to the job market – and those already in it – are looking to understand how they can better position themselves within the job market to protect themselves from redundancies and restructures, during such a turbulent and uncertain period.

Regardless of the reasoning behind the sudden surge of interest in financial courses, one thing is certain: the implications of an increased number of retail investors on the wider financial markets is huge. While these traders may not be moving huge volumes on their own, each investor is helping to move the dial on the market, whether it is falling in their favour or not.

Prospective traders should ensure they treat their initial entry into trading with respect, caution and control, going out of their way to ensure they are prepared for the undertaking in developing practical skills and gaining the necessary expertise and undertaking accredited courses to move forwards with confidence, both professionally and personally.

James Egan, Founder and CEO, Shaw Academy Source: 1 https://www.shawacademy.com/ 2 https://www.thestandard.com.hk/breaking-news/

section/2/152861/Stock-app-Robinhood-surpasses-rivalsin-monthly-trades 3 https://www.cnbc.com/2020/09/21/many-people-turn-today-trading-in-pandemic-few-will-be-a-winners.html

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BANKING

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BANKING

BANKING SECOND WAVE 55

BUSINESS BANKING

Waves of transformation are nothing new for banks. In the past, these waves would have occurred with the onset of new corporate personalities, new technology, or new consumer behaviours.

Now, for all of us, waves have a new meaning. Looking at a second wave of coronavirus begs the question for all of us – how will life change again? And how will this impact banking, an industry which has already seen drastic transformation in the last six months?

The financial landscape has made huge shifts. Banking has seen trends in digital transformation accelerated, while bosses in the industry have an eye like never before for cutting costs and ensuring economic stability.

At a time when the future is unclear for many of us, banking will need to stay agile in adapting to the needs of customers as we face the prospect of a second wave.

So, what has the last six months taught us? And, how can banks prepare for the this second wave?

The year of the QR code The pandemic has forced organisations to accelerate digital transformations that impact how, when and where customers spend. This in turn has had a huge impact on banks as more and more customers turn to QR scanning, Apple wallet paying, or simply keeping their custom online-only.

What’s more, with banking advertising spend focusing on contactless services, a conscious move away from cash has further changed the way we interact with our banks. Already an expensive and outdated way to pay for goods and services, cash now holds a new health risk and a new aversion has accelerated a cashless trend that was coming to the fore for some time.

Navigating a need for fast, effective payment

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services that keep customers safe, earlier this year the British Retail Consortium was quick to announce an increase to the contactless payment threshold, from £30 to £45, which has led to a boom in higher value contactless payments that sees no signs of decreasing.

Embracing the QR code and going cashless has created a much more frictionless customer experience that is safer and easier for consumers and cheaper for merchants.

This impacts the banks, too. These changes in behaviour and the digital transformation of spending means banks and brands can collect and analyse spending data in a way that was not possible when spending with cash. That data can help brands deliver better services for customers that are tailored to specific spending habits, benefitting the customer, who receives offers they want and use, as well as the banks.

Looking after loyalty It’s clear that banks have been adapting to the evolving needs of customers as the pandemic continues. With digital transformation already changing the relationships customers and merchants have with their banking providers, personal engagement has been top priority for banks aiming to weather the changes to our economy and our spending.

With the country set to head into the deepest recession in a century, it will be incumbent on banks to assess how they can continue to best serve customers. One way to do this could be to embrace loyalty schemes that are tailored to customers’ spending habits, serving them with rewards that are both practical for saving money and give added engagement and loyalty benefits to the brand.

As the world of retail and hospitality remains tentatively open, such loyalty schemes are a good option for those customers who

want (and need) to start spending without hefty price tags. In this environment, it will be up to banks to ensure that their customers stay put.

Riding the second wave The first wave of coronavirus transformation had consumer engagement at its core, and this trend is not likely to go anywhere as we face the second stage of this virus.

Adapting to the needs of consumers first fundamentally changed the way that many banks behave. Banks leant into improving online experiences, turbo-charging their online offers and adapting the services they had in-store to ensure both staff and customers’ safety was put first.

A port in the storm?

What faces us with a potential second wave will be determined by how the economy reacts. As consumers and businesses continue to deal with financial hardship, there’s no doubt that banks will be the first port of call for those who are experiencing financial distress.

Banks need to consider how they can continue to support those who may need extra at this difficult time – and openness to collaboration with wider players will be key. Keeping an open mind to offers and programmes that can be utilised for the benefit of customers and businesses alike will pave the way for continued trust, loyalty and belief in our banking system in these uncertain times.

Campbell Shaw, Head of Bank Partnerships, Cardlytics.

BUSINESS BANKING

Your Good Health is our Insurance Risk Management | Claims Management | Provider Network | Analytical Services Policy Administration | Call Center | Market Research | International Medical Assistance Personalized Service | Relationship Doctors | Case Management

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TECHNOLOGY

FINANCIAL INSTITUTIONS Artificial intelligence (AI) is no longer an implausible, futuristic vision but rather a stark reality that is disrupting businesses worldwide. AI has been redefining industries and changing the ways businesses function for some time now and the banking and financial services sector is no exception.

In fact, it is regularly positioned as an essential investment to stay ahead of the competition, provide greater customer service to customers, deliver more relevant services and offerings, as well as helping transform many back-end processes.

Its potential use cases have increased further as we see more bank branches than ever having to close due to the impact of the coronavirus pandemic. With consumers growing increasingly dependent on digital banking services, the need to invest in AI to solve resulting challenges has accelerated, whether that’s to provide tailored offerings or speed up the remote onboarding process.

While AI and machine learning algorithms are often seen as a way of speeding up service delivery and helping to offer a more personalised experience, we have seen its application come under scrutiny in other industries. You only need to look at the UK’s A-Level exam grading incident

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that dominated headlines in August.

Come results day, students from certain communities were disproportionately and negatively impacted, while other students saw their results inflated. This all came as a result of the algorithm implemented by Ofqual, which was built to trove through historical data about students’ course work and predicted grades, as well as the data about the actual grade obtained at exams in previous years.

This raises the question as to what would happen if the algorithm used in this instance was applied to a financial decision. The same biases could negatively impact the way millions of consumers and businesses borrow, save and manage their money.

Therefore, we must focus on the lessons that need to be learned to prevent similar scenarios suffering the same mistakes.

AI undoubtedly offers huge opportunities for banks to enhance their services, but if they plan to utilise this technology, it is vital that they learn from the Ofqual scenario.

AI as a tool, not an algorithmic saviour While it is undeniable that AI has opened up a wealth of promising opportunities, it has also led to the emergence of a mindset that can be best described as “AI solutionism”

AI

which is the philosophy that, given enough data, machine learning algorithms can solve all of humanity’s problems.

We need to be aware of the limitations of AI and learn to set reasonable expectations with it so not to paint an unrealistic picture of its power. Instead, we must take a step back and separate the actual technological capabilities of AI from magic and remind ourselves that AI, as a tool, is not a solution for everything.

AI can be highly effective when it is given a specific focus and a question to answer.

For this reason, if businesses are going to start implementing AI, they will need to know the exact problem they are trying to solve. By identifying the question you want to solve from the start, you will be able to select the best suited options, including AI ones, and come back to this initial goal time and time again throughout the project to ensure it still aligns.

Reducing bias through data AI systems are built on sets of algorithms that “learn” by reviewing large datasets to identify patterns, on which they are able to make decisions. In essence, they are only as good as the data they feed on.

Therefore, without strong and relevant data

TECHNOLOGY

underpinning an AI model, it will never be able to produce strong and relevant results.

When it comes to designing a fair algorithm, the key is to collect a sufficient amount of data so that the algorithm can be trained to represent an entire community.

feasibility, duration, costs and adverse events, and better understand why an algorithm is making a certain decision. As this was not sufficiently done in the Ofqual case, it simply didn’t provide the right answer to the problem it was trying to solve.

While it is possible to buy datasets to speed up the process, when doing so, it is essential that the data you buy meets the criteria you require rather than simply being a large data set. For the financial services sector, this enables employees to treat customers fairly and, when combined with appropriate modelling and processes, allows them to maintain transparency and accountability in their decision-making processes to avoid legal claims or fines from regulators which can cause deep reputational damage.

Building ethical AI

You also cannot completely rely on the AI. A human eye is still needed to understand how it is working and to continue to improve it through constant monitoring, training and tuning. Companies must be careful that they don’t set up an AI model and assume the problem is solved. It will require attention so that it becomes increasingly accurate and continues to answer the question posed, even if the real-world scenario changes over time.

Walk before you run As the Ofqual issue revealed, practice is a vital step to ensuring the algorithm works as expected before putting it into a real-world scenario. By running algorithms through a pilot testing phase, companies can assess

If we are to reap the benefits of AI, we must first minimise the potential harms of algorithms by thinking about how machine learning can be meaningfully applied. This means we need to have a discussion about AI ethics and the distrust that many people have toward machine learning. Here are some key areas that businesses should consider when putting AI into place: • Usage consent: make sure that all the data you are using has been acquired with the proper consent • Diversity and representativity: AI practitioners should consider how diverse their programming teams are and whether or not they undertake relevant anti-bias and discrimination training. This will draw upon perspectives of individuals from different genders, backgrounds and faiths, which will increase the likelihood that decisions made on purchasing and operating AI solutions are inclusive and not biased • Transparency and trust building: accurate and robust record keeping is important to assure that those impacted by it know how the model works In the financial services industry, there

are many ways that AI can be leveraged.

This is increasingly the case in the document-centric identity proofing space whereby an identification document, such as a passport, is matched with a selfie of the user to confirm real and virtual identities. This will be an essential area of focus for financial services companies as they look to confirm that users are who they claim to be when the physical branch is diminishing. When analysing if a person is the same as the picture on their documentation, for example, a biased AI model can completely undermine the decision made.

Thankfully, organisations are growing more keenly aware that demographic bias in the performance of identity-proofing processes could reflect negatively on their brand, in addition to raising possible legal issues, according to the 2020 Gartner Market Guide for Identity Proofing & Affirmation.

The Gartner Market Guide predicts that by 2022 more than 95% of RFPs in this space will contain clear requirements around minimising demographic bias. As such, there is a real opportunity to leverage AI solutions to provide the best service when it comes to this function, but financial institutions must ensure that they are doing so in an ethical and accurate way by focusing on these key areas discussed.

Alix Melchy, VP of AI Jumio

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FINANCE

TRUST AUDIT PROCESS

Auditing hasn’t been far from the news agenda in recent months, with many high profile stories demonstrating the negative ramifications of external audit processes not serving their purpose. For businesses across the globe today, financial and non-financial reporting has certainly come under the microscope.

Increasing regulatory requirements and misreporting has made headlines, and it’s never been more important for businesses to ensure their reporting processes fall in line with legislative standards. If not, they risk both reputational and financial fall out.

Yet when properly executed, the audit process can be a positive tool for reaffirming business performance, compliance and investment potential.

The audit challenge Auditors are information rich and data 60

hungry. They need access to all kinds of information – from financial to procedural and beyond. In large organisations, gathering this type of intelligence is not only a costly, manual, and time-consuming task, it’s also prone to errors and duplication, and can even be exploited.

Those teams who make up an organisation’s line of defence – whether they’re business and process owners, compliance professionals, or part of the internal audit team – have historically operated in siloes, which has created redundancies and inaccuracies across companies. Not only are they responsible for gathering a plethora of information for external use, they’re also tasked with keeping a close eye on what’s going on elsewhere in the business. This is difficult to achieve with standard desktop tools, which make sharing and collaborating inefficient and opaque.

Many companies are in this institutional chaos – in which audit and reporting processes are essentially a spaghetti pot of document versions, owners, and changes, which is ultimately leaving companies exposed to errors and risk. The need for real-time access to reliable data is essential for confident business decisions.

Yet nearly 70% of organisations have made a significant decision based on inaccurate financial data.

A connected solution If organisations are going to build strong customer relationships based on a foundation of trust, this figure must change.

Those running audit processes today are therefore looking for advanced softwareas-a-service (SaaS) solutions to provide all stakeholders the same access to required functionalities. While audit providers have been around for as many as 30 years, they

FINANCE

are often built on antiquated technology and are no longer fit for purpose.

Connected platforms create a single paradigm for teams to work from – meaning that everyone is working from the same data, which ultimately cascades through versions and formats automatically, driving greater speed, visibility, and improving productivity while reducing time wastage and – critically – risk.

How Alcon streamlined its audit process Alcon – the $7bn world leader in eye care, whose 20,000 employees serve customers in over 140 countries – has reimagined its auditing processes to deliver real-time reporting from one single source of truth across the business.

After its separation from Novartis nearly 18 months ago, the organisation was tasked with building many of its processes from scratch, including auditing. The business had the option of leveraging the systems existing within its parent company, but leaders felt the parent company was reliant on many older, legacy systems. Many of those applications required ‘workarounds’.

Teams were taking data and building

bespoke Excel spreadsheets. Work was being duplicated. Data sprawl was occurring and there was no single source of truth across the organisation.

Alcon needed a fresh start. As part of a broader move towards cloud-native SaaS deployments, Alcon opted to deploy a dedicated software-as-a-service connected platform to streamline its audit process.

Taking all of the data, reports and information and building it into the platform enabled Alcon to standardise reporting globally. For an organisation of its size – with contributors across the globe – the ability to bring everything into one place was critical. What was once time-consuming, potentially error-prone, human-created SharePoint documents, is now a streamlined, automated, trusted process: a modernised, tech-enabled audit process.

Evolving standards and regulatory requirements have increased pressure on SOX, audit, and ERM teams to find efficiencies, lower the cost of compliance, and coordinate risk strategies. The ability to publish accurate and timely reports will help organisations continue to build credibility with customers,

as well as streamlining their own processes – saving time and resources.

Financial – as well as non-financial – reporting is a topic high on many boardroom agendas, with auditing very much under consideration. By deploying a truly connected platform, that ensures you’re making reporting decisions based on a single source of truth, you can have real confidence in the robustness of your reporting, ensuring both accuracy and compliance with industry regulations.

Ernest Anunciacion, Director of Product, Workiva Source: 1 https://www.blackline.com/blog/finance-performancemanagement/mistrust-in-the-numbers/

2 https://www.alcon.com/?_

ga=2.143910197.1443962223.16000905142048546434.1600090514 3 https://www.novartis.com/news/media-releases/novartisplans-alcon-spin-april-9-2019

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INVESTMENT

SWITCHING THE TAX EVIDENCE BASE MEANS MORE DATA INTELLIGENCE THAN EVER

As more tax regimes explore the case for digitisation, there is a growing shift in where the power of evidence is kept between the taxman and businesses. Taken at face value, this is a fundamental shift in tax record-keeping and evidence and takes a huge burden off the average business.

But, in actual fact, their results need to be more iron-clad than ever.

In the likes of Chile and other countries in Latin America, where continuous transaction controls (CTCs) have been in place for decades and reporting happens in real-time, rather than periodically, the shift has already occurred. European countries that have more recent CTC regimes, such as Italy and Greece, are slated to follow suit very soon. This means that the government builds, piece-by-piece, a company’s tax return through your authenticated data that it now possesses and can process without any dependency on the taxpayer.

In theory, this is great for the taxpayer, 62

with periodic tax returns now becoming a thing of the past.

But no system is perfect, especially when data from suppliers and customers needs to be relied on for accurate tax information. The dynamic nature of business is reflected in taxpayers’ systems, which are ever-changing and notoriously complex. If data is wrongly submitted to the tax authorities, or a piece of information is interpreted differently by them when calculating a company’s indirect tax position, then companies need to be able to challenge what has been calculated from CTC regimes. In other words, fortifying your evidence base and ensuring strong reconciliation capabilities will become critical business priorities.

Reporting revolution There is a clear opportunity for countries

to reap back lost revenue from incorrect tax returns with technology; an opportunity many governments have seized over the last twenty years or so. A growing number of tax authorities have rolled out legislation intended to gain greater control over companies’ indirect tax processes, positioning the point of audit or review closer to sales and purchase transactions, with the aim of reducing fraud and closing national VAT gaps. As a result digital CTCs, such as mandatory electronic invoicing and real-time reporting, have been rolled out to streamline previously clumsy returns processes.

How far specific governments enforce these controls on businesses is subject to political inclination, but a great success story is undoubtedly Latin America. The oldest and most popular model, countries in this region were among the first to roll out digital controls to supplement and eventually replace VAT returns. Leaders

INVESTMENT

devised regulations to make the use of electronic invoicing mandatory in many countries throughout the region. When these tax administrations discovered just how easily modern technology could drive radical improvement in the enforcement of indirect tax law, the CTC model became the preferred option. Unsurprising, considering the enormous benefits it brings to tax administrations.

Europe’s journey to digital Europe has had many legislative hurdles to clear before reaching its current state of transformation. In recent years we have seen tentative steps towards CTCs in countries such as Poland, Hungary, iterations of real-time reporting in Spain and most notably Italy, where an e-invoice clearance model has been successfully deployed. In addition to tightening fiscal controls, his gives governments visibility over broader economic health of their countries which cannot be underestimated, especially during times of crisis.

Data intelligence is the key to solving economic pain-points, which differ from country to country. With VAT data, governments are able to achieve a much more detailed understanding of the health of their specific economies. CTCs put tax administrations in a position of greater strength, enabling them to collect high-quality transaction

data in real-time instead of depending on a taxpayer’s periodic reports – and then having to audit them onsite to review transaction evidence. Needless to say, manual submissions are often rife with inaccuracies and human error. By rolling out digital controls and applying legislation to encourage their adoption, governments in countries like Italy are reaping the rewards of a real-time understanding of business activity.

The vast improvement in revenue collection and economic transparency since the introduction of CTCs has inspired global tax authorities to review their current operations and consider the benefits of digitising their tax controls. The only way to implement them, though, is with clean and organised data, which can be difficult to manage without the right tools.

On a business level, this means strengthening current levels of data accuracy and completeness, as well as keeping strong digital records of activity is now essential to comply with the ever-changing complex regulation landscape.

Strategic automation In practice, implementing such a monumental digital shift is no mean feat for all organisations involved in the change.

Teething problems around compliance and reporting have inevitably arisen over recent years, as tax authorities can either gently roll out mandates to ease organisations into the schemes or – which is more common – go for a more assertive approach, depending on politics.

For real change to happen, there must be open dialogue between governments, businesses and their suppliers.

The diverse regulation patchwork means businesses must ensure they are using automated systems that keep accurate note of invoice submissions’ specific formats, for example, to avoid transactions and supply chains getting stuck because CTC systems won’t approve their onward processing. Further, keeping an organised and clean digital archive is the only way to safeguard against compliance inquiries and disputes, so it makes sense to work with a system that allows for strong digital evidence. The journey from the slow-moving process of VAT compliance based on periodic reporting to the intrusive and fast-moving transactional world of CTCs is fraught with obstacles. Automating your current VAT compliance function is an important first step to mitigate the risks of this journey. Automation helps you create better controls and gives you a more accurate understanding from the ground-up of where your data falls short of meeting granular invoicing requirements. Finally, by selecting a vendor that understands the fundamental differences between the old and the new world of VAT compliance, you can avoid the pitfalls of treating advanced digital reporting as similar to mandatory electronic invoicing – these are two very different business processes that require different technology considerations.

Firms are in a position to use technology to organise data to their advantage and turn manual administrative labour into powerful insight tools. Used wisely, digital recordkeeping and reporting can be the driver for real strategic success – a business priority as we move into economic recovery.

Christiaan van der Valk, VP of Strategy Sovos 63

FINANCE

THE ARTIFICIAL INTELLIGENCE OPPORTUNITY IN THE GLOBAL FINANCIAL SERVICES SECTOR When most of us think of AI, we imagine slick, intuitive designs, underpinned by quick, efficient systems all handed to you on a personalised plate. What many of us don’t necessarily think of is hard, cold numbers. Odd really when data is the key foundation underpinning AI. Artificial intelligence is all about data or numbers, input into systems that are then analysed and summarised to provide a game-changing customer experience across all industries but particularly in finance.

Outside of blockchain, artificial intelligence has long been considered the holy grail for financial services. As an industry steeped in data, the pairing is already perfect, and the benefits are unmistakeable. Whether finance brands want to provide a top-level customer service chatbot or, on a more 64

granular level, deliver financial services in line with ever increasing regulatory guidance, there isn’t much that AI can’t do to progress the finance industry.

Making AI a Success in Financial Services Paradoxically, the financial services sector as a whole is being left behind with consumercentric industries across the globe pulling ahead to expose a chasm between what customers want and the experience that they receive. At a time when the customer experience is heralded as the sacred vessel through which all things are possible for businesses, making a success of AI in finance is considered crucial.

The modern financial brands that are doing well today have one main thing in common – they are dominated by technology.

Challenger banks and contemporary financial businesses are disrupting the industry’s standards and setting the pace for AI and data analytics. However, in their swift route to entry and with consistent software upgrades, there are still some nuanced implementations to bear in mind.

Near the top of that list is having an accurate understanding and knowledge of the data being used. There are many potential downfalls when inputting data and we have all heard of the horror stories around biometric profiling and the biases that can become apparent when digitising personal data. The same goes for consumer finances, so scrupulously computerising numbers will be fundamental to testing and training software to learn the value from data and unlock its true prophetic potential.

FINANCE

systems in finance have been developed over the course of decades and changing existing systems which are currently delivering value is a bigger, riskier job – in a highly risk-averse industry – than starting from scratch.

The Change is Coming One option for operating with legacy systems in a digitalised, intelligent context is to develop an intelligent mesh, or Data Fabric, to bring together the richness of historical data to the user-friendly interface found in modern systems. The smart data layer can provide a bridge between existing and new infrastructure which has been designed to deliver the speed-to-value which today’s financial services provider needs.

Essentially, significant architecture changes will expand the possibilities for this sector.

The move to cloud computing, with its elastic response to demand that can handle the intensive computation that AI training requires without the capital expense involved in building that capacity in-house, is a key part of this. While in many ways financial services is a sector already at the leading edge of AI, the availability of architecture which is designed from the ground up for AI-driven operations means that much more change is on the horizon.

With that said, before we get to understand the data we must first get the infrastructure right. The lack of architecture designed from the ground up for AI-driven operations means that financial services may struggle to incorporate AI into their operations at all. Legacy systems are notoriously difficult and expensive to upgrade. At a strategic level, banks are deciding whether to deploy a “rip and replace” or using an integrated approach to connect siloed systems.

Nonetheless ultimately, at the core of any successful AI adoption are the right set of technology skills, well-defined data management and high-performance IT infrastructures.

The Logistics of Legacy Perhaps the biggest challenge for financial

services is that AI is an architectural innovation as well as a component innovation – which is to say, its requirements extend beyond new technology and ideas, to include joining up old technology and ideas in a different way.

Competent AI requires massive amounts of data: this is how it learns how things work, and how it predicts the way those ‘things’ will behave in the future. For many businesses, introducing the systems to manage this data will mean implementing entirely new computing capacity, alongside innovations like ‘internet of things’ monitoring, to gather the information required.

However, in financial services where information has always been the heart of business, there is the more complex problem of transforming existing systems to communicate effectively with AI. Legacy

There aren’t many out there who can predict AI’s true potential but what we do know, is that its ability to enhance productivity and efficiency through automation are currently unmatched but only if we can get the data fabric right.

Steven Rackham, Senior Solutions Engineering - Manager at NetApp Source: 1 https://www.oxfordreference.com/view/10.1093/oi/ authority.20110803095422277

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BUSINESS

Multi-banking trade finance technology will transform for treasuries

The pressures on corporate treasuries engaged in trade are unrelenting. As they cope with the continuing disruption of the pandemic, they still rely predominantly on manual processes to manage ever-more complex flows of information from multiple systems.

While coping with day-to-day challenges of cross-border trade finance and maximising working capital, they are also expected to drive change and provide strategic insight to their senior decision-makers.

These pressures were evident before the coronavirus outbreak last December when an HSBC survey found many corporate treasurers felt ill-equipped to meet the demands placed on them.

It was no surprise then that two-thirds of treasurers in the survey were planning changes to the technology they used as part of transformation programmes to increase efficiency and bring greater visibility to their departmental operations.

finance solutions.

Not least because the constant problem of fraud and forgery in relation to paper documents has led some banks to withdraw from involvement in commodity trade finance. The allegations of prolonged major fraud against the oil trader Hin Leong in Singapore are an object lesson in this, sending tremors through the trade finance world. Court documents reportedly allege the fraudulent use of 58 import letters of credit that were not supported by any underlying transaction. Forged bank statements, bills of lading, sales contracts and invoices are also allegedly involved in a substantial fraud designed to cover losses and give a false impression of liquidity.

The case has not just exposed the vulnerability of paper trade documentation to forgery – it has also prompted some well-known European long-term commodity finance banks to withdraw or review their activities in this field. None of these developments facilitates everyday operations for corporate treasuries still using paper in trade finance.

Continued reliance on manual methods and paper documents is now very ill-advised

Digitisation reduces the risk of fraud

As we move through the pandemic, pressure on cash flow and working capital remain potent factors for importers and exporters alike. Many treasurers know that continuing to use manual methods to manage credit lines, and important trade finance instruments such as letters of credit (LCs) or guarantees is hard to justify in an age of digitisation and multi-banking trade

Confronted by these problems, treasurers need to think hard about digitising their trade finance workflows to reduce the risks of fraud. Paper documents can be forged while in theory being couriered around the globe. Once a document is digitised, however, fraud and forgery become extremely difficult because of encryption and audit trails. The electronic document

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remains completely visible all the time, but only to those engaged in the transaction, with the legitimate holder the sole party able to amend it.

Increasing the efficiency of each trade transaction through digital presentation Digitisation substantially reduces the chances of fraud, but it also transforms how treasuries manage credit lines, letters of credit and guarantees, vastly increasing the speed and efficiency of transactions. It also maintains relationships with preferred banks.

LCs are notoriously complex instruments requiring close attention to detail and strict compliance with the rules governing their use. In a digitised workflow, however, automation takes care of the data-uploading for LCs, while transfer between parties is at the click of a mouse across secure digital networks. Compliance-checking can also be automated to reduce the administrative burden on treasuries and to increase accuracy.

These advantages are important because the use of paper under LCs can jeopardise a transaction at many potential break-points.

Documents must be presented physically, often to a prescribed location. Yet being time-limited, LCs (and bank guarantees) often expire before they are used, or their presentation periods are found to have been exceeded. Prevention of these problems requires constant supervision and many hours of work. When lines expire, new and

BUSINESS

potentially more expensive credit must be negotiated, while failure to present on time threatens transactions, leads to substantial extra costs, delays in releasing cargo and ill-feeling between counterparties.

A single, easy-to-use platform to consolidate trade finance workflows The most effective form of digitisation for corporate treasuries coping with all these challenges, is through a multi-bank trade finance platform which will slash the time involved in supervising credit lines, LCs and guarantees. An exporter may have thousands of LCs and guarantees with dozens of different banks. Optimising their use still requires laborious logging in and out of banking portals. Finding a single LC or guarantee relating to a transaction can be very difficult.

If treasuries implement multi-banking trade finance solutions, they will eliminate the need to toggle between different bank portals. They gain quick and easy access to all their banks, along with far greater visibility and control of all their credit lines and individual LCs. From a single platform they can manage and edit all their trade finance documentation and electronic presentations, as well as open account transactions and electronic bills of lading. All tracking and reporting is accomplished with a few mouse-clicks, while communications with banks remain secure. This, in particular, is a significant advantage when remote working is increasingly common all around the globe.

reach for greater efficiency and visibility in the management and optimisation of LCs and guarantees. Implementation of multi-banking trade finance solutions has become the easiest and most obvious method of achieving that important aim.

As the trade world looks to recover from the pandemic and to future-proof itself through digitisation, the pressures on treasuries intensify. It means treasuries too must

Source: 1 https://www.gbm.hsbc.com/insights/global-liquidity-and-

Andrew Raymond, CEO, Bolero International cash-management/corporate-treasury-research-report#2executive-summary

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LIST OF WINNERS

2020

AWARDS WINNERS LIST WINNERS

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Aafiya TPA Services

Best Third Party Administrator – Healthcare UAE 2020

Ahli United Bank B.S.C.,

Best Retail Bank Bahrain 2020

Alkhabeer Capital

Best Private Equity Firm Saudi Arabia 2020

Arca Fondi

Best Digital Wealth Management Italy 2020

AsiaPay

Best Digital Payment Solution Provider Singapore 2020

Banco Industrial, S.A.

Best Retail Bank Guatemala 2020

Banco Industrial, S.A.

Best Mobile Banking Application Guatemala 2020

Bank Nizwa

Best Islamic Banking CEO Of The Year Oman 2020 Khalid Kayed

Bank Nizwa

Best Islamic Banking Services Oman 2020

Bao Viet Securities

Best Corporate Governance Company Vietnam 2020

Being She

Most Influential Women of the Year UAE 2020

BlackStone Futures (pty) ltd

Most Innovative Forex Broker South Africa 2020

Capital Trust S.A.

Best M&A Advisory Chile 2020

Cellcard (CamGSM Co Ltd)

Fastest Mobile Network Company Cambodia 2020

Cellcard (CamGSM Co Ltd)

Best Mobile and Digital Lifestyle Provider Cambodia 2020

China Asset Management Company

Best Asset Management Company China 2020

CI Asset Management

Best Asset Management Company Egypt 2020​

Commercial Bank of Ceylon PLC

Best Digital Bank Sri Lanka 2020

Commercial Merchant Credit (Pvt)Ltd.

Fastest Growing Finance Service Company Sri Lanka 2020

COSCO SHIPPING Ports Ltd

Best Port Operator Hong Kong 2020

COSCO SHIPPING Ports Ltd

Best Investor Relations Company Hong Kong 2020

ČSOB Private Banking

Best Private Bank Czech Republic 2020

Fast Cover Travel Insurance

Best Customer Centric Travel Insurance Company Australia 2020

Fast Cover Travel Insurance

Best Comprehensive Travel Insurance Company Australia 2020

Fosun Hani Securities Limited

Fastest Growing Financial Institution Hong Kong 2020

Fosun International Limited

Best Innovation-Driven Consumer Group Hong Kong 2020

Taipei Fubon Bank

Most Customer Centric Bank Taiwan 2020

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LIST OF WINNERS

WINNERS

AWARD TITLE

Taipei Fubon Bank

Best Digital Wealth Management Bank Taiwan 2020

Taipei Fubon Bank

Best Investment Bank Taiwan 2020

FUTURE FX

Best Forex Customer Service Provider UAE 2020

FXPRIMUS

Best Forex Broker South East Asia 2020

Genero Capital LLC

Best SME Financing Advisor MENA 2020

Greenstone Equity Partners

Best Fund Management Company UAE 2020

HFTrading

Most Secured Trading Platform Australia 2020

ING Maggie

Best Retail Bank CZECH REPUBLIC 2020

IS Bank

Best API Provider Bank Turkey 2020

JFD Group Ltd

Best Retail Brokerage Services Western Europe 2020

MAGIC FINSERV

Most Innovative AI-ML Technology service provider for Asset Management USA 2020

Mashreq

Best Transactional Bank UAE 2020

Metropole Property Strategists

Best Property Consultants Australia 2020

Mitrade

Most Innovative Online Broker Australia 2020

MultiBank Group

Best FX Trading Platform MENA 2020

Nan Shan Life Insurance Co. Ltd.

Best Life Insurance Company Taiwan 2020

National Development Bank PLC

Best Domestic Bank Sri Lanka 2020

National Development Bank PLC

Best Retail Bank Sri Lanka 2020

National Development Bank PLC

Best Corporate Bank Sri Lanka 2020

National Development Bank PLC

Best Bank For Empowering Women Customers Sri Lanka 2020

National Development Bank PLC

Best Bank For Marketing Campaign (NDB Araliya) Sri Lanka 2020

National Development Bank PLC

Best Bank for Project and Infrastructure Financing Sri Lanka 2020

National Development Bank PLC

Best Bank For Digital Financial Channels Sri Lanka 2020

ndgit GmbH

Fastest Growing API Banking Platform Provider Germany 2020

OINVEST

Most Innovative Online Trading Broker SouthEast Asia 2020

PacĂ­fico Seguros

Best Insurance Company Peru 2020

People’s Bank

Best Commercial Bank Sri Lanka 2020

Petsy Pty Ltd

Best Pet Insurance Company Australia 2020

Profile Software

Best Wealth Management Technology Vendor UK 2020

PT. Asuransi Allianz Life Indonesia

Best Sharia Compliant Insurance Solutions Provider Indonesia 2020

PVcom bank

Best Trade Finance Bank Vietnam 2020

PVcom bank

Best Credit Card (PVcomBank Mastercard) Vietnam 2020

Pyramedia

Best Media And Marketing Consultancy UAE 2020

Q8 Trade

Most Competent Trading Professionals MENA 2020

riyad bank

Best Corporate Bank KSA 2020

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LIST OF WINNERS

WINNERS

AWARD TITLE

ROInvesting

Most Innovative Trading Platform Europe 2020

SeABank

Most Innovative Mobile Banking Product (SeAMobile) Vietnam 2020

Shorooq Partners

Fastest Growing Venture Capitalist Company UAE 2020

Standard Chartered Bank

Most Innovative Transaction Banking Oman 2020

The Jubilee Insurance Company Of Tanzania LTD

Best Insurance Company Tanzania 2020

TradeFW

Most Popular Trade Service Provider Europe 2020

Tradimo Interactive

Best Financial Education Technology Company Denmark 2020

uab bank Limited

Best Banking CEO Myanmar 2020- Christopher Loh

uab bank Limited

Best Corporate Governance Bank Myanmar 2020

uab bank Limited

Best Bank Myanmar 2020

uab bank Limited

Best Corporate Social Responsibility Myanmar 2020

uab bank Limited

Best Banking Employer Myanmar 2020

Vietcombank Fund Management

Best Fund Management Company Vietnam 2020

Wema Bank

Best Retail Bank Nigeria 2020

Wema Bank

Most Innovative Digital Bank Nigeria 2020

101investing

Fastest Growing CFD Broker Europe 2020

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