FinTech Magazine - May 2020

Disrupting financial services through innovation and personalisation www.fintechmagazine.com

MAY 2020

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FOREWORD

W

elcome to the May edition of FinTech magazine.

Personalisation and the drive to provide a more customer-centric banking platform underpinned by innovative technologies is a trend that’s driving financial services development.

Our cover company this month, Deem Finance, epitomises this ethos.

In less than a year, the business has disrupted the sector through its absolute dedication to innovative, best-in-breed technologies and services that are built with the customer at their core. While many brands may state the importance of the customer to their business, Deem is resolute in its mission: to be disruptive, to combine vision and innovation, and to be more than simply ‘another challenger bank’.

We speak with CEO Chris de Bruin, together with several members of

Deem’s leadership team. de Bruin tells us that, to achieve this vision means that the company “will never settle for ‘good enough’”. Read more on page 96.

Building on this theme, Huawei’s Bill Genovese discusses the three core drivers disrupting the industry and creating the next-generation financial services model: technology, business model evolution and the sharing economy. The traditional sector as we know it, he tells us, is shifting from one that is no longer about developing products, but creating a lifestyle.

Our Top 10 this month looks at the top fintech innovation labs - one way in which incumbents and other institutions are adapting to those changes outlined by Genovese.

Enjoy this issue.

Matt High matthew.high@bizclikmedia.com w w w.f i nte c hma ga z i n e. com

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EDITOR-IN-CHIEF

Matt High CREATIVE DIRECTOR

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CONTENTS

10 24

40 A NEW DIGITAL AGE FOR BANKING  ECOSYSTEMS

62 64 54

78

96

122

Deem Finance

FINOLAB INC

148 Raiffeisen Bank

136 Servus Credit Union

160 Rogers Capital

174

100

Solidarity Saudi Takaful Company

184 Bleakley Financial Group

200 Defence Health Limited

212 100

Resolution Insurance

10

Helping clients navigate risks in uncertain times WRITTEN BY

WILL GIRLING PRODUCED BY

KRISTOFER PALMER

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11

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

MARSH

Douglas Ure, President Director and CEO of Marsh Indonesia, shares his thoughts on growing a business and why putting clients and colleagues at the heart of everything is paramount

E

stablishing its national presence in 1983, Marsh Indonesia is part of Marsh & McLennan Companies, a global pro-

fessional services firm specialising in insurance 12

brokering and risk management solutions. The company distinguishes itself by its commitment to an always client-centric mode of operation and a breadth of expertise that focuses on the client’s specific industry for a higher quality of advice and service. Following a merger with Jardine Lloyd Thompson (JLT) Indonesia in early February 2020, Marsh now employs over 200 staff with more than 30 certified practitioners ready to dispense advice and create bespoke insurance solutions.

To this end, the company is able to offer a suite of varied and interconnected services to satisfy the needs of its clients, including insurance claims management, valuation services, specialised risk management assessments for core industries and more.

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13

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MARSH

“ Marsh has global strength, a geographical footprint and it covers so many different aspects of the sector” — Douglas Ure, President Director and CEO, Marsh Indonesia 14

The consummate professionalism and depth of knowledge are what first struck Douglas Ure, President Director and CEO, when he joined the company 13 years ago. “Marsh offers something different to a large number of other organisations,” Ure explains.

“It has global strength, a geographical footprint and it covers so many different areas of expertise. If you look at the broader Marsh & McLennan Companies, I could not envisage many companies that would match the broad range of expertise across the business.” Starting as a managing consultant within Marsh’s consulting practice based in London, he took on a wider Asia regional role based in Singapore, before taking up his current role as CEO of Indonesia, based in Jakarta. Coming from a background in risk management at Accenture and Primary Group, Ure states that this experience has been invaluable in shaping his approach to the role.

“We put our clients at the heart of what we do and that means helping them manage risks through these uncertain times. There’s more risk facing our clients today than ever before: cyber

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Marsh Captive Solutions CLICK TO WATCH

|

2:32

15 threats, political uncertainty, terror-

currently looking to set up our digital

ism, war and pandemics,” he says.

team by attracting a lot of people into

Marsh’s aim, then, is to redress the bal-

the Marsh organisations globally who

ance by serving its clients by helping

don’t necessarily have any insurance

them manage those uncertainties and

or risk management experience,” he

positioning them for growth.

says. “Then, the collaboration with

Achieving that goal necessitates

our other teams will ensure that we

a company which knows how to

provide our clients with risk and

assemble a great team and drive col-

insurance solutions in a much more

laboration at all levels of the business.

efficient way.” However, this is a depth

Recently, Ure points out, this meant

of collaboration which doesn’t simply

thinking outside the box in terms of its

rest at the colleague-to-colleague

digital transformation strategy: hiring

level; Marsh also engages its partner

tech-savvy people to augment the

companies to join its mission to put

company’s field of expertise. “We’re

clients first, understand the problems w w w.f i nte c hma ga z i n e. com

MARSH

16

they face and put forward workable

knowledge to be able to quantify risk,

solutions on the best way to proceed.

the understanding of other common

In combination with financial strength,

associated risks and communicating

stability and overall trustworthiness,

a more effective way to manage them.

this cultural fit is the most invaluable

Ure highlights this as something that

aspect of a partner’s business to Marsh.

the company feels very strongly about.

Coinciding with the rise of the

“Marsh is practicing what it preaches

global digital revolution has been the

by making sure that its operations

proliferation of cyber threats and the

are digitally secured by the right tools

need for greater online security. As

and with the proper infrastructure in

an expert in risk management, Marsh

place to protect both client and col-

has been more than up to the task:

league data.� Despite best intentions,

providing the right advice to help

however, the fast-paced nature of the

clients manage specific risks, the

tech industry means that new threats

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1983

are always appearing just as the old ones are resolved. This means Marsh

Year founded

has to stay agile and be mindful of innovative new developments in order

35,000+

Number of employees (Globally)

200+

to guarantee best-in-class service.

“It’s very difficult to completely remove risk,” Ure says. “The idea is that we’re trying to minimise the increase in risk and manage it effectively.”

Cybersecurity is necessarily a primary concern of companies in the

Number of employees (Indonesia)

insurance sector, owing to the voluminous quantities of data which must be gathered in order to operate

E XE CU T I VE PRO FI LE

Douglas Ure Douglas Ure is the President Director and Chief Executive Officer of Marsh Indonesia, with over 20 years of experience working in insurance and risk management. He began his career in in the manufacturing sector where he was responsible for corporate risk management and insurance before moving into the consulting industry. Ure joined Marsh in 2007, and has been involved in various roles covering consulting, analytics and claims across UK, Europe, and Asia. Ure moved to Asia in 2014 to be based in Singapore, before moving to Jakarta, Indonesia in 2019. w w w.f i nte c hma ga z i n e. com

17

Insurance that sees the heart in everything

At MSIG, you are at the heart of all we do.

MSIG is about going above and beyond. We do this by doing and being more. We actively strive to exceed the expectations of our customers and clients. We aim to be an active partner and advisor, to give you the support you need when you need it. And we do this to make sure you can be confident in our promise to protect your needs. msig.co.id Home | Motor | Personal Accident | Fire | Cargo | Travel | Engineering

“ We put our clients at the heart of what we do and that means helping them manage risks through these uncertain times” — Douglas Ure, President Director and CEO, Marsh Indonesia

advice,” Ure explains. Bringing together the various strands of a digital transformation could prove challenging, particularly in the Asia Pacific market which has some disparity between the needs of emerging and developed sectors. However, the company understands that, geographically, everything doesn’t move at the same pace and that different countries or regions have specific requirements.

Unfortunately, the event which has framed remote working as a key work trend globally, COVID-19

effectively. Marsh is no different and

(coronavirus), is still around and is

already invests significant resources

likely to shape the fortunes of whole

into its analytical capabilities, helping

industries, let alone individual com-

it assess data to help clients make

panies, for at least the next year.

informed decisions. Developed tech-

However, Ure believes that Marsh’s

niques include its Marsh Analytics

decades of experience in the field

Platform (MAP), Global Loss Data

of risk management has it perfectly

Library (LDL) and its Economic Cost

poised to support its clients and col-

of Risk (ECOR) measure. “Making

leagues as they navigate this very

sure that the data collected is help-

uncertain time. “COVID-19 is going to

ful and meaningful for our clients is

have a profound effect on the global

paramount. As the more information

economy, so putting our colleagues

gets collected, the more we’ll need to

at the heart of the decisions we take

ensure that it’s accurate, hasn’t been

and making sure that they are feeling

duplicated and is providing a correct

secure is critical,” he explains. “There

analysis in order to deliver reliable

might be fewer face-to-face meetings w w w.f i nte c hma ga z i n e. com

19

MARSH

20

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“ The Marsh global strategy comprises four critical pillars: aligned clients, colleagues, communities and growth” — Douglas Ure, President Director and CEO, Marsh Indonesia 21 and certain opportunities that we thought were going to happen in 2020 might be delayed to 2021, or might never happen at all.” However, despite this, Marsh’s overall plan and vision for the rest of the year remains relatively unchanged: continuing to grow as an organisation and making sure that clients receive a service that’s superior. Ure introduced a flexible working policy for Indonesia in 2019, providing employees much more flexibility in how and where they work.

This included moving to a smart office and having all colleagues equipped with a laptop, still not commonplace w w w.f i nte c hma ga z i n e. com

MARSH

23 in Indonesia. Marsh has been a pio-

business with Marsh,” he states. “The

neer of remote working for its staff

Marsh global strategy comprises four

in Indonesia and has been utilising

critical pillars: aligned clients, col-

conference call facilities across its

leagues, communities and growth. If

operations for a number of years. As

we do those things right, provide lead-

such, the current disruption caused

ing advice using the best sources of

by COVID-19 has not yet presented

information and use the best people

much disruption in business continuity.

to put clients at the heart of every-

When asked how Marsh will con-

thing we do, then we’ve probably got

tinue to ensure a quality service and

a better chance to build long-term,

guarantee client retention, Ure is can-

stable relationships.”

did about the threat of complacency for such a large and well-established enterprise. “I don’t think we have any given right to automatically assume that clients are going to renew their w w w.f i nte c hma ga z i n e. com

FINTECH

24

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NEXT GENERATION FINANCIAL SERVICES: TECHNOLOGY AND DISRUPTION WRITTEN BY

MATT HIGH

w w w.f in tech ma ga zi n e . c o m

FINTECH

Huawei’s Bill Genovese on the technologies, business models and innovators disrupting banking and why ‘banking as a lifestyle’ is the new norm

T

he digital evolution of the financial services sector is unceasing. The ‘traditional’ banking

business model has fundamentally changed, driven by new and innovative technologies, the entry to market of digitally-led and diverse businesses 26

better suited to meeting evolving customer expectations, and the broader rise of the sharing economy spearheaded by the likes of Uber and Alibaba. This is the next generation

Financial Markets, knows the industry

landscape for financial services – an

like few others. He has more than 25

environment in which banking and

years’ experience in providing profes-

finance is no longer about manufactur-

sional solutions to the sector, including

ing and delivering products, but rather,

consulting, designing and delivering

about building a lifestyle.

financial, analytical and systems

Such change doesn’t happen in

management applications and their

isolation. Indeed, says Huawei’s Bill

underlying infrastructure. At Huawei

Genovese, those three key forces

he leads the corporation’s financial

mentioned above are changing the

services industry strategy, represents

future of society more broadly.

the financial markets industry as the

Genovese, Huawei’s Vice President

leader in a cross-Huawei Blockchain

Corporate Strategy – Banking &

technology working group, and works

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27

on strategies for adoption and conver-

like payments, credit and lending, or

gence of emerging technologies. Prior

wealth management, as well as how the

to Huawei, he is an alumni of both

large majority of us now interact with dig-

IBM and KPMG, and Wells Fargo

ital technologies, and our expectations

(Wachovia Bank).

of those technologies.

“The industry has been absolutely

“Banking, or financial services, has

disrupted,” he explains. “That transition

in my view already moved beyond the

from a bricks-and-mortar financial ser-

omni-channel model typified by plug and

vices proposition, where banking was

play open banking APIs, multiple financial

traditionally delivered as a product is

institution relationships and channel

gone. And what’s really fuelled that is the

agnostic access, to a multi-platform or

introduction of other industry verticals

ubiquitous banking model, in which tech-

into the financial space over the years,

nology-led experiences offered by large w w w.f in tech ma ga zi n e . c o m

From Inspiration

to Innovation

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

HKU FinTech – Next Generation Digital Financial Services (Part 1) CLICK TO WATCH

|

7:15

29

“ None of this will happen without cloud; cloud technology is the prerequisite for all of these next generation financial services" Bill Genovese, Vice President Corporate Strategy – Banking & Financial Markets, Huawei

platform providers, BigTechs, fintechs and so on, are driving change,” Genovese says. “There are several significant threats to what would typically be considered traditional banking models, including payment providers like PayPal diversifying their product propositions, digital commerce platforms and tech giants like Google and Apple.”

NEXT-GEN FINANCE: THREE DRIVERS OF CHANGE Elaborating on those three core areas of disruption, Genovese states that technology is changing exponentially w w w.f in tech ma ga zi n e . c o m

FINTECH

at every level, fuelling rapid transforma-

more in line with consumer expecta-

tion. He points to several key innova-

tions and experiences.

tions that are driving next-generation

30

“In the past, institutions have made

financial services, including IoT, AI,

the mistake of not combining those

Blockchain, robotic process automa-

technologies, but investing in them in

tion, advanced analytics and smart

stovepipes,” he explains. “Three that

contracts. However, it is the conver-

come to mind are AI, IoT and block-

gence of these technologies that will

chain, which you can’t really evolve on

be a key differentiator of new financial

a singular basis. So, for AI you have to

business models. The leaders using

have both structured and unstructured

these, says Genovese, aren’t doing so

data and a strong understanding of

in isolation, but rather they are finding

customer analytics, which these new

intelligent ways of combining them

business models in the market have,

to deliver a next-generation financial

and more effectively leverage and

services model faster, cheaper and

use in a far greater capacity than

HKU FinTech – Next Generation Digital Financial Services (Part 2) CLICK TO WATCH

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7:02

“ PayPal is probably the best example of a fintech model that we recognise, and having started out with payments it’s now moving into credit and lending, and other services" ­ Bill Genovese, Vice President Corporate Strategy – Banking & Financial Markets, Huawei

incumbents. Effective AI also draws on advanced biometrics and cybersecurity, and technologies like digital wallets are bound to our devices – so you’re storing assets digitally rather than in the traditional bank. The key to everything though is open APIs and secure data exchange or interchange between different platforms. None of this will happen without cloud; cloud technology is the prerequisite for all of these next generation financial services.”

Advances in technology are fuelling greater customer expectations from those services – not just financial – that

Paypal©

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31

FINTECH

“ Technology–led experiences offered by large platform providers, BigTechs, fintechs and so on are driving change" raised expectations, we want to deal Bill Genovese, Vice President Corporate Strategy – Banking & Financial Markets, Huawei

with our finances: you may need a payday loan, which you can get on your smartphone now, or you deal specifically with robo-advisors through your device,

we use. The rise of the sharing econ-

or manage your investments etc. It’s

omy and the provision of peer-to-peer

a really different proposition.”

services is bypassing the traditional

32

banking model. Companies like Uber,

THE NEW FINANCIAL BUSINESS MODELS

Alibaba/Ant Financial, Tencent/

In his latest work about the next genera-

WeChat and Amazon, says Genovese

tion of financial services, Genovese rec-

are all examples of large platform pro-

ognises six prevalent business models

viders that are enabling and fuelling

that are either already present in the

these expectations through the appli-

space, or are moving into it:

cation of technologies like AI, payments and blockchain, IoT and Big Data.

“Examples like this demonstrate the new normal that is having access to these digital financial services via your

● Leading digital commerce platforms,

such as Amazon and Alibaba ● Leading consumer technology com-

panies, such as Apple and Google ● FinTechs, such as PayPal,

smartphone 24/7,” he adds. “And along-

Betterment, SoFi, Airwallex

side this you have players moving into

and others

the traditional financial services land-

● Digital, virtual, challenger and inter-

scape – the first thing that left the bank

net banks, such as WeBank, N26,

was payments, for example, and now

Revolut, and Monzo

we’re seeing the same thing with credit

● Telcos and players from other indus-

and lending, or microfinance. It feeds

tries, such as PingAn, OrangeBank,

perfectly our modern consumption

and Gazprombank

needs and the way that, through those M AY 2 0 2 0

● Incumbents (or “Fincumbents”)

Huawei©

5G TECHNOLOGY

How fintech will drive 5G adoption 5G will become widely adopted first to meet the needs of fintech and other industries through the application of mobile and digital next generation financial services that will apply emerging technologies. These emerging technologies will converge to provide faster, cheaper, and better services for more people that did not have access to these services before.

Fintech is going to drive 5G, not the other way around. 5G will enable network downloads as fast as 20 gigabits. Today most broadband is through fixed lines and fiber optics, but 5G will enable this enormous volume of data to move via mobile. It will also accelerate the ability of machines to share data, ultimately meaning every device in an urban area can be connected.

However, cross-industry generic video or consumer gaming won’t be the things that drive real adoption, or further provide a solid ROI, or even at a more macro-economic sense further contribute to GDP growth. Consider instead emerging markets lacking even 3G today; they can leapfrog straight to 5G. There’s very limited, hard to access or no bank branches in many of these markets and locations, so as their economies grow, digital banks will need virtual tellers and virtual advisors and "micro branches" all requiring higher bandwidth and latency. The coming era is one of “ubiquitous or embedded financial services”, in which banking becomes an embedded utility within many other industries, supporting lifestyle choices.

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33

FINTECH

Huawei©

5G TECHNOLOGY

34

Convergence of digital industry business models and emerging technologies 5G is not occurring in a vacuum.

On the contrary, it is part of a convergence of cross industry business models and other technologies – with fintech at the centre, driving mobile disruption in the areas of three core needs we have as humans to “consume” financial services:

1. Payments: we need to pay for goods, services, and to thrive and survive; we need to pay our bills – anytime, anyplace and from any device.

2. Credit and Lending: if we don’t have enough money to pay for things, we need to borrow – ideally,

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on the spot, with very quick rapid credit approval, and in some locations where there are no standard credit bureaus or data available.

3. Deposits, investments and insurance: when we have excess money beyond our core savings, we invest or buy asset protection and insurance products. All of these new expectations are growing to meet our needs 24/7 anywhere will require mobile and the convergence of AI, Blockchain, IoT, and Advanced Cybersecurity, which will need 5G for the best performance, especially in times of local, regional, and international impactful crises.

which are launching their own digital

landscape. “Then you have internet or

banks separately – Standard

challenger banks,” he states. “And that’s

Chartered – Mox as one example

really a response mechanism from the

● Incumbents, who are the traditional

more traditional side of the industry

big banks accelerating and scram-

that’s developing more or less traditional

bling to transform and offer new

banks, but which aren’t brick and mortar.

digital and mobile services – JP

Where the fintechs come in is nipping at

Morgan Chase, HSBC, China

the services that are quickly becoming

Merchants Bank

commoditised. Payments is a great example of that; PayPal is probably the

The most disruptive at present, he

best example of a fintech model that we

says, are those large digital commerce

recognise, and having started out with

platforms, followed closely by consumer

payments it’s now moving into credit

tech giants and other internet players

and lending, and other services.”

moving into the financial services

In the face of these rapidly developing

HWConnect16: Huawei Develops FinTech Platform Ecosystem CLICK TO WATCH

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0:30

w w w.f in tech ma ga zi n e . c o m

35

FINTECH

models, says Genovese, legacy institu-

customer and product definition data

tions and incumbents – notably, last on

points for similar or the same informa-

the list – won’t die. But they must move in

tion, and they just don’t cross-sell or

the right direction to be successful. “One

leverage that data they have on the

of the challenges that these proponents

customer very effectively.

of the new business models just don’t

36

“Similarly, incumbents and legacy

have is the legacy technologies and

players don’t really have horizontal

stovepipes that you find at incumbents,”

integration,” he continues. “Typically,

he explains. “Even within the banks,

they started almost like a manufacturer,

organisationally, they’re not really work-

whereas to evolve they may have to start

ing effectively across those business

booking at distribution to digital channels

silos – so, retail banking doesn’t cooper-

by other partners or business models

ate with institutional or corporate bank-

and become more of a distribution

ing, for example. I’ve worked for clients

mechanism and past just being a middle-

where they may have three different

man, to evolving further in the value chain

5G, Bring New Value CLICK TO WATCH

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2:25

“ One of the challenges that these proponents of the new business models just don’t have is the legacy technologies and stovepipes that you find at incumbents"

– 5G, wireless, smartphones and the internet – are rapidly expanding reach and creating opportunities for financial inclusion. “This is evident in Africa, for example, where the unbanked population is high,” he says. “More broadly, the industry’s application and development of digital and mobile technologies like

­– Bill Genovese, Vice President Corporate Strategy – Banking & Financial Markets, Huawei

5G will drive investment, and will allow

to being an important intermediary. To

hand in hand with how we, as consumers,

an extent, we’re already seeing this in

are able to bank at any one time. That

different regions of the world – those

prospect has changed for all of us as

banks that are a little more digital savvy

a result of the global coronavirus pan-

may start to act like a broker or financial

demic. On this point, Geneoves dis-

services provider; the leaders are mov-

cusses how the next generation of

ing more towards becoming market-

financial services may evolve in a post-

place organisations.”

COVID-19 world. “It’s quickening the shift

mobile-only models to really build that side of banking from the ground up."

Of course, financial inclusion goes

in the direction we’ve been discussing,”

THE RISE OF TELCOS AND THE FUTURE

he explains. “Right now, I think that who-

Listing those new business models,

ever has the capacity to do a number of

Genovese notes particular interest in the

these digital services is going to pull

movement of telcos and other industries

ahead. There’s an interesting school of

into the banking sector. In this particular

thought around trust in this shift, though,

case, there are noteworthy examples in

that finds even though we have access

emerging markets where, he says, peo-

to this myriad of digital service options,

ple don’t have access to bank branches

many stay with their traditional provider

but new communications infrastructure

out of fear that the system may get w w w.f in tech ma ga zi n e . c o m

37

FINTECH

38

MCKINSEY

Digital Strategies in a Time of Crisis "Bold, tightly integrated digital strategies are the most effective approach to digital transformations."

What does it mean to act boldly?

We suggest four areas of focus, each of which goes beyond applying “digital lipstick” and toward innovating entirely new digital offerings, deploying design thinking and technologies like artificial intelligence (AI) at scale across your business, and doing all of this “at pace” through acquisitions”

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'stretched too thin' or compromised and may go down.”

Looking more broadly, Genovese states that how rapidly this shift in banking models occurs is, to an extent, determined by culture and,very importantly, regulation, which region in the world is being considered. “It fuels different expectations. For example, you have GDPR offsetting with PSD2 in Europe; the market is very different in China as it is in the US with DoddFrank, the SEC and other regulations and so forth. For that reason,” he says, “I feel that there’s going to have to be some level of improved open standardisation that works on a global basis.

Risk reduction and how we use data will be increasingly important, particular as a result of the shift to remote working, and you’ll likely see a decoupling of technology wherein you could see different countries doing their own thing. Everything happens for a reason and, while we’re in the midst of a terrible situation, it highlights that there has to be improvements digitally and those companies that I have already begun that journey will see the value.”

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39

BANKING

40

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A NEW DIGITAL AGE FOR BANKING ECOSYSTEMS

WRITTEN BY

GEORGIA WIL SON

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41

BANKING

What are the current trends shaping the evolving banking ecosystems and the core drivers for the industry’s digital evolution?

W

'

idespread adoption of digitalisation’ — a phrase that many within the banking industry would define as a pivotal moment of change from which it would

never look back. As high speed innovation

creates new customer demands and competi42

tion, global IT budgets in the sector need to meet the predictions of a surge of up to US$297bn by 2021, to combat the challenges facing the industry.

Microsoft defines success for financial services facing the challenges of digitalisation in the coming decade, as depending on “how well they transform ‘business as usual’ with technology to create new value, becoming indispensable partners in increasingly interdependent networks and complex value chains that cross business and industry boundaries.”

To maintain a competitive advantage, companies must embrace new business models that combine agility and security with trust at the heart of their strategies. “The business imperative—in an industry of inherently and M AY 2 0 2 0

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Digital Ecosystem Banking — Are you ready for the bank of the future?

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1:32

45 increasingly abstract products—is to

“when changes happen quickly, the

innovate, demonstrate relevance, and

bigger picture is often overlooked”.

deliver value on a foundation of trust,”

One strategy both Accenture and

says Microsoft.

Microsoft identity as being a possible

With more than US$327bn paid in

way to rebuild trust is ‘customer-facing

fines by the 20 largest global banks, for

ecosystems’. These multiply customer

mis-selling financial products since 2012,

interactions to transform them into

Accenture argues that “the agenda for

hyper-relevant and personalised experi-

banks is clear: finding a new relationship

ences, with 88% of banks believing that

model to rebuild trust if they want to

ecosystems will be an important way

secure sustainable growth.” It is impor-

to interact with customers in the future,

tant that, while the banking industry has

as well as 89% seeing customer facing

always been adaptable to disruption, the

ecosystems as the main driver of future

pace has accelerated significantly in the

value. “Banks that offer these integrated,

last decade. Or, as Microsoft states:

contextualised experiences go beyond w w w.f i nte c hma ga z i n e. com

BANKING

traditional financial needs and meet

2. Marketplace orchestrator

broader customer needs. They support

This type of ecosystem allows banks to

their customers, becoming hyper rele-

operate as a marketplace orchestrator

vant in their customer’s everyday life,�

through white labelling or co-branding.

stated Accenture.

Marketplace orchestrators sell nonfinancial products to customers.

46

CUSTOMER FACING ECOSYSTEMS: A NETWORK OF INTERLINKED COMPANIES

3. Third-party ecosystem participant

Within the banking industry, Accenture

A third-party ecosystem is where

identifies five different options for

banks can join a third-party platform

organisations to develop and launch

to offer banking products to third-

an ecosystem.

party customers.

1. Life moments orchestrator

4. Open banking platform

With this type of ecosystem, banks

Open banking platforms allow

can orchestrate ecosystems around

partners of banks to incorporate

specific life moments, offering partners

products, data or specific processes

access to their customer base

in their value proposition. With this

in exchange for fees.

ecosystem partners can leverage open application programming interfaces (APIs).

5. Referral platform This banking ecosystem directs rejected customers to other providers, such as a large bank sending a small business to a designated online finance platform. However this ecosystem is not hosted on a third party platform.

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“ The business imperative — in an industry of inherently and increasingly abstract products — is to innovate, demonstrate relevance, and deliver value on a foundation of trust” — Accenture,

via these ecosystems, banks can benefit from increased value of extended rela-

CREATING VALUE FROM BANKING ECOSYSTEMS

tionships with other financial products and increased cross-selling.

Within these five ecosystems there are typically three ways in which banks

Generating new revenue streams:

create value from:

by orchestrating an ecosystem or opening their infrastructure, banks can

Expanding primary relationships:

offer their ecosystem partners access

by driving hyper-relevant experiences

to their customer base and data in

Does Digital Leadership in Banking Really Matter?

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18:45

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47

BANKING

“ In our fully mobile, app-driven world, customers demand simplicity and are far less complacent when confronted with structural inefficiency” — Microsoft 48 exchange for fees. Over the next three years this value is expected to account for over 10% of incremental revenues generated by ecosystems.

Reducing customer churn: Third party ecosystems can help banks to deliver more meaningful customer experiences, taking them beyond traditional relationships. This ecosystem is expected to help reduce churn rates by up to 10% in the next three years.

KEY DRIVERS CHANGING THE BANKING ECOSYSTEM LANDSCAPE Coming back to the widespread M AY 2 0 2 0

adoption of digitalisation within the banking ecosystem, there are multiple drivers accelerating the proliferation of this technology and the transition towards a more customer facing ecosystem. These include: Customer attitudes “Digital attitudes among customers affect demand for integrated propositions,” states Accenture. In the recent decade, Microsoft has seen millennials become “decidedly more entrepreneurial in mindset than any previous generation. They want to be in control of their own finances and are far more willing to embrace a self service model. They are more likely to question prevailing wisdom, eschewing a one-size-fits-all mentality, preferring instead to assemble their own solutions from diverse service providers.”

Technology “In our fully mobile, app-driven world, customers demand simplicity and are far less complacent when confronted with structural inefficiency,” Microsoft affirms. “They want services that are w w w.f i nte c hma ga z i n e. com

49

BANKING

on-demand, integrated, and friction-

banking ecosystem and thus increasing

free. They expect consistent, intuitive,

the competition. “From an ad hoc digital

and meaningful experiences.” Also

wallet to real-time payments, the blurring

agreeing with Microsoft, Accenture

of industry lines and encroachment into

explains that “legacy systems stand

traditional banking territory is the new

in the way of a smooth transition to

reality. In an era when the irony of “too-

a digital environment and hamper the

big-to-fail” is lost on few, credit unions

progress of innovation.”

and community banks are capitalising on consumer sentiment by focusing on

50

Competitors

niche market segments,” comments

In the industry, non-banks and challenger

Microsoft. In order to remain competi-

banks are starting to offer products

tive, “launching ecosystems in indus-

that used to be exclusive to the financial

tries characterised by the presence of

services, companies like Facebook,

large incumbent players may help

PayPal and Apple are disrupting the

ensure that new offerings rapidly reach

Empower intelligent banking | Microsoft at Sibos 2019 CLICK TO WATCH

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2:16

“ Using information in meaningful and straightforward ways has become the new standard in this digital era” — Microsoft

51

a wider share of customers. As such,

Microsoft. “They target some of the most

banks operating in countries with high

profitable areas in financial services while

concentration rates across industries

also delivering better customer experi-

have larger incentives to be first movers

ences. In extreme cases, fintech solu-

to secure partnerships with the largest

tions offer services completely outside

industry players and hence gain rapid

of the monetary system, such as bitcoin

customer adoption,” adds Accenture.

that, if successful, may call into question the very need for banks.”

Regulations challenges when it comes to regula-

THE FOUNDATIONS FOR PROGRESSING BANKING ECOSYSTEMS

tions. “Fintech startups, born in the cloud

In order to remain successful as digital

and far less constrained by regulatory

banking ecosystems continue to rise,

requirements and legacy cost,” says

PwC explains the need for a culture and

With the rise of fintechs, banks are facing

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

BANKING

52 mindset shift when it comes to collabo-

Data

ration and partnerships. “It’s new ways

Mastering data and leveraging break-

of thinking that are required. One that

throughs in technology such as cloud

places the customer experience and

platforms, analytical capabilities, and

user journey at the forefront, in order

augmented intelligence, can create lev-

to map a course for new products, ser-

els of customer engagement and opera-

vices and ways to connect. That kind of

tional efficiency that were unimaginable

thinking may be the natural perspective

before. “Using information in meaningful

of fintechs and new entrants, and it’s

and straightforward ways has become

time to see if traditional banks can join

the new standard in this digital era. But

them,” comments PwC.

first, internal and external data must be

Core elements banking ecosystems

aggregated, integrated, and made avail-

need to focus their attentions on in

able to the right person at the right time

order to remain competitive amidst

via the right channel,” says Microsoft.

fintech and new entrants include: M AY 2 0 2 0

This can be done by using intelligent

Agility Customers are increasingly looking for intuitive experiences, a partner that understands their needs and can anticipate when their assistance is needed. Data, relationships and trust are the most valuable assets for maintaining a competitive advantage.

Creating an ecosystem of trusted platforms will help provide seamless, reliable and secure services.

Experiences Bringing it back to the continuous driver facing digital banking ecosystems is the marketing tools to transform data into

experience. Traditional customer inter-

actionable insights. “The value of an eco-

action methods have created general

system can be found in the number of

apathy and disengagement between

interactions among partners, as well as

the ecosystem and customer. “Younger

in the data shared with the orchestrator.

generations in particular are much less

Operating such an ecosystem requires

likely to have patience for time consum-

sophisticated marketing and analytical

ing processes and sub-par customer

capabilities to aggregate multiple data

service experiences,” says Microsoft.

sources —leveraging external data as

“Understanding this customer behavior

well as internal data—and extract action-

and offering tailored products and

able insights, which can then be trans-

responsive services, lays the founda-

lated into personalised commercial

tion for a more relevant and trusted

promotions in a timely manner through

relationship. Rebuilding confidence

the most appropriate channel for each

fuels trust—leading to adoption and,

customer,” adds Accenture.

ultimately, loyalty.” w w w.f i nte c hma ga z i n e. com

53

PAY M E N T S

54

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55

THE FUTURE OF FINANCIAL SERVICES

CYBERSECURITY WRITTEN BY

M AT T HIGH

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

PAY M E N T S

How can digital transformation happen with confidence in the financial services sector? KPMG discussed this in a cybersecurity round table

T

he cybersecurity threat landscape is changing for fintechs, incumbents and other financial services organisa-

tions. As the pace of digital disruption accelerates and innovative new technologies reach the market, those in the sector are having to adapt. They must also place

56

trust at the heart of any cyber agenda.

According to KPMG’s Global Co-Leader Cyber Security, Akhilesh Tuteja: “Financial services organisations are competing not only with their traditional peers, but also with an increasing number of agile, digital disruptors such as virtual banks. The pace at which these new players are developing is forcing traditional banks to adopt more agile approaches to managing their own IT infrastructure.”

Tuteja was speaking as part of a roundtable discussion between KPMG’s cybersecurity practice leaders, titled Securing the Future of Financial Services: Driving Innovation with Confidence. This was framed around the context that, amidst constant M AY 2 0 2 0

57

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CONTACT US

change, leaders are presented with

for example, they now face a direct

several new challenges when it comes

challenge from virtual banks, fintechs

to actively managing customer trust.

and other digital disruptors. These

For example, the rise of virtual banks

new entrants to the market are

forces greater IT infrastructure trans-

geared towards the latest technolo-

formation on behalf of incumbents in

gies, are more flexible and have built

order to maintain a competitive edge

their business from the ground up

– this presents greater security risks.

in a digital way; they have an advan-

Similarly, new technologies such as

tage as a result.

AI or chatbots must be secure and

According to Tuteja, for example,

trustworthy; they must also contribute

“a major transformational change of

to the user experience.

a bank’s platform used to take any-

Against this landscape, KPMG

thing between two and five years.

sought answers to several key ques-

But now they’re up against players

tions facing financial services leaders

with no legacy systems to upgrade

– Chief Information Officers, Heads of

and they are forcing the pace.

Cyber Risk and so on – when it comes

Suddenly people are talking about

to securing their future endeavours.

upgrading banking systems every four to six months.” Understandably, this

VIRTUAL BANKS

places considerable pressure on

Key points for discussion under the

IT infrastructure for incumbents.

topic of virtual banks included speed of change, customer experience, regulatory fragmentation and the supplier ecosystem.

Here, speed is crucial. This is largely as a result of the financial services landscape becoming increasingly competitive – no longer are incumbents competing with each other, w w w.f i nte c hma ga z i n e. com

59

PAY M E N T S

60

Even more so within the context

it “also adds increasing complexity to

of this article, as any accelerated

cyber risk management, which is still

change or increased complexity in

in its infancy”.

terms of IT and digital technology

With regards to digital disruption

places strain on those responsible

and new technologies in the broader

for managing the change.

sense, those in KPMG’s roundtable

Digital disruptors and new market

found that risk management cyber-

entrants rely entirely on technology

security remains a challenge. In their

– cloud-enabled ecosystems, digital

haste to innovate and retain their

banking platforms etc – due to their

competitive edge, financial services

having no physical branch locations.

players are embracing technologies

As a consequence, they often work

such as AI, chatbots, real-time data

with several technology partners.

analytics and biometrics for customer

Henry Shek, Head of Cyber Security,

identification and management.

KPMG China, raised this as a particular

These bring their own challenges. For

risk, noting that while this approach

example, according to KPMG: “Cyber

increases speed to customers,

criminals are already using new and

M AY 2 0 2 0

advanced methods to manipulate secu-

financial services sector. According

rity weaknesses and traditional security

to Deloitte’s How Artificial Intelligence

and protection mechanisms may not be

is Transforming the Financial

sufficient to deal with AI and advanced

Ecosystem report, for example, AI and

technology-enabled attacks.”

the advances that it brings will reshape

To combat this, it predicts, financial

every building block of success in finan-

institutions will likely embed cyberse-

cial services. It states: “Technology will

curity into their broader digital strategy

make operations efficient enough that

and invest in it on a greater level to the

asset size will no longer be sufficient to

point where it becomes a central part

sustain cost advantages. Meanwhile,

of every digital adoption throughout

revenue will not come from standardi-

the sector.

sation but from the highly customised products and personalised interactions

AI AND MAINTAINING SECURITY

that AI makes possible.” It is also recog-

AI is having a significant impact on the

nised that exclusive relationships with

KPMG Cyber Security Challenge 2019 CLICK TO WATCH

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5:20

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61

PAY M E N T S

62

customers will no longer be a differen-

the customer and make decisions

tiator, and that customers will stay with

based on ‘question and answer’ type

a bank, not because it is difficult to

algorithms, the process for how they

walk away, but because the personal-

manage that customer interaction

ised benefits are better than any other.

must be seamless – best practice

In KPMG’s roundtable, Tuteja rec-

being a balance between the robot

ognised that AI will power the new age

and the physical, for example. It was

of financial services, but questioned

also stressed that security and privacy

how to make the technology secur

is embedded into AI and bot applica-

when legacy programming technology

tions from day one, and that all finan-

is not applicable and AI is becoming

cial institutions must demonstrate

increasingly complex. Bots were also

AI integrity and robustness in order

discussed. Specifically that, while

to minimise the security threat. There

they are designed to interact with

may even be, it was argued, a case

M AY 2 0 2 0

services institutions in the US, the role of CISO should migrate to that of Head of Cyber Risk.

It was discussed that many organisations have centralised their fraud risk and operations – fraud risk being second line and operations first line.

However, as this shift occurs it was questioned what a new operational model that accommodates this change looks like, and how it would be governed. Technology could play a role too. Tuteja, for example, suggested a shift towards allowing machine learning and bots to understand fraudulent activity but that they to govern AI as you would a person

are currently not smart enough to

rather than a technology in future.

do so. Where the technology can, and will be used to great effect how-

THE CHANGING RISK LANDSCAPE

ever is in the identifying of patterns

The role of those tasked with manag-

of fraudulent activity – this is already

ing risk is changing. Even, it was sug-

being activated by several leading

gested during KPMG’s roundtable,

organisations.

“breaking up”. According to Charlie

Read the full report by KPMG and

Jaco, Global Financial Services Lead,

find out more about the services it

Cyber Security, the role of the CISO

offers here.

no longer stops as “simply telling the board how many vulnerabilities were discovered last month”. Jaco suggested that for most large financial w w w.f i nte c hma ga z i n e. com

63

INSURTECH

64

5

FIVE WAYS THAT BIG DATA ANALYTICS IS TRANSFORMING

INSURTECH W RITTEN BY

M AY 2 0 2 0

HARRY MENE AR

65

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

INSURTECH

We examine the impact of Big Data Analytics on the insurance sector, and look at five ways industry leaders are harnessing data to create competitive advantage

T

here’s a revolution sweeping the global insurance industry. A digital transformation of epoch-shattering proportions

is rendering old methodologies obsolete, and redrawing the playing field for some of the

world’s most venerable corporations. That transformation is being driven by Big Data 66

Analytics. Here we examine the top five ways that industry leaders are harnessing the power of data to generate value and create competitive advantage.

This is the age of data; companies around the world have access today to more points of information than at any other time in human history. 90% of all the data in the world was created in the last two years. Every day, the planet creates more than 2.5 quintillion bytes of information.

“Every interaction with your computer or phone creates data. Every interaction on social media creates data. Every time you walk down the street with a phone in your pocket, it’s tracking your location through GPS sensors – more data. Every time you M AY 2 0 2 0

67

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

Driving insurers

digital future into a

At Cognizant, we’ve invested in the end-to-end capabilities needed to help insurance organizations not just do digital, but be digital. We partner with our clients to unlock new value and through the power of digital technologies and new ways of working, we help them evolve into more competitive, progressive versions of themselves.

Learn more at Cognizant.com

Copyright Š 2019 Cognizant

“ Data is not simply the facilitator for better underwriting and keener pricing, but is the very DNA of the 21st-century connected organisation” about getting a dehumidifier for the — KPMG

house and then seen nothing but ads for the Pro Breeze Electric Mini for the

buy something with your contactless

next day? That’s the power of Big Data.

debit card? Data. Every time you read

Big Bata is collected and analysed

an article online? Data. Every time

— increasingly by artificial intelligence

you stream a song, movie or podcast?

(AI) and machine learning (ML) pow-

Data, data, data,” Forbes writer and

ered technology — in order to help

business analyst Bernard Marr wrote

companies better understand their

in a recent article.

customers, their internal workings

As social media usage, cell phone

and the world around them. Disruptive

ownership and the ascendant ubiquity

companies with a taste for innovation

of Internet of Things (IoT) devices

have been using Big Data analytics for

continue to grow, this trend is show-

years to develop and maintain a com-

ing no signs of slowing down. As you

petitive edge. From the hospitality to

read this, you’re creating more data.

manufacturing sectors, the companies that are going to survive — and thrive —

WHERE DOES IT ALL GO?

in the Fourth Industrial Revolution are

Every uploaded picture, downloaded

data-driven ones.

PDF, streamed video, or packet of

Fortune predicts that, by 2026,

location-tracking information goes

the global Big Data analytics market

somewhere. Usually, it’s sold with our

will be worth in excess of $1trn. Every

(somewhat) informed consent to com-

company in every industry around

panies that use it to advertise more

the world needs to be a part of the

effectively. Ever had a passing thought

Big Data revolution, or be left behind. w w w.f i nte c hma ga z i n e. com

69

INSURTECH

" Every time you buy something with your contactless debit card? Data. Every time you read an article online? Data. Every time you stream a song, movie or podcast? Data, data, data" — Bernard Marr, Forbes writer and business analyst

the next step of its evolution into an increasingly digital age.

Traditionally, insurers have relied on mathematically-skilled actuaries

Nowhere is this more true than in the

crunching complex sets of numbers

insurance industry.

to understand risk and write policies

70

accordingly. “Over the past 15 years,

INFORMED INSURANCE

however, revolutionary advances

“Insurtech is having a transformative

in computing technology and the

impact upon the global insurance

explosion of new digital data sources

market — the role of data is absolutely

have expanded and reinvented the

central to the entire project,” observes

core disciplines of insurers,” asserts

a recent report KPMG. “Data is not sim-

global consultancy McKinsey’s report

ply the facilitator for better underwrit-

Unleashing the Value of Advanced

ing and keener

Analytics in Insurance. “Today’s

pricing, but is the very DNA of the 21st-

advanced analytics in insurance push

century connected organisation.”

far beyond the boundaries of tradi-

The insurance industry is no stranger to data. In fact, it’s probably been draw-

tional actuarial science.”

Big Data is completely revolutionis-

ing insights from large data sets for

ing core aspects of the insurance

longer than any other sector. However,

sector. Let’s take a look at the five

this may end up being more of a hin-

main areas of insurance that Big Data

drance than a help when it comes to

analytics is transforming:

M AY 2 0 2 0

PRICING AND UNDERWRITING

However, this doesn’t mean that

The ability to accurately assess risk

these older analytical strategies

and price policies accordingly has

are being discarded. According to

been the central point of value crea-

a report by the European Insurance

tion for the insurance industry for

and Occupational Pensions Authority

centuries. By giving insurers access

(EIOPA), “traditional data sources

to larger data sets, and more detailed

such as demographic data or expo-

information about individual custom-

sure data are increasingly combined

ers, Big Data is allowing these

(not replaced) with new sources

companies access to more granular

like online media data or telematics

datasets, which enable them to offer

data, providing greater granularity

policies that more closely reflect

and frequency of information about

the risk posed by an individual, rather

consumer’s characteristics, behaviour

than the demographic box they

and lifestyles.” The result is a new

belong to.

generation of companies that are

How are InsurTechs, AI and Big Data changing the insurance industry?

CLICK TO WATCH

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1:46

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

71

INSURTECH

I N S U R T E C H I N N O VAT I O N

Driving innovation with telematics

72

The area where it’s most obvious that Big Data analytics are rewriting the rulebook isthe motor insurance sector.

Vehicles were some of the first pieces of machinery to widely include an IoT-adjacent technology: telematics.

Telematics — a term that envelops everything from GPS to hands-free voice calling — have been a part of commercial and consumer vehicle offerings for more than a decade now.

Today, telematics devices that monitor driver behavior are becoming a standard part of many major auto insurer

M AY 2 0 2 0

offerings, allowing vehicle users to take more personal responsibility for their behaviour, and earn lower premium pricing as a result.

Leading US insurer, Progressive’s telematic offering monitors the times of day you drive, any sudden changes in speed, whether that’s hard braking or rapid acceleration, and your mileage. The result is a policy that better ref lects the behaviour of the customer.

Reportedly, careful drivers can save an average of $114 per year on auto insurance with the Snap-Shot.

harnessing the extensive experience

SETTLEMENTS AND CLAIMS

of their industries in combination with

Traditionally, the claims process is

the added power and insight provided

a long and arduous one, as adjusters

by Big Data collection and analysis.

assess the claim and determine liability to see whether a payout is justified.

HEALTH AND WELLBEING

Today, by using mass data gathering

IoT-powered wearables are having

to segment and analyse claims quicker

a huge impact on the personal health

using AI. In some cases, companies

insurance space. In the same way

have been able to fully automate the

that telematic monitors in vehicles

claims process.

can track customer behaviour to the Fitbit and Apple Watch’s Health

POLICY DEVELOPING AND TAILORED INSURANCE

App can track and promote healthy

The increased personalisation of

behaviour, leading to lower premiums.

insurance has been touched on

The data gathered in this individual-

several times already above. The

focused manner allows insurance

trend itself is one that isn’t confined

plans to be customised to the behav-

to insurance, as companies around

reward safe driving habits, devices like

iour and health on a person-byperson basis.

Companies like AliveCor offer devices like the KardiaMobile, a personal EKG monitor that allows cardiovascular health data to be shared remotely with health professionals and insurers. UK-based insurer Vitality offers premium discounts based on the activity points that can be earned via use of Apple watches and demonstrated activity levels. w w w.f i nte c hma ga z i n e. com

73

INSURTECH

DI D YO U KN OW?

Lemonade’s world record

74

All the way back in 2016, personal insurtech firm Lemonade set the world record for processing an insurance claim. At seven seconds past 5:47pm on December 23, 2016, Brandon Pham, a Lemonade customer, hit 'Submit' on a claim for a $979 Canada Goose Langford Parka.

By 10 seconds past the minute, AI Jim, Lemonade's claims bot, had reviewed the claim, cross referenced it with the policy, ran 18 anti-fraud algorithms on it, approved the claim, sent wiring instructions to the bank, and informed Brandon the claim was closed.

By accessing and analysing vast datasets, insurers can use AI and ML to deliver their services with unprecedented speed and accuracy.

M AY 2 0 2 0

“ Customers are seeking tailored, customised offers from their insurers” — Jean-Francois Gasc, Managing Director, Accenture the world use increasingly detailed datasets to tailor the experiences of their customers. Remember the Pro Breeze Electric Mini?

According to a recent report by the The Organisation for Economic Co-operation and Development, “Insurance sets prices by groups of people who have similar risk profiles, whether, for example, by gender or age for auto insurance, which is called risk classification. Big Data provides new sources of information for understanding policyholders, fine-tuning the risk classification.”

By further segmenting these risk groups, insurers are able to use Big Data to offer policies tailored to increasingly specific situations and clients who may not have previously had access to affordable coverage. Jean-Francois Gasc, a Managing Director at Accenture wrote in a w w w.f i nte c hma ga z i n e. com

75

INSURTECH

76

report last year that, insurance

As mentioned earlier, Lemonade

customers are increasingly “seeking

uses a proprietary AI called Jim to man-

tailored, customised offers from

age and oversee claims. Computers are

their insurers.”

reaching the point where they can be safely expected to handle larger and

THE NEW FACE OF CUSTOMER EXPERIENCE

larger decision-making roles.

Another trend that has been sweep-

more detailed profiles of customers by

ing across multiple industries is the

tapping into external datasets to find

increased use of AI and ML-powered

for similarities in internal data to pro-

Big Data analytics to deliver more

duce a holistic customer profile.

personalised and effective customer

In call centres — often the first point

service experiences.

of contact between the insurer and

M AY 2 0 2 0

AI and ML can even be used to build

77

call volume, reason and the types of

FUTURE-PROOFING THE INSURANCE INDUSTRY

customers that are most likely to call

Change is a constant phenomenon.

at certain times of day. Understanding

The global digital transformation of

these vast datasets can be key to

the insurance sector isn’t going to

reducing wait times and ensuring

slow down any time soon. As new

that the most appropriately-qualified

challengers like Lemonade, Surround

customer service representatives are

and Flock (which is using Big Data

available at the most appropriate time.

analytics to enter into the relatively

customer — AI can be used to analyse

Data-driven AI and ML-powered

new market of drone insurance)

chatbots are even replacing the

emerge, legacy insurers need to

human point of contact entirely in

adapt, adopt and evolve quickly,

some companies.

or be priced out of the marketplace. w w w.f i nte c hma ga z i n e. com

T O P 10

78

Fintech innovation labs Innovation labs are where incumbents and large industry players focus on their most digitally disruptive technologies.

Here, in no particular order, we explore 10 of the best WRITTEN BY

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T O P 10

10 ING: Katana Labs ING’s analytics platform ‘Katana Labs’ was created to provide a way for portfolio managers to have access to expertise enabling smarter, better and faster decisions. Having recognised that significant advantages are available through data analytical software, ING decided to make Katana an accessible gateway to this information.

Recognised as one of the most significant innovation tools in 2019, Katana is a testament to ING’s ability and an invaluable tool for ambitious finance workers seeking to achieve the rapid ‘idea’ to ‘implementation’ trajectory.

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09 AXA Next AXA Next is a comprehensive platform valued for its exceptional functionality, agility and for prioritising business continuity amongst SMEs at all times. Next’s digital strategy is comprised of several aspects: AXA Labs, a trinity of facilitates in Shanghai, California and London dedicated to identifying new trends and emerging talent; AXA Venture Partners, a €600mn fund for investing in fintech and insurtech projects; Kamet, the company’s startup studio, aiming to provide entrepreneurs with the resources necessary to succeed; AXA Partners to scale innovation; and AXA Global Parametrics, an insurance offering leveraging data analytics.

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Loved by users.

Loathed by fraudsters.

Identity verification through informed AI.

Learn how Jumio is using informed AI to deliver identity verification as it should be.

Visit jumio.com

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08 FINOLAB Calling itself the ‘fintech centre of Tokyo’, FINOLAB is committed to creating a financial ecosystem for no smaller purpose than instituting a digital revolution. Noting that financial services form the bedrock for so many aspects of modern life (mortgages, savings accounts, digital transactions, etc), the ethos of FINOLAB has been to foster innovation and creativity in the community jumio.com

in order to make Japan’s sector amongst the best in the world.

The organisation’s ambitious aim is for one ‘unicorn’ (a startup venture with a valuation of $1bn) to emerge from its services and to establish a new standard of fintech excellence.

Find out more here: w w w.f i nte c hma ga z i n e. com

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07

itigroup: Global C Innovation Labs

Last year, Citigroup celebrated the first decade of its Global Innovation Labs project. However, the seed for financial innovation was sown as late as 1975 with the advent of ATM machines, prompting the company to establish a research centre investigating market trends and consumer expectations. Cognisant that the amount of digitally-linked devices is increasing exponentially yearon-year, Citi’s approach with its Labs has been to acclimatise clients with the latest technology and help identify ways that it can benefit their business. To attain this level of capability, the company partners 84

with academics, industry leaders and fintechs to gain a holistic picture of the financial market.

Find out more here:

Citi Innovation Lab London: Introduction CLICK TO WATCH

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Legal & General’s Chief Innovation Officer, Maarten Ectors, on solving the most challenging ‘Harry Potter problems’ CLICK TO WATCH

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06 Legal & General When FinTech magazine spoke with Maarten Ectors, CIO at L&G, in our December 2019 issue, he explained that the company’s innovation team was focused on solving ‘Harry Potter’ problems — those which require a ‘magic touch’ in order to solve. Exemplifying the ‘startup’ mindset that innovation labs are renowned for, L&G maintains a fast and flexible approach to some of the most complex enterprise system problems in the financial services and insurance industries, earning a reputation for its pioneering solutions. Achieving this requires a thorough understanding of the latest technologies and the best ways to implement them, something L&G excels at.

Find out more here:

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Building an ecosystem?

Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�.

Eric Meistermann, Deloitte Partner in charge of AXA Group

05

Barclays: Eagle Labs

Part of Barclays’ ongoing mission to develop the UK’s digital presence on the global stage, Eagle Labs is an initiative aimed at driving skills, fostering innovation and encouraging growth.

It achieves this goal by guiding companies through a structured plan centred on digital transformation, as well as providing access to state-of-the-art technologies and advice on the best ways to utilise them. Barclays’ first lab was opened in 2015 and has gone on to be recognised by the wider industry for its innovation, social responsibility and enterprise support.

Find out more here:

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04

Visa London Innovation Centre

Visa recently announced the creation of its 1,000 square meter London innovation centre, the largest of the company’s network around the world. Dedicated to providing an immersive experience for enterprises experiencing complicated business problems, Visa will work closely with participants to find new, never-considered opportunities available to them. The centre has been ergonomically designed to provide a seamlessly digital experience with modern tech staples, such as cloud computing, authentication and security.

Believing that engagement and interaction are the most powerful ways to foster innovation in others, Visa will also allow for real-time experimentation using its Visa Development Platform.

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Deutsche Bank Innovation Labs

Deutsche Bank’s concept for its innovation lab is a simple one: provide opportunities for startups by connecting them to key decision makers within its wider organisation. Taking a careful approach which selects the key emerging tech trends and then intelligently implements them into bespoke solutions for clients, the bank is able to maintain an imaginative, agile and optimised method of working. The main advantage of Deutsche’s lab is the influence and available resources it can present to a prospective startup, thus shortening the road from ‘idea’ to ‘deployment’ in a way which most other companies could not achieve.

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

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02

Mastercard Labs Having started a series of innovation hubs across the world, Mastercard established its first (seventh overall) lab in Africa to provide assistance to the financial sector there. Helping to drive this concept with Mastercard is the Bill & Melinda Gates Foundation, an organisation with which it frequently collaborates.

The endeavour is projected to help over 100 millon, with Mastercard uniting its innovation and global financial inclusion capabilities to determine how best to serve customers and create relevant products. The company pledges to demo new ideas, trial approaches for optimisation and then determine how to adequately scale for developed and emerging markets.

Find out more here:

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DID YOU KNOW?

Through an $11 million grant over three years from the Bill & Melinda Gates Foundation, the Lab will generate new ideas with local entrepreneurs, governments and other stakeholders across Africa, and rapidly move from concept to reality.

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Accenture: FinTech Innovation Lab Run by professional services company Accenture, the FinTech Innovation Lab operates according to a ‘three Cs’ model: connect, collaborate and create. The Lab functions as a point from which startups can make valuable industry connections, increase their company visibility and gain insights into the market from the people who know about it the most. Located in London, the Lab has so far managed to execute 125 concepts and raised $397mn. The organisation remains steadfast in its dedication to supporting the financial sector and allowing new ideas to flourish.

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FinTech Innovation Lab London 2020 - Graduation Day CLICK TO WATCH

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1,500 + Jobs created

$1.1bn Funds raised in US dollars

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

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Smart financial solutions with a personal touch WRITTEN BY

MATT HIGH PRODUCED BY

JORDAN HUBBARD

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DEEM FINANCE

In less than a year, Deem Finance has disrupted the financial services sector through innovation and dedication to its customers

D

eem Finance is built around a simple, yet often overlooked premise in the innovative world of digital banking: to empower

every individual that dreams of a brighter future.

The business is young, having only been established some 12 months ago, and yet it delivers on 98

this vision with a pioneering and assured use of technology solutions that are smart and effective, yet simple and intuitive to use for all. For Deem, the customer is everything.

Naturally, many brands — particularly the new breed of fintechs for whom personalisation is a driving force — will state the importance of the customer in their business. For many, it may ring true. Deem, however, was built to be disruptive, to combine vision and innovation to be more than simply ‘another challenger bank’. At the helm of this fledgling business is CEO Chris de Bruin. A veteran of digital banking and a respected thought leader on digital technologies, de Bruin was approached to take control of Deem’s journey and, in doing so, to build a strong, knowledgeable and highly capable leadership team. He has done both.

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DEEM FINANCE

“ We will never settle for good enough in what we already do” — Chris de Bruin, CEO, Deem

Head of Retail Products & Digital at Standard Chartered Bank, and Associate Principal at McKinsey & Company.

RESHAPING THE RETAIL BANK EXPERIENCE The opportunity to be a part of Deem’s

Prior to embarking on his journey

story, he concedes, was an exciting

with Deem, de Bruin has held various

one. “It was a very interesting notion.

positions over more than 20 years

I was approached by stakeholders

in financial services including, most

in a previous, legacy business who

recently, President of Zafin, Global

were looking for a team to take all that

100

was good from these legacy assets or, what was essentially a very old fashioned consumer finance organisation, and repurpose them into an exciting, innovative digital business.

For me, it was a great opportunity to think about how new technologies can fundamentally reshape what you do and what you can offer — how can we be more relevant for customers, help to improve their personal and financial lives, give them a fairer deal and remove some of the imbalance that we still see in banking.

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101 available with a very coherent purpose,”

thanks to his time in the industry, is

he continues. “Finance is never really

well versed in the impact that technol-

geared towards consumer interests,

ogy can make on the financial sector.

which can leave many uneasy. We’re

“If I take you back to when I was part

different because we deliver informa-

of a team that built a digital bank in the

tion to our customers with an easy to

early 2000s, many of the technolo-

use, but powerful platform that puts

gies were in their infancy,” he explains.

them in control — that socially-minded

“What’s really changed, and perhaps

strategic intent is the key difference.”

been the driver of the biggest transfor-

Of course, that strategic intent is

mation, is our ability to communicate

underpinned by complex technology

in far richer ways with clients, whether

and strong analytics capabilities, the

that’s through social media, specific

greater use of data and an innovative

communications tools or apps.”

mindset that has placed Deem clearly ahead of its competitors. De Bruin,

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DEEM FINANCE

102

particularly crucial to Deem’s develop-

banking in the right direction and

ment. Specifically, the migration from

which are giving us a tremendous

private to public cloud, through to the

ability to understand our customers

global ecosystems that are emerging

in ways that would have never been

across sectors. “We tried to harness

possible before.”

all of these innovations from day one,” he notes. “So, building Deem to be

CUSTOMER-DRIVEN TECHNOLOGY

cloud-native immediately, for exam-

At its heart, Deem’s proposition

ple, making sure that it’s all open API

revolves around its Cash Up and Miles

instantly, and so on. We invested a lot

Up cards and personal loans, both of

in what we call ‘the digital fabric’ rather

which have proved successful since

than the core systems themselves.

their launch in November last year.

They’re the ones that, in my view, have

The company offers its cards at three

really moved the foundations of retail

distinct income levels — World,

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Platinum and Titanium — reinforcing

approach to development. Park is a

its inclusive ethos. Across all three of

payments industry expert, with more

these, the company has seen robust

than 25 years' experience covering the

results that, in just 120 days or so since

banking, credit and payment markets.

launch, demonstrate the strength of the Deem proposition.

“I joined Deem because it’s a vibrant company with a great vision, and

As Andrew Park, Chief Product

something I really wanted to be part

Officer, highlights, how these products

of,” he states. “When it comes to

work is dictated by a customer-centric

products, we absolutely design with

E XE CU T I VE PRO FI LE

Chris de Bruin For Chris, there’s no job too big or too small, or that doesn’t deserve attention to detail. A doer at heart, he is tireless when it comes to getting things done. It’s this galvanising attitude, coupled with a no-nonsense approach to business, that drives Deem forward. With over 20 years of experience in financial services, in diverse roles that required different skill sets, Chris is finely attuned to the push and pull of the industry. His previous role before joining Deem was President of Zafin, where he was responsible for the company’s technology, engineering, product development, digital ecosystem and investments in new technologies. Prior to this, Chris was Global Head of Retail Products & Digital, Standard Chartered Bank.

During his 13-year career at the bank, Chris held several leadership positions including Global Head Distribution, Regional Head Consumer Banking, Korea & Japan, and Group Head of Private Banking and Head of Consumer Banking for the UAE. Before joining Standard Chartered Bank, Chris was part of the founding team at 20twenty Financial Services, where he was Chief Strategist. He also was an Associate Principal at McKinsey & Company. w w w.f i nte c hma ga z i n e. com

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Control your Business!

Achieve your Goals!

Award-winning Debt Collections Technology

“ Anything we build must deliver a better customer experience, a simpler process for staff and higher efficiency for our shareholders”

Citibank, Poland’s Bank Millennium and Deloitte Strategy Consulting.

Hutchinson has managed all product families and segments across the retail banking sector, from private banking to cash loans or payments cards. And yet, in Deem he sees some-

— Alex Kim, CTO, Deem

thing truly unique. “Look at any bank

the end-user in mind and work back

Deem doesn’t have a slogan or brand

from their need — that’s not typically

tagline or need to be built around cli-

how financial institutions work. And

chés; the company absolutely delivers

that works throughout the product life

on that ethos. We exist to help con-

cycle too; as a product is launched,

sumers through the use of our data,

for example, and starts to have actual

technology, products and processes.

users our customer care team works

It’s really as simple as that.”

or tagline and you’ll see some variation on the ‘improving people’s lives’ ethos.

to ensure customers are using it to

For Hutchinson, Deem’s delivery

the very best of its abilities. That

of reliable and transparent information

creates this emotional link with our

to products is a key differentiator.

brand and products that goes way

He and his colleagues recognise the

beyond functionality.”

‘data revolution’ that has changed

From the outset, the creation of that emotional link has been key to

all industries, is now disrupting financial services — Deem is riding this

Deem’s strategy. Roy Hutchinson is the company’s Chief Strategy and Brand Communications Officer, and a man well versed in delivering financial strategy for some of the world’s largest financial institutions, including w w w.f i nte c hma ga z i n e. com

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“ Data is essential in everything we do, not just in risk decisions” — Torsten Buening, Chief Risk Officer and Chief Data Officer, Deem

built the entire company from the ground up, based on using data and automation to the benefit of our customers, our employees and our shareholders.”

“Data is essential in everything we do, not just in risk decisions,” confirms Torsten Buening, Chief

disruptive wave. “Nothing supports

Data Officer and Chief Risk Officer.

our mission better than the way that

Buening is an experienced risk practi-

we define information and analytics

tioner with a career that spans

technologies,” he states. “We have

a diverse range of leadership roles

E XE CU T I VE PRO FI LE

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Alex S. Kim Alex believes that technology should make life simpler and better. This belief is the driver for all technology applications at Deem, within the organisation and at the customer’s level, too. In more than three decades of key roles in banking and technology/operations, Alex has worked in the US, Korea, Singapore, Malaysia and Japan, gaining leadership experience across a broad spectrum of business cultures, from global giants like GE Capital and Standard Chartered Bank as well as regional banks and tech startups. At Standard Chartered Bank, he was CIO, Korea and Regional CIO, North Asia as well as for Korean Exchange Bank, Samsung Card, NextCard and GE Capital. Alex joined Deem from Hawaii, where he worked as EVP, Technology & Operations for American Savings Bank. Alex holds a Bachelor Degree in Mechanical Engineering and a Master Degree in Manufacturing Engineering.

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DEEM FINANCE

2019

Year founded

$50mn Revenue in US dollars a year

800

Number of employees

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Deem Demo Video CLICK TO WATCH

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“ Deem doesn’t have a slogan or brand tagline or need to be built around cliches; the company absolutely delivers on that ethos” — Roy Hutchinson, Chief Strategy and Brand Communications Officer, Deem

Roy Hutchinson

for risk and capital management, risk governance and modelling, and startups. “As data sources become richer and more varied, and the ability to connect large amounts of unstructured data grows, there is no reason why a customer couldn’t get a product developed specifically for their individual needs and our risk tolerance.”

Any strong customer proposition has to be underpinned by trust and

E XE CU T I VE PRO FI LE

As a polyglot, Roy is a man of many words. Yet, when it comes to communicating financial strategy, he believes ‘no jargon’ works best for the customer. Roy has 35 years of consumer financial services experience, 20 of which were at Citibank, with Global, EMEA, Latin American, Eastern European and US leadership positions. After Citibank, Roy worked for 10 years in the core management team of Poland’s Bank Millennium, being a driver of changes required to make the bank rise to national prominence and become a reference for retail banking in the country. At that time, Roy also served in the Polish Executive Committee of Visa.

Next, he became a Director at Deloitte Strategy Consulting, supporting financial institutions in different areas across Europe. Roy has managed all product families and segments in retail banking, from private banking to cash loans or payment cards, winning awards on several occasions, and has also developed or managed digital and branch-based businesses. A Fellow of the United Kingdom’s Royal Chartered Institute of Marketing, Roy holds a degree in Economics with a concentration on Business Administration. w w w.f i nte c hma ga z i n e. com

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transparency. And, in a world where

mitigated,” Buening continues. “One

personal information informs how

is the more traditional credit risk,

those relationships are built and ser-

because despite our technology and

vices provided, that trust is paramount.

innovative approach, we are still lend-

“A company such as Deem has

ing money and we still require people

two key risk factors that need to be

to pay us back. However, using the

E XE CU T I VE PRO FI LE

Torsten Kleine Buening In a business governed by numbers, Torsten’s numerical acumen and love for crunching digits are his greatest assets, along with his expertise at devising strategies that minimise risk for companies and their customers. An experienced risk practitioner, Torsten has close to 20 years of experience covering conventional and Islamic finance in developed and emerging markets. Torsten’s career spans a diverse range of leadership roles for risk and capital management, risk governance and modelling in regional and multinational financial institutions, as well as startups and risk-related roles in consulting.

He has worked on prestigious assignments and engagements in the US, Europe, the Middle East, Singapore and most recently Mongolia. Torsten successfully drove projects and change initiatives including a Basel II implementation across 11 countries, an Asset Quality Review under European Central Bank rules and a Machine Learning-based credit decision-making framework.

Before joining Deem as Chief Risk Officer, Torsten worked at Tenger Financial Group, where he served as Chief Risk Officer for XacBank, responsible for Risk, Fraud and Compliance and as Board member for Tenger Insurance. He holds a degree as Diplom Wirtschafts-Informatiker/Master of Science in Information Systems of Westfaelische WilhelmsUniversitaet Muenster/Germany. w w w.f i nte c hma ga z i n e. com

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DEEM FINANCE

Aquisition — Cash Up CLICK TO WATCH

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“ When it comes to products, we absolutely design with the end-user in mind and work back from their need” — Andrew Park, Chief Products Officer, Deem technology and interfaces such as those that we have, the automated retrieval of data from other sources and our own data enables us to make better, more informed decisions through advanced models and engines to give the client the best possible service.”

The other area that Buening is focused on is cybersecurity — specifically, that all systems and interfaces are as secure as they can possibly be to protect both the business and its customers. “If the client can’t trust you, you’re finished,” he states. “We have a complete zero-tolerance strategy; if we lose one client then that’s as good as losing everyone. For that reason, we have a state-of-the-art security operations centre and we use highend experts in cybersecurity.” w w w.f i nte c hma ga z i n e. com

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And while that protects the business

‘customer experience offered by

to the highest degree, it is, says Buening,

banks’, it’s customer experience

an ongoing battle to stay ahead of those

generically,” de Bruin states. “The

cybercriminals who are intent on caus-

standard, across multiple sectors has

ing harm. He likens risk management

increased significantly in terms of how

and cybersecurity to a ‘weapons race’,

you offer a rich customer experience,

but also maintains that “you have to

so it puts a lot of pressure on how you

have everything right from the beginning.

design and develop your products.

You must have people on board who are

Consequently, we’ve spent a lot of

determined to make it as hard as pos-

time building best-in-breed systems

sible for anyone to access your systems,

and shifting our thinking to this custom

and who are willing to achieve excel-

journey that is so important to us.”

lence across the entire infrastructure.”

Alex Kim is Deem’s Chief Technology Officer (CTO). In more than three

THE DEEM EXPERIENCE

decades of key roles in banking and

“Customer experience is no longer

technology operation, Kim has been

E XE CU T I VE PRO FI LE

Andrew Weik Park Andrew is a payments industry expert with 25 years of professional experiences in financial services and consulting industries, and a comprehensive understanding of banking, credit and payment markets.

Andrew has expertise in sales, marketing, business development, strategic partnership, corporate strategy, business portfolio management, big data analytics, predictive modelling, and credit risk management disciplines.

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DEEM FINANCE

C O M PA N Y FACT S

• Overall: Average Card Spend (AED): 26% higher than the UAE market average • Overall: Average Card Transaction: 1.5x UAE market average • Aff luent: Average Card Spend (AED): 43% higher than the UAE market average 118

• NPS improvement: 63 pp up since launch • Customer Demographics: 50% of new customers in more aff luent income levels

a leading figure in the US, Korea,

experience, a simpler process for staff

Singapore, Malaysia and Japan

and higher efficiency for our sharehold-

with companies including Standard

ers. Data processing is the glue that

Chartered Bank and American Savings

brings these strands together.

Bank. All of this experience is neatly

“One area in particular that will open

underpinned by one overarching view

this up further is artificial intelligence,”

on technology: that it should make

he continues. “The technology opens

life simpler and better. “Anything we

up a huge area of opportunity for us,

build must deliver a better customer

not so much in terms of delivering

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more sophisticated or complex prod-

It will allow very customised delivery

ucts, but rather for delivering more

of services for every single customer.”

simply. We’re around 60% into the

The nurturing approach that Deem

complete automation of our back end

offers its customers is mirrored in the

at the moment — a process we hope

culture that de Bruin and his colleagues

to have completed by June of this year.

have created within the business. “It’s

Most companies shy away from such a

been really important to establish,” de

process, which makes it a real opportu-

Bruin explains, “because where do you

nity for startups like Deem compared

find people that have both the financial

to legacy players or incumbents. By

services talent and the technical exper-

automating our back end processes we

tise that Deem is underpinned by? They

can literally change as needed depend-

are two worlds that very rarely overlap,

ing on the latest data on how our

so our challenge has really been that

customers are interacting with us, how

it’s a market that is rich in banking

they’re using our products and so forth.

talent, but lighter in tech talent — we

Ramadan Acquisition — Platinum Cash Up CLICK TO WATCH

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DEEM FINANCE

struggled to find what I term ‘digital bankers’. For a lot of bankers, the challenges in entering the world in which Deem exists are around struggling to adapt to this new super-fast, real-time way of thinking — that’s what drew me into the business in the first place.”

PRODUCT DEVELOPMENT AND FUTURE PLANNING Deem’s achievements in its year of business are significant. Driven by de Bruin and his colleagues the company 120

doesn’t rest on its laurels. Together with the ongoing automation of its entire backend, as described by Kim, there are several new products on the horizon that de Bruin says “will truly take the consumers’ side”. While it is too early to reveal specific details, he alludes to innovative launches that will share any benefit that Deem makes

functions under one distinct service

from them with users.

platform that best serves customers.

This development capacity is, in part,

“Technology allows us to build prod-

enabled by the strong ‘digital fabric’

ucts in which the processing costs are

that de Bruin previously mentioned. This

lower, the risk better managed and

could, for example, be used as a foun-

the benefits possible for the consumer

dation to a future Platform as a Service

can be tailored — we can and will

model should Deem move in this

pass some of those benefits back to

direction, or to bring several financial

our key constituents.

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“We see a great deal of enthusiasm

written into our company culture, so

for what we’re trying to achieve,” he

we will never settle for good enough

continues. “There’s not been a single

in what we already do.”

minute that hasn’t been exciting, and what we hope to do can be divided into two core spaces: what we already do but can do better, and what we are still to start. Craftsmanship and constantly searching for improvements are w w w.f i nte c hma ga z i n e. com

FINOLAB: DRIVING INNOVATIVE STARTUPS IN FINTECH

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WRITTEN BY

GEORGIA WILSON PRODUCED BY

NATHAN HOLMES M AY 2 0 2 0

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FINOLAB INC.

Makoto Shibata, Head of FINOLAB, CCO at FINOLAB discusses the company’s efforts to support startups and how it is disrupting the fintech industry

B

efore joining FINOLAB, Makoto Shibata, Head of FINOLAB, CCO at the business, had worked in banking and finance for

many years. “I have spent almost 20 years in digital banking, digital innovation and financial services.

124

I joined FINOLAB in April 2019 with the aim of leveraging my years of experience within the digital banking and innovation space to support startups and corporate members within FINOLAB,” says Shibata.

“When I started my career in the industry, online banking had just started. I have seen how online banking and mobile banking have evolved over the years, in particular how smartphones have changed the ways in which customers interact with their banks, and the ways in which new entrants into the sector look to penetrate the market and build relationships with their customers.”

Shibata describes FINOLAB as a fintech incubation office that supports 56 startups with 17 corporate members. “We not only support startups, but we try to connect those startups with corporate members, so that they can pursue their open M AY 2 0 2 0

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2019

Year founded

$3mn

Estimated revenue in US dollars for FY2020

20

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“ In 2017 fintech investments into startups in Japan reached US$105mn, in 2018 it rose to US$542mn, which is about 1% of the global figures, and it is continuing to grow” — Makoto Shibata, CCO, Head of FINOLAB

innovation initiatives,” says Shibata.

“I believe that we are unique because we are located in the heart of the financial district, making us very accessible for all, including large financial institutions, financial people and startups.

FINOLAB was created in 2016, and has had the support of Dentsu Group, the biggest advertising group in Japan, and Mitsubishi Estate, the biggest real estate company. “From these two groups, ISI Dentsu and Mitsubishi Estate have become our shareholders, they have made the investment for making FINOLAB sustainable to support startups and corporate members on a long term basis. So, while we are an independent public company, we are supported by two large companies.”

Currently within Japan, “the Fintech industry is growing”, states Shibata. “In 2017 fintech investments into startups in the nation reached US$105mn, in 2018 it rose to US$542mn, which is about 1% of the global figures, and it is continuing to grow. There is also a big appetite for these financial institutions to promote digital transformation, something which I believe we still have room to grow within Japan,” adds Shibata.

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FINOLAB: Japan’s first Fintech hub in Tokyo’s financial district CLICK TO WATCH

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127 To drive this growth FINOLAB has been collaborating with startups and

initiatives within the financial industry.”

Since becoming independent,

large financial institutions to accelerate

Shibata explains that the company has

innovation. “There are many disruptive

been adopting digital solutions from

initiatives happening within Japan at

multiple startups to become the case

the moment. For example, there is a big

study for startups to make their opera-

drive towards a cashless economy, in

tions more efficient with their digital

which the government is promoting the

solutions. “For example, when it comes

use of digital transactions. FINOLAB

to identity management, accounting,

supports these initiatives by partner-

payments or invoice management, we

ing with startups who use cashless

have been adopting these solutions from

solutions, as well as working with insti-

startups, and by constantly adapting

tutions who are looking to collaborate

these solutions we are trying to make

with cashless startups. We also work

our own operations a testbed for

as an enabler to promote disruptive

them. At the same time we maintain w w w.f i nte c hma ga z i n e. com

FINOLAB INC.

128

transparency to all startup members so

experiences with our startups to apply

that they can learn from what we have

big data and robotic process automa-

been using in our daily operations.”

tion to other areas. We have access

Currently, FINOLAB has limited

to major plays within these emerging

use cases of innovative technology,

trends and have been accumulating

however, some it uses include cloud

case studies within our ecosystem.”

and artificial intelligence (AI). “We learn

Since its establishment, FINOLAB

from different cases within our com-

has helped startups to raise funds and

munity, for example we are using cloud,

provide them with a work environment.

which we have partnered with Amazon

“As part of our support we provide

Web Services, which provides consult-

office environments and facilities so

ing services to our startups. Meanwhile

that startups can come in and start

for AI, we have several startups within

their business. In addition to physical

the community, we share ideas and

support, we connect startups with

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E XE CU T I VE PRO FI LE

Makoto Shibata Mr. Shibata is currently in charge of FINOLAB community operation. In his former position at The Bank of TokyoMitsubishi UFJ, he was leading R&D initiatives in emerging technology and online/mobile financial service. He also held positions in corporate planning, accounting, corporate finance and retail customer services at the bank. He is one of the founders of FINOVATORS and Executive Fellow at Japan Digital Design. He holds a Bachelor of Economics from University of Tokyo and a Master of Science in Development Economics from University of Oxford.

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

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suppliers and professional advice.

We have a mentor group called FINOVATORS, this group consists of lawyers, bankers, venture capitalists, ex government officials and technological experts to connect startups with different stakeholders.” One example of collaboration was between our startup member CAULIS and our corporate member Seven Bank. They together collaborated with The Kansai Electric Power Co. to implement Fraud Detection for Account Opening Using

“ I think our biggest success has been the recognition that FINOLAB has received within the fintech industry in Tokyo” — Makoto Shibata, CCO, Head of FINOLAB

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FINOLAB INC.

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“ We not only support startups, but we try to connect those startups with corporate members, so that they can pursue their open innovation initiatives” — Makoto Shibata, CCO, Head of FINOLAB

133

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FINOLAB INC.

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Power Supply Information. Since many fraudulent accounts are opened at banks using empty house address, they came up with the idea to use power supply data to judge whether the address used has a resident or not. The idea was developed, and they applied for the regulatory sandbox as it was not clear whether an electronic power company can provide information of individual households. And, after testing in the sandbox, they were legally granted to implement. It was one of the early cases of making use of sandbox, and FINOLAB and FINOVATORS supported their collaboration process.

Reflecting on the company’s operations, Shibata believes its biggest strengths are its geographical locations in the heart of the financial district that connects all of its stakeholders to the fintech industry. “I think our biggest success has been the recognition that FINOLAB has received within the finTech industry in Tokyo,” he concludes.

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135

136

Servus Credit Union: the changing landscape of cybersecurity WRITTEN BY

GEORGIA WILSON PRODUCED BY

JAKE MEGEARY

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SERVUS CREDIT UNION

Jakub Mamos, Vice President of IS Risk Management at Servus Credit Union, discusses the evolution of cybersecurity and the adoption of innovative technology

J

akub Mamos has always been intrigued by both the security and technology spaces, especially where the two connect.

“I was always fascinated by computers, encryption 138

algorithms and cryptography in general, as well as the overall concept of security. I started my career working for a utility company in data security, working on systems that were still connected to mainframes. I have been very fortunate to work with very smart people within the industry, who helped me to combine technology and security in a meaningful and productive way. Over the years I have progressed from security analyst to security architect, through to private consulting, working for construction and financial companies,� says Mamos. Today, Mamos is the Vice President of IS Risk Management at Servus Credit Union, which he has been working for since 2011 with responsibilities including operating information risk management, cybersecurity, change management and disaster recovery.

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SERVUS CREDIT UNION

Servus Credit Union: The Servus Origin Story CLICK TO WATCH

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1:10

140

Servus Credit Union is a member-

good credit score, or to help financial

owned and community-based financial

businesses maintain security,” he adds.

institution which dates back to 1938.

Since joining the company nine years

“Servus Credit Union’s primary concern

ago, Mamos has seen the institution

is making sure its members are taken

go through several mergers, consoli-

care of and receive excellent financial

dating its operations in order to be as

products and services, as well as

effective and efficient as possible

committing to sustainability and giving

while maintaining its core mission

back to the community,” says Mamos.

and service to its members. “Over the

“Our vision is to ‘shape member finan-

years we have grown – when I started

cial fitness’, which can be applied in

we had just under $10bn of financial

multiple ways, be it to help people stay

assets, now we have over $16.3bn with

financially fit in terms of planning for

400,000 members, which we plan to

the future, saving and maintaining a

double in the next few years. We have

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also evolved new initiatives in regards to innovative technology to provide the most value for our members.”

Within the industry, Mamos has seen cybersecurity evolve many times over the years. “When I started in the industry, the primary focuses were internal matters such as file security, email security and spam. Compare that to today, where we have advanced levels of criminal activity such as phishing, fraudulent transactions and taking over accounts. Therefore it is important for organisations to remember that, while

“ Our purpose is to ‘shape member financial fitness’, which can be applied in multiple ways” — Jakub Mamos, Vice President IS Risk Management, Servus Credit Union

E XE CU T I VE PRO FI LE

Jakub Mamos Jakub Mamos is the Vice-President IS Risk Management with Servus Credit Union, and a passionate security practitioner.

Jakub has worked in both the physical and information realms of the security industry for over 25 years. His leadership roles in the security space include stints in various industries, including utilities, consulting, non-forprofit, government and financial services. Jakub received his BA in Sociology and Political Science in 1998 and Master of Information Systems Security Management from Concordia University as a member of the first graduating class in 2007, and has held his CISSP designation since 2003.

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141

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“ When I started we had just under $10bn of financial assets, now we have over $16.3bn with 400,000 members, which we plan to double in the next few years” — Jakub Mamos, Vice President IS Risk Management, Servus Credit Union

money around, and while this is a positive for customers, it is important to be responsive in an innovative way to combat criminals and ensure that interconnectivity remains a positive.” To enhance cybersecurity within its own operations, Mamos explains the importance of of data for the company.. “If you don’t know, then you can’t respond.

At Servus Credit Union we are heavily investing in data gathering, monitoring, analysis and automation. We are using a combination of machine learning, artificial intelligence, data analytics, advanced analytics and predictive analytics to detect anomalies and stay

everybody wants to deliver innova-

ahead of potential threats.”

tions and provide their customers and

However, Mamos highlights that

members the best experience as fast

within the world of technology, people

as possible, companies need to ensure

tend to focus on the ‘coolest’ or ‘lat-

that securing those innovations isn’t

est’ technology, sometimes forgetting

overlooked,” says Mamos.

about the principles. “It’s not that we

Other challenges within cybersecu-

don’t use innovative technology, but

rity that Mamos has faced include the

perhaps it is better to call it innovative

lack of borders with digital clients:

approaches. Being able to be respon-

“If you wanted to rob a bank you would

sive is something that in this space is

have to physically be there in order to

unfortunately not a common occur-

execute a robbery. With the intercon-

rence. It is important to go back to

nectivity of different countries and

basics to ensure that the simple things

jurisdictions it’s much easier to move

are in place to build a strong foundation w w w.f in tech ma ga zi n e . c o m

143

SERVUS CREDIT UNION

144

M AY 2 0 2 0

“ If you don’t know, then you can’t respond. At Servus Credit Union we are heavily investing in data gathering, monitoring, analysis and automation” — Jakub Mamos, Vice President IS Risk Management, Servus Credit Union

for digital transformation.” In addition to this approach, Mamos states that Servus Credit Union is working to truly integrate security within every aspect of the organisation, as well as authenticating all internal communications.

“It’s more than just an add on - security provides value in ways that people may not have originally thought. Security technology monitors for potential anomalies in vast amounts of data, and sometimes anomalies are not always security related. Sometime the analysis w w w.f in tech ma ga zi n e . c o m

145

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of data can lead to business opportunities, adding more than just assurance and security to a business.”

When it comes to security management, Mamos highlights the importance of managing the ‘human element’ of cybersecurity. “In our environment, security is people, process and technology, and they all have to work in unison. No matter how good your process and your technology is, you need to invest in people in order to see the biggest value. Which is why we invest in education, working with people and explaining the purpose of a new M AY 2 0 1 9

process or technology to increase the

Big Data, data analytics, machine

effectiveness of our security.”

learning and artificial intelligence are

Key trends Mamos is seeing within

really important. Data governance is

data analytics, Big Data and data gov-

the same in terms of maintaining data,

ernance are the increases in pragmatic

managing it and providing direction in

approaches. “In today’s economic

order to enable business disruption,

climate you have to be able to show the

while ensuring you are compliant with

value. We have been entrusted with all

rules and regulations.”

that data to make security decisions

When reflecting on the organisa-

and offer protection, so we need to

tion’s operations, Mamos highlights

look beyond assurance, protection and

that he is “very fortunate to have a

security, to look at how we can utilise

core group of partners that I can rely

it even further. Which I think is where

on no matter what. Our partners are an important part of our operations to drive innovation and success.” When forming these partnerships Mamos explains that, although it’s a simplistic approach, he looks for companies that “treat people how they want to be treated. “I am very transparent and direct with our partners while maintaining ethics,” he says. Accordingly, Mamos believes that Servus Credit Union’s biggest strengths are “being a diverse, member owned organisation.”

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147

A SUPERIOR CUSTOMER EXPERIENCE

148

WRITTEN BY

WILL GIRLING

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PRODUCED BY

JAMES PEPPER

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RAIFFEISEN BANK KOSOVO

Shukri Mustafa, COO/CIO of Raiffeisen Bank Kosovo, describes the bank’s mission to use continuous innovation to improve the customer experience

T

he story of Raiffeisen Bank Kosovo (RBK) begins in 2002, when the Austria-based company Raiffeisen Bank International

AG (RBI) established itself in the territory.

Following the 100% acquisition of the American 150

Bank of Kosovo’s shares, RBI rebranded it with its current name in 2003. Offering its individual and corporate customers a wide variety of products and solutions, including financial services, asset management and loans, RBK also prides itself on an innovative approach to banking, which ensures its clients receive the highest-quality experience possible. Leveraged through careful research of the latest technology and strategic investment in its IT and Operations departments, RBK’s thoroughly modern outlook was awarded the first Registered Quality Assurance ISO 20000 certification in Kosovo.

Heading up RBK’s digital transformation is Shukri Mustafa, Chief Operating Officer and Chief Information Officer. Coming from a financial, insurance and banking background, Mustafa’s previous M AY 2 0 2 0

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RAIFFEISEN BANK KOSOVO

“ We are upgrading our core banking system, which will help our front line staff know our customers better by having the analytical CRM in front of them”

experience as an entrepreneur, non-profit manager and relationship manager illustrated to him early on how important linking the customer experience with technology is. When he became a member of RBK’s board in 2007, the Bank implemented a three-point-plan to drive the changes it considered to be necessary: updating out-dated systems, creating an infra-

152

— Shukri Mustafa, COO/CIO, Raiffeissen Bank Kosovo

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structural shift and introducing new business applications. “The legacy of our systems made us consider ‘if we

Agile E-banking CLICK TO WATCH

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4:26

153

want to be at the cutting-edge and

Mustafa expounds. “We are upgrading

ready ourselves for the digital changes

our core banking system, which will

that the market will require, RBK will

help our front line staff know our cus-

need to change’,” he says. “So, that’s

tomers better by having the analytical

where we started.”

CRM (customer relationship manage-

Introducing a suite of new electronic

ment software) in front of them.” RBK

services, including e-banking and

has also introduced Viber banking - a

mobile banking, RBK fully embraced

cross-platform IM (instant messag-

the digital era by providing its custom-

ing) application - which enables the

ers with next-gen communications

company to give its clients convenient

and intuitive services. “We introduced

access to necessary services, such

chatbots to assist customer service

as account information, processing

and gain a better understanding of

transactions, balance enquiries and

what people think about our products,”

statement history. Viber also gives w w w.f i nte c hma ga z i n e. com

STRONGER TOGETHER InfoSoft Systems, specialized in system integration, provides technological consultation, implementation and support services to small, medium and large size organizations. One of first ICT companies, Infosoft Systems has become a regional leader.

With over 300 employees in Albania, Kosovo, North Macedonia and several international partnerships, its collaborative approach delivers innovative solutions. InfoSoft Systems is part of the larger InfoSoft Group, which comprises 15 business units.

LEARN MORE

open doors and encourage new stu-

Looking ahead to 2020 and beyond,

dents to work for us. We achieve that

RBK, like every bank, must explore

by introducing fresh ideas and ways of

ways to retain its customers and attract

working that young people would like

new ones. “It’s hard to try and market

to see.” The bank is also organising

for Generation X and Y. RBK is meas-

‘hackathons’ at the university, wherein

uring itself at all times to guarantee

students can experiment and explore

customer satisfaction and keeping the

the potential of data analytics. The

organisation alert and agile,” Mustafa

bank’s spirited attitude also led to it

says. This makes defining a clear

recently employing QR coupons in

corporate strategy and liaising closely

stores, utilising augmented reality

with partner companies absolutely

through a downloadable app, in order

essential. Collaborators like InfoSoft

to make banking a more enjoyable,

Systems and Temenos , providers

interactive and fun experience.

of specialised system integration

E XE CU T I VE PRO FI LE

Shukri Mustafa Shukri Mustafa is a Board Member and Chief Operation Officer at Raiffeisen Bank Kosovo. He is responsible for IT and operations management in the bank. Mr Mustafa leads agile teams that deliver measurable results using tools such as Agile module and Canban. He has twelveyears’ experience in managing operations and IT in his current role. He is also a consultant in Raiffeisen Bank Albania for Operations, IT Area, Project office, Cost Management, Facility Management, Lean Management and IT Security.

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155

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157

“ RBK is measuring itself at all times to guarantee customer satisfaction and keeping the organisation alert and agile” — Shukri Mustafa, COO/CIO, Raiffeissen Bank Kosovo

solutions, have been essential in helping RBK shape its approach. “As a bank, we invite our partners to sit with us so that they can understand what we want, conduct market research for us and come up with different ideas,” he explains. “InfoSoft Systems and Temenos go further: it looks at things from the client’s perspective and helps us stay one step ahead.”

When asked how he would characterise his methodology for implementing digital transformation, Mustafa says that it’s based on offering w w w.f i nte c hma ga z i n e. com

RAIFFEISEN BANK KOSOVO

158

“ We want to become the most recommended financial service group on the market”

RBK the opportunity to engage with its customer base in a revolutionary way via personalised promotional activities.

Displaying a keen awareness that the symbiosis of people and technology can yield highly successful results, RBK has become a champion of innovative fintech startups and emerging talent within the sector. A platinum sponsor of the University for Business

— Shukri Mustafa, COO/CIO, Raiffeissen Bank Kosovo

M AY 2 0 2 0

and Technology, Mustafa explains that the company is dedicated to investing in the people who will help to shape the bank going forward. “RBK wants to

encryption. Account fraud, transaction monitoring, data leakage prevention, incident handling, threat intelligence - these are things that clients aren’t directly aware of, yet they’re vital to making clients feel safe when they use our digital channels.”

Although investing in the newest technology can yield a more modern experience, what RBK is achieving is a rare feat: a service which feels personal, secure and cutting-edge.

Its corporate culture, which prioritises delivering superlative customer experience, is what helps set the bank apart from its competitors. RBK is striving to unite its customers with the superior customer service and making

digital age’s greatest opportunities in

the banking procedure as easy as pos-

a way which feels innovative and fresh.

sible. Whether it is through the use of

“Making sure the customer has an easy

artificial intelligence or machine learn-

experience is very important to us,”

ing software to make data easier to

Mustafa concludes. “The customer

navigate or enhanced security features

experience is RBK’s mission and its

to put customers at ease, RBK is con-

vision. We want to continue to be the

stantly exploring people-centric ways

number one Bank in Kosovo”.

of modernising its products. “We have introduced fingerprinting, face recognition and biometrics,” he explains.

That’s on the side our clients see, but, behind the scenes, we also invest a lot in security - especially on data w w w.f i nte c hma ga z i n e. com

159

Rogers Capital: evolving financial services

160

WRITTEN BY

DANIEL BRIGHTMORE PRODUCED BY

JUSTIN BRAND

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R O G E R S C A P I TA L

Rogers Capital leverages in-house synergies to drive a digital transformation strategy based on employee and customer experience and operational excellence

“

I

have always been driven by curiosity,” reveals Evyn Valayten, Head of Digital Transformation at Rogers Capital. “We

are looking for new ways of working and finding solutions to the problems our teams face.”

Valayten is part of the DNA of Rogers Capital; 162

in his 17th year with the company, he has been tasked with driving a four-year strategic transformation plan for digital and culture change.

This strategic plan is based on three key pillars: Employee Experience, Customer Experience and Operational Excellence.

A DIGITAL TRANSFORMATION JOURNEY “We are in the first year of a four-year journey that starts with our employees,” explains Valayten.

“We have begun with the release of our employee portal; because we know if our staff have a positive experience, this will reflect well with our customers. We did several workshops with higher management and operations chiefs and chose to focus on our internal teams to start this journey. On the first release of this portal, we M AY 2 0 2 0

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R O G E R S C A P I TA L

“ I have always been driven by curiosity; we are looking for new ways of working and finding solutions to the problems our teams face” 164

— Evyn Valayten, Head of Digital Transformation, Rogers Capital

have delivered a self-service solution to make the headshot process paperless.

“It is important that we correctly define digital transformation,” reasons Valayten. “Simply put, it is the ability to understand how technology can deliver value to customers. It is not purely about the tools themselves, but how to leverage the capabilities of these tools to take advantage of new opportunities.” Valayten stresses the importance of asking probing questions at Rogers Capital to define what its digital transformation journey needs to achieve. He believes it is important to know yourself and who you want to be, understand your resources in terms of budget and skill sets, assess competition and their proposition as well as never losing sight of the end customer and how best to reach and service them. That journey is made easier by synergies across the business which give Valayten’s team in-house support, more specifically, support from RCTS. “We have a technical team of 125 FTEs, able to design, implement and secure everything from laptops to high-end servers.”

M AY 2 0 2 0

Digital Transformation CLICK TO WATCH

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0:36

165

BUILDING INTELLIGENT SOLUTIONS

choosing the experience first, and

Tackling legacy systems and pro-

then the technology to meet that

cesses in a push to go paperless

need. “We have been workshop-

is a vital part of Valayten’s team’s

ping around our staff experience,”

culture change mission. “We are

he confirms. “Around 75% of our

investing in Intelligent Business

team working has been a backward

Process Management (iBPM) to

strategy – looking at the situation

move towards phasing out printing

and how we can make it better, then

and manual signing. We are testing

choosing the technology that would

Robotic Process Automation (RPA)to

enhance the process. We can see

give time back to our employees by

the culture change already as our

relieving them of repetitive tasks.”

people are coming up with new ideas

Valayten believes the key to a

and participating in the ecosys-

successful digital transformation

tem we are building with a cycle of

journey is working backwards by

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

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explains Valayten. “This gives us real-

Over the past two years, Rogers

time access to data anywhere while

Capital has been working with the

keeping cybersecurity paramount.”

app’s developer, Tagit, to support

In the push to go paperless,

its financial services division. The

Rogers Capital needed a user-

Singaporean company is behind

friendly solution. Multiple solutions

the award-winning Mobeix digital

were considered but Valayten

engagement platform that enables

explains that the document manage-

banks and government entities to

ment system from M-Files has been

create and enhance their digital capa-

a sterling addition. Over the past

bilities. “Internally, an iBPM solution

decade, M-files has been used for

was implemented for Rogers Capital

migrating data from file servers with

to build solutions around web apps

reliability and speed to provide docu-

to the mobile app in iOS or Android,”

ment-scanning services for clients.

Evyn Valayten

E XE CU T I VE PRO FI LE

Evyn Valayten is Rogers Capital’s innovation leader. He joined the company in 2003 and has spearheaded the development of new technology solutions since 2015. “A truly digital company works as a network of connected dots rather than in a hierarchical structure,” says Valayten, who urges that digital companies need to move, adapt and fail fast.

As head of Digital Transformation at Rogers Capital, his focus is on breaking the silos, increasing crossfunctional collaboration and removing extra management layers. “The fewer the layers, the faster decisions will be made,” he says.

“All these equal, a new corporate mindset can be developed for success.” w w w.f i nte c hma ga z i n e. com

167

R O G E R S C A P I TA L

168

“ We can see the culture change already as our people are coming up with new ideas and participating in the ecosystem we are building” — Evyn Valayten, Head of Digital Transformation, Rogers Capital

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R O G E R S C A P I TA L

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• Digital & Data Service • Managed Connectivity • Endpoint Services • Data Centre • Information Security Advisory Financial • Consumer Finance: Personal & Business – Hire, Credit & Leasing

M AY 2 0 2 0

RISING TO THE CHALLENGE “We are hoping to expand the team of developers working with us,” says Valayten. “However, it has proved difficult finding developers with the right technical skills to be the architects here in our sector. One of my main worries for the coming years will be the need to outsource to achieve the required competencies as we add new solutions to our growing list of services. Developing these new modules is key to how we deliver to 171

our clients.”

Managing expectation with change is a balancing act for Valayten.

“These days, everybody wants everything quickly,” he says. “Our teams are keen to get new functionalities and the appetite for change is growing. However, we must work at a steady pace within the framework of testing to ensure the security of new solutions.”

REACTING TO THE TRENDS “The trend today in many companies is firstly implementing digital tools and then forcing outdated policies and procedures over them,” says w w w.f i nte c hma ga z i n e. com

R O G E R S C A P I TA L

172

“ Our teams are keen to get new functionalities and the appetite for change is growing” — Evyn Valayten, Head of Digital Transformation, Rogers Capital M AY 2 0 2 0

Valayten. “We often hear of success stories of Airbnb and Uber and it is crucial to recognise that one important and common feature with these enterprises is that they were born digital. If your company already has a strong culture and has been successful before the digital age, it will most likely be difficult for you to be the next Airbnb, or to even learn from their experience. We need to learn from those non-digital native

2016

Year founded

5,600 Number of employees

173

companies, learn from their suc-

same kind of experience, and we are

cesses and failures as they had to go

supporting that with our employee

through the challenge of unlearning

and customer portals to reflect that

non-digital ways of working.”

desire internally and externally with

Access to information 24/7 has

new ways of working.”

become the norm today, Evyn notes.

“You want to buy something? You just go on Alibaba’s website and within minutes you are done making your purchase and waiting for the delivery.

I see that desire in our businesses.

Our customers are looking for the w w w.f i nte c hma ga z i n e. com

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Solidarity: embracing change at scale in insurance WRITTEN BY

SEAN GALEA-PACE

PRODUCED BY

JORDAN HUBBARD

M AY 2 0 2 0

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S O L I D A R I T Y S A U D I TA K A F U L C O M PA N Y

Raid Bakri, CIO of Solidarity, discusses his company’s digital transformation journey and the significant culture shift embraced by the organisation

B

ased in Saudi Arabia, Solidarity Saudi Takaful Company offers a range of the highest quality insurance products in

the Kingdom.

Overseeing the company’s digital transformation is Raid Bakri, CIO of Solidarity. Having worked for sev176

eral large organisations such as Al-Rajhi Takaful and AXA Cooperative Insurance prior to joining Solidarity in 2018, Bakri has a comprehensive understanding of the insurance landscape and what is required to succeed in the digital world. “When I joined it was very important to hit the ground running,” he says. “The Solidarity CEO explained to me what he wanted to achieve for the company in its digital transformation, in addition to the services they wanted to launch. I built a straightforward agile strategy and outlined what we were going to deliver and committed that we’d do our best to deliver it within a year. And I’m very pleased to say we have achieved a 513% growth over the last 12 months in the services that were digitised.”

Such growth has come to fruition due to Bakri and his team’s determination. In the past, Bakri believes that Solidarity wasn’t regarded as a major force M AY 2 0 2 0

177

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S O L I D A R I T Y S A U D I TA K A F U L C O M PA N Y

“ Optane will help us with configuring faster calculation engines, web applications, data access and anything that requires advanced caching facilities” — Raid Bakri, CIO, Solidarity

cloud, Bakri says his company has no immediate plans to move all of its services over. “One of the key things we had to do was evaluate our infrastructure

178

in the local Saudi Insurance industry.

and really determine what we have and

“Previously, no one really considered

how to optimise our capacity,” he says.

Solidarity as one of the key players in the

“There is a lot of talk around the cloud,

market,” explains Bakri. “However now,

and of course the cloud is important, but

I believe the outlook has changed, mainly

there are regulations that don’t allow us

because our competitors have taken

to transition there easily. I don’t really see

notice of the decrease in their online

much cost optimisation in moving every-

market shares in specific segments,

thing to the cloud because it’s still a niche

this is due to the online services and

set up in Saudi Arabia. The cost would

platforms we have launched. In some

end up costing organisations more as

segments, we’ve been able to capture

opposed to hosting your own infrastruc-

a 30-40% market share online in less

ture on-premise. And it was decided to

than a year.” Despite the rise of the

bring the cloud on-premise” Instead, Bakri believes in partnerships and has the drive to look closer to home and upgrade current processes.

“I partnered with several local vendors that I have good experience with and we launched a project to upgrade our current infrastructure. We went with hyper-converged infrastructure (HCI)

M AY 2 0 2 0

private cloud architected by Solidarity

has allowed us to do 329,000 IOPS per

and HPE. HPE and Intel were testing a

second across four virtual servers. The

technology called Optane.” Optane is a

Optane setup has made this capacity

memory module created to accelerate

possible,” says Bakri. “Optane will help

data access speeds. It provides a better

us with configuring faster calculation

computing experience for the front-end

engines, web applications, data access

services allowing the applications to

and anything that requires advanced

fetch the data faster, from calculation

caching facilities, this will allow us to

engines to web applications, this tech-

serve our customers through web plat-

nology can be used anywhere in the

forms faster than the competition. That’s

organisation’s systems architecture.

what sets us apart.”

The technology uses 3D XPoint, a new

Bakri recognises the importance of

type of memory technology that its

change management and believes it is

manufacturers, Micron and Intel, claim

one of the most challenging aspects of

is 1,000 times faster than traditional

any transformation programme. “It’s

NAND flash. “Our front-end setup

one of the hardest things that we’ve

“Private Cloud” enabled with the tech

done,” admits Bakri. “It’s all about w w w.f i nte c hma ga z i n e. com

179

If you believe you can do anything, we’re here to help you do it One People. One Name. We’re on a journey to become one.

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We help you visualize your digital future, and translate your business needs and desired outcomes into IT strategy and architecture plans

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We help you support your technology environment, minimize business disruption, and improve operational efficiencies

We take over your dayto-day operations to enhance your IT and business functions, and enable IT agility and scalability

“ Ultimately, the best idea always wins” — Raid Bakri, CIO, Solidarity

believes a culture shift was essential or his company would run the risk of stagnating its growth. “Internally, we had to change the mindset and become more visionary. Ultimately, the best idea always wins. It’s important that everyone has his/ her say,” he says. “I started to operate in

collaboration and understanding rather

Solidarity with a startup mindset. I told

than any individual’s effort. When I first

my team to forget about the past and

came on board, there was initially some

focus on the future. I believe a key reason

resistance in trying new ways of doing

why we’ve been able to achieve so much

things. However, I felt it was important

in such a short space of time is because

and I explained that change was neces-

of that startup mentality we encouraged.

sary in order to reach our goals.” Bakri

2019 was the turning point for Solidarity

Raid Bakri

E XE CU T I VE PRO FI LE

An information technology expert and visionary with strategic expertise in implementing complex IT Digital Transformation projects, and 19 years of experience in the IT field, including 9+ years within the insurance industry. He is acknowledged for having an integrated set of competencies in the IT field ranging from managing DevOps and executing large Digital transformation programmes and leading large diverse teams from both the business and IT by breaking down the department silos ensuring agile collaboration to get job done. Bakri possesses a proven record of accomplishments in delivering innovative fluid solutions in a strategic agile manner, focusing on customer centricity, people centricity, efficiency and technology revolution & evolution.

He is known for contributing to the bottom-line in all business areas to ensure value-added functions, facilities and quick to market deployments, are delivered all while improving operational excellence, increasing departmental productivity and optimising costs. w w w.f i nte c hma ga z i n e. com

181

S O L I D A R I T Y S A U D I TA K A F U L C O M PA N Y

Takaful. If that digital culture shift hadn’t happened last year, we wouldn’t be in the position we’re in now and it would be a very different story.”

Saudi Arabia itself is in the midst of a significant transformation in its history.

The Saudi Vision 2030 is the Kingdom’s ambition and plan to reduce its dependency on oil, by diversifying its economy and developing its public and private sectors such as health, education, infrastructure, recreation, technology, aerospace, tourism and many other sec182

tors. With the Saudi Vision mindset by his HRH Crown Prince Mohammed bin Salman, Bakri believes that customercentricity and easy to use services are at the heart of this transformation and Solidarity’s strategy is aligned with it

“ It’s all about collaboration and understanding rather than any individual’s effort” — Raid Bakri, CIO, Solidarity M AY 2 0 2 0

moving forward. “To me, the Saudi Vision is all about providing the best-in-class service for all segments exceeding worldwide standards and becoming a leader in setting the standard on how to service our nationals, visitors and guests.

We want everyone to live and render services comfortably,” explains Bakri.

“You don’t need to walk into a branch or be bound to a specific location to

183

purchase your insurance policy or render

anything were to happen to your assets

a service anymore, I call this practice

that are insured with us, we will return

the traditional way. We should enable

it to its former state, with as little effort

our customers to purchase and render

required from the comfort of your home

service from anywhere and any time. It’s

or wherever you may be by enabling digi-

very important to be a service-driven

tal channels and services.�

organisation rather than a profit-driven one. If we focus on the services, the profit will follow. At the end of the day, we are selling people a promise that if w w w.f i nte c hma ga z i n e. com

184

M AY 2 0 2 0

Knowledge, experience, commitment: Bleakley leverages fintech WRITTEN BY

JOHN O’HANLON PRODUCED BY

SHIRIN SADR

w w w.f in tech ma ga zi n e . c o m

185

BLEAKLEY FINANCIAL

Bleakley Financial’s CDO Kyle Wesley discusses digital transformation in a growing asset and wealth management company

B

leakley today has a team of some 43 advisors on its team, managing more than US$6bn in client assets. In 2015, it

decided to go independent and spin out from the umbrella of Northwestern, opting to provide advisory services through LPL Financial’s hybrid RIA 186

platform for its custodial and brokerage services.

Since then, Bleakley has doubled assets under management, attracting more than 15 new advisors since the beginning of 2018 alone.

Bleakley has expanded its footprint to a dozen offices nationwide, the latest at Dayton, Ohio. The headquarters, where most of its 80-plus staff work, remains at Fairfield, NJ and the sum the firm manages is between advisory, financial planning brokerage and 401(k) retirement planning business, according to Kyle Wesley, who joined Bleakley’s leadership team early in 2016 and has been Chief Digital Officer (CDO) since May 2019.

To an organisation like Bleakley Financial, financial technology or fintech is the key to not only to the reliable and smooth running of its operations, processes and communications, but also to its M AY 2 0 2 0

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BLEAKLEY FINANCIAL

“ We eventually went to RedBlack, which we felt was by far the best fit specifically for our business” — Kyle Wesley, CDO, Bleakley Financial

ability to continue to expand. “I am responsible for all of our internal digital technology, setting up compliant practices when new offices are onboarding, making sure they understand that technology, making sure that we’re reviewing our internal technology and generally ensuring that we function day-to-day,” explains Wesley.

Before he came on board, Bleakley had committed to Morningstar’s tRx (Total Rebalance Expert) solution for household rebalancing alongside its

188

core portfolio accounting platform Orion. It was an ad hoc decision that worked well at the time, he explains, though after a while tRx showed it wasn’t flexible enough to service clients’ portfolios across the book in a tax-efficient way and update their legacy positions. Rebalancing portfolios at scale when Bleakley has more than 10,000 accounts on its books, each containing a complex mix of assets, is a hard-to-solve challenge. “This led us to look at other platforms; we eventually went to RedBlack, which we felt was by far the best fit specifically for our business.”

Bleakley needs to be flexible around M AY 2 0 2 0

Fourth Quarter 2019 Analysis & 2020 Expectations CLICK TO WATCH

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5:41

189 its standard portfolios and also to be

and we need to segment out different

able to move tactically to take advan-

groups because one group may oper-

tage of movements in the markets,

ate a little bit differently than another.”

something that was not easy under

The need to have multiple users of

the former system. “Now when our

the system doing 100 tasks simultane-

advisors make a decision to buy a par-

ously and efficiently is what led them

ticular asset we can see at once what

to RedBlack, he says. “We can run

the sale price is, and then go back and

hundreds of accounts a minute, where

prorate other securities down to move

previously we didn’t have that ability.

fast and at scale, seamlessly across

So as we grow, it’s just become more

our entire database. As the firm contin-

and more important that we can trade

ues to grow we need that flexibility to

seamlessly right across the whole

satisfy our clients’ needs. At the same

book of business.”

time we need to be able to administer

For Kyle Wesley, Bleakley’s com-

it; our analysts do most of the trading,

mitment to its clients from corporate w w w.f in tech ma ga zi n e . c o m

BLEAKLEY FINANCIAL

190

executives and large institutions to

had served well, but once again, added

small business owners and retirees

flexibility was felt to be needed in the

dictates the focus of the digital trans-

CRM platform, tying in advisors and

formation he leads. Last year has been

clients with sales fluctuations and a

a busy one for him and his team. As

number of other variables. The plat-

well as onboarding new businesses

form chosen was Practifi, which now

in some numbers and concluding the

overlays Salesforce. “The move was

shift from tRx to RedBlack they have

in response to the growing number of

affected a radical upgrade in their

requests we were getting from users,”

approach to CRM. For a company

says Wesley. “We encourage staff to

whose credibility lies in the trust of its

speak up when they have an idea. We

customers, this was an operation that

couldn’t execute on a number of those

had to be carried out with sensitivity.

ideas given our current Salesforce

The functionality within Salesforce M AY 2 0 2 0

environment.” We were telling them

they could make small changes like

you’re dealing with a CRM migration,

adding a field here and there, but we

every single user in the office has

couldn’t make big changes which is

their business disrupted. As advisors

what an office our size needed.”

prepare to review for a client I need

The migration from standard

to know all the past interactions and

Salesforce to Practifi involved a true

planning notes. Now I have AUM, my

database migration as opposed to a

clients, their family members, dates

plug and play implementation, and car-

of birth, emails – everything – on a

rying this out successfully is, he says,

one page tear sheet, something we

the achievement he and the team are

couldn’t even have dreamed of in the

proudest of since it was so challeng-

old system.”

ing. “When you are making changes

And, at the same time, he’s able to

to a trading platform you are perhaps

get metrics more reliably through

affecting a quarter of the office: when

Salesforce, with neat data integrations

E XE CU T I VE PRO FI LE

Kyle Wesley Kyle Wesley is the Chief Digital Officer for Bleakley Financial Group. He officially joined the firm in 2016 but worked very closely with its operations team as a Senior Trader with LPL, one of Bleakley’s five custodial platforms. After joining the firm, he became an integral part in the expansion of its technology platform – from enhancing its reporting capabilities to implementing a new CRM system for its advisor teams. Kyle’s key focus is to continue growing the digital platform of Bleakley, ensuring that the experience benefits both the advisors and its clients. w w w.f in tech ma ga zi n e . c o m

191

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Rebalancing | Trading | FIX Solutions

“ When you are making changes to a trading platform you are perhaps affecting a quarter of the office: when you’re dealing with a CRM migration, every single user in the office has their business disrupted” — Kyle Wesley, CDO, Bleakley Financial

with Orion. “Orion is definitely the data hub of everything,” he explains.

“Data flows from custodians like LPL, Pershing, Schwab, TD and Fidelity into Orion where it’s reconciled and made available by 0830 Eastern Time each day. We can migrate that information to Practifi/RedBlack to display it to our advisors. This is a very robust system.”

At a guess he reckons the new systems have doubled the internal efficiency of the business. It has definitely increased the capacity of Bleakley’s analysts and client service associates to get data to the advisor quicker,

About Bleakley CLICK TO WATCH

|

4:41

w w w.f in tech ma ga zi n e . c o m

193

BLEAKLEY FINANCIAL

194

CO MPAN Y FACT S

Bleakley Disclaimer Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Bleakley Financial Group are separate entities from LPL Financial.

M AY 2 0 2 0

“ We can run hundreds of accounts a minute, where previously we didn’t have that ability” — Kyle Wesley, CDO, Bleakley Financial

prepare for their meetings, and made them more proactive in growing their business. Within such a diverse organisation people accept change at different speeds, Wesley admits.

“Some people struggled with the CRM migration but now we’re getting feedback that it was the best decision we’ve ever made, and that they love the Practifi migration!”

Bleakley’s vision is to become the top wealth management firm in the Northeast area, doubling its size in the next four or five years. It will depend heavily on digitisation of its operations to achieve that. “We’re recruiting heavily right now,” concludes Kyle Wesley. w w w.f in tech ma ga zi n e . c o m

195

BLEAKLEY FINANCIAL

196

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197

2015

Year founded

$6bn

Revenue under management

80

Number of employees w w w.f in tech ma ga zi n e . c o m

BLEAKLEY FINANCIAL

199

“ We’re trying to create a company and a culture that allows advisors to do what they’re best at”

“Unlike some of the big wirehouses, we’re trying to create a company and a culture that allows advisors to do what they’re best at and make sure we actually align with their goals. When someone asks: what does your advisor do for you? We want our clients to say, “Everything – Bleakley literally does everything for me!”

— Kyle Wesley, CDO, Bleakley Financial

w w w.f in tech ma ga zi n e . c o m

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M AY 2 0 2 0

Defence Health: defence community health insurance WRITTEN BY

WILLIAM SMITH PRODUCED BY

ANDREW STUBBINGS

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

201

D E F E N C E H E A LT H LT D

Defence Health Limited leverages technology to better deliver health insurance to the Australian defence community

202

D

efence Health provides health insurance for the Australian Defence Force (ADF) and the wider defence community. The

company was founded in 1953, and is dedicated to supporting members with managing the health care of themselves and their families. Today, the company counts more than 260,000 Australians among its members.

Those eligible for membership include ADF members, their partners and children. In the wider defence community, Defence Health also includes World War II veterans and ADF members returning to civilian life. The company also caters to past and present employees of the Department of Defence and other defence related departments, defence suppliers and the extended families of past and present ADF members, from parents to siblings and grandchildren.

M AY 2 0 2 0

203

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

Oracle enables Defence Health Insurance Transformation Defence Health has partnered with Oracle Health Insurance for its core technology platform as it embarks on its digital transformation journey.

“The goals we're trying to achieve with the Oracle platform is to enhance member experience through digital processes and needs that they're expecting from us today.

Defence Health enhances the customer experience through digital with Oracle Health Insurance

This decision was driven by the need for an agile, proven health insurance solution that enabled health insurers to simplify healthcare IT, achieve greater levels of operational efficiency, reduce costs, and adapt quickly to ongoing market and regulatory demands.

With this partnership, Defence Health will be able to leverage the global best-in-class o�ering from Oracle Health Insurance to drive member engagement and adapt to market needs locally. The platform enables Defence Health to automate processes and increase its auto-adjudication rates by using business rules-driven processes.

We using the Oracle Health Insurance platform because it's modernized and got a whole heap of APIs that we can utilize to become a �exible platforms into our digital transformation journey, as well.

Joanne Kadlecik Chief Operations O�cer Defence Health

CONNECT WITH US oracle.com/healthinsurance blogs.oracle.com/�nancialservices linkedin.com/showcase/oraclefs twi�er.com/oraclefs

Oracle Health Insurance Oracle provides an innovative Core Administrative Processing Solution for Health Insurers to drive Group, Individual, Medicare, TPA and ASO businesses. Health insurers can optimize administrative costs, increase operational e�ciency, streamline claims processing, improve billing accuracy and elevate the member experience, whether on-premise or in a secure Oracle Cloud.

Learn more at oracle.com/healthinsurance

Defence Health: Transitioning from Defence CLICK TO WATCH

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3:46

205

The company emphasises the focus

cover and limits and making claims.

on members as opposed to profit,

That latter function is made possible

operating on a not-for-profit basis with

with an online portal or via a mobile

no shareholders and with contributions

app, which allows for the submission

staying in the fund in order to give back

of receipt photos.

more in benefits and keep premiums

Internally, the organisation has

low. A choice of providers is main-

switched to Oracle Health Insurance to

tained, with benefits being received

enable and support its digital transfor-

no matter the provider visited. 94%

mation. With the platform already being

of every premium dollar in 2018 went

used by insurers across the world,

back to members in benefit.

Defence Health last year became the

Technological solutions are another

first Australian private health insurer to

focus. Joining, for instance, is made

utilise the technology. HealthDispatch

possible entirely online, as is viewing

quoted Defence Health CEO Gerard w w w.f i nte c hma ga z i n e. com

6

D E F E N C E H E A LT H LT D

“ The organisation has switched to Oracle Health Insurance to enable and support its digital transformation�

M AY 2 0 2 0

207

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

C O M PA N Y N A M E

Fogarty as saying: “The service experience for our members is paramount.

We need a highly agile technical platform if we’re to meet the digital expectations of our members. [...]

We’re renowned for our excellent customer service and this investment is vital if we’re to maintain our high levels of member satisfaction.”

The company also professes a focus on issues particularly peculiar to Australia, such as bushfires – with the 2019–20 Australian bushfire season

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209 being bad enough to have earned the colloquialism of ‘Black Summer’. In a blog post, the company emphasised the toll on mental health such events can take, saying: “Anxiety, depression and other mental health issues are the most common reason for Australians living anywhere to seek medical attention. But in the bush, where help is so much harder to find, the problem is particularly acute.

“As a result, suicide rates are much higher in Australia’s rural areas than in the big cities, and almost double in very remote rural areas.”

“ The company

emphasises the focus on members as opposed to profit, operating on a not-forprofit basis” w w w.f i nte c hma ga z i n e. com

D E F E N C E H E A LT H LT D

210

“ Members can have confidence in the prudent, ethical and responsible management of their health fund” — Major General Gregory Garde, Chairman, Defence Health M AY 2 0 2 0

According to statistics quoted by the company, one in five Australians will experience mental health illnesses during their life. Consequently, aside from offering professional mental health help, the company has said: “Make use of art, listen to music, or even keep a journal to help gather your thoughts and express yourself. Take up a hobby and set small, achievable goals – and don’t give up on them. Small wins can have a big impact on your mood.”

Staff surveys report very high levels of engagement and satisfaction; and members indicate outstanding levels of satisfaction for the service they receive.”

He continued: “Members can have confidence in the prudent, ethical and responsible management of their health fund. We have a skilled and experienced Board of Directors which rigorously reviews management’s proposals. I am grateful for their dedication and unwavering commitment to the health and wellbeing of our members.”

Recently, the firm was named ‘Major Private Health Insurer of the Year’ in the Roy Morgan Customer Satisfaction Awards. Roy Morgan’s CEO Michele Levine said of the awards that they Defence Health’s 2019 report outlined

are “the gold standard in recognising

the fact that total benefits paid reached

companies and brands that stay ahead

some A$517.9mn, while extras benefits

of the pack by knowing what their

paid reached $137.4mn. Having had

customers want and delivering it con-

1894 births, 732 knees replaced and

sistently.” Its focus on customer service

295,570 people covered, the company

has also led to it being awarded with

reported 98% member satisfaction.

the Financial Review’s Smart Investor

Chairman Major General Gregory

League of Exceptional Service Awards.

Garde said in the report: “I would like to highlight the enthusiastic and genuine passion of Defence Health staff for their work and interactions with members. w w w.f i nte c hma ga z i n e. com

211

212

M AY 2 0 2 0

Resolution Insurance: tech-driven insurance evolution WRITTEN BY

GEORGIA WILSON PRODUCED BY

JUSTIN BRAND

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

213

RESOLUTION INSURANCE

Francis Ngari, Head of Digital at Resolution Insurance, discusses current technology trends within insurance and the company’s digital transformation journey

F 214

rancis Ngari, Business Information Technology graduate from Strathmore University (Kenya), has been the Head of

Digital at Resolution Insurance since August 2018.

Prior to joining the company in 2010, Ngari worked at James Finlays and Swift Global.

Ngari describes Resolution Insurance as a young, ambitious and determined company that is striving to be the provider of choice for insurance solutions in Kenya. With 18 years under its belt, Ngari notes that “to date, Resolution Insurance – based on turnover – ranks seventh among the 37 general insurance companies in Kenya’s insurance landscape, sitting proudly among the top 15 that have more than 25 years additional experience.”

Over the years, Ngari has seen Resolution Insurance evolve from an independent medical insurance provider, operating under Resolution Health, into a registered insurance company operating under Resolution Insurance Limited. “We M AY 2 0 2 0

215

2002

Year founded

5.2bn

Revenue in Kenyan Shilling

200

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

RESOLUTION INSURANCE

“ Over the last two, there are certain words that never fail to get mentioned when it comes to industry trends – AI, business intelligence and machine learning” 216

— Francis Ngari, Head of Digital, Resolution Insurance

have become a one-stop shop for all our customers’ general insurance needs, covering personal accident, group life, group personal accident, work insurance benefits, motor insurance, home insurance and engineering insurance,” he says.

CURRENT TRENDS WITHIN THE INDUSTRY “Over the last two, there are certain words that never fail to get mentioned when it comes to industry trends – artificial intelligence (AI), business intelligence and machine learning,” comments Ngari. Within the insurance industry, Ngari sees multiple trends being driven by technology. These include business intelligence to harness the power of data to make predictions; integrated systems to drive efficiency when it comes to data entry and information gathering, organisation partnerships; and robotic process automation (RPA) to reduce the need for people to conduct mundane tasks as well as driving towards paperless operations.

In addition to these trends, Ngari has also seen the growth of self-service via portals and chatbots, especially among millennials.

M AY 2 0 2 0

Resolution Insurance’s Brand Experience #CSWeek2019 CLICK TO WATCH

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4:22

217

DIGITAL TRANSFORMATION

Ngari sees Resolution Insurance

Ngari takes pride in the company’s

reaping multiple benefits from its six

push to be a technologically aware

year strategy: “as a company we are

brand. “My first role as Head of Digital

looking to benefit from increased

was to draft the digital strategy, in

efficiency, a low error rate, increased

addition to forming a digital imple-

innovation and talent, attracting new

mentation roadmap that spans from

markets and becoming an employer

2018 to 2023,” he explains. Resolution

and insurance provider of choice.”

Insurance’s strategy is comprised

To achieve its strategy, Resolution

of four key objectives: leverage

Insurance is harnessing innovative

business intelligence to drive product

technology in a number of ways.

development and innovation; simplify

“We are big on RPA and Big Data at

and automate manual processes; run

Resolution Insurance, we have already

a paperless digital organisation; and

completed proof of concepts to verify

ensure self-service for stakeholders.

our hypotheses in these areas,” says w w w.f i nte c hma ga z i n e. com

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Ngari. Currently, Resolution Insurance

Insurance is currently utilising Big Data

is in the process of developing its use

for RPA and self-service solutions, by

of chatbots. “With this implementation

the first quarter of 2020 the company

our customers can receive quotes

aims to provide the ability to load claims

and pay, as well as check their due

and purchase a policy online through its

premiums,� comments Ngari. Within its

self-service platform and chatbots.

chatbot strategy, Ngari highlights the

Other implementations Resolution

importance of implementing solutions

Insurance has made over the years

that comply with Insurance Financial

include its Enterprise Architecture,

Reporting Standards (IFRS) 17. These

aligning its business requirements

solutions will ensure that its chatbots

and IT requirements to accelerate and

are collecting premiums in full within a

grow the business. “Our architecture

30-day period, in addition to implement-

consists of four layers: stakehold-

ing cash and carry. While Resolution

ers, engagement channels (including

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chatbots, SMS and emails), CRMs for

within its architecture are seamless,

external stakeholders as well as our

KPMG has also helped to develop an

financial ERP for business systems,

implementation roadmap that is a

and the cross platform layer consisting

fundamental feature of our company.”

of our data warehouse and business oping its architecture, Ngari highlights

THE IMPACT OF DIGITAL TRANSFORMATION ON THE COMPANY’S WORKFORCE

how KPMG has been instrumental

When it comes to the impact digital

in conducting quality analysis for its

transformation has on its workforce,

core insurance systems. “In 2010 and

Ngari highlights areas of the company

2016 KPMG consulted for Resolution

currently seeing benefits, including

Insurance to define our Enterprise

its business development team and

Architecture,” he says. “To ensure

customers services team. “Once

its implementations and integrations

we started using Salesforce’s CRM

intelligence,” notes Ngari. When devel-

E XE CU T I VE PRO FI LE

Francis Ngari Ngari is married and has four children aged between one and eight years old. He has more than 13 years’ experience in ICT, beginning his career in customer care, before deep diving into programming, business analysis, business applications management, ICT management and now digital and innovation manager. Ngari is certified in yellow belt lean six sigma, has a Higher Diploma in IMIS, and is a business information technology graduate and MBA – Strategic management candidate at USIU. He is looking to be certified by the data management association in CDMP during 2020. w w w.f i nte c hma ga z i n e. com

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Hi, we’re Salesforce. We help companies unify marketing, sales, service, commerce, and IT on the #1 CRM platform, so you can give every customer the personal experiences they love. Visit salesforce.com/learnmore.

To learn more about how Salesforce can help you connect with your customers in a whole new way, click here

“ We are big on RPA and Big Data at Resolution Insurance, we have already completed proof of concepts to verify our hypotheses in these areas” — Francis Ngari, Head of Digital, Resolution Insurance

KEEPING AHEAD OF DATA SECURITY DURING ITS DIGITAL TRANSFORMATION “When it comes to our digital transformation journey, one of the biggest threats is data security. In order to protect ourselves against this threat, we have started conducting vulnerability assessments, penetration testing and audits prior to, as well as after, a project is live,” says Ngari, adding that the company has also implemented common technologies that most companies will have for data security.

system as a single source of informa-

“We’ve got top-notch firewalls, double-

tion for analysis, the business team can

factor authentication, we are getting

now provide better service advice to

customers to also give us their

our customers, as well as being able to

consent, even before logging into our

better manage their leads and quantify

platform as well as getting customers

their results,” he says.

to agree to our terms and conditions,

With Resolution Insurance’s increase

which are compliant with the data

in self-service solutions, the customer

protection law that was passed in

service team are also seeing benefits,

October 2019 in Kenya.”

particularly “a reduction in call volume, with more people only calling when

THE FUTURE OF RESOLUTION INSURANCE

their query can not be resolved by a

Looking to the future, the company

chatbot,” enthuses Ngari. “In addition,

is constantly surveying the market to

the team is becoming more efficient

gain insights from its customers to

when it comes to finding information

ensure it remains ahead in a fast-

about a customer via one platform as

paced environment.

opposed to two or three.”

In addition, it is utilising data and social w w w.f i nte c hma ga z i n e. com

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RESOLUTION INSURANCE

B L U E C O N S U LT I N G

Blue Consulting is a silver Salesforce partner. They implemented Salesforce’s CRM sales module in 2015 in a record 2 months.

Blue Consulting have walked with us in our digital transformation journey since 2015 meeting our expectations every time.

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Since then, Blue consulting have implemented quote automation for our sales agents, integrated salesforce. com to our core insurance systems, and are currently implementing online insurance services to our clients and intermediaries, to achieve a self-service option, i.e. claims online, buy online, renew online and download policy documents.

Top three reasons Resolution Insurance chose Blue Consulting: • It is a local technology company that is able to send skilled resources to work on site without planning too much logistics. AS a result implementations are more affordable and have no time zone challenges • They have a young, vibrant, skilled and dedicated workforce • They are good business partners, we both make compromises towards success of the project

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media analytics to provide further insight into customer preferences, customer behaviours and new product innovations.

Beyond 2020, the company is looking to harness Big Data and venture further into machine learning and AI for predictive analytics, “we are currently using elements of machine learning and AI for our robotics proof of concepts, which we will be implementing in house in 2020,� comments Ngari. Other innovations Resolution Insurance is currently working on to implement in the future include becoming available 24/7 to its customers through omnichannel capabilities, providing end-to-end customer fulfilment and delivery, improving its self service platforms, automating underwriting setups and developing a digital laboratory for research and development.

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