FinTech Magazine – January 2020

UN climate change, personalisation and meaningful engagement www.fintechmagazine.com

JANUARY 2020

Creating value through innovation

Driving digital transformation in fintech Yannick Janssen and Siddhaarth Iyer discuss the company’s digital evolution

FOREWORD

W

elcome to January’s edition

all our audience engages with us and

of FinTech magazine.

ensure we’re there for everyone.”

As one of the world’s leading insur-

Transformation lies at the heart of

ers, AXA is pioneering change. In this

this month’s lead feature, in which we

issue we speak with Siddhaarth Iyer

digest and analyse a comprehensive

and Yannick Janssen, Head of Digital

report from HSBC into the future of

and Head of Technology respectively,

banking in a digital age. This poses

at AXA Gulf. Theirs is a particularly

some very interesting questions around

interesting story, set firmly against

how banks can achieve a balance

the wider backdrop of a financial

between innovative technology and

services industry that is evolving at

managing an evolving risk landscape.

an incredible rate.

Alongside this, we feature more of

Both men are playing a key role in

our exclusive content from last year’s

AXA’s digital journey and its ambition

Money20/20 USA – in this case,

to be a true partner to its customers

exploring how personalisation, mean-

through every stage of their life jour-

ingful engagement and a UN climate

ney and empower them to live better

change initiative are driving Icelandic

lives. Of their roles, Janssen says: “It’s

software fintech, Meniga.

important that we lead by example.

If you wish to share your story, or

We should always be looking for new

discuss key industry trends in more

ways to drive change.” In particular,

detail, please get in touch at:

he talks about AXA’s shift to a mobile-

matthew.high@bizclikmedia.com

first approach, of which Iyer notes that “it is important to be aware of how

Matt High

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

03

From Inspiration

to Innovation

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MATT HIGH CREATIVE DIRECTORS

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CONTENTS

12

Driving digital transformation in the fintech industry

28

JANUARY 2020

38 50

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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

60

76 FINTECH EVENTS

80

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12

Driving digital transformation in the fintech industry WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

JORDAN HUBBARD

JANUARY 2020

13

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AXA GULF

AXA Gulf ’s Siddhaarth Iyer, Head of Digital, and Yannick Janssen, Head of Technology and Innovation, discuss their company’s digital transformation journey

T

ransformation. It’s a word that has become synonymous with the financial services industry in recent years. The

influence of new technology has shaken up the 14

fintech world and encouraged companies worldwide to seek fresh ways to differentiate their offerings and stand out from rivals.

As one of the leading insurers globally, AXA is used to embracing change. A major force in the Gulf Cooperation Council (GCC), having been in the region for over 68 years, AXA in the Gulf covers the UAE, Oman, Bahrain and Qatar markets. AXA’s strategic ambition is to be a true partner to its customers throughout every stage of their life journey and empower them to live better lives. Siddhaarth Iyer, Head of Digital, and Yannick Janssen, Head of Technology and Innovation, are both key components of AXA Gulf’s digital journey and believe in operating with a collaborative approach. “People from every line of our business come together to voice their opinions of the digital path we should JANUARY 2020

15

take,” explains Iyer. “It’s important we work together to figure out what is changing the digital world and how we can leverage that to grow AXA Gulf.”

With change a consistent theme in both men’s mantra, Janssen adds that establishing a mindset to drive transformation is vital. “It’s important that we lead by example,” he affirms. “We should always be looking for new ways to drive change.” With customer-centricity a key pillar of AXA’s transformation, the company w w w.f i nte c hma ga z i n e. com

Growing your business through automation

We focus on delivering solutions on Cloud, Mobility, DevOps and Big Data. Speed, Innovation, and Excellence are the underlying tenets that drives our culture. www.keplerworx.com

Partnership Leading Towards Digital Future Global IT firm with operations in the Middle East,

TTM (time to market) hence powering the digital

AXA Gulf, a worldwide leader in Insurance and Asset

of IT-enabled change that is aligned with business

Europe and USA, KeplerWorx has partnered with

Management,as the key strategic partner in their Digital transformation process to serve the firm’s long-term interests.

Consolidating data centers, minimizing costly

infrastructure sprawl and modernizing legacy

applications to maximize revenue over time along with increased workforce productivity has fueled the need for companies to migrate to cloud.

KeplerWorx, as the key strategic partner, is supporting AXA Gulf to make the move and re-imagining their

mission by upgrading to cloud hosted technologies that drive digital transformation. KeplerWorx will kick-

start the project by creating a proprietary framework that is an alternative to a traditional ‘lift & shift’

migration, building a series of CI/CD Pipelines leveraging the modern tools and technologies including

containerization of legacy applications, that natively integrates with AWS Services and will be delivered through the Enterprise Delivery Framework.

This modernization process reveals cost reduction

opportunities and facilitates growth. The demand for cloud IT is driven by mandates to gain greater

availability of secure cloud solutions and faster data

transformation. Digital transformation is an outcome objectives and driven by a well-planned strategy.

KeplerWorx, a strong reputation in providing IT services and solutions with expertise in Financial Services Industry (FSI) including compliance and security

requirements. The team is committed to developing

custom, streamlined solutions for customers to achieve their business objectives. When asked what made

KeplerWorx the strategic partner of choice, Mr. Yannick Janssen, Head of Technology and Innovation at AXA Gulf responded, “We conducted a review of AWS

Cloud certified partners, KeplerWorx differentiated themselves in terms of strategic approach, strong

technical capabilities, without forgetting an extensive experience in Financial Services. The best partner you can have is the one able to get the best of

yourself and, with KeplerWorkx, the AXA Gulf Tech-

nology Acceleration team is innovating with a strong blended team.”

KeplerWorx helps clients grow their business through automation by consulting them on Cloud, Big data

and DevOps. To learn more about our client-driven approach, and how strong partnership can yield transformational solutions, visit KeplerWorx.com

with its affiliated insights.

This partnership will enable AXA Gulf, in leveraging

cloud migration, to innovate, stay agile and reduce

Learn more

AXA GULF

E X ECU T I VE P RO FI LE

Yannick Janssen

18

Raised in a ‘tech family’, I lit my passion for technology with my first Apple II, programming games at night for my little brother.

From ancient technologies, through to cutting-edge innovation, I am all in with technology - as my wife tells me: “you’re a geek”.

I graduated from the prestigious Thunderbird and ESSEC Business Schools and started my career in strategy and business intelligence. As an entrepreneur, I launched and invested in cloud companies. I gained deeper experience in leading fortune 500 transformation programmes, rejuvenating their application, infrastructure, innovation and operation landscape. I am lucky now to share my knowledge and vision for the future of technology during public speaking events and always enjoy mentoring startups in their path to success.

I have enjoyed travelling the world thanks to my professional experiences, crossing the destiny of leading companies in their distinct industry (Dell, Air France, ArcelorMittal, Accenture, Bank of Ireland, Etisalat…), working on e-government strategy (Ras Al Khaimah emirate), or preparing iconic events like Expo 2020.

As Head of Technology Acceleration, I am now responsible for the technology and innovation roadmaps of AXA Gulf Insurance in UAE, Oman, Bahrain and Qatar, and determined to go beyond our transformation in the new.

Passionate about excellence, I have been blessed with a National Champion title in Powerlifting.

JANUARY 2020

CLICK TO WATCH : ‘AXA – FUTURE RISKS : CYBERSECURITY’ 19

has created a mobile-first approach.

“With the number of devices constantly increasing, there’s a clear shift in the amount of people using our application,” adds Iyer. “There’s currently a 60/40 split in traffic with 60% using our services from a mobile device and 40% from a desktop. In the future, I believe that we’ll eventually just focus on mobile because

“ We should always be looking for new ways to drive change” — Yannick Janssen, Head of Technology and Innovation, AXA Gulf

people won’t want to access applications from anywhere else.

The aim is to become an omnichannel player and in order to achieve w w w.f i nte c hma ga z i n e. com

that, you need to be available both

Iyer believes that the use of data is

online and offline. But, it is important

even more influential. “I believe that

to be aware of how all of our audience

the way in which data is consumed is

engages with us and ensure we’re

going to transform people’s approach

there for everyone.”

to systems,” he explains. “The biggest

With a mobile-first approach con-

disruptor in the market is going to be

sidered by some in the fintech space

data and how we use it. It will define

as the largest disrupter in the industry,

our mobile-first approach.” Janssen

E XE CU T I VE PRO FI LE

Siddhaarth Iyer I am a startup guy turned corporate with broad experience in creating amazing digital journeys for customers across industries like insurance, agriculture, healthcare, government and procurement tech. I have been a digital-tech guy throughout my career, with a keen focus on customer/user experience and business innovation. I hold three approved US innovation patents in the utility and tech space. In my short 12-year career, products built by me have reached and are used by more than three million users across multiple countries. Being from the startup community, I support and mentor many startups in the region, and back in India. I enjoy my evenings and weekends with my wife helping her in the kitchen. My wife and I have a mandatory late night drive everyday where we catch up on what happened through the day. Having built a music e-commerce startup I love to discover latest music trends and keep an eye for new artists. I read and listen to podcasts, learning from others’ experiences. I follow inf luencers like Guy Kawasaki, Tony Robbins and Simon Sinek.

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

21

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“ Whether you succeed or fail, you’ll learn along the way” — Siddhaarth Iyer, Head of Digital, AXA Gulf

23 affirms that extracting more ways to

“The way they have embraced digitali-

harness data is the key. “We must

sation has been amazing. We call them

look at how to get more data than the

digital champions because they’re the

customer gives you,” says Janssen.

ones who will drive change throughout

“How do you track customer behaviour

the organisation,” he affirms. “All of our

and provide them with a value-added

employees are onboard and eager to

service that they really want? It’s this

adapt their way of working to become

behaviour and analysis which is going

more efficient. I believe it’s important

to make all the difference.”

to be challenged from a digital stand-

At the heart of AXA Gulf’s transfor-

point and I’ve seen that cultural shift

mation drive is its employees, which

and drive to embrace technology. It’s

Iyer refers to as ‘digital champions’. Iyer

extremely important to us.”

believes their mentality and willingness

In a bid to accelerate operations,

to embrace change has been a major

AXA Gulf believes in forming strategic

factor behind his company’s success.

and sustainable partnerships to assist w w w.f i nte c hma ga z i n e. com

AXA GULF

in its transformation drive. “As a large company, we’re dependant on our partners to help deliver high quality solutions for us. We can’t do it ourselves,” says Iyer. “A good partner must have speed, agility and be adaptable.

These three core values are essential and contribute to long-term success.”

Janssen adds that forming the right partnerships is essential to success.

“I believe that the next step is to ensure that all our partners recognise that AXA is centered around technology,” adds Janssen. “I want to ensure 24

we’re developing the right technology partnerships to help us drive this transformation.”

“ The biggest disruptor in the market is going to be data and how we use it. It will define our mobilefirst approach” — Siddhaarth Iyer, Head of Digital, AXA Gulf

As AXA Gulf’s transformation journey continues to gather momentum, Iyer recognises that although his company’s shift to digitalisation has been challenging at times, it has been a significant learning curve and he instructs other leaders in the industry to take the ‘leap of faith’. “There’s never a right time to do it. Whether you succeed or fail, you’ll learn along the way,” he explains. “We’ve had our own set of failures and learnt lessons. It’s important that you always question

JANUARY 2020

1816

Year AXA founded

800

Approximate number of employees

25

why you’re implementing something.

be focused around finding new ways

And if you’ve always answered that

to increase sales - that’s the ultimate

question, then you always have the

aim,” says Iyer. “It’s important to see

justification to do it.”

how we can generate more value and

“Change is led by individuals. I believe

offer other services to the customers

that in order to succeed, it’s important

we already have. If we have a customer

to have an open mindset to lead that

signed up to motor insurance, then

change,” affirms Janssen. “You need

they might be interested in our health

to be the best you can be to drive a

segment. It’s up to us to ensure our

transformation journey such as this.”

solutions are streamlined and simple to

Looking to the future, Iyer and Janssen

use for our customers.”

both have a clear vision for AXA Gulf over the next few years. “We have to w w w.f i nte c hma ga z i n e. com

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H AV E YOU SEEN OUR OT HER T I T L ES ?

FINTECH

AND TECHNOLOGY

28

TRUST WHY SUCCESSFUL BANKS MUST STRIKE THE BALANCE BETWEEN TECH INNOVATION AND RISK MITIGATION TO THRIVE IN A RAPIDLY EVOLVING MARKET WRITTEN BY

JANUARY 2020

MATT HIGH

29

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FINTECH

B

anks face a pivotal moment in their evolution.

The last decade saw the digitisation of financial services forever change the way in which

people manage their finances and interact with

their service providers. New technologies, such as AI and machine learning, voice recognition, mobile banking and the smart use of data will define how financial services are offered, and an evolving regulatory landscape and the hyper-personalisation of banking will set new standards for business models 30

and customer expectations. Balancing these challenges will be crucial to success.

Technology continues to drive global change. In banking, it has the potential to offer unprecedented speed, new levels of convenience and give tailored and personalised services and advice. Mobile banking, for example, has given consumers the freedom to manage their finances when and how they like, wherever they like; the implementation of AI and machine learning to analyse and use data has helped financial services companies both internally – the ability to monitor account activity, complete multiple tasks at greater speed, and more effectively, combat fraudulent activities, and so on – and externally; and data is proving to be the framework for the provision of greater user experience and the managing of trust and relationships.

JANUARY 2020

“ BANKS FACE A PIVOTAL MOMENT IN THEIR EVOLUTION” INCUMBENTS AND FINTECHS A common perspective in this forwardlooking narrative is that banks – incumbents or ‘traditional’ in particular – face a significant challenge when it comes to developing and implementing such technologies compared to those more innovative fintech market entrants or the tech giants that are not-so-tentatively dipping their toes in the financial services sector. There’s good cause to consider this argument, too. Take Accenture’s Five Big Bets for Retail Payments in North America w w w.f i nte c hma ga z i n e. com

31

FINTECH

suggesting that “we are already in an era of innovative cross business collaboration which many would have not imagined a few years ago”. The paper, Banking of the Future, Finance in the Digital Age, also states that while technology and data advances are transforming the industry, future success in banking will rely on achieving the right balance between innovation, risk management and consumers’ behaviour and expectations.

The report, which is written by financial technology expert Professor Markos

32 report, published in October last year.

Zachariadis, says that the hyper-

In a wide-ranging survey of US and

personalisation of banking, which will

Canadian banking experts, it found

be enabled by technologies such as

that between 11% and 15% expect to

AI and augmented reality as well as

lose ground to fintechs and challenger

advanced data analysis, and through

banks, describing a market in which

which customers will take greater control

incumbents find themselves on unsta-

of their own personalised data through

ble ground and faced with “truly trans-

‘digital ID profiles’, will replace tradi-

formational change”.

tional product sales and service mod-

However, in a report published in

els. This will create an environment in

November exploring what the next dec-

which banks will become ‘trust brokers’

ade holds for incumbents in the age

in the management, development and

of digital banking, HSBC suggests that

safeguarding of these IDs, unlock new

this is a “common myth”, highlighting

revenue streams and access third-

the growing landscape for collabora-

party services outside of traditional

tion between banks and fintechs and

financial services.

JANUARY 2020

CLICK TO WATCH : ‘JOSH BOTTOMLEY TALKS TO FINEXTRA RESEARCH – HOW TO BENCHMARK INNOVATION IN 2019’ 33

TECHNOLOGY: OPPORTUNITY AND RISK

hand,” he notes, “technology can help

According to Josh Bottomley, Global

both banks and regulators manage risk

Head of Digital, Data & Development at

in the sector more effectively, while

HSBC: “the impact of technology and

on the other hand new challenges are

data is going to be different in finan-

introduced to the system.”

cial services because of the distinct

Therein, according to HSBC, lies the

aspects of this industry.” Bottomley

‘critical balance’ in the future of bank-

acknowledges that the financial sector

ing for incumbents, in which three key

is one “inherently based on managing

development areas must be aligned:

risk” – regulation is fundamental, for

technology and data enablement, the

example, in maintaining the integrity

risk management advantage, and the

of the industry, but new innovations

consumer behaviour revolution. The

can bring greater complexity to a risk

successful bank of the future, Bottomley

management landscape that is already

affirms, must “carefully balance a series

one of the most complex. “On the one

of trade-offs between what technology w w w.f i nte c hma ga z i n e. com

FINTECH

and data enable, in terms of improving customer experiences, with the absolutely fundamental need to ensure the highest customer standards are upheld and the integrity of the financial system is maintained.”

Banks have – and continue to – invest in technology and digital transformation heavily, dispelling the myth that incumbents are less well placed to take advantage of new innovations. So too have they increased collaboration with fintechs, startups and innovators in the 34

sector in order to leverage new ways of thinking and co-develop new services for customers. HSBC expects these partnerships to increase exponentially in the future and affirms its belief that fintechs will likely not displace traditional

more personalised services. The

banks – there is, after all, value in such

extent to which banks will develop

collaborations for fintechs too in terms

autonomous technology or AI appli-

of access to a larger customer base and

cations, says HSBC, remains unclear,

greater investment power.

particularly as many are still in the

Data and analytical technologies

nascent stages of implementing big

will continue to define how financial

data and predictive analytics – the

services are delivered into the next

bank itself currently has 1,600 robotic

decade and beyond, particularly with

devices across its global network,

regards to enabling a greater focus

for example, which processed 11.5

on bringing financial institutions and

million transactions in 2018, represent-

customers closer together to deliver

ing a tenfold annual increase.

JANUARY 2020

propose to use such technologies in an ethical manner that is consented to by regulators and investors.

“ TECHNOLOGY CAN HELP BOTH BANKS AND REGULATORS MANAGE RISK IN THE SECTOR MORE EFFECTIVELY, WHILE ON THE OTHER HAND NEW CHALLENGES ARE INTRODUCED TO THE SYSTEM”

To this end, balancing risk mitigation and technology will be crucial for banks to succeed. Robust ethical frameworks will be essential, for example, as will controls for protecting customers in order to maintain trust levels and the integrity of the wider financial services market. To achieve this, HSBC proposes financial services regulators, governments, banks and other industry bodies work closely in order to evolve from national regulatory practices to a singular global regulation that considers how to best adopt and work with new technologies available. In particu-

A QUESTION OF TRUST

lar, says the report, “developments in

As explained by Bottomley, however,

areas like big data, cloud and AI will

greater use of data and AI increases

need more and more international

risk in several ways. “At its heart, bank-

cooperation” with banks, ensuring that

ing is based on trust,” he explains.

they are ‘global’ in their outlook to facili-

“While customers often want banking

tate this.

services to be modern and responsive,

It adds: “Technology will require bet-

they also want to be certain that their

ter regulation; regulation will require

money and their information are safe.”

better technology. But within this cycle,

This, he explained, relies on banks mak-

a responsible and more intelligent

ing ‘informed and appropriate’ deci-

global banking ecosystem can thrive.”

sions, while demonstrating how they

If, for example, work is undertaken w w w.f i nte c hma ga z i n e. com

35

FINTECH

“ DATA AND ANALYTICAL TECHNOLOGIES WILL CONTINUE TO DEFINE HOW FINANCIAL SERVICES ARE DELIVERED INTO THE NEXT DECADE AND BEYOND”

financial information, but also broader personal data such as profiles, typical patterns of activity and preferences.

The result of this evolution will be an era of ‘hyper-personalisation’ in which banks will move towards the selling of experiences rather than products, HSBC says. In such a scenario, services will be tailored to individual customers,

36

to standardise the development of

driven by data as well as newer tech-

technologies such as AI for financial

nologies such as the Internet of Things

services, a better balance between

and 5G. Bottomley adds: “Customers

innovation and safeguarding customers

can expect a highly-personalised

and the industry will be achievable.

service determined by their individual requirements, instead of being based

IT’S ALL ABOUT THE EXPERIENCE

around a set of savings, borrowing and

Customer experience and person-

investment products – each with their

alised services will drive the future

own sales and servicing characteris-

of banking. This, on a growing level,

tics.” HSBC goes as far as predicting a

has been the case already in recent

world in which banks could form a part

years thanks, in no small part, to the

of a wider ecommerce system, inte-

proliferation of 24/7 mobile and digital

grating with other third-party providers

banking. The future will be no different,

such as utilities to offer advice and

says HSBC, with traditional services

recommendations based on existing

becoming less common in the face of

customer data.

consumers taking greater personal

While there is little doubt surround-

ownership of their data and their bank-

ing the proliferation of digital banking

ing. In particular, the report points to

solutions, evidence still suggests that

the creation of ‘digital IDs’. These data-

consumers want the ability to interact

driven ‘identities’ will naturally contain

with a human voice during their finan-

JANUARY 2020

37

cial activity. HSBC predicts the rise of

innovate and remain at the forefront

digital voice activation as “the default

of the sector in terms of technology,

channel for consumer communica-

with managing those new risks that will

tions�, as well as an environment in

arise and the expectations increasingly

which augmented reality is supple-

engaged consumers.

mented by the option to speak with human advisors where necessary.

The scale of change facing banks,

HSBC’s Banking of the Future: Finance in the Digital Age report

and the wider financial services sector,

was written by financial technology

shows little sign of abating. That banks

expert Professor Markos Zachariadis.

will survive is in little doubt. According

It can be read in its entirety here.

to HSBC, however, to thrive will require a deft hand at balancing the need to w w w.f i nte c hma ga z i n e. com

BANKING

38

PERSONAL FINANCE Meniga’s Andrew Harper discusses personalisation, fintech and UN climate change, and the importance of meaningful engagement WRITTEN BY

MATT HIGH

JANUARY 2020

39

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BANKING

40

IF

you visited this year’s

can do with technology, rather, what

Money20/20 USA event –

we should do.

indeed, if you have read our

Three days later, when we man-

exclusive interview with the event’s

aged to block out half an hour in her

President, Tracey Davies in our

diary, her message was the same. Of

December issue – you’ll be aware of

course, by that point those gathered

one of the key themes to come out of

at the sprawling Venetian Hotel had

those four days in Las Vegas: fintech

seen countless examples of this evolu-

for good. The question being asked

tion – including keynote speeches from

across the industry, Davies told those

the likes of Uber, PayPal, Calibra and

assembled for her keynote introduc-

more. “There’s been a definite shift

tory speech, was no longer what we

over the past years that has seen the

JANUARY 2020

banking services is a recurring trend across the sector. For fintechs, it is at the heart of many of their offerings, given that a personalised experience is enabled by innovative technologies such as AI, machine learning and automation, as well as the better understanding, analytics and use of data. Meniga is one such company.

The Icelandic software fintech that provides data-driven digital banking solutions exists with one simple mission: to help people lead better financial lives. It is also behind a pioneering new collaboration with the United Nations that is encouraging banks to allow customers to use cashback rewards to offset their carbon footprint. Quite sector move away from ‘shiny and new’

fittingly, bearing in mind our conversa-

technology – which, in this industry we

tions with Davies, Meniga was present

all love – to thinking about fintech for

at Money20/20, where we spoke

social good and how technology and

with Andrew Harper, Head of Rewards

financial services can impact lives for

Partnerships on these themes.

the better,” Davies told us, highlighting

“It’s really crucial for all sectors,

some of the key drivers of this shift,

including financial services, to align

such as environment and inclusivity/

more closely with corporate social

personalised experiences, and ideas

responsibility and allowing people to

around gender roles and equality.

make a choice and support a cause;

Inclusivity and an increased drive for personalised, customer-centric

we all have a role to play in creating a better planet and our new initiative is w w w.f i nte c hma ga z i n e. com

41

BANKING

a strong example of that,” he told us

42

“It’s a really great motivator for peo-

of Meniga and the UN’s collaboration.

ple, and a good way of making their

The basis for the service is the cash-

money – and how they use it – become

back rewards that Meniga’s Rewards

more meaningful,” Harper explained.”

app offers through dedicated banking

Even if you receive, say, 10 euros a

partners, with the view that channeling

month in cashback, if you know that

cashback towards investment in

it’s going to a good cause without you

climate friendly projects could make

actively having to take any action, then

a substantial positive impact. Users can

the value of that cashback becomes

donate their rewards to UN Climate

far greater.” According to Harper, 20%

Change certified projects, including

of users have signed up to donate

initiatives in Malawi and India, which

to the cause, which he described as

aim to reduce, avoid or remove green-

“higher than I anticipated, but a real

house gas emissions.

validation of where people are at – it’s

JANUARY 2020

CLICK TO WATCH : ‘MENIGA IN A MINUTE – WHAT WE HAVE TO OFFER’ 43

“ If you know that it’s going to a good cause without you actively having to take any action, then the value of that cashback becomes far greater” ­— Andrew Harper Head of Rewards Partnerships Meniga w w w.f i nte c hma ga z i n e. com

BANKING

“ Meaningful engagement is so important” ­— Andrew Harper Head of Rewards Partnerships, Meniga

44

JANUARY 2020

wonderful”. So wonderful, in fact, that the company is already in the process of developing a similarly themed solution that will allow users to track the carbon emissions that result from their spending. “We’re seeing an increased focus throughout the sector,” Harper said, “and the banks that we have dialogue with fully understand the importance of widening that focus from just managing your money to understanding the broader context and how you can use your financial services and technology for good.”

Of course, allowing users to take greater control of every aspect of their financial services is a fundamental part of the personalisation that both fintechs and incumbents are driving for.

During Money20/20, it was apparent that customer-centricity will continue to be a fundamental focus for the sector, with many speakers not only detailing the latest innovations in this area, but also highlighting how they are using customer interaction and data to help shape future developments. More broadly, the ongoing rise of mobile banking and connectivity, digital communication channels and w w w.f i nte c hma ga z i n e. com

45

BANKING

the ‘app economy’, mean that banks

the most from their interaction with a

and fintechs must now focus on selling

technology or service. Since its found-

experiences.

ing in 2009, Meniga has created digital

Elaborating on this, Harper explained the importance of cutting through

banks including UOB, Santander,

the noise to focus on the fundamen-

Tangerine and more in 30 countries

tal, basic elements of what makes a

worldwide, improving the digital bank-

good personalised banking solution.

ing experience for more than 60 million

“We’re trying to increase customer

end customers. The effective use of

engagement,” he said, “but we’re also

data lies at the heart of this success,

conscious of making sure it’s the right

with the company’s host of services

engagement. If you look outside of finance, Apple is a great example of a 46

services, platforms and apps for major

brand that’s done just that: it absolutely ensured that the fundamentals were right by simplifying everything, creating a really intuitive and easy to understand user experience and then building all of those very personal experiences and interfaces on top of that foundation. Similarly, if you look at the likes of Facebook, Amazon or Uber, they’re really showing how you can create loyalty and engagement just by getting the customer experience right – that’s what banks should be aiming for.”

For Harper, an effective personalised experience must be based on a firm understanding of exactly what each consumer needs in order to get JANUARY 2020

“ The likes of Facebook, Amazon or Uber, show you can create loyalty and engagement just by getting the customer experience right” ­— Andrew Harper Head of Rewards Partnerships, Meniga

enabling banks and financial services providers to deliver unique and highly personalised customer experiences, to deliver proactive advice, coaching and recommendations to users and build long-term ‘meaningful engagement’.

“That meaningful engagement is so important,” Harper noted. “It may not be that you need everyone logging into their app all day – it’s more likely the exact opposite. If you can make someone feel satisfied with one notification that gives them everything they need then that’s far more successful engagement. You need to make sure you’re providing users with what they want to know at the right time – it’s all in context, and should be about reducing the effort required by them. However, the real beauty of any meaningful customer engagement or personalisation is that there’s no one size fits all,” he continued. “The way we all behave with our finances, the way we all interact with our banking applications, it’s all different. Some people have a very clear overview of things because they have to, others don’t. Personalisation allows you to almost have a structure that your banking environment holds. w w w.f i nte c hma ga z i n e. com

47

BANKING

“ People want seamless financial services” ­— Andrew Harper Head of Rewards Partnerships, Meniga

But within that, then you provide whatever is suitable for the individual user.”

48

It is widely recognised that an increased focus on personalisation of financial services places a greater challenge on incumbents and legacy banks than it does on fintechs. Harper agreed that incumbents will find the shift a greater challenge, largely due to restrictions placed upon them by existing and legacy infrastructure and technology. “Everyone will have the same goal, but for those incumbents it will be more about breaking the change into manageable steps,” he told us. “Often that will mean partnerships with fintechs to help create that path. It definitely helps working in close partnership with smaller fintechs that can JANUARY 2020

bring that innovative functionality to the table. The way we work with a bank, for example, is to help them bring all of those legacy systems, all of that data into a single repository. That allows them to then be more responsive within their own digital channels.”

Considering the future, Harper reiterated the importance of these partnerships, stating that the conversations around fintechs being a threat to incumbents are redundant and, rather, that “we are better together”.

“People want seamless financial services,” he stated. “It’s our focus right now with the various aspects of our rewards programmes, and it’s a sentiment that is aligned with the market.

The focus is all about using the data available to offer personalisation, those little notifications or moments of delight where you realise that your information is being used to provide you with a great service. It really makes you loyal to a brand.”

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49

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

50

AU TO MA TIC

E H T R O F

JANUARY 2020

E

E L P O E P

51

According to Prema Varadhan of Temenos, future digitalisation of banking will be driven by AI technology 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 O L U T I O N S

W

e use AI in nearly everything we do now, we just don’t realise it” Varadhan says. “The technology has become

so prevalent and has proved to have many useful applications across a variety of different industries, banking and financial services

included. If you look more broadly, the commercial advantages of employing AI have been significant – look at Amazon, Uber or Metro, as well as countless other tech companies. They all have AI embedded in their 52

service offering and, as a consequence, the technology has dramatically transformed the consumer experience. This is particularly true in the sense that AI brings personalisation – and now hyper-personalisation – to any number of services, and it’s really important to consumers; if something understands me, my behaviours, tastes and needs, as well as my ways of working and living, then of course I welcome any product that is tailored to that degree.”

Banking and financial services, Varadhan explains, are no different. Financial organisations worldwide are implementing myriad AI solutions as part of wider fintech platforms in order to optimise and enhance both their back and front ends. With regards to JANUARY 2020

53

“ The next wave of digitalisation in banking will be underpinned

by AI” — Prema Varadhan, Chief Architect and Head of AI, Temenos w w w.f i nte c hma ga z i n e. com

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

“When you then apply learning you can improve the services and products on offer significantly. It also improves customer intimacy, results in greater proactive engagement and creates deeper customer journeys that go beyond traditional banking” — Prema Varadhan, Chief Architect and Head of AI, Temenos

54

interaction with customers, Varadhan

to understand the kinds of questions

points to the increased use of intel-

and customer actions they have. When

ligent chatbots and ‘conversational

you then apply learning to those ques-

banking’. Temenos considers conver-

tions and interactions you can improve

sational banking as a bi-directional

the services and products on offer

interface between a bank and a cus-

significantly. It also improves customer

tomer that can be delivered in several

intimacy, results in greater proactive

ways, including chatbots, robots or

engagement and creates deeper cus-

avatars, voice assistants, or SMS text

tomer journeys that go beyond tradi-

and rich communication services.

tional banking.”

“This does two things for banks,”

One challenge that Temenos and

she highlights. “Naturally, it helps them

others in the sector are addressing

to cut costs and be more efficient

around chatbots is related to the

but, more importantly, it helps them

intent of the customer engaging with

JANUARY 2020

CLICK TO WATCH : ‘ADOPT IT: TRANSFORMING LIVES AND CHANGING FUTURES’ 55

the technology. “Questions are black

technology. If we can improve this

and white – ‘do you want to make the

aspect of AI bot technology then you’re

transfer? What is my account bal-

looking at an environment where you

ance?’” Varadhan notes. “But to be

could completely avoid call centres,

truly interactive a bot must be intel-

waiting for responses and so on – it’s

ligent to understand a sequence of

the breakthrough that’s needed and

questions, to correlate those points

I think we are close.”

and to understand that overarching

Alongside customer-centric solu-

intent of my interaction. That’s where

tions, Varadhan also notes that the

the innovation needs to continue

use of AI-based platforms is helping

with regards to chatbots in banking.

financial organisations to improve their

We’ve been working with chatbot pro-

back-office functions. In particular,

viders, for example, and have created

this can be related to the automating

a banking app that sits on top of that

of processes and functions in order w w w.f i nte c hma ga z i n e. com

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

to free up time for employees to carry out more pressing or important tasks.

“Temenos has worked with a number of banks, which has resulted in becoming more efficient operationally,” she states. “They become super-efficient because they have delegated a lot of work to ‘machines’, but those machines are also learning over time and suggesting ways in which processes can be changed or systems can be improved. That would be a massive advantage to have.”

56

As a result of such advantages, Varadhan states that the ‘use case’ for AI in banking is becoming clearer all the time. It is the reason, she says, “that we’re likely going to have a significant uptake – and we at Temenos want to be at the forefront of that

banking: ‘explainability’. “If AI is mak-

drive.” It is this ambition that has seen

ing decisions, then those decisions

the company recently complete the

have to be justifiable. The bank needs

acquisition of Logical Glue, a busi-

to be confident in the technology and

ness that focuses on AI and makes

the decisions will need to be audited

credit algorithms ‘more human’, which

and regulated – there is no framework

already boasts several customers in

for this at the moment. It’s quite com-

the financial services industry.

mon for us as a business to aim to stay

The acquisition, explains Varadhan,

one step ahead of the regulators, so

was driven in part by one of the

when we saw the solutions that Logical

challenges facing the uptake of AI in

Glue was offering, we knew it would be

JANUARY 2020

“To be truly interactive, a bot must be intelligent to understand a sequence of questions, to correlate those points and to understand that overarching intent of my interaction” — Prema Varadhan, Chief Architect and Head of AI, Temenos

an important addition in this regard.”

behaviour in order to structure a port-

As part of the acquisition, and more

folio they are likely to take. “We don't

broadly on key areas in which Temenos

see AI as a specific technology or

hopes to strengthen its proposition,

something to provide as an option,” she

Varadhan points to “seven or eight”

says. “We believe it should become

use cases for an AI-driven platform.

a standard capability of our platform

On a wider perspective, she highlights

and, in the near future, we will build

key areas of development for AI in the

more and more of our software with

banking sector as automation, evolu-

AI capabilities.”

tion of how technology can understand customers, and categorising customer w w w.f i nte c hma ga z i n e. com

57

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T O P 10

60

JANUARY 2020

Fintech unicorns FinTech magazine kicks off 2020 by looking at the most innovative companies to achieve unicorn status in the industry WRITTEN BY

AMBER DONOVAN-STEVENS

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

61

T O P 10 MARKET VALUATION

US$2bn

62

10

Lemonade [ HQ NE W Y OR K , N Y, US ]

Lemonade, the contents and liability insurance company targeted at urban residents, is a certified B-Corporation that focuses on giving back through charity donations from leftover money in the user’s insurance pool. It functions in reverse to the traditional insurance model by taking a flat fee, paying claims within minutes and giving any leftover money to causes. In addition, like many finance companies today, Lemonade has an AI bot, Maya, integrated into its messaging services to provide quotes and advice, allowing customers to get insured in a matter of seconds.

JANUARY 2020

MARKET VALUATION

09

US$2.55bn

Monzo

63

[ H Q: LON D O N, U K ]

One in 20 adults in the UK carry Monzo’s hot-coral-coloured card in their wallet, and with over 55,000 individuals signing up every week, this number is only set to increase. Monzo achieved unicorn status in 2018, following an £85mn fundraising round from US venture capital investors. The digital-only bank has disrupted the payment space with its commitment to helping customers be smarter with money. A particularly interesting feature of Monzo is that it has a block feature for gambling, which was used by more than 140,000 individuals in October 2019. According to an interview with Wired, CEO Tom Blomfield hopes to move onto a junkfood block. Monzo was also one of the first digital banks to offer “pots” within a customer’s account, which can be customised around its purpose to the customer. w w w.f i nte c hma ga z i n e. com

Building an ecosystem?

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MARKET VALUATION

08

US$2.6bn

65

Brex [ H Q S AN F R A NCIS CO, CA, U S ]

Brex was founded in 2017 by Pedro Franceschi and Henrique Dubugras, who both moved to Silicon Valley in order to create the service for entrepreneurs. In 2018, Brex launched its first corporate card for startups, following a $57mn round of funding.

Soon after, it introduced its rewards programme, and announced a partnership with TravelBank to allow Brex users to book travel directly through its platform. In 2019, the fintech launched a corporate card for ecommerce companies, as well as announcing a number of new partnerships including one with Clear Channel, which enables it to offer discounted advertising.

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

T O P 10 MARKET VALUATION

US$3.5bn

66

07

TransferWise [ HQ LONDON, UK ]

Overseas transfer fees add up. No one knows this better than TransferWise’s founders, Kristo Käärmann and Taavet Hinrikus, who developed the concept for their service as they were losing out to fees when transferring money between Estonia and the UK. The money transfer service, which was founded in 2010, has since expanded to six million customers, who collectively send a total of over US$4bn each month. Instead of creating its own rate, TransferWise works off of the bank transfer rate of the day, offering the best possible rate across 750 currencies.

JANUARY 2020

MARKET VALUATION

US$2.7bn

67

06

Toast [ H Q B OS TO N, M A, U S ]

As the name may imply, Toast specialises in food and, more importantly, restaurants of all sizes. The American cloud-based restaurant software company leverages PoS, front and back of house, as well as customer interfaces in order to provide excellent customer service. Originally launched in 2013 by Steve Fredette, Aman Narang, and Jonathan Grimm in Narang’s basement, today Toast has over 2,000 employees across 230 US locations, working with more than 70 partners in order to improve services from loyalty rewards through to payroll, for any type of eatery. w w w.f i nte c hma ga z i n e. com

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MARKET VALUATION

US$5.5bn

69

05

Klarna [ H Q S TOCKH O LM , S W EDEN ]

As of August 2019 , Klarna was the largest fintech in Europe, following a US$460mn round of funding. Clocking in at a valuation of $5.5bn, the company continues to grow exponentially, with the addition of 50,000 new customers each week, who choose to pay for items 30 days later, or divide the cost across three months with Klarna’s 1,500 retailers. One of Klarna’s most notable partners is ASOS, the onlineonly retailer that is reputed for its free delivery and returns, providing the financial services company with access to an additional 80 million active customers across 250 countries.

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T O P 10 MARKET VALUATION

US$7.6bn

70

04

RobinHood [ H Q ME N LO PA RK, CA, U S ]

The English folk hero has never looked more modern, or American.

Robinhood is the california-based fintech that allows its users to invest in public companies and exchange traded funds on US stock exchanges without paying commission, foreign exchange fees or account minimums. It also enables them to purchase cryptocurrencies and now has a range of banking products that include checking and savings accounts and debits. In the two years since the company was founded by Baiju Bhatt and Vladimir Tenev, it has grown to serve six million users.

JANUARY 2020

MARKET VALUATION

US$10bn

71

03

NuBank [ H Q S Ã O P A U L O, B R A Z I L ]

Brazillians pay some of the highest fees and interest rates in the world for what is often considered poor banking services. For this reason, Nubank offers its customers a free account, with no maintenance fees. Nubank is the third bank in Brazil to achieve unicorn status after achieving a valuation of US$1bn in 2018. It was founded in 2013 by David Velez, Edward Wible and Cristina Junqueira, before becoming active in 2014. The bank is headquartered in São Paulo, Brazil, and serves Brazil, Mexico and Argentina with digital accounts, credit cards and personal loans. In October 2019, Vélez revealed that the bank now has over 15 million users. w w w.f i nte c hma ga z i n e. com

T O P 10

02

MARKET VALUATION

US$10bn

One97 Communications [ H Q N O I D A, I N D I A ] India’s largest marketplace clocks in at a valuation of US$10bn. With its slogan “Mobile First. Mobile Always”, mobile access has always been at the core

72

of the company’s business since its founding in 2000 by Vijay Shekhar Sharma, when it started out as a prepaid mobile and DTH recharge platform.

Today, One97 Communications is best known for its flagship brand, Paytm, which services over 350 million users across a platform that is available in 11 Indian Languages. Contained to a QR code, a massive range of products can be paid for through the platform from over seven million merchants, from bills to shopping, through to parking, pharmacies and educational institutions.

JANUARY 2020

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T O P 10

01

MARKET VALUATION

US$35.25bn

Stripe

[ H Q S A N F R A N C I S C O, U S ] Stripe has skyrocketed to prominence, topping our list by the billions with an impressive US$35.5bn valuation. “The complete toolkit for internet business� was originally created by Patrick and John Collison in 2010 in San Francisco, and initially started off by providing 74

solutions for SMEs that required assistance in navigating the payments industry. Stripe drives to provide a complete product that allows users to create complex billing systems: connect buyers and sellers: and use SQL-powered analytics, while also incorporating fraud detection tools. Additionally, it allows for the creation, issuing and distribution of cards. As a result, it is perhaps unsurprising that today it is used by more than 100,000 companies, including tech giants Amazon and Microsoft, helping the company achieve its overall goal of increasing GDP of the internet.

JANUARY 2020

75

CLICK TO WATCH : ‘STRIPE – INTRODUCING THE GPTN’

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

EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the world for fintech leaders

7–10 JAN 2020

7–10 JAN 2020

[ LAS VEGAS, USA ]

[ LAS VEGAS, USA ]

Now running for a fifth consecutive

The event will focus on how AI, AR and

year, the Digital Money Forum will last

VR are transforming the retail industry.

four days and focus predominantly on

Retailers, buyers, hardware and dis-

innovation and the transition to block-

play manufacturers, POS systems, and

chain within finance. Trends of focus

other bodies of the E-Commerce

include: AI, 5G, Biometrics,

community. The 2019 event hosted

RoboAdvisors, Crypto, Blockchain,

speakers such as Feng Cheng, CEO

cybersecurity, interfaces and voice

and Co-Founder, Linc Global; Michael

recognition. The event is said by

Childers, Chief Consultant, Content

Michael Casey, co-author of the Truth

& Media Strategy, Lufthansa Systems;

Machine, former Wall St. Journal

Gene Han, VP, Innovation, Target;

reporter, CoinDesk and MIT Crypto-

Maureen Conners, CEO, Conners

currency Advisory Boards to “involve

Consulting; Heidi Forbes Öste, CEO,

nothing short of a social revolution,

2BalanceU, as well as a number of

one in which various cultures, Silicon

other c-level executives who shared

Valley startups, financial professionals

their insight into meeting the customer

and electronics engineers and mar-

needs of price, convenience, experi-

keters, must come together.”

ence, privacy and loyalty.

The Digital Money Forum at CES

76

JANUARY 2020

High-Tech Retailing at CES

EDITED BY

AMBER DONOVAN-STEVENS

12-13 FEB 2020

Future of Finance and CFO Summit Asia 2020 [ SINGAPORE – LOCATION TBC ] The Future of Finance and CFO

10-12 FEB 2020

Fintech Week Tel Aviv [ TEL AVIV STOCK EXCHANGE, ISRAEL ]

Summit Asia 2020 is an event that seeks to create the connections and share the knowledge that will bridge the gap between industry 4.0 and 5.0.

Now in its fourth year, Fintech Week

As the title suggests, this will be an

Tel Aviv is an annual event in Israel that

excellent opportunity for CFOs to

brings together a mass of fintech com-

come together to share critical strate-

panies in order to network, discuss

gies as the industry gears itself for

and plan for the future of finance. This

the next wave of digital disruption.

year’s conference will bring regulation

Speakers include Axel Paix, Chief

into focus, as this remains an integral

Financial Officer, Asia Pacific Brenntag

part of the successful evolution of fin-

Asia Pacific Pte Ltd; Dr Yanyong

techs. Other key points of discussion

Thammatucharee, Chief Financial

include: personalisation, robo-advice,

Officer, Leadway Heavy Machinery

identity management in fintech and

(LHM); Joe Diche, Chief Financial

diversity across the industry. Fintech

Officer, Propertyguru Group; Daniel

week has a huge sponsorship, includ-

Berenbaum, Chief Financial Officer,

ing major finance and tech firms such

Asia Pacific GlobalFoundries; and

as IBM, HSBC, Citi, Intel, Barclays,

Philip Pfeiffer, Chief Financial Officer

KPMG and Allianz, to name a few.

Asiatic, Llyod Maritime LLP.

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EVENTS & A S S O C I AT I O N S

The biggest events and conferences around the world for fintech leaders

26-27 FEB 2020

FiNext Dubai 2020 [ DUBAI ]

24-27 FEB 2020

Payments Summit 2020 78

FiNext Dubai is not only a conference hosting fintech startups, tech provid-

[ SALT LAKE CITY, USA ]

ers and investors from all over the world,

This years Payments Summit takes

but it is also an awards ceremony that

place in Salt Lake City, with the

acknowledges fintech thought leaders

venue situated just next door to the

who are shaping the payments indus-

University of Utah, Salt Lake Marriott

try today. Speakers include: Ramkumar

Downtown at City Creek. In February,

Balasubramaniam, Head of Financial

Secure Technology Alliance and the

Planning and Analysis and MI, Barclays;

U.S. Payments Forum will again join

Mark Homeier, Global CEO, Maxonrow;

together to host the 13th annual event,

Alex Mashinsky, Founder Celsius

where delegates will discuss the

Network, Venture Investor; as well as

$20bn industry that is fintech in North

speakers from The Kibrel Network,

America. The event is open to both

Policybazarr.ae, Circe Partners and

members and non-members, welcom-

Ehata Financial. Dubai is the first of

ing payment providers, networks,

three FiNext conferences in 2020, with

fraud experts, investors and anyone

events taking place in San Francisco

else operating within the industry.

and Amsterdam later in the year.

JANUARY 2020

EDITED BY

AMBER DONOVAN-STEVENS

3-4 MARCH 2020

9-10 MARCH 2020

[ MÜNCHEN, GERMANY ]

[ MIAMI, FL, US ]

Delegates can meet for this year’s

Taking place this year at the Hyatt

Insurance Innovators convention at

Regency Miami, Florida, Future Digital

the Sofitel Hotel Munich Bayerpost,

Finance launches its 2020 annual con-

Bayerstraße 12, 80335 München,

ference, welcoming a host of speakers

Germany; an event that has been

from companies such as Greenlight

described by the CEO of WIlov to be an

Financial, Ally, United Federal Credit

“Excellent conference, both for its con-

Union, First Commonwealth Federal

tent and the quality of interaction with

Credit Union, Teachers Credit Union,

participants.” Trending topics for 2020

Western Union, among many more to

will include open insurance, AI, techno-

speak. Future Digital Finance is a part

logical development and innovation

of Worldwide Business Research LLC,

through collaborative partnerships.

which defines itself against other

C-level executives from Generali, Axa,

conference production companies by

Ergo, Link3, Baloise and Gothaer will be

avoiding conference halls and opting

delivering keynotes across these top-

for top tier-resorts; organising the

ics, sharing on their experience across

entirety of the event from concept

industry innovation before opening the

through to topic delivery while also

event up to networking opportunities.

staffing the event with its own team.

Insurance Innovators

Future Digital Finance

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J O H N S O N W I N T E R & S L AT T E R Y

80

Digitally transforming the legal industry WRITTEN BY

GEORGIA WILSON PRODUCED BY

ANDREW STUBBINGS

JANUARY 2020

81

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J O H N S O N W I N T E R & S L AT T E R Y

Ross Forgione, Chief Information Officer at JWS, discusses digital transformation within the legal industry

J

ohnson Winter and Slattery (JWS) is an independent national Australian law firm with over 60 partners based across five

offices in Australia. JWS advises major Australian and international corporations, investment funds and other clients on challenging transactions and disputes in Australia. “We create value through 82

legal and commercial analysis, pragmatism, the effective application of technology, project management and a collaborative work style,” says Ross Forgione, Chief Information Officer at JWS, who has over 30 years’ experience in information technology engineering.

JWS’ vision is to be a leader in the legal industry, producing high-quality legal work for Australia and its sophisticated commercial clients. Since its founding in 1993, Forgione highlights that JWS’ systems have evolved organically with built up and built out layers. During his time at the firm, Forgione has worked to evolve and modernise the firm’s layered systems through iterative transformation over time, creating a strong foundation for its operations and producing a system that JWS can leverage and extract benefits from.

JANUARY 2020

83

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J O H N S O N W I N T E R & S L AT T E R Y

“ We create value through legal analysis, commercial analysis and pragmatism, the effective application of technology, project management and a collaborative work style�

Ross Forgione Chief Information Officer, JWS

84

JANUARY 2020

CLICK TO WATCH : ‘JOHNSON WINTER & SLATTERY CASE STUDY’ 85 Driving meaningful change is a

says Forgione. “We collect analytical

primary challenge for Forgione, who

information from the data we ingest,

highlights that JWS is continuously

generate or export to identify how our

looking at its internal processes to find

process are performing internally and

ways to deliver more value to its clients.

externally.” JWS has established key

Forgione also outlines that while JWS

partnerships with Microsoft, VMware

provides Australian legal advice, it has

and Pure Storage to further assist

clients, both domestic and foreign, that

unlocking the potential value we can

conduct business globally. Therefore,

derive from these data. “We have

part of Forgione’s job is to ensure any

worked very closely with VMware and

current or future technology imple-

Microsoft, maintaining a strong rela-

mented by the firm can support and

tionship with both organisations. Their

is compliant with international best

strategic paths help us understand

practice. “Our goal is to identify oppor-

what we need to be thinking about now

tunities to be as efficient as possible,”

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

J O H N S O N W I N T E R & S L AT T E R Y

86

Forgione has recently attended a

he says. “We are currently investigating

number of international legal technol-

how we can use AI and other machine

ogy conferences focused on driving

learning based software tools and

change that will improve the delivery

services to enhance the value of our

of services to clients and create a bet-

data and improve the ways in which we

ter working environment for the firm’s

service our clients.” Although Forgione

people. The conferences also gave

acknowledges that “AI will – for some

Forgione the opportunity to discuss

industries – make the world a better

common challenges, potential goals

place”, in terms of the legal industry, he

and opportunities with his peers in the

sees the application of AI broadening

industry, in particular involving artificial

over time with current applications lim-

intelligence (AI). “I don’t think I’ve been

ited to specific tasks. An area Forgione

to a conference in the last three years

has seen AI benefit the legal industry

where AI hasn’t dominated the agenda,”

is bulk contract review, removing

JANUARY 2020

the need for lawyers to review large

“ Our goal is to identify opportunities to be as efficient as possible” Ross Forgione Chief Information Officer, JWS

amounts of information.

Other areas of innovative technology that Forgione and his team are looking into include leveraging Big Data.

“We’ve got over 25 years of data, which we are now mining and analysing in our innovation incubator to develop useful insights to assist legal practitioners when making decisions,” he says.

JWS is currently working with Pure Storage, building its data warehousing platform. “We hold large volumes of data at JWS, and if our platform is

E XE CU T I VE PRO FI LE

Ross Forgione Ross (MBA) is a seasoned professional with more than 30 years’ experience in the design, delivery and integration of IT services and major organisational change programmes. He has extensive senior management, services delivery, strategy & architecture/management, with subject matter expertise in information technologies, IT to business alignment, business process improvement, project management and transformational leadership. His skills have been developed through business and IT consultancy in manufacturing, professional services and broadcasting organisations, combined with active leadership roles held with Austereo and Johnson Winter & Slattery Lawyers.

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

87

J O H N S O N W I N T E R & S L AT T E R Y

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89 not able to deliver the performance and reliability we need, it may take too long to receive actionable results,

1993

Year founded

which isn’t practical for a commercial organisation.”

Forgione, however, does explain that the implementation of technology needs to be carefully considered.

HQ

Sydney New South Wales

Although there are significant benefits of new technology, there are challenges to be mindful of too. “As a business you need to identify where the opportunities lie and assess them. If it makes commercial sense

200+

Number of employees

to proceed with a technology driven w w w.f i nte c hma ga z i n e. com

J O H N S O N W I N T E R & S L AT T E R Y

“ A s a business you need to identify where the opportunities lie and assess them�

90

Ross Forgione Chief Information Officer, JWS

JANUARY 2020

initiative – then proceed,” he says. “But, if you can be effective without having to apply new technology, and you can accomplish a very quick resolution with existing technology or people that will stay in place and continue to serve its purpose, then take that route.”

When implementing new technologies firms such as JWS need to consider the following areas: • Is the technology easily implemented and rolled out to the end users (be they lawyers or other employees in the organisation)? Are the costs associated with the new technology, including in relation to its purchase, the training required to use it and the costs of the inevitable disruption caused by most changes in workflow going to deliver an appropriate level of return once the technology is used in the business?

• What impact, if any, might new technology have in relation to the security of our client’s information and the integrity of our systems? To the extent that new vulnerabilities might arise, what steps can we take to remedy or mitigate these risks?

• Can the new technology be widely w w w.f i nte c hma ga z i n e. com

91

J O H N S O N W I N T E R & S L AT T E R Y

“ We’ve got over 25 years of data, which we are now mining and utilising it in laboratories to further 92 remove bias and develop useful insights for legal practitioners to use when making decisions” Ross Forgione Chief Information Officer, JWS

used so that the new benefits can be enjoyed at scale?

• What impact will the new technology have on the performance of our existing systems and infrastructure – is this manageable?

When it comes to data protection and cybersecurity, JWS ensures it covers all its bases. The firm not only utilises encryption technology, penetration testing, response plans and real-time monitoring, but also conducts

JANUARY 2020

93

specific security awareness education

passionate people, who experiment

programmes for its staff members,

both within its innovation incubator and

in addition to carrying out training

in the provision of services to the firm’s

courses and demonstrations.

clients, is what drives JWS’ ability to

Reflecting on the firm’s development,

stay ahead of fast evolving technology.

Forgione believes the firm’s biggest

JWS expects to be among the most

success has been how quickly JWS

innovative providers of legal services in

has been able to adapt and embrace

the Australian market for a good many

new technology in order to introduce

years to come.

innovations to best serve clients.

Forgione believes that networking, attending conferences and the firm’s w w w.f i nte c hma ga z i n e. com

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