Global Banking & Finance Review Issue 55 - Business & Finance Magazine

Issue 55

Dr Adesola Adeduntan: Establishing FirstBank as the Dominant Player in Digital Banking Propositions

www.globalbankingandfinance.com

WELCOME TO OUR ESG UNIVERSE SCAN HERE

SUCOR AM ESG PRODUCTS

www.sucorinvestam.com

blog.sucorinvestam.com

sucorassetmanagement

sucor asset management

PT Sucorinvest Asset Management is registered and supervised by the OJK, with registration number KEP-01 / PM / MI / 1999.

CONTENTS

Chairman and CEO Varun Sash Editor Wanda Rich email: wrich@gbafmag.com Head of Distribution & Production Robert Mathew Project Managers Megan Sash, Amanda Walker Video Production and Journalist Phil Fothergill Graphic Designer Jessica Weisman-Pitts Client & Accounts Manager Chanel Roberts Business Consultants Rick Saikia, Monika Umakanth, Stefy Abraham, Business Analysts Samuel Joseph, Dave D’Costa Advertising Phone: +44 (0) 208 144 3511 marketing@gbafmag.com GBAF Publications, LTD Alpha House 100 Borough High Street London, SE1 1LB United Kingdom Global Banking & Finance Review is the trading name of GBAF Publications LTD Company Registration Number: 7403411 VAT Number: GB 112 5966 21 ISSN 2396-717X. The information contained in this publication has been obtained from sources the publishers believe to be correct. The publisher wishes to stress that the information contained herein may be subject to varying international, federal, state and/or local laws or regulations.

The purchaser or reader of this publication assumes all responsibility for the use of these materials and information.

However, the publisher assumes no responsibility for errors, omissions, or contrary interpretations of the subject matter contained herein no legal liability can be accepted for any errors. No part of this publication may be reproduced without the prior consent of the publisher

FROM THE

editor Dear Readers’ Welcome to Issue 55 of the Global Banking & Finance Review. Whether you're a longtime reader or just now stumbling upon our pages, we're thrilled to guide you through the financial labyrinth.

In our exclusive cover story on page 24, we delve into the transformative journey of FirstBank under the strategic leadership of Dr. Adesola Adeduntan, CEO of FirstBank Group. Dr. Adeduntan has played a pivotal role in expanding FirstBank’s customer accounts from 10 million to over 42 million, making it a major player in Africa’s digital banking landscape.

Join us as we explore FirstBank’s evolution from a traditional banking institution to a digital powerhouse, the bank’s commitment to financial inclusion through innovative solutions like the FirstMonie Agent Banking Network, and Dr. Adeduntan’s dedication to corporate responsibility and sustainability, all of which have cemented FirstBank’s status as Nigeria’s leading financial services solutions provider.

Cenk Ipeker, General Manager of Cloud at NICE Actimize, explores the evolving landscape of cloud transformation in the financial services sector, emphasizing the shift from speculative discussions to real-time implementation across institutions. Ipeker underscores the profound nature of this strategic transition, highlighting its extensive implications on organizational culture, skill sets, and operational models, beyond the realms of IT. He introduces change management as an indispensable component of the cloud journey, outlining four pivotal strategies to ensure seamless adaptation, foster innovation, and unlock the full spectrum of long-term benefits offered by cloud technologies. Flip to page 22 to find out more.

On page 30, Commerzbank’s Franz Murr, Regional Head of Asia-Pacific, Ha Bach, Chief Representative, Vietnam, and Thira Nuntametha, Senior Representative, Thailand, explain how two of ASEAN’s fastest growing economies are attracting foreign investors and building out crucial digital, transportation and energy.

At the Global Banking & Finance Review, we're more than just a magazine; we're your compass in the ever-evolving world of finance. Our mission? To bring you unparalleled insights, breaking news, and diverse perspectives. Whether you're knee-deep in the financial sector or a curious onlooker, there's something here for you. Dive in, engage, and do share your thoughts.

Enjoy!

Wanda Rich Editor

®

Stay caught up on the latest news and trends taking place by signing up for our free email newsletter, reading us online at http://www.globalbankingandfinance.com/ and download our App for the latest digital magazine for free on Google Play and the Apple App Store

Issue 55 | 03

CONTENTS

Inside...

FINANCE

30 Thailand and Vietnam spotlight

40 Dangerous dependency: How a

Franz Murr,

new approach can remove the damaging crutch in the banking and finance industry created by widening IT skill gap

Regional Head,

Julian Hamood,

Asia-Pacific,

President,

Ha Bach,

Trusted Tech Team

tech and infrastructure expansion in pursuit of high growth

Chief Representative,

46 How AI can support the

Vietnam, Thira Nuntametha,

mortgage lending process

Senior Representative,

Tom Chaplin,

Thailand

Head of UKI Mortgage Product

36 Open banking: Shaping the

nCino

future of FinTech and Finance

48 Private sector leader? This is

CEO,

why you should serve a term in the public sector

Prommt

Anna Dickinson,

Donal McGuinness,

Consultant in Odgers Berndtson’s

36

Central Government Practice

48 04 | Issue 55

CONTENTS

This Issue BUSINESS

18 Overcoming the tech overload:

Refining the hybrid work model in capital markets

TECHNOLOGY

10 PCI SSC takes aim at APIs Sebastien Marotte, President,

Terry Doherty, CEO and Founder, Doherty Associates

20 Embracing AI for business sales success

Box EMEA

12

A global call to action: Harnessing the potential of unstructured data Antoine Vastel,

Tony Grout,

Head of Research,

Chief Product Officer,

DataDome

Showpad

42 How marketplaces provide

technology ecosystems for international sales strategies

16 Demonstrating the value of

cybersecurity investment in uncertain times Chase Richardson,

Tony Preedy,

Principal Lead Consultant,

Managing Director,

Bridewell

Fruugo

44 Q&A with WorldFirst: Supporting

22 Four Change Management

Sumit Arora,

Strategies to Foster Successful Cloud Transformation at Financial Institutions

Managing Director, UK and EEA,

Cenk Ipeker

WorldFirst

General Manager, Cloud,

SMEs with international trade

NICE Actimize

38 Don’t let economic uncertainty

cloud your digital roadmap: How banks can chart a clear path for innovation Peter-Jan Van De Venn, Vice President, Global Digital Banking,

22

Mobiquity

Issue 55 | 05

CONTENTS

Dr Adesola Adeduntan: Establishing FirstBank as the Dominant Player in Digital Banking Propositions

Cover Story...

Read it on page 24

06 | Issue 55

You went from playing with dolls to becoming a fashion powerhouse Let’s elevate your great with Absa Business Banking solutions.

Whatever inspired you to start your business, we offer a variety of business banking solutions to help you take it to the next level.

We see your great. Now let’s elevate it. Speak to an Absa Relationship Manager today.

That’s Africanacity. That’s Absa.

TECHNOLOGY

PCI SSC takes aim at APIs

James Sherlow Director Field Services Engineer, EMEA Cequence Security

Application Programming Interfaces (APIs) are the glue between mobile and web applications work and play a vital role in online payments. Consumers and businesses expect a smooth and engaging application experience when conducting transactions and APIs have facilitated this, enabling merchants and financial organisations to swiftly rollout new services. However, as APIs act as highly visible and well-defined doorways into the data and business processes of organisations, they’re also now a prime target for attackers.

Seen as the Achilles heel in ecommerce, attacks against APIs are resulting data breaches are expected to double by next year, according to Gartner. Consequently, the PCI Security Standards Council (PCI SSC) has taken a number of steps to better protect them, starting with new provisions for API security in the latest version of the Payment Card Industry Data Security Standard, PCI DSS 4.0. Largely unchanged for the past decade, version 4.0 is set to become mandatory from April 2024, and all those in scope will need to adopt these new practices to secure their APIs.

10 | Issue 55

TECHNOLOGY

The main area pertaining to APIs is in Requirement 6 which requires those in scope to Develop and Maintain Secure Systems and Software. Section 6.2 which applies to custom-developed software stipulates how code should be developed and subjected to code reviews to ensure it is developed according to secure code guidelines, that existing and emerging vulnerabilities are looked for and corrections made prior to release. The section essentially formalises the need to adopt a shiftleft approach with regards to API development thereby helping to prevent vulnerabilities making it into production.

API attack patterns demand unique defence Of particular interest is the list of attacks to prevent/ mitigate in section 6.2.4 which now includes business logic abuse for the first time which are “attempts to bypass application features and functionalities through the manipulation of APIs”. Even perfectly coded APIs can be exploited via business logic abuse which means those that are deployed can still be compromised even after being subjected to rigorous development testing.

Signature-based defence systems are unable to detect this type of exploit, making it notoriously difficult to spot.

However, continuous monitoring of all API calls will enable AI models to learn business logic, leading to Generative AI test suites for each API. This will see the shift-left concept of testing API code move beyond the standard test suites we have today. It’s also worth mentioning that business logic abuse is often perpetrated by bots, so this highlights the need to use bot mitigation and API defences together.

Section 6.4 focuses on protecting public-facing web applications against attack. External as opposed to internal APIs are at higher risk of discovery and abuse and this section makes provision additional safeguards in the form of regular annual reviews or automated technical solutions that seek to detect and prevent web-based attacks (6.4.1). The following section (6.4.2) then provides further detail on what that automated technical solution should look like and be capable of. In addition to being in front of the application and configured to detect and prevent web-based attacks, it should also be actively running ie continuous, generate audit logs, and either block or generate an alert that is immediately investigated.

The example given is of a Web Application Firewall (WAF) but as the name suggests, these have been developed to protect web applications, not APIs. A WAF uses signature-based threat detection to look for attacks with tell-tale code but as previously mentioned, business logic abuse sees the functionality of the API used against it. It is therefore not strictly an attack but a form of exploitation and leaves no signature. Rather, the giveaway is the behaviour and the requests being made to the API, changes in web traffic volumes and burst rates etc. Therefore, an API-specific automated security tool is advisable in order to meet these requirements and to detect and block such attacks.

Additions to the PCI SSS In addition to the PCI DSS requirements the PCI SSC has also recently updated the PCI Secure Software Standard. First released in 2019 this was updated in May 2023 and seeks to ensure payment software is designed, developed, and maintained in a manner that protects transactions and data, minimises vulnerabilities, and defends against attacks. The latest version includes additions to the Web Software Module and API-specific requirements for “documenting and tracking the use of open-source and thirdparty software components and APIs in payment software” and “controlling access to payment software web APIs and other critical assets”.

These two additions are important because they help to amplify the importance of several API vulnerabilities, where attackers are actively mixing and matching attack methods. Indeed, it’s a practice that has recently been recognised in the Open Web Application Security Project API Top Ten list of categorised security threats updated for 2023. It now features category API6:2023 which reflects the fact that API security that isn’t functioning properly can be targeted by automated bot attacks which bombard the API with numerous techniques.

What the changes to both the PCI DSS and PCI Secure Software Standard reveal is that API security will now need to be prioritised by merchants and processors. APIs will need to be securely developed, continuously monitored and managed in order to better protect the transaction landscape. And, while shift left testing can help, steps will need to be taken to protect production APIs, especially those that are public facing. Existing automated solutions cannot spot the type of business logic abuse attacks or defend against bot-automated attacks that pivot through numerous tactics, techniques and procedures that we are seeing. In order to do that, the sector will need API-specific tools that use behaviour-based detection and defence tactics for blocking and frustrating attackers.

Issue 55 | 11

TECHNOLOGY

A global call to action: Harnessing the potential of unstructured data When most people think about data, they think rows and columns, numbers and figures. But there’s another kind of data that holds an enormous amount of untapped business potential — and it’s extremely common within every company.

In 2022, IDC found that an astounding 90% of all data generated was classified as unstructured.

Sebastien Marotte President Box EMEA

That’s all the contracts from your legal department, roadmaps from your product managers, videos from your marketing department, and slide decks from your execs.

It’s all the files that every organization creates, shares, and collaborates on in the normal course of business, every day. And there’s a lot of it.

While most leaders take for granted the dominance of unstructured data within their organizational ecosystems, they don’t typically recognize the sheer amount of untapped information held within that content. All of this unstructured data holds valuable insights and IP that would be crucial to your business success if you could centralize it and apply a strategy to it.

I’ve witnessed firsthand the transformative potential that lies within centralizing unstructured data. Yet, right now, only half of a typical organization’s unstructured data is analyzed to extract information. The great majority of company leaders (92%, in fact) agree that managing all of their unstructured data on a unified, governed, secure, accessible platform would have a positive impact on business outcomes, including productivity, cost, and security. With generative AI entering the picture and security an ever-bigger threat, the pressure to get a handle on unstructured data is acute.

12 | Issue 55

Generative AI’s impact on the unstructured data conundrum The wealth of information within existing content and files is enormous, but until now it’s been a relatively inert treasure.

GenAI has emerged as a game-changer for business when it comes to unlocking hidden value from massive volumes of diverse and complex datasets. With GenAI, organizations can now synthesize and analyze the abundant information within their unstructured data at scale, giving the first-movers in this domain unparalleled competitive advantages.

TECHNOLOGY

GenAI can “data mine” in a lot of interesting ways within content.

It can summarize long-form documents and surface the most important insights.

It can be used to find information within giant libraries of disparate types of files with a simple prompt. It can extract metadata from multiple files to automatically trigger business processes.

The use cases are abundant, and 65% of organizations recently polled by IDC have deployed some sort of GenAI solution. However, less than a third of the organizations are using GenAI broadly across their unstructured data.

Now’s your chance to get ahead of the curve. But before you can take advantage of applying GenAI broadly to your unstructured data, you need to analyze exactly where your data lives in the first place.

Embracing centralization within your content strategy One of the biggest challenges with unstructured data is that it’s typically dispersed across a large span of different tools, systems, apps, and users. Just getting a handle on the content your organization produces and manages is a massive obstacle — never mind tapping into it.

Centralizing your content is the first step to being able to use it strategically.

IDC found that almost every organization that claims “good” or “excellent” ability to know or catalog its unstructured data has a centralized data model. This is not a coincidence. Siloed data presents massive challenges; centralized data is accessible (not to mention easier to secure). In terms of using GenAI, centralization has the strong advantage of putting a large amount of data in one place in order to train large language models efficiently. There’s a vigorous connection between centralizing content and applying AI to that content.

The benefits of centralizing your data Along with enabling GenAI initiatives broadly within your organization, centralized content also brings unified content governance, higher security, increased productivity, and better accessibility. IDC found that company leaders strongly believe centralizing unstructured data on one platform supports product or service innovation, has a positive impact on cost, and improves data security.

In today’s interconnected world, where competition knows no boundaries, it’s imperative for global organizations to recognize the significance of centralizing unstructured data. By leveraging unified, governed, secure platforms, businesses can unlock untapped potential and gain a competitive edge in their respective industries. This makes for more productive organizations, fosters innovation-driven cultures, and drives positive, bottom-line results. These are not just bold theories.

With the “IDC White Paper” we have the numbers to back up these claims.

The time has come to harness the power of centralized unstructured data — an opportunity any forward-thinking organization won’t want to overlook when aiming for success on a global scale.

All IDC data comes from the following: *Source: IDC White Paper, Sponsored by Box, “Untapped Value: What Every Executive Needs to Know About Unstructured Data,” Doc. US51128223, August 2023

Issue 55 | 13

TECHNOLOGY

Unravelling the potential of large language models

Henry Vaage Iversen CCO & Co-Founder Boost.ai

The world of natural language processing (NLP) and artificial intelligence (AI) has undergone a monumental transformation in recent years thanks to the advent of large language models (LLMs). These sophisticated models, like OpenAI’s ChatGPT, have opened up new avenues of opportunity with their ability to grasp human-like text and excel at various language-related tasks. The potential of this groundbreaking technology has captivated people worldwide, promising to revolutionise our lives and work. However, understanding the functionality of LLMs is vital to realising their full potential.

LLMs’ core functionality lies in a neural network trained on vast textual datasets. By scrutinising patterns and relationships within the data, they become adept at predicting the next word in a sentence. Through this process, LLMs gain an innate understanding of grammar, syntax, and even subtle semantic nuances, allowing them to generate coherent and contextually appropriate responses when given prompts or queries.

The training regimen involves exposing the model to vast quantities of data, including books, articles, and websites.

The model becomes adept at identifying patterns, extracting meaning, and generating text based on the input it receives. Consequently, LLMs possess an astonishing ability to emulate human language, holding the potential to elevate a wide range of applications and services.

Implementing Large Language Models Successfully While the potential of large language models is enormous, their successful implementation necessitates careful adoption. Here are some essential factors to ensure effective deployment:

14 | Issue 55

•

•

•

Adapting LLMs for your needs: Fine-tuning LLMs for specific applications is a game-changer for boosting performance. This process involves training the model on task-specific data and adapting it to a particular domain or problem.

The result is an optimised output for specific use cases, such as customer support or content generation.

Building user feedback loops: Creating successful LLM implementations requires a feedback loop from users. Collecting feedback, monitoring user interactions, and iteratively improving the model based on this feedback are critical steps to refine its performance over time.

Accounting for bias: The bedrock of training LLMs lies in highquality data. Curating diverse and representative datasets becomes paramount to mitigate biases and prejudices in the source data.

Moreover, continuous monitoring and evaluation are indispensable to identify and rectify potential biases during the model’s deployment.

Leveraging Large Language Models for Exceptional Virtual Agents One area where LLMs have showcased remarkable potential is their integration with conversational AI. By combining LLMs with Natural Language Understanding (NLU), a hybrid system emerges, harnessing both technologies’ strengths. While NLU delivers precise and reliable responses within a specific business context, LLMs optimise content generation with their vast general knowledge. This combination of technologies can also improve virtual agents in a few other key ways too:

TECHNOLOGY

•

•

•

Training AI properly: The text generation prowess of LLMs can streamline the AI training process. They can generate on-brand virtual agent responses, provide multiple alternatives for a single sentence to use as training data and rewrite answers to match specific lengths and tones, saving days of manual work.

Providing expanded language capability: LLMs can also be invaluable in expanding virtual agent solutions into new markets or languages. They offer translations and suggest synonyms when building out a languageunderstanding dictionary, saving time and enhancing the quality of the virtual agent.

Creating better customer service: Customer service agents can harness LLMs to enhance their capabilities. LLMs can scan and summarise conversations between customers and virtual agents, providing human agents with clear and concise insights. Additionally, they help fine-tune the length and tone of responses to match the conversation context and generate pre-written messages incorporating essential information from the conversation history.

Why a Hybrid Approach Holds the Key to Success With such a diverse range of benefits and capabilities, it would be easy to think LLMs have no downside. However, responsible and well-considered adoption is paramount. The raw processing power of LLMs is extraordinary, but they can be susceptible to hallucinations and inaccuracies. Embracing a hybrid approach is the way to go if businesses seek to deliver the best customer-facing virtual agent experiences. Connecting LLMs to conversational AI pre-trained on company-specific data, with appropriate guardrails in place, allows for virtual agent scalability and creativity without compromising accuracy and data quality.

We have entered the age of the LLM and, with it, a new age of technological efficiency. By understanding the strengths and weaknesses of this technology, as well as having an understanding of our specific needs, businesses can unlock the full potential of LLMs to enrich user experiences and create more intelligent and engaging conversational systems.

Nevertheless, it remains crucial to address biases and connect these models to reliable source data to ensure the information they provide is accurate, thus preventing their potential in an enterprise setting from going unrealised.

Issue 55 | 15

TECHNOLOGY

Demonstrating the value of cybersecurity investment in uncertain times The financial community is coming under mounting pressure to safeguard its interconnected systems and networks from cyber threats, particularly following a string of high-profile attacks on the sector from nationstate actors and other criminal groups. One recent example includes the recent breach of financial software provider ION Markets, which upended derivatives trading across multiple countries. Organizations are left reckoning with their heightened status as vulnerable and attractive targets for threat actors.

To address these concerns, the White House has released a National Cybersecurity Strategy, imposing mandatory regulations across all industries to “disrupt and dismantle” threat actors as part of a persistent, continuous campaign. Imminent changes to the Securities Exchange Commission (SEC) cybersecurity rules will also raise the pressure on financial organizations, requiring them to promptly disclose all security incidents and implement robust measures against cyber-attacks.

Time is increasingly of the essence – but preparation doesn’t come for free. Amidst lingering inflationary pressures, recent Bridewell research has revealed that 86% of finance organizations within US critical infrastructure are seeing reductions in their cybersecurity budget, largely attributed to the economic slowdown.

While there is no silver bullet in cybersecurity, it’s also something that simply cannot be compromised. So, how can financial organizations show they are finding the right balance, maximizing resource efficiency and minimizing cyber threats amidst rising costs and risks?

Optimizing security ROI

Chase Richardson Principal Lead Consultant Bridewell

16 | Issue 55

According to Bridewell’s research, US finance organizations suffered an average of 42 ransomware-related security incidents in the last year alone – a significantly higher mean than for any other sector within critical infrastructure.

These attacks can have a devastating financial impact on businesses, with costs going well beyond the direct ‘hit’ of any ransom paid. The indirect cost of downtime and recovery of lost data can also far exceed the investment required for a proactive and robust security strategy.

Therefore, organizations must embrace a riskbased approach, effectively allocating their stretched resources and concentrating their cybersecurity efforts on protecting the most critical assets and data. This will result in a much greater return on investment (ROI) as it tightly aligns security measures with potential business impacts, enabling firms to minimize disruptions while mitigating the financial and reputational consequences of a cyber-attack.

Financial services organizations should also adopt a mindset of prioritizing quality over quantity, not only in terms of security tools but also when it comes to third-party vendors. Simply investing in more and more disparate tools is expensive, unsustainable, and often fails to consider the integration between technologies and the potential security holes that may arise. Likewise, an influx of vendors and partners can lead to increased risk exposure. Instead, consolidating technologies, tools, and vendors is vital for enabling a unified view of security across the business, allowing firms to streamline risk analysis and assessment.

It also presents opportunities to identify where technology can relieve operational challenges by using automation to enhance efficiency.

With Bridewell research revealing that financial firms face an average of 44 security incidents related to social engineering every year, it is more crucial than ever to invest in the continuous cybersecurity training and development of an organization’s first line of defence – its staff. This ensures that employees remain updated on the latest practices and evolving threats, enabling them to respond promptly to emerging cyber risks and reduce the potential impacts and costs of a security incident.

Demonstrating cybersecurity’s worth While cybersecurity has shifted from a technology risk to a business imperative, some C-suite decisionmakers may still struggle to recognize the concrete value of implementing a robust security strategy, particularly during periods of financial uncertainty and competing priorities. Therefore, it is vital to emphasize the ROI of cybersecurity, especially when demonstrating its impact on technology, people, and processes across the entire organization.

TECHNOLOGY

To gain executive buy-in and support, security leaders should first establish a clearly defined cybersecurity strategy that coordinates with the firm’s wider business goals. This strategic alignment will play a vital role in demonstrating to the board how investing in cybersecurity can yield specific objectives while effectively mitigating risks. Moreover, a clear and cohesive strategy provides a framework for measuring progress and assessing the overall ROI of cybersecurity spend.

When it comes to communicating the impact of security investment in a meaningful way, leaders must set measurable objectives, define key performance indicators (KPIs), and establish clear benchmarks, so that they can provide evidence of all positive impacts on the organization’s financial and operational performance. By highlighting the competitive advantage gained, security teams will be able to showcase the lasting value of the investment, explaining how the benefits go far beyond peace-of-mind against cyber-attacks and deliver long-term business benefits.

Enhancing security with MDR To optimize cybersecurity and overcome resource limitations, finance organizations should cut through the noise of old-fashioned tools, especially for threat monitoring and response. Outdated technology stacks can generate a barrage of alerts, which often require manual review and expert analysis before any team can take action. In contrast, modern tools allow for real-time identification of patterns and behaviors across multiple technologies, effectively minimizing noise and condensing it into a few actionable alerts. This empowers security teams to streamline their operations, prioritizing critical threats and responding quickly and efficiently.

Managed detection and response (MDR) is particularly powerful as it combines human analysis, artificial intelligence (AI), and automation to rapidly detect, analyze, investigate, and actively respond to cyber threats around the clock. Deployed swiftly and cost-effectively as a fully outsourced service or via a hybrid security operations center (SOC), MDR helps organizations to establish a robust security architecture to protect their on-premises systems, cloud-based applications, and SaaS solutions. By enabling firms to quickly tackle new cyber threats as they unfold, MDR also minimizes the time hackers have to dwell within a network.

The most effective services also utilize extended detection and response (XDR) technology. This ensures additional detection and response capabilities across network, web and email, cloud, endpoint, and – most crucially – identity. Working hand in hand with MDR, this comprehensive approach empowers organizations to safeguard their users, assets, and data from an ever-growing range of cyber threats.

In the face of mounting economic pressures, financial firms must now make cybersecurity a top priority to protect their critical operations and data. By collaborating with a trusted security provider to implement MDR and XDR, organizations can streamline essential cybersecurity processes and enable staff to level up their skills. This proactive stance not only maximises the ROI of security, but also enables firms to effectively manage risks, protect their reputation, and maintain the trust of their customers in an increasingly volatile security landscape.

Issue 55 | 17

BUSINESS

Overcoming the tech overload: Refining the hybrid work model in capital markets

The COVID-19 pandemic’s seismic shockwaves have drastically reshaped our working lives. Among the most notable changes is the ascendancy of hybrid working models, which blend remote and office-based work.

Many industries, including Capital Markets, have embraced this approach, introducing an array of technological tools to support this shift. Yet, recent research from Doherty Associates suggests that the rapid adoption of these tools is inadvertently hampering rather than aiding productivity. This scenario unveils a pressing issue: the paradox of tech adoption in the hybrid work landscape.

Doherty’s study reveals a disturbing trend: almost a quarter of Capital Market workers are grappling with ‘tool overload’. They contend with too many platforms, making them less, not more, productive. This influx of technology is, ironically, obfuscating workflows rather than streamlining them. It’s a challenge that echoes the paradox of choice theory, where too many options leads to anxiety and paralysis, not liberation. Technology should be a tool that enhances productivity, not a hurdle that workers must laboriously navigate.

A notable discrepancy lies between the perceptions of IT decision-makers and the realities of the workforce. IT leaders might perceive these technological solutions as productivity catalysts. In contrast, the employees dealing with these tools daily often experience confusion and frustration. Only a dismal 15% of knowledge workers in the sector saw substantial productivity improvement, and over a third of employees regularly struggle to find the necessary information and data to perform their jobs.

18 | Issue 55

Terry Doherty, CEO and Founder Doherty Associates

The relevance of these insights is evident when we look at the stances of major banking institutions. For instance, JPMorgan Chase CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and Morgan Stanley CEO James Gorman have all expressed their preference for office-based work, citing benefits such as improved collaboration, culture, teamwork, and mentorship. They believe that in-person interaction facilitates brainstorming and camaraderie, thus endorsing a more traditional work model.

Moreover, the effectiveness of hybrid working, and collaboration tools is putting more flexible working arrangements talent relishes at risk. While hybrid working is increasingly popular, firms are navigating pressure to call workers back to the office.

54% of Capital Market firms have modified their policies in the last year. With only 36% of workers viewing these tools as extremely effective, the roll call back to the office is not surprising. There is a need for effective collaboration and communication within dispersed teams and Doherty’s research has found this lacking.

However, not all banks insist on employees being in the office full time. Several have adopted a hybrid model, mandating employees to be in office for a certain number of days each week, while others offer the flexibility to work from home full-time. This approach mirrors the insights derived from Doherty’s research, underlining the need for more flexible, efficient work structures.

BUSINESS

Clarity in processes

Integrate and automate

Next, firms need to look at their existing processes. It’s also a good chance to examine processes and to try to simplify them using technology or just through removing steps that were important once but are no longer.

Choosing the right tools is one part of the solution, but real value comes from using multiple tools seamlessly.

Understanding the flow of data between applications is key. Once this is done, making data from one application available in another is how applications can support processes to deliver business outcomes.

Introducing a new tool without effective training or clear instructions is akin to throwing someone into the deep end without teaching them how to swim. For any technology to be truly effective, it needs to be paired with comprehensive training and guidelines.

Audit and adopt

So, how can we address these alarming revelations? The answer lies in refining our approach to technology in the hybrid work environment.

Embrace people-centricity The first step is to embrace peoplecentric technology. Firms need to ensure that technology serves as an enabler, not a barrier. The application and implementation of new tools must revolve around the needs of the people using them. It’s not about having the most sophisticated software; it’s about having the software that best meets your team’s needs.

Furthermore, regular auditing of technological tools is essential. Firms need to continually evaluate the effectiveness of the tools they use, gather feedback, and make changes where necessary. What worked a year ago might not be the most efficient solution now. Consider whether there are tools available from your current vendors that might replace standalone ones. The evolution of work is dynamic; hence the tools that support it must also be.

However, change must be managed carefully – it’s vital to have plans for the adoption of new systems so that people know what to use and when.

Define productivity Finally, the discourse around productivity needs to shift. True productivity isn’t about being ‘busy’ with multiple tools; it’s about achieving desired outcomes in the most efficient way possible. Firms need to ensure that their technology and work policies reflect this understanding.

When tools work well together, there’s an opportunity to take a human out of the process and have the machines do the heavy lifting – integration and process automation tools can be brought to bear.

Conclusion While the hybrid working model presents new opportunities for flexibility and work-life balance, it’s clear that we are in the early stages of this journey. We must learn from the shortcomings highlighted by the research. This involves a thoughtful reassessment of our approach to technology in the hybrid work landscape, with a focus on user-centric tools, clear processes, regular audits, and a matured understanding of productivity.

As we navigate this new terrain of work, it’s critical to remember that technology should serve as a bridge, not a barrier, to productivity and collaboration. Firms must be diligent, adaptive, and open to feedback to ensure that their tools and policies support, not overwhelm, their teams.

After all, the essence of work is about people – their talents, creativity, collaboration, and drive. Technology should empower these elements, not overshadow them.

Issue 55 | 19

BUSINESS

Embracing AI for business sales success

Tony Grout, Chief Product Officer, Showpad

For companies that offer products or services, sales success is central to business success. And across the commercial landscape, competition is fierce and expectations from buyers are higher than ever. This coincides with a significant shift in the business of sales, sparked by recent steps forward in the field of Artificial Intelligence (AI).

Forward-thinking companies and their sales teams are already using AI-powered capabilities to their advantage: adding further value to every buyer interaction, while working faster and smarter.

Inevitably, such advancements are reshaping the way businesses and their sales professionals engage and connect with buyers and prospects, and ultimately close deals.

However, to truly engage buyers, sellers must show up as credible consultants – tailoring their approach to address the nuances of each and every specific business challenge. But up until now, tools and technology that can offer a genuine advantage either haven’t existed or haven’t been fit for purpose. But today, AI can help sellers in a number of ways, particularly when integrated into sales enablement technology.

20 | Issue 55

Content Sourcing While sellers were once overwhelmed by a sea of content, AI-powered search reduces the time spent on finding the right documents, instead affording a swift and accurate discovery of the most relevant resources. This reframes the seller experience entirely, allowing them to focus on what truly matters: connecting with their buyers.

It can also help ensure a key resource isn’t missed altogether. As AI streamlines content sourcing, sellers stay informed and well-prepared, ensuring they have the right knowledge at their fingertips to engage in more compelling and informed conversations. This has a real impact – as sellers harness the most relevant content, marketing teams register an increase in their content marketing ROI. According to Statista, more than 80% of marketers worldwide are integrating some form of AI into marketing activities.

BUSINESS

Improving Pitches AI can even help when it comes to delivering the all important business pitch. Sellers and company representatives can record a business pitch and receive actionable guidance on vital aspects of their performance. AI algorithms can analyse crucial elements such as pacing, tone and body language, providing invaluable feedback to refine presentations.

This feedback loop allows sellers to continuously improve their delivery skills, ensuring that every pitch is executed with maximum impact and persuasion. AIpowered guidance not only enhances the effectiveness of individual pitches, but also helps sellers develop their overall communication and presentation skills, enabling them to excel in their sales roles.

In addition, with AI providing real-time sales performance feedback, there is also reduced training and coaching time for sales managers, thus increasing efficiency.

Tailored Presentations By leveraging AI’s strong ability to summarise and distil information, sellers can deliver presentations that resonate deeply with buyers, showcasing their understanding of their unique challenges, and proving that their solutions are the ideal fit. This helps sellers to deliver more bespoke presentations that directly address the specific pain points of each buyer. Through AI-powered assets, key learnings and insights from various content sources are automatically condensed.

In turn, sales representatives can quickly identify the most relevant information and insights, enhancing the buyer journey by providing personalised, high-value content up front. Sales enablement technology that incorporates the use of AI increases overall efficiency, permitting sellers to spend more time on revenuegenerating activities.

But the transformative power of AI in sales extends beyond efficiency gains. It empowers sellers to establish genuine connections with buyers, leveraging technology to create meaningful and personalised experiences. By automating time-consuming tasks, AI frees up sellers’ valuable time, allowing them to focus on building relationships, understanding buyer needs, and offering tailored solutions. This human-centric approach, supported by AI, fosters trust, credibility, and – ultimately – successful sales outcomes.

As the sales landscape evolves at pace, the integration of AI capabilities will become increasingly essential for sellers who seek to thrive in a competitive environment. By harnessing the power of AI, sales professionals can elevate their performance, unlock new levels of productivity, and forge stronger connections with buyers. The future of sales is here and it is powered by AI – a transformational force that is propelling sellers toward greater success in deal closures than ever before.

Issue 55 | 21

TECHNOLOGY

Four Change Management Strategies to Foster Successful Cloud Transformation at Financial Institutions In recent years, the financial services industry has seen a paradigm shift in the cloud adoption conversation from "when it will happen" to "it's happening right now." Many financial institutions today deploy cloud as part of their core computing infrastructures. However, cloud transformation is a strategic decision that extends beyond the borders of IT to encompass people, leadership, organizational culture, skill sets, and operational models. It's challenging and deeply personal, and the mindset of the operation will impact an organization's ability to embrace the changes swiftly and effectively.

Strategy #1 - Prep your teams for change How teams are prepared for change matters because it helps maintain motivation and alignment with an organization’s cloud transformation objectives.

Change management is a crucial component of the cloud journey. It can play a considerable role in capitalizing upon the long-term cloud value, such as minimizing downtime, accessing emerging technologies, accelerating speed to market, and improving innovation opportunities.

This mindset change involves several aspects, like relinquishing tech ownership, determining which processes are still relevant, and upskilling and reorganizing labor resources.

Suppose you're moving to a hybrid environment, for example.

Understand how your organization runs applications and services in your data centers, how these will be integrated with Softwareas-a-Service, and how to operate the pure cloud environment.

Considering the magnitude of cloud transformations, leadership must manage the change holistically to address organizational challenges and facilitate a smooth transition. Four strategies, if successfully implemented, can help FIs manage complex organizational changes and contribute to a consistent cloud transformation journey.

Key to success: • Ensure teams fully understand the differences between operating in a cloud environment vs. an onpremises data center.

• Train and upskill teams to help transform their skill sets.

• Foster enthusiasm about the journey ahead and excite teams about the changes.

Identify the critical work streams that must be developed to comprise the main building blocks of success, such as security.

Target the controls that must be established in the cloud and which tools will deliver that enhanced security position. Usually, this requires extensive team training because it's likely that many of them are unfamiliar with these tools.

It would help if you established robust financial controls to inform, optimize, and operate efficiently, or you risk compromising the value of what you're trying to gain from the cloud.

Strategic partners are another essential angle here because they can tackle the heavy lifting so you can take full advantage of cloud capabilities. This ensures you can focus on the personal component, like getting your teams on board for this new endeavor, educating your people about how new tools will make their jobs more efficient, explaining how they can contribute to the modernization program's success, and providing them with opportunities to expand their skill set.

Strategy #2 - Determine what to delegate to partners Determining and depending on partners for tech ownership is a weighty decision paramount to your overall cloud transformation strategy and business case.

Cenk Ipeker General Manager, Cloud, NICE Actimize

22 | Issue 55

Key to success: • Ensure technology or cloud partners brings specialized expertise, including experience in various deployment models, industry-specific requirements, and risk management.

• Consider a potential partner's capabilities to augment internal resources and core competencies.

• Evaluate if it's a genuinely balanced partnership.

There are numerous considerations in determining what you should control internally and what can be delegated to partners.

First, pay attention to the power of a collaborative partnership that fosters a balanced, win-win relationship and shares a cultural alignment. Work together to define what success looks like so that you can win together.

TECHNOLOGY

Many organizations have shared with us that it's an ongoing challenge to strike a balance between accelerating a modernization initiative and not overwhelming their teams. On the one hand, you want to fuel the fires of enthusiasm for the change, but you also want to manage expectations.

It's essential that executive leadership, including business leaders, functional leaders, and technology leaders, become advocates for the journey. Cloud transformation will only be as effective if everyone understands why the changes are necessary and what they will do for the company.

Be open about the benefits of cloud, including agility, developing new services and products, and innovating faster.

This openness should extend to the new skills that everyone must learn to succeed. It's a mentality of being on a collective journey, learning and adjusting together.

Next, mutually establish mechanisms and accountability to measure and monitor controls to ensure the effectiveness and ongoing compliance of internal and partner-managed controls and maintain a resilient cloud environment.

Also, the complexity of cloud transformation programs may require several partners that provide various skills and capabilities that can fill in corresponding gaps in your internal resources. For example, one of our clients collaborated with one partner for security controls, another for service integration, and another for niche services and ad-hoc requests.

Remember that all of these partners form the system with employees, so partners should be willing to assist employees in learning and growing. Ultimately, it's a collective environment that you will be running in, and a workforce needs to be comfortable with it and enjoy learning from partners.

Strategy #3 - Engage leadership at every level Leadership engagement is a make-or-break factor in the success of any change management approach and plays a vital role in driving a new strategy while centralizing teams around a common goal.

Key to success: • Business, technology, and functional leaders must all embrace the cloud transformation journey.

• Commit to an attainable cloud transformation vision and intentional execution.

• Be proactive in recognizing and communicating challenges and successes along the journey.

Build your initiative around communication and transparency, including where your organization has triumphed and where you're struggling.

This can help maintain positive relationships, promote continuous improvement, and establish accountability for outcomes and results during the transition.

Strategy #4 Don't Underestimate the Effort and Time to Gain Buy-In Large-scale changes from cloud transformations can induce fear and blocking behaviors, and business leaders sometimes underestimate the time and effort demanded to gain buy-in.

Key to success: • Be clear with teams about what's needed from them and what's coming.

• Help employees control their destiny and adapt to the velocity of change.

• Demonstrate the organization’s commitment by modeling the desired behaviors and attitude to reduce fear and set a powerful example for the teams.

Any change that threatens the comfort of how we perform our jobs can generate anxiety. But change can also create remarkable opportunities, and business leaders must ensure they're being vocal about the positive aspects while simultaneously acknowledging the common thread of change resistance.

Embrace a philosophy of explicitness regarding strategy, including which skills and competencies will be needed and which will likely become less necessary or obsolete. One of our FI partners created a successful internal program, enabling employees to invest in learning and development. This allows them to acquire the skills and competencies they need to accelerate their career path, like DevSecOps, and get to that next milestone they want to achieve. Once employees witness a clear commitment to helping them upskill and learn, you can garner a lot of buy-in.

Creating a change-ready culture is no easy feat, especially given the breadth of cloud transformation across the organization at both the broader management and individual levels. However, with an intentional approach to fostering change management and the support of an experienced technology partner, FIs can successfully reshape working behaviors and environments.

Issue 55 | 23

COVER STORY

24 | Issue 55

COVER STORY

Dr Adesola Adeduntan: Establishing FirstBank as the Dominant Player in Digital Banking Propositions Dr Adesola Adeduntan is the CEO of FirstBank Group, the commercial banking arm of FBN Holdings Plc, comprising FirstBank Nigeria and its UK, DRC, Gambia, Sierra Leone and Guinea subsidiaries, to name a few. FirstBank Group's transformation programme, under his leadership, has enabled the bank to achieve significant business expansion: growing customer accounts from about 10 million in 2015 to over 42 million (including digital wallets), becoming the second largest issuer of cards in Africa with over 12 million to date, and onboarding almost 22 million active customers on digital banking platforms.

Dr Adeduntan is a philanthropist and leader with a keen interest in providing platforms for developing other young leaders. He is also a member of the Sigma Educational Foundation, focused on enhancing the quality of the tertiary education system in Nigeria; a member of the Steering Committee of the Private Sector Coalition Against COVID-19 (CACOVID) in Nigeria; a member of the Governing Council of the CIBN, and a member of the Board of Lagos State Security Trust Fund.

When he sat down with Wanda Rich, editor of Global Banking & Finance Review, he reflected on how FirstBank has evolved over the years to maintain its position as Nigeria's leading financial services solutions provider.

"Today, when I look at FirstBank and compare it with what it looked like in 1996, when I had my first professional contact with the bank, I would say its transformation has been unprecedented," he said. "In 1996, only a handful of staff could use a computer because banking itself was very traditional in those days. Those were the days of batch computing, where all the branches put their vouchers together and the processor basically punched in the data from a dedicated computer room. Today, almost every employee uses a computer or electronic device to perform their duties."

Over the last 129 years, FirstBank has successfully reinvented itself and transformed from a largely brickand-mortar setup to the brick-and-click financial institution it is today. He noted how this transition underscores not only the bank's huge investments in technology but also a fundamental shift in the bank's delivery model in serving its teeming customers. "FirstBank has undertaken an extensive transformation of its back-end processes, technology infrastructure and customer interface experience, as well as reporting and governance frameworks to better serve the needs of its stakeholders.

"At FirstBank, we have empowered our customers with several digital channels and capabilities, including FirstMobile, Lit App, FirstOnline, *894# (USSD) banking and FirstDirect transaction banking platforms, to enable them to perform banking transactions from the comfort of their homes and offices. Today, over 90% of all our customer-induced transactions happen on the digital channels. This is a testament to the successful evolution of our delivery channels."

In addition, FirstBank has pioneered the first fully digitised branch in Nigeria's banking landscape with the introduction of the Digital Xperience Centre (DXC), where it leverages modern technology such as humanoid robots and artificial intelligence to enable customers to perform self-service banking transactions. Through self-service kiosks, customers can request and pick up their ATM debit cards in less than three minutes.

"Leading other players in the Nigerian market, FirstBank has done the most to advance financial inclusion in Nigeria through the FirstMonie Agent Banking Network, with over 218,000 agents located in 772 of the 774 local government areas in the country," Dr Adeduntan said. "On the back of this, the bank has been able to bring banking services much closer to customers in rural and underserved communities.

Issue 55 | 25

COVER STORY

"At FirstBank, we see ourselves as much more than a bank; we are also a critical partner in the success of our customers and the markets that we serve. As such, we will continue to evolve to meet not just the current expectations of all our stakeholders, but also their future needs that are yet to appear on the horizon."

The FirstBank DXC is an impressive reinvention of digital banking solutions. He elaborated on the benefits it brings to customers and how it reflects the future of banking in Nigeria. "The DXC reflects the bank's view on the near-future possibilities in financial services delivery, given recent technological advancements. It also underscores the central role modern technology is playing and will play in the bank's operations and service delivery strategy, as well as the level of investments we have made in this space. The DXC is a fully automated, interactive digital branch that was first launched in Lagos, Nigeria in 2021 and has, since then, redefined customers' banking experience through a world of digitised self-service. The second DXC outlet was just recently launched in August 2023 at the University of Ibadan, Oyo State, Nigeria.

"The DXC has no human staff and is fully equipped with digital screens, self-service terminals, card-issuance kiosks, ATMs, humanoid robots, video banking and artificial intelligence, as well as several other digital-led and assisted gadgets and capabilities.

26 | Issue 55

These digital solutions allow customers to take charge of their banking transactions, making selfservice a lot easier while improving turnaround time."

According to Dr Adeduntan, the DXC has been received with tremendous positivity by all customer segments, especially retail customers, and the bank has plans to roll out more outlets in the year. He went into further detail about how the DXC's innovations enhance customer experiences and contribute to the bank's digital transformation strategy. "In line with one of the bank's strategic priorities to build a world-class, customer-first organisation, the DXC is already revolutionising retail customers' experience in Nigeria," he expounded. "Some of the benefits that this innovative solution will afford our customers include, but are not limited to, 24-hour convenient and unassisted availability of banking services; increased banking appeal to the tech-savvy, youthful demography; enhanced customer experience via improved service turnaround time and operational efficiency, due to the simplification of key customer transaction journeys, and a holistic redefinition of the customer experience because of the elimination of human interface in the service delivery chain."

With CSR filling an integral role in FirstBank's business strategy, Dr Adeduntan went on to share some examples of the bank's recent CSR initiatives and their positive impacts on the communities it serves.

"At FirstBank, we value our relationships with all our stakeholders,

especially the communities where our businesses operate," he said.

"Therefore, we are very deliberate in how we engage our host communities to ensure shared prosperity and long-term sustainability of the environment. In this regard, FirstBank's CR&S (corporate responsibility and sustainability) framework is hinged on three strategic pillars, namely: Education, Health & Welfare; Diversity & Inclusion, and Responsible Lending, Procurement & Climate Initiatives.

"Each pillar is made active through the implementation of well-coordinated programmes and initiatives that enable the bank to fulfil its sustainability agenda and priorities. These initiatives include SPARK, an acronym for Start Performing Acts of Random Kindness, which is a values-based initiative designed to continuously reignite the bank's cherished moral values of compassion, civility and charity. During the 2022 SPARK Amplification and CR&S Week, the bank implemented over 23 projects across eight countries and impacting over 54,000 people and 80 charity organisations. Since its inception, the SPARK initiative has reached over 50 million people."

Then there is the FutureFirst programme, FirstBank's vehicle for promoting the triple benefits of financial literacy, career counselling and entrepreneurship among the younger generation. "In partnership with JAN (Junior Achievement Nigeria), FutureFirst is a unique programme that equips high school students with the necessary financial knowledge and skills to enable them to make better money choices and put them on the right track towards financial wellbeing," Dr Adeduntan revealed. "In 2022, over 260,000 students benefitted from the bank's financial literacy and entrepreneurship engagements.

COVER STORY

"Additionally, over the last eight years, FirstBank has been a proud sponsor of JAN's flagship National Company of the Year Programme, through which senior secondary school students are taught about the rudiments of starting and running a business, as well as product development and marketing.

This programme provides critical hands-on entrepreneurial experiences for youth, preparing them to build sustainable businesses. FirstBank also sponsors the winners of the NCOY programme to the annual African Company of the Year Competition."

Finally, through its partnership with the NCF (Nigeria Conservation Foundation), FirstBank actively contributes to the protection of biodiversity and the reduction of greenhouse gas emissions. "The bank's sponsorship of the annual activities of the NCF, aimed at wildlife preservation and climate change control, helps the Foundation achieve its overarching objectives. In addition, over 30 schools across Nigeria have been reached by our climate change and environmental sustainability advocacy."

The bank's CR&S approach is well aligned with both local and international best practices, as advised by the NSBPs (Nigerian Sustainable Banking Principles), the IFC PSs (International Finance Corporation Performance Standards) and the EPs (Equator Principles). "Our chosen approach enables the bank to contribute directly to at least seven out of the seventeen United Nations SDGs (Sustainable Development Goals)," Dr Adeduntan said. "In implementing the CR&S framework, the bank is guided by three broad considerations, namely citizenship, stakeholder management and

impact management. These guidelines ensure the bank remains a responsible corporate (and global) citizen, balances the objectives of all our stakeholders as it conducts its business, and minimises the adverse effects of its activities on the environment for the common good.

"The bank also contributes to sustainable economic growth and development by constantly seeking to provide innovative products and services that empower its customers to achieve their financial and other lifestyle goals. In addition, the bank has fully embedded an ESGMS (Environmental, Social and Governance Risk Management System) into all credit decisioning processes, as well as adopting sustainability reporting to measure its progress on the sustainability journey.

"Furthermore, the bank is committed to decarbonising its operations, including those of its value chain, in a bid to accelerate its transition to net-zero carbon emission status. This is being done in line with the standards of the PCAF (Partnership for Carbon Accounting Financials) and other international agencies, such as BII (British International Investment) and Proparco."

He explained that FirstBank has a clear governance structure around sustainability, culminating in the creation of the bank's Corporate Responsibility and Sustainability Committee. "The Committee, chaired by our Executive Director and Chief Risk Officer, ensures that

matters relating to sustainability are given the highest visibility within the FirstBank Group while also entrenching the right 'tone at the top.' The bank is firm in its belief that sustainability creates a clear pathway to creating long-term value for all stakeholders and remains committed to this journey."

Dr Adeduntan moved on to discuss FirstBank's 'You First' brand promise that, rather than just being a cliché, reflects the pivotal role that customercentricity plays in its overall strategy as an institution. “Customer-centricity is one of the bank's four espoused core values - the others being entrepreneurship, professionalism and innovation - that guide and shape the behaviours of every FirstBanker.

"Given this context, we are constantly exploring opportunities to simplify our processes and make the customer experience a lot more wholesome. To do this, the bank leverages cuttingedge technologies to automate key processes in a bid to significantly reduce both the transaction processing time and the customers' wait time.

To demonstrate our customercentric focus, the bank was the first to introduce the instant ATM card issuance service into the Nigerian market, which made it possible for customers to pick up their debit cards within minutes at any branch of the bank. FirstBank has taken this service a notch higher with the introduction of the self-service kiosks.

Issue 55 | 27

COVER STORY

"Also, to ensure that the bank is in sync with the rapidly changing customer preferences in our dynamic industry, we have established a Digital Innovation Lab to curate forwardlooking and innovative ideas that meet the needs of every customer segment.

FirstBank also leverages insights from data analytics to detect and anticipate changing customer patterns to enable the bank to tailor its products and offerings to specific customer segments' needs."

As opposed to a 'one-size-fits-all' approach in dealing with its customers, the bank's six strategic business areas - retail, commercial, corporate, public sector, global private banking and wealth management, and international banking - are supported by wellresourced product groups that ensure the right product-customer fit for each of the bank's service offerings by utilising unique insights from that customer segment.

In the corporate banking sector, particularly in terms of financial services, project finance and foreign exchange, FirstBank is proactive in maintaining its competitive edge.

"The goal for our corporate banking business remains to be a 'trusted advisor' to our clients, and we are guided by this objective in our business and investment decisions for this customer segment," Dr Adeduntan said. Clearly this approach has paid off, considering that FirstBank has again emerged as the Best Corporate Bank - Western Africa at the 2023 Global Banking & Finance Awards.

28 | Issue 55

"As a bank, we maintain our competitive edge in the corporate banking space in various ways. First, we ensure our people have the right skill set and technical competence to support the aspirations of our corporate clients.

This results in a deep understanding of the clients' businesses and their specific growth journeys.

"With this understanding, we can leverage our extensive industry knowledge to provide bespoke financial services that help our corporate clients achieve their goals," he continued.

"Similarly, the bank's robust balance sheet means that it can better support the financing requirements of these clients using innovative financing vehicles and products.

"At FirstBank, we are able to help our clients navigate the current challenging operating environment with sophisticated treasury (FX) products and solutions that improve our clients' access to foreign exchange while simultaneously assisting them in managing their exchange rate risks.

The bank also leverages its technology and digital capabilities to deliver an unrivalled customer experience to its corporate customers."

When it comes to the ever-increasing significance of technology in modern banking, FirstBank is leveraging digital transformation to enhance payment and collection platforms for its corporate banking clients, as Dr Adeduntan explained. "In line with our deep understanding of the corporate banking space and the role an effective cash management function

plays in the overall success of these big clients, FirstBank has developed a segment-specific platform called FirstDirect that assists our corporate clients to improve overall efficiency in liquidity management through a highly secure and integrated platform.

"FirstDirect is a robust integrated platform that offers corporate clients several features such as payments, collections, supply chain finance, receivables finance, host-to-host, mobility, trade, etc. through a single interface. This platform enables our clients to have secured, end-to-end automation of critical processes such as vendor and salary payments, liquidity management, collection of sales proceeds, trade transactions processing and other finance and treasury activities."

He also discussed the easy integration of FirstDirect into the corporate client's existing ERP (enterprise resource planning) application. "This eliminates interruptions to established internal processes while improving oversight and the quality of outcomes of the finance function.

"FirstBank remains committed to its corporate banking clients and will continue to make necessary investments, including in technological support, to strengthen the bank's value proposition to the corporate segment."

As a leading financial institution in Nigeria, FirstBank takes steps to support financial inclusion efforts and promote access to banking services for underserved populations in the region. "As Nigeria's oldest and most successful banking brand, FirstBank has always partnered with the government and regulators in driving and achieving their

COVER STORY

fiscal and monetary policy objectives.

In this regard, FirstBank has helped scale financial inclusion in Nigeria in at least three distinct ways. First, with about 800 business locations, FirstBank has one of the largest retail footprints in the country and is the most known bank brand across Nigeria. This is especially true in rural areas where most other competitors are conspicuously absent.

"Second, with over 218,000 agents, FirstBank's FirstMonie Agent Banking Network is the largest bank-led agent network in Africa. In addition, at least 63% of these agents are in rural or semi-rural locations where they play very crucial roles in bringing financial access and services closer to the underserved communities. The FirstMonie network also provides both direct and indirect employment to rural dwellers, thereby contributing significantly to raising their economic status.

"Additionally, the bank has leveraged the increase in mobile telephone penetration in Nigeria to offer seamless digital financial services to rural dwellers through our USSD (*894#) offerings. Currently, almost 15 million subscribers are enrolled on the bank's USSD platform."

The banking industry in West Africa has faced both opportunities and challenges in recent years. As the premier financial institution in West Africa, FirstBank has been at the forefront of leading change in the sub-region and played a pivotal role in the evolution of its financial and payments landscape. Wanda asked for Dr Adeduntan's perspective on some of the key trends shaping the industry's future, and how FirstBank is positioning itself to navigate these

challenges. "In my opinion, the biggest trend that is shaping the future of the banking industry is digital transformation," he replied. "The spate of technological advancements is leading to rapid changes in customers' tastes and expectations.

Technological advancements have also made it possible for non-bank players, such as telcos, fintechs, etc., to compete with traditional banks, especially in the payments space.

At FirstBank, we have adopted a perspective that sees technology not just as an enabler but as a business itself. Over the last few years, we have made significant investments to repurpose our technological architecture and make it future-proof to support our business aspirations."

The other factor he sees shaping the future of the industry is regulation.

Given the lack of uniformity in regulatory standards, and indeed in national payments infrastructure across the West African sub-region, it can be challenging to scale business operations at the same pace. "We may end up with a future where some markets will be much more advanced than others within the same subregion," he predicted. "As a socially responsible organisation, we have adjusted our pace in line with that of regulators in our markets, while at the same time maintaining a partnership posture that enables us to facilitate and contribute to the direction of regulatory developments by leveraging our rich expertise.

"As the continent gears up for the operationalisation of the AfCFTA (African Continental Free Trade Agreement), there is bound to be a surge in formal intra-African trade volumes, which will necessitate more effective payments and trade support services. At FirstBank, we are rapidly

acquiring the right capabilities to take full advantage of the AfCFTA and developing innovative payment products, such as First Global Transfer, to serve the broader needs of transacting African parties."

Dr Adeduntan concluded by highlighting the bank's aspirations and goals for the coming years. "We are currently executing our 2020–2024 strategic plan, which will elapse by the end of next year. Thereafter, we will go into the next strategic horizon for our franchise for 2025–2029. While I will not want to pre-empt that effort, given the significant mileage we have made within the current strategic cycle, the next five years will see us consolidating on the achievements of the last five and doubling down on our growth journey.

"In line with our vision to be 'Africa's Bank of First Choice,' we are keen on extending our footprints both on the continent and in Europe to better serve Africans and African businesses and thereby empower them to achieve their dreams. Already, we are repositioning our global private banking and wealth management business to serve a broader African HNI (high-net-worth individual) clientele, offering them sophisticated wealth management products.

"As an institution that has existed for almost 130 years, we are adept at reinventing ourselves to remain relevant and serve every generation, no matter what its needs are. I am confident that the next five years will be no exception."

Issue 55 | 29

FINANCE

Thailand and Vietnam spotlight tech and infrastructure expansion in pursuit of high growth Commerzbank’s Franz Murr, Regional Head of Asia-Pacific, Ha Bach, Chief Representative, Vietnam, and Thira Nuntametha, Senior Representative, Thailand, explain how two of ASEAN’s fastest growing economies are attracting foreign investors and building out crucial digital, transportation and energy infrastructure.

Thailand and Vietnam are undergoing an economic transformation. In a strategic shift away from a long-standing reliance on labour intensive industries, these rising stars of ASEAN are both are steering their economies towards a more skills-based, sustainability focused model to drive opportunities for growth. The government directive Thailand 4.0, for example, aims to achieve this through infrastructure and technology, with Thailand’s Eastern Economic Corridor (EEC) being positioned as the country’s hub for this transformation.

Meanwhile, Vietnam is similarly reorienting towards a technology centred strategy, and is fast emerging as a manufacturing hub for a host of major global brands.

30 | Issue 55

FDI: the state of play Fundamental to achieving these economic ambitions is enhanced infrastructure, and projects are underway that are opening doors to new opportunities for both countries.

During the last five to ten years, Vietnam has been winning out when it comes to foreign direct investment (FDI) from Japan, Korea, China or the US. Sitting at the crossroads of other major ASEAN countries and bordering China, Vietnam’s long coastline makes it a natural shipping hub. Moreover, with numerous trade agreements with international partners and its ASEAN neighbours, Vietnam ranks just behind Indonesia and Singapore as one of the region’s most connected nations.

Most recently, planned infrastructure developments and constructions projects include metro lines and potential new international airports.

FINANCE

Certainly, Thailand views Vietnam as its main competitor in attracting FDI. But opportunities for investment are growing.

For instance, Thailand is currently constructing a high-speed rail link that will better connect ports and industrial areas with the rest of the country, in line with the ambitions of the Thailand 4.0 project. This will mean it can better compete with the likes of Vietnam, Indonesia and Malaysia when it comes to attracting international trading partners and FDI. Beyond infrastructure, opportunities in Thailand’s agricultural technology have secured investment from China and the US, and the Thai government is investing in key industries such as electronics and automotive manufacturing. But while the labour force is skilled in these areas, labour costs have risen significantly.

Furthermore, political instability has made foreign investors wary in the past.

In Vietnam, sectors attracting FDI include pharmaceuticals, fast-moving consumer goods (FMCG) and the automotive industry. For instance, Unilever and Nestlé have operations in Vietnam, as does Mercedes, and the Danish company LEGO has recently set up a US$1 billion factory. Vietnam is also the main production centre for technology brands including LG and Intel, while Samsung has already invested nearly US$18 billion into the country. As a result, electronics now account for 20 percent of Vietnam’s exports.

Further boosting both Vietnam’s profiles for FDI is its potential as a manufacturing location for companies adopting a “China plus one” diversification strategy.

This trend is seeing global businesses increasingly seeking to establish additional or alternative production hubs to those they have in China, to help strengthen their supply chains and address challenges such as China’s rising labour costs. Canon, for instance, has tripled the size of its factory near Hanoi and, in light of recent tensions with China, major suppliers for US brands like Apple are also choosing to set up in Vietnam.

Issue 55 | 31

FINANCE

Energy transition attracting FDI

Technology to reshape the banking landscape

Renewable energy technology and the energy transition are also making Thailand and Vietnam interesting prospects for foreign investors. A number of European manufacturers, for example, are exploring opportunities to invest significantly in Vietnam’s offshore wind market.

In these dynamic, burgeoning markets, local banks are investing heavily in cutting-edge digitalisation initiatives to optimise their processes and solutions in order to support evolving client needs. One of Thailand’s top banks, for instance, has announced a long-term strategic plan to invest US$3billion in innovation, which will see it move away from being a conventional bank towards becoming a type of tech company. A number of other large local banks have also launched their own innovation subsidiaries and are acquiring fintech start-ups to support the expanding needs .

The last few years have seen Vietnam make tremendous progress on its drive to become net zero by 2050, and it is at the forefront of the clean energy transition in Southeast Asia. Solar power, which was added to the grid just four years ago, now accounts for 11 percent of Vietnam’s energy production. Both Siemens and wind-turbine company Vestas have a presence in the country.

The government’s Power Development Plan VIII (PDP8) has also now been approved, which aims to expand Vietnam’s renewable energy generation, including a focus on the development of LNG facilities.

Meanwhile, Thailand is perhaps the region’s frontrunner when it comes to renewables. The country’s national sustainability strategy, called the biocircular-green (BCG) economy, includes incentives such as tax breaks to help entice investment into renewable energy projects. One such project is the record-breaking construction of the largest stand-alone rooftop solar panel in the world by Japan’s Kansai Electric Power Co, which is currently underway in the EEC. Furthermore, Thailand is a big investor in renewable energy on the international stage, participating in projects in neighbouring countries such as Laos, Myanmar and Vietnam, as well as further afield like Japan, Australia and even Europe.

The shift to renewables will of course not happen overnight. The necessary capital and appetite for change exist, but the challenge for Vietnam, Thailand and other ASEAN countries is infrastructure. For the energy sector to progress, it is imperative infrastructure is developed in parallel. This costly endeavour will be a joint effort between governments, banks, power companies and foreign investors.

32 | Issue 55

In Vietnam, the pandemic has been a key trigger for Vietnamese banks to go digital. Mobile banking services in particular have gained traction, reflecting the high smartphone penetration in the country. As such, local banks are collaborating closely with fintechs to facilitate payments and peer-to-peer lending. In fact, Vietnamese fintech has fast become an attractive market for foreign investment, drawing in close to US$400 million in funding in 2021.

In tandem, the digitalisation strides that are being made are enabling the generation and interpretation of masses of valuable industry data – and incentivising local banks to expand into new services and offerings.

For instance, Robinhood is a client-centric, Thai food delivery platform that was launched by Siam Commercial Bank (SCB) to provide an enhanced experience for an emerging societal trend. In turn, by analysing data from the platform, SCB can identify new opportunities to provide support for the independent businesses that are using the marketplace, such as restaurants and delivery companies. The richer insights into their business activities, such as revenue flows and risks, means the bank has greater transparency upon which to determine and offer funding support. This somewhat unconventional bank service is one of several initiatives that are helping to plug the perpetual finance gap that continues to afflict smaller businesses in the region.

Thailand and Vietnam are dynamic markets that are increasing their presence on the global economic stage. To be able to realise their full potential however, continued investment into physical and digital infrastructure upgrades are key. With digital initiatives improving access to banking services and closing the finance gap, and innovative incentives established to further attract investors, both countries are investing effectively for their economic futures.

And with infrastructure projects luring foreign investment during development, and, once complete, helping to establish manufacturing industries for future FDI, with the right support there are opportunities to be grasped by banks and businesses across the globe.

FINANCE

Thira Nuntametha, Senior Representative, Thailand

Ha Bach, Chief Representative, Vietnam

Franz Murr, Regional Head, Asia-Pacific

Issue 55 | 33

Call For Entries INVITING BANKS

INVITING BUSINESS

INVITING

SHOWCASE YOUR ACHIEVEMENTS

FINANCIAL ORGANIZATIONS

LEADERS

Submit your nomination today to awards@gbafmag.com OR Submit Online at GlobalBankingAndFinance.com

2023

BANKING

Open banking: Shaping the future of FinTech and Finance “Open banking is not intended to replace traditional banking. Instead, it can be a powerful ally for legacy institutions to modernise and stay relevant in an everchanging financial market,” writes Donal McGuinness, CEO of Prommt.

Open banking has come a long way from being a mere buzzword, especially in the UK, where it has made impressive strides as an early leader in adoption.

The consistent approach to open banking payments in the UK, led by the Open Banking Implementation Entity (OBIE) and key clients such as HMRC and banks, has driven significant adoption. As of May 2023, 96.4 million payments have been processed with an impressive 99% success rate, and the open banking user base has grown by 7 million.

Open banking has disrupted traditional banking by ending the monopoly on consumer financial data. The revised Payment Services Directive (PSD2) provided the regulatory framework for this, allowing fintech companies to gain access to this crucial data with customers’ explicit consent, and challenge incumbents with innovative technology.

The third Payment Services Directive (PSD3) will further amplify this, with a focus on connection quality and consumer adoption. Banks will be obligated to build permission dashboards to allow customers to see which third-party services are connected to their payment accounts.

However, open banking is not intended to replace traditional banking. Instead, it can be a powerful ally for legacy institutions to modernise and stay relevant in an ever-changing financial market. By not only adopting open banking through API-led connectivity, but by also seriously investing in it, banks can transform themselves into platforms that offer banking as a service and take advantage of being part of the new banking ecosystem.

36 | Issue 55

Innovation in payment technology is driving open banking’s growth. Many paytech companies offer a range of payment orchestration controls to their clients. These tools empower merchants to effortlessly toggle between open banking, card, and other payment methods depending on variables such as geographic location, customer, purchase type, and value of the transaction.

Payment orchestration enhances the adoption of open banking, enabling retailers to save on high card processing fees, eliminate chargebacks, and double their payment volumes.

According to Juniper Research, the global value of open banking-powered payments will surpass $330 billion USD by 2027, up from $57 billion USD in 2023 (representing a growth of 482 percent).

By 2024, Western Europe is projected to account for 56 percent of global API calls. Furthermore, emerging use cases like bill payments are anticipated to contribute over $59 billion USD in global transaction value by 2027, expanding open banking’s potential.

This new era of financial data sharing enables small companies to compete with larger players. Favourable market dynamics are driving disruption in the remote payments market, with mobile devices, mobile banking, and regulatory support playing a major role.

The digital space is now replete with the potential for data-driven decisionmaking, improved risk assessments, seamless payments, customer satisfaction, and retention.

Impact on Businesses Easy and Fast Payments: With open banking technology, businesses can quickly, securely, and efficiently accept remote payments. This method ensures direct bank-to-bank transactions, skipping intermediaries for a smoother payment process.

Savings from Lower Fees: Open banking reduces transaction costs by reducing reliance on card-based systems.

Significantly reduced card processing fees help businesses protect their profits and offer competitive pricing.

Fraud Prevention: The adoption of open banking APIs is predicted to reduce fraud by up to 61 percent by 2024. Open banking payments use advanced encryption and real-time authentication to protect sensitive data from cyber-attacks.

Efficiency in Operations: Open banking enables businesses to automate and simplify tasks such as accounting and compliance, resulting in more efficient and streamlined operations. It offers greater protection from card fraud and chargebacks, while reducing payment operation costs.

Happy Customers: Customers can easily pay using their mobile devices and trusted online banking apps for authentication, leading to increased satisfaction and higher conversion rates.

Impact on Customers Empowering Choices through Open Banking: Open banking enables customers to selectively share their financial data with third-party providers, granting them access to a wider range of products and services. The data sharing is completely controlled by the client, who determines the extent of access to their bank information. This safeguard ensures that third-party providers only have access to relevant information.

Fortifying against Fraud: By giving customers greater control over their data, open banking provides a strong defense against fraud. Payments made through open banking use PSD2/open banking protocols and are protected by the same industry-standard banking security measures.

BANKING

Donal McGuinness CEO Prommt

Impact on Banks Data-Driven Insights: Open banking enables banks to access more customer data with consent, and gain insight into customer behaviours and financial needs.

Banks can use these insights to personalise their offerings, refine marketing strategies, and improve customer engagement.

Enhanced Customer Experience: Open banking technology can be seamlessly integrated into various financial services, apps and data sources. Customers can access a consolidated view of their finances, make informed decisions, and transact effortlessly.

New Revenue Streams: By offering value-added services beyond traditional banking, through partnerships and collaborations with fintech companies and other thirdparty providers, banks can tap into new revenue streams.

Regulatory Compliance and Security: Open banking technology ensures that banks comply with evolving regulatory requirements. It fosters data security by implementing robust authentication mechanisms and secure data-sharing protocols, mitigating the risks associated with data breaches and fraud.

Open Banking, Open Finance and Beyond In the future, Open Banking will evolve into Open Finance, allowing data-sharing beyond transactional bank account data. Other types of financial information, such as pensions, insurances, mortgages, stock trading and other wealth management accounts, will become accessible to authorised third parties, creating a more interconnected financial ecosystem.

This will improve user experience through tailor-made products and services, allow for wiser financial decisions and better financial management. It will improve efficiency and productivity for Corporates & SMEs and increase competition among financial services providers, spurring innovation, developing new services, and increasing demand.

Issue 55 | 37

BANKING

Don’t let economic uncertainty cloud your digital roadmap: How banks can chart a clear path for innovation Rising interest rates, persistent inflation, and regional bank failures are just a handful of the challenges banks face today. As a result, many financial institutions are tightening IT budgets and focusing on short-term initiatives that deliver quick results.

But with eight in 10 Americans preferring to bank online or via mobile apps, banks can’t afford to scale back their digital transformation goals. New customers are keen to bank at institutions that can meet their expectations for digital-first experiences — and existing customers are more than willing to switch if their current banks can’t keep up.

Banks must develop a clear and cohesive strategy to differentiate their digital products and enhance customer experience and innovation. In today’s digital banking landscape, it’s even more crucial that banks find a way to set themselves apart from the pack.

How short-term thinking jeopardizes longterm growth Peter-Jan Van De Venn Vice President, Global Digital Banking, Mobiquity

In the face of economic headwinds — or just as challenging, economic uncertainty — it’s tempting to halt projects that don’t immediately benefit the bottom line. Too often, digital initiatives end up on the chopping block.

But this short-sighted approach is like standing still in a race. You may not be losing, but you’re not gaining any ground either. Meanwhile, your competitors are running laps around you. Banks indeed need to be extra diligent about spending, but cutting costs shouldn’t come at the expense of serving customers and providing engaging, personalized digital touchpoints.

Customers today are more likely to switch banks than they were in the past and digital experiences play a crucial role in their decisions. In fact, four in 10 customers say they would consider switching banks based on digital features.

38 | Issue 55

Instead of scaling back digital investments entirely, banks should focus on allocating resources more effectively.

The banks that will emerge stronger from the current market are those that strike the right balance between shortterm gains and long-term growth.

Do’s and don’ts of digital differentiation Competition in the digital era is fierce.

Whether it’s neobanking alternatives such as Chime, peer-to-peer lending platforms, or digital wallets like Venmo, customers have an abundance of options when it comes to digital banking, making it even more difficult for banks to stand out from the crowd.

In addition to competing with other financial institutions, banks are also being compared to tech giants like Google and Facebook. Customers now expect the same level of service and convenience from their banks as they do from technology companies.

But with a clear digital roadmap, banks can create unique and compelling experiences that attract new customers and retain current customers amid economic turmoil.

Here are a few do’s and don’ts when it comes to adapting your current digital transformation strategy in the current economic environment: Don’t reinvent the wheel Mobiquity research shows that nearly 80% of digital banking features are virtually the same. Rather than developing standard features and functionalities, you can more efficiently allocate resources by focusing on key areas of differentiation.

BANKING

Must-have features — such as online and mobile account management, transaction overviews, and card management — are still important. But there’s no reason for banks to build these features in-house when they can leverage existing assets, out-of-the-box solutions, and third-party vendors. Doing so will free up budget and capacity to focus on fine-tuning products and features that actually help you stand out.

Do focus on your unique brand promise One size does not fit all in the banking world.

What works for one institution may not necessarily work for another. That’s why it’s vital to understand your brand promise — and build digital offerings that align with your unique value proposition.

For example, one of our neobank customers has successfully targeted tech-savvy millennials with innovative offerings, including an augmented reality feature that allows users to project their future bank cards using their iPhones. This unique customization option has helped them carve a distinct identity as a leading digital innovator.

Don’t innovate where you can’t differentiate Innovation shouldn’t be pursued for the sake of innovation alone. Every digital innovation should align with a business goal, contribute to the organization’s overall vision, and further differentiate your brand from competitors.

That’s why it’s crucial to set clearly defined goals and KPIs, tracking progress and challenges along the way to success.

By considering your organization’s business goals and objectives — and the technology necessary to support that endeavor — you can create a digital strategy that strikes the right balance between innovation, viability, and profitability.

Do craft experiences with customers in mind It goes without saying that your customers should be at the center of your customer experiences. Then again, some banks forget or forgo this vital rule. Every successful digital initiative starts by understanding your customers, their needs, and how you can meet them.

Most customers blend digital banking with in-person experiences. Whether customers are banking on your app, online, over the phone, or at a branch — or combining any number of these touchpoints — it’s crucial to provide seamless, intuitive, and personalized customer experiences across channels. For example, you can offer options for customers to initiate the account opening process online, upload necessary documents, and then schedule an appointment at a branch to finalize the process.

Maximizing ROI on innovation You can’t predict the future — or the economy’s trajectory — but you can set the stage for long-term growth and resilience by maximizing the ROI on digital initiatives.

Smart, strategic digital roadmaps focus on areas where differentiation makes a difference and provides greater value for your customers and your organization.

By identifying and enhancing points of differentiation features, you can create a distinct and compelling digital experience that resonate with customers, strengthens your brand, and captures new business — no matter what’s around the corner.

Issue 55 | 39

FINANCE

Dangerous dependency: How a new approach can remove the damaging crutch in the banking and finance industry created by widening IT skill gap In today’s hyper-connected world, the banking and finance industry has undergone a profound digital transformation, elevating technology to the forefront of operations. As the sector becomes increasingly reliant on technology, the demand for skilled IT professionals has surged exponentially. Unfortunately, the widening IT skills gap has created a dangerous crutch that financial institutions depend on, leaving them susceptible to security and operational risks—not only to the organizations themselves, but to their customers and employees.

It is absolutely imperative for banking and financial leaders and decision makers to be fully compliant in not only exploring the criticality of these issues with a sense of high urgency, but also to be fully committed to long-term efforts to continuously find and implement new approaches and solutions.

The Dangers of Relying on Insufficient IT Skills One of the most significant risks faced by financial institutions is the growing number of sophisticated cyber threats.

A stark example reported in TechCrunch, that not only shook the banking industry, but over 200 organizations and up to 17.5 million individuals, was the mass hack of the file transfer tool, MOVEit as of July 2023. As the implications of the attack continue to emerge, further breaches have been confirmed at Shell, First Merchants Bank, City National Bank, and a number of international targets.

Following the discovery of a flaw, MOVEit promptly patched the vulnerability; however, cybercriminals had already infiltrated the system, gaining access

40 | Issue 55

to vast amounts of sensitive data. The responsibility for these breaches was claimed by Clop, a ransomware group with links to Russia, and they issued threats to publish the stolen information on the dark web.

The exploitation of vulnerabilities in the bank’s outdated IT infrastructure was a direct result of the insufficient number of skilled professionals capable of identifying and addressing potential security loopholes. As a consequence, the breach led to the compromise of sensitive customer data, resulting in significant financial losses and damage to these organizations’ reputations and regulatory compliance.

Furthermore, the IT skills gap also hampers innovation and modernization within the financial sector. The harsh reality is that the banking industry has been slow to adopt cloud-based computing due to a shortage of qualified cloud engineers. According to the New York Times, currently, major banks run their own data centers, which house computer servers that process vast troves of customer account data, payment records, and trading logs. Running the machines is costly because they require a lot of electricity and also need to be kept in air-conditioned rooms.

They go on to say that executives have been hesitant because banks are tightly regulated by governments, and any sudden changes involving consumer deposits or privacy aren’t possible.

They’re also concerned that computing over the internet will open the door to cyberattacks. And some firms are held back by old computer systems that are difficult to revamp or retire, making the transition even more tricky.

Examples and Key Takeaways Security Breach Fallouts: There are thousands of examples of security breaches, and every investigation where a financial institution has suffered from massive cyber attacks has always shown that the attacks were facilitated by the lack of a skilled cybersecurity team capable of deploying advanced threat detection and prevention measures.

•

Key Takeaway: There should be an immediate need to invest in cybersecurity talent and robust training programs to prevent severe repercussions, such as a substantial decline in customer confidence and an expensive legal battle to rectify the damages.

Cloud Transformation Delay: Just last year, Capital One outlined their shift from legacy data centers to the cloud, and among the many benefits they discuss are the dramatic improvements in system availability and disaster recovery, including cutting both the number of transaction errors and critical incident resolution time in half. In the absence of cloud-savvy IT professionals, this process could have led to cost overruns, impacted brand perception, and loss of customers to more technologically agile competitors.

•

Key Takeaway: Investing in and building a skilled cloud team and partnering with experienced cloud solution providers expedites cloud adoption and ensures seamless customer experiences.

FINANCE

Julian Hamood Data Analytics Roadblocks: The reality is that data analytics is transforming the finance industry, and it’s important for institutions to recognize the potential to gain actionable insights and make informed decisions. However, a shortage of skilled data scientists will undoubtedly hinder the implementation of a comprehensive analytics strategy. Failure to leverage and manage vast data resources effectively can lead to missing out on valuable growth opportunities and operational efficiencies.

•

Key Takeaway: Cultivating a data-driven culture and investing in data analytics talent empowers financial institutions to unlock the full potential of their data assets.

A New Approach: Bridging the IT Skills Gap The following strategies provide a blueprint for financial decision makers to address the widening IT skills gap and eliminate the detrimental dependency: 1.

2.

3.

4.

Talent Development Partnerships: Collaborate with leading educational institutions and technical training providers to design specialized curricula tailored to the financial industry’s evolving needs. This partnership ensures a steady pipeline of skilled graduates and professionals.

Focused Upskilling Programs: Invest in upskilling programs for existing IT personnel, enabling them to acquire the latest competencies required in the digital age. Offering continuous learning opportunities boosts employee loyalty and enhances the overall talent pool.

Managed Services for Expertise Augmentation: Leverage managed IT services and cloud solutions that provide access to a pool of specialized professionals.

This approach bolsters in-house capabilities and accelerates technological advancements.

Cybersecurity Certifications and Compliance: Encourage IT professionals to obtain relevant certifications in cybersecurity to bolster the organization’s defense against cyber threats. Compliance with industry standards ensures a robust security framework.

It’s clear that the widening IT skills gap poses grave risks to the banking and finance industry, affecting security, innovation, and customer satisfaction.

Decision-makers in the financial sector must recognize the urgency of addressing this issue and embrace a new approach to bridge the gap.

By investing in talent development, upskilling, and strategic partnerships, financial institutions can fortify their technological capabilities, reduce risks, and remain competitive in a rapidly evolving landscape. Eliminating the dangerous dependency on the IT skills gap will secure the future of the industry and enable it to thrive amidst the challenges and opportunities of the digital era.

President Trusted Tech Team Julian Hamood is the President of Trusted Tech Team (TTT), the leading Microsoft Cloud solutions and support provider. As a recognized expert in IT solutions, licensing consultations, and customer relations with more than 16 years of experience, Hamood established TTT’s position as a Microsoft CSP direct-bill partner, carrying multiple Solutions Partner Designations, and the now-legacy Microsoft Gold Partner competency while leading the company’s meteoric growth as it surpassed its revenue goal by by doubling revenue every year for the last three years. In addition to his business achievements, Hamood is an active volunteer and primary sponsor for Project Youth OC, a non-profit organization that uplifts underprivileged, underserved and/ or at-risk youth in local communities through counseling, mentoring, and professional development services.

He also helps fund United Champions for Change, a non-profit organization that aims to raise awareness of educational system inequities and help underprivileged youth gain better access to education, while continuing to support and donate to the Wounded Warrior Project, a non-profit organization that provides programs and services to wounded veterans.

Hamood earned his Bachelor’s degree in Business Management, Marketing, & Related Support Services from California State University, Fullerton.

Issue 55 | 41

BUSINESS

How marketplaces provide technology ecosystems for international sales strategies

For retailers wishing to bolster their sales intake and grow their business, marketing products overseas is a highly effective way of doing so. Expanding their reach beyond their borders can be a powerful protection against decreased demand at home.

Plus, a new study from Juniper Research forecasts that 33 percent of ecommerce spend will be crossborder by 2028. As ecommerce growth shifts to developing markets, the cross-border ecommerce market is predicted to grow by 107 percent over the next five years, from $1.6 trillion in 2023 to over $3.3 trillion in 2028.

As more and more consumers shift to online shopping, it is increasingly important for retailers to implement a well-thought-out, international ecommerce strategy to meet the needs of the modern-day customer and tap into both local and growing global demand.

There are a number of hurdles that retailers must clear to sell their products internationally, and these are often expensive and complex to manage. However, cross-border marketplaces offer a number of tools that substantially reduce these difficulties.

42 | Issue 55

Complexities of selling internationally For retailers who wish to sell overseas from their own website, they firstly need to adjust the languages and currencies of each product page to fit each market to which a retailer wishes to sell. This includes deciding whether to continually update prices when exchange rates shift.

When it comes to the language adjustments, these must be uniform across the retailer’s website, from the product categories, onsite search engines, the site-wide banners and each individual product page. Once this task is complete, it needs to be repeated whenever that seller wishes to list a new product on their site – meaning continuous updates. This also applies to advertising campaigns, which must be localised for each region and must direct the customer to the respective regional website.

BUSINESS

Even once the website’s content is ready in each region, the checkout process needs to be robust enough to manage intercontinental traffic; a crucial undertaking that is no mean feat.

both complexity and cost. In turn, retailers benefit from the perks of a sophisticated cross-border selling strategy and what would otherwise be a series of expensive digital transformation projects.

Provided, there are numerous tools and third parties which are able to support sellers with these individual processes.

However, given the number of tasks that must be completed, this will result in significant time and cost investment. For an exercise that has no guarantee of being successful, it is a risky one that could prove ruinous for smaller retailers.

In addition, many of these platforms operate on a policy where retailers only collect fees when their products are sold, meaning they can retail in these new markets, and in front of many more prospective customers, with much less risk involved.

How marketplaces simplify crossborder selling This is where utilising the tools that marketplaces have to offer becomes beneficial. When listing their products on these platforms, sellers are able to take advantage of a plethora of tools all in one place, which simplify the individual components of cross-border selling.

As well as supporting with all of the above adjustments and updates required for selling in different markets overseas, cross-border marketplaces can also support their sellers with the respective taxes for each country or area – from VAT to shipping – which is often a timeconsuming task.

Some specialise in orchestrating regional advertising on behalf of their retailers’ products, using their algorithms to constantly scan the universe of shoppers for opportunities to match global demand to supply.

Having access to all this support in one integrated platform means that all a retailer needs to do is arrange for the package to be delivered to the customer.

By simplifying these tasks, sellers can more easily jump through the necessary hoops of cross-border selling and reduce

Tony Preedy Managing Director Fruugo

This in turn allows sellers to put a greater focus on other aspects of the business, such as making the most of their inventory without compromising on costs. For example, instead of applying reductions to clear their inventory in their domestic market, sellers can pivot to other markets where there is still demand and sell at full price.

More prospective buyers, increased sales As with joining any new service or platform, there will be some tasks that need completing to get up and running on marketplaces, but this investment of time is a one-off and one that will lead to greater rewards than going it alone. Once complete, they can sell their products across international markets and boost their growth while the platform does the hard work.

With the right tools in place, sellers can capitalise on overseas demand, which can lead to much greater profitability than focusing solely on customers at home.

Furthermore, if a retailer were to diversify their sales channels by listing products across multiple platforms, this will lead to an even greater reach, with even more eyeballs on product, and therefore increased sales and revenue.

Issue 55 | 43

BUSINESS

Q&A with WorldFirst:

Supporting SMEs with international trade 1. What is the current operating landscape for SMEs in UK and Europe and why should they consider trading internationally to seek stronger growth?

Sumit Arora Managing Director, UK and EEA, WorldFirst

44 | Issue 55

It’s no secret that SMEs across Europe have felt the impact of challenging market conditions more than others, with the costof-living crisis and rising inflation rates hitting UK SMEs particularly hard in recent months. Covid debt still poses a challenge, with figures showing that 33% of UK SMEs have debt levels more than 10 times their cash balance, while Brexit continues to make trade in Europe harder. However, our everevolving digital world has opened the door to new opportunities to fuel growth, with crossborder ecommerce being one. In Europe, this market was worth €179.4 billion in 2022, and this is without capturing the opportunity further afield.

2. Tell us about some of the trends you have seen in this space over the past 12 months or so.

In light of the some of the challenges mentioned in the previous question, we’ve seen growing interest from SMEs looking to trade with new markets to mitigate challenges in their home countries. For example, research from the Federation of Small Businesses (FSB) found nearly a third (32%) of the UK’s small businesses buy their supplies from the US, closely followed

by China (30%). What’s more, the UK’s recent trade pact with 11 Asian and Pacific nations has shone a light on the growth that businesses could experience by looking to these regions. As a result, we’re seeing far more SMEs look to ways in which they can make the decision to trade cross-border a success and reap the benefits of doing so.

BUSINESS

3. What are some of the key challenges for SMEs when considering operating with new markets?

4. What specific challenges do payments in particularly pose for SMEs when trading cross-border?

5. How has WorldFirst adapted its business model to better support SMEs in this area?

One challenge is being able to do business like a local. The importance of this shouldn’t be underestimated, but understandably, an SME can’t be expected to know all of the intricacies of how to do so, like having local sort codes, account numbers and IBANs, etc. Making and receiving payments in local currencies is just one important part of this, so finding a cross-border payment partner who can offer support here is vital so that the business in question doesn’t need to worry about setting up relationships with local banks in each market. SMEs today need an inclusive one-stop platform that can meet all of their cross-border payment and working capital needs with speed and low cost.

What typically happens at the payment stage is that even when a buyer and seller is on the same platform, the payment will take around two or more days, because it will go through intermediary banks.

But the speed of payment is crucial in international trade. Delays in payment processing can lead to disruptions in the supply chain, inventory management issues and cash flow problems for businesses. It can also result in additional costs such as storage fees or penalties for late payments. However, SMEs can see this expediated – in some cases, with the payment being made in a split second – and often, at no extra cost, by working with a partner who takes a ledger-toledger (L2L) approach and not needing to go via an intermediary bank.

We have embarked on a transformative journey, transitioning from a traditional FX business to offering a comprehensive range of services dedicated to supporting SMEs in their global trade endeavours and business growth. To ensure speedy responsiveness to customer needs, we have made significant investments in upgrading our systems, enabling us to facilitate instant cross-border payments in certain cases. Additionally, we have expanded our global coverage, resulting in an unparalleled ability to connect UK and European businesses with Southeast Asia and China, presenting vast opportunities in these thriving economies. We have also continuously prioritised the enhancement of our security and compliance measures; this commitment ensures that engaging in international trade does not expose our customers to unnecessary risks.

6. What are WorldFirst’s plans to continue supporting SMEs with importing and exporting?

With our cross-border payment solutions, multi-currency accounts and foreign exchange services, we are focused on continuing to help facilitate international SME trade. Supporting exporters and importers to enhance ecommerce by enabling businesses to accept payments in various currencies and reduce transaction costs through competitive fees and rates remains one of our key priorities moving forward. Ultimately, we believe our services and partnerships have the ability to foster economic growth, and we’re on a path to doing this, all the while maintaining a strong regulatory framework to ensure payment compliance, consumer protection and financial system stability.

Issue 55 | 45

FINANCE

How AI can support the mortgage lending process The mortgage industry has undergone significant evolution over the years especially in the UK market. Driven by changes in technology, regulatory environment, and the ever-rocky economic landscape, it looks like we still have a while to go before the market settles. This makes it more important than ever for lenders to utilise resources to help save money and provide a positive customer experience for borrowers.

Utilising AI for mortgages With the advancement of technology, including cloud, large language models (LLMs), chatbots and other artificial intelligence (AI) tools, the mortgage industry has been able to digitise almost the entire lending process. From using Robotics AI to automate data entry, to using chatbots and virtual agents for regularly asked customer service queries and support, utilising these technologies allows lenders to save money and provide a positive customer experience for borrowers in the process.

Digitising the mortgage process provides the ability to reduce time spent on applications, underwrite loans, and assist with the lengthy loan verification process that can unnecessarily take up lenders’ time, meaning they can then focus on other areas of support for applicants.

Starting with the beginning of the lending process, online application portals allow borrowers to fill out forms, verify their eligibility and submit documents when applying for a mortgage. Digitising the lending process to create better flexibility to apply for a mortgage takes out some of the heavy lifting that can impact such decisions.

Underwriting loans is another significant part of the mortgage lending process, which can take weeks to complete, and directly impacts the customer experience. The factors affecting the timeline include risk assessments, a manual review process, and verification procedures. Moving towards a digital approach and implementing cloud technology can expedite the underwriting process significantly. However, lenders must always strike a balance of being thorough, leaning on both human interaction and technology to provide timely and reliable loan decisions to borrowers.

46 | Issue 55

Ethics and AI Navigating the ethical landscape of AI can be challenging, with traditional mortgage applications often requiring extensive documentation, such as bank statements and tax returns. However, technological advancements have enabled the use of digital verification tools. These tools can securely access and analyse financial data, allowing lenders to verify information quickly and accurately. This helps organisations to address key concerns such as privacy, bias, and transparency.

Taking AI to the next level in mortgages To further harness the power of data, analytics, and advanced algorithms, mortgage providers should utilise the technology coming down the pipe, to reshape traditional banking practices to better risk management, improve efficiency, and personalise services.

Technology is continually evolving and whilst we are seeing the widespread adoption and integration of machine learning and AI tools, across the automation part of mortgage lending, there is still more that can be done.

As new technology emerges and matures in the coming months and years, natural language processing, like Chat GPT, will have the ability to provide advice recommendations, deal with policy enquiries and transcribe advice given in interviews and case study write ups.

But that’s not the end of AI’s role in mortgage lending process We hope to see predictive analytics take a step forward in this new age of technology which would see pre-approved lending, personalised pricing, real time recommendations to changes in policy to temporarily improve operational efficiency by predicting pinch points before they happen, and smart allocation of cases for underwriting. With these hopes of the future, it can be said that the mortgage industry is about to undergo momentous change in terms of speed, efficiency, and productivity.

It’s important for the industry to rely on financial technology to streamline and simplify the mortgage process to make the home buying process more accessible for borrowers. The adoption of technology will not override traditional mortgage lending methods but exist alongside to improve customer experience through online applications, AI-powered chatbots, automated underwriting, and new advancements changing the way that banks and financial institutions conduct business.

Those who embrace agility and foster a culture of continuous innovation are already more prepared to address the challenges and opportunities that lie ahead for traditional banks.

FINANCE

Tom Chaplin Head of UKI Mortgage Product nCino

Issue 55 | 47

FINANCE

Private sector leader?

This is why you should serve a term in the public sector For private sector leaders, moving to the public sector is typically viewed as an opportunity to ‘give back’. Often, it’s the role they take before retirement, or after achieving their career goals in the private sector and want new challenges and experiences. Both are viable career choices and will provide a greater sense of purpose.

However, incorporating the public sector into a career plan at an earlier stage can offer even greater benefits. Serving for a fixed period before transitioning back into the private sector, provides the opportunity to nurture a distinct skillset and gain the sort of experience which can significantly enhance an executive’s career trajectory upon returning to the private sector.

48 | Issue 55

If you are a private sector leader, these are some of the reasons why you should consider making a move into the public sector: Develop systems leadership Public sector leaders might be running large scale healthcare services, sports trusts, regulatory bodies, commercial or trade entities, or critical infrastructure programmes. Their responsibilities can range from leading critical national initiatives and operations to overseeing programmes providing care for an ageing community or addressing children’s mental health. The challenges can be far more expansive and complex than

FINANCE

a narrow set of commercial objectives – often the focus in the private sector – and requires rigorous governance, complex problem solving, and the ability to lead through influence rather than direct action.

Combined, this is large scale systems leadership, wherein leaders effectively navigate networks of stakeholders, each with their own interests and agendas, while improving collaboration and alignment between all. Leading through influence becomes paramount, as direct control over all aspects is not feasible. Building alliances, collaborating with diverse groups, and leveraging relationships are essential for driving these types of large-scale and complex operations.

The experience and skills developed are unique to the public sector, and directly translate into leading organisation-wide transformation programmes in the private sector.

Manage scale and complexity Public sector leadership can involve a level of responsibility and complexity that surpasses even the most demanding roles in major global corporations. The scope of these positions often means handling substantial budgets and overseeing contracts of immense value, elevating the stakes of every decision. The repercussions of these choices extend beyond individual entities; they profoundly impact entire communities and the wellbeing of thousands of people residing within them. With this responsibility can come great reward; often the very tangible impact senior leaders have in the public sector can be extremely motivating and leads to career defining moments of achievement.

Issue 55 | 49

FINANCE

Setting these leadership positions apart is the need to effectively manage a diverse array of stakeholders, each with their own vested interests. Additionally, leaders must navigate through intricate regulatory frameworks while tackling multifaceted challenges that demand versatility and adaptability. The opportunities for professional growth and development within this domain are unparalleled. Having experience in spearheading country-wide initiatives and overseeing multi-billion dollar budgets equips individuals with the capability to bring disparate and conflicting parts of large organisations together and achieve successful transformations.

Know what not to change While markets grow and decline, business trends change from year to year, and the FTSE 100 looks unrecognisable from what it was twenty years ago, the public sector, in many ways, remains a constant. Government institutions, while they may evolve, endure for decades (sometimes even centuries), remaining impartial through differing political landscapes and changes of administrations. For private sector executives it means joining an organisation steeped in tradition and a culture that understands there are aspects that need to change and evolve, and aspects that don’t.

The private sector on the other hand, can often be transient and disruption-led.

Leaders increasingly embrace a disrupt or be disrupted mindset that maintains driving change can only be a good thing. The more permanent and steady environment of the public sector can therefore be challenging for private sector leaders. But it can also be beneficial; change for the sake of change does not always deliver positive outcomes.

Societal impact The allure of the public sector lies in the potential to work on initiatives with tangible impact and that truly matter. Public sector leadership roles enable an individual to contribute to society’s well-being, work on projects of national importance, and directly impact the lives of millions.

Although the sense of fulfilment in achieving such meaningful outcomes is undeniable, conversations with executives who have made the transition reveal the true reward often lies in leveraging skills honed in the private sector to address public sector challenges. The profound satisfaction that arises from applying a distinctive skill set and fresh perspectives to drive positive change sets this experience apart from anything encountered in the private sector.

50 | Issue 55

Anna Dickinson Consultant Odgers Berndtson’s Central Government Practice

When it comes to Digital security, we are the best in class.

Our award-winning Banking App offers unrivalled security and fraud technology, allowing our customers peace of mind to focus on the important things in life.

Empowering Africa’s tomorrow, together… one story at a time.

Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7