April 13, 2023
#92 A Fireside chat with Ankit Jain: How Finance Firms Can Use Digital Transformation to Excel in Uncertain Economic Times
In this episode, we sit down with Ankit Jain, Managing Director - Head of Corporate & Investment Banking Domain at SoftServe, to discuss the rapidly evolving world of banking and financial services. With over 25 years of industry experience, Ankit shares his insights on digital transformation, fintech competition, the power of data, and the role of technology in combating financial crime. Join us as we dive into the future of banking and learn how financial institutions can adapt and thrive in a competitive and regulated environment.
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Hello and welcome to a new
episode of the city oil show
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with Muhammad.
My name is Muhammad.
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And as you know, in each
episode, I'm exploring the
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latest trends, insights and
strategies in topics, like
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digital transformation,
cybersecurity emerging Tech,
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startups, and Entrepreneurship.
And today I am joined by an
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amazing guest and kid.
Jane managing director head of
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corporate and Investment Banking
domain in soft serve.
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Who's joining me from the UK?
This morning?
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Who will share insights on some
interesting, topic related to
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how Financial Services firms can
excel in highly competitive and
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regulated environment and
leveraging the power of digital
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transformation.
So, first of all, thank you for
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joining me on the show today and
get if you can, just tell me a
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little bit more about yourself,
your background, and your
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current Company software, ER, So
Mammoth, thank you.
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Thanks for having me in.
It's an honor and I'm really
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excited to talk to you today
Mehmet.
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So I worked at at an
intersection of banking
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technology and business.
So I've got around more than 20
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years of experience working for
large multinational Banks and
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fintechs.
In my current role.
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I am leading corporate
Investment Banking solutions
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group within an advisory and
software development, firm known
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as soft.
Serve as we are a firm of like
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14,000 people globally, And and
growing.
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So it's a team of advisors
engineers and designers solving
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business challenges, with
Innovative Technology Solutions,
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we work with Enterprises to
identify or re-identify, their
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differentiation accelerate
solution, development, and
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accelerate, their digital
transformation.
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That's great.
Thank you very much.
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So the first question I want to
ask you today and get is, it's
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all about it on the digital Ward
and transformation.
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So, from your experience, how
Banks?
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We'll win in the future.
I mean how the digital
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transformation and digital
technology will be impacting
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Banking and Financial Services
industry in general.
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So so bank that will win in
future.
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In my view will be those that
can make better posture
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decisions than others reducing
risk.
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While lending more predicting,
what their clients will need in
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advance and increasing
cross-selling and upselling.
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So what that means Sin and how
digital digitization and
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Technology transformation will
help it will massively by
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leveraging digital to provide
better customer experiences,
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reduce cost and ultimately
deepen relationships with
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customers.
So important Point, here is the
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digital transformation.
Does not mean digitization of
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broken processes but
digitization of whole customer
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experience.
Otherwise what I say, what my
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other people's also say like it
will be just a digital lipstick
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on an analog Pig.
If you are just focusing on the
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broken process, Behind me, we
need to look at holistically
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coherently front to back across,
the customer journey and
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historically, bangs used to look
at their technology provider or
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their in-house it and ask what,
their technology capabilities
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are based on that banks, used to
define their technology
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strategy.
And based on the technology
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strategy they used to define
their business product strategy.
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IE like how they're going to
price their products and
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services how the product can be
configured and then overall Bank
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strategy based on product
strategy.
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So, We wonder where is customer
in all of this, right?
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Who Banks need to serve nowhere.
Unfortunately, the way
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historically, things are done.
So digital transformation
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changes, all of that, and
digitization means keeping
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customers.
Their needs their Journey
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throughout Banks products and
services in front and center of
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everything.
That's very informative, and get
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really.
And one thing if you allow me to
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highlight and it's not only for
banking you, you touched on
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something very important is like
you cannot transform digitally.
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If I can say that what is broken
in the analog world.
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So first you need to fix the
processes and then digitize
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this.
So really, it's very insightful
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also to hear that from you.
Now shifting It's a little bit
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and you know word fintech is
very outside.
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Kind of a hypemode buzzword,
whatever you want to call it.
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How you see Banks can play in
the league with the fintech.
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Yes.
Oh good question.
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So I would take a step back on
it.
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I will say first and foremost
Banks need to go back to basics
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and reassess their business
strategy.
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And as you as everyone know in
this Dynamic economic and
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geopolitical environment.
I meant so strategy is unique,
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right?
As we know, it's a unique value
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proposition, which creates
sustainable competitive
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Advantage.
If everyone is doing it, this is
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not unique.
If everyone can do it, this is
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not sustainable and Technology
by itself is not a strategy.
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So, now, if you can think from
can of how Banks can become more
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efficient and play in the league
different text, what we need to
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do is there not many kind of
points?
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There are three, right?
Firstly, creating a business,
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LED technology transformation
rule.
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Then integration of Technology
themes in business and controls
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processes.
So as an example, we moving to
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Agile right through this modern
devops and modern SEC Ops teams,
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consisting of business,
technology.
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And important point is control
functions from the word go.
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So business technology control
functions which can be risqué FC
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compliance Etc.
These team should work towards
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common goals of realizing
business benefits which are
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either or combination of both.
Native impact on Top Line,
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bottom line and or risk
reduction, which is very, very
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important for the bank's,
obviously, in this economic
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environment.
And then, lastly data strategy,
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and management implementation
should be at an Enterprise
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level, not in the siloed kind of
divisional level, but at think
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thinking strategically and
implementation should be at the
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group level.
That's great.
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So, in other words, if they do
the three points you mentioned
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so Banks can claim that they are
Also in the fintech but you
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mentioned, you know, a war which
is immediately, you know, like
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it clicked something for me, you
mentioned data.
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And when we say data today we
doesn't we don't mean
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necessarily, you know, like just
generation of data.
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But it's about something more
deep than this.
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And I'm I know for a fact that
this should be something
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important, right.
So what is the importance of
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data for banking business?
No absolutely.
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And data is a is a Kind of like
impacting everyone and people
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are doing something about it but
not kind of holistically across
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the industry and is like, a
conversation starter.
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Right in England, we start the
conversation with.
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Whether if you start, if you
want to start the conversation
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on the business date data is the
topic which most of the people
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talk, and it's takes as well.
So, if you think from the
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importance perspective, for me,
it's a new currency of business.
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And if you look at like,
according to a recent PWC report
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businesses with the Data
strategy will experience a
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growth rate of 20 percent more
than those without one.
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And if you think from a market
perspective, is trending towards
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delivering value from data.
While important point is
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fulfilling regulatory
requirements measuring the
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correctness and the usefulness.
Why the value generated and
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banks by banks, by the way, are
increasing investing in data
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initiatives.
But many of those efforts are
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siloed and fragmented and it's a
is the business issue that
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requires an enterprise-wide
approach to be.
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Or previously, like Bigbang
implementation has not worked in
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my view.
The use case approach has proven
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more sustainable.
And impactful bank's, current
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state landscape is complex with
thousand, thousands of data,
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exchanges, and many compensating
controls leading to what we call
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is lack of transparency,
resulting in increased cost and
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risk and most of the data
challenges faced in Banks relate
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to pipelines around the data,
not the data set themselves.
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So hence, it's critical for
banks to use key data principles
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to do.
Move towards the target state
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that is, that is a line, which
is important with the business
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objectives and the static
objectives of the of the
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organization.
Ultimately, the goal is to
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establish a Target, straight
architecture that improves and
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streamlines data and
applications create strategic
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services and share data sets,
and unlock the power of data
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driven Innovation across the
back.
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So, where technology fits all of
it?
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It's from technology perspective
and to improve.
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Data outcomes, Banks, need to
invest in intelligent,
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automation, tools, and
artificial intelligence
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technology to ensure they can
drive competitive advantage
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through data-driven insights
that enable faster response.
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Time better decision-making and
higher customer satisfaction
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level the point.
That that we discussed like
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briefly, what what are the kind
of main business outcomes?
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What banks want to drive towards
which is basically higher
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customer satisfaction level and
better and faster decision.
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Making and that data enables to
do that.
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That's insightful again.
Anchor it now because you
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mentioned that data is on top of
Mind of every business
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discussion.
So from you'll like I mean
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observations that I'm sure you
read a lot of annual reports for
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these Banks.
What other like overall threats.
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You are noticing in the
financial service industry.
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Yep.
So, first and foremost,
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obviously we've been talking
about it.
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A lot, which is digitization of
banking, is leveraging digital
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to provide better experiences
reduce costs and deepen.
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Relationships with customers,
this will continue to intensify.
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Secondly, and is this is no in
no particular order.
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These are like very important
topics which are impacting the
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industry.
So secondly sustainability that
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demand is intensifying as we see
as we speak.
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ESG investing is a part of
structural Market shift it, its
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importance will continue to grow
with firms increasingly aiming
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to optimize both business and
societal benefits and ESD hasn't
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evolved more than must just like
ethical investment.
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Criteria Market.
Attitudes are increasingly
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positively firms are proactively
looking to relocate us or
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resources, investors
increasingly decide based on ESG
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principles, and regulator is
also introducing new policies to
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increase transparency and
enhanced reporting thirdly,
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Customer, expectations are
changing right in this Digital
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World.
Customers increasingly expect
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simple quick, and personalized
products at a competitive
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process prices.
And the important thing is like,
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what we call Generation Z, they
demand will drive a phase
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transformation overall,
Financial Services
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transformation, they became the
largest generation.
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If you think from like 2019
2020, they constituting around
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32 percent of the global
population which we as an
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industry cannot ignore.
Another and but related trend is
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hyper personalization of
customer propositions.
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So leading firms, increasingly
harness data and data science,
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which we've been talking about
to deliver personalized contest
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specific products servicing and
pricing to address clients
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manifest and latent needs.
Then from digital assets
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perspective, they are becoming
mainstream so they are already
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growing in as in asset class
attracting like material,
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institutional interest and could
A profound change and even
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transformation on Financial
Services medium to long term.
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Lastly important but not the
least in its in important kind
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of perspective regulatory
complexity will continue to
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increase.
The regulatory banking landscape
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is changing will become more
complex in.
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Obviously, in light of what's
Happening macroeconomic
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perspective in response of like
sustainability transition in
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response of disruptive
technology in response of like,
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All track mentation and all
those macroeconomic headwinds
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such as very high inflation
rate.
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They are you know like sometimes
I don't want to put myself in
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the shoes of the technology
leaders in a bank.
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I know they do great jobs over
there and there is a lot of
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challenges, one of the
challenges, you know, like
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everyone talks about is,
especially when I talk about FS
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eyes, its Financial crime,
right?
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So whether Cyber attacks,
whether it's fraud, you know.
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So because you have the
experience and kit, what is your
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view on financial crime?
And how Banks do you think are
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00:13:04,900 --> 00:13:07,500
currently dealing with them?
Are they doing the right thing?
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Do they have still to improve
few things?
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00:13:11,200 --> 00:13:15,600
What's your take on that?
Sure, look, it has become a
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00:13:15,600 --> 00:13:19,900
critical issue in recent years,
worldwide, causing significant
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00:13:19,900 --> 00:13:23,000
harm to the industry economic
And overall Society.
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00:13:23,100 --> 00:13:26,600
So banks are taking serious,
there is a huge correlation
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00:13:26,600 --> 00:13:30,200
between what happens in wider
economy and what happens in
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00:13:30,200 --> 00:13:33,100
financial crime.
So, when the economy goes down,
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00:13:33,100 --> 00:13:35,800
certain types of financial
crimes, for example, fraud
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00:13:36,100 --> 00:13:40,900
Market abuse, cyber crime Etc,
goes up and as Banks chains
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00:13:40,900 --> 00:13:44,700
become more hyper connected.
And criminals also becoming very
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00:13:44,700 --> 00:13:48,000
sophisticated the potential
impacts of financial crimes are
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00:13:48,000 --> 00:13:51,800
growing and again banks are
investing but not enough.
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00:13:52,000 --> 00:13:56,600
In my view, there are not enough
specialist and systems to
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counter this threat which is,
which is evolving on the
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00:13:59,200 --> 00:14:01,700
day-to-day basis.
And also the macroeconomic
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00:14:01,700 --> 00:14:06,600
headwinds is also increasing all
those potential threats which
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00:14:06,600 --> 00:14:08,600
are, which banks and the society
is facing.
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00:14:09,300 --> 00:14:12,300
So in a nutshell, there is an
urgent need to improve risk
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00:14:12,300 --> 00:14:17,600
profiling compliance culture and
the use of AI tools and and also
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00:14:17,600 --> 00:14:20,800
the mindset change in my view
like still many banks, consider
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00:14:20,800 --> 00:14:23,300
Financial crime.
As a second line function,
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00:14:23,600 --> 00:14:26,700
rather than as an important
subject which is relevant for
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00:14:26,700 --> 00:14:30,000
all lines of defense's from
front, to Bank of back office in
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00:14:30,000 --> 00:14:32,000
a bank.
So is everyone responsibility.
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00:14:33,000 --> 00:14:35,900
And also, if you think from
Financial crime, remediation
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program, it requires substantial
investment.
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00:14:38,700 --> 00:14:43,300
Not only on controls, but also
in technology systems and, and,
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00:14:43,300 --> 00:14:46,900
and people right, if you think
from any program perspective,
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00:14:47,000 --> 00:14:50,400
what you three things you have
in financial crime, is people
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00:14:50,500 --> 00:14:54,000
process and Technology.
And these are the three things
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00:14:54,000 --> 00:14:56,300
you need to assess.
Whether they are working as
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00:14:56,300 --> 00:14:59,200
effectively and joined up as
possible, across the
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00:14:59,200 --> 00:15:01,800
organization because these
things in reality are
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00:15:01,800 --> 00:15:04,400
interconnected.
If any of these, three things
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00:15:04,600 --> 00:15:08,600
are ineffective, others to are
going to suffer overall, I think
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00:15:08,600 --> 00:15:10,300
Tech.
Again, technology plays a major
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00:15:10,300 --> 00:15:12,800
role in financial crime,
remediation program across the
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00:15:12,800 --> 00:15:15,200
industry.
Where there is no, your customer
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00:15:15,400 --> 00:15:18,600
enhanced due diligence or in
digital identification,
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00:15:18,600 --> 00:15:22,500
verification Technology
Solutions, or by ding risk
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00:15:22,500 --> 00:15:26,000
processing leveraging our PA
robotic process automation
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00:15:26,000 --> 00:15:28,700
tools.
Yeah, that's great.
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00:15:28,700 --> 00:15:31,300
Insight again and Kate.
And now if you allow me just to
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00:15:31,300 --> 00:15:35,100
add a few things here, like you
touched on something very
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00:15:35,100 --> 00:15:40,100
critical which is keeping
investing in, you know, the
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00:15:40,100 --> 00:15:45,200
technology and I always say it's
the cyber security is as it's
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00:15:45,200 --> 00:15:47,400
not my word but again, they make
payments to a lot.
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00:15:47,500 --> 00:15:49,500
It's not a Sprint, it's a
marathon, right?
281
00:15:49,500 --> 00:15:54,300
So it's you need to keep
investing in Knology one thing.
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00:15:55,200 --> 00:15:59,400
Also, I hope that whoever will
listen to this episode from the
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00:15:59,700 --> 00:16:03,000
financial sector, like the
counterpart.
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00:16:03,000 --> 00:16:06,400
I mean, the bad guys.
They became so soft.
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00:16:06,400 --> 00:16:09,900
T cated themselves because they
are leveraging technology.
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00:16:10,100 --> 00:16:13,800
There was an article, I think
two weeks back where these guys,
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00:16:13,800 --> 00:16:16,500
they were able to generate a,
the voice.
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00:16:16,500 --> 00:16:19,200
I mean, they were trying, so
they generated their own voices,
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00:16:19,200 --> 00:16:22,000
they called the bank, and they
managed to get their account.
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00:16:22,100 --> 00:16:26,700
Transfer to somewhere else.
So I think, you know, leaders,
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00:16:26,700 --> 00:16:31,200
technology leaders and everyone
in the in the c-suite board, I
292
00:16:31,208 --> 00:16:34,800
would say they should take this
more serious because it's
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00:16:34,800 --> 00:16:37,700
causing damage to the economy.
And again, the things that you
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00:16:37,700 --> 00:16:41,000
mentioned and get about the
macroeconomics part of it.
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00:16:41,200 --> 00:16:44,300
So it's enough for us, we don't
need more lost over there.
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00:16:44,300 --> 00:16:48,400
So really I appreciated, you
know, the inside that you give
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00:16:48,400 --> 00:16:51,700
from your side.
So it's been a great discussion.
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00:16:52,200 --> 00:16:56,700
You and Kate anything you want
to to also like, share before we
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00:16:56,700 --> 00:16:59,200
come to an end.
Now look, absolutely what you
300
00:16:59,200 --> 00:17:02,700
said, Matt.
Right we need to keep our focus
301
00:17:02,700 --> 00:17:07,300
on on financial crime.
On overall customer Journey
302
00:17:07,300 --> 00:17:11,500
optimization making sure we have
our eyes on business objectives,
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00:17:11,500 --> 00:17:14,500
controls Etc.
But we work very closely, what
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00:17:14,599 --> 00:17:18,500
technology can deliver an N
working on the kind of latest
305
00:17:18,500 --> 00:17:19,900
trends.
And from the technology
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00:17:19,900 --> 00:17:23,300
perspective High, how it can
enable Well, overall business
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00:17:23,300 --> 00:17:24,900
transformation across the
bank's.
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00:17:25,900 --> 00:17:27,800
All good, thank you.
Great.
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00:17:27,800 --> 00:17:30,600
Thank you so much.
And keep really, I enjoyed the
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00:17:30,600 --> 00:17:33,200
this discussion.
So just if you can tell our
311
00:17:33,200 --> 00:17:36,600
listeners how they can contact
you if they have further queries
312
00:17:37,100 --> 00:17:41,300
no show, happy happy too.
So you can have my LinkedIn link
313
00:17:41,300 --> 00:17:45,700
and my email in the show notes,
in case anyone wants to contact
314
00:17:45,700 --> 00:17:48,500
me for any further queries.
That's great.
315
00:17:48,600 --> 00:17:51,800
Again, thank you very much,
thank it for your time.
316
00:17:52,100 --> 00:17:56,500
This morning, thank you for
everyone who killed it today.
317
00:17:56,500 --> 00:18:00,400
Don't forget if you have any
questions.
318
00:18:00,400 --> 00:18:03,400
If you have any feedback about
this episode or the show in
319
00:18:03,400 --> 00:18:07,600
general, you can reach out to me
directly by email, Twitter, or
320
00:18:07,600 --> 00:18:12,600
LinkedIn.
And again, if you have a
321
00:18:12,600 --> 00:18:18,000
suggestion, if you want to have
a discussion or even join me on
322
00:18:18,000 --> 00:18:20,300
this show, I would be more than
happy to discuss this.
323
00:18:20,300 --> 00:18:21,900
So thank you very much for
tuning.
324
00:18:22,100 --> 00:18:25,000
Again, and until next time.
Bye bye.
00:00:09,600 --> 00:00:12,600
Hello and welcome to a new
episode of the city oil show
2
00:00:12,600 --> 00:00:14,500
with Muhammad.
My name is Muhammad.
3
00:00:14,800 --> 00:00:17,800
And as you know, in each
episode, I'm exploring the
4
00:00:17,800 --> 00:00:21,200
latest trends, insights and
strategies in topics, like
5
00:00:21,200 --> 00:00:24,400
digital transformation,
cybersecurity emerging Tech,
6
00:00:24,500 --> 00:00:28,600
startups, and Entrepreneurship.
And today I am joined by an
7
00:00:28,600 --> 00:00:31,700
amazing guest and kid.
Jane managing director head of
8
00:00:31,700 --> 00:00:34,200
corporate and Investment Banking
domain in soft serve.
9
00:00:34,200 --> 00:00:37,300
Who's joining me from the UK?
This morning?
10
00:00:37,300 --> 00:00:42,200
Who will share insights on some
interesting, topic related to
11
00:00:42,200 --> 00:00:45,800
how Financial Services firms can
excel in highly competitive and
12
00:00:45,800 --> 00:00:49,700
regulated environment and
leveraging the power of digital
13
00:00:49,700 --> 00:00:52,400
transformation.
So, first of all, thank you for
14
00:00:52,400 --> 00:00:55,700
joining me on the show today and
get if you can, just tell me a
15
00:00:55,708 --> 00:00:58,400
little bit more about yourself,
your background, and your
16
00:00:58,400 --> 00:01:02,700
current Company software, ER, So
Mammoth, thank you.
17
00:01:02,700 --> 00:01:05,600
Thanks for having me in.
It's an honor and I'm really
18
00:01:05,600 --> 00:01:07,300
excited to talk to you today
Mehmet.
19
00:01:08,300 --> 00:01:11,200
So I worked at at an
intersection of banking
20
00:01:11,200 --> 00:01:13,900
technology and business.
So I've got around more than 20
21
00:01:13,900 --> 00:01:17,400
years of experience working for
large multinational Banks and
22
00:01:17,400 --> 00:01:19,400
fintechs.
In my current role.
23
00:01:19,400 --> 00:01:22,200
I am leading corporate
Investment Banking solutions
24
00:01:22,200 --> 00:01:25,700
group within an advisory and
software development, firm known
25
00:01:25,700 --> 00:01:28,000
as soft.
Serve as we are a firm of like
26
00:01:28,000 --> 00:01:31,300
14,000 people globally, And and
growing.
27
00:01:31,700 --> 00:01:36,000
So it's a team of advisors
engineers and designers solving
28
00:01:36,000 --> 00:01:38,800
business challenges, with
Innovative Technology Solutions,
29
00:01:39,200 --> 00:01:43,400
we work with Enterprises to
identify or re-identify, their
30
00:01:43,400 --> 00:01:46,700
differentiation accelerate
solution, development, and
31
00:01:46,700 --> 00:01:48,400
accelerate, their digital
transformation.
32
00:01:49,800 --> 00:01:51,500
That's great.
Thank you very much.
33
00:01:51,500 --> 00:01:58,100
So the first question I want to
ask you today and get is, it's
34
00:01:58,100 --> 00:02:01,900
all about it on the digital Ward
and transformation.
35
00:02:01,900 --> 00:02:04,700
So, from your experience, how
Banks?
36
00:02:06,000 --> 00:02:09,699
We'll win in the future.
I mean how the digital
37
00:02:09,699 --> 00:02:13,700
transformation and digital
technology will be impacting
38
00:02:13,900 --> 00:02:16,800
Banking and Financial Services
industry in general.
39
00:02:18,400 --> 00:02:20,400
So so bank that will win in
future.
40
00:02:20,400 --> 00:02:24,200
In my view will be those that
can make better posture
41
00:02:24,200 --> 00:02:27,400
decisions than others reducing
risk.
42
00:02:27,400 --> 00:02:31,100
While lending more predicting,
what their clients will need in
43
00:02:31,100 --> 00:02:33,700
advance and increasing
cross-selling and upselling.
44
00:02:34,200 --> 00:02:37,400
So what that means Sin and how
digital digitization and
45
00:02:37,400 --> 00:02:41,200
Technology transformation will
help it will massively by
46
00:02:41,200 --> 00:02:44,100
leveraging digital to provide
better customer experiences,
47
00:02:44,400 --> 00:02:47,400
reduce cost and ultimately
deepen relationships with
48
00:02:47,400 --> 00:02:49,900
customers.
So important Point, here is the
49
00:02:49,900 --> 00:02:52,400
digital transformation.
Does not mean digitization of
50
00:02:52,400 --> 00:02:55,500
broken processes but
digitization of whole customer
51
00:02:55,500 --> 00:02:58,900
experience.
Otherwise what I say, what my
52
00:02:58,900 --> 00:03:01,800
other people's also say like it
will be just a digital lipstick
53
00:03:01,800 --> 00:03:04,100
on an analog Pig.
If you are just focusing on the
54
00:03:04,100 --> 00:03:07,300
broken process, Behind me, we
need to look at holistically
55
00:03:07,300 --> 00:03:11,600
coherently front to back across,
the customer journey and
56
00:03:11,600 --> 00:03:14,900
historically, bangs used to look
at their technology provider or
57
00:03:14,900 --> 00:03:17,800
their in-house it and ask what,
their technology capabilities
58
00:03:17,800 --> 00:03:21,000
are based on that banks, used to
define their technology
59
00:03:21,000 --> 00:03:22,800
strategy.
And based on the technology
60
00:03:22,800 --> 00:03:25,900
strategy they used to define
their business product strategy.
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00:03:25,900 --> 00:03:28,400
IE like how they're going to
price their products and
62
00:03:28,400 --> 00:03:31,900
services how the product can be
configured and then overall Bank
63
00:03:31,900 --> 00:03:33,400
strategy based on product
strategy.
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00:03:33,800 --> 00:03:37,200
So, We wonder where is customer
in all of this, right?
65
00:03:37,200 --> 00:03:40,200
Who Banks need to serve nowhere.
Unfortunately, the way
66
00:03:40,200 --> 00:03:43,200
historically, things are done.
So digital transformation
67
00:03:43,200 --> 00:03:46,200
changes, all of that, and
digitization means keeping
68
00:03:46,200 --> 00:03:49,100
customers.
Their needs their Journey
69
00:03:49,400 --> 00:03:52,300
throughout Banks products and
services in front and center of
70
00:03:52,300 --> 00:03:56,000
everything.
That's very informative, and get
71
00:03:56,000 --> 00:04:00,000
really.
And one thing if you allow me to
72
00:04:00,000 --> 00:04:03,600
highlight and it's not only for
banking you, you touched on
73
00:04:03,600 --> 00:04:08,800
something very important is like
you cannot transform digitally.
74
00:04:08,800 --> 00:04:12,600
If I can say that what is broken
in the analog world.
75
00:04:12,600 --> 00:04:17,800
So first you need to fix the
processes and then digitize
76
00:04:17,800 --> 00:04:20,399
this.
So really, it's very insightful
77
00:04:20,399 --> 00:04:24,900
also to hear that from you.
Now shifting It's a little bit
78
00:04:24,900 --> 00:04:29,900
and you know word fintech is
very outside.
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00:04:29,900 --> 00:04:33,800
Kind of a hypemode buzzword,
whatever you want to call it.
80
00:04:34,300 --> 00:04:39,200
How you see Banks can play in
the league with the fintech.
81
00:04:40,100 --> 00:04:41,000
Yes.
Oh good question.
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00:04:41,000 --> 00:04:43,100
So I would take a step back on
it.
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00:04:43,200 --> 00:04:46,600
I will say first and foremost
Banks need to go back to basics
84
00:04:47,000 --> 00:04:49,000
and reassess their business
strategy.
85
00:04:49,600 --> 00:04:52,800
And as you as everyone know in
this Dynamic economic and
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00:04:52,800 --> 00:04:56,700
geopolitical environment.
I meant so strategy is unique,
87
00:04:56,700 --> 00:04:58,300
right?
As we know, it's a unique value
88
00:04:58,300 --> 00:05:00,900
proposition, which creates
sustainable competitive
89
00:05:00,900 --> 00:05:03,200
Advantage.
If everyone is doing it, this is
90
00:05:03,200 --> 00:05:05,800
not unique.
If everyone can do it, this is
91
00:05:05,800 --> 00:05:09,300
not sustainable and Technology
by itself is not a strategy.
92
00:05:09,700 --> 00:05:13,100
So, now, if you can think from
can of how Banks can become more
93
00:05:13,100 --> 00:05:15,900
efficient and play in the league
different text, what we need to
94
00:05:15,900 --> 00:05:18,500
do is there not many kind of
points?
95
00:05:18,800 --> 00:05:21,700
There are three, right?
Firstly, creating a business,
96
00:05:21,700 --> 00:05:23,700
LED technology transformation
rule.
97
00:05:24,800 --> 00:05:28,800
Then integration of Technology
themes in business and controls
98
00:05:28,800 --> 00:05:31,500
processes.
So as an example, we moving to
99
00:05:31,500 --> 00:05:35,900
Agile right through this modern
devops and modern SEC Ops teams,
100
00:05:36,000 --> 00:05:37,800
consisting of business,
technology.
101
00:05:38,100 --> 00:05:41,100
And important point is control
functions from the word go.
102
00:05:41,300 --> 00:05:44,900
So business technology control
functions which can be risqué FC
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00:05:44,900 --> 00:05:48,600
compliance Etc.
These team should work towards
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00:05:48,600 --> 00:05:51,700
common goals of realizing
business benefits which are
105
00:05:51,700 --> 00:05:55,300
either or combination of both.
Native impact on Top Line,
106
00:05:55,300 --> 00:05:58,400
bottom line and or risk
reduction, which is very, very
107
00:05:58,400 --> 00:06:01,000
important for the bank's,
obviously, in this economic
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00:06:01,000 --> 00:06:04,200
environment.
And then, lastly data strategy,
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00:06:04,300 --> 00:06:07,200
and management implementation
should be at an Enterprise
110
00:06:07,200 --> 00:06:11,300
level, not in the siloed kind of
divisional level, but at think
111
00:06:11,300 --> 00:06:14,700
thinking strategically and
implementation should be at the
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00:06:14,700 --> 00:06:16,900
group level.
That's great.
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00:06:16,900 --> 00:06:21,200
So, in other words, if they do
the three points you mentioned
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00:06:21,200 --> 00:06:25,700
so Banks can claim that they are
Also in the fintech but you
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00:06:25,700 --> 00:06:28,200
mentioned, you know, a war which
is immediately, you know, like
116
00:06:28,200 --> 00:06:31,100
it clicked something for me, you
mentioned data.
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00:06:31,600 --> 00:06:36,700
And when we say data today we
doesn't we don't mean
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00:06:36,700 --> 00:06:40,000
necessarily, you know, like just
generation of data.
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00:06:40,000 --> 00:06:42,500
But it's about something more
deep than this.
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00:06:42,500 --> 00:06:46,700
And I'm I know for a fact that
this should be something
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00:06:46,700 --> 00:06:49,600
important, right.
So what is the importance of
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00:06:49,600 --> 00:06:52,600
data for banking business?
No absolutely.
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00:06:52,600 --> 00:06:57,300
And data is a is a Kind of like
impacting everyone and people
124
00:06:57,300 --> 00:07:00,800
are doing something about it but
not kind of holistically across
125
00:07:00,800 --> 00:07:03,000
the industry and is like, a
conversation starter.
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00:07:03,000 --> 00:07:05,000
Right in England, we start the
conversation with.
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00:07:05,000 --> 00:07:07,700
Whether if you start, if you
want to start the conversation
128
00:07:08,600 --> 00:07:11,600
on the business date data is the
topic which most of the people
129
00:07:12,100 --> 00:07:15,200
talk, and it's takes as well.
So, if you think from the
130
00:07:15,200 --> 00:07:18,500
importance perspective, for me,
it's a new currency of business.
131
00:07:18,900 --> 00:07:22,000
And if you look at like,
according to a recent PWC report
132
00:07:22,200 --> 00:07:26,400
businesses with the Data
strategy will experience a
133
00:07:26,400 --> 00:07:29,100
growth rate of 20 percent more
than those without one.
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00:07:29,700 --> 00:07:32,100
And if you think from a market
perspective, is trending towards
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00:07:32,100 --> 00:07:35,500
delivering value from data.
While important point is
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00:07:35,500 --> 00:07:38,100
fulfilling regulatory
requirements measuring the
137
00:07:38,100 --> 00:07:41,600
correctness and the usefulness.
Why the value generated and
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00:07:41,600 --> 00:07:44,900
banks by banks, by the way, are
increasing investing in data
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00:07:44,900 --> 00:07:47,200
initiatives.
But many of those efforts are
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siloed and fragmented and it's a
is the business issue that
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requires an enterprise-wide
approach to be.
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Or previously, like Bigbang
implementation has not worked in
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my view.
The use case approach has proven
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more sustainable.
And impactful bank's, current
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state landscape is complex with
thousand, thousands of data,
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exchanges, and many compensating
controls leading to what we call
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is lack of transparency,
resulting in increased cost and
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risk and most of the data
challenges faced in Banks relate
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to pipelines around the data,
not the data set themselves.
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So hence, it's critical for
banks to use key data principles
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to do.
Move towards the target state
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that is, that is a line, which
is important with the business
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objectives and the static
objectives of the of the
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organization.
Ultimately, the goal is to
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establish a Target, straight
architecture that improves and
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streamlines data and
applications create strategic
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services and share data sets,
and unlock the power of data
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driven Innovation across the
back.
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So, where technology fits all of
it?
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It's from technology perspective
and to improve.
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Data outcomes, Banks, need to
invest in intelligent,
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automation, tools, and
artificial intelligence
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technology to ensure they can
drive competitive advantage
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through data-driven insights
that enable faster response.
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Time better decision-making and
higher customer satisfaction
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level the point.
That that we discussed like
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briefly, what what are the kind
of main business outcomes?
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What banks want to drive towards
which is basically higher
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customer satisfaction level and
better and faster decision.
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Making and that data enables to
do that.
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That's insightful again.
Anchor it now because you
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mentioned that data is on top of
Mind of every business
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discussion.
So from you'll like I mean
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observations that I'm sure you
read a lot of annual reports for
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these Banks.
What other like overall threats.
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You are noticing in the
financial service industry.
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Yep.
So, first and foremost,
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obviously we've been talking
about it.
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A lot, which is digitization of
banking, is leveraging digital
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to provide better experiences
reduce costs and deepen.
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Relationships with customers,
this will continue to intensify.
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Secondly, and is this is no in
no particular order.
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These are like very important
topics which are impacting the
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industry.
So secondly sustainability that
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demand is intensifying as we see
as we speak.
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ESG investing is a part of
structural Market shift it, its
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importance will continue to grow
with firms increasingly aiming
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to optimize both business and
societal benefits and ESD hasn't
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evolved more than must just like
ethical investment.
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Criteria Market.
Attitudes are increasingly
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positively firms are proactively
looking to relocate us or
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00:10:40,200 --> 00:10:43,700
resources, investors
increasingly decide based on ESG
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principles, and regulator is
also introducing new policies to
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00:10:47,100 --> 00:10:51,400
increase transparency and
enhanced reporting thirdly,
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Customer, expectations are
changing right in this Digital
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World.
Customers increasingly expect
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simple quick, and personalized
products at a competitive
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process prices.
And the important thing is like,
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what we call Generation Z, they
demand will drive a phase
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transformation overall,
Financial Services
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transformation, they became the
largest generation.
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If you think from like 2019
2020, they constituting around
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32 percent of the global
population which we as an
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industry cannot ignore.
Another and but related trend is
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hyper personalization of
customer propositions.
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So leading firms, increasingly
harness data and data science,
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which we've been talking about
to deliver personalized contest
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specific products servicing and
pricing to address clients
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manifest and latent needs.
Then from digital assets
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perspective, they are becoming
mainstream so they are already
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growing in as in asset class
attracting like material,
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institutional interest and could
A profound change and even
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00:11:53,100 --> 00:11:56,100
transformation on Financial
Services medium to long term.
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Lastly important but not the
least in its in important kind
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00:12:01,400 --> 00:12:04,400
of perspective regulatory
complexity will continue to
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increase.
The regulatory banking landscape
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00:12:07,500 --> 00:12:10,400
is changing will become more
complex in.
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00:12:10,400 --> 00:12:13,000
Obviously, in light of what's
Happening macroeconomic
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00:12:13,000 --> 00:12:17,900
perspective in response of like
sustainability transition in
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00:12:17,900 --> 00:12:21,100
response of disruptive
technology in response of like,
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00:12:21,500 --> 00:12:24,500
All track mentation and all
those macroeconomic headwinds
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such as very high inflation
rate.
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They are you know like sometimes
I don't want to put myself in
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the shoes of the technology
leaders in a bank.
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I know they do great jobs over
there and there is a lot of
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challenges, one of the
challenges, you know, like
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everyone talks about is,
especially when I talk about FS
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00:12:47,600 --> 00:12:50,200
eyes, its Financial crime,
right?
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So whether Cyber attacks,
whether it's fraud, you know.
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So because you have the
experience and kit, what is your
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00:12:59,700 --> 00:13:04,900
view on financial crime?
And how Banks do you think are
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currently dealing with them?
Are they doing the right thing?
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Do they have still to improve
few things?
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What's your take on that?
Sure, look, it has become a
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00:13:15,600 --> 00:13:19,900
critical issue in recent years,
worldwide, causing significant
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harm to the industry economic
And overall Society.
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So banks are taking serious,
there is a huge correlation
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between what happens in wider
economy and what happens in
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00:13:30,200 --> 00:13:33,100
financial crime.
So, when the economy goes down,
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00:13:33,100 --> 00:13:35,800
certain types of financial
crimes, for example, fraud
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Market abuse, cyber crime Etc,
goes up and as Banks chains
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become more hyper connected.
And criminals also becoming very
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sophisticated the potential
impacts of financial crimes are
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growing and again banks are
investing but not enough.
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In my view, there are not enough
specialist and systems to
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counter this threat which is,
which is evolving on the
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00:13:59,200 --> 00:14:01,700
day-to-day basis.
And also the macroeconomic
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00:14:01,700 --> 00:14:06,600
headwinds is also increasing all
those potential threats which
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00:14:06,600 --> 00:14:08,600
are, which banks and the society
is facing.
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00:14:09,300 --> 00:14:12,300
So in a nutshell, there is an
urgent need to improve risk
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profiling compliance culture and
the use of AI tools and and also
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00:14:17,600 --> 00:14:20,800
the mindset change in my view
like still many banks, consider
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Financial crime.
As a second line function,
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00:14:23,600 --> 00:14:26,700
rather than as an important
subject which is relevant for
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00:14:26,700 --> 00:14:30,000
all lines of defense's from
front, to Bank of back office in
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00:14:30,000 --> 00:14:32,000
a bank.
So is everyone responsibility.
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00:14:33,000 --> 00:14:35,900
And also, if you think from
Financial crime, remediation
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program, it requires substantial
investment.
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00:14:38,700 --> 00:14:43,300
Not only on controls, but also
in technology systems and, and,
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00:14:43,300 --> 00:14:46,900
and people right, if you think
from any program perspective,
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00:14:47,000 --> 00:14:50,400
what you three things you have
in financial crime, is people
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process and Technology.
And these are the three things
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00:14:54,000 --> 00:14:56,300
you need to assess.
Whether they are working as
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00:14:56,300 --> 00:14:59,200
effectively and joined up as
possible, across the
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00:14:59,200 --> 00:15:01,800
organization because these
things in reality are
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00:15:01,800 --> 00:15:04,400
interconnected.
If any of these, three things
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00:15:04,600 --> 00:15:08,600
are ineffective, others to are
going to suffer overall, I think
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Tech.
Again, technology plays a major
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00:15:10,300 --> 00:15:12,800
role in financial crime,
remediation program across the
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00:15:12,800 --> 00:15:15,200
industry.
Where there is no, your customer
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00:15:15,400 --> 00:15:18,600
enhanced due diligence or in
digital identification,
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00:15:18,600 --> 00:15:22,500
verification Technology
Solutions, or by ding risk
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processing leveraging our PA
robotic process automation
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tools.
Yeah, that's great.
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Insight again and Kate.
And now if you allow me just to
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add a few things here, like you
touched on something very
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critical which is keeping
investing in, you know, the
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00:15:40,100 --> 00:15:45,200
technology and I always say it's
the cyber security is as it's
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not my word but again, they make
payments to a lot.
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It's not a Sprint, it's a
marathon, right?
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00:15:49,500 --> 00:15:54,300
So it's you need to keep
investing in Knology one thing.
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Also, I hope that whoever will
listen to this episode from the
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financial sector, like the
counterpart.
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I mean, the bad guys.
They became so soft.
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00:16:06,400 --> 00:16:09,900
T cated themselves because they
are leveraging technology.
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00:16:10,100 --> 00:16:13,800
There was an article, I think
two weeks back where these guys,
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00:16:13,800 --> 00:16:16,500
they were able to generate a,
the voice.
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00:16:16,500 --> 00:16:19,200
I mean, they were trying, so
they generated their own voices,
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00:16:19,200 --> 00:16:22,000
they called the bank, and they
managed to get their account.
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00:16:22,100 --> 00:16:26,700
Transfer to somewhere else.
So I think, you know, leaders,
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00:16:26,700 --> 00:16:31,200
technology leaders and everyone
in the in the c-suite board, I
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00:16:31,208 --> 00:16:34,800
would say they should take this
more serious because it's
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00:16:34,800 --> 00:16:37,700
causing damage to the economy.
And again, the things that you
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00:16:37,700 --> 00:16:41,000
mentioned and get about the
macroeconomics part of it.
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00:16:41,200 --> 00:16:44,300
So it's enough for us, we don't
need more lost over there.
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So really I appreciated, you
know, the inside that you give
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from your side.
So it's been a great discussion.
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00:16:52,200 --> 00:16:56,700
You and Kate anything you want
to to also like, share before we
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00:16:56,700 --> 00:16:59,200
come to an end.
Now look, absolutely what you
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00:16:59,200 --> 00:17:02,700
said, Matt.
Right we need to keep our focus
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00:17:02,700 --> 00:17:07,300
on on financial crime.
On overall customer Journey
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optimization making sure we have
our eyes on business objectives,
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00:17:11,500 --> 00:17:14,500
controls Etc.
But we work very closely, what
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00:17:14,599 --> 00:17:18,500
technology can deliver an N
working on the kind of latest
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00:17:18,500 --> 00:17:19,900
trends.
And from the technology
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perspective High, how it can
enable Well, overall business
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00:17:23,300 --> 00:17:24,900
transformation across the
bank's.
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All good, thank you.
Great.
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Thank you so much.
And keep really, I enjoyed the
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this discussion.
So just if you can tell our
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00:17:33,200 --> 00:17:36,600
listeners how they can contact
you if they have further queries
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00:17:37,100 --> 00:17:41,300
no show, happy happy too.
So you can have my LinkedIn link
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00:17:41,300 --> 00:17:45,700
and my email in the show notes,
in case anyone wants to contact
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00:17:45,700 --> 00:17:48,500
me for any further queries.
That's great.
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00:17:48,600 --> 00:17:51,800
Again, thank you very much,
thank it for your time.
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00:17:52,100 --> 00:17:56,500
This morning, thank you for
everyone who killed it today.
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00:17:56,500 --> 00:18:00,400
Don't forget if you have any
questions.
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00:18:00,400 --> 00:18:03,400
If you have any feedback about
this episode or the show in
319
00:18:03,400 --> 00:18:07,600
general, you can reach out to me
directly by email, Twitter, or
320
00:18:07,600 --> 00:18:12,600
LinkedIn.
And again, if you have a
321
00:18:12,600 --> 00:18:18,000
suggestion, if you want to have
a discussion or even join me on
322
00:18:18,000 --> 00:18:20,300
this show, I would be more than
happy to discuss this.
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00:18:20,300 --> 00:18:21,900
So thank you very much for
tuning.
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Again, and until next time.
Bye bye.
