Vol 11
Intellect Edge
Foreword
Consumerisation of Commercial Banking: Beyond a fad & here to stay!
We take great pride in our theme at Sibos 2022 – Consumerisation of Commercial Banking, as it was conceptualised, owned and launched by Intellect Global Transactional Banking (iGTB).
The world of Transactional Banking is changing, and significantly so! In the decade to come, these fundamental shifts are bound to dramatically reorder the banking industry. As banks assess their future strategies, they need to define their purpose and set a course not just for modernisation, but for true transformation.
We have taken out time to understand what really shapes the way banks offer commercial banking services to their clients. Not only have we done extensive research and addressed the transactional needs of the customer but also analysed and taken note of their emotional needs, designing their entire user journey guaranteeing a best-in-class user experience.
This evolution of Commercial Banking is what we at Intellect call, ‘Consumerisation of Commercial Banking’ and it gave us much joy to share this with the banking industry at Sibos 2022 – the world’s premier financial services event.
It was a stellar week at Sibos in Amsterdam from 10th to 13th October, 2022 with many substantive dialogues, transformative discussions and a gala networking cruise with seasoned industry leaders, like-minded banking professionals and customers from across the globe. We don’t want you to miss a thing and hence, through this special edition of Intellect Edge, we have curated the key highlights of our time at Sibos.
Warm regards
Arun Jain
iGTB unveiled Consumerisation of Commercial Banking at Sibos 2022
Amsterdam, known as the Venice of the North due to its many canals is a lovely city famous for its tulips, for Rembrandt, Van Gogh, Anne Frank and also for its famous nightlife. This quaint and beautiful capital city was host to the Sibos – the world’s premier financial services event that took place from 10th to 13th October, 2022.
- Standard Forum – Discussion on Swift Standards
- Swift Innotribe – Innovation such as Quantum Computing, Tokenised Assets and discussions on the future of Money
- Leadership Talks – Crisp 20 minute capsules with banking leaders across the world
- Partner & Exhibitor Activities at various booths
- Industry Sessions – Panel Discussions on topics in banking involving domain evangelists
- Hyper-personalisation
- Real-time connected user journeys
- Action triggering insights
- Immediacy
- Desire and trust-based decision making
- Friction free experience at scale and how commercial banks need to think contextual (based on personas) and adopt a composable and hyperscale technology strategy.
Day 3 of Sibos kicked off with a leadership talk by Cathy Bessant of BOFA followed by ‘Let’s get Digital: A Blueprint for the Payments Model of the Future’ featuring John Hunter of Wells Fargo, Bruno Mellado of BNP, Philip Panaino of SCB and Renara Vilanova of JPMC where it was nice to hear Philip of SCB state that “the payment is not relevant but the experience around that is”. Similar thoughts were echoed in the session on ‘Star tech: Supporting the Next Generation of Cross Border Payments’ when the panel spoke of “the uberification of payments and how they happen in the background”. Noted Sinologist Pascal Coppens also opined the same in his concept of “smart cities, smart logistics and how we are entering an era where machines are paying and there is no human intervention”. All of this tied up with what Uppili had expostulated on day 1 in his session on ‘Consumerisation of Commercial Banking’.
The panel discussion on ‘CBDCs: How could they be used in international payments?’ involving BDF, Natwest, CapGemini and RBC made interesting revelations that 105 banks are actively exploring CBDC, 9 are actually live and 15 banks are already connected on a X-border CBDC sandbox with Swift’s Transaction Manager!
Sibos not only provides excellent client meetings at the venue, but is also a great opportunity for us to take our clients out for dinner and exchange thoughts and seed ideas in a more informal manner. While we had over 200 high qualified meetings at the Intellect booth across our lines of business. We also had 50+ meetings outside the venue running well into the night every day.
Our booth itself was a delight. We had a large welcome area and behind that a giant screen where eye-catching “Whats New” videos of Payments, iColumbus.ai, Liquidity, Cash Cloud, CBX etc. were playing in a continuous loop. Our booth had a private meeting area for our senior management to meet with clients and prospects and also excellent product collateral and gifts to give away to visitors. This year, in line with our Sustainability (ESG) initiative we gave away QR codes of our collateral rather than printed copies! Our booth offered a really immersive experience into our products and capability.
By the time day 4 dawned, the legs were aching and backs were sore, but the spirits were as high as before. Day 4 started off with an excellent session in the Innotribe Track titled – ‘When an anthropologist, economist and technologist met for breakfast’ providing insights on sensible capitalism, disruptive versus incremental innovation and narrative economics and how the world is at the cusp of the 4th and 5th industrial revolution around energy.
In ‘Managing the new risks to Banks: Climate Change Litigation Risk and the new Due Diligence Risk’, Brian Scott-Quinn of the University of Reading, provided a very interesting overview of the challenges that banks may have to face once the EU CSDD directive comes into force. Indeed ESG was front and centre of all discussions on all days.
At the E&Y session on ‘The rise of PayTech – Seven forces shaping the future of payments’, they spoke of monetisation of ISO being a key priority for banks and how embedded finance will be a $7 Trillion market by 2030 and 60 to 70% of that will be embedded payments.
The grand finale in every Sibos is the closing plenary. This year they had the closing plenary by Bear Grylls who gave a riveting and inspirational speech on survival and spoke of the four F’s – Failure which leads to resilience; Fear which propels one forward; Fire – which helps to hand on and endure and, Faith – in oneself and one’s team which helps to give inner strength.
We are confident that at Sibos 2022, the Intellect brand was firmly cemented in the market and we are now perceived as a FinTech unicorn and undisputed leaders in Transaction Banking, Consumer Banking, Quantum Banking and Treasury.
Story
iGTB launches Consumerisation of Commercial Banking at Sibos 2022
Hyper Personalisation – The first tenet deals with treating each customer as if they are the only one, a segment of one. Use of extreme personalisation not only boosts customer experience and enables trust building but also has a beneficial influence on net revenue and lowering of cost.
Real-time, Connected Journeys – Any outcome that a user is trying to achieve is actually made up of a number of journeys that are more connected than one might imagine. Embedding the right technology enables customers to present their context only once which can then propagate to each service provider in the entire journey.
Action-triggering Insights – In the continuum of serving Information, offering Analytics, enabling Decision making and executing Transactions (the IADT paradigm), mere provision of information or acceptance of readymade instructions to execute in an order taker manner is passé. Banks need to operate on the sophisticated end of this spectrum where they use analytics to enable decision-making and then execute the transaction.
Immediacy – Recommending actions is good. Driving urgency and having them executed immediately, in a risk free manner, is better!
Desire & Trust based decision making – The two most important factors a consumer uses to make or rationalise a decision are a) desire in the product or service and b) trust in the provider. Desire and trust have relevance not only at the point of sale but also during the entire lifetime of the relationship. Banks need to address both these elements with their offering set.
Friction-free experience – even at scale – The consumption pattern in the world of consumers is not uniform. There are points of inflection where scale explodes significantly. However, the end user would accept no compromise on his/her experience being friction free – even at scale. Having the right kind of technology architecture to address this is key.
“Commercial banking is on the verge of a major upheaval that will significantly alter their technology roadmaps. Modernisation alone will not suffice. Banks should plan for a future that welcomes rapid change while catering to unprecedented customer demands. We are pleased to launch “Consumerisation of Commercial Banking” which will enable banks worldwide to not just digitally transform, but compete effectively in the new consumer-driven economy.” said Manish Maakan, CEO, iGTB. He further added, “To help banks embrace this trend, iGTB has leveraged design thinking to build commercial banking offerings that comprise contextual products, platforms, solutions and banking-as-a-service capability. These are underpinned by an architecture built on composable, contextual and hyperscale technology which we term as Commercial Banking Operating System (CBOS).
CBOS is built for the cloud, drives high performance and is highly efficient in commercial banking operations.
To embrace COCB, Intellect Design recommends an integrated three-pronged strategy to commercial banks comprising a) contextual design b) an architecture that is built on composable, contextual and hyperscale technology c) and an offering set that comprises products, solutions, platforms and banking-as-a-service capability.
Insights
FinTech Futures in conversation with Uppili Srinivasan on Consumerisation of Commercial Banking
- How consumers are influencing the strategies of commercial banks?
- What is the next evolution of Digital when it comes to commercial banking?
- How can iGTB create friction free experience at a large scale for their customers?
Managing needs and experiences for your consumer is more than science, it is an art that you hone with qualitative and quantitative research, design thinking and experiments. Keeping this in mind iGTB brings to you ‘Consumerisation of Commercial Banking’ focussing on the end consumer being the primary driver of product design and services even for a commercial entity like a commercial bank.
In this process, banks have to ensure that hyper-personalisation is an essential part of their strategy to deliver a customer experience or user experience. This will get customers in through the door but then comes the hard part, offering and assembling for them the right products, platforms, solutions and technologies.
iGTB recommends that banks adopt a three-pronged integrated strategy for adopting COCB. The first one is to think contextually (with due importance to consumer personas) and identify the stated and unstated needs of those personas and then connect the dots. That’s the first step. Post that, banks are asked to choose the right kind of technology architecture that can deliver to the tenets of consumerisation with three key attributes: composability, contextuality and the last one is called hyperscale. This means having the right kind of data architecture to pre-package data so that you can keep data proximal to where it’s going to be consumed to deliver a friction free experience even at scale. The third thing is your products and services, and for that we ask banks to consider individual products solutions by assembling those products, platforms where you take your own offerings and complement it with a FinTech capability from the outside or go direct or embed your capabilities on a Banking as a Service (BaaS) construct.
IBS Podcast on Consumerisation of Commercial Banking
Robin Amlôt of IBS Intelligence spoke with Manish Maakan, CEO of iGTB, about the ways in which commercial banking is changing and what that means for the banks and their customers; also, how iGTB itself provides a solution that leverages machine learning and predictive analytics, delivered through APIs and an omnichannel UX.
Listen to this exclusive podcast now.
Modern day banking is about discovering the fact that banking is a service industry. Banks today are on a quest to mirror a convenient retail experience into their system. It is much more real-time, here and now so that customers can make informed decisions.
When we talk about Consumerisation, we have to give hyper-personalisation its due importance. Technology is so advanced that now you have Artificial Intelligence (AI) playing a role in it, influencing you and taking decisions in your favour.
For example, smartwatches today consume health data and advise you on what to do. Or if you want to travel, Expedia will offer you airline tickets, hotels, local transportation, and now they’ve started integrating weather conditions integrating the full user journey of an individual.
What iGTB brings to you is all this and more from your day-to-day life deployed in the commercial banking world through composable, contextual and hyper-scale technology delivering value-added interactions with insights, so that the customer can make the right decision for themselves, by themselves.
Uppili Srinivasan at the Sibos Exhibitor Stage
