How FinTech can help your business?

During the last Luxembourg Finance Innovation Summit, Telindus was granted the FinTech Solution of the Year Award for its DigitalKYC solution. Frank Roessig, Head of Digital Finance Solutions told us more about the involvement of Telindus alongside the financial industry.

What is the contribution of Telindus in improving the overall effectiveness of banking and financial institutions?

"Telindus is a digital solutions provider bringing a broad set of cutting-edge solutions to the financial sector and is authorized as Data-Management PFS by the Luxembourg financial regulator. As such, Telindus drives the digitalization for companies in the financial industry."

 "Financial institutions are subject to many digital drivers, two of the major ones being clients' expectations and operational efficiency. Customers now expect an omni-accessibility to services, convenience, immediate gratification as well as control. Here Telindus builds ergonomic solutions that enable a seamless user-experience, thereby generating positive differentiation for financial institutions."

What are the strengths of the DigitalKYC suite developed by Telindus?

"Clearly, our strengths reside in our solution-oriented approach, tailored design and the incorporation of cutting-edge technology. By providing a solution, we provide financial institutions with a holistic digital KYC that covers the complete value chain and encompasses technology, operations, compliance, together with stakeholder management. The combination of KYC tools by Telindus ensures that the solution is perfectly adapted to a financial institutions’ business and operating model and thereby optimizes the ROI. Finally, the incorporation of the best technology optimizes both user-experience and productivity of a given KYC process. This enables Telindus to offer a completely digitalized client onboarding that is fast, cost-effective and compliant."

 "Accordingly, we will adapt the solution to the profile of existing and future clients of a financial institution, depending on the specific compliance requirements of their jurisdiction, their cultural habits and their profile. In real life, this means that for example in some markets chip-IDs are used and that for given clients a button to get immediate support during the process should be available. The beauty of our solution is that we can add and adapt features as required …"

In view of all that, what are the next steps for Telindus?

"Telindus continuously designs DigitalKYC process and tests innovative technologies. We do so in an agile manner in close interaction with our clients. This is done in view to constantly develop innovative and improved KYC trajectories. Importantly, our objective is to transform KYC from being a compliance chore to a marketing instrument."

 "By adding specific tools, like Artificial Intelligence to the KC process, we can already learn a lot about a new client and incorporate this information into CRM tools. In fact, every action by a client can immediately serve to adapt the KYC process itself and thereby enhance the clients’ experience. By treating KYC like any other client engagement, we aim to boost client satisfaction and thereby create revenue opportunities."

Why is Luxembourg the right place to nurture and develop FinTech solutions?

"Luxembourg benefits from a broad client diversity with multiple cultures and segments that are a great source of learning. Further, the significance of the Financial Sector, notably in fund administration, wealth management and insurances provides a global scope. Coupled with various initiatives that favor innovation, this creates a unique ecosystem in which to develop and test new solutions that could then be applied. This is exactly what Telindus is capitalizing on with DigitalKYC by swiftly testing solutions developed in Luxembourg in other countries."

How can the development of Luxembourg's FinTech ecosystem be accelerated?

"We must continue to attract talents eager to create innovation in Luxembourg. We need to attract entrepreneurs that are willing to create start-ups, but also investors in FinTech. To achieve this, we need a self-sustaining, truly creative ecosystem. I also think that the tax system should encourage venture capitalists to invest funds in FinTech companies".

 "In a globalized market, Luxembourg should not develop innovations for domestic purposes only; we must export our know-how. The country has the advantage of hosting extremely international banking and investment fund sectors. This is a great launchpad for Luxembourg to export its FinTech solutions".

 "More generally, financial institutions are under pressure by peers, FinTech start-ups as well as big digital contenders to optimize their productivity without jeopardizing quality. These are the points that Telindus addresses by improving processes tailored to specific operating models."  

What are, according to you, the key challenges for the FinTech players?

"In my mind, the biggest risks are being held-back by legacy, slow velocity, and lack of curiosity. We live in a world where, on one hand, ‘business as usual’ has become a threat for future profitability, and on the other hand a flurry of new tools emerges. In this context, it is essential to operate in an open and fast manner. Open, in order to explore novel solutions - wherever they come from. And fast, in view to quickly detect which ones behold the potential to generate value. The clear risk here is to succumb to gradual obsolescence."

Which trends in financial technology do you think deserve further attention?

"Both AI and Blockchain are expected to have a lasting impact as they could fundamentally change operational models as well as the client experience. As these technologies mature, their positive return on investment will become clearer. This should stimulate the emergence of proof-of-concepts followed by applications at scale."

 "Now the seeds are planted for the development of realistic financial sector solutions that will generate tangible impacts in terms of economics and client journey. Such solutions should encompass new technologies that operate invisibly to user, including AI and Blockchain-DLT. Those who act will gain meaningful competitive advantages."

Frank Roessig heads the Digital Finance Solutions department at Telindus. This team, located in Europe and the Silicon Valley, develops and delivers innovative solutions that enhance the client experience and optimize operational efficiency for the financial sector including digital KYC, blockchain-based solutions, artificial intelligence, robotic process automation, PSD2 …

Frank has an international experience with digital solutions, business development as well as in operations management for the financial sector. He has built up broad, deep knowledge of finance, working in major financial institutions as well as being a part of the founding teams of start-up banks with successful exits.

DigitalKYC is a fully automated suite of solutions allowing the onboarding of individuals, legal entities, and beneficial owners. It includes the collection of KYC data, verification of a customer’s identity, anti-money laundering (AML) check, performance of due diligence, and obtaining a legally binding electronic signature.

This cutting-edge service can be accessed via any device. Enabled by an omni-channel approach, DigitalKYC provides banks, insurances, the fund industry, service providers, and other businesses with an advanced solution that satisfies customer expectations: a seamless modern user experience, compliant with current and upcoming regulations – such as PSD2, AML4, GDPR, and more.