#LFIS: Innovation in Financial Services

#LFIS: Innovation in Financial Services with Frank Roessig 

According to you, which technology changed the most the way banks do business and serve their customers?

Actually, I do not believe that a single technology is having a significant impact but the right combination of various technologies into a pioneering solution has. Various soft and hard components where used to build the PC, a digital office that then revolutionized the way we work. Likewise, the combination of various digital tools is currently enabling a completely new omni-channel experience for the users of Financial Services, thereby offering a competitive advantage to innovative Financial Service Providers. In fact, it is the permutation between new technologies and design that is currently triggering disruptive changes in the Financial Sector.

This is the reason Telindus is developing value-generating SOLUTIONS around themes like Digital KYC, PSD2, MiFID, Asset Transfer, Reconciliation & Resolution and other themes rather than just technologies.

How has compliance and increased regulation transformed the banking industry? How can technology help?

The new regulatory environment has become stricter and broader. Stricter because the frame is more constraining and the sanctions are harsher. Broader, as now an extensive range of financial activities is covered and furthermore most staff members are engaged.

The Financial Sector is therefore forced to be far more precise with compliance procedures and must ensure the traceability of completed compliance tasks. Importantly, the quality of compliance must be secured as mistakes have become costlier in term of cash and image. All this is expensive, thereby challenging productivity.

This is where technology-based solutions become vital. Telindus, through the combination of cutting-edge tools, enables the implementation of compliance processes that are stringent in terms of compliance, cost-effective and user-friendly.   

Our Digital KYC, for example, onboards retail and institutional clients swiftly, without errors and at a fraction of the costs of manual KYC processes. Further, the Telindus Digital KYC solution monitors and detects suspicious activities continuously based on a data density that is not humanly manageable.

Concretely, a video-onboarding that uses micro-pixilation, facial-recognition, OCR-scanning, data-base validation and other technologies allows for a highly productive plus qualitative onboarding.

Likewise, an AI-based solution that scans and analyzes a mass of client activities will warrant the detection of suspicious or fraudulent behaviors promptly, precisely and in a traceable manner.

The important thing is to tailor those solutions to the business model of a Financial Service Provider in view to optimize the positive impact.

What are the megatrends banks should keep a close eye on?

The megatrends one should keep an eye on are linked to the push and pulls of digitalization. The pulls are need driven while the pushes are innovative technological enablers.

On the pull side, clients, whether retail or institutional, increasingly want to use convenient solutions that are ergonomic, fast, empowering and efficient. Financial Service Providers also pull, as they need to improve their service delivery and productivity based on new client expectations as well as on the assault by new competitors and the constraints of regulations.

At the same time, providers of new technologies push by offering these to Financial Institutions or sometimes even competing with them.

In this context, various technologies have recently shown a ground-breaking potential to accelerate the modernization of Financial Services including Artificial Intelligence (AI), 3rd-generation blockchain, High-Performance-/Neuromorphic-/Quantum-Computing (HPC, QC, NMC), biometrics and Robotic Process Automation (RPA). Interestingly, there is a connection between those key technologies as they do not only enhance Finance but also reinforce each other.

One has to keep a pulse on development of those emerging technologies by testing prototypes and Proof-of-Concepts (PoCs) that validate their scalability and efficiency. This is exactly the route Telindus is exploring with various partners in view to actively favor the application of novel solutions for the Financial Sector.