On 11th October BRUIN held a breakfast on gaining greater clarity around the implications of Process Change in Financial Services and the role of change teams in adopting innovation.
Joined by guest speaker Antony Ruddenklau, Head of Digital & Innovation and Global Co-Head of FinTech at KPMG, Antony discussed his experience in introducing automation and machine learning within his financial services clients.
Topics for discussion will included:
- What is the future of Financial Services in 2030? How do we see business models changing?
- What Innovation are we seeing right now across Business and Operating Models?
- How fit for purpose are Innovation and Technology teams to renew legacy?
- What responsibility do we have as leaders for the next generation?
One of the main themes throughout the seminar was what Financial Services will look like in 2030. With research indicating the hit traditional banking has taken in recent years and the lack of trust which still remains amongst consumers. The rise of alternative lending and challenger banks is set to see this pressure continue unless banks adapt and innovate.
The tipping points indicated by Anton in whether traditional banks will survive include key markers in 2020, 2022 and 2027. 2020 will see the spend by banks on data outstrip the spend on legacy technology. 2022 will see Blockchain being adopted across multiple industries and sectors. Finally, 2027 will be the year by which 75% of organisations will have migrated to the Cloud; it is predicated that the 25% who have not will go bust or be acquired.
With statistics and key dates setting the scene for the importance of change in the next few years, discussion moved towards highlighting companies who were ahead of the game. An interesting case study was that of car manufacturers – particularly Audi, which are looking to have an equal sales split between software based services for ‘automobility’ and cars themselves by 2020. Within Financial Services, the approach of Blackrock to technology, considering it as a business stream as opposed to a support function was emphasised.
Then the array of technology on offer was presented including an apt evaluation of the future of personal data. As GDPR has been a hot topic recently, the future of data is being shaped through current regulation. The ultimate outcome we may be heading toward is a future where individuals deem themselves the safest keeper of their own data. This would result in banks having to approach consumers and ask permission for their data.
The tools available on the market range from machine learning to cloud. The technology is out there, the difficulty is the maturity of these tools and successful implementation. One of the key areas Anton emphasised as being a hurdle in adopting innovation is the talent available to firms. The UK has some of the top universities in the world and yet there is a lack of graduates with the skills to join innovation programmes.
In conclusion, Financial Services is changing and needs to change if it is going to flourish in the world of challenger banks. The technology is out there for firms to adopt, the issue is whether our talent pipeline and company cultures can keep up with the speed of innovation.
For more information on the Projects & Change market, or to express an interest in similar events, please contact one of our Consultants.