More than 5,000 attendees, 1200 C-levels, representation from more than 1500 companies across 85 countries, having 470 speakers across 7 stages, producing more than 90 hours of content – this is EuroMoney20/20 in Amsterdam from June 4 – 6, 2018. Stay tuned to this space for updates from various sessions across the three days!
An open banking system creates a question: are big tech firms partners or competitors to banks? The big tech firms are both. Apple adds a million subscribers to ApplePay each week. Ali Baba’s Ant Financial runs the word’s largest money fund. Banks have no choice but to become a platform experience.
ING operates across 14 countries and has the challenge of making the experience exactly the same across all markets. Banks have to build a unified platform from the front end as well as the inside. “All processes have to be standardized,” says Ralph Hamers, CEO ING.
So how do you get it done? “You get it done by changing your culture. You need a culture of agility and innovation.” Combine elements of design thinking and agility and developing a unique culture of ‘pace’. Realizing that an organization doesn’t have a monopoly on ideas, is what poises it for change, ready to take on the future. ING has more than 150 partnerships with fintechs, aligned with the bank’s objectives and ideology.
ING will be setting up a headquarter campus in Amsterdam, but not only for ING teams – but also open it up for innovators and tech startups. “Co-learning, cross-fertilization and bringing openness to the campus. We want to be open and build the future, right here in Amsterdam.”
Stefan Dab, Senior Partner – Managing Director, The Boston Consulting Group and Andy Maguire, Group COO HSBC spoke about ‘It’s about the customer, stupid”. Biometrics have taken some of the pain points away from the identification challenges and burden, but where the process has not been able to get simplified, Andy explains that it is because of the regulator. “Biometrics, communication points take calls away from our contact center. I inherited a fantastic platform called HSBC Net and it was only recently that it was repurposed so you didn’t have to be an expert to use the application. That has to be our ambition – make it so simple so everyone can use it,” explains Andy. But they still have a ways to go.
If you want to have a successful rollout of a banking application app, you have to dumb-it down so it is easy enough for most customers to use it. That is when it will be able to make it a useful piece of the banking puzzle. “There will be massive change but the core banking model will not die out,” explains Andy.
Carlos Torres Vila, CEO BBVA reminisced about the first Money20/20 which was all about disruption, collaboration, innovation and partnerships. “Our focus now is about how we can personalize and leverage the power of data,” explains Carlos. “We believe in a responsible use of data, where technology is opening up opportunity for everyone. In a couple of months, more than 50% of our customers are on digital. Today is moving about money and money infrastructure, and helping people make better decisions using the data that we have access to.”
Today’s valuable currency is based on trust and the data is the commodity. Louise poses the question if the data silos across segments will be able to talk to each other so that customers will be able to better leverage from services. “Yes. Definitely,” explains Carlos. Regulations in Europe go beyond the GDPR and ensures that third-parties that can access bank data however banks cannot access data from other segments and industries. “We have seen how big tech platforms have exercised questionable ethical behaviour. We have to be accountable for what our customers do on our platforms.”
Charlotte Hogg, CEO Visa Europe, starts off her keynote with an apology. “On Friday, we knew what caused the issue and have been working hard to solve it. It was a hardware failure and we have worked with our partners to resolve the issue.” Payments are already entering an invisible space where people are physically interacting less with the payments. Payments are as seamless as are check-ins and check-outs, and we are now headed towards the age where there will be ‘things’ making the orders and payments for us. Your fridge, for example, will be able to order food and stock for you and make the payment for you.
Europe is at an interesting junction where open banking meets privacy and how customers will be served even better. The competition between banks, big techs and fintechs will now primarily be on service.
Hoggs made two announcements: A Fintech fast track program in Europe and a $100 million investment. Beginning in July 2018, fintechs will be able to oboard in 4 weeks (and not month) and provide advice and mentor to make more value from the network.