DIGITAL ECONOMIES
Club @ Sibos
“Even with artificial intelligence or machine learning, the
development starts with humans; from the outset you have to have
the right people with the right intent asking the right questions”
MARK EVANS, MANAGING DIRECTOR, TRANSACTION BANKING, ANZ
customer to progress.”
In doing this, banks may partner with third
parties to ensure they can deliver services
that will be helpful. “It takes a change in
mindset; rather than looking at a product
such as a car loan as an individual product,
they should view it as part of the life cycle
of that individual, a solution that creates an
opportunity for the customer. Banks really
need to put themselves into the customer’s
shoes and look ahead with the customer. At
the CEO level, a bank needs to understand
how technology can be a differentiator.”
For banks to fully engage in the digital
economy, they will to a large extent rely on
market infrastructures. CLS’ Marquad says
financial market infrastructures (FMIs)
are the “natural incubators” to achieve the
minimum viable ecosystems needed for the
successful delivery of products and services
utilising technologies such as blockchain and
machine learning. “Not only do FMIs have
experience building networks, they are trust-
ed by both their members and regulators to
establish common standards, governance and
legal frameworks, and provide comprehen-
sive risk management. For certain networks,
particularly those in financial markets where
the value of transactions on a network may be
significant and the consequences of incidents
can be severe, participants will demand the
operational oversight, resilience and security
standards akin to those that are currently
required of FMIs.” These aspects are particu-
larly critical given many innovative technol-
ogies increase connectivity between financial
institutions and are intended for cross-bor-
der use, he adds. “No matter how smart the
technology, the market is not likely to hand
responsibility for the operation of critical
functions to unknown or unproven entities.”
Michael Bodson, president and chief exec-
utive, Depository Trust & Clearing Corpo-
ration (DTCC), says market infrastructures
have a “unique vantage point” to encourage
and support industry-wide collaboration,
facilitate in dialogue with peers and work
across key stakeholders to optimise the ben-
efits of new technologies. “When a new tech-
nology can have significant positive impact on
the industry, market infrastructures can act as
the catalyst to drive wide-scale adoption for
the benefit of all participants rather than just
a few firms.”
Banks are going through the same digital
transformation as their customers, says ANZ’s
Evans and need to anticipate what their
customers’ needs will be in the future. “It’s
easy to get distracted with the latest digital
technologies and start experimenting with
them for their own sake.” Banks also need to
decide what role they want to play: specialise
in a particular digital offering, offer an open
platform for other providers’ services, or act
as the regulated entity that fintechs use for
their own financial services.
For Evans, the future isn’t just about digital
technologies – it’s also about people. “Even
with artificial intelligence or machine learn-
ing, the development starts with humans;
from the outset you have to have the right
people with the right intent asking the right
questions.”
The full Club@Sibos digital economy
interviews are available online at
www.clubsibos.com.
www.clubsibos.com | CLUB@SIBOS | 5