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good afternoon and thank you for joining us for today's program top trends in commercial banking 2020 I'm rich Melville editorial director for the banking and capital markets group and a rising if you haven't heard the name of rising before it's because until yesterday we were known as source media please visit a rising calm to find out more about what's going on at our company but enough about us for now let's go to the regularly scheduled programming the commercial banking industry faces increasing external pressures that are requiring banks to reimagine and evolve their business and operating models rising customer expectations disruptive competitors new technologies and increased regulation are just a few of the forces at play in response leading banks are investing aggressively to drive efficiency and enhance the client and employee experience building toward a new digital future Accenture has introduced six key trends shaping the commercial banks transformation agenda in 2020 the combination of client work with banks all over the world industry partnerships and renowned research uniquely positioned Accenture to present these trends and helped to define the characteristics of a truly digital commercial bank with us today from Accenture are Jared Rohrer and Chris sis LeWitt's Jared var is managing director and Accenture banking and the global commercial banking and Encino practice lead he has overall accountability for defining the most important industry trends and priorities and commercial banking across the globe and aligning Accenture's team's capabilities and technology ecosystem partners to help clients successfully execute their strategies Chris sis LeWitt's is a managing director in Accenture banking and a North America credit practice lead he has overall responsibility for Accenture consulting work across retail small business commercial and corporate lending Chris specializes in the management and delivery of transformational initiatives and platform implementations for global financial institutions before we move ahead to the actual six trends quick bookkeeping housekeeping note there will be a link visible to you to download the full report from Accenture we'll make that visible to you toward the end of the program we encourage you to do that and there will be an opportunity for you to provide questions to us in the window you're looking at to view this program and we encourage you to do that as well a couple of questions to set the stage for the program can you tell us a little bit about the project that gave rise to this report how you arrived at these trends and maybe help bankers understand what it is they're supposed to be taking away from this sure and thanks for having us and hosting us here today in your studio when we started this project one of the things we really wanted to think about is how how they how commercial banking across the globe is is moving forward right we look at this this massive change over the last five years where FinTech and and digital have begun to come into the commercial bank when we look at what that has transpired into is it's a lot of work around commercial lending and and and one origination around CRM but big giant platform plays that are beginning this digital revolution in commercial banking what we want to do is say what does that what does that mean what are the implications of that and then what does it mean for what we need to do next okay and maybe also give us a little insight into how these were arrived at was this a small team effort a big team effort where the inputs for this come from sure we ultimately crowd-sourced from within Accenture both based on work we're actually performing as in the work that we see coming through the pipeline so it absolutely was it was a group effort I mean ultimately there's a smaller group that then was responsible for distilling but those were comprised of leaders from around the globe who got together and chatted about what is where do we see these ideas coalescing what are those under arching or underpinning themes that then drive through to the to the trends we're gonna debut today we talked a little earlier and discussing this and I know you have developed insight on what you call a maturity curves and where the industry sits in terms of adoption and maybe you want to talk about that a little before we start yeah sure so the graphic up on your screens what's interesting here is is again as I think about where banks are going and it's important to kind of frame this digital journey for commercial banks specifically you know five years ago I would say that you know the technology and the process really weren't in a position to move this work forward in a meaningful way so you're talking about a very analog process across most of the commercial bank across any of the banks across the globe as we have seen the advent of these programs around you know CRM encino or el OS or loan origination I should say we've seen banks take massive steps to digitize that that end and platform or that foundation but as we look at where they are and where they need to go they're really at the beginning of the journey and I think that what's what's interesting is you know after such a big investment all right what we're seeing is banks still have a lot to do right so when these programs started I think a lot of bankers when I said we you know we're at the end of this journey and and now we're at a position to say wow what we've done is just put us at the beginning of the journey and they're really the best is yet to come so as we look at this curve what what's what's interesting to me and I you know and again as we think about where where banks are both here in North America as well as across the globe we are still seeing this this position where banks are sitting in the in this level one and level two with an opportunity to really start to see the breakthrough in two levels three and four we had a you know to your point as we did the crowdsource and we had our you know our global leadership team here in New York a couple of months ago we put a giant version of this up on the on the wall and we plotted the top 50 banks that we do business with now again that was us kind of arbitrarily plotting them but what was fascinating is you know 85% of those banks were in levels one and two and almost half of those were in level one right so there is still just a tremendous amount of work to do in this space now now what that what's important for me to say here and I am will come back to this as we talk about gentleman what's important is that doesn't mean the investment wasn't the right investment it was a necessary investment but there's ton there's a ton coming forward as well but yet that's talking about the top 50 banks we're not talking about the mid tier we're talking about the very top of the top well so it's great question I would you know I I don't think it applies differently outside of the top 50 we just use those as a baseline but but what's been fascinating to me whether I'm in you know in in Birmingham or an Irvine or in Johannesburg or in Sydney the conversation is the same right the same issues are facing you know banks across the globe and the commercial banking space so you use the work foundation I think that's a nice way to segue to our first trend which I believe you're going to discuss with us beyond the digital foundation yeah so yes of beyond the digital foundation right so it's sort of framing a little bit this just now but but as we move away from or banks are moving away from some of these core platform decisions that made and implementations around Alexa van Encino and a Salesforce for China Amex whatever that might be the promise right and again it goes back to where the promise that banks we're making in leaders and we're making us when I get done with these two programs I've transformed my commercial bank right and I'm there and I've arrived and I think that the reality is those programs are making significant improvements right no doubt about it you know you know fundamentally better RM engagement tools right but is adopt where we want it to be right are the tools doing with it we need for an RM not not entirely right from you know from an alum origination perspective or you know anywhere payments we're seeing the improvements coming in but the question is are you getting beyond increased cycle times faster times - yes are you really driving into the analytics and the opportunity that's really with us in the future and that's where we really see this going is how do you start to push forward right and you know I think about a couple of things that sort of jump out right so over the past you know over the past ten years we've seen 27 billion dollars of investment in fintax in just the commercial banking space okay that includes card right that includes treasury management smee lending all those kind of things but that is a ton of investment right and when I think about where most of our banks are today right we're just starting to see where that value is going to come forward so the question becomes you've built something it's really powerful it's moved you away from a fundamental animal analog process it's digitized what you have it's begun to unlock data so what are you gonna do about it and how are you gonna differentiate the number 27 billion is if it's a gigantic number and it yes it's emblematic of all the work that's gone into this and I'm sure there must be some people in the audience thinking to themselves not just that we said we were gonna do this and it was going to fix our commercial banking business but we were told it was going to fix our commercial bank business and don't they have a right at this point to feel some kind of investment or adoption fatigue you know is that is that an OK way to look at my going too far with that no I think it's absolutely fair right banks have put tremendous amount of dollars into their transformation efforts and they've come out the other side with improvements have substantial improvements but I think if you think about this in terms of building a house right it's it's there's a lot more investment in buying the land building the foundation and setting the frame then there isn't putting up the drywall and that's really the stage that we're at right is we have a home now we have a roof over our heads and now it's time to figure out how we're gonna go enhance it with all the bells and whistles let's go ahead and and and put in the wireless networks and the it and all the fancy you know smart smart appliances so to speak right so the incremental investment is substantially less than that foundation the thing I'd say to the idea of fatigue right there's a couple points it's it's an important point right there's a lot going on and these have been billed as big transformation programs they've come with big change in adoption programs and those have been really good right but but one thing that it's really important is there is a new way of doing business right as we think about digital banking and we think about technology how it affects our lives every day if you're standing still you're not doing anything right so banks have to switch the paradigm and are beginning to to say I am in a continuous innovation environment and if I'm not continuously innovating I'm falling behind right and if I'm not doing the things we've already talked about is that are foundational I'm already behind and then how do I begin to catch up and how I do those things but the idea of fatigue is important right folks need to think about it differently one of the things I talk about commercial bank too about commercial banks all day long is these programs right the ones that are driving you know your your your CRM and you're in senior programs as you're doing those things right those are the program with that leadership that becomes a nerve cell of all the decisions you make in the bank so this isn't a project team this is your future leadership team this is a you know the spine the nerve center of the commercial bank where you derive the right decision making you derive the right empowerment you don't process control technology you know and not in a true technologists kind of way but you own all those things and the inputs into that where you're building the future leaders and frankly you got the coolest job in the commercial bank right so as you think about that that becomes that paradigm to think about how you change the entire mindset and then you certainly have to go out in front line and think about change and focus and how you make sure you're doing that deliberately but but there is a fundamental mind shift and it's seismic and how we think about change in technology and digital transformation I guess on some level this this goes to the nature of how competition itself is changing for the industry in various lines of business you may be up against a challenger Bank instead of a traditional bank and and and those banks by their nature often are much more digital first is that yeah absolutely I mean you're gonna hear us talk a little bit about legacy baggage in a bit but digital challenge your banks they don't have it right and that's an important component I was down in Melbourne at the beginning of December and I was walking into me with a digital challenge Bank and I'm you know as I was waiting for the meeting there were there were screens behind me that were just kind of on repeat it was like do you hate your big bank do you hate how slow their processes are you know can you come you know can you envision a path that's different that's fast and trusted and has the right decisions in mind for you and for the credit and from the bank and and it was just like I mean you know again as a former banker right when I looked at that I was like I was cringing because I was like wow this is a scary and fundamental shift but as you look at those business models I mean they're you know if if not if left alone they're gonna eat the bank's lunch right now I think that the scale becomes a really important component of what the large banks have but it is fundamentally changing the game these digital challenger banks have a way of going in looking at things identifying a cute problem and rapidly iterating to it doesn't make them perfect but it makes them interesting it makes them challenge and it makes makes our you know our larger banks have to lean in right and have this kind of this posture that says I've got to pay attention gotta use the scale I have not get way down by the baggage and move forward at a way that keeps me ahead of these guys that's a way to transition actually to our second trend which goes a little bit to culture and the mindset you need in this more digital approach to commercial banking and so I think you're gonna talk about the empowered bankers they're used yeah so so it's it's funny nothing is my clients more excited than talking about the empowered backery that's I almost believe you it's true when when we sit and talk about and I think there's a lot going on here right so so you think about kind of like there's a massive workforce transformation underway but we'll just start there right so and this isn't gonna be a popular thing to say but but historically our RMS right and this is fairly honest right but our RMS spend a lot of time on their existing book right cultivating that you know farming it if you will and making sure that all that continues to read the benefits it needs to do there's a bit of a you know let's let's meet up the Country Club just check-in all that kind of stuff and the paradigm shift is to say if I have a farming mentality how do I become hunters how do i how do I think about like driving a culture that's out building new business because everybody's going to right and I think that that's one component of what we're seeing but I but I look at that and I say okay this is sort of what we're starting we have a whole new entrance of a new a new age of a workforce in the RM space who frankly don't want to do business that way and recognize there's a whole different way so when I look at the intersection of the RM and I look at that with technology we we see that you know this is great visual we h ve this sort of it's just this brain in the center of all this technology right and and when I think about that that becomes the key right the idea is to take a nrm and empower them with the right information the right data right if you can provide that with them and change that culture to say I I'm a super user because I have information at my fingertips that begins to make this shift right now the other thing I'd say and I think this is important right so we've all gone through these CRM programs we have had some results but we haven't had the adoption we wanted right and I think that's fairly honest across the board right and when I look at that the biggest driver I see is that we are still building management tools okay with CRM and we're not building this idea of what is in it for the RM I joke sometimes right we have our own tools and I joke a little bit about that because when I go out and use our sales tools it's at the absolute last moment right because that that allows me to get all the praise about winning a new piece of work without all the accountability that comes with putting it in too early right and when I say that to an RM that's why they light up right because it's true now the thing is you've got to have the management capabilities right and all that accountability but how do you make it useful for the RM right and and I think about like driving client insights putting the right data out there we've got a great set of partners that we work with in the space and trying to figure out how you use you know bank data client day client data at the bank different fintechs our own data and say how do I put the right insights front of a client or in front of client team to say there's a there's a problem with the client there's a potential opportunity with the client and ultimately there's a reason I should be using this before I go on my first call I might even be able to price it effectively right so I can do all those things in advance that becomes a gravitational pull for why I want to go use that tool as opposed today where it's only a management tool right that becomes the key is how do you pivot to say if this is useful they're gonna come use it and coming goes back to Field of Dreams if you build it they will come but what we've built is just a management tool that kind of gets our arms beat over the head with a club right so it's only trend to but we're really we're talking about people and and and that's kind of a signal isn't it that you're not talking about technology displacing or working around people this this is still a people business from from the point of view at least of this this research not solely its this in this trend in particular is about augmenting people with data and data is a pervasive theme that's going to come up again as we talk through some of these other trends but but it's how do we take advantage of the massive amounts of data that are available cultivate that data and present it in a format that it's actually useful that it's not overwhelming that the arms out art out there searching for for data or trying to filter through and using Google Alerts right how do I use something much more robust much more proactive that enables me to go out and have meaningful conversation with my clients because the thing that we found is and we've seen this everywhere we've been commercial bank is still a relationship business the relationship isn't going away it's just the Jarrod's points the days of doing business on the golf course are different right now it's about what are the insights you're gonna bring me what is it then how are you gonna differentiate yourself as a banker from your competitors by leveraging the insights by coming to me by bringing me proactive ideas by structuring deals that are more relevant to me as an individual and my company whether that be a small business or a large corporation yeah so a couple thoughts on that one is you know when we've done some research in Europe recently and surveyed a bunch of clients and they're like you can you can charge me less for a digital-only platform and I still on my arm right so the idea of putting the arm at the center is this key kind of going back to this broad point I want to just kind of hit a case study right so we worked with a commercial bank in APAC where we we really brought all this together this you know this this RM human centered approach that says if I have the right analytics and insights using external data bank data right and I put that in the right platform which is this is key if it's usable data and I'm consenting and driving those behaviors that's where you see change this bank saw a 46% increase in applications it's amazing right 40% increase in cross cell those are the kind of opportunities that exist here when you get it right right and I think that the key is getting started identifying some signals getting something out there even if it's even if it's small that starts to build that gravitational you know King off the word behavior obviously I think it's obvious that people need to be helped along this path as well whether it's training or whether it's development or however you develop staff and that requires a commitment almost as much of a commitment at least from a financial institution to get their team in that place do you sense that there's that level of commitment the industry right now to make that part work ish right so we see it in places right so I think certain institutions we've seen very substantial commitments to investment in training retooling honestly new leadership techniques new new behavioral techniques and we've seen other folks who have been slower to adopt that or slower to recognize the importance and the changing role of the banker and frankly all the personnel along the lifecycle as it pertains to doesn't matter if it's Treasury or lending or whatever it is right then anyone who's interacting with the client has to has to up their game right well we talked a little bit about emotional intelligence and how important that is to relationship banking if you if you're going to talk about relationship banking again regardless of product you the person having that conversation the person on your side of table better have the emotional intelligence to to interact and and you know we don't want to get too far down the retail banking path but to compare that as an example the the paradox I've always found with the branch for example is that the key interaction point is not the senior most informed person in the branch you've got to get through two or three other people to get to that person right so we're starting to see that evolve a little bit with with some of the modern-day branches but if we think about applying that to a commercial sense it's have we made that same investment on the curtain in the rme in the underwriter in the the back-office person in the onboarding agent right have we talked through all the different folks that are going to be interacting with the client and really train them to interact in today's world and to augment self-service capabilities with actual personal interactions Chris you're gonna get trend 3 yeah we're gonna change gears a little bit here but yeah intelligent automation for commercial banking yeah so so this is an interesting one right automation is enough new right we've been talking about it for at least five years arguably the better part of a decade but I think the reality is we talk about our PA robotic process automation it was sort of presented like it was gonna be this miracle bullet for for all problems and yeah they've been isolated use cases where you can see that but by and large I think it's it's under delivered on its on its promises so but what we see now is the the evolution of that automation towards intelligence and we pick that word specifically for two reasons one because we do see it being paired more with machine learning with AI to make more intelligent decisions and more intelligent routing throughout that that classic cost takeout speed and efficiency automation play but we also use that in in in word intelligent words specifically to talk about the intelligent use of automation and more specifically the intelligent use of all the ways of automation and some of that might include offshoring that might include outsourcing that might include partners it can include fintax it's not just about it's not just about our PA as you were talking I was thinking about an analogy that people used to talk about in Bank M&A revenues or revenue opportunities or soft costs are hard and in thinking about tech you know you have you have this ability to reduce costs our ability to optimize and speed up your process is the bias still toward cost and in the conversational often and and sadly I think it is and I think that's what we're trying to change is the by it is move the bias away from cost and towards quality and towards service right think about the think about it from a customer journey perspective how is this automation going to improve and expedite my customer journey how is that going to improve my quality how is that going to ensure that I have repeatability cost will come alright if you get those other things right the cost takeout will come so it's time to to flip the script so to speak on what our primary focus is with automation good I was just gonna kind of dial into the point on quality right I think that it gets overlooked in all this but everything we're talking today is about you know this this idea of a digital transformation and there and anything that that we're talking about requires a robust foundation right and it requires your process to be you know as standardized and simplified as possible right it requires you to eliminate the bespoke processing all those kind of things that makes you more compliant right it makes you more effective but more than anything else you can't rely on the technology be effective if you haven't mastered the process all right so the process stays important in fact it becomes more important in some respects because you just you you can't automate something that is full of variation right so as you think about your digital journey right really dialing into where where that where that certification can can be and how that applies technologists Keith this is not this is not the technologists game it's going to be a piece of the game but this hybrid technologist business leader that's the way this goes right the business is going to have to drive this understand how you how you make the you know you make this this idea of intelligent automation be the cornerstone of building everything else because if this foundation is not tight you've got issues right and I and I think about intelligent automation I think about outsourcing RPA all those things basically are enabler is an empowerment of how you do that more effectively and allows everything else you're doing to come into line yeah I think in the report you specifically called out implications for outsourcing and offshoring and maybe I want to talk about that for a moment sure well it's it's interesting I think the the long-held belief was that okay automation is going to replace offshoring ironically it's the Offshore's that are doing more of the automation the folks are looking at this saying hey if I don't do this to myself and and and then someone will do it to me so ironically I think it's actually the the progress has come more out of the outsourcing in the offshoring then then it's been done to them are there areas lines of business that stand out right now is the sweet spot for some of what we're talking about right now sure I mean the obvious choices is where there's volume right so you think about small business you think about business banking there's there's obvious application to where there's where there's high volume of repeatable tasks but the the often overlooked areas are the bespoke processes that the Jarrod talk about yeah spoke about so maybe someone in the realist fulfillment is constantly going to a website to enter information because that website doesn't have an API even if they did you're never going to get the business case dollars to integrate that system right you're not gonna get the half-million million dollars to go build that integration well why not spend a few thousand dollars to automate that task and put that high cost employee on a task that's more productive so it's so the costs a vis not just about hey can I reduce headcount it's about can I take my employees and put them on more valuable tasks that are more beneficial back to that customer journey point in a ticket I think you're gonna be leading on topic four as well and this one goes to a I yeah in a post digital world oh yeah post digital post digital yeah that's a scary it's the scary part of this right now I mean it it's time we let's start with the facts artificial intelligence is behind the times in commercial banking it's only just really starting to take effect even in retail banking which is clearly ahead of commercial banking in this space so so artificial intelligence and commercial banking is not where it needs to be however it is rapidly coming up the curve and I think it's high time banks sort of acknowledge that so we've seen and we see that across a couple different areas right the the one that's been talked about for some period of time is automated spreading right so we see a number of players out there in the industry that are that are trying to automate that that process is highly manual highly rapido in theory highly repeatable we've seen folks make progress with personal financial statements coming up the curve under corporate financial statements still some challenges parsing footnotes and and from the auditors but but we're see that coming up the curve but it's not just about the automation in the cost takeout it's about it's about how do I enable decisions it's about how do I there how do I bring real intelligence to the important parts of the process yeah I mean so let me take a couple of thoughts on this too right so so one is you know it's interesting we just think about like AI is how are you using data right think about is simply a satins perspective it's not as simple as that right to Chris's point but but you know I pulled us to hat I don't know it's in our report but there's there's five zettabytes of data today and you know I had to go to must be a big number it's good see it's got two T's it's fascinating so I was like how big is that and I didn't had to move it into something I understood so if I've said it said a bytes of data on the planet that is 900 newspapers per person on the planet what would that that were the truth because my business would be doing so zettabytes but but it's just I mean the thing here that becomes really important right is that it that is just so you know it's hard to comprehend how much data that is right and and I kind of laugh because that you take that and say well okay well thanks have a lot of data you have to rich right now you laughs I'm looking yeah yours out there in the audience but but all the bankers tell me how rich they are because they have all this data and it's it's interesting cuz they can't access it it's not really useful it's like it's like being rich and having you know you know a billion Zimbabwe dollars and today it's just it's just that if there's a big difference and and and when we look at how how banks are strong you know how they're working through it as you've got to get this this concept of a data swamp really needs to be cleaned up and and you've got to think about how your data strategy becomes the corners don't know how you move forward and you've got to think about where you know where where you have strengths and how AI and partners are going to help you on the outside on the outside because this is not the games not going to be your building at all internally right you're gonna figure out where you can actually drive that competitive and as you move before you know Chris talked about decisioning you know we worked with a bank here in North America and we've seen you know them actually began to use AI in their decision-making process and the under twenty five million dollar spac they're making decisions on seventy-five percent of those in less than a day mmm right so I'm pretty sure some folks just shifted in their chair right because that's a pretty significant change that means the the entire industry is going to continue to shift towards faster and sooner right and as they do that how are you leveraging AI to build that capability because you just can't do that with bodies a body shops not going to get they're right the other thing about AI and all of this is when I think about where banks have been focused over the last four or five years it's been about cleaning up the internal house so we're going to talk about that more in just a minute but it's it's fascinating to me how internally focused everyone has been and not really focused on the customer it's time to really get real about what this means for the customer right thinking about how you're actually having you know useful interchanges digitally or through URM right with a client right we've done all this internal stuff about cleaning up our house well what are we doing to make their lives easier and really do that bankers talk all day long I'm leading from the client and the realities we're leaning on how we're gonna get better cycle times and stuff because we're doing stuff that helps the client but we're not directly focused on the client right so I think AI really helps you get there now all that being said when I look at AI I say you know this is still a foundational year this is still baby steps right they will work that we just talked about around intelligent automation is important the work we're talking about digital transformation is important all of those things are driving towards this and the banks that are coming up that maturity curve the fastest are the ones that are starting to play around in the space and figure out what they're gonna do nobody has it soft but there are really great you see it's not there we're starting to see them come to life a couple of things you said I often ask people when they say AI and there are hints of both of these in your response its massive data crunching all the way to decision making and here at decision making by the AI as opposed to decision making supported by the AI and I mean it's wearing the spectrum are we or are we all over the place is there a spot is there not one spot it's it's all of the above now that which respective maturity and adoption is certainly different across that curve right I mean I think there's there's a much higher comfort level putting AI into the repeatable machine tasks if you will the service safe unexposed areas of the platform or of the process but we're really talking about AI across across the patch I mean we're we are in a situation where we're talking about a is making decisions and that's gonna make de Jerez point a lot of people uncomfortable but AI making decisions doesn't displace human decisions humans are still writing the policy humans are still going to be monitoring and they're still going to be exception so it doesn't completely just spore not talking to Minority Report here right displacing humanity but but we are at a point where we have to get we have to accept that that is coming and you either embrace it or you run the risk of being obsolete now when you tell me that makes me think about like you you Chris talked about retail a bit earlier right when I look at really dumbing down what I think AI is and commercial banking look at what you do in your business or in your business or with your your smartphone today and how that applies in the retail space it's all coming I do a done a presentation a few times with a colleague of mine who runs the digital retail practice for us and we do that for an audience of commercial bank he goes first and he blows their minds with what he's talking about because they're like I just can't believe you can do that I'm not alone right and it's like the stuff that's happening it's a bit mind melting right and then it's you know everybody's really excited that I can often sort of talk about the realities of hey congratulations on digitization and some baseline effect effect but but you haven't even touch the surface on some of those you're talking about so how do you begin to move that forward and really drive towards that but I think that this idea of what's happening in retail and what's happening in other businesses outside of banking it's coming to commercial of course it's coming here slower we do have more complex processes we do have more complex clients right but the AI is improving right our capabilities are improving you're no longer an analogue bank right so now are you gonna leverage the ability of being truly digital and take it to the next level gonna dial back to a topic we talked about a little earlier use the phrase legacy baggage before a trend 5 is essentially about discarding the legacy baggage yeah so look we we come to the grim reality right which is we said we're going to talk about data we said we're gonna talk about about legacy platforms and no conversations complete without acknowledging them while there's been tremendous investment in transformational initiatives while those have yielded tremendous value you start to look outside of that investment and look around it and you see a lot of systems that have still been there for 20 and 30 years and it starts with data commercial data whether it be lending or payments or whatever is still not where we need it to be it's couldn't it's improving and as these investments start to to originate new products new loans new onboarding processes etc that data will continue to get better but that old stuff that's not going to run off the books for ten years is still sitting out there yeah and still has to be dealt with so the reality is that they're sorted you were seeing we believe strongly that decoupling is coming to commercial banking in much the same way it came to retail banking right five years ago this was the same problem in retail banking and over the past few years we've really seen folks realized that you don't have to replace your entire core banking platform in one fell swoop you can start to decouple individual pieces of that parcel off that that data swamp we talked about and clean and cleanse and sanitize and inhale a patch or a parcel of land and then move on to the next parcel of land and that's what we think needs to happen with commercial banking as well whether that's collateral data whether that's covenant data whatever it may be that's out there that's incomplete that's in a text blob that's that doesn't mean today's standards and it frankly makes both the banks and the regulator squirm right needs to be addressed and and we actually believe that technology exists to do that we've we've talked we've touched around this topic we'll hit it head-on historically technology has been the limiting factor we have reached a point where your policy and your process you are now your limiting factor of your business not technology and that's a pretty fundamental shift and an important point which is the technology is there to enable you to to do whatever you want to do and it's not just the cost and money that we've always heard about it's it's really there someone is there and if not someone's not there someone will fill that void very quickly so it's how quickly can you adapt your process in your policy to fill that void you mentioned regulators just not this quickly and and I have two regulators I think at least the perception is they have a bias toward the status quo when it comes to what they want to see and and the response sets they want to see I think there's also a bias out there toward single providers and and not the the part but everything should just be part of a whole and and and so some status quo inertia coming at least from the regulatory side is that a fair characterization I mean I think it's fair right I mean I will say well we made it 35 min to 35 minutes into a banking presentation before we got to regulators for that so that that might be a record but but but since we're here look it's it's a bit of a lose-lose situation that's an ugly way to look at it but but that's I think the reality which is banks are coming off of m-ras and consent orders they've had they spent tremendous amounts of money put in in most cases manual control processes to to you know close those gaps and make the regulars happy that's all well and good but are you gonna continue to you gonna continue that process ad infinitum right and I think that's that's the so the other option is to attack it from an oblique angle and say how do i bypass that process altogether so it's gonna make some people uncomfortable right nobody you just like we finally got out from out of that mr out of that MRA after nine months last thing I want to do is ever talk about that again right now we're talking about flood again but the the reality is it's got to be addressed or you're just gonna be back to that legacy baggage point you're gonna be carrying that on ad infinitum yeah I I just don't see a choice right as a as a former banker when I when I look at regulatory I think I've had my own share of MRI switch you know we probably wears badges but what I would I named some name ya know but at the at the heart of almost every one of them across banking it's an operational failure a data issue a process issue right and then to your point Chris what's happening as banks are going and making tactical fixes right and then guess what those tactical fixes break right and then guess what you've got a new MRI right so or you find another one because it's still inconsistent whatever its if you don't just break from that fundamentally break from that you're gonna continue to have the same issue right so I think that there is an important and difficult conversation that has to have be had with regulators right as to why this is more effective right banks have to be very cautious careful and compliant in how they migrate but there is no choice but to migrate it is the best and safest option for these bags to take at this point it's it's starting to feel like we've migrated from a conversation about taking just technology to it essentially a future state for the industry and and and where the winners and losers get decided it's almost at this point fundamental I I don't know if that that's a well it's an interesting segue into into the final trend I think right number six which is this concept of role six right let's bring it up and got a debut it here Digital Ecosystem right this idea of the connected ecosystem and it's not it so if you think about the process from from pre-sales through sales through onboarding through whatever the product fulfillment is right ultimately and into servicing that account there's no reason why we shouldn't have all of that connected there's not gonna be one platform right it's not gonna be one platform that connects and drives all of this information that's not what we're proposing but we're saying is we need to start thinking about this as an ecosystem we need to get out of our my Opik silos take the wide-angle lens and look across the patch and say how do i connect all of these systems how does the the loan servicer use that have the same information that the sales support person has that the underwriter has that the onboarding specialist has time to put end to end and then program exactly yeah I mean actually start thinking about it end and not end to end from my point from where mine starts and mine stops which is unfortunately how we tend to think about end to end in today's world so and you mentioned it it's not just about the technology anymore it's about how's my process and then and how are my people integrated end-to-end forget the organizational structure for a second but how do they how do those handoffs Cortney how are they natural how are they aided by how do they flow naturally by technology and with a cohesive business process I'm gonna take and expand on this idea of the digital ecosystem and that integration is step further right so that end n view is a hundred percent important and we talked about this a little bit before but identifying the right ecosystem partners to elevate your game is a huge component of this right I just don't see a path where banks are going to be able to compete and keep up if they continue to think that the best path is to build everything by themselves now I know that's a controversial statement I understand that but but the reality is if banks are going to compete they're going to identify where their secret sauce is leverage that commoditize the rest and ultimately figure out which which of these partners knows something better than I do or can do it faster than I do and give me that competitive advantage because everybody's coming after me right everybody is moving this is a place where standing still will make you die right and I can see it over and over again some of these programs where we think we're smarter than everybody else right and we're going after it is a real challenge right it doesn't mean you shouldn't go build stuff a hundred percent think that there are things that banks should build but if there's something out there in the market I challenge you to use it and figure out where that fits in your fits in your ecosystem some of this goes to the idea of who's in charge who controls the decision making whether it's within the company and and and begins and ends at my desk or whether Ed's I'm in an ecosystem and I have partners who are calling shots that I feel like should be my shots to call what what happens to break that mindset is it is it just the forces of competition or something else does does the internal structured decision-making team have to change and evolve I mean absolutely right there's a difference between physical ownership and control yeah and I think people need to get past that point I think too often those two things are blurred and compared and I think you can still have the control even if you don't have the the the physical asset whatever that asset is sitting in front of you right it's - Jarrod's point is about do you have the right partners and whether those are internal organization partners whether those are vendor partners whoever they may be do you have the right partners and are is your relationship structured in a certain in the right way and I don't mean contractually I mean is your relationship structure in a way that is truly beneficial for both parties so that it's not this master/slave relationship pulling the lens back to sort of a global perspective there are probably variations from country to country region or region type of bank to type like can you identify places where this is happening faster better than other places yeah it's funny you know I think there's this natural inclination to think that North America lags the rest of the world and in commercial banking it's actually the other way around which is which is sort of fascinating because compared to retail banking compared to mortgage lending compared to other areas you know there's certainly other parts of the world that are far more progressive but most of the thought leadership in commercial banking at least over the past three to four years has really come out of the US or come out of at least North America and we started exporting that ideas elsewhere now that's not to say that there aren't very different leading banks in in Asia Pacific or even in Europe but but as a whole as a collective I think we're actually seeing that this is a rare instance where North America is leading the pack looking back at the at the six trends should should the audience read anything into the sequencing the order of it is the saw hierarchy no I mean so I think that there's a couple things right so this is this this list of trends is not supposed to be and all be all we know that banks have a lot of work to do you you've got to continue to focus on compliance right that's gonna always be there but like the other big things that we know are out there right a lot of banks are dealing with an AFS level 3 mandate so having to replace a little on servicing platform we know banks have to deal with the cypher you know they'll over th library decipher changes so I can't say it today by the LIBOR transition but so there's a lot out there but our point here today was to really say one of the things that are gonna change the game right because all those things are kind of table stakes and exists but one of those things are gonna change the game and really build you so think about that first I guess that first trend around digital foundation and building beyond that all the things that we're talking about today are saying you've built a big foundation you made a massive investment we believe there's a there is an incremental investment from here that drives the transformation that you're looking for and builds the digital bank that you can become right and that I think that's the key in all this and these are the other five are really the steps that get you there in some respects but that's the way I think about it it's just you know the the idea of moving to digital it's here right we thought we were going to get there already but we're you know we're just you know the work over the last five years well it was some day a most exciting work we've ever done in commercial banking it just got us to the starting line and now we're really going to move mountains if you will so that there's a view that the next step is has a higher multiplier value than absolutely Travis or so on yep okay I think it's a good time to remind people that if they want to send those questions there's a window on your browser that will allow you to do that and we'll have those appearing on the screen in a moment and also reminder that you'll be getting a URL eccentric comm slash commercial banking trends 2020 you can visit that to find out more download the report this is all based on and I believe perhaps even leave questions of your own behind if you if you want to get in touch with someone on stream all right so let's let's pull back one more time and away from the individual trends and and and start talking a little bit more about the broad picture for many people I think there's this concern that they've heard so many of these things before or they hear them all the time and it's hard to separate what to really attach their attention to from what is just the latest buzz that everyone happens to be running around hyping at the given moment what's what's a good takeaway for the audience how to separate those two yeah sure I mean I think we're in an age now where every banks gather their Innovation Lab residual studio or is partner with somebody why not bring that why not bring that whether it is a FinTech or idea or whatever it is into that lab yeah kick the tires on it right gone are the days of paper based RFPs and presentations all right let's prototype let's build let's let's ensure that it's gonna does real and it's gonna work and if it isn't you kill it fast right agile fail fast and if it is by all means go after it so I think the days of worrying whether something is vaporware right it's just a sexy presentation needs to step aside - - hands on fingers on Keys prototyping I think the other things I mean you should use us right I mean I'm meeting with fintechs all the time at least every couple weeks I'm being introduced to somebody new a big part of my job is to connect those dots and figure out who the best and brightest are out there and continue to evaluate how they fit in the ecosystem inside of a bank right we have great partnerships across the board with many of these vendors right so you think about you know Encino finestra AFS bit for zafon precision lender you know even some relatively new things like oak Norris right there they're out there they're real they're very interesting right and in my job is is to help you qualify how that fits in your company and in your bank and make sure that it's right on your strategy and accelerates that right so we're there to kind of play gatekeeper to some respects in addition to going in and trying it by yourself I guess some of it comes back to an honest assessment of your own strengths and weaknesses and and what problem you need to be solving first or second and and and migrating from that backward to what the solution might be absolutely I mean there's still an element of prioritization here right yeah and tackle necessarily all of this at once so there is still an element of what what is achievable at my bank what is palatable right not all of these things are gonna be immediately accepted by different parts of the organization you're gonna you're gonna inevitably get the organizational antibodies coming out after you really try to tackle all of these items so so there is an element of prioritization and realization and rationalization but at least presenting these ideas getting them out there starts to the the first step if you will towards this journey is awareness yeah right and I do think well you can't act on every single thing today you're you're absolutely right you have to have a plan for each of these elements right you you just must have a plan right I think that you think back to the digital maturity curve we started with right all the banks are sitting in level one at one level - not all but almost all right but what I think is gonna happen in that's 2 to 3 years is that's going to fundamentally shift and you're going to see a break right right we know our surveys already telling us like the the digital experience is going to matter to our buyers more than ever the brand is going to matter so if you put those two things together who's gonna have the best commercial digital brand right and if I'm a regional bank today and I'm looking at what's happening with somebody you know even think about the the brand-new truest Bank right who's coming together with the idea that you bring technology together I was like how do I get a leg up on this and make sure I can compete and bring those investment dollars to bear the most effective way because if you're not thinking about those things that digital brand remains at risk right because you just don't want to be the old bank who's not digital organizational antibodies by the way is a phrase I'm going to shamelessly steal a new question just in what's a realistic roadmap to implementation are there best practices from implementing technologies that you can share this is a very how-to yeah it is and we alluded to it right which is which is set with an achievable set of goals right what is it what is it you're trying to achieve prototype fail fast right under and and then and test market it with your with your organization right in parallel be looking at who are the who are the vendors in this space back to Jarrod's point building is not the answer nine times out of ten building is not the answer so how do you so who can i partner with who's who's investing in the space who are the leaders in this space how can i partner with them how can i build something that is in the best interest of both organizations that helps to leapfrog my current my current positioning i one thing i feel like i just have to say it right so thanks gotta give aside it gets out of the mindset that they're gonna be done right there's an end point i know we talked about this a little at the beginning but this ongoing consistent innovation is key all right these these programs that call themselves transformation right and that's gonna be the end of it and they put all these expectations in place that's gonna be finished that's not the way you have to think about this how are you continuing to innovate and build on these pillars right Dana is and what we think about AI today and what we're gonna be able to do in five years and ten years fundamentally different so if you don't start today and you haven't cleaned up your data right if you haven't thought about digitizing your your end end process so you can actually get to that data right if you haven't done those steps what are you gonna do next right it's a matter of making sure that you think about all that an ongoing innovation process people technology bringing it all together and driving that over a period of years that is an ongoing innovation right it's just gone to the days of you know kind of kind of like throw your head well I I've gotten to the top of the mountain and to put a fine point on this this is not a call for the end of the Innovation Lab movement this is just repurposing of why it's been moving it away from retail and into commercial yeah I mean hate to say it but most of those labs were funded on the branch of the future or or how do I launch my new mobile my noble Bank my new mobile banking platform right and it's it's repurposing and to or expanding the the call to action for that investment take a new question how does the use of new technology impact customer relationships will it have more of an impact on particular categories of customers let me start so I think customer I mean it's a it's a great question right and I think the customer expectations are migrating right I think that the good news is everybody's in the same pack right in the commercial bank today right so everybody kind of expects to you know upload their financial statements more than once every once in a while everybody expects it to take forever to kind of get money right on board a new charge your management plan your product all those things we know that those aren't going to be great right so so I think in today's environment you know customers sort of accept that this is just the way banking is done right but that is changing and I think that the impact and the expectations we had a digital challenger or you know the spec we talked about is you know getting decisions made you know in in a day when you put those things together those expectations fundamentally change right now I think as I think about the categories I think that you know again I think the semi banking is the sweetest right if you just think about moving from retail up right the largest amount of client impact right the highest number right the simplest tasks not that they're simple but the simplest tasks that's where we're gonna see the impact next right the the the further you go up the curve Wow you'll see things I think that we you know very very specific to a point solution for a specific issue I think you dad yeah I just said I mean look Amazon Google everybody's made our lives so much easier everyone is starting to expect that same level of interaction regardless of their role so regardless of whether you're a small business center you're the controller a major corporation you want that interaction you want that ease of use and those personal consumer-led if you will expectations are bleeding and half can finally have bled into commercial and people are just frustrated when they have to rekey information right why does why does applying for a loan or onboarding a new account feel like a root canal right so how do we get past that point to which F to which it's an easy pleasurable experience while I type in my information I click OK and I'm done on some I have to believe on some level getting retail customers to change their behavior migrating things to a phone or whatever it is is a little easier than getting a corporation to change its behavior and its habits ok this one outside of these trends what else should a commercial banker be thinking about against a backdrop I guess a post digital backdrop or or frame it any way you like yeah I mean look I think that a couple things come to mind right so there's a wave of M&A probably coming right so how does that affect my strategy right it also means that how do I make sure that I continue to be a winner in that environment I know I've got you know we talked about you know library we talked about you know Loan Servicing replacement right we know those things are out there keeping those friend of mine is key one thing that I think that is really important through all this is the employee right we talked about the customer but the employee right so your thought you think about change management adoption all those kind of things let's go back to you know I talked about the arms that are hunters right okay if you stand in RMS and say hey you're all hotter than watch a via or you're all you're all farmers and what you be hunters tomorrow live alienated everybody right and I've scared the heck out of them right that's not an approach you can take all right you've got to think about how you were bringing your work for so long not exhausting them with change but driving towards this with them understanding what it's important where the value is right and ultimately how you drive with those employees to that next level because this is about them just as much as anybody else and if you're cutting if your employees aren't on board the program the program is gonna fail anyhow right and ultimately customers aren't gonna be happening so because the the the employees probably every one customer in many respects through all of this this one's a very simple question so you're ready to go how do you get started most I mean look if you back to trend number one if you haven't already started get on with it right you are behind if you've done if you've done the digital foundation right if you if you're whether you're on that path you've completed that that first foundational step now do something with it now it's time to move on now it's time to say how do I take that substantial investment I've made and and start to really reap the benefits that was with the bank just yesterday who has who's it asked me the question and said I've gone through a sales force implementation I've gone through in encino implementation what should I be doing next right and is actually beginning to go down that path very strategically to ask that set of questions that sounds like a no-brainer but that's the only bank that's asking that question that thoughtfully and that strategically right so I think that there is again I go back to the winners and losers are being defined right now as we speak right this Bank is taking a leg up because they're saying we've done these things we're not done with those but we have to put the roadmap together right now to know how all this fits together for our future so I mean I think it's just make sure you're continuously thinking about where you're going not completing and saying you're done it was a great conversation that's all the time we have I want to thank you all for joining us today and thank you to Accenture for making today's program possible I wish you all a great 20 20 thanks for being with us