How To Sign Hawaii Banking Presentation

How to industry sign banking hawaii presentation secure

hello everyone and welcome to our next FinTech hot seat on the next generation of banking services my name is Kevin peek with certainty treasurer I'm here today with Robert Mancini from vanastra welcome Robert thank you so first off tell me about you and tell me about finestra yeah absolutely so finestra is the third-largest FinTech people don't necessarily recognize finestra right away you know they came together last year in last June it's several organizations fun tech mices dnh who came together to form finestra but finestra offers a broad range of financial services that basically 80 or 90% of what a bank needs to run so we have a customer base of about 9,000 and over banks we have a global team of over 10,000 people and yeah we we have a lot of new technology that we've rolled out in the last year focuses on payments and I know the one things we've been talking about is the the AP what you call the API economy what tell me what you mean by API economy yeah absolutely so when you look at API so API economy when you look at software solutions independently so whether you're looking at it from applications API economy is the ability to interface those in a common language so that they can work together and drive a different transaction or a different result for customers in their experience if you take finestra for example you know we've migrated from a product organization to a solution to a platform so product is pretty straightforward it's basically you know customer coming to you with requirements and saying here's what I need and you develop a product and you offer to them solution is really taking a set of products bring them together and offering it to the client now the big jump is when you get the platform because when you get the platform and you have a common platform it's not just about your ecosystem but it's about the broader ecosystem from a customer perspective it's not just the one to one relation it's not just between the bank and the vendor but now it's one-to-many it's between the bank the vendor and the garage broader ecosystem excellent so so how is the API economy how is this philosophy this platform concept how is that impacting banks and how they're thinking and how they're behaving and and how they're reacting yeah that's a good question so so banks you know I mean they're facing a lot of new hurdles when it comes to competitive threats when it comes to regulatory when it comes to just new technology in general and consumers you know have led a new expectation which is migrated over to even commercial expectations so customers in general from banks across the different segments have a different expectation of what they want as a service so it's really changing the way that banks are delivering those services to their clients so so that's the major major impact in terms of what it's having on financial institutions got it so so if I'm a banker and I and I'm sort of thinking about this platform concept and the API economy how does that how does that translate into what I do with my customers and how I can how I can benefit my customers yeah absolutely so I think the best way to look at it actually is to look at other industries so if you look at what's happened to Blockbuster and Netflix for example you've seen the way that you know that that went and you look at even what's happening today with Amazon and other major retailers and there's a lot of pressures going on so some have not survived that some such as Walmart have taken other approaches as investing in digital so I think you know what we've what we've seen in other sectors is going to or is even translating into what what you see in banking today and and there are examples of that as well and and even some of the transformation is not direct today its indirect but it like for example you look at Amazon and their new stores and the way they're doing their checkout process at the us customers are going in with a phone with a phone they're taking a picture of their products they're walking out there's no more cash register so that's having a significant impact one of the things that we hear from from customers all the time is this idea of digital and things were moving digital and the transformation digital and what is that how does the API economy and this platform again I just think keeping about this platform is this bundle of products and services and solutions and thinking about that how does that how does that and the API economy sort of impact or how do customers think about that in this in in the age of the digital transformation yeah well I think in general customers associate digital transformation to mobile but in my view I think it's much greater than that it's it's not just about the mobile experience that a customer has it's it's about the entire journey so as you look at the way that banks would go out to customers and the way they sell the way they identify what they need in a more consultative process right or the way that they onboard their customers in a more frictionless process or the way that they process the way that they service them whether it's self servicing or just better servicing intuitive servicing leveraging new technologies such as AI and for example that's how I view digital transformation an example would be so we have with IBM Watson developed a solution for a client where and it relates to loans where the loan document comes in and it's a massive document and the AI artificial intelligence can go through it pick out the information it needs compared to our back-end system and then basically create a straight-through process so something that used to be highly manual so error-prone very time-consuming double and triple checks and so on and so forth that's now a straight-through process there's many other examples and trade and payments and across the value chain right all the way from the selling to the servicing to managing those relationships so that banks can make sure that the customer experience is superior as they look at you know competing in this disruptive environment so we talked about a little bit earlier but one of the things that I think is you mentioned sort of the banks are being pressured there's a lot of competitive pressures among the banks and I think one of the biggest pressures that that the banks are seeing is the the FinTech space pressuring them and is he think about corporates and novice is a conference for a lot of corporate professionals treasurer professionals and they used to be thinking about what my bank offers is my bank offers this and I think we're seeing more and more fintechs offering services that compete with banks just interests in your philosophy on that and thinking about that and is that is that the reality or is a reality more fintechs supporting banks as you know sort of the customer base yeah in my view it's really a collaboration so you know the banks and fintechs have two different sides of the equations so fintechs are very innovative they provide very narrow solutions in many cases in terms of specific areas but they don't have the scale they don't necessarily you know depending on their size they don't necessarily have the controls and and you know and operating in an environment such as the financial industry and in regulation so on and so forth and they also don't have access to the customers which is key that's the biggest ones big and the banks on the other hand you know does this avalanche and change in technology in this introduction of new technology is like drinking through a firehose they can't handle it they're not equipped for it they're not staffed for it it's just too big that you know they they need help so if they want to compete effectively they need to basically create a an environment where they can collaborate and this is why you know my philosophy is open banking API is kind of key because it allows the bank to have an environment where it's again one too many so now it's no longer just the the software vendor that's providing or the bank but now the bank can innovate on top of that platform competitors or other software providers can can also innovate as well and Powe exists in that ecosystem you can expand it to partners as you look the solution integrators like the Deloitte's and the Accenture is you know all the different ones out there I won't name them all and and then there's you know even you want to go take it even a step further you could even go out to the broader community like universities for example and they could Co innovate and you know Co develop and collaborate in this in this area so I think that's the key is banks and fintechs need to collaborate in order to innovate that would be the tagline yeah it's interesting so last question for you for today so if you had to look into a sort of crystal ball and I'm not asking if you're a you know witch or you know magician or something but if you think about that is there something you see you know in the next year or so that you say yeah I mean I would expect to see something not necessarily massively transformative but things that you're working on you say you know what I can picture a year or two down the road things looking different in something particularly you guys are working on yeah I mean there's there's actually a lot of stuff going on and a lot of it is not really apparent to the marketplace because I'm asking the question yeah because what's happening and when I say not apparent is it's not being hidden from from from the marketplace it's just simply that it addresses with operational efficiencies and risk mitigation and other areas that you know I mean you got to keep in mind you know banks primary focus is to make sure they remain compliant make sure that they adhere to regulatory so leveraging technology to create straight through processes eliminating manual processes and and and providing this robustness helps them keep their their efficiency ratios lower a better quality lowers our risk so I think as you look at the next year it might not be readily apparent what's going on but there's a lot going on I think some of the things that you know most people might be thinking about well when is the big revolution and I think it's gonna be an evolution I think it's going to take time and I think the the components that are going to be readily visible to the marketplace might be one or two years down the line versus some of the other things going on right now at the moment and has been in the last year awesome I appreciate your time today thanks Robert all right