IBM is an established and trusted partner across the financial sector, what does your position entail?
I am responsible for leading the banking consulting practice across IBM’s Global Business Services, concentrating on the bank’s digital transformation, core banking, and payments.
I am also the President of the IBM Industry Academy, an energetic and diverse community of IBM’s industry experts, thought leaders and consultants aiming to shape new solutions that will support our customers as they navigate to win in a rapidly changing future industry landscape. The Academy offers IBMers the opportunity to work cooperatively and collaborate with industry experts from every part of IBM.
Since my career began almost three decades ago, I have been fortunate enough to work across six different continents in various consulting and leadership roles in the financial services sector. This, combined with my current role and involvement with the IBM Industry Academy, provides me with a unique perspective and overview of the trends affecting other sectors, which helps me think outside the box for our financial services clients.
Are you able to tell us more about your recent appointment to BIAN’s Executive Board and BIAN’s role in the industry?
BIAN is an organisation of institutions and professionals from the financial and technology industries, standing for the Banking Industry Architecture Network. It is a collaborative, not-for-profit eco-system of leading banks, technology providers, consultants, and academics from all over the globe, who are committed to lowering the cost of banking and increasing the speed of innovation adoption in the industry. Members combine their industry expertise to define a revolutionary banking technology framework that standardises and simplifies banking architecture to overcome limitations preventing growth and encourages ease of management in their existing environments.
The invitation to become a member of the BIAN board was an opportunity I could not refuse. I am truly honoured to be part of BIAN’s executive board to offer counsel and support their work in helping financial institutions navigate this period of immense opportunity and disruption. Now, more so than ever before, BIAN’s open framework, services-oriented architecture, and standards model are essential to the financial services industry.
The banks that succeed will be the ones who have a technology and business strategy to support the ‘bank of the future’ in which much of the middle and back office get completely automated and more of the focus, investment and innovation gets applied to customers and customer value-adding functions.
Having worked in the financial services sector for a number of years, what makes you so passionate about the industry?
There are numerous reasons why I am so excited about present and future opportunities across the sector. However, one reason that stands out to me is the impact it has on people's everyday lives.
I am a strong advocate for financial inclusion and make it part of my practice to highlight its importance. Financial well-being and access to financial services should be available to all, no matter where you are in the world. So, I am continuously committed to supporting banks around the globe to expand the availability of banking services and reduce the cost point in doing so.
Financial inclusion is obviously incredibly important. But what measures can global banks take to increase the availability of banking services and reduce the cost point in doing so?
There is still a lot to be done to achieve inclusive banking globally. Although incumbents, FinTechs and TechFins have made massive investments in technology and innovation, there is still scope for more. Globally, billions of people still lack access to basic financial services. Critical areas such as payments - particularly cross border payments - continue to be expensive and access to credit remains a challenge for so many.
The combination of regulatory efforts, banks creating technology and business strategy that supports the bank of the future, and the prioritisation of innovation powered by hybrid cloud and artificial intelligence will inspire the transformation of the entire banking and financial services infrastructure.
Although a great deal more needs to be achieved, it is very encouraging that the combination of technological innovation – coupled with the emergence of new business models – is democratising finance like never before.
What can banks do to prepare for the future?
COVID-19 and changing regulatory environments has driven an evolving landscape which banks and FinTechs are navigating, while the financial services industry is being shaped by new consumer trends – from the rise of a cashless society to the pandemic-driven shift towards online banking and mobile payments.
There will be a continued focus on technological development to accommodate these changes. The banks that succeed will be the ones who have a technology and business strategy to support the ‘bank of the future’ in which much of the middle and back office get completely automated and more of the focus, investment and innovation gets applied to customers and customer value-adding functions. This requires rapid digitisation and the adoption of exponential technologies to innovate, powered by the hybrid cloud and artificial intelligence. BIAN has an essential role in helping banks do just this.
With the move towards digital banking, including the increasing use of mobile contactless payments by customers, what will this mean for the bank of the future?
Digitisation is on the one hand driving innovation, new business models and efficiency while at the same time enabling extreme competition from both traditional and non-traditional competitors. In tomorrow’s banking eco-system model, more and more of the value is accruing from customer-facing functions supported by platform-based business models. By extension, this has meant competition from both FinTech and importantly TechFins (large technology companies that are moving into the less regulated aspects of financial services such as payments, electronic wallets, BNPL – buy now pay later models and more).
Banks in the future will increasingly not only automate extensively, but they will also likely extend their business models to create ‘beyond banking platforms’ to help their customers in a much broader context beyond the traditional banking value chain. The future of such models is being written in Asia by banks such as DBS in Singapore, SBI in India and many more as they change their business models to blunt the onslaught of the ‘super-apps’ such as Alibaba, Tencent, Grab, Gojek etc in that part of the world.
How can the industry find its footing after such a change?
Banks have several natural advantages that come from incumbency, customer loyalty and material regulatory barriers preventing non-traditional competitors from rapidly breaching their businesses. Regardless mastering the future will require banks to ask themselves three questions:
- Is our strategy ambitious enough?
- Are we executing fast enough? and
- Do we have the talent and capabilities to win?
Answering these questions honestly and then putting in place programs to execute relentlessly is the only way for the industry to continue to thrive and take advantage of the huge opportunities that are presenting themselves in the coming decade.
Richard Billington, Chief Technical Officer at Netcall, explores the changes that AI has brought to the business world,.
From the recommendations we receive on Amazon or Netflix to the AI-driven camera software used to improve the photos we take on our smartphones, AI forms parts of the popular services that are used multiple times a day. Even the map and Satnav applications we use rely on AI. Company chatbots are a more well-known use of AI, and can now be found on nearly every company website you visit. In fact, it’s been predicted that 80% of companies will be using chatbots this year.
However, consumers today are getting ever harder to please. The growing ramifications of the ‘Amazon Effect’ means that today’s customers expect instant gratification when liaising with companies – placing more pressure on business leaders to provide more, faster and better. Digital banks such as Monzo and Starling are continuing to build upon these expectations by enabling customers to open accounts in a matter of minutes. And that’s not all: companies are now under pressure to offer 24/7 customer service through a multitude of communications channels, including Twitter, Facebook messenger and other social media.
Furthermore, as millions of individuals are quarantined and isolated amid the current COVID-19 outbreak, never has there been more pressure on customer service teams to facilitate rapid and seamless responses to enquiries on a broad range of issues. In a time of crisis, a customer’s interaction with an organisation can leave a lasting impression, and potentially impact future trust and loyalty – another headache for CEOs, CIOs and CTOs.
Digital banks such as Monzo and Starling are continuing to build upon these expectations by enabling customers to open accounts in a matter of minutes.
AI-enabled systems are increasingly being viewed as the perfect solution for optimising customer service – as it’s extremely beneficial in allowing companies to provide agents that are ‘always on’, as well as hyper-tailored experiences for customers. However, some businesses are yet to harness these technologies – along with their benefits.
The barrier businesses must overcome
For many business leaders, a lack of the right skills in the right place has hampered their ability to implement AI across their company’s customer service function. According to an IBM institute of Business Value study, 120 million workers in the world’s twelve largest economies will need to retrain as a result of AI and intelligent automation.
Other business leaders may face budgetary constraints and can find themselves put off by the significant investment often required when integrating AI systems in their existing IT infrastructure. Misunderstanding surrounding AI can also mean that some CEOs are understandably concerned that the solution they are putting into place may end up being not quite right for their needs. Therefore, concerns over wasted time, money, and other resources often result in a rejection of adopting new technology. However, these concerns will be outweighed by the repercussion stemming from an inability to unlock the true value of this technology – and potentially fall behind in today’s fast-paced market.
Unlocking the benefits of AI
Smaller businesses tend to fall short of the IT foundation and personnel needed to remain up to date with the latest technological advancements in enhancing customer service. But it will ultimately be these investments that enable business leaders to contend with customer demands and flourish in an ever-evolving landscape. Adopting these low-code solutions will enable resource-poor teams to quickly test specific features or workflows without the need for specialised technical skill – enabling employees to innovate and implement significant change, without relying heavily on the IT department.
[ymal]
Low-code is helping companies surpass shortages within multiple digital skills, including AI, by removing the need for highly-trained developers who have traditionally been relied upon to bring new applications to the forefront. In fact, in a recent analyst report, Forrester predicts that savvy application design & development (AD&D) leaders will no longer try and reinvent the wheel and instead will now source algorithms and insight from their platform vendor or its ecosystem. Implementation consultants will now be able to differentiate themselves using AI-driven templates, add-ons and accelerators – particularly industry-specific ones.
With low-code software solutions, everyday business users are able to ensure automated and AI-driven solutions are up and running quickly and easily. Due to the lack of complex coding, the process of integrating AI is instantly simplified, and easily accessible by a range of workers across a variety of business sectors, regardless of size. The ability to test applications before implementation ensures business leaders are able to explore the capabilities of AI without investing valuable time and effort. As a result, they will be empowered to unlock a wave of new possibilities for AI development across a range of functions.
By breaking down walls between IT and other departments within organisations, low-code technology can be utilised to help bring teams together to work collaboratively on applications that rapidly improve processes, by harnessing the knowledge of customer facing wider-business teams. And as COVID-19 continues to cause ramifications for businesses across the globe, business leaders must respond with agility to keep up with increasingly complex customer demands. Speed of implementation and the technology that can help organisations get there is therefore essential when it comes to staying afloat and competitive. And, where many workforces are currently struggling from unprecedented circumstances, the adoption of AI processes through low-code applications can help minimise workloads and free up workers– enabling them to focus on more strategic tasks within the organisation, by automating some of the more mundane processes.
IBM announced a new technology called a crypto anchor verifier; which will allow consumers and businesses to track single object across supply chains. Forbes writer Michael del Castillo explains how this tech could disrupt different industries.
In a ProPublica feature that collected the stories of over 1,400 former IBM employees, it was estimated that a staggering 20,000 American employees ages 40 and over have been eliminated by the company. How does one of the country’s largest tech giants quietly push out this many older workers? Don’t we have laws to protect people at the end of their careers?
In the digital economy, trust is the new currency. Technology is changing the nature of trust – especially for banking and financial services as they strive to provide greater value and protection to customers, and deliver products to market quickly through machine learning, blockchain and pervasive encryption. Explore the rise of "digital trust” and its impact on business in an interview with global trust expert Rachel Botsman and IBM Industry Platform General Manager, Strategy & Market Development Shanker Ramamurthy. Rachel’s “digital trust” theory was named by TIME as one of the “10 Ideas That Will Change the World.”
Earlier this month, Finance Monthly had the privilege of interviewing the CFO of IBM UK & Ireland (UKI) – Vineet Khurana. Here he discusses his role within the organisation, Brexit implications and offers piece of advice to fledging CFOs.
You have been the CFO of IBM UKI for nearly a year now - what is your favourite thing about your role?
My favourite thing about the role has to be the breadth, reach and influence it offers.
I get to work extremely closely with our Chief Executive and the rest of the leadership team (Sales, Operations, HR, IT, RESO, etc.) not only on all financial matters, but also across a spectrum of other business matters that impact our business - both in the short and long term. As an example, I recently led a piece of work, in partnership with the Corporate Strategy team based at the Headquarters in New York, to re-define our Client coverage strategy in the UK.
As a CFO, I am also presented with opportunities to engage externally with Clients and share with them IBM’s point of view and value proposition, as it relates to Enterprise IT. I personally find this aspect of my role very enjoyable.
What would you say have been IBM UK & Ireland's major achievements in the past twelve months? What has been your involvement, in relation to them?
Our key focus over the last year has been to align ourselves here in the UK & Ireland with IBM’s transformation as a Cloud Platform and a Cognitive Solutions company.
This is absolutely key for us in order to fully leverage and benefit from the breadth of the Cloud-based cognitive offerings that are available. Associated with this, my role as the Finance Leader for UK & Ireland has been to ensure that our resources and investments are (a) prioritized and (b) deployed appropriately in support of this initiative. Of course, we’ve also had to make sure that we have a revised set of operational/performance metrics and reporting capabilities in place.
Finally, as mentioned above, the work we led as a Finance team in regards to re-defining and making our Client Coverage strategy more effective is something I am particularly proud of.
What is the best advice you could share with Fledging CFOs and Finance Directors?
With the role of finance constantly expanding and finance increasingly needing to play a central part in all business decisions, I really don’t think there has been a more exciting time to be a finance professional.
Technological advances are disrupting the status-quo. Companies are utilising technology to transform their business and the way they interact with their clients and employees. This is being done while industry convergence is producing new agile rivals at breakneck speed. With all this change afoot, the role of the CFO needs to change as well.
CFOs need to embrace business strategy in addition to the financial strategy, understand the changing market/client needs in addition to regulatory changes, and deliver business insight in conjunction with data reporting and analysis.
Therefore, my advice is to embrace this change, as it is key to ensure your increased effectiveness in the role and your ability to deliver enhanced value at the leadership table.
In light of the recent triggering of Article 50 - what is your outlook for the future of IBM UK Ireland in next twelve months and beyond?
IBM has been operating in the UK for over 100 years and as such it is an important market in the context of our global business. We have always done and continue to make significant investments here in support of our business and economy. As an example, we recently announced the establishment of four new UK cloud data centres, tripling our UK cloud data centre capability.
In summary, we are making sure that we are well-placed to help our clients as they transform their businesses by improving their competitiveness, as they prepare to exploit new opportunities.
What are the implications and challenges of global Brexit uncertainties faced by CFOs?
I think we all recognise that we are facing an extended period of uncertainty during the exit negotiations. So at this early stage of Brexit, the approach of the CFO should be to understand the potential exposures their organisations could face.
I believe two significant uncertainties centre around import/export of goods and data and the free movement of resources across the continent. The magnitude of these uncertainties will obviously vary by sector and individual organisation. CFOs should look at mapping the relative exposure of their organisations to these elements by carrying out the data analytics work now. This analysis will then allow for quicker action and informed business decisions to be taken, once the negotiations are concluded and changes in regulations are clear.
IBM recently announced a blockchain initiative with Dubai Customs, Dubai Trade, advancing Dubai's government blockchain strategy. As part of the initiative, IBM is also working with leading businesses including Emirates NBD, du, Aramex, and Banco Santander.
IBM is collaborating with Dubai Customs, Dubai Trade and its IT provider DUTECH, to explore the use of blockchain for a trade finance and logistics solution for the import and re-export process of goods in and out of Dubai. Using Hyperledger Fabric and IBM Cloud, the blockchain solution transmits shipment data allowing key stakeholders to receive real-time information about the state of goods and the status of the shipment. Taking the example of a shipment of fruit, stakeholders involved in the process will receive timely updates as the fruit is exported from India to Dubai by sea, and then manufactured into juice in Dubai, and then exported as juice from Dubai to Spain by air.
Additionally, as part of the solution, IBM is also working with du, a UAE-based telecommunications service provider that is conveying data from internet of things (IoT); Emirates NBD Bank, the letter of credit issuing bank; Banco Santander, the letter of credit responding bank; Aramex, the freight forwarder; and a leading Airline, as the airway carrier.
This trade finance and logistics blockchain-based solution aims to replace paper-based contracts with smart contracts; leverages Watson IoT for device-reported data to update or validate smart contracts; and integrates all the key trade process stakeholders from the ordering stage, in which the importer obtains a letter of credit from their bank, through the intermediary stages of freight and shipping, and ending with customs and payment.
In February 2016, the Dubai government declared its interest to position itself as a blockchain hub and embrace the technology. As part of this declaration, the Dubai Museum of the Future Foundation established the 'Global Blockchain Council' in which IBM is a member. Further, Dubai plans to execute all its transactions on a blockchain by 2020, as a part of its "Dubai Blockchain Strategy."
"The bank has always had a culture of innovation and several of the bank's most successful products and features can be attributed to this forward-thinking mindset," said Ali Sajwani, Group Chief Information Officer, Emirates NBD Group. "We are excited to participate in the ecosystem on streamlining the trade finance process using the futuristic Blockchain technology, which has the potential of transforming the way we conduct business between heterogeneous entities."
"IBM believes that blockchain will do for transactions what the internet did for information. Dubai is at the forefront of adopting this transformative technology as government agencies and businesses realize the need to have a shared secured ledger that establishes accountability and transparency while streamlining business processes," said Amr Refaat, General Manager, IBM Middle East and Pakistan. "Our collaboration today with leading Dubai organizations across different sectors in trade finance and transportation will showcase how blockchain will revolutionize the way businesses interact with one another and with their customers and suppliers."
A recent blockchain study, Building Trust in Governments, by the IBM Institute for Business Value (IBV), found that several governmental organizations are embracing blockchain technology to promote more extensive collaboration. Nine out of 10 governmental organizations plan to invest in blockchain for use in financial transaction management, asset management, contract management and regulatory compliance by 2018. And seven out of 10 government executives predict blockchain will significantly disrupt the area of contract management, which is often at the intersection of the public and private sector.
In the Middle East and Africa, nine out of 10 government executives surveyed see contract management as the greatest potential new business model. By using blockchains for contract management, issues such as the failure of any party to meet a deadline or complete a task, for example, could be more immediately visible. Transparency derived from contract management on blockchains could improve performance management. Governments will be able to use blockchains to explore new business models for providing services to citizens beyond the limits of current technology. These models can be used to improve the efficiencies of current services, while expanding the ability to provide new services.
IBM is rapidly expanding its blockchain capabilities and actively working with companies to understand what it takes to make blockchain ready for business. Financial services, supply chains, IoT, risk management, digital rights management and healthcare are some of the areas that are poised for dramatic change using blockchain networks.
(Source: IBM)
IBM (NYSE: IBM) Security recently announced it has completed the acquisition of Agile 3 Solutions. The software is used by the C-Suite and senior executives to better visualize, understand and manage risks associated with the protection of sensitive data. IBM Security had previously announced it had entered into a definitive agreement to acquire Agile 3 Solutions. Financial terms were not disclosed.
The company, now known as Agile 3 Solutions, an IBM Company, joins the IBM Security business unit and will be part of the IBM Data Security Services portfolio of offerings. The acquisition also builds on the growth of IBM's end-to-end Guardium data security and protection platform, which helps to analyze the risk associated with sensitive data, monitor and protect sensitive data at rest, and in motion.
Agile 3 Solutions marks the 20th security-related company IBM has acquired as part of a series of investments to deepen its expertise as one of the world's largest enterprise security companies. IBM Security has hired approximately 1,900 security experts since 2015, and has invested in innovative new programs to help the industry collaborate to battle cybercrime, including IBM's X-Force Exchange and the IBM Security App Exchange. IBM has also closed the acquisition of Ravy Technologies, a subcontractor to Agile 3.
(Source: IBM Security)
