Namics at Banking Club in Frankfurt. 2018.

The speakers examined the topic of digital transformation from various perspectives.

The Banking Club met on 10 April 2018 in Frankfurt on the topic of "Digital Transformation". A buzzword that is on everyone's lips and is to be broken down more precisely during the event. The topic will be presented in a series at different locations, with the speakers varying in each case. Munich and Cologne have already been venues, Berlin will follow. The participants are a colourful mix of banks, insurers, service providers and tool vendors. In addition to frontal presentations in the morning in various formats (e.g. Pecha Kucha), all participants are challenged in the afternoon to deepen their knowledge of topics in groups in the format of the World Café. As a member of the Banking Club, Namics was present. Below are some impressions of the event with some additions by myself.

Introduction by Thorsten Hahn, Managing Director of the Banking Club

After an explanation of the buzzword "digital transformation", he makes a statement that the banking industry is not moving enough, why?

  • For example Postbank with a screenshot that is 27 years old. In terms of functions, it is basically the same as today. Where is the real innovation?
  • Meanwhile, other players are taking over: Paypal, for example. First only online payments, today one of the central players and now even offers credit cards.
  • The environment is becoming more difficult with continuously falling interest rates and there is no outlook for a sustained increase.
  • Meanwhile, a certain disillusionment can be observed at Fintechs, they are more likely to go on a cuddle course instead of disruption. So partnerships are in the foreground instead of the original replacement.
  • The question remains: When is the big platform coming? (Analogy to Airbnb in the travel market). Will Amazon, for example, offer accounts and insurance itself in the future and even launch its own flagship financial advice centres?
  • The customer was still forgotten for him in recent years. Displaying an account balance is simply not enough in the future. In reality, banks are still a long way from the "omni-channeling" that was preached some time ago. For example, even today, the customer advisor does not know what mail I actually receive as a customer.

Moneyou / TIKKIE – Digital Pioneer Banking

  • As a 100% daughter of ABN Amro they already had a Digital Only Onboarding in 2011.
  • In 2016 they were allowed to perform as Retail Challenger for their mother ABN Amro.
  • Only 75 FTE with 500k customers. The majority is provided by external service providers.
  • They offer only 5 products. Among them e.g. consumer credits in cooperation with the SolarisBank.
  • The underlying philosophy: The customer can make his financial decisions himself.
  • The complete range of products is built on this philosophy.
  • The opinion after many customer surveys: "There is no such thing as a killer feature in online banking". It is rather the interaction of the entire offer that must create a good user experience.
  • Presentation of TIKKIE - "the" P2P-Payments App from Holland (2.5 million downloads):
  1. 60% of people forget to pay back money that was "borrowed".
  2. IBANs are complicated.
  3. Since introduction of the app: 80% pay within the same day.
  4. Internal challenge: Bring the app to Germany after 100 calendar days.
  5. Done :) see Apple Store

Pitney Bowes – Engage One, Interactive Videos

  • Introduction of the Customer Engagement Hub.
  • Complete inbound and outbound management.
  • Highlight: Interactive videos in which the customer can control the process and thus receive tailor-made content.

Commerzbank – Multi-channel platform ONE

  • Introduction of a single platform that resolves previous 1:N relationships to individual systems.
  • After mobile and e-banking, more and more areas were connected to it, such as the branches.
  • Effects: Speed, synergy effects through common interfaces, only one frontend instead of four, less effort today (e.g. regulatory issues).
  • The platform already exists today, e.g. used for online legitimation.
  • The idea behind the platform is modularity: a module used in one process can also be made available for others, e.g. a Regulatory Check.
  • One problem remains: The more projects start in parallel, the more insufficiently they are aligned with each other.
  • What's next: Connecting other systems such as the CRM or API management platform.
  • Commerzbank Campus UX-Studio: Prototypes are quickly tested by a central team within the company. The team takes over all aspects of the test and organizes the appropriate form, e.g. one via a focus group.
Vortrag zum thema digitale Transformation beim banking Club
Source: Namics

Clark - The Online Insurance Broker

  • "Insurance today is pain to consumers: Only 33% rate their experience positive and 85% of the experience is offline."
  • Clark wants to change that: Clark receives a brokerage mandate from the customer, the customer then deposits all his insurance policies.
  • "Insurance fitness" assessment of the customer is given.
  • Subdivision into 3 different categories: health, property and housing, retirement planning.
  • In the background a Robo Advisory Engine, which is continuously fed with small algorithms. No AI or machine learning, but fixed programmed tests. In the end a rule based engine, e.g. if the customer wants to have an insurance for a sailing boat with more than 25sqm, it still runs to the consultant.
  • Customer base has increased 60-fold since the start.
  • Various cooperations with e.g. INGDiba, DKB or N26. These can be marketing cooperations, full service integrations up to white labeling.
Vortragsreihe "digitale Transformation"  an der Finance 2.0 in Frankfurt
Source: Namics

Capital Pioneers – Digitisation of the distribution of material assets

  • Offer digital tools for the distribution of tangible asset investments.
  • Tangible asset investments offer higher performance, but are currently only considered by a few people.
  • It is a B2B2C solution: an online platform for retail sales.
  • Risk-mixed products do not have a limit in terms of minimum investment amount (unlike non-risk mixed products).
  • The challenge today lies in the issuing of emission certificates: For small-scale products, many more have to be issued.
Vortrag der Capital Pioneers beim Banking Club in frankfurt
Source: Namics

Creditshelf – Platform thinking in the financial sector

  • Creditshelf is all about SME financing, which is a pure B2B business.

Is the house bank a dying model?

  • Certain topics cannot be handled by a bank today, and many loans are therefore not discussed.
  • Through partnerships, topics can be dealt with more broadly and more profoundly in the bank, e.g. a special loan, which the bank itself would not discuss due to lack of expertise.
  • This is the starting point for Creditshelf.

Bundesanzeiger Verlag – Digital Driven Opportunity

  • "The Bundesanzeiger is in principle a RegTech company".
  • Bundesanzeiger is not a federal company, but a technical service provider.
  • Company register, transparency register, etc. are all completely digitally maintained by it.
  • For example, business register: The Bundesanzeiger offers an interface to all commercial registers.
  • Since the new money laundering law, a KYC process must now be carried out in many other areas. For example, casino or car purchase.
  • In this area, however, the manual work means that a lot of resources are required and therefore high costs. The Bundesanzeiger offers the database of companies and officials as a service to provide companies with a confirmation according to public belief.

Bankomo – Mobile Banking for everyone

  • Bankomo is a solution developed by ReiseBank in cooperation with Wirecard.
  • The target group primarily comprises refugees or other persons who today either pay high fees for transfers or even do not receive an account.
  • 1,000 customers are currently using the new App.
  • In addition to German and English, Spanish and Turkish are available as languages, for example.

Avoka – How do I address digital customers? The first Pecha Kucha

For all those who don't know Pecha Kucha: 20 slides of 20s each (so exactly 6:40min) are presented, preferably without pictures.

Here are a few core statements:

  • No "one size fits all" - every customer is different.
  • Think from the customer's point of view in finding a solution and not from the bank's.
  • Simplicity: Don't put off customers with complicated requirements.
  • Synchronize offline with online.
  • Secure financing not only until go-live, but also beyond.
  • Put "Apply" on your home page.

Appian – Digital transformation: in your own way

  • Business vs. IT: This should not be the question, it is about cooperation.
  • 80% of IT resources are used for maintenance. So when does innovation happen?
  • The digital transformation is confusing and there is not the "one" way.
  • Every company has to find the path that suits it, because circumstances and the challenges involved vary.
  • Flexibility and speed are two important qualities that are needed today to be successful.