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Fintech 2017 Edinburgh (Day 1)

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This Summit explored technological innovation across the financial services sector, from developments in established tier-1 firms to the disruptive innovators within the start-up community that are reshaping the FS market. The summit was geared for senior technologists, business leaders, innovators and investors, and will bring these key stakeholders together for knowledge exchange, discussion and cross-pollination.

Core conference topics included:

• Landscape: Social, Geo-political & Financial
• Regulation: GDPR, PSD2, Open Banking & APIs
• Customer Strategy: UX, Data Insight, Marketing & ML
• Emerging Tech: Blockchain, Analytics, AI & Payments
• National Strategy: Skills, Funding, Collaboration & Cyber Security
• Infrastructure: IT, Digital, Cloud & Mobile

Published in: Technology

Fintech 2017 Edinburgh (Day 1)

  1. 1. Welcome To Fintech 2017 27th & 28th Sept Our Dynamic Earth
  2. 2. Mark Stephen BBC Scotland @bbcscotland #finscot
  3. 3. Ray Bugg DIGIT @digitfyi #finscot
  4. 4. www.digit.fyi 30,000 Monthly Page Views 20,000 Unique Visitors Monthly News, Views, Opinion, Insight
  5. 5. Our Next Event – 7th Dec
  6. 6. David Ferguson Nucleus Financial & HMT Fintech Envoy @david_ferguson #finscot
  7. 7. Julian Sawyer Starling Bank @julian_sawyer #finscot
  8. 8. Starling Bank at FinTech 2017 Julian Sawyer
  9. 9. Until now people haven’t experienced the same technical innovation from banks that they have benefited from everywhere else in their lives
  10. 10. Starling Bank • Tech start-up with a banking licence • 100% cloud based, Mobile only • MasterCard debit card • Faster Payments & Direct Debits • Spending Insights & Card Control • Developer platform & Marketplace • Starling Payment Services
  11. 11. Starling Marketplace – our eco-system What makes the Marketplace business model attractive? • Typically demonstrates network effects • Enhances offering • Minimal constraints on growth • Often very capital efficient • Creates new customer acquisition channels
  12. 12. confidential Starling Payment Services • Starling Payment Services offers connectivity & sponsorship to all the main payment schemes • Starling Payment Services is focused on being open, secure and connected. • Our open API provides real-time access to payments. Central Banking Infrastructure Starling Bank Client A Client B Client C Real-time Payments via Starling’s API
  13. 13. Starling Bank Julian Sawyer @julian_sawyer www.starlingbank.com @starlingbank
  14. 14. Mary Harper Standard Life Aberdeen @mbamaung #finscot
  15. 15. Customer driven innovation Designing propositions that work for your target audience @mbamaung
  16. 16. Hello… 20 10 4 17 1
  17. 17. Women in leadership are good for business… Improvement in business results What do these organisations all have in common…
  18. 18. Women in leadership are good for business… Improvement in business results What do many failed start-ups (businesses) have in common…
  19. 19. Women in leadership are good for business… Improvement in business results The challenge is exacerbated for FinTechs…
  20. 20. Women in leadership are good for business… Improvement in business results The customer journey is often complex…
  21. 21. Women in leadership are good for business… Improvement in business results The industry is highly regulated…
  22. 22. Women in leadership are good for business… Improvement in business results Competition is fierce…
  23. 23. Women in leadership are good for business… Improvement in business results Diversity isn’t where it needs to be… And that matters…
  24. 24. Women in leadership are good for business… Improvement in business results Acquiring, keeping and monetising customers is expensive…
  25. 25. Women in leadership are good for business… Improvement in business results And customers are blocking your attempts to engage…
  26. 26. Women in leadership are good for business… Improvement in business results It’s never been harder to get to your customers, or to hold their attention in an affordable, scalable way
  27. 27. Women in leadership are good for business…Customers still need your help and this is a problem worth solving…
  28. 28. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving…
  29. 29. It starts with the customer…
  30. 30. And making sure you’re organised to respond to their needs
  31. 31. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving… Outcomes, not outputs… Agile ≠ ‘delivering stuff fast’ MVP ≠ MRC
  32. 32. Women in leadership are good for business… Improvement in business results
  33. 33. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving… Be where your customers are for maximum impact…
  34. 34. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving… Conscious testing and learning…
  35. 35. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving… Use your FinTech network…
  36. 36. Women in leadership are good for business… Improvement in business results But they still need your help, which is a problem worth solving… A few useful questions… • Where is the voice of the customer in your organisation? • Are you set up to respond to their needs? • Are you delivering stuff, or are you delivering value? • Are you where your customers are? • Is no test better than a bad test? • Who is in your extended tribe?
  37. 37. Thank you @mbamaung
  38. 38. Questions & Discussion
  39. 39. Refreshments & Networking Please check rear of badges for breakouts
  40. 40. Rory Gray UIPath @uipath #finscot
  41. 41. Robotic Process Automation in the FS market Benefit or Hype? Rory Gray - Northern Europe Franck Lopez – Financial Services
  42. 42. Automation
  43. 43. 62Slide Discussion preview* North America FI automation is growing quickly- stated differently, the majority of the market are installing RPA solutions Today, 60% CAGR in North America FIs … And realizing large value We’ll share real life McKinsey&Company, EY, Accenture etc examples showing: 25-50% cost reductions 60-70% reduction in human tasks 120 FTEs taken out of a function etc * These concepts/facts will be detailed/attributed later Automation opportunity still abounds, even in banks that believe they are highly automated McKinsey estimates FIs have the technical potential to automate 43% of their workers’ time & reduce processing times 50-60%
  44. 44. 63Slide Automation will change the way we work.. “Automation is expected to replace 25-50% of F&A FTEs in the next two to five years, with more to come as new automations develop. More than 60% of invoice processing functions can be replaced. Approximately 70-80% of month-end processing is consumed by variation explanation, a significant part of which can be automated” Everest Group “Finance of the Future” 2017 "I think it's possible to get to the point in the next 5 to 10 years where we have computer systems that are better than people at each of those things [human senses].” Mark Zuckerberg, CEO “In the future, every decision that mankind makes is going to be informed by a cognitive system, and our lives will be better for it” Ginni Rometty, CEO Tech players “Artificial intelligence will disrupt businesses and industries on a global scale, and we see this shift going well beyond machine learning in isolation.” Pierre Nanterme, CEO “Advanced technologies such as Artificial Intelligence will fundamentally change the definition of work” NV Tyagarajan, CEO Service players “This poses two challenges for employers […]: how to help existing workers acquire new skills; and how to prepare future generations for a workplace stuffed full of AI.” “AI could someday not only assist businesses in doing their jobs more efficiently, but also bring a more human touch back to customer service.” News
  45. 45. 64Slide … isn’t quite reality: Today’s environment: Automation has yielded large gains, but reality lags perception re: how automated existing systems are Employees= “Value was indeed realized- & large … but even these highly automated systems still have many manual interjections Emails- queries, changes Paper forms Validations Manual additional input Responses to customers Not-yet-automated workarounds etc FI executives= “We have an integrated major-process software system- seamlessly pulling from many platforms- everything is automated Our migration from yesterday’s discrete systems, requiring manual entry & handoffs, yielded us large savings, big reductions in response times & an order of magnitude reduction in errors” “End to End System” “End to End System” Perceptionof today’s automation… ! Slick & clean
  46. 46. 65Slide Banks are capturing material value with RPA… “One large FI used RPA to automate 60-70% of tasks & created annual run-rate efficiencies of 30%+ Another FI achieved 80% reduction in processing Another FT500 used robotics to save 120+ FTE” 25-40% “… reduces banks’ existing manual operations costs 25-40% without changing existing systems … yet improves service & has <1 year payback” 60-80% 4Q2016 &1Q2017 “…a 50% FTE reduction” RPA, Future Technology in Financial Services50% “…16 case studies we undertook had a first year ROI between - Leslie Willcocks, professor of technology, work, & globalization 30-200%”
  47. 47. 66Slide … which is a virtuous loop that is propelling RPA’s growth- particularly in the North American financial industry RPA is in its infancy, but growing fast 40% North America FCSTed share of 2024 total ($3.5B) Source: Oct 2016 27% Our largest market= EMEA Today 2024 $8.8B $.3B 60% CAGR Worldwide RPA spend Financials are expected to be 27% of the total North American spend Net= FIs are FCSTed to spend $1B annually in RPA by 2024
  48. 48. 67Slide McKinsey&Company provides a compelling case for FIs to implement RPA June 2016 July 2016 Financial Services automation potential McKinsey estimates FIs have the technical potential to automate 43% of today’s workers’ time & reduce processing times 50-60% How employees spend their time (& the % of their total time)… … & the degree to which that time can be automated Grey lines are the average of all industries * * ie FI employees spend 22% of their time on predictable physical work- of which 54% could be automated
  49. 49. 68Slide Kinetic Consulting provide a view of the Process Types ripe for Automation via RPA • Finance & Banking • New account verification • Data validation • Customer account management • Financial claims processing • Report creation • Form filling • Change of address • Loan application processing • Insurance • Claims processing • New account creation
  50. 50. Use Cases Finance & Banking
  51. 51. 70Slide / THE BENEFITS • Degree of robotization: 100% of effort automated • ROI: 3 months • Error rate reduced to 0% • Manual effort reduction to 5% • Faster processing time – reduction of 85% • Faster response time for customer queries THE CHALLENGE The accounting provider needed to automate a back office process with a volume of 50 transactions per day, every day, with an AHT of 10 minutes per transaction. One department handled the process using Excel, Datev and SAP on desktop. The information used in the process was structured and the rules and decisions were pre-determined. THE SOLUTION The UiPath robot handled the process by exporting the accounts’ statements from Datev to the SAP system. CUSTOMER: Accounting provider, Germany IMPLEMENTATION TIME: within 3 weeks PR013 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other Process: Export and import from statements of account
  52. 52. 71Slide / THE BENEFITS • Degree of robotization: 75% of effort automated • ROI: 5 months • Error rate reduced to 0% • Manual effort reduction to 25% • Faster processing time – reduction of 65% • More standardization • High quality improvement to 0% error rate THE CHALLENGE The customer needed to automate a back office process with a frequency of 10 transactions per month per customer every month, with an AHT of 30 minutes per transaction. There were 3 departments involved using 5 applications on desktop. The information was structured and the rules and decisions were pre-determined. The process required reengineering the workflow, and exceptions often occurred. THE SOLUTION The UiPath robot created a process that included salary accounting, importing and exporting data between Datev and SAP and checking that the different bookings were the same in both accounting systems. CUSTOMER: Accounting provider, Germany IMPLEMENTATION TIME: within 6 weeks PR014 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other Process: End-of-month accounting
  53. 53. 72Slide / THE BENEFITS • Degree of robotization: 90% of effort automated • ROI: 2 months • Error rate reduced to 0% • Manual effort reduction to 0% • Faster processing time – reduction of 70% • Faster response rate to internal customers THE CHALLENGE The customer needed to automate a back office process with a volume of 200 data records per day, with an AHT of 10 seconds per data record. Two departments were involved in handling this process, using 3 applications on both desktop and web. The information was structured, with pre-determined rules and conditions. The process had 10% of exceptions. THE SOLUTION The UiPath robot extracted and compared data records from a web portal and a desktop application and created an Excel file containing the collected data. CUSTOMER: Bank, Switzerland IMPLEMENTATION TIME: within 4 weeks PR017 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other Process: ATM data exchange
  54. 54. 73Slide / THE BENEFITS • Degree of robotization: 100% of effort automated • ROI: 3 months • Cost reduction by 70% • Error rate reduced to 0% • Manual effort reduction to 5% • Faster processing time – reduction of 75% THE CHALLENGE The bank had to automate a back office process with a volume of 500 events per month, with an AHT of 300 seconds per account. Three departments were involved in handling the process, using 2 applications on both desktop and web. The information was structured, with rules and decisions based on existing or new customers, length of mortgage, credit ratings, etc. The process had 5% of exceptions. THE SOLUTION The UiPath robot handled the automation of the interface between the credit information web portal and the core banking system of the bank. CUSTOMER: Bank, Germany IMPLEMENTATION TIME: within 4 weeks PR018 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other Process: Creation of bank accounts for mortgage customers
  55. 55. 74Slide / THE BENEFITS • High automation efficiency with 0 error rates • Improved processing quality • Average handling time (AHT) reduced from 40 minutes to 3 minutes • Expected effort benefit of 444 hours per year THE CHALLENGE The customer needed to automate this process because it involved significant manual processing, high-propensity to errors & high cost of operation. The specific challenge lay in identifying unmatched and pending trades with the Counter-Party and Custody for various geographical regions. The process required heavy investigation and coordination with multiple units over e-mail. THE SOLUTION Once the information was received by e-mail, it was instantly downloaded. The UiPath Robot automatically performed validation. It searched for trade details, identified unmatched and pending trades, and updated the transaction numbers and counterparty details in a spreadsheet. It then sent out an e-mail to the Custody and Counter-Party with the update. PC001 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other Process: Trade settlement CUSTOMER: Leading global investment bank
  56. 56. 75Slide / THE BENEFITS • 0 errors • ROI within less than 12 months • 0% exceptions during automation • RPA handles both the transaction and the new control and audit trail • Implementation within 3 months THE CHALLENGE The customer needed to automate a 100% manual process in the Retail Payment department. The employee received an email from the branch client with the transaction LAB/FT reference in an attached PDF and the validation or invalidation of the international payment. The transaction reference and the amount were retrieved from the PDF document and typed in the LAB/FT system and in the payment system for the corresponding operation reference number to release the payment. THE SOLUTION The UiPath robot automated the process entirely. It read the mail, transferred the mail in the specific folders, opened and read the attached PDF file with an OCR technology that extracted the transaction amount and reference number. The process had an improved audit trail improvement and the SLA constraints were respected. Process: Customer transactions LAB/FT validation & payment CUSTOMER: Corporate and investment bank, France CN001 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other
  57. 57. 76Slide / THE BENEFITS • Time spent on requests dropped from 45 minutes to 20 minutes, eliminating human involvement • The robot allowed SLAs to be brought back to acceptable levels with the same resources • 1 hour was automated to 5 minutes (with 95% automation) • No exceptions THE CHALLENGE The bank had an insufficient number of resources allocated, which was weighing heavily on the staff, generating big inefficiencies. THE SOLUTION The UiPath Robot accessed up to 15 applications, both internal and external. It checked several internal and external databases for potential clues of any suspicious activity for the bank’s client and posted this information in a report for a human fraud prevention analyst. Process: Fraud detection CUSTOMER: Global retail bank, Europe CP001 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other
  58. 58. 77Slide / THE BENEFITS • 100% automation accuracy • 200% productivity gain • 12/38 FTE savings • 60% AHT (reference data) savings after automation • 75% AHT (pricing) savings after automation THE CHALLENGE The client needed to automate an operation in the reference data set up and pricing area to remove manual efforts and increase efficiency, productivity while reducing processing errors. The operation was volume-intensive and critical to the downstream process. THE SOLUTION The implementation partner set up 4 UiPath robots in a solution where the custodian requests were picked up automatically from the input queue and processed by validating ISIN with different financial service providers. The timely activity for pricing, like morning, afternoon and evening, was scheduled and processed accordingly. The activity for Corporate action, including daily dividend processing, Paydate check, Retro Corporate actions and retro dividend were fully automated. Process: Reference data, pricing & corporate actions PT001 Supply Chain Sales/Front Office F&A/ Procurement HR Real Estate IT Tax, Compliance Other CUSTOMER: Global financial services company
  59. 59. 78Slide An overwhelming slide meant to convey a simple point: According to Argon Consulting, automation opportunity still abounds aplenty Argon Consulting’s assessment of RPA opportunity in just Finance & Accounting Independent experts, such as Argon Consulting, find RPA value in ¾ of Finance & Accounting processes… ... And ½ had material potential None 13% Low 38% Medium 33% High 16% Everest Group (Prior page) Source to request Request to order Order to reception Invoice to payment Fixed assets Inventory Payroll accounting Bank accounting Inter company General accounting Financial analysis, reporting & compliance Financial planning Opportunity to bid Award to contract Deliver to invoice Invoice to cash Vendor sourcing Need qualification Goods & services reception Invoice processing Manual capitalization Manual capitalization Payroll review 3rd party payments- wire transfers AR billing Master Data Mgmt Post close reporting Revenue budget prep Opportunity notification Pricing review Sales order processing Invoicing products Vender master data mgmt Purchase request creation System capitalization 3 way watch Internal manufacturing Internal manufacturing Payroll validation/correction 3rd party payments- direct debit AP booking Subledger close Post close financial analysis Revenue budget review Opportunity confirmation T&C review Initiate job order Invoicing- Services Catalogue mgmt PO creation Open PO & received not invoiced Non PO invoice validation Maintenance Transfer Payroll related accruals 3rd party payments- checks AP settlement System generated allocations Balance sheet notes P&L budget prep Customer review & credit assessment Revenue recognition update Manage job order Credit notes Vendor performance review PO approval Expense report processing Transfer Usage 3rd party payments- cash Cash applications Revenue review Internal control checklists P&L budget review Tender evaluation (RFQ) Contract prep- Standard Organize delivery Cash applications- Standard PO issuance P-card processing Disposal Disposal Bank account admin AR confirmation & reporting Journal vouchers- Revenue or AP accruals Construction package, prep & upload P&L budget submission Technical response determination Contract prep- Ad hoc Manage delivery Cash applications- Cash & missing information Order acknowledgement Authorize cash disbursement Physical counts Inventory depreciation Bank reconciliation prep AP reconciliation, confirmation & reporting Journal vouchers- Provisions Consolidation package corrections Revenue re-forecast Business case modeling Contract signature Obtain delivery note sign off Strategic dunning & follow up Depreciation & amortization Misc supplies review Bank reconciliation clearance Advances, recs & confirmation Journal vouchers- Tax provisions GAAP adjustments, eliminations, & other top entries P&L re-forecast Revenue recognition determination Price list mgmt Revenue accrual No strategic dunning & follow up Impairment tests & provisioning Physical counts Bank guarantee issuance Journal vouchers- Manual allocations Technical & commercial response validation Contract mid term review Revenue accrual- Information based Bad debt provision & write offs Performance review (utilization, output etc) Reconciliation & adjustment Tracking of bank guarantees Journal vouchers- Reclasses & recharges Response to tender Other accruals Fixed asset reporting Inventory analysis & reporting Reconciliations/ verifications of bank guarantees Journal vouchers- Others Customer master data mgmt Investment request validation Verification of BG charges P&L prep FA master data mgmt Facility mgmt P&L review Petty cash admin Month end close monitoring Source to Pay Record to report Opportunity to cash
  60. 60. 79Slide Onboarding & activity Loan application Underwriting Approvals & commitment Loan closing Loan closing (cont) Accounts are created Reporting Annual reviews Client needs discussion Credit analyst collect client financials RM presents loan at Committee Bank collects signed Commitment Letter Analyst build Close Checklist Branch works with client to open DDA as necessary Loan review reviews docs & system data to ensure compliance Analyst follows up w/client to collect fins covenant certs etc RM discusses w/mgmt to gauge interest & gets quick go/no go Credit analyst interviews client to build Credit Memo Revises structure, terms etc as necessary Analyst orders appraisal & reviews Analyst works with client to collect Close items Loan is created on Loan system Industry concentration/risk etc reporting pulled Credit analyst writes up Annual Review Builds & provides Term Sheet to client Spreads financials Credit analyst collects additional customer info/docs as necessary Analyst orders titles/liens & reviews Lawyers & RM build loan documents Funds are disbursed to client's DDA RM presents Annual Review at Committee RM secures client agreement to proceed w/underwriting Analyzes repayment ability RM collects bank approval signatures Analyst orders environmentals & reviews Analyst works with lawyers, client, RM to schedule Close Other associated accounts are created on systems Creates structure & terms Credit analyst creates commitment letter Analyst retrieves flood assessment & reviews Close occurs- docs signed Analyst performs industry analysis RM reviews commitment letter & delivers to customer Calculates existing relationship profitability (inc related accounts) Analyst builds Credit Memo Loan creation Monitoring Deconstructing the prior page: Commercial Loan Origination detailed illustrative example Assumes a bank w/decently efficient processes & generally end- to-end systems. Experiences will vary This high cost function was selected because it would not naturally come to mind as automation-friendly because of its skilled & non-repetitive nature If this type of function has material automation potentiality, think of the value in the bank’s repetitive processes RPA potential HIGH MEDIUM LOW NONE Note how much time Commercial Bankers spend on low value/admin
  61. 61. 80Slide A few examples of how it is possible to automate the Loan Origination process: Automation Extraction Aggregation Responding Cuts & pastes information to create credit memos Extracts data from emails to pre-populate docs Pulls related account info from various systems to calculate broader relationship profitability Sends reminders to customer re: annual review & covenant information needs Orders liens, flood certs, environmentals etc Extracts numbers in financials to spread statements Speeds industry analysis for Credit Memos Provides updates to customer on origination status Automates securing credit approvals Determines schedule availability from emails Collects information from many sources to speed Term Sheet & Credit Memo creation Acknowledges information receipt
  62. 62. 81Slide Card issuance requests Disputes Disputes (cont) Questions Address changes Rep confirms identity/address of caller Rep confirms identify/address of incoming customer Rep reissues new card is appropriate Rep confirms identify/address of incoming customer Rep confirms identify/address of incoming customer Rep receives email request & confirms identity of emailer Rep receives email request & confirms identity of emailer Bank/provider mails a new card if created Rep receives email request & confirms identity of emailer Rep receives email request & confirms identity of emailer Rep initiates a new card build Rep determines suspect transactions (& confirms others are appropriate) If bank requires it, an affidavit may be emailed to customer Rep accesses other systems if request spans other depts Rep updates address on credit card system (and depending on the bank, DDA/CRM system also) Bank/provider mails a new card Rep initiates provisional credit Rep emails responses (consulting operating procedures if necessary) Rep answers phone question (or consults operating procedures if necessary) (Done variously if DDA/CRM not updated automatically) Connection made to branches to connect with customer Rep emails responses (consulting operating procedures if necessary) Rep closes card if compromised Rep emails responses (consulting operating procedures if necessary) Branch reaches out to branch to update all customer accounts as appropriate (Not done by banks) Info forwarded to branch, which does courtesy follow up (w/real motive to initiate a needs discussion) Branch updates DDA/CRM etc address records as necessary Rep emails responses (consulting operating procedures if necessary) Non-branch debit & credit card servicing (calls & emails) Detailed illustrative example (Non-branch debit & credit card servicing) This low cost function was selected to demonstrate the bank has many pockets of smaller functions that would benefitRPA potential HIGH MEDIUM LOW NONE
  63. 63. 82Slide A few examples of how UiPath would automate the non- branch debit and credit card servicing process: Automation Extraction Aggregation Responding Cuts & pastes information to confirm identity Extracts data from emails to pre-populate system fields Sends changes to other systems for updating (address etc) Acknowledges information receipt Logs reps into systems, speeding research Pulls information to create case notes Pulls information from systems to assist with fraud research/look for trends etc Sends email to branch manager so s/he can follow up with customer Crafts email responses Speeds research of suspect transactions Helps serve up information & responses to reps answering questions Provides updates to customer on status
  64. 64. Processes every company should automate Data Entry Personnel Administration Payroll Joiners, Movers, Leavers Time & attendance Management Benefits Administration Compliance and Reporting Recruitment (back office) HR Services Order to Cash Procure to Pay (AP) Record to Report Vendor Management Collections Incentive Claims Sales Order Finance and Accounting Supply Chain Inventory management Demand and supply planning Invoice and contract management Work order management Freight management Returns processing Server and app monitoring Software deployment Routine maintenance & monitoring Email processing and distribution Batch Processing Password reset/unlock Back up & restoration Automation IT Services Other areas for automation Automation opportunities are practically ubiquitous in any organization. Besides typical horizontal services, there are other organizational activities that can fall easily under the scope of any automation strategy HR Services Due to the huge amount of repetitive, often manual, administrative tasks, under the shape of form fillings, data capturing, updating and disseminating and large number of request processing, HR is a gold mine of opportunities for automation Supply Chain Supply chain problems cost companies between 9- 20% of their value over a period of 6 months. Below processes are typically prone to automation and represent typical area of improvement in any supply chain operations. IT services With an estimated 30% of time spent on low level tasks, IT is compelled to embrace automation as a way to focus on the initiatives that require innovative thinking, and be able to tackle with the critical organizational tasks currently consuming much of their time. Finance and Accounting F&A is another area where automation can have significant positive impact on cost savings, improved efficiency and streamline processes, when applied 83
  65. 65. 84Slide How much value can RPA create for your firm? Costs Benefits Robot licenses (A seat license- ie the cost per robot- is a fraction of an FTE) Server(s) & virtual desktop infrastructure (VDI)* Training time (A few days x employees) Ongoing support/network (Similar in effort to administering Excel/PowerPoint) FTE reduction - Direct from automation - Indirect from reduction in rework/error correction (10-40% of tasks) Value on reduced customer attrition on quicker response times (~ Value of 1 customer lifetime NPV saved is equal to a seat license cost) Reduced cost from employee attrition due to less repetitive work (~ Value of HR time alone of 1 employee not being refilled, is equal to the cost of a seat license) Payback period= <6 months Remember- RPA does not require major platforms, coding etc * VDI is essentially the practice of hosting a desktop operating system/Windows PC on a server w/o a monitor- where the employee connects through dedicated thin client software
  66. 66. 85Slide Implementation overview: Easy, & value created within a handful of weeks 2 3 4 5 61 Departments assess RPA readiness, evaluate providers & agree to proceed Stand up server, software is downloaded & configured A handful of employees are trained online Department head & key stakeholders, 1-2+ weeks* * This example assumes departments implement individually, instead of an enterprise-wide implementation Network admin, 1-2 weeks Dedicated bank team or dept employees, 3 days RPA Prioritization & Definition Workshop held to determine which processes receive priority (high headcount/low variability/complexity) & articulate the workflow steps/create documentation 1-3 dept employees, 1-2 weeks Robots trained & tested for the prioritized set of processes RPA trained employees, 2-3 weeks Grow momentum (Centers of excellence etc) Total= 6-10 weeks elapsed time for a few individuals Value begins to be realized
  67. 67. 86Slide Evolution of Intelligent Software Automation 5-20% 40% and more 60% and more 80% and more Orchestrated Automation Intelligent Robotics (IRPA) Orchestrated Robotics (RPA) Cognitive Robotics (CRPA) Application dependent Workflow Automation Robotic Process Automation replicating actual user activity RPA with integrated Cognitive Services RPA with integrated Cognitive and Deep Learning Service Efficiency Today Intelligent Automation
  68. 68. 87Slide / WITHIN MINUTES 75+% 65+% 100% PRODUCTS DESIGNED TO PROVIDE STRONG SECURITY, ENTERPRISE GRADE COMPLIANCE & ROBUST GOVERNANCE. ERROR REDUCTION COST REDUCTION CYCLE TIME REDUCTION HIGH SCALABILITY RESULTS DRIVEN TECHNOLOGY
  69. 69. 88Slide Executive recap Technology maturation & your competitors’ RPA adoption Means delay is costly- in value unharvested, & falling behind Tech maturation also means much IT backlog for rectifying bad/broken processes. RPA allows you to essentially “rectify” these broken processes without the expense & delay of actually implementing the backlog Companies scrutinize their potential partners carefully & choose us disproportionality We’re a company winning a growing share of the industry- because of our vision, capabilities & deep pockets And, we have a pace of improvement that will continue to leave our competition further & further behind Independent experts- many of them, with numbers quoted here- say RPA results are meaningful Why now? Easy to start? Is the payback real? Why UiPath? “60-80% reductions in process times/steps w/25-40% reductions in costs” according to SME independents such as McKinsey&Company, EY etc <6 month payback & no system integration Meaningful cost & turnaround reductions are achievable within a month of agreeing to proceed.. ...Because RPA is not integrated into your systems- hence no costly coding or waiting A robot never sleeps, makes zero mistakes & costs a lot less than an employee
  70. 70. 89Slide Reality or Hype? • Across multiple FI processes • Covers Loans, Cards, Payments, etc • Insurance back office • Multiple references • Proven Cost Savings from 10% - 80% • Proven Error reduction • Implied Customer Service improvements • Low impact implementation in short period of time • RoI within 3 – 6 months Evidence • Mc Kinsey • EY • Accenture • Argon Consulting • London School of Economics • Kinetic Consulting • Grand View Research • …… and UiPath Sources
  71. 71. 90Slide Reality & Hype Come and see a software robot working Speak to myself, Franck or Alex today and tomorrow
  72. 72. Martin Budd F5 @f5networks #finscot
  73. 73. Securing The Fintech Journey Martin Budd Security Sales ManagerUK&I Keiron Shepherd Snr Security Systems EngineerUK&I
  74. 74. “Cloud can support digital transformation, if applications and data are secure”
  75. 75. 01100110 00110101 00001101 00001010 APIs Will Increase The AttackSurface USER API CHANNELS DATA
  76. 76. Web Application Evolution 11 GET /ws.php GET /http.php GET /images GET /http.php HTTP/1.1 Payload: <HTML><H1>Welcome</H1></HTML> GET /http.php HTTP/1.1 Upgrade: websocket Connection: Upgrade Sec-WebSocket-Protocol: chat Payload: dll29x8hsadh23nfha8s892...
  77. 77. HYBRID ENVIRONMENT Identity and Firewall Access DDoS Protection ADC Local Load Application Balancing Security Application Performance TRADITIONAL DC On premises PRIVATE CLOUD On premises/CoLo PUBLIC CLOUD Off premises Anti-Fraud
  78. 78. Mobile & Cloud Driving The Application Explosion Open Banking presents tremendous opportunity, but exposes organisations to different threats Maintaining a secure, frictionless customer experience essential to successful digital offerings Security, Availability move with your applications to protect them wherever they reside
  79. 79. Michael Murphy Zerto @zerto #finscot
  80. 80. Building a Resilient Foundation for Digital Transformation 107
  81. 81. • Causes & Benefits • The Impact to FINTECH • Real World Examples in FINTECH • The Confidence to Embrace Change IT Resilience and Digital Transformation 108
  82. 82. “By the end of 2017, two-thirds of the CEOs of the top 2,000 global companies will have put the digital transformation strategy at the center of their corporate strategy.” - Forrester 109
  83. 83. What is Digital Transformation? 110 Creates Challenges for Traditional Business Models Creates Opportunities for New Business Behaviour is Altered & Interactions Change Evolution of People & Technologies
  84. 84. 111 Digital Transformation is a continuous journey with multiple stages along the way This enables the business to step back and re- evaluate as changes continue to happen Break it down into small, individually-defined steps as part of an overall plan
  85. 85. 112 Transform for Survival Technology has driven a shift in the competitive landscape. Competitors are disrupting traditional models of business by leveraging digital technology. This forces organizations to “transform or perish”
  86. 86. 113 "One-third of the top 20 firms in industry segments will be disrupted by new competitors within five years.“ - IDC Report, “FutureScape: Worldwide CIO Agenda 2016 Predictions”
  87. 87. 114 Transform for Profit But it’s not the only motivator to transform Technology is now seen as a driver of innovation and opportunity, not a cost center. The digital age has opened up opportunities for new models and new revenue streams.
  88. 88. 115 Companies that embrace digital transformation are 26% more profitable than their average industry competitors and have a 12% higher market valuation. - MIT Center for Digital Business
  89. 89. 116 Transform for Agility Underpinning everything is the advantage of agility Organizations need to be more flexible, responsive and resilient to any disruption or change. Agility enables pro-active transformation and faster responses to digital innovation.
  90. 90. 117 “The faster your organization can go from idea to implementation, the more it can embrace opportunities to transform and even disrupt markets and internal business models.” - Forbes report, “Top 10 Trends for Digital Transformation in 2017”
  91. 91. 118 Complex IT Complex Products Costly Real Estate Legacy Compliance Manual Operating Modes Souce: KPMG Report - Challenger Banking Annual Results, 2016 Our Established Banks are Struggling to Evolve
  92. 92. 119 When banks get it wrong, it damages reputation and the bottom line Souce: Ponemon Institute – “Cost of Data Centre Outages” Report, 2016
  93. 93. 120
  94. 94. 121
  95. 95. 122 It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently… - Warren Buffett
  96. 96. 123 Transformation for agility and profitability Safaricom and the Commercial Bank of Africa (CBA)
  97. 97. 124 Transforming for Agility • Complex BC/DR technology • Locked into ageing hardware and expensive data centers • Unable to test DR easily Before Zerto • Less complexity & simplified management • Migrated to new all flash hardware in 6 new data centers in months • Easy testing gives a competitive advantage With Zerto Fintech Service Provider 50 countries 63,000 finance professionals use SAAS services every day
  98. 98. 125 Transforming for Profitability • High cost of data center real estate Before Zerto • Migrated production workloads out of 75 data centers down to 6 • Project delivered in months • IBM GTS & IBM Resiliency Services With Zerto Global Insurance Company $70 Billion Annual Revenue 90 Million Customers in over 60 Countries
  99. 99. 126 Improved Recovery Time by 60x Enabled transformation with Azure Daily DR testing performed in 15 minutes Reduced DR storage footprint by 43% Delayed storage purchases for 3 years Installed & configured in just 90 minutes Resilience Pays for Itself
  100. 100. Real-Time Analytics & Historical Reporting Seamless Data & Application Mobility Faster & Cheaper Test/Dev Environments Easily Test & Report for Compliance Minimise the Risk of Ransomware Advanced Automation & Orchestration Reduce Costs & Optimize Licensing Enable Hybrid Cloud Flexibility IT Resilience enabled by Create a Unified, Flexible Infrastructure Rewind & Recover from Anything 6127
  101. 101. 128 GDPR is looming… You are required to test & prove fast recovery from an outage
  102. 102. Request a Demo with your Rep or Online 129
  103. 103. PRIVATE AND CONFIDENTIALPRIVATE AND CONFIDENTIAL Thank you! 130
  104. 104. Welcome Back Fintech 2017 27th & 28th Sept Our Dynamic Earth
  105. 105. RegTech Panel Sameer Gulati, Innovate Finance @SameerG1987 Alex Ford – Encompass @alexkford Stewart Pitt – Allatus @PittStewart Gillian Boston - AutoRek @autorek
  106. 106. Christopher Woolard Financial Conduct Authority @TheFCA #finscot
  107. 107. Stephen Flaherty JP Morgan Chase @jpmorgan #finscot
  108. 108. n4m The Pace of Change Stephen Flaherty, Managing Director – J.P. Morgan JPMorgan Chase Key Strategic Technology Priorities
  109. 109. Technology Infrastructure Driven by Business Scale $5T Daily Payments Processed 243K Employees 6K Applications 44MM Digital Customers $1T Annual Merchant Transactions $1.8T Daily Securities Traded & Settled JPMC Business Scale 150K Server Instances 285PB Data Storage 30 Data Centers 20K Developers 150K Virtual Desktops 170MM Annual Video Minutes JPMC Technology Scale 136
  110. 110. Global Technology Organization 2016 Global Technology Budget ($B) Global Tech Infrastructure (GTI) Corporate LOBs Developing and maintaining applications Delivering employee technology and infrastructure AM CB CCB CIB Data Center Compute End User Tech Network Storage Global Technology At-a-Glance Total = $9.5B ~33% ~67% Change the Bank Run the Bank 137
  111. 111. Transforming Global Technology To Enable Innovation 138 Employees Customers / Clients 3rd Party Developers Hybrid Cloud Infrastructure Software Development Employee Technology Data & Analytics Cybersecurity Digital & FinTech Optimizing core infrastructure APIs
  112. 112. What are the Challenges Associated with an IT Transformation? Need for Continuous Improvement Ensuring Business is Aligned with Change Innovating on Top of Legacy Environment ▪ Focusing on incremental innovation, not just disruptive ▪ Automating processes and removing barriers ▪ Clear and open communications channels between business and tech ▪ Developing agile teams across global footprint ▪ Shifting from old thinking ▪ Reducing “technical debt” ▪ Ensuring time for innovation against BAU 4
  113. 113. How Can We Combat These Challenges? Creating Buy in for the New Vision ▪ Defining goals, and demonstrating progress Becoming More Technology Oriented and Data Driven ▪ Technology as the enabler, not the excuse 01010010100100 01010101001010 10101010101010 10101010101010 11010101010101 01010111 Refocusing the Organization Towards New Priorities ▪ Top town prioritization, firmwide collaboration 5
  114. 114. Lisa Jacobs Funding Circle @LisaJJakes #finscot
  115. 115. Delivering strategic goals in a constantly evolving landscape Lisa Jacobs – Chief Strategy Officer
  116. 116. Seismic shifts in the financial services landscape allow innovation to take root Rates for investors have dropped Banks have retrenched from SME lending Source: Bank of England Bankstats (http://www.bankofengland.co.uk/statistics/Pages/bankstats/2017/jul.aspx) 143 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Isa interest rates 135 140 145 150 155 160 165 170 175 180 April 2011 Oct 2011 April 2012 Oct 2012 April 2013 Oct 2013 April 2014 Oct 2014 April 2015 Oct 2015 April 2016 Oct 2016 April 2017 £Billions Stock of bank loans to SMEs
  117. 117. Funding Circle’s innovation efficiently connects supply and demand 144
  118. 118. We’ve delivered over £3.5B of lending to small businesses whilst offering investors returns of 6-7% 145 0 0.5 1 1.5 2 2.5 3 3.5 4 2012 2013 2014 2015 2016 2017 £Billion Funding Circle investors’ cumulative lending 0% 10% 20% 30% 40% 50% 60% 2011 2012 2013 2014 2015 2016 2017 Funding Circle cumulative returns 60,000 jobs created and £5.3 billion added to the UK economy
  119. 119. A strong vision and mission: $100B lending and 3M jobs p.a 146 1
  120. 120. Investment in data and technology 147 2
  121. 121. 89 0 0 10 20 30 40 50 60 70 80 90 100 Funding Circle UK UK Banks A ruthless focus on delighting our customers Market leading NPS 148 c. 94% of businesses would approach Funding Circle first in the future versus their bank 3
  122. 122. Do the right thing Cutting through the noise 149 Lobbying for regulation 4
  123. 123. Add optional footer or disclaimer or delete text box 150
  124. 124. Questions & Discussion

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