This document discusses developing success cases for financial services using blockchain, AI, and R&D. It provides two case studies as examples: one using blockchain for car insurance claims processing by providing transparency and detecting fraud, and one using AI and voice interfaces for private wealth management by leveraging algorithms and sentiment analysis to provide investment strategies and engage customers. The document emphasizes starting with the business need, problem, and goals to build solutions that simplify processes, increase trust, and decrease costs.

1. Blockchain,
AI and R&D
May 2018
in developing success cases
for Financial Services

2. Product manager,
Financial services
SoftServe
MSTM LvBS alumni
MS in Finance
MS in Law
linkedin.com/in/antoninaskrypnyk

3. FULL STACK PROJECT MANAGEMENT
▪ Aligning project’s objectives to business strategy
▪ Translating business strategy into investment execution
▪ Leading the long-term high performing and engaged teams
Just hitting budgets and schedules is a necessary, but not
sufficient, success threshold

4. COMPETENCE STRUCTURE
Technical Project manager
Creative Project manager
Strategic Project manager

5. WHAT TO START FROM?
 What is the problem?
 Who has the problem?
 Where does the problem occur?
 When does the problem occur?
 What does the problem impact?

6. WHAT IS A BUSINESS CASE
a justification for a course of action based on
the benefits to be realized by using the
proposed solution, as compared to the cost,
effort, and other considerations to acquire
and live with that solution
a written or verbal value proposition that is
intended to educate a decision maker and
convince them to take some kind of action

7. WHY?
Business case brings together benefits,
disadvantages, costs, and risks of the current
situation and future vision so that executive
management can decide if the project should
go ahead and whether it is a reasonable item
for investment

8. BUSINESS CASE PREPARATION
REQUIRES ASSESSMENT OF:
 business problem or opportunity,
 benefits,
 risk,
 costs including investment appraisal,
 likely technical solutions,
 timescale,
 impact on operations, and
 organizational capability to deliver the project outcomes.

9. SELF CHECK POINTS
▪ What is your goal?
▪ What’s stopping you from reaching the goal?
▪ How much change is needed to overcome the
problem?
▪ Are you certain this will solve the problem?

10. BUILDING
SUCCESS
CASESIN FINANCIAL SERVICES

11. BLOCKCHAIN FOR CAR INSURANCE
CLAIMS PROCESSING
KEY OBJECTIVES
 Every year insurers lose $100 billion on insurance criminals
 Main reason - fraudulent or exaggerated insurance claims
 Insurers are compelled by statute and Regulation to maintain
Special Fraud Investigation Units and a detailed antifraud
program to fight with this risk
 In case claims are made against multiple policies held by
different insurers, it is difficult to detect the fraud unless cross-
industry data is shared
CASE STUDY:

12. BUSINESS NEED
 Simplify customer journey – omit complex
claims processing procedure
 Endorse poor customer experience – for
customers insurance contracts are complex
and difficult to understand legal documents
 Decrease enormous paperwork and no
transparency for all parties
 Empower fraud detection and risk
management (‘crash for cash’, multiple
claims, KYC risks and issues) for insurance
carriers

13. EMBRACING THE CHALLENGE
 Provide transparency in claim processing
 Recognise multiple claims for one accident
as Blockchain-network would know that a
claim had already been placed
 Enforce claims and payments automatic
execution/processing by Smart contracts
when certain conditions are met
 Increase trust with no single point of truth
and failure
 Decrease transaction costs

14. SOLUTION DETAILS
The application covers main flows for three
roles in the system:
 Agent
 Adjuster
 Client
Basic functions:
 Create and manage claims
 Assign adjuster
 Process claims and payments

15. TECHNOLOGY STACK
 Uplink (Adjoint) as Blockchain based
platform we partner with
 AWS
 VPS
 subnet
 Java Spring

16. AI AND VOICE INTERFACE FOR PRIVATE
WEALTH MANAGEMENT
KEY OBJECTIVES
 Individual investment advisory practice for many years had no
significant changes in its process
 Private wealth management requires direct interaction of the
advisee with a financial advisor
 Manual (human) assessing information, trends, and market
sentiment to develop potential investment strategies
 More than 70% of Millennials had not stepped into FS offices
for last 6 months and prefer digital communication
CASE STUDY:

17. BUSINESS NEED
 Disrupt the customer journey for private
wealth management investors by omitting
the unnecessary intermediate
communication with financial advisers
 Increase trust to the on-line solutions by
introducing smart algorithms based on
collecting open trading data, corporate
network and sentiments analysis
 Decrease operational costs of investment
departments in banks

18. EMBRACING THE CHALLENGE
 Leverage voice interface for Alexa Echo Show
integration to engage HENRY users and
Millennials
 Utilize Artificial Intelligence and smart
algorithms for prediction of market trends
and best portfolio
 Utilize Big Data approaches for aggregation
of various sources of information
 Experience design for individual investors
smooth experience in private wealth
management decision making

19. SOLUTION DETAILS
 Historical data on stock prices, volume
history, and market average
 Sentiment analysis index based on reliable
news sources
 Network science to embrace corporate
network effects.
The product provides investors three
alternative portfolio strategies to follow:
 An optimal strategy
 A minimum risk strategy
 Highest returns strategy (highest risk)

20. TECHNOLOGY STACK
 Predictive analytics (TensorFlow)
 NLP for News processing and Sentiment
analysis
 Algorithmic portfolio optimization
 Alexa Echo Show
 AWS

21. RECAP
 Go from the need
 Define the route cause
 Know customer’s business
 Think of the business value
 Be proactive to ask/assess/validate

22. THANK YOU!
Q&A