HPE Financial Services Application of FinTech solutions Brian McLafferty Jun-19 Fintech application 1
HPE Financial Services
Application of FinTech solutions
Brian McLafferty
Jun-19
Fintech application1
CONTENT
2
▪ FINTECH
▪ HPE Financial Services (how FINTECH applies)
▪ Challenges it presents
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FINTECH
4
▪ What is FINTECH ?
“the application of new technology in financial services to drive innovation and disruptive business models.” 1
▪ Why is it important ?
Estimated $1trillion profit pool for the banks so it is attractive for the Fintechs (approx. 12000 active) to capture even a fraction of this. 2
Citigroup - $1.8 billion in 2011 3
KPMG - $118 billion in 2018 4
Reference : Deloitte (2015) 1 ; Deloitte (2017) 3 ; www.forbes.com (2016) 3 ; PMG (2019)
What is the TECH in FINTECH ?
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Currently its about
deploying LEGACY
TECHNOLOGY to
deliver NEW
PRODUCTS and/or
REACH NEW
CUSTOMERS than
truly switching to
new technology
(Accenture, 2017)
Unbundling of the traditional US Banks by FINTECH innovation
6Ref : CB Insights (2016).
What FINTECH really is…for HPEFS (or is it DX)
▪ Taking advantage of the EXPERTISE built up by the FinTech that they continue to develop and improve on.
▪ New / Reimagining Products/Services and Business Models for our e2e business
– Reshaping the Customer experience by understanding and eliminating the pain points.
– Novel application of new solutions and technology that in turn increases Revenue and Profit Growth based on improvement due to :
– New and improved forms of Customer Value capture and creation
– Competitive advantage based on Cost Leadership and/or Differentiation
▪ Reengineering Business Processes to improve Operational efficiency and effectiveness
– Application and adopting flexible and intuitive digital technologies to
– Simplify and optimize the Financial Service business processes
– Improve efficiency and accuracy of internal processes
– Reduce cost
– Improve processing times
7
HPEFS DX (than FinTech) Journey
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Core Platform (internally built – very bespoke)
CUSTOMER PORTAL Digital Experience PLATFORM (DXP)
PARTNER PORTALDigital Experience PLATFORM (DXP)
Adobe eSign
3 x easy steps for Customers
9
Email notification
Digitally Sign
Email notification
Implications / Thoughts
– Moving from the PHYSICAL to DIGITAL world
– “Digital Original” – manage and control
– Legal enforceability (jurisdiction “readiness”)
– Verification of the signatory
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HPEFS DX (than FinTech) Journey
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Core Platform (internally built – very bespoke)
CUSTOMER PORTAL Digital Experience PLATFORM (DXP)
PARTNER PORTALDigital Experience PLATFORM (DXP)
Robotics Process Automation
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InteroperabilitySingle application Platform agnostic K
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Cognitive - Computing
Data
Activ
ity
Jacada
NICE
Cicero
Kryon IP Soft
Blueprism
UIPath
OpenspanAutomation Anywhere
Autopilot -Arago
InStream
WIPRO Holmes
IBM Watson
Google - Brains
IPSoft - Amelia
Level 1Basic Automation
• Predictability of Tasks
• RULES / Repeatable / Standard
• JUDGEMENT
• Complexity of DATA
• Structured vs. Un-structured
• Clean vs. Unclean
• Qty of sources
Level 2Structure Rules
Level 3Pattern based
decisions
Level 4Multiple decision
making
Source www.irpanetwork.com
Workfusion
A software defined programmable
machine aka ‘robot’ that mimics human
actions and operates high volume, and
highly transactional process functions
across multitude of existing systems
and applications.
Robotics Business Case – what’s driving the interest
Implications / Thoughts
– Replacing humans vs. Changing industry (“parts of jobs”)
– Automation of processes is not a new phenomenon
– Barcodes & Point-of-Sales (1980’s)
– Containerization (1950’s)
– John Henry vs. the Steam-powered hammer (1870’s)
– Other questions
– Regulation ? Ethics ? in a Digital World ?
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HPEFS DX (than FinTech) Journey
15
Core Platform (internally built – very bespoke)
CUSTOMER PORTAL Digital Experience PLATFORM (DXP)
PARTNER PORTALDigital Experience PLATFORM (DXP)
Others ??
16
Challenges
Challenges and Questions driven by FINTECH
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1) Pressures to the Financial Industry driven by Competitive pressures (including Customer expectations and preferences) to change and digitally transform.
2) Disruptive impact of technology to the sector.
3) Actions of the incumbent Financial Services companies.
4) Challenges of the Fintech innovators (non-bank financial institutions (NBFIs)) to scale and disrupt the incumbent institutions.
5) The challenges of Trust, Privacy and Confidentiality in the digital world.
6) Regulatory & Compliance requirements.
The biggest challenge ??
19
Thank you