<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=4958233&amp;fmt=gif">
 
RSS Feed

Leadership | Wynn Davies |
13 July 2021

Recently, Vikram Dewan, former CIO of Deutsche Bank’s Corporate Bank division, and I had the chance to share our thoughts in an American Banker webinar on three topics that are top of mind for banking leaders: digital, cloud and open banking. You’d be hard-pressed to have a conversation about transformation in the banking space without including any of these topics. For those of you who missed this online event, I’ll use this opportunity to summarise a few key points made.

DIGITAL

Fintechs are here to stay. They’re digital natives and they’re fast changing the way the world banks. How can banks best determine the right relationship to establish with fintechs?

Vikram: Fintechs fulfil three roles in the banking industry. There’s no choosing just one of those roles if you want to be successful in working with them. First, they are customers. These firms have done so well over the past few years that no bank can afford to lose them as clients. They represent too much revenue and opportunity.

Banks also need to look at them as partners. Because fintechs start without legacy constraints, they are so much leaner and nimbler than traditional banks. For instance, during my time at Deutsche Bank, we partnered with a fintech for e-wallets. It was a capability we needed, but building it in-house would have taken too much time and required specialised skills.

In addition to their role as customer and partner, fintechs are also banks’ competitors. They have moved into banks’ traditional space; you see it in the way challenger banks are coming in lean, mean and fast.

Wynn: I think it’s also important to note that the fintechs who are most successful partnering with banks are those who have a proper knowledge of the industry, its processes and the frameworks banks work within. Some fintechs are mainly filled with academic types – but I’ve found those organisations are generally good in theory and less so in knowing “real-world” implications. Fintechs should come with proven industry experience; they need to understand your value chain and add to it.

What are the top enablers to digital transformation and what are the most common barriers?

Wynn: What enables digital transformation most is also what blocks many transformations when not addressed properly: data. You have to have the ability to access and understand data – and that means the right data strategy along with building data and analytics capabilities into your operations. I see firms with “clean data” accelerating to create truly engaging digital experiences for their customers and clients.

Vikram: You also can’t discount the people element. People can enable your digital transformation, or they can hinder it. I’ve found that middle managers can be so worried about job loss due to digitalisation that they become roadblocks. But, in reality, in the US there are 10 million jobs open and not enough talent to go around. The solution is not layoffs – it is reskilling your existing talent. That’s not only the right thing to do; it’s the sensible thing to do during a war for talent such as the one we’re living through now. Firms who invest in their people’s digital skilling are moving ahead faster.

CLOUD

A lift-and-shift approach to cloud is so much faster and easier than mapping out a cloud strategy and architecture. What makes the latter worth it?

Vikram: You’re not maximising utilisation of all the capabilities cloud provides unless you’re working from a comprehensive cloud architecture strategy. Lift-and-shift will give you partial value – some components and capabilities of cloud – but in the long run, competitors who take the time to create a strategy up front will reap more than a firm who took the quick lift-and-shift route.

Wynn:
I see why lift-and-shift is tempting. You can scale up immediately when you are running out of data centre capacity and need more processing power right away. But what will happen in the long run? You’ll end up with a mix of things in the cloud, and they may not be the right things. In the end, that costs you more time and money because you’re creating a patchwork quilt architecture versus one that builds upon itself seamlessly. Put another way, saving money shouldn’t be the reason you go to cloud. It’s an advantage but shouldn’t be the primary driver. It should be innovation – infrastructure as code supports an entirely new level of innovation.

OPEN BANKING

How soon will open banking become the global norm?

Wynn: Europe has taken the lead due to regulation. During the webinar, our co-panellist Dan Cobley, former managing director of Google UK and Ireland, talked about 3 million people in the UK using open banking today, with around 300 organisations providing those services. Asia and the US, while not obligated to follow, are moving in this direction because they need to serve their clients in a better, more comprehensive way. Digital banking is about giving someone an experience in which they get out more than they put in – open banking allows that.

Vikram: Think of a simple example: any medium-sized corporation in Europe has multiple bank accounts with multiple banks. But company leaders need a single, holistic view of balances and activity across all accounts and banking institutions. Open banking is the only way to get there. Or, say, you are a bank in Asia, and you want to do business with a large technology firm. That tech firm’s preference for communication with its partners is APIs because they’re more secure and can carry more information than traditional methods. During my time at Deutsche Bank, I saw APIs explode in number as we serviced more large tech companies.

Wynn: Dan used the example of ClearScore in the UK, which is similar to Credit Karma in the States. Banks who ensure their APIs work with ClearScore’s are seeing lots of volume from people who are pre-approved for credit cards and such on the platform. Open banking is here to stay and likely to become the default globally.

Any closing thoughts on the future of banking?

Wynn: The banks that are investing heavily in their digital journey will continue to have the right resources in place and lead the pack – I’m thinking JPMorganChase and others, like Goldman Sachs, who are literally reinventing themselves digitally. But I think we’ll also see a group of successful regional and tier-2 banks, niche players who have built an incredibly strong franchise through the correct adoption of fintech, open banking and integrated retail, corporate and insurance products.

Vikram: I think we’ll see banks having to reinvent themselves not just digitally but as an employer of choice. The top tech talent they’ll need to succeed have many options. Retaining staff will be a key focus – keeping employees happy and helping them grow.

For more on these topics, watch the webinar on demand on the American banker homepage.

Wynn Davies

EVP US Finance Sector

Wynn has 20+ years of experience in advisory and delivery for Financial Services firms. At Endava, he leads our North American Financial Services team and helps to lead our thinking for Banking globally. Wynn refers to himself as a Financial Services geek; much to his wife’s dismay, he is always happy to talk shop. Outside of work, Wynn is kept busy by his two young children, coaching rugby, and supporting his family’s focus on alleviating food poverty.

 

From This Author

  • 31 August 2021

    Personalised Banking: How to Get Ahead of Ever-Changing Client Value Propositions

  • 05 May 2021

    Artificial Intelligence: Where Does The Real Value Lie?

 

Archive

  • 26 September 2023

    Who Wins Most from Healthcare’s AI Transformation?

  • 21 September 2023

    Why Loyalty Programs Matter More Than Ever in Retail

  • 20 September 2023

    What Businesses Need to Start Innovating

  • 14 September 2023

    The Spark That Drives Machine Learning to Shine

  • 08 September 2023

    Why Customer Experience is at the Heart of Supply Chain Management

  • 07 September 2023

    How Offer and Order Management Systems Are Expanding The Aviation Business Model

  • 25 August 2023

    Tuning Out the Noise: Picking the AI for Practical Business Impact

  • 24 August 2023

    Resetting the Status Quo – How Banks Can Overcome Payments Challenges

  • 17 August 2023

    Opening Lap: An Endava and Toyota Racing Development Q&A

  • 17 August 2023

    The AI Boost in Gaming: Gameplay, Narrative and Production

  • 08 August 2023

    How Healthtech Simplifies and Secures Payments Processing

  • 14 July 2023

    Streamlining Digital Media Supply Chains with Generative AI

  • 13 July 2023

    4 Areas for Financial Institutions to Consider When Starting Out with Real-Time Payments

  • 12 July 2023

    Regtech - Necessary evil or competitive edge?

  • 07 July 2023

    Prime and Thrive: 3 Steps to Build Your International Payments Model

  • 06 July 2023

    Real-time Fraud – Solving the Virtual Pocket-Picking Problem

  • 29 June 2023

    Salut! I’m Radu Orghidan

  • 14 June 2023

    Debunking the myths on generative ai: what is the reality behind the most common ai misconceptions?

  • 31 May 2023

    The Time Is Now to Start Thinking About Real-Time Payments

  • 25 May 2023

    An Anatomy of the Data-Driven Retail Supply Chain

  • 23 May 2023

    BNPL regulation to protect consumers and control third-party lenders

  • 16 May 2023

    Salut! I'm Adriana Calomfirescu

  • 15 May 2023

    Hi, I'm David Boast

  • 12 May 2023

    The Business Impact of Fan Engagement: How to Leverage Technology to Improve Loyalty

  • 09 May 2023

    Staying Relevant - Why Merchants should embrace alternative Payments methods

  • 02 May 2023

    How IoT is changing Insurance

  • 26 April 2023

    A Veteran Game Developer's Perspective on Tool Development

  • 24 April 2023

    How Digital Ecosystems Enhance the Healthcare Experience

  • 21 April 2023

    Green Machines How Tech can Help Companies Hit Net-Zero Targets

  • 20 April 2023

    The Role of People and Technology in the Future of Underwriting

  • 19 April 2023

    Media 2030: Why Advertisers And Publishers Are Racing To Find New Strategies

  • 18 April 2023

    Alright, I’m Adrian Sutherland

  • 14 April 2023

    How Synthetic Data Could Solve Patient Privacy Dilemma

  • 11 April 2023

    Payments Makes The World Go Round

  • 06 April 2023

    Higher Fidelity Good Outcomes Harnessing FCAs Consumer Duty

  • 05 April 2023

    AI in Pharma: How Machine Learning is Transforming Drug Development

  • 04 April 2023

    Hello! I’m Leane Collins

  • 31 March 2023

    The Dos and Donts of Carve Outs Private Equity

  • 30 March 2023

    Cage Of Reason: Fca's New Consumer Duty Heralds The Rise Of The 'Reasonable Insurer'

  • 28 March 2023

    A Legal View on the Ownership and Future of AI-Generated Works

  • 24 March 2023

    Championing Women In Tech

  • 23 March 2023

    5 Ways Capital Markets Companies Can Ensure Resilient Operations

  • 15 March 2023

    Buenas! I’m Leticia Chajchir

  • 14 March 2023

    4 Ways To Improve Customers’ E-commerce Search Experience

  • 28 February 2023

    4 Healthcare Innovations that Can Benefit People and Profit

  • 21 February 2023

    Hey, I'm Lewis Brown

  • 17 February 2023

    Top Considerations for Financial Services Providers entering th Cross-Border Payments Space

  • 13 February 2023

    Better Together Harnessing The Power Of Digital Ecosystems

  • 09 February 2023

    What to Include in a Customer Re-Engagement Content Library

  • 07 February 2023

    Supercharging Wealth Management with Hyper-Personalisation

  • 02 February 2023

    How Innovating the Insurance Customer Journey creates a Competitive Advantage

  • 30 January 2023

    G'Day, I'm David Marsh

  • 26 January 2023

    Empowering Underwriting and Unlocking Revenue with Legacy Insurance Data Sets

  • 24 January 2023

    Four Stakeholders who win the most when Healthcare innovates

  • 23 January 2023

    Journey to the Centre of the Cloud with AWS - Part 3

  • 20 January 2023

    Journey to the Centre of the Cloud with AWS - Part 2

  • 18 January 2023

    Journey to the Centre of the Cloud with AWS - Part 1

  • 17 January 2023

    The 4 Most Common Mistakes in Retail Site Design

  • 13 January 2023

    Boost and bolster your innovation. Three tips to help get it to the next level

  • 10 January 2023

    5 Questions in Smart Energy that will define the Net Zero Transition

  • 19 December 2022

    Looking ahead and helping our customers do the same

  • 16 December 2022

    Stepping forward - The State of Cross-Border Payments in Southeast Asia

  • 14 December 2022

    Tech and Tinsel - Another Holiday Q&A with some of our Execs

  • 13 December 2022

    Why should Payment Service Providers be thinking about adding an ISV?

  • 07 December 2022

    How AI and Automation are revolutionising microscopy

  • 07 December 2022

    Venturing into the Metaverse to build an Innovative Bridge to Our People

  • 05 December 2022

    An Australian Eye on the Global Effort to Improve Cross-Border Payments

  • 29 November 2022

    How Reverse Logistics are Turning E-commerce Green

  • 23 November 2022

    5 things we learned at World Aviation Festival 2022

  • 23 November 2022

    Cyber Security Incidents in Australia Highlight the Need for a Balance Between Risk and Innovation

  • 22 November 2022

    The Era of Ecosystems and the Rise of Open Insurance

  • 18 November 2022

    How Tech is changing Sports betting for the better

  • 16 November 2022

    4 Ways Insurers Can Leverage Technology to Differentiate Themselves

  • 16 November 2022

    The Future of Banking in the Nordics - Being Digital and Personal

  • 15 November 2022

    Staying Relevant in the Buoyant Cross-Border Payments Market

  • 15 November 2022

    3 Experts' Insights on the Complicated Relationship between Fintechs and Banks

  • 09 November 2022

    How can banks create a secure, optimised cloud-enabled architecture?

  • 08 November 2022

    Tech is Good for you: How Wearable Edge Devices Changed Healthcare

  • 01 November 2022

    How Microservices can upgrade the Customer Experience

  • 25 October 2022

    How Technology can help Monitor the Circular Economy

  • 18 October 2022

    Why it's Time for Banks to let go of Legacy IT

  • 11 October 2022

    Buy vs. Build in Banking: Which Option is Right for You?

  • 04 October 2022

    The Rise of Super Apps: How Banks can compete

  • 28 September 2022

    AI Art in Game Production – an XDS 2022 Table Discussion

  • 20 September 2022

    Payments Data Monetisation is Key to Driving Sustainable Growth

  • 13 September 2022

    Navigating the Healthcare Ecosystem

  • 30 August 2022

    hey y’all! I’m Ashley Grant

  • 23 August 2022

    5 Ways to Fix Your Data Spine in Banking

  • 16 August 2022

    De-risking Digitalisation

  • 09 August 2022

    hi, I’m Brian Estep

  • 02 August 2022

    hey! I’m Lia Rollman

  • 19 July 2022

    The New Ways of Issuing Cards

  • 12 July 2022

    Scores on the Door: Rating Autonomous Vehicles

  • 06 July 2022

    We’re in Nottingham – a Q&A on Endava’s New Delivery Centre in the UK

  • 06 July 2022

    Data-Driven Impact: Don’t Settle for Less

  • 06 July 2022

    hey, I’m Chris Hart

  • 28 June 2022

    Platforms: a Blessing or a Curse?

  • 23 June 2022

    A Payments View on Marketplaces – How to Be(come) Successful

  • 21 June 2022

    Intelligent Commercial Underwriting

  • 14 June 2022

    The Future of Supply Chain: What’s Next?

  • 31 May 2022

    The Future of Autonomous Vehicles in T&L

  • 27 May 2022

    Hello! I'm Hannah McCarthy

  • 24 May 2022

    Going Native: Why Cloud-Native Services are Essential

  • 19 May 2022

    How to Tackle Legacy – Breaking Down Walls Between Change and Run

  • 17 May 2022

    Advantages of a Yard Management System

  • 13 May 2022

    Are Phones About to Become the New POS Terminals?

  • 10 May 2022

    The Digital Economy is an Upgrade of Smart Cities and Communities

  • 05 May 2022

    hello! I’m Sumita Davé

  • 03 May 2022

    Physical Automation in the T&L Industry

  • 28 April 2022

    zdravo! I’m Andrej Kotar

  • 26 April 2022

    Open Banking in the US

  • 20 April 2022

    hello! I’m Paul Maguire

  • 19 April 2022

    Digital Automation in the T&L Industry

  • 12 April 2022

    How Do Banks Embrace Embedded Finance – Have the Fintechs Already Won?

  • 06 April 2022

    ESG Data Architecture is a Business Imperative – How to Get Started

  • 05 April 2022

    hi! I am Roy Murphy

  • 05 April 2022

    Modernizing the Shipping and Cargo Process

  • 30 March 2022

    The Metaverse Evolution and Learning from the Games Industry

  • 30 March 2022

    Do Androids Dream of Trading Electric Sheep for Digital Wood? An Introduction to Automated Game Design

  • 23 March 2022

    Real-Time Payments in Australia – Why Corporates Should Get on Board

  • 22 March 2022

    Current Challenges in the Transportation & Logistics Industry

  • 16 March 2022

    bok! I’m Sanja Cvetkovic

  • 15 March 2022

    Rapidly Transforming: Healthtech Trends in 2022

  • 08 March 2022

    How to Digitize Warehouses and Distribution Centers

  • 01 March 2022

    Top Challenges in Warehouse and Distribution Centers

  • 28 February 2022

    Tackling CIB Legacy at its Core

  • 23 February 2022

    salut! I am Isabela Buhai

  • 22 February 2022

    4 Buy Now Pay Later Trends Set to Disrupt the Industry

  • 15 February 2022

    salut! I’m Natalia Ciobanu

  • 14 February 2022

    Product-Led Innovation – a Q&A with Joe Dunleavy

  • 02 February 2022

    Buy Now Pay Later: Will Regulation Burst the Bubble?

  • 31 January 2022

    Innovation Will Spur Ireland’s Race to the Top

  • 28 January 2022

    The Value of Digital and Automation in the Product Returns Process

  • 26 January 2022

    Virtually Disrupted? Keeping Pace with Accelerating Customer Expectations

  • 19 January 2022

    The 3 Big Ps in Modern Insurance: Personalisation, Prediction and Prevention

  • 19 January 2022

    An Introduction to Mobility as a Service in the US

  • 12 January 2022

    hello! I’m Paul Willoughby

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

  • 11 January 2022

    Payment Service Providers 2.0

  • 21 December 2021

    Making a Positive Impact Through Giving

  • 14 December 2021

    From Global Pandemic to Holiday Spirit – a Q&A With Some of Our Senior Execs

  • 07 December 2021

    Hand in Hand with Artificial Intelligence in the Energy Sector

  • 03 December 2021

    Evolving Digital Self-Service in Insurance

  • 29 November 2021

    zdravo! I’m Ilija Gospodinov

  • 24 November 2021

    yes folks, I’m Joe Dunleavy

  • 09 November 2021

    hi there! I’m Tony Whitehorn

  • 03 November 2021

    Operating Responsibly for Future Success

  • 02 November 2021

    Leveraging ESG Data to Grow Your Business

  • 26 October 2021

    Smart Tech: Providing the Visibility Supply Chains Need

  • 12 October 2021

    hello! I’m Scott Harkey

  • 05 October 2021

    How to Improve Intelligent Energy Storage Systems Using AI

  • 28 September 2021

    Data-Driven Insurance

  • 21 September 2021

    hi y’all! I’m Antony Francis

  • 14 September 2021

    Once Upon a Time … in Payments

  • 31 August 2021

    Personalised Banking: How to Get Ahead of Ever-Changing Client Value Propositions

  • 17 August 2021

    RPA: Using Robots to Streamline Processes

  • 10 August 2021

    The Inclusive Workplace of the Future – a Q&A with Asif Sadiq MBE

  • 03 August 2021

    hello! I’m Elisabeth Bradley

  • 27 July 2021

    How the Board Game Catan Conquered the Digital World

  • 13 July 2021

    The Transformation Trifecta: Cloud, Digital and Open Banking

  • 06 July 2021

    How to Future-Proof the Digital Retail Experience

  • 23 June 2021

    hi! I’m Thomas Bedenk

  • 17 June 2021

    Hello! I’m Adrian Bugaian

  • 18 May 2021

    4 Techniques to Fix Digital Breakages in the Supply Chain – Part 2

  • 11 May 2021

    Phygital in Automotive: Bridging the Gap Between Physical and Digital – Part 2

  • 05 May 2021

    Artificial Intelligence: Where Does The Real Value Lie?

  • 27 April 2021

    4 Techniques to Fix Digital Breakages in the Supply Chain – Part 1

  • 20 April 2021

    Phygital in Automotive: Bridging the Gap Between Physical and Digital – Part 1

  • 14 April 2021

    What ‘We Care’ Means at Endava – a Q&A on Sustainability with our CEO

  • 08 April 2021

    Before Commission / After Digitisation – a Pivotal Era for Australian Payments

  • 06 April 2021

    Insurance Insights: Low Code

  • 30 March 2021

    Insurance Insights: Intelligent Underwriting Workbench

  • 23 March 2021

    The Challenge of Technology is Not Technology

  • 18 March 2021

    Supporting and Empowering Women in Tech

  • 16 March 2021

    Insurance Insights: Customer Retention & Cross-Selling

  • 09 March 2021

    Insurance Insights: Cloud Migration

  • 02 March 2021

    How to Improve Interoperability in Healthcare

  • 23 February 2021

    Insurance Insights: Data Exploitation

  • 16 February 2021

    Insurance Insights: Open Insurance

  • 11 February 2021

    Mapping the Future Applications of Artificial Intelligence

  • 18 December 2020

    Celebrating 20 Years of Endava – with Julian Bull

  • 15 December 2020

    Insurance Industry Trends from DIA Prime Time

  • 08 December 2020

    Celebrating 20 Years of Endava – with Rob Machin

  • 04 December 2020

    Trends in the Automotive Industry for 2021

  • 25 November 2020

    Approaching 2021 – Technology Becomes the Business

  • 19 November 2020

    What 2020 Has Taught Us About Leadership – A Q&A with a CEO

  • 03 November 2020

    Digital Challenges and Chances in the Automotive Industry

  • 27 October 2020

    Insights from InsureTech Connect Global 2020

  • 20 October 2020

    Revisiting Digital Transformation Mistakes

  • 13 October 2020

    Ada Lovelace Day: Celebrating Women in STEM

  • 06 October 2020

    Still Rising: The Need for Visibility in the Supply Chain

  • 29 September 2020

    3 Tips for Thriving in the Era of Digital Necessity

  • 16 September 2020

    MPE Summer Week Recap – a Seismic Shift in the World of Payments

  • 08 September 2020

    Increasing Brand Loyalty Through Empathy

  • 02 September 2020

    Remote Working: The Good, the Bad and the Ugly

  • 11 August 2020

    Strengthening Supply Chains by Understanding Digital Breakages

  • 05 August 2020

    What's Next in Digital – Predictions from the CxO

  • 30 July 2020

    The Rise of Human to Human Customer Experiences

  • 21 July 2020

    Gaining Insights with Predictive Analytics

  • 23 June 2020

    Advice for running in-person and virtual hackathon events

OLDER POSTS