The other significant driver for FSI in 2017 is Fintech, he continued, and the past year alone saw $20 billion invested: “These guys bringing a totally different approach to fintech. Not just new products, but consumer style services, and not only to customers but to employees as well”.
A quick survey of analyst opinion confirms this viewpoint: Goldman Sachs estimates that Fintech upstarts could capture up to $4.7 trillion in annual revenue from established financial services companies. Deloitte predicts a push to replace ageing core systems, and that wealth management business could undergo rapid structural shifts in response to the proliferation of robo-advice.
In our conversation, Rimmer identifies robo-advice as a powerful disruptor: “Voice is becoming the preferred interface in wealth management and commercial banking. We’re seeing customer relationship systems, where voice is the primary interface. In 20 years’ time, children will ask: ‘Daddy is it true that people used to type stuff into a computer?’ We are looking to a more natural interface, powered by artificial intelligence at the back end”.
Anticipating and supporting these profound changes in the delivery of FSI services is the Modern Enterprise, explains Chris Moyer, VP Mobility and the Workplace, HPE. “Every bank is trying to be as active as they can, giving employees the right information on the right device, the right time and with the right applications. This will help them make the right decisions.
“Those decisions need to be fuelled by a lot more information. In the past that information needed to be displayed on different devices and there was a ‘1 or 2 size fits all’ approach to laptops. We’re seeing a very different approach now where we can tune these to fit experience of different kinds of users in FSI.”
A case in hand is the trader who has need of high power, low latency workstation-based solutions as in the office, everyone is mobile now. In the branch environment or any customer-facing situation, it’s all about consolidating information onto a mobile device. “The employee can go directly to the customer and start to anticipate the sort of information they want.”
Ultimately, says Chris, in the branch environment, all staff should be ‘armed and dangerous’ with the capability to engage better, which leads to upselling and greater profitability for banks. ES is building CRM solutions to do just that. “We have a dynamics platform showcasing here [Discover]; it’s fantastic to see how fast companies have adopted and are adapting them.”
An example of the Modern Enterprise, cited by David, is a German financial management and pensions advisory company. ES has developed a tablet-based solution for its sales agents to sit down with customers and model financial goals. Because it is both dynamic and interactive, it increases level of customer engagement, and, critically trust.
Employees show they understand their client’s situations better by modelling investments live on screen. The engagement, in turn, builds trust into the relationship. “Through the Modern Enterprise we’re bringing a consumer-like experience with enterprise security; it’s crucial banks protect important data as well as offer instant collaboration, with employees connecting between teams around the world”, Chris sums up.