hpe financial services · what fintech really is…for hpefs (or is it dx) taking advantage of the...

HPE Financial Services

Application of FinTech solutions

Brian McLafferty

Jun-19

Fintech application1

CONTENT

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▪ FINTECH

▪ HPE Financial Services (how FINTECH applies)

▪ Challenges it presents

FINTECH

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▪ 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

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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)

Adobe eSign

3 x easy steps for Customers

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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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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.

http://www.irpanetwork.com/

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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Others ??

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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 ??

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Thank you

hpe financial services · what fintech really is…for hpefs (or is it dx) taking advantage of the...

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