the future of banking technology€¦ · 4. fluent omni channel toekomst technologie bankieren...

the future of banking technology

future banking technology

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sketching the futureAfter a long work day, you’re on your way

home, driving your car. The weekend is here.

You still have to order groceries for tomorrow

and tonight you’re going to a bar with your

friends. Using Google Assistant you order your

groceries. Google tells you your balance after

paying the groceries. You also get an update on

incoming invoices. One by one you confirm or

decline payment for the invoices. When you

arrive home, you get a reminder and confirm

your payments using the facial scan of your

mobile phone.

To illustrate the banking of the future we visualized three concepts

for future banking. Watch the video here.

http://www.weareyou.com/en/blogs/future-of-banking

future banking technology

contextaware and seamless

That’s what the near future

looks like. This future is

characterized by two words:

contextaware and seamless.

Contextaware means every

interaction takes three

elements into consideration:

Location - the geographical

location determines if certain

actions are relevant or

feasible. It’s not safe to be

reading or texting when

driving. And near stores or

bank branch offices certain

services are more likely to be

used than others. In the

comfort and safety of your

own home, you are more likely

to execute on the more

complex or privacy sensitive

tasks.

Privacy needs – Few things

require privacy the way

finances do. Personal data

must not only be stored safe,

but the way they are disclosed

to the client must also be safe

and fit the privacy needs of

that moment.

toekomst technologie bankieren

Relevance – relevance of

banking services are

determined by the client and

their profile. Think family

situation, age, fields of

interest, risk profile, history

and current product portfolio.

A seamless experience means

you can hardly notice the

transitions between channels.

Whether you are using mobile

devices, IoTdevices or home

computers, your bank takes

the needs and possibilities into

consideration and switches

without disturbance. Every

type of interaction, be it based

on voice, mobile screens with

switches and buttons or based

on gestures, connects to the

same user experience.

This high level of context

awareness and seamless

transition between channels

and types of interaction,

enables an increase in

interaction between client and

bank or banking solution. The

role the future banking

platform or provider of

banking services takes on is

much more proactive than it is

now.

relevant technologies and their role in the future


You can already see it now, but voice will become a

much more prominant and proactive channel than it

is now. Voice interaction will point out that you

have an upcoming direct debit. You can then block

or postpone that debit. Authorization of payments

now works through face recognition or fingerprint.

It won’t be long before this can be done using

voice recognition or with voice as part of a two-

factor-authentication. Biometrics may only

function as a final confirmation.

conversation

Various technologies are needed to enable this

future of banking.

machine learning and data


To have voice interaction and personalization

function properly, you need machine learning. We

foresee a future interaction that offers a timeline

with history, current actions and a look ahead. To

be truly relevant in this timeline, machine learning is

crucial. It’s the technology that allows the

behavioral patterns of the client to be recognized.

This combines personal preferrance and behavioral

patters of the group the client identifies with.

Implicitely this means recognizing a clients as

belonging to a specific group, which enables

predictions about the behavior of that inidvidual

client.

http://www.weareyou.com/en/blogs/concept-timeline

personalization


More and more digital platforms allow for various

content alternatives. Traffic on the website can

even be automatically analyzed and segmented.

This allows you to test what client groups respond

best to which content. Sitecore AI is an example of

such technology. The critical data set to activate

this technology is about one million views a month.

A smaller bank may not achieve such traffic

volumes, but a larger bank will. Once you combine

user data about the MyZone functionality of a bank

with other data sources – like product portfolio or

spending patterns – that can provide additonal

insights.


Ar you offering several potential tasks

in a timeline in order of priority? The

filter you use to select the presented

actions from the possible actions is

machine learning powered

personalization.

With those insights you can

offer a personalized

experience to the client. That

personalization can consist of

alerts, predictions and

recommendations.

The benefit of Machine

learning is that it limits the

impact of personal bias in

profiling the client: you are

prone to categorize clients

based on your own

experiences, classify them into

groups and define customer

journeys based on those

groups. You make a lot of

assumptions along the way.

Nevertheless, even with

machine learning you define a

framework by either including

databases into your data set

or not and by selecting the

options to be offered to the

client. You first define your

target audience and identify

relevant use cases. You enter

hard personalization based on

fixed requirements. It is only

after that, that you combine all

of these man-defined

elements with a machine

learning driven

personalization.

seamless integration


Use over various devices must be seamless. By

saying devices, our mind swiftly goes to mobile

phones and tablets. The Internet of Things is still a

bit futuristic. Google glasses did not catch on,

thought interfaces are still a sci-fi phenomenon

and for now there is no fridge on the market that

can order its own groceries. We do however have

headphones, watches, home en voice assistants,

speakersystems, Apple and Google TV connectors,

cars and so on. Every device requires its own

interaction. When on the train you may want to

hear your balance through your headphones rather

than display the balance on screen on your mobile

device, with fellow passangers peaking at your

phone. When driving, you don’t want to take your

eyes off the road. Once at home, you want to

quickly attend the tasks you can’t do on the road.


A seamless experience doesn’t

just mean that all channels can

communicate in a way that fits

that particular bank and client,

it also means providing an

interaction that shows a

sensitivity to the way that

device is generally used. And

switching comfortably

between devices.

Your role as a bank is not just

to anticipate the use of your

online interaction on all those

devices, but also to take part

in the ecosystem of apps used

on those devices. There are

devices that need to be able

to execute payments or

impact expenditures – think

future fridges ordering

groceries or thermostats that

can define how much energy is

used. As a bankyou can

facilitate that and also use the

data of those devices for

improving the financial health

of the client. You can instantly

categorize the groceries as

household expenditures and

when the use of energy

increases, you can anticipate a

higher expenditure. As a bank,

you become part of the

services of someone else or

exchange information with

other product or service

suppliers.

future architecture


Utilizing new technologies also requires a technical

architecture that can support those technologies.

Three aspects can contribute substantially.


headless

All those devices make it

necessary to have one system

that pushes the content to

the various interfaces. The

bigger content management

platforms are already moving

toward a more headless

structure. Content

management itself is there

primarily offered as a SAAS

(Software as a service)

solution. The ‘heads’ or front-

ends in this structure are non-

SAAS. Running and maintaining

and upgrading a CMS is not a

corporate priority. The value

of the CMS is in the

functionalities it offers. They

can be supported perfectly

fine in a SAAS capacity.

Worrying about upgrades and

maintenance are a thing of the

past, whilst you still profit from

the features they offer.

Unique requirements are

supported by system

configuration. A headless

approach also decreases the

dependance from technology

and suppliers. Headless means the front-end of

digital interaction is separate fromthe

back-end. Because of that multiple

environments - like the interaction on

a smartwatch and the interaction on a

smartphone – can derive their contant

from the one and the same back-end

system.


More and more banks offer APIs. You can connect your UI to the bank features and database by using these APIs. If you want to support your clients actual life, not just your own product, you have to exchange information with other systems. To do that effectively, unlocking your services with a clearly described API is the way to go.

api – open banking


By linking various suppliers of

services in the life of a

consumer, you develop a

platform targeted to a certain

lifestyle. It may not even be

that relevant to the user

which ‘bank’ is behind it for the

finance part of things. As part

of the onboarding the client

links the banks that supply a

service to their household and

the data comes to life. Finance

is no longer a goal by its self

but part of a platform that

fulfills the needs of a very

specific target audience. The

consequence is that the bank

is less on the foreground and

the service and architecture

need to be able to serve such

a platform. From our

experience we can make

several recommendations.platforms

Offering interaction that combines

multiple data sources and intelligence

(like machine learning) requires a lot of

execution power. Each time your client

interacts with your application, it

collects the various datapoints and

executes on the intelligence, putting a

strain on the hardware and engine that

empowers your application.This is

important to keep in mind when

evaluating your platform and hosting

choices.

praktical tips for a future focused architecture

1. cloud based


Work as much cloud based as you can to be able to

cope with increasing user numbers. Your

architecture is evolving from supporting your

service and data to also supporting data and

services of others.

2. documentation


Provide both a good API and great documentation

to enable others to include your services into their

platform. Only with excellent documentation do

you become the preferred supplier for the

industry.

3. SAAS solutions


Make sure you are on the latest version of the

technology you use. Wherever possible, use the

SAAS solution to ensure this in the easiest way.

Scalability drives success. When you

start a platform as a bank with a

minimal userbase, with a minimal actual

adoption, you never achieve a

profitable business model. So it is your

task as a bank to make sure you can be

part of business propositions of others

that appeal to a client segment. Many

small ones do make a viable user base.

4. fluent omni channel


Provide a customer journey that’s ‘Fluent Omni

Channel’. Your client has to be able to fluently

switch between one channel and the other. You

have to have a platform that can unlock the same

information to various channels and receive

information from these channels as well. The only

way to achieve a fluent omni channels is when the

information and the processes are facilitated but

not exclusively executed in the front-end. Your

front-end enables access to your back-end, but

does not store information. Only then can you start

a chat conversation on a mobile app and continue

on a desk top computer, Google home or a phone

conversion and vice versa.


5. shared integration layerBuild a shared integration layer for multiple

channels. Often websites and apps have their own

dedicated integration layer for the backend.

Building a joint integration layer is not only cheaper

and more efficient, but it also forces you to take a

more universal approach to the architecture. This

decreases the risk of making a choice that limits a

feature to a single channel. You also serve the

omnichannel approach better, because all the

interfaces and channels use the same information.

Use open standards as much as possible, so third

parties can more easili integrate with your system.

Facebook, Instagram and other social

networks have succeeded partially

because of the social pressure that

arrises when many people use

something. People within their network

become scared to miss someting if

they don’t join the platform: they

experience Fear of missing out

(FOMO). Using emotions like FOMO and

peer pressure will become part of the

new banking world. Imagine people

sharing their donations to charities

with their network.

6. native or hybrid


Choose to develop native or hybrid consciously.

It’s a very strategic choice to build your app using

native technology or using a hybrid platform. Both

have advantages and disadvantages, though hybrid

is increasing in popularity due to the short

implementation time and lower costs. Building a

banking application on native platforms offers

advantages when there is already a substantial

framework in place. Our BankingRight solution

offers such a framework, providing a technological

head start that cancels out the efficiency benefits

of hybrid development.

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7. decoupling

Strive to ‘decouple’ as much as possible.

Decoupling is a slightly wider term than headless.

It’s not new, but still very relevant. Decoupling

makes it easier to unlock services to various

channels and other parties. It limits the complexity

and because of that lowers the costs of

maintenance in the long term.

Decoupling means that you develop

using separate components, each with

their own responsibility and specific

purpose. You build these components

in a way they can be used and replaces

separate from each other. You’re in a

sense cutting up your services in

individual lego blocks.

8. responsibilities and possibilities


Provide a team with the responsibility and the

enablement to produce a solution from start to

finish. Give them the tooling to do it and the

freedom to make their own choices to build the

solution as robust as possible. This warrants speed

and stability. You empower your team. This team

must be one that represents all disciplines, so the

choices they make are viewed from all necessary

angles. They will then make the right

considerations about effort versus result,

particularly when small concessions can make the

process much faster and cheaper. Devops too has

an important part in this multi-disciplinary team.

Only then can you ensure continuity and an

effective deployment to production environments.


The future of banking requires a new way of

thinking about products, new technology and a

different architecture.

We love to share the experience we’ve had within

We are you . From concepting and strategizing to

actual development and optimization we are here

to help you innovate the banking industry.

Chief Technology Officer

Joost Broekhuizen

[email protected]

+31 6 10 88 46 84

mailto:[email protected]


[email protected]

+31 20 34 20 042

weareyou.com

get in touch

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the future of banking technology€¦ · 4. fluent omni channel toekomst technologie bankieren...

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