the impact of digital technology on financial services
TRANSCRIPT
ACOI PresentationThe Impact of Digital Technology on Financial Services
@TSSG_WIT@BarryMDownes
Barry Downes, CEO 25/11/2015
Agenda
• TSSG Introduction
• Key Technology Trends
• The Impact of Digital Technology on Financial Services
• Opportunities
• Next Steps
www.tssg.org 2
About me• CEO of TSSG, an International Research Institute hosted by WIT.
• Previously, Founder of FeedHenry Ltd, a mobile cloud platform, sold to Red Hat Inc. (NYSE: RHT) for $82 million in 2014.
• Also set-up and led TSSG’s Venturing team which has produced 14 start-ups with 3 additional launching in the next 12 months.
• Originally worked in the USA for Infinium, a leading ERP software company.
• On return to Ireland worked for AIB Bank on their Retail Banking Systems and later led the redevelopment of their Home Mortgage System as a consultant for an AIB and IBM venture called Resolution Technology.
• Later delivered Insurance systems for RSA in Dublin and Scottish Widows in Edinburgh as a consultant for Phoenix Technology Group.
• Been out of Financial Services for the past few years but coming back to the community and looking at it afresh both from the perspective of TSSG supporting the industry through innovation projects and also that of an investor.www.tssg.org 3
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TSSG• International Research Institute hosted by WIT. • Founded by Prof Willie Donnelly in 1997 and led
by CEO Barry Downes. • Has 140+ staff and is 100% self funded.
• Expertise in key areas relevant to EI/IDA TIME cluster:
• networks,• mobile and• datamining and security services.
The Telecommunications Software and Systems Group (TSSG) at WIT
• Completed over 110 direct industry projects for start-ups in Ireland over the past 3 years and has spun out a number of leading international start-ups such as FeedHenry Ltd.
EXPERTISE
• On doing world class research and innovation - then turning this into economic impact in the South East and Ireland by supporting EI and IDA clients and by creating and supporting start-ups.
FOCUS
IMPACT
May 1, 2023
Innovation Model
Research Units
www.tssg.org 6
Networks Mobile Communications Services
TSSG Core Focus Areas
Network VirtualizationSoftware Defined Networking (SN) & Software Platform & Infrastructure as a Service
Mobile Cloud Platforms (PaaS) and advanced mobile applications
Communication Services Platforms (PaaS) and
applications e.g. Web RTC
TSSG Core Focus Areas
Architecting and Engineering advanced
services in mobile, IoT and security.
VR/AR Communications, 3D User Interfaces,
Education, Simulation and enabling hardware
Predictive Analytics Social Network Analysis
Data Security and Privacy
Services Engineering
Virtual and Augmented Reality
Data Mining and Security
Drivers ofInnovation in Financial Services
ICT Drivers
• Cloud Computing
• Mobile Technology
• Micro-services Architectures
• Big Data
• IoT
• Security
• BitCoin and BlockChain
From Systems of Record
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TRANSACTIONAL
Source: RedHat
To Systems of Engagement
www.tssg.org 12Source: RedHat
It’s a Changing World
www.tssg.org 13Source: RedHat
Emergence of bimodal or 2 Track IT
www.tssg.org 14Source: RedHat
Mobile is the catalyst – Node.js is the tool
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1)Benedict Evans, Mobile is Eating the World(October 2014) http://benBevans.com/benedictevans/2014/10/28/presentaion-mobile-is-eating-the-world
2)IDC Reveals Worldwide Mobile Enterprise Applications and Solutions Predictions for2015. http://www.idc.com/getdoc.jsp?containerId=prUS25350514
Source: RedHat
Micro-services Architecture
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Cloud, API, Modular, Scalable – ideal for the Payment Services Directive
Source: Pivotal
API
PSD2
• As a result of new EU rules – PSD2
• Third Parties will soon have direct access to bank accounts and
• Will be permitted to initiate payment orders on these accounts on behalf of account holders.
• This potentially puts distance between you and the account holder and could deprive you of access to valuable transaction data.
• And you will need to provide an API to these Third Parties.
Data is at the Core
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TSSG Data Lifecycle
www.tssg.org 19
End to End unified Communications
Sensor Networks
Wireless access Networks
Networkoptimisation
RDBMSNoSQLGraph
Data Storage
SemanticAnalysis Sentiment
Analysis
Context Enrichment
Location Based
Data Enrichment
Distributed Non-Distributed
PredictiveAnalytics
Social NetworkAnalytics Decision
SupportData Analysis
Context Awareness
Recommendation
Prediction
TrendingData
ServicesPrivacy Trust
Security
Infrastructure
Test-beds
Example - TSSG Ceartas Project • Using Social Network Analysis in the Criminal Intelligence
Domain– Internal Intelligence
• Land Registry• Ports Authority• Revenue• Court Transcripts
– Open Source Intelligence (OSINT)• Newspapers• Internet Forums• Social Networking Websites
• Uncover people and relationships previously unknown to the authorities.
• S.N.A. techniques to discover social patterns in criminal organisations.
www.tssg.org 20
05/01/2023 21
TSSG WIZEONI Project• Problem
– IoT contributing to digital management headaches for individuals: touch point fragmentation, privacy concerns
– Privacy & Security are increasingly under scrutiny and are acting as inhibitors to enterprise adoption of IoT
• Solution– To develop a commercially viable Data
Platform as a Service (DPAAS) to address problems of the IoT industry.
• Impact– Created a DPAAS solution that allows
enterprises to deliver meaningful IoT services in a privacy preserving, scalable manner .
www.tssg.org
Driving Digital Transformation
www.tssg.org 22Source: RedHat
But don’t forget Security
www.tssg.org 23Source: KPCB
But don’t forget Security
www.tssg.org 24Source: KPCB
TSSG EU Programme IPACSO
www.tssg.org 25http://ipacso.eu/
Software is Eating the World
www.tssg.org 26
And Mobile is going to be key - here is why …
www.tssg.org 27
Millennial Smartphone Behavior, USA, 2014
Source: KPCB
Mobile Users 1995 -> 2014
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How Software is Eating the World
www.tssg.org 29
Tweet from Aaron Levie - Box
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Example – Offline Payments
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Example – Online Payments
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Impact on Financial Services
Let’s look at this from an Open Innovation Perspective
www.tssg.org 34Source: Henry Chesbrough
Where is FinTech Innovation happening?
www.tssg.org 35
Fintech Start-up Sector Map
www.tssg.org 36
FinTech Funding last 5 Years
www.tssg.org 37Source: CBInsights
www.tssg.org 38
Top UK Start-ups 2014
No of Companies by Category
www.tssg.org 39
FinTech start-up Maturity
www.tssg.org 40
No of Investments by Top FinTech Investors
www.tssg.org 41
FinTech Unicorns
www.tssg.org 42
Insurance Sector Map
www.tssg.org 43
Which Sectors are seeing the most innovation?
www.tssg.org 44
BitCoin and BlockChain
What is BitCoin and BlockChain
• Video
• https://www.youtube.com/watch?v=YIVAluSL9SU
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BitCoin Sector Map
www.tssg.org 47
Where is BitCoin Innovation Happening?
www.tssg.org 48
Innovation
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Adoption by Banks
www.tssg.org 50
Opportunities and Next Steps
Summary
• Significant forces driving change – cloud, mobile, big data, blockchain.
• Significant innovation occurring in the FinTech start-up sector outside of Ireland that may not be that easy to see right now but which will have a big impact on business in the future.
• Significant challenges – Security, existing systems, regulation.
• Important new EU rules – PSD2
• = Major threats.
A motivating Example
www.tssg.org 53
Let’s look at this from an Open Innovation Perspective
www.tssg.org 54Source: Henry Chesbrough
Some Options
www.tssg.org 55Source: Avinash Swamy
Some Questions for You - Mobile
• Do you have a Head of Mobile and do you already have apps deployed for your customers?
• If so how do they compare in usability and engagement to the apps customers use everyday?
• Can your customers make P2P Payments, regular transfers and pay bills from their mobile today?
• Can you approve a personal loan for an existing customer with a salaried account in real time, instantly on mobile?
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Other Questions• Do you have a Venture fund that invests in FinTech inside and outside of
Ireland?
• Do you have a skunk-works team that can create new and related FinTech start-ups that can do things the existing business might find hard to do?
• Do you have a FinTech Incubator that attracts start-ups to co-locate with your organisation?
• Have you put a team in place to make your organisation easier to partner with for start-ups?
• Do you have a team in place that is analyzing how your organisation can compete with the Unicorns when they eventually do enter the Irish market?
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Working with TSSG
Thank You
Questions?
www.tssg.org 60
Barry Downes, CEO
barrydownes
@barrymdownes
BarryMDownes
+353 51 302932
+353 87 9075535