FS must be proactive, not reactive, FinTechOS CEO says

By Sunniva Kolostyak

Following the first-ever FinVision conference, Teodor Blidarus, Founder and CEO at FinTechOS, speaks to Sunniva Kolostyak about the digital transformation specialist’s initiatives, the impact of COVID-19, and the need for financial services to implement proactive strategies.

– What has this year’s FinVision conference been focusing on?

“Our inaugural three-day FinVision conference was focused on the practical reality of innovation within financial services. We wanted to create an event and give the industry a platform to discuss and debate disruptive global trends, technological innovations, and digital initiatives for our brave new world. Our sessions covered everything from creating data-centric banks to the AI-powered insurer and how Gen Z will reshape the future of financial services.

“The first day of the event was focused on banking, and explored topics such as the shift from Open Banking to Open Finance, how to build the customer-centric bank of the future, the next generation of SME banking in the new reality.

“Day two was tailored for the insurance industry, with themes covering the importance of data-driven insurance and transformation for smarter customer strategies.

“The final day was focused on the technology innovations empowered by FinTechOS and its ecosystem of partners and customers, and included hands-on product demos and selected customer cases across a series of virtual roundtables and webinars.

“We were so pleased to see so many leaders within the fintech industry register for our event. Those that missed it still have the opportunity to catch up, as all sessions are available via our on-demand portal.”

– What are the biggest challenges facing financial services at the moment?

“For both the banking and insurance sectors, we have seen the first-hand the impact of the COVID-19 pandemic on those not digitally astute. From insurance companies inundated with call centre calls, through to SMEs unable to access loans and consumers abandoning applications to financial service applications, firms have had to scramble to plug the gaps they needed to operate, and as a result, have seen costs sky-rocket.

“It’s been a wake-up call for all. The financial services sector needs to be less reactive and instead devise long-term proactive strategies focused on clear change. For financial services organisations held back by regulations and legacy technologies, now is the time to deliver end-to-end digital customer and employee experience. Digitisation isn’t a journey with a beginning, middle and an end – true digitisation requires constant change.

“We hope to have made a real difference to all our FinVision participants, helping them to understand best practices, discuss innovations, as well as giving them the opportunity to learn from their peers.”

– What different trends have emerged to address these challenges over the past months?

“We’re seeing an opening up and democratisation in the way that financial services are built, distributed and served. And the catalyst for this has been Open Banking, which has ignited innovation across the globe and put customers in control of their data. In the UK alone, two million customers are now using Open Banking-enabled products.

“And while Open Banking is just getting started, Open Finance is fast approaching. Open Finance would extend Open Banking principles to give consumers and businesses more control over a wider range of their financial data. This will encompass savings, insurance, mortgages, investments, pensions and consumer credit, effectively bringing the wider financial services sector under Open Banking principles.

“We are stepping away from transaction-led model, closed environments, products and systems, and heading towards data-led models, open environments, customer journeys and platforms.”

– During the conference, you launched FinTechOS 21, or Lighthouse. What is it, and how does it fit into the current climate?

“On the final day of FinVision we announced the launch of our Lighthouse product, which is an end-to-end platform that accelerates digital transformation for banks and insurers.

“We know digital transformation is a top priority within the financial services sector, but strategies are often long, expensive, and complex. We’ve launched Lighthouse as a way to help firms adapt to customer and societal demands quickly, and cost-effectively.

“Lighthouse includes a range of product and UX enhancements and that allow institutions to bring innovation to market faster, all while removing overdependence on technical teams. With Lighthouse, institutions can develop new digital product lines and customer journey prototypes fast, and still maintain a high level of security and compliance – ensuring they keep up with demand for digital and personalised customer experiences.”

– How should banks and institutions be looking at digital transformation going forward?

“Going forward, institutions will need to have a fresh and new approach to digitisation. It’s not about a single overhaul, but rather, lots of small changes that can be scaled rapidly without impacting on operational resilience or requiring millions of euros of investment. We believe in the mantra ‘start small, think big, and scale fast’.

“Navigating the digitisation of financial services can be an overwhelming task. We hope FinVision was able to help with pragmatic advice and insights.”