Scotiabank, Koho and the Digital Finance Institute Determine the Future of Digital Banking

RFi Group research shows that, for the first time globally, digital applications have overtaken branch applications across retail banking products. This is a game changer, and having the best digital transformation strategy is now more important than ever.

At the Global Digital Banking Conference, taking place in Toronto on 14^th September 2017, global and local experts will share their knowledge and case studies to help paint of picture of how to win the digital customer of the future.

Ahead of the conference, RFi Group sat down with headlining speakers to discuss their views the most pertinent issues in digital banking today.

• Ellis Odyyn, Chief AI Officer, Digital Finance Institute 
• Daniel Eberhard, CEO, Koho
• Shawn Rose, EVP, Head of Digital Banking, Scotiabank

What does the future of banking look like to you?

Shawn: Providing those in need with quick access to affordable financial solutions is really exciting. The balance point of doing this work, while managing the risk profile of a large 185-year-old bank can be daunting, but we believe that we can keep our shape while doing some good.

Daniel: Banking needs to do three things very well; reorientate to actually solve the customers pains vs driving margin, automatically optimize our financial lives & to be completely unobtrusive. Day to day banking is boring enough that we shouldn’t have to think about it. 

Ellis: I’m a millennial and I’m really excited about what the future of banking means for millennials. My generation would rather go to the dentist than walk into a bank for old fashioned financial services. Everything we do is on a smart phone and we (my generation) expect banking to be that way too, in a friction-free way. To me the future of banking is on a smart phone and is driven by Artificial Intelligence.

What technology will most disrupt the market?

Ellis: Without question, AI is disrupting the market in a significant way, causing enormous amounts of changes within banking from closure of physical branches, to onboarding using machine learning techniques, and even chatbots that provide insurance services in less than 2 minutes. AI will significantly reduce jobs in finance and so we have some interesting times ahead. 

Shawn: I don’t know that it will be a single technology that will ultimately disrupt the industry. Blockchain comes to mind, but that is as much an enabler as it is a potential disruptor. Same goes with chat platforms or peer-to-peer lending and transfer solutions. We can partner with them, however, what really ‘keeps me up at night?’ are Google, Facebook, and Amazon (or all three) entering the marketplace. 

Daniel: I don’t think it’ll be a specific technology, as much as a collective process of information dissemination which results in increases in consumer expectations. The power of any new innovation is limited by the consumer demand and a big part of the work that needs to be done is simply educating consumers. 

What excites you most about working in FS today?

Daniel: Just how much work there is to do. Even with all the changes we’ve seen of late, most are fairly superficial and just scratching the surface of what’s possible. 

Ellis: The future of the technology, and what it means for Financial Services. When I give talks about ‘what banks need to know from a millennial’ to Financial Institutions, the FIs are actually really excited about learning how they can leverage emerging tech and AI to target my age group. 

Shawn: I see us moving away from traditional product offerings (cards, mortgages etc.) and more toward a holistic single view of the customer, where services are generated around serious life events. School, marriage, home, children etc. A virtuous circle around life journeys. Can a traditional bank make the 5 perfect products for you on this journey? I hope so. Coupled with driving incredible efficiency in creating these products and services, I am really looking forward to what we can bring back to the customer in terms of savings. 

I see all of this bringing incredible transparency and demystifying finance. It’s a HUGE gap today, but when our products become more human, so will our industry. I’m excited just saying this!