Name: The fintech trends you can't afford to ignore
Uploaded: 2021-07-05T13:39:20.785Z
Description: Adoption of API technologies has supported the transition to software-as-a-service models, just as the Covid pandemic sent millions of customers onto digital channels. Claudio Cungi, of data specialist Strands, says artificial intelligence and machine learning are crucial to serving those customers.

Future Trends Shaping Fintech with Claudio Cungi of Strands.vtt

English

{{00:00:00}}
Claudio Cungi, I am the head of product at Strands.

{{00:00:03}}
At Strands we are FinTech company that actually is based also
in Europe and operate since a decade into the AIML industry.

{{00:00:15}}
And give us a brief overview for those who might not have been
at Finovate Europe, what strands demoed at the conference.

{{00:00:22}}
Sure.

{{00:00:23}}
Thanks for questions.

{{00:00:24}}
So we actually showed a use case that
was based on our new, fully flat.

{{00:00:30}}
SaaS platform.

{{00:00:32}}
Basically what we saw was a retail customer that has set a saving
goal on his mobile app on his PFM for buying a new Ducati, a new new

{{00:00:42}}
motorbike, but he actually received a notification that was telling
him that he was actually not likely to afford his this new motorbike,

{{00:00:50}}
even after aggregating multiple current accounts from multiple plans.

{{00:00:56}}
So the, what actually happened was that the bank was able again after
aggregating all these third-party accounts to offer him a real-time

{{00:01:07}}
loan, thanks to a real-time credit scoring that was actually enabled.

{{00:01:12}}
By analyzing and in reaching his transactions.

{{00:01:16}}
So what we actually have been doing was to orchestrate several modules
that are all available on our platforms we took we orchestrated

{{00:01:26}}
basically modules coming from our PFM, from our categorization
engine, from our access to account and from our end game.

{{00:01:35}}
This was basically what the use case was all about.

{{00:01:40}}
Okay, great.

{{00:01:41}}
So at the event, looking at the event in general,
what were some of the trends that resonated with you?

{{00:01:48}}
Sure.

{{00:01:49}}
I think that's we can actually summarize three key trends we can see
that are like streaking the industry, the financial services industry.

{{00:01:59}}
Of course, the first one is, is open banking.

{{00:02:01}}
Open banking is actually driving banks in searching for new use cases
that are of course based on PSD two, but it also goes beyond PSD two.

{{00:02:14}}
I would say a massive adoption of API technologies.

{{00:02:18}}
Again, due to PSD two in the getting enforced has supported the
transition to new models that are likely also SAS models that are

{{00:02:30}}
driving adoption of new services by the bank that are coming outside.

{{00:02:36}}
The banks legacies.

{{00:02:39}}
The second trend I would see is
definitely a radical change in the demand.

{{00:02:46}}
Meaning the customer.

{{00:02:48}}
The pandemic is on one side on course accelerating the drastic
I would say turn migration onto the digital channels that was

{{00:02:58}}
of course already there, but now the transition I would say is.

{{00:03:02}}
Getting a complete.

{{00:03:05}}
Okay.

{{00:03:05}}
On the other hand also the way customers wants to access liquidity.

{{00:03:10}}
So they want to get access to new
cash is accelerating and is changing.

{{00:03:17}}
Also gain through this massive rotation.

{{00:03:20}}
Digital channels for a moral also fintechs
and new services are arising per the industry.

{{00:03:27}}
This brings us to the third trends we can see is that the
competitive arena, meaning the, the way fintechs financial service.

{{00:03:37}}
Are changing is something that is, I
would say always more and more evident.

{{00:03:41}}
We can see like buy now pay later services,
software as a service challenger banks.

{{00:03:48}}
These kind of of players are actually shaking the industry.

{{00:03:52}}
I would say in, in a, in a sensible way, showing us that
the new ways are offering services from banks are needed.

{{00:04:03}}
Definitely.

{{00:04:04}}
Definitely.

{{00:04:04}}
So given that recent shift to digital that you mentioned how
have banks change, how they interact with their customers.

{{00:04:14}}
Sure.

{{00:04:15}}
Actually the trends we have been explaining shows
that customer are actually interacting with their

{{00:04:21}}
bank always more and more from a digital perspective.

{{00:04:25}}
So customer now for days expect to have always more focused
communications and tailored experience through digital channels.

{{00:04:36}}
Basically, they expect that the bank still knows them as
well as for instance, their personal banker might know them.

{{00:04:45}}
In this sense, we can understand that AI and ML
technologies are getting always more and more important,

{{00:04:52}}
meaning that it's going to be thanks to these kind
of technologies that we will likely be able as well.

{{00:05:00}}
To better understand our customers and to better tailor their needs.

{{00:05:05}}
We tailor proposition.

{{00:05:07}}
So if the bank is able to adopt a male instrument,
it will be likely also more be better able to

{{00:05:18}}
communicate tailored propositions via digital channels.

{{00:05:22}}
More over, it's making right predictions at the right
time via digital channels will likely be the predominant

{{00:05:31}}
way in our opinion to have a good relation bank customer.

{{00:05:37}}
And this is also likely to be the key source of revenues for the bank.

{{00:05:44}}
So being able to establish a trustful relationship
that will likely lead in selling product in the right

{{00:05:52}}
time, the customer needs it via digital channels.

{{00:05:57}}
Definitely.

{{00:05:57}}
Yeah.

{{00:05:57}}
That understanding the customer seems to be key, continues to be key.

{{00:06:02}}
So focusing in now on small business customers, do you think
that small business clients are looking for specific use cases?

{{00:06:12}}
Yes, definitely.

{{00:06:13}}
Let's think that small business customer are likely looking.

{{00:06:17}}
Specific use cases because they have specific needs.

{{00:06:21}}
Let's think of cashflow monitoring, cashflow, forecasting, tax
management, invoicing management, but also financial planning.

{{00:06:30}}
These specific needs are needs that I would
say are definitely focused on small business.

{{00:06:37}}
These needs will likely lead the bank in building new use cases
that are, of course not treatable, I would say to retake them.

{{00:06:47}}
In fact one more time.

{{00:06:49}}
I definitely think that AI and ML technologies will be a
massive enabler to to, to enable these kinds of use cases that

{{00:07:00}}
will likely also enable a new business model from the banks.

{{00:07:05}}
So consider also that furthermore, the one more time,
the, of course also the pandemic is spreading the needs

{{00:07:13}}
of liquidity and so reconciling payments with invoices in
order to suggest a potential credit collection or factoring

{{00:07:24}}
is likely use case that can be triggered by the bank
again in the right time when the customer needs it again.

{{00:07:31}}
Through AI or ML technologies.

{{00:07:35}}
So what we think is that small business customer will
likely experience a strong innovation in the upcoming years.

{{00:07:45}}
So looking now at banks needs and specific, how can
strands, help banks that are working on new business

{{00:07:52}}
models, support this change that you've been describing?

{{00:07:57}}
Definitely.

{{00:08:01}}
Excuse me, strengths operates in the AIML sector since a decade now.

{{00:08:07}}
And also thanks to the recent acquisition of
crib is now even more powering our platform.

{{00:08:14}}
Okay.

{{00:08:15}}
Consider that our solution aims in covering
all the needs that we have been talking about.

{{00:08:20}}
So our BFM basically enables retail customers getting
financial control for a site and wellbeing of their needs.

{{00:08:31}}
BFM is dedicated for small business customers and seeks supporting
their growth or are again financial Engager is our product

{{00:08:42}}
that basically turns out complex data into relevant insights.

{{00:08:47}}
So to enable that customer base
relationship, we have been talking about.

{{00:08:53}}
And open up, meaning we need to leverage on
multiple external services all in one place.

{{00:09:01}}
So 20 both banks to aggregate multiple sources of
data, like of course, transactional data coming from

{{00:09:07}}
third parties invoices, but also our kind of data.

{{00:09:12}}
Like for instance, also carbon footprint scores.

{{00:09:16}}
Everything from our perspective has to be available both as
a service or as a software, meaning that banks should be able

{{00:09:24}}
also to access it either as an external platform, as a service
or as a software so that they can manage it on their own.

Claudio Cungi, I am the head of product at Strands.

At Strands we are FinTech company that actually is based also
in Europe and operate since a decade into the AIML industry.

And give us a brief overview for those who might not have been
at Finovate Europe, what strands demoed at the conference.

So we actually showed a use case that
was based on our new, fully flat.

Basically what we saw was a retail customer that has set a saving
goal on his mobile app on his PFM for buying a new Ducati, a new new

motorbike, but he actually received a notification that was telling
him that he was actually not likely to afford his this new motorbike,

even after aggregating multiple current accounts from multiple plans.

So the, what actually happened was that the bank was able again after
aggregating all these third-party accounts to offer him a real-time

loan, thanks to a real-time credit scoring that was actually enabled.

By analyzing and in reaching his transactions.

So what we actually have been doing was to orchestrate several modules
that are all available on our platforms we took we orchestrated

basically modules coming from our PFM, from our categorization
engine, from our access to account and from our end game.

This was basically what the use case was all about.

So at the event, looking at the event in general,
what were some of the trends that resonated with you?

I think that's we can actually summarize three key trends we can see
that are like streaking the industry, the financial services industry.

Of course, the first one is, is open banking.

Open banking is actually driving banks in searching for new use cases
that are of course based on PSD two, but it also goes beyond PSD two.

I would say a massive adoption of API technologies.

Again, due to PSD two in the getting enforced has supported the
transition to new models that are likely also SAS models that are

driving adoption of new services by the bank that are coming outside.

The second trend I would see is
definitely a radical change in the demand.

The pandemic is on one side on course accelerating the drastic
I would say turn migration onto the digital channels that was

of course already there, but now the transition I would say is.

On the other hand also the way customers wants to access liquidity.

So they want to get access to new
cash is accelerating and is changing.

Digital channels for a moral also fintechs
and new services are arising per the industry.

This brings us to the third trends we can see is that the
competitive arena, meaning the, the way fintechs financial service.

Are changing is something that is, I
would say always more and more evident.

We can see like buy now pay later services,
software as a service challenger banks.

These kind of of players are actually shaking the industry.

I would say in, in a, in a sensible way, showing us that
the new ways are offering services from banks are needed.

So given that recent shift to digital that you mentioned how
have banks change, how they interact with their customers.

Actually the trends we have been explaining shows
that customer are actually interacting with their

bank always more and more from a digital perspective.

So customer now for days expect to have always more focused
communications and tailored experience through digital channels.

Basically, they expect that the bank still knows them as
well as for instance, their personal banker might know them.

In this sense, we can understand that AI and ML
technologies are getting always more and more important,

meaning that it's going to be thanks to these kind
of technologies that we will likely be able as well.

To better understand our customers and to better tailor their needs.

So if the bank is able to adopt a male instrument,
it will be likely also more be better able to

communicate tailored propositions via digital channels.

More over, it's making right predictions at the right
time via digital channels will likely be the predominant

way in our opinion to have a good relation bank customer.

And this is also likely to be the key source of revenues for the bank.

So being able to establish a trustful relationship
that will likely lead in selling product in the right

time, the customer needs it via digital channels.

That understanding the customer seems to be key, continues to be key.

So focusing in now on small business customers, do you think
that small business clients are looking for specific use cases?

Let's think that small business customer are likely looking.

Specific use cases because they have specific needs.

Let's think of cashflow monitoring, cashflow, forecasting, tax
management, invoicing management, but also financial planning.

These specific needs are needs that I would
say are definitely focused on small business.

These needs will likely lead the bank in building new use cases
that are, of course not treatable, I would say to retake them.

I definitely think that AI and ML technologies will be a
massive enabler to to, to enable these kinds of use cases that

will likely also enable a new business model from the banks.

So consider also that furthermore, the one more time,
the, of course also the pandemic is spreading the needs

of liquidity and so reconciling payments with invoices in
order to suggest a potential credit collection or factoring

is likely use case that can be triggered by the bank
again in the right time when the customer needs it again.

So what we think is that small business customer will
likely experience a strong innovation in the upcoming years.

So looking now at banks needs and specific, how can
strands, help banks that are working on new business

models, support this change that you've been describing?

Excuse me, strengths operates in the AIML sector since a decade now.

And also thanks to the recent acquisition of
crib is now even more powering our platform.

Consider that our solution aims in covering
all the needs that we have been talking about.

So our BFM basically enables retail customers getting
financial control for a site and wellbeing of their needs.

BFM is dedicated for small business customers and seeks supporting
their growth or are again financial Engager is our product

that basically turns out complex data into relevant insights.

So to enable that customer base
relationship, we have been talking about.

And open up, meaning we need to leverage on
multiple external services all in one place.

So 20 both banks to aggregate multiple sources of
data, like of course, transactional data coming from

third parties invoices, but also our kind of data.

Like for instance, also carbon footprint scores.

Everything from our perspective has to be available both as
a service or as a software, meaning that banks should be able

also to access it either as an external platform, as a service
or as a software so that they can manage it on their own.

Adoption of API technologies has supported the transition to software-as-a-service models, just as the Covid pandemic sent millions of customers onto digital channels. Claudio Cungi, of data specialist Strands, says artificial intelligence and machine learning are crucial to serving those customers.

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Claudio Cungi

Head of Product

Claudio talks about how the company works


Chapter 1: Background to Strands

Claudio discusses trends that resonate with him

Chapter 2: Noticeable trends

Claudio expands on the change in customer interaction with banks

Chapter 3: Banks and customer interactions

Claudio talks about how Strands can help embrace and support the changes in the financial sector and external environment