Good morning. And we come to our division five problems correctly of digital finance world. And we run parallel are the fortune enterprise days. So for the next two days, we will have a series of sessions, keynotes panels, judicial assign world will run. So for keynotes and bedroom and for the drag, which can run in parallel this room and will just next door and the product enterprise space, our running the first floor. So just checking agenda, choose the room you prefer and actually prefer. And then we walk through all the topics for the morning.
We really see, I see a lot of people currently arriving probably's latest usual.
So we have four keynotes in the morning, starting with a short opening keynote by me and a keynote by Ziman Inman of KP G done one from clinics and then Frank from, and then after the coffee break, we will have two parallel directs, which I'll then introduce later on, we will display the housekeeping information during the breaks.
If you need more information, wifi information is just here and was said, I think the interest of time direct start, we always are keen to keep, keep the agenda or the, the times of the, the time of the agenda. So I'll try to, to remain on time for my keynote. My colleagues gave me a topic, was title, new tech, you challenges, new opportunity opportunities include us for the finance industry finding the right balance. And so maybe quickly introduce myself I'm Martin.
ER, I think I forgot this I'm Martin I'm monitors of, I think, as a principal Analyst Analyst.
So my role is on one hand guiding our research. And on the other hand, I'm also quite regularly involved into our advisory project that, and we focus as Analyst Analyst company. We focus on information security, so we try to, to really be on the trends. But as you can see this topics such as finance world and blockchain training, we go also beyond security.
Well, from, from what we do, a lot of the things are impacted by security. And I think also the world is impacted by security. I wanna with a pretty old quote, which still read somewhat provocative.
So, so the gates that back in 1994 banking is necessary. Banks are not, and we might, we might say there's something in there because when we look at this, so 90 90 for today is our 25 years and he maybe was a little earlier that statement.
But when we look at what happened over the past years, we saw a lot of change in the market occurring with a lot of auto change. And the question is, is it, I would honestly, I would add a big question mark here in the sense of banks are really not relevant, but I think the market's changing.
And I think this is the important thing, and I'm not sure about that. But one thing is for sure, that is, there's a massive change we are solving. And I think we, we all feel that in our daily lives. So when we go back 10 years and look at how we did our payments 10 years ago, and maybe look at how we do our usual payments today, that probably has changed for virtually every one of us.
So I have to say, I I'm, I felt I'm a believer in cash. And right now I do most of the transactions, even whatever to you or something. I do it by current and, and I'm old, even I do it.
So there is change in that. And I think that is something we, we need to understand. And when we look at what is happening in the finance industry, we, we are in a situation where we see lot of changes happening. And I think the, the biggest impact of all at the end is not technology is economics specifically in with the low interest rates that adds massively to the pressure financing financial organizations are feeling. And I think this is one of the, the biggest changes we are facing.
Then we have this technology end of, so we see more, more new technologies arriving, including the, the new market entrance obviously goes into the competitors part part.
And we saw this, this first blockchain wave over the last few years, we currently might be we a little bit in the face of disillusion regarding blockchain, but as usual, some of the things will come back. Some of the things we survived, certain things we really see where blockchains are here to stay or blockchain based solutions are. And it's probably better.
We see the new competitors and some of these are really big and really powerful. So apple or Facebook is Libra. These are not just so to speak small, small FinTech startups. These are very powerful layers. And I think it's very clear, even if you are a very large bank, if you're company a history of far and more of 100 years, you need to take enormous. They are players that can, to some extent are and will change the market. And then we have the regulation stuff.
So we have, obviously these days, this discussion about PSP two, again, when we did our first digital finance world, PSP two was pretty hot because it was run the first publication of the technical specifications.
It's interesting to observe that the I'm trying to phrase it, that the regulators and the supervis authorities were not strong enough to, to say, okay, let's really start this PS two, getting it really effective now so that they postpone out of their, their pressure, but at the end it will happen. And I think there's no way to avoid it. So if you're not prepared yet prepare for it.
So there are changes and maybe we look at technology, there are a number of technologies that impact change. I pick four, which I believe are specifically prevalent to what is happening. One is the anti sea of AI. And it is something which helps us doing a lot of stuff better than we did before. So I think it's very, very apparent in the finding. For instance, we see a lot of things around fraud detection, learning from patterns, understanding patterns, understanding what is happening here.
So fraud, our detection from our perspective is one of the areas where we see an immediate, very significant impact of AI, but we see many, many other areas. So one of our friends has as a startup, which is then looking more at analyzing sort of statements of people in communities around various companies to sort of make predictions around or, or, or so to replace sort of the, the financial Analyst. So to save by, by the automated Analyst is of sort of the crowd intelligence. So there many, many use around it. The other thing obviously speak data.
So we not only have more data, we are creating more and more data, but there us accountable, dealing with the data in AI and beyond that as well, we have digital identity. And so our history as Analyst is identity and access. So the digital identity. So I might be slightly biased on that, but I don't believe I am.
I believe that the identity of the people and the way you deal with the people and with the digital identities is extremely important for your success in business. If you don't do it right, you will fail.
It is essential that you deal with the people in a way they want to deal like touches in a minute again, then we have all this changes around payment technologies around cryptocurrencies, etcetera cetera. So cryptocurrencies, yes, there's this stuff we have around Bitcoin cetera, which is a little questionable, but there are other things happening. So when we look at Facebook liberal and initiatives like that, it's apparent that there will be, be more tries and more changes around that.
And again, it's interesting to see how this, this works. Obviously the, the, the states and their regulations will try to affect some of the, the impact, but you can't stop certain kind of change.
I will. So we have these technology areas which are changing and an important thing around that is from my perspective that we also look at what does it mean from a, the way we use data. So when you look at this entire data scene, we, we need to understand how we can create data.
And it starts from our perspective with understanding who owns the data, how can you gather that data and what can you do with that data? And we need to understand that this means that your users will sometimes request different ways. So some will share data very willing, and other will be reluctant, and you will need to, to get in, into sort of an agreement with them to get the data. So someone privacy, I don't want flexible sharing. We have the regulations piece when it comes to data.
So we need to be obviously both careful and creative on how can we use which type of data, what can we make with the data, what can't we do with the data.
It's also, the other thing is when we look at data, I think this is something when there's always this notion of money enterprises saying we want to get as much data as we can, because data is the new goal. If we have more gold, we are more rich and powerful. I think we shouldn't underestimate a little bit downside of one of the downsides of that, which means whos, the data has the liability.
And we see currently a massive uptake of solutions around identifying which data do I have where so understanding which data I own it all. So most organizations don't have a CRI on where is the PII where other regulatory, regulatory, relevant data. They just don't know it because it's spread across so many, whatever, big data links and analytics solutions and databases and other types of solutions that it's hard to get ed.
One of the things which will be also interesting.
And this is I think very much affecting many of the, the business cases that is to some extent, this situation, that we currently have, some of these very big players entering the market. So apple, Facebook, and others who try to enter this market in some way.
And it's, I think it's an interesting point to, to, to every respect on data, to think about how, how can you really work with, so you might say, okay, I trust support have to pay other stuff, but it might lead to you being trusted, a dependent party of a big player. So obviously there's part of regular regulator game. It's also part of the business is doing it right. And maybe sometimes partnerships are between peers are better. If you can succeed on that than trying to big one data will be used smart.
It becomes autonomous. We need to be very careful around it.
So data will play a very important role. And we need to think about how do we deal this data in this future? And we see a lot of change around data. I think this is very important also for the way we can shape sort of the, the new business, the finance industry. And the other thing we, we really need to understand this is still, I think, one of the most or one of the points, whereas still have the feeling that that many businesses are not clear enough about is the role of identity and how it helps you in the business.
My perspective is that you are always in a better position if you are a face to the customer or the consumer. So if you are the one who's hard to speak in big quota owns the consumer or a customer you're in a better position.
And then you trust delivering service in the backend. And I brought us up two years ago in my, my first keynote that she find came to PST two and party providers and all that stuff. Don't try to end up trust as a sort party provider.
My perspective back then was my hip was in west to provide the super suit cool front end for your users so that they do everything they want to do around finance, through you and accept that there will be other service providers behind. Don't try to lock in, lock them into your services. And I think when we look at how people think about identity, so identity in the mind of the customer, this is still very true. So people want to use different inflection identity. So they want don't want to reregister every time.
And that's also true for everything you run finance, it's totally boring if you need to register for a service.
And that is where you lose the people. So how can you enable people to do stuff? And that's not easy with KYC requirements to do stuff that without permanent registering, there are come of interesting things happening there. When you look at all the stuff, which is happening around blockchain, cetera, they do their solutions. They want to use the device of the choice.
And I think the only thing we know is that we don't know what the device of choice will be in two or three years from now. So when we look at all the more or less, I think in general, UN comments on, on the iPhone 11, I think there will be changes around that trust. Maybe this thing bigger and more cameras, probably not the future. Something will happen. We don't know what, but people who change and they want to use the device of choice. They want to have a choice around privacy security. So some will just say, okay, Alexei will say, okay, I'm very careful on that.
We want to use this integration payment, commerce. This is something where obviously defines business comes later much. We want to have seamless success.
Again, that goes very much back to this, what I identity saying. So how can we, we simplify all these processes around K by cetera. And currently I believe it's one of the, the biggest hurdles making this more convenient. And sometimes it's easier. I'm still the customer for small focus in life as Germany, which is just cause people know no. So most of the things happen rather informal, it's more complicated if you don't know the people. And sometimes there's more world life conversion. So this is changing.
And we need to think about how can we, can we serve the customer way to access all our services in a super simple way. And that is obviously the benefit of these other big ones or the others, which could come from model UI model, device support, new approaches, and think about it, support for what is happening.
So to sum it up, some five actions I propose of that clearly will be more than that for succeeding in the financial services market. So basically it's around innovation and it's around understanding the asset of customers.
So first thing is technology innovate really look at the new stuff, but don't innovate for the sake of innovation I had over the past years, I had a couple, not only a couple, several talks with people who said, we are looking for a blockchain use case. It's a total nonsense, never look for a use case for a technology. If you have a business problem that can be solved better with the technology fine, but not the other way wrong. So I understand the technology that a third point, I understand the technology to understand where they deliver a benefit of how you can solve your stuff better.
That's what you needed to do organization.
I think one of the big challenges specifically for establish organizations is to, to find the balance between being at trial and on the other hand, benefiting from all the experience. So banks are far better than KYC processes than small feedbacks are because they have a long history and regulations. Cetera. Good on that experience. So one of the biggest nonsense I've seen over the past years are digital factories, fictional units, which are totally decoupled from the organization.
They're sitting in Berlin in an either tower with no relation to reality and business frequently, only young people, no experience in this is nonsense. This is one of the most chaotic things you can do. You need to find the integration, you need to integrate it and to change all of the entire organizations, people empower your team. So reward innovation, not preserving the old stuff. And so that's a long journey, but we need to do it.
Customers think outside, in always think from your customer, that is the most important thing for more or less think from your customer.
What is what the customer wants still the banks they're saying, oh, the people don't like this OTP for anymore. What can we go into it? Whatever SMS R of band, why not saying we allow everything which is regulatory sort sort of acceptable and from a security perspective, acceptable as an authenticator, we are flexible because we want to support a customer, not saying what fits best into our existing technology infrastructure, but as the common thing, we still see, get rid of it. And look for partners. You will not succeed yourself, build partnerships, but don't lose control.
So you very careful about who are the right partners to work with. And what is the role of your partnership and think about it very carefully. Not because it's part of the someone, but right. We have a lot of research on that. You will get access to slides here. Some samples of recent, the research around red topics for this keynote. Instead I'm at the end of my keynote. And thank you for doing attention.
