Financial Services is an industry driven by disruption. Its history is rife with examples such as low-cost brokerage businesses, ETF investment vehicles, and Gramm-Leach-Bliley regulations. New fintech firms, AI-powered robot advisors, and regulatory mandates such as Open Banking are today’s catalysts for change, with new disruptions sure to come tomorrow. Financial Services firms are challenged to continuously innovate their businesses and applications to keep pace with the competition.
So, the question becomes, how do firms apply technology to evolve their applications to continue as winners and avoid falling behind? Said another way, in an industry driven to deliver alpha (or the very best), where might financial services firms create alpha by disrupting their applications?
Netting it out, it seems that firms have three clear options. And as any good portfolio manager would advise, intelligent diversified investments across all three is best.
Option One – Deliver Better Experiences from Existing Applications
Where core business functions are already enabled, a closer look at these applications can often reveal the opportunity to interconnect their data and capabilities in new ways to form new applications and user experiences that will delight (internal and external) customers and set the firm apart from its competitors.
- BMO Financial Group, one of Canada’s preeminent financial institutions, used TIBCO ActiveMatrix® BPM to automate workflows and resource assignments, dramatically shortening approval times for commercial loans and mortgages, resulting in significant customer satisfaction improvements.
- O-Bank, formerly Industrial Bank of Taiwan, extended their TIBCO BusinessWorks™ and TIBCO Enterprise Message Services™ driven commercial banking applications to launch a completely new, smartphone-enabled, virtual retail banking line of business, adding 130,000 retail banking customers in the first year.
Option Two – Drive Sounder Insights via Data and Analytics Applications
Financial Services firms have long relied on data and analytics technology for innovative insights. Analyzing data in back-office applications to understanding what happened in the past drove the first wave of financial services BI and analytics innovation. Typical examples include positions and trade reporting, commissioning, compliance, and more. Understanding what is happening now, drove the second wave as access to real-time market data proliferated. Analyzing data to better predict future outcomes (client churn, for instance) and prescribe more favorable results (a timely offer that mitigates churn) is driving the current wave of financial services analytics innovation.
- KuveytTurk Bank, a Turkish bank with retail, corporate, treasury, international, and investment banking lines of business, leveraged TIBCO Streaming® to integrate data from 25 institutions and applications into new trading algorithms, doubling FX volume and enabling Turkey’s first Gold Exchange market.
- AA Ireland, Ireland’s leading provider of home, auto, and travel insurance, used TIBCO BusinessWorks™ integration, TIBCO Streaming® event processing, and TIBCO Spotfire® analytics to include real-time customer driving data in their pricing algorithms, delighting their best customers and increasing profits.
Option Three – Make Applications Smarter with Artificial Intelligence
Adding new Artificial Intelligence and Machine Learning (AI/ML) technologies to existing applications is a third way financial services firms can use technology to drive disruption.
For example, without AI/ML, financial advisors spend significant time searching for and manually analyzing information. This might involve dozens of steps and hours of research time, including calls to the capital markets desk, visits to the firm’s research portal, and reviews of other key data sources. AI/ML algorithms can automatically analyze and filter relevant data and provide specific recommendations directly to a firm’s advisors, thereby improving client returns, while saving the firm time and costs.
- KB Card, a subsidiary of South Korea’s leading financial group, applied TIBCO Spotfire® machine learning algorithms and visualizations to analyze customer data and automatically generate personalized credit card offers that deliver millions in new revenues.
- A top wealth management firm that provides advice, products, and services to individuals, businesses, and institutions, leveraged TIBCO Data Science algorithms to rapidly analyze large incoming data volumes—everything from internal research to external market data—and score investment opportunities based on their relevance to individual investor’s needs.
Learn how to Accelerate your Application Innovation Today
Read this white paper to learn more about how TIBCO is fueling innovation in the Financial Services industry today and how we can help firms continue to innovate with technology that delights their customers, drives sounder insights, and makes their applications smarter.
To learn more about TIBCO in the financial services industry, see https://www.tibco.com/solutions/banking for Banking and https://www.tibco.com/solutions/algorithmic-insurance for Insurance.