Everything about digitization in the financial industry

Part II: Need for Change – Transformational Needs and Best Practices for Enterprises Using Distributed Ledger Technologies

Distributed ledger technology (DLT) makes it possible to guarantee the integrity of transactions without a central authority. This innovation is therefore seen as having the potential to revolutionize existing financial market infrastructures in the long term [1]. However, the adoption and use of DLT-based platforms has multiple implications for businesses. The technology brings not only technical but also organizational challenges that require new competencies in various business functions. In this article, we explain which challenges affect which corporate functions and which best practices a company can follow when implementing change.

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Decentralized Identity – Secure Digital Identity Management?

Everyone is familiar with the following situation from everyday life: financial service providers or service providers (e.g., mobile network operators) offer services only for registered and verified users. The consequence: In order to be able to prove one’s own identity online, a new account must first be created using an e-mail address and a selected password. The process of creating and verifying different accounts results in a single user having many online identities and involves almost as many identity providers. Above all, the protection of one’s own data falls by the wayside in many cases. The advancement of blockchain/distributed ledger technology in recent years has given rise to a new approach to online identity processing and verification, Decentralized Identity. This post explores the concept as well as the underlying technology and highlights advantages over the traditional use of identity providers and user accounts.

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Race for the Pole Position in the Metaverse – Business Opportunities for Banks

In the media, Meta (formerly Facebook) is positioning itself very strongly as the future metaverse, and it seems as if Meta is building the “one” metaverse. This impression is deceptive. In this article, we will talk about what a metaverse is, which competitors are currently building metaverses, and what opportunities they open up for banks.

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Opportunities & Challenges for Banks in the Context of Decentralized Finance

The term decentralized finance (DeFi) refers to a decentralized, blockchain-based architecture for processing financial transactions without intermediaries. we will show in this article why offering access to digital assets and DeFi business models is worthwhile for financial institutions and what challenges they have to overcome in order to provide such an offering to their customers. Based on practical examples, positioning possibilities for regulated institutions will be presented as well as concrete opportunities and challenges.

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Digital Twins – The Merging of the Real and the Virtual World

The amount of data about real products, processes, and services has increased dramatically in recent years. This opens up new possibilities for planning, simulation and analysis. For this purpose, more and more companies use the concept of a digital twin. But what are digital twins and what potentials do they offer at the enterprise level, especially in the financial industry?

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Core Banking Radar – “Vault Core – a hyper-configurable neo-core banking system from Thought Machine”

In cooperation with the Business Engineering Institute St. Gallen (BEI), the Core Banking Radar of Swisscom has been monitoring the system support of banks since 2017, and analyses the most relevant systems for the Swiss market using a comprehensive assessment model. The latest publication of the Core Banking Radar looks at Vault Core from the U.K.-based company Thought Machine, which aims to adopt best practices in software development from technology companies with a cloud-native platform and give banks the flexibility to develop any product with smart contracts.

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Gaia-X – A Revolution for the Financial Industry?

Cloud solutions are faster, more flexible and less expensive than on-premise solutions. However, the best-known cloud infrastructures – Amazon Web Services (AWS), Google Cloud, Microsoft Azure and IBM’s Red Hat – all have one thing in common: they are headquartered in the USA and are therefore subject to the (decidedly lax) US data protection “law”. This makes using the services difficult from a data protection perspective, especially for financial institutions. The European Gaia-X project could be a real alternative.

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Successful Cooperation: What Banks and Fintechs Need to Consider

For a long time, fintechs were seen as a direct threat and competitor to traditional banks due to their high innovative capacity and the disruption potential attributed to them. In recent years, however, it has become apparent that both fintechs and banks are more interested in cooperation than in competition. However, there are factors that can cause a cooperation between a bank and a fintech to fail. How to prevent this is the topic of this article.

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Strategic Positioning in the Insurtech Jungle
– Results of an Insurtech Analysis

Insurtechs are constantly making news in the financial world. Whether they are seen as the big competitor to insurers, exploiting the limping digitalization of the big players, or helping conventional insurers to arrive in the 21st century, startups are bringing a breath of fresh air to the industry through new technologies such as artificial intelligence (AI) or natural language processing (NLP). Due to the abundance of new services and business models, it is appealing from both an entrepreneurial and scientific perspective to gain an overview of the structure and innovative capacity of the market.

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Classification of Blockchain-Based Applications: A Conceptualization from a User Perspective

Despite many known advantages, it is still difficult, especially for practitioners, to identify concrete application areas for blockchain-based applications. This article takes this as its starting point and presents a sector-independent typology of application fields, which not only serves to analyze existing blockchain applications, but also provides users with an orientation as to which general possible uses there are for the blockchain and how complex an initial implementation of the respective applications can turn out to be.

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20 Years Agile Manifesto – An Overview of the Values & Principles

On the occasion of the 20th anniversary of the Agile Manifesto, I would like to take another look at the central concepts of the document. Because even after this long time, the values and principles contained represent the basic tenets of the agile working method and can be found in many different agile methods, such as Scrum, Kanban or SAFe.

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The Robo-Advisor – A Substitute for the Human Investment Advisor?

In my last post, I explained what characteristics distinguish the robo-advisory process from that of traditional client advice provided by a human advisor. Today, I explain how exactly these characteristics affect the traditional client advisory process and change it to create the robo-advisory process that I presented in the third post of this series. Finally, I answer the question of which of the two advisory processes is the better one.

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What Distinguishes a Robo-Advisor?

In my last post, I detailed the customer advisory processes for a human advisor and a robo-advisor. Today I explain what causes these differences. This step is important to be able to understand and explain the differences between the two advisory processes and then, in a next step, to be able to derive the impact of robo-advisory services and to evaluate the advantages and disadvantages of robo-advisors compared to the traditional customer advisory process.

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Robo-Advisors vs. Traditional Customer Advisors

My last post before the Christmas break was about which business models and strategies a robo-advisor can align its offering with. Today, I will present the customer advisory processes of traditional, human banking advisory services and robo-advisors. In the rest of the series, I will then discuss the impact caused by robo-advisors which form of advisory is better and whether robo-advisors will be able to replace bank advisors in the near future.

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What Is a Robo-Advisor and Why Should We Care?

In the course of the change from a personalized customer experience at a bank to the desire for standardized and digitized processes, “robo-advisors” are becoming increasingly important. Today’s article looks at how robo advisory services are defined and how they came into being, whether they are serious competition for banks, and what stage of development robo-advisors are at now.

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Agile Corporate Culture – What’ s It All About? (Part 2)

The culture of a company is the beliefs, values and behaviors that shape the social and psychological environment of the organization. As a 2017 Capgemini change management study shows, the companies that transform most successfully are also those that involve their employees in the transformation process from start to finish and thus actively promote a change in corporate culture. Many studies from science and practice also make it clear that the path to an agile culture is not an easy one. In a recent article, the consulting firm McKinsey has published four lessons learned from its experience with clients around the world that offer a good approach to how companies can foster the development of an agile culture.

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