Activating Intelligence in Financial Services

ByWilliam Genovese

June 10, 2020

William Genovese

In part 5 of this vlog series, I focused on platform architecture as it relates to financial services, especially in relation to the pandemic. (Click the following link to take you to the first four parts of Activating Intelligence in Financial Services.)

In part 6, I look at the four-quadrant view of next-gen delivery and technology models.

Four Quadrant: Key Messages

  1. Leaders and masters of digital business models are blurring and crossing industry lines as they move out of their existing core industry and offer newly improved digital services.
  2. They are in the leaders’ quadrant of being the ecosystem driver as they have a) greater familiarity with customers as they are leveraging the data they have to offer more tailored, cheaper, and better services for less cost or even free; b) through technology and open standards and secure platforms, they are scaling and growing exponentially through massive complex networked systems c) most importantly, they are controlling and mastering the value chain, offering more digital embedded financial services for customers anytime/anyplace from any access point.

Transcript for Part 6

So, when we look at next generation digital business model types and looking at this in context and retrospectively to where we’ve been and where we’re typically based on a four quadrant view, you have less familiarity with the customer. You’re categorized as a supplier.

If you move up the value chain, you move more into an omni-channel business model. You’re able to deliver your unique products and services through different access points, the phone, the laptop, or in a store brick-and-mortar situation. You can then move over to become the ecosystem driver. And this is where we have the Chinese giants Alibaba, Tencent, Huawei to a certain degree and in the west, Amazon, Google, and so on.

You can control a certain region or a certain set of strategic control points based on your business strategy and you become a modular producer. To become an ecosystem driver you have more familiarity with customers and it’s typically a more complex network system in terms of technology and data management and convergence.

Business models of the future will have four characteristics. They’re going to be obviously customer-centric, operationally excellent and resilient, especially in context to supply chains globally networked. So there’s not going to be walled gardens between countries or regions. The most successful business models and technical delivery models of the future will be able to meet multiple regulatory demands and challenges across regions and countries. And obviously they’re going be using technology, the convergence of data and technology, and emerging technology to be rapidly innovating and agile in combination with science.

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William Genovese

VP, Corporate Strategy Planning & Research, Banking & Financial Markets. Based in Huawei's Shenzhen HQ, Bill is a thought leader in Fintech & how ICT is shaping the sector.

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