Results of the X Banking Summit on Innovations and Development
The work of the anniversary Banking Summit on Innovations and Development held on May 23-26 in Vilnius, the capital of Lithuania, has been completed. Over 190 representatives of banks and high-tech companies from Russia, the CIS, Europe, North America and Middle East took part in it. Traditionally, the Summit was hosted by CFT with partner support from Oracle and INPAS.
The Banking Summit on Innovations and Development has been held annually since 2004. During these ten years, over 2,200 bankers have taken part in the event, and 150 Russian and international experts have spoken before the Summit delegates and discussed the main directions of development of the banking sphere in general and of separate segments in particular. The main topic of Summit-2013 was discussion of banking business development and creation of IT strategies under the conditions of impossibility of long-term forecasting in particular. The business program of Summit-2013 was highly topical. During the three days, the participants have heard over twenty reports, taken part in fierce debates, and discussed a wide range of problems related to improvement of bank efficiency under the conditions of today’s of uncertainty.
On opening the Summit, Alexander Pogudin, Member of the CFT Board of Directors, stated that the key factor of development strategy formation today is the uncertainty caused by constant changes in the strategic aims. Thus, if earlier we used to set an aim and consider various circumstances and conditions finding a way to reach it, today’s situation is totally different. New conditions demand new understanding of the strategy – IT strategy is now bound up in business strategy. Information technologies are relevant “here and now”, therefore the only efficient strategy can be the concept stating “buy and use”. In respect of the global economic and political uncertainty, the unpredictability of technological trends and constant changes in consumer behavior, Alexander Pogudin called market players for cooperation in discussing the issue of changes and access to current market expertise.
Regarding this issue, the situation in the Russian payment market was discussed by the representatives of the Bank of Russia, two associations of market players: Association “National Payments Council”, Non-commercial partnership “National Payments Council”, UCS CEO Vladimir Komlev, and experts of J'son & Partners research agency. Much interest among the Summit members was aroused by the report of Elena Rodionova, Head of Euroset Financial Services Department, who spoke of efficient technologies for cooperation with banks.
Another discussion was held regarding the coming changes in banking legislation among the representatives of the State Duma Committee on Financial Markets and legislative advisors. Andrey Melnikov, Deputy CEO of DIA Group, spoke about the situation in the banking deposit market, the coming changes in the pension savings insurance sphere and other current issues as well related to implementation of measures for maintaining electronic databases by banks.
The author of three bestsellers on banking business, a well-known futurist, the founder/CEO of the revolutionary retail banking concept Movenbank, Brett King spoke before the delegates of the anniversary Summit. The expert warned the bankers of the coming large-scale banking “digitizing” and of the necessity to prepare mobile infrastructure for servicing future customers already now. According to Brett King, customers will visit a physical bank office only in extraordinary circumstances, and mainly the customer will communicate with the bank via digital channels. Not only did Mr. King present his report and answer the questions but also visit the Summit cigar party and talk informally to the delegates.
Dr. James Gartner, Strategy Director and Partner of Spigit, dedicated his report to innovation management. He explained why only two of ten new products are promising, and why it is absolutely impossible to tell which of them can become a “bestseller” and generate profit for the bank in the future. That is why creating a “bestseller” requires much trying, making mistakes and trying again. Thus it is important to understand that in order to achieve success it is more efficient to make small but multiple changes instead of major investments in hypothetically big “breakthrough” projects. Such small-step policy is impossible without engagement of a broad spectrum of volunteers in the innovation activity. A program on innovation support in the bank must be organized so that the income from successful projects covers the expenses on implementation of ideas that bring no profit so far.
Andrey Visyaschev, Chairman of CFT Board, introduced the new paradigm for CFT-Bank development based on provision of innovative instruments for financial product management, diverse business analytics and a “unified window” for interaction with customers including all possible communication channels. In addition, he presented the new functionality of the technological platform for lifting productivity limitations and significantly accelerating bank retail transactions. CFT specialists completed Mr. Visyaschev’s speech with demonstrations of the new functionality of the products on remote banking and financial monitoring and products for operation on the stock and payment markets.
Much interest was aroused by the speech of the analyst of Aite Groupe consulting company Enrico Camerinelli about the growth of demand for outsourcing of core banking systems in Europe and the US, after which a highly interesting discussion moderated by Anton Arnautov (FutureBanking.ru) was held among the representatives of banks Monolit, Expobank, IFC, Miraf Bank, Baikal Bank and CFT specialists about Russian experience in outsourcing of core banking systems. The bankers explained why they had chosen the outsourcing model of core banking system, which problems arose during the transfer and which tasks they have to solve now that the vendor is fully responsible for the support and development of their ABS.
According to the participants, the anniversary Summit will be best remembered for the highly topical and interesting business program, high-quality cultural events that were of cross-cultural character and combined introduction to the cultural traditions of Lithuania with the performance of a Russian folk rock band Pelageya, and productive informal communication.