The arrival of Money20/20 in Copenhagen brought a breath of fresh air to the European conference circuit. The high-energy, well-structured event generated a bright atmosphere for conversation and collaboration – and not just because business in the networking area was conducted in colourful sheds. Notable by their absence were customers, but industry players were out in force and a recurring topic of conversation was how today’s banks and financial institutions can add immediacy to their processes.
The fact that customers have taken to services like Amazon 1-Click, Twitter and Alipay suggests that immediacy is what they want.
To deliver it, banks and FIs need to be digital and online. That’s a minimum, but it isn’t enough. They also need decision-making that supports immediacy. Manual, complex risk analytics and decisioning is clunky and slow. Automated, streamlined processes returning a rapid ‘yes’ or an immediate ‘no’ credit or loan decision are what’s needed.
People share information online constantly; and it’s resulted in new forms of data. The complete view of a prospective customer no longer resides only in bank statements and spreadsheets. It’s also in online reviews and online behaviour.
If a consumer wants to know if a company is reliable and provides value for money, they’ll look at review sites and read what people have written about them on Twitter. Why wouldn’t the same information form part of risk decisions taken by finance and payments providers?
Inspiring speakers at the event included BBVA’s CEO Carlos Torres Vila and Sebastian Siemiatkowski, CEO and co-founder of innovative e-commerce company Klarna, which is changing the way people pay for goods online. Ricky Knox, co-founder of digital-only bank Tandem talked about how their approach is reimagining the bank as we know it.
It was a successful start in Europe for the Money 20/20 brand. We look forward to October and Las Vegas.
Learn how Klarna was able to increase agility with credit risk analytics.