Intelligence-enabled Banking

The paradigm shift for financial services

In today’s information age, the traditional business and operating models of financial services providers are reaching their limits. Fragmented IT systems, outdated processes, silo thinking and high costs of digitization pose a real risk to customer centricity and – most of all – to the profitability of financial products and services. By means of an innovative overall concept and exclusive cooperation with leading global technology providers, Deloitte is now enabling the paradigm shift – towards information- and data driven structures as a very powerful basis for new, differentiating business and operating models with significant potential for short-term increases in efficiency and earnings. That’s what we call: Intelligence-enabled Banking.

The financial sector is undergoing rapid change mainly driven by technological innovation and significant shifts in customer preferences and demands. Providing intelligent and customer-centric solutions while ensuring operational efficiency is a key success factor for sustainable competitiveness. In view of these challenges, however, traditional business and operating models are reaching their capability limits. Today’s situation is often dominated by fragmented IT systems, outdated processes, silo thinking and high costs. This status quo makes it impossible to achieve the desired triad of an intelligent and individual product and service portfolio for customers, efficient use of powerful and scalable systems with high flexibility and openness, and the fulfillment of ambitious efficiency and earnings targets. Worse still, the current structures are even proving to be backward and very cost-intensive hurdles to digitization and innovation in this respect.

In order to generate critical competitive advantages for future sustainability, the entire potential of technological innovation should be exploited consistently. This requires a paradigm shift from worn-out, product- and process-oriented structures to information- and data-driven structures (“Intelligence-enabled Banking”). Deloitte enables this holistic transformation of business and operating models by means of an innovative overall concept that, in addition to Deloitte’s own industry, technology and transformation expertise, relies on exclusive cooperation with leading global technology providers: Deloitte manages and orchestrates the transformation program towards Intelligence-enabled Banking while the partners contribute trendsetting and state-of-the-art technologies. The ecosystem of available technologies ranges from currently much debated Artificial Intelligence (AI) to platforms providing IoT-based products and services, Media Mining (MM) or Distributed Ledger Technologies (DLT) with a medium to long-term perspective. Besides these exclusive technology partnerships, the findings and methods of Deloitte’s institutes for data analytics and neuroscience are incorporated on a continuous basis. As a result, our clients are given access to the most innovative technological platforms and Deloitte’s know-how regarding the technical and functional conception of target operating models, technology implementation and company-wide change management to ensure the client’s success. This “best of both worlds” approach for the implementation of Intelligence-enabled Banking proves to be the secret of success and enables the successive scaling and roll-out of a multitude of specific applications, so that a high P&L impact can be achieved in a short period of time.

A key element of Intelligence-enabled Banking is the close partnership of Deloitte and BlackSwan Technologies. BlackSwan’s globally unique AI Operating System has been in use at several major international banks since 2018. In the DACH-region (Germany, Austria, Switzerland), the technology is exclusively applied and used by Deloitte. Besides access to all relevant internal and external data sources and a variety of data enrichment options, the system offers powerful AI analysis tools and context-related visualization options. As a result, this not only achieves a new level of up-to-dateness, quality and scope of data, but also significantly supports the preparation and interpretation of data in terms of relevant insights through procedures of pattern and speech recognition, machine learning and other modern AI methods. The resulting new interplay of human and machine puts the respective strengths to the fore and creates essential prerequisites for information-based business and operating processes.

A central benefit of BlackSwan’s technology is the option to bundle and flexibly use tools and systems from the entire spectrum of the latest technologies in the AI universe within an integrated system. In addition, specific applications for the financial services industry are already preconfigured and meet all domain-specific regulatory and data protection requirements (e.g. GDPR). These include, for example, KYC or underwriting processes. At the same time, client- and risk-specific characteristics can also be taken into account. Thanks to the seamless integration and smooth interaction with existing legacy systems, significant increases in efficiency and earnings can be achieved within a short period of time. The operational results are extremely impressive in terms of quality and efficiency.

The paradigm shift towards information- and data driven structures will change the financial services sector in the next 5 to 10 years to a greater extent than has happened in the last 20 years – and this explicitly includes the period of the financial crisis. In the future, successful players will be the ones having accomplished successful transformations towards innovative business and operating models led by information and orchestration of a large set of technological innovations and cooperation. This is the exact core of Intelligence-enabled Banking. We enable our clients – in line with the concept of technological Darwinism – to implement intelligent and innovative solutions contributing significantly to earnings at comparatively low investment costs. Future sustainability, profitability and regulatory compliance are the results of the impending paradigm shift in financial services.

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Your contact person

	Dr. Holger Dümler			Dr. Thorsten Gudjons
	Partner | FS Business Transformation			Partner | FS Business Transformation
	T: +49 151 58077051			T: +49 173 5764510
	E: hduemler@deloitte.de			E: tgudjons@deloitte.de