Life may have slowed down but innovation doesn’t!

8
June
,
2020
By:

Travers Clarke-Walker, Chief Marketing Officer, Thought Machine

For all the talk of economic gloom, it’s still an exciting time to work in banking. Like Florence in the Renaissance, the industry is flourishing with astonishing works of creativity.

Let me share a few of my favourite innovations.

There’s great work around passwords. The field of “behavioural analytics” has the goal of replacing passwords altogether and wouldn’t we all just love that. Behaviosec and NuData Security are both pioneers, these systems monitor the behaviour habits of every customer to create a unique fingerprint. By looking at hundreds of factors: such as the angle the phone is held, how the user swipes, pressure, angle, speed, if they use one hand or two, and where they are located, to build a bespoke picture of every user. An imposter will behave differently – triggering an alarm.

Lemonade, a home insurance provider, who has been around for a while now, still stands out in their use of AI to change the way insurance payouts are made. Customers make a claim by recording a short video using the Lemonade app. An AI engine calculates the likelihood of the claim being true. Lemonade paid a claim in three seconds this way and that’s got to be a world record.

Personetics and Cleo are perhaps the ones to watch in the customer spend monitoring space. Presenting information in plain language. Users can ask “How much have I spent on coffee?” or “Will I be overdrawn before payday?” and receive a chatty answer back such as “You’ve spent £28 on coffee this month, and at this rate will struggle to pay rent.”

Cleo by way of example is backed by an all-star cast of investors, including Skype founder Niklas Zennström, Wonga founder Errol Damelin, TransferWise founder Taavet Hinrikus, and most recently Balderton Capital in a Series A round, all drawn by the prospect of giving consumers intelligent insights.

These examples of innovation are a mere taster. In the Open Banking segment alone there are 268 apps registered with European Banking Authorities as of 31 December 2019. The number is growing all the time.

Now let me make a serious point.

We are seeing a mere fraction of the potential innovation. Bankers are bright folk. I hear revolutionary ideas all the time. But time and again brilliant ideas are wasted. They go nowhere.

The reason? The bank’s infrastructure can’t cope.

When banks want to plug in an AI engine, or use their data in a novel way, they are crippled by legacy architecture. It may take six months to a year for engineers to solve the problems.

So the idea gets junked. It’s just infuriating.

There is a solution.

Vault Core is a core banking engine optimised for innovation. Whether the bank is building something internally, or working with a third-party service, Vault Core transforms the entire process.

The first advantage is speed. Vault Core was written from scratch as an elegant, integrated banking platform. Data sits in one place only – no messy duplication or reconciliation. Vault transacts in real-time, eliminating batch processing. It’s an engineer’s dream.

Second, is the Vault Core workflow engine. Workflows lie at the heart of all great ideas, and we’ve ensured Vault offers the most intuitive, flexible, and robust engine in the banking industry. It means product managers can turn an idea into reality in days or weeks.

Third is scale. Vault Core is cloud-based, thus can scale without limit. Want to enrol a million users? Ten millions users? Fine! There is no diminution in speed or stability as numbers grow. As we know, legacy core banking systems creak and groan when asked to handle high volumes. For example, banks limit the range of transaction data viewable by their customers (normally to within a 12 month period at a time). Why? Their systems can’t handle a higher volume. Vault, by contrast, scales as needed.

The result is innovation at warp speed.

This is the age of innovation. A eureka moment is not enough. Bankers are bursting with ideas. What they need is an infrastructure able to turn those dreams into reality.

<< Previous blog
Next blog >>
Empowering our clients to accelerate their modernisation
Read this blog
Money20/20 Banking Infrastructure Summit: What to expect with a core modernization program
Read this blog
To be ISO 20022 ‘ready’ is not good enough
Read this blog
Building a winning team with a strong culture
Read this blog
Domain-driven design and the future of payments
Read this blog
How does Vault Core compare to closed-box systems, and what does this mean for product development?
Read this blog
Cloud Native - what does it mean? An interview with CNCF's Cheryl Hung
Read this blog
Why are cloud systems so much more reliable?
Read this blog
Strengthening our commitment to cloud native design
Read this blog
Life may have slowed down but innovation doesn’t!
Read this blog
A demand for COBOL expertise underlines the fragility of critical infrastructure
Read this blog
Thought Machine redefining banking with Standard Chartered
Read this blog
Q&A with Nick Wilde, MD of Thought Machine Asia-Pacific
Read this blog
Building a core banking system in a distributed environment
Read this blog
How Thought Machine can unlock the cloud for banks with Red Hat OpenShift
Read this blog
Round table: Meeting the challenge of a digital future
Read this blog
Let business justify your investments into digital-native core banking systems
Read this blog
The Integration Library: a growing collection of solutions with best-in-class technology vendors
Read this blog
Introducing our Enablement Portal – a complete resource for support, knowledge and training on the Vault platform
Read this blog
Building a bank on top of kubernetes
Read this blog
GFT and Thought Machine forge strategic partnership to accelerate global banking transformation programmes
Read this blog
Shaping the future of banking IT: We’ve joined the Banking Industry Architecture Network (BIAN)
Read this blog
Core banking transformed: accelerating migrations with cloud-native cores
Read this blog
From speech technology to banking
Read this blog
Why microservices are the future of banking
Read this blog
Meet our chair Andy Maguire
Read this blog
How to go full cloud native with CockroachDB
Read this blog
How Thought Machine exceeds global industry standards in compliance and security
Read this blog
Cloud computing will save banks billions. Here's how
Read this blog
Strategic partnership with Lloyds Banking Group
Read this blog
Suscríbase a nuestro newsletter
Thank you! You will now receive some incredible content in your inbox!
Oops! Something went wrong while submitting the form.
For information about how we use your data please read our privacy policy.