Panel discussion 'Digital era in the financial industry', with a participation of leading Croatian bank representatives, was held on the second day of the jubilee COMBIS Conference.
We asked participants of panel discussion 'Digital era in the financial industry' in which way is digital transformation in banking developing and how can technology ensure greater competitiveness in the financial industry.
Ivan Maglić from Gartner Adriatic/Calisto, and panel discussion moderator, on the very beginning pointed out how digital banking transformation has three evolution phases – in the first one electronic money was created, followed by transition phase from analog to digital business processes and introduction of online banking, and in third phase, through a strong digital business model, digital banking transformation connected systems and people, places and things and, with the help of technology, was in a position to encourage changes.
"In the EU, there is still, from the total number of all forms of financial transactions, over 90 percent financial transactions which are conducted in cash (volume is smaller, off course, only 8 percent). Germans had a precise calculation that cash flow of taxpayer cost 150 euros a year. This information should show all government institutions, regulators, finance service providers, salesman and consumers, that it is time for a digital transformation", noted Igor Strejček, director of Digital Channels Division at Erste Bank. Mobile technology is cheaper and more available then ever and EU regulations will, in 2018, open the doors to all interested digital financial service providers to a simpler connection with existing financial institutions, said Strejček.
Vesna Valić, director of IT division at Raiffeisenbank Austria pointed out how they understand digitalization of banking much wider that simple interaction with clients and service providing. "We are continuously improving and transforming back processes with the aim to ahieve greater effectiveness and quality. I think that the final digitalization success depends on business model quality and organizational culture. For that reason, we are intensively working on recognition of changes, in thinking and behaving of people inside of the organization and together we find ways to master the challenges that are in front of us in the context of digitalization outside of the organization i.e. towards clients and inside organization in terms of process optimization, innovative ways of work, systematization and knowledge and sharing best practice, as well as more flexible organizational structure", said Valić.
Continuing with the panel, participants talked about what, from today's bank services, clients want, what forms of communication they prefer, as well as trends that are initiated by millennials and how does digitalization of internal bank processes looks like.
"A great step that bank Zagrebačka banka conducted this July was implementation of qualified certificates for physical persons that enable them to sign digital documents through advanced electronical signature. We are the first bank in Croatia that implemented this possibility and, with it, we completely harmonized with internal regulations and EU regulations. With this, we enable our clients to agree on any service through Internet or mobile phone, with no need to come to the bank office. We started with signing contracts for cashless loans, but we won't stop there", notedDijana Hrastović, member of the Board at bank Zagrebačka banka, talking about business development with the help of technology.
Damir Horvat, international business manager and sales manager at Combis, pointed out that, in the future, a bigger emphasis will be on data that banks are generating, and that is why COMBIS developed an advanced system that speeds up transaction information analysis, brings them in real time and enables monetization of a greater data quantity.
"With development of intelligent devices, the size of data they generate grows. That is why we developed Husky – Big Data platform that enables clients to securely monetize a great data quantity. Usefulness of those data forms are numerous and presentation of this information is very simple – in the form of heat maps, dashboards and reports", said Horvat and pointed out that COMBIS harmonized Husky solution with EU regulations for protection of rights and privacy of consumers.