Information technology helping banks to make profit in the world of digital banking

Information technology helping banks to make profit in the world of digital banking

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By József Németh, Deputy CEO, Online Business Technologies.

Ahead of the FinTech Europe Summit, Jozsef has shared his insight on information technology and how it can help banks be compliant with PSD2 and make profit in the world of digital banking. 

Jozsef, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?

I am currently Deputy CEO of Online Business Technologies. I graduated at the Budapest University of Economics, and after a period of being management consultant at EY, I joined Online. I have gained remarkable experience in implementing complex core banking solutions, as I worked as senior consultant, project manager, head of project office, operative and sales Deputy CEO throughout the last 17 years.

What areas within FinTech do you personally find interesting and why?

To me the most interesting part is how efficiently they can harvest current technology. As developers of banking software we aim to achieve a similar level of agility and customer experience as offered by the FinTechs, and also looking around for opportunities to implement Blockchain and AI based solutions that are becoming more and more common with FinTechs.

What are the essential considerations that need to be made when making the first steps towards digital banking: PSD2 and open banking?

Digital banking requires the redesign of processes, organization and IT support of banks, and inevitably requires the fast adoption of innovations. The key question is how to make our own processes more agile: collaborating with FinTechs and adopt heir technology and processes, or developing our in-house skills to meet the challenges. I am sure that the most successful organisations will use the mixture of these methods, and surely there will be different successful mixtures. What is also sure, that banks unable or unwilling to change will be forced out of the market.

How will new competitors and technology transform the world of banking? And what are the impacts?

These effects are already visible, but as we see it, banks will have to re-evaluate their roles in the value chain. In the near future, what the customer sees as banking, and who actually does the banking in the background can be completely separate, giving the edge to those who have the direct connection with the client, giving them the possibility to choose from the banking providers. As Bill Gates said – “Banking is necessary, banks are not.”

At the FinTech Europe 2017 Summit, you will be speaking on your insight regarding – How can information technology help banks to be compliant with PSD2 and make profit in the world of digital banking?. Why do you believe this is a key talking point in the industry right now?

Throughout Europe the effects of PSD2 will be immense. Those who are prepared in time will have the advantage to adapt faster to the other coming changes and create a solution to harvest the technology that was necessary for regulatory compliance to make profit. This is why we don’t wait for 2019, our solution will be ready early 2018.

What, in your opinion does the future hold for FinTech professionals, and what key challenges are on the horizon?

It is one thing for a FinTech to get to the top but it is a completely different challenge to stay there. These professionals will face immense competition in the coming years and only those with the most groundbraking and/or customer friendly solutions are able to remain in the business. More and more banks will start to embrace or even launch FinTechs and this will help, by keeping the competition alive, keeping the business flowing and forcing the FinTech professionals to create something new day-by-day.