July 18, 2023

FINATIV: INSIGHT

July 2023

Generative AI (creating human-like content) is really taking off. In a recent study, PWC determined that almost 30% of UK financial services jobs could be replaced by automation by 2030, offering big gains in productivity and customer experience. Drawing on the first-hand experience of Simon Potts, the newest member of our team, we highlight the practicalities of developing and maintaining AI-driven chatbots for use in commercial finance.

From our recent Technology & Innovation Forum, we also review organisational practices that drive effective adoption of digital transformation; and for firms investing in new technologies, Pieter-Paul Barker outlines best practices in system selection.

With businesses seeking a coherent ESG response, we announce a September event to showcase the new ISO 32210 framework and how it can be adopted by organisations. We also offer insights on rate-for-risk lending in the motor finance market and the disruptive impacts of Basel 3.1 capital rules.

strategic software selection

Strategic Software Selection

Choosing the right set of software applications for the long-term future of the business can unlock huge untapped value, far beyond the direct project and software cost.

Finance companies live and breathe software. Many companies rely on software of course, but for financing, it’s what makes the business possible and where its intellectual property resides.

For many years, therefore, finance houses and banks were also software developers, with in-house teams creating bespoke software that didn’t just run the business, it was the business. Indeed, many of those legacy platforms are still in use today.[…]

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Simon Potts joins Finativ

Welcome Simon Potts

We are pleased to announce that Simon Potts, a seasoned Global Technology Leader, has joined the Finativ family as our new Consulting Director. With over two decades of extensive experience at IBM Financing, Simon has brings expertise in IT strategy, digital transformation, and AI.

In addition to his vast technology leadership experience, Simon brings first-class project, agile development and process skills and is a Lean Six Sigma Black Belt.

Please join us in extending a warm welcome to Simon. His expertise will be a significant asset as we continue to empower our clients through digital transformation and advanced finance solutions. Welcome to the team, Simon!

people in digital transformation

Organisation: The Role Of People In Driving Digital Transformation

There are very few businesses in the financial services sector which would not profess to be in some way undergoing a digital transformation. The challenges are, how successful are they in their endeavours, and how far are they in their journey?

To provide context against which to measure their own progress, participants in the most recent Technology & Innovation Forum virtual workshop were treated to a series of insights from Conrad Ford, Chief Product Officer at Allica Bank […]

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basel 3.1

Basel 3.1: The Clock Is Ticking For Finance Companies

While we await the outcome of the PRA’s recent consultation period, the clock is ticking on the implementation of Basel 3.1 which will dictate the regulatory capital requirements for banks from January 2025.

Implications will ripple disruptively through commercial finance markets, impacting the profitability of not just bank-owned lenders but also intermediary lenders who access wholesale lending.  […]

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“Cerberus hits Europe: Deadly heat claims first life in Italy as Spain faces a scorchio 44C while heatwave named after Dante's Inferno creature hits tourist hotspots across the Mediterranean - and it'll get even HOTTER in some parts”

– Daily Mail 12th July 2023

As concerns mount over the effect of climate change, it is vital that the finance sector steps up to address the needs of sustainability and to evolve and prosper during this transition. A new British Standard, BS ISO 32210:2022, has been developed to help finance firms to:

  • integrate core sustainable finance principles into operations, activities, products and services
  • align strategy and operations with emerging regulatory requirements, stakeholder expectations and market opportunity
  • enhance control and mitigation of risk, including the avoidance of ‘greenwashing’  identifying and managing material sustainability impacts
  • demonstrate continual improvement with real-world sustainability outcomes
  • increase transparency of organizational policies, processes and sustainability performance
  • improve internal operational governance and rigour

Finativ is planning a seminar in September to discuss ISO 32210 and help finance providers begin their sustainability journey and benefit from the rigour that this new standard can provide. If you would like to attend this seminar please email mark.stoddart@finativ.co.uk

chatbot

Why Delivering A Successful Chatbot Is Harder Than People Think 

We are now all used to being able to find information, get help and possibly process transactions using chatbots. However, even with the current hype around ChatGPT and other advanced generative AI-based chatbots, why does it remain so difficult to deliver even a basic chatbot successfully? [...]

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car finance rate for risk

Use Rate-For-Risk Finance Models To Increase Business

There has been industry concern over the falling penetration of point of motor finance for used cars. Read Peter Cottle's perspective on whether now is the time to fully embrace a "rate for risk" model to regain lost ground. (Article first published in the IMI's Motor Pro publication last month) [...]

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See you there?

Over the coming weeks, members of the team will be attending the following events. Hopefully we’ll see you there.

17 August: AFPA Trust Summer Drinks Charity Event, London

14 September: UK Finance Invoice Finance and Asset Based Lending Dinner, London

20 September: Technology & Innovation Forum - Exploring Use-cases for Data Interrogation

September: Finativ ISO 32210 seminar

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