Benjamin Ensor, director of research and strategy at 11:FS, moderated the first panel of the day, discussing market updates with Kanika Hope, chief strategy officer at Temenos; Dan Broten, chief technology officer at EQ Bank; and Rob Keijsers, chief digital and information officer at ASA International.
Hope highlighted the decline in the number of new digital banks, stating, “We’re entering uncharted territory with the rising interest rate and inflationary environment, which is resulting in tighter funding and resistance from established banks. Funding levels have dropped by 80% since 2021, as investor focus has shifted from growth to profitability.” She elaborated on the waning interest in challenger banks, mentioning, “The problem is that these challenger banks often attract customers who are not as profitable; they tend to be younger, less creditworthy, and still largely maintain relationships with traditional banks that offer a wider range of products.”
Keijsers added that after a trend towards divergent strategies a decade or so ago, there is now a desire to converge financial services, integrating quality service providers into a single platform. Looking ahead to embedded finance, Hope noted, “Twice as many banks want to retain customer relationships and build digital ecosystems independently. Whether they succeed is another question, but they are eager to develop superapps that prominently feature their brands.”
Broten discussed EQ Bank’s transition to cloud and SaaS, stating, “The key benefits we were aiming for were scalability, resilience, and security, which we achieved in a very short timeframe.” He emphasized that by alleviating the focus on managing infrastructure, the team could concentrate on enhancing their DevOps capabilities to build and deliver value more rapidly. Keijsers predicted that while many markets may not yet be on the cloud, African mobile banking might “leapfrog” developments in the West. Hope signaled that AI and generative AI will play a crucial role in the future, while Broten noted a growing focus on big data.
Kalliopi Chioti, chief marketing and ESG officer at Temenos, took the stage to discuss the company’s ESG initiatives. She outlined four key reasons to prioritize ESG:
– Regulation and reporting requirements
– Reputational risks
– Competition and customer expectations
– Cost efficiency
Chioti stressed the importance of considering sustainability both “on” the cloud and “of” the cloud. Broten joined her to discuss EQ Bank’s efforts, emphasizing the necessity of measuring emissions through accurate data and partnerships. He mentioned their collaboration with Microsoft to tackle these challenges, noting, “Sustainability factors into core decisions across the bank, influencing how we think about our investors, shareholders, employees, and customers. This theme informs our lending, investment choices, and technology selections.”
Prema Varadhan, president of product and COO at Temenos, introduced a “super demo” showcasing the company’s new AI software, designed to illustrate an “end-to-end user journey from the customer’s perspective, demonstrating how these technologies can enhance customer growth and satisfaction.” Ermes Dajko, a senior cloud solutions architect at Temenos, initiated the demo, stating that traditional personalization methods are outdated and highlighting the need for more tailored product offerings.
Stelios Makrinos, senior product solution manager at Temenos, continued the demonstration, showcasing how the AI could facilitate product development targeting specific markets in under five minutes. Arun Thallapelly, global head of BSG, Temenos, concluded the AI demo by asserting that the company is transforming product distribution from a one-size-fits-all approach to genuinely customized solutions. He summarized, “This technology is not just an enhancement; it’s a revolution, poised to redefine customer service, personalization, and financial efficiency.”
In one of the final breakout sessions at the conference, Terry Page, director of global client delivery at Temenos, presented “Temenos Leap,” a program aimed at upgrading users to the latest platform and technology. He commented, “Our latest technology offers security and performance improvements, with upgrades achievable in just a few months.” Page concluded by indicating that engaging with the Leap program would help businesses prepare for the cloud, emphasizing the unique value tailored to each organization’s needs.