The first day of EBAday commenced with a panel discussion titled “How New Technologies are Transforming Banking,” held in breakout room 2. Esteemed panelists included Cal Corcoran, Vice President and Global Head of Banking at Microsoft; Simone Lofgen, Managing Director of Payments Platforms at Commerzbank; Andre Martins, Head of Banking Innovation and Open Finance at NTT Data; and Simone Satan, Global Head of Digital Market Management and Treasury Services at BNY Mellon. They delved into the roles of artificial intelligence (AI), cloud computing, and innovative automation technologies in reshaping the payments landscape, with moderation by Graeme Jeffrey, Partner at Bain & Company.
As AI technology, fueled by advancements such as ChatGPT and the competitive landscape among Big Tech firms, continues to evolve, it has emerged as a focal point of discussion within the banking sector. Satan identified three primary applications of AI: risk management, fraud detection, and data analysis. Martins emphasized that AI can foster customer loyalty through hyper-personalization and enhanced user experience, noting that democratizing data leads to more meaningful insights and improved understanding of client needs integrated into operating systems.
Addressing generative AI solutions, Lofgen described a significant transformation in the AI sector, indicating that Commerzbank has engaged in discussions with ChatGPT. She remarked, “The foundation is data; AI can only learn from the information provided. This is especially crucial in the payments domain, where statistics reveal that 90% of valuable data in banks is derived from payment transactions. Since most critical information originates here, combating fraud becomes paramount. Rapid detection of fraudulent activities is where AI significantly enhances efficiency. I wouldn’t claim that AI will replace human interaction; rather, it reshapes roles, streamlining operations and allowing humans to focus on higher-value tasks.”
On the subject of ethical AI usage, Corcoran highlighted Microsoft’s commitment to ethical standards in AI development. He stressed the importance of designing AI systems with transparency and a societal purpose, underscoring the need for accessibility. He also pointed out the critical need for resources to effectively regulate technology.
Talent development in AI was another focal point of discussion. Lofgen emphasized that proper training is essential for AI implementation, with Satan adding that continually refining skills is necessary to understand emerging technologies. He mentioned, “Reskilling the workforce is vital. It’s not only about recruitment; it’s equally important to enhance the capabilities of existing employees. I encourage my team to engage in weekly learning—through whitepapers, podcasts, or other resources—to deepen their understanding of new technologies.”
Regarding robotic process automation (RPA), Corcoran noted a growing desire for improved customer experiences through AI chatbots. However, he pointed out setbacks associated with RPA deployment in banks, stating, “Many institutions treat RPA as a superficial fix, masking the complexities of their internal structures without addressing the need to optimize and document these processes.”
Discussing the ongoing cloud migration within banks, Martins remarked that the financial industry is still navigating the potential of cloud services, evaluating whether to adopt public or private models or pursue a hybrid approach.
Despite these challenges, he expressed optimism about scalability in the market: “From where I stand, the cloud has yet to fully realize its potential. I believe AI will act as a catalyst for this progression, paving the way for future advancements.”
The panelists acknowledged the challenges associated with emerging technologies, such as AI biases and inadequate automation processes. Nevertheless, they recognized the wealth of innovation being adopted in the banking sector and the potential to refine these technologies for more efficient, seamless client services.
In a session titled “The Clever Use of Data,” panelists explored various applications of data to enhance growth and customer experiences. Speakers included Paulo Barbosa, COO at Banfico; Edward Chandler, SVP, and Head of Commercial and Money Movement Solutions for Visa Europe; Fabian Khoshbakht, Global Head of Client Insight and Innovation at BNY Mellon; and Edwin Sanders, Strategy Payments Lead at Rabobank, with moderation by Lauren Jones.
Data is increasingly being viewed as a commodity, prompting discussions around the balance between commoditization and security standards. Khoshbakht mentioned evolving guidelines for data protection. He pointed out the shift from stringent privacy to a demand for open data sharing, framing data not as a ‘Holy Grail’ but rather as part of a larger ecosystem.
Chandler elaborated on Visa’s approach to customer data, stating, “To effectively use data, it requires robust frameworks—whether they are local regulations or consent management systems. We must evolve in our data operations to meet client needs.”
From a commercial banking perspective, Khoshbakht emphasized BNY Mellon’s commitment to translating data into actionable insights for clients, highlighting the importance of understanding client behaviors to deliver tailored solutions.
Sanders noted a distinct difference in data utilization between traditional banks and Big Tech firms. He articulated, “Financial institutions prioritize customer data ownership, adhering to a social contract to responsibly manage that information. While the concept of an ‘El Dorado’ exists, it’s fundamentally about monetization—how can we assist our customers more effectively with the data at our disposal?”
The advent of open banking has encouraged fintechs to innovate, compelling legacy banks to accelerate their adaptation. However, as data volumes increase, the importance of ensuring robust security and regulatory frameworks becomes paramount.
Barbosa commented on the revolution initiated by open banking, stating, “It has driven banks to shift their approach significantly, prompting regulators to be more ambitious. Initially met with resistance, this shift is now recognized as a small revolution.”
Ultimately, the panel concluded that while the race for data is intensifying, responsible use and customer protection must remain central to discussions moving forward.
In the panel “Bridging the Cloud Migration Gap,” speakers examined how cloud technology is catalyzing digital transformation. Panelists included Erik Alstromer, Head of Product in Europe at Form3; Daragh Kirby, Head of Sales and Marketing at Intercope; Amelia Ruiz Heras, Senior Director of Global Solution Consulting Payments at Finastra; and Paul Williams, Solution Architect at Engine by Starling Bank, moderated by Shawn Van Raay, CIO at Payments Canada.
Organizational challenges often hinder large institutions from embracing cloud technology, particularly regarding mindset and architecture design. Alstromer suggested that companies should prioritize cultivating a cloud-ready culture before adopting specific cloud technologies.
Kirby noted that while fintechs are eager to embrace cloud solutions, traditional tier-one banks are more cautious. He emphasized the need for regulatory support to facilitate cloud adoption while alleviating concerns over transaction banking risks.
Heras described the cloud as an opportunity for banks to experiment with innovative offerings without disrupting existing business operations. She expressed excitement about the potential to create new customer propositions with reduced financial risk.
Williams added that the cloud environment allows engineers to test new technologies while assessing their viability for production.
Reflecting on the integration of legacy systems with cloud technology, Williams questioned if a hybrid setup would be sustainable. “Once organizations begin to migrate to the cloud, the inherent agility of their cloud teams compared to their traditional counterparts may compel them to fully embrace the cloud,” he remarked.
While the transition to cloud technology carries inherent risks, the benefits for scalability and innovation are compelling. Panelists concluded that institutions need not adopt an ‘all-or-nothing’ approach; however, it is crucial for major banks to keep pace with agile fintechs that are already leveraging the cloud for competitive advantage.