At Money20/20 in Amsterdam, we had the opportunity to speak with Jeroen Plag, ING’s Head of Corporate Strategy and Innovation. He shared insights into the bank’s strategic restructuring, which has involved integrating the innovation and strategy teams. This approach aims to bring initiatives like CoorpID and Blacksmith closer to the core of the business and to focus on the development of new assets.
Plag highlighted that ING is centered on two main strategic priorities: embedding sustainability in all operations and enhancing customer experience. “Innovation at ING is an everyday endeavor. It might manifest as minor operational enhancements, which prompted our recent organizational changes,” he explained. He also noted that the bank has identified three focus areas for innovation, where the feasibility of foundational technologies is currently under evaluation.
The key areas of exploration include open finance, digital assets, and cutting-edge technologies such as generative AI and quantum computing. During a session at Money20/20, Nick Corrigan, President of Global Payments in Europe, remarked that the industry is still in its infancy regarding open banking. Plag acknowledged this sentiment, pointing out that a significant hurdle exists in terms of customer adoption.
“Customers don’t engage in discussions about open banking or open finance; they focus on their experiences. We benchmark ourselves against companies like Google, Microsoft, Amazon, Facebook, and Uber, which have redefined customer expectations. The UK has led in this area because it successfully navigated technological challenges. For us, the challenge lies in identifying compelling business models that can effectively drive service adoption,” Plag stated.
Jim Wadsworth, EVP of Strategic Market Development at Konsentus, commented during the same session that while the PSD2 regulation laid a solid foundation, the industry now eagerly anticipates the forthcoming PSD3 and its implications. Despite the impending data-sharing advancements, Plag reassured that banks will continue to play a vital role as trusted partners in enhancing customer experiences.
Regarding digital assets and emerging technologies, Plag emphasized the primary goal of improving customer experiences, whether through open finance or integrating advanced solutions like generative AI in call centers. He illustrated a vision of utilizing blockchain technology to significantly streamline processes, such as reducing mortgage tokenization times from 60 days to just five.
He further asserted that retail customers are typically indifferent to the underlying technology; thus, ING aims to simplify interactions and enhance the overall customer journey. “We should eliminate jargon and concentrate on ensuring our customers’ lives are easier and more enjoyable,” Plag remarked.
Plag concluded by noting that while ING is actively testing these technologies, the need to protect customer data is paramount due to cloud database constraints. He also pointed out the environmental, social, and governance (ESG) challenges associated with data utilization, such as increased energy demands for expanded data centers.
Moreover, he emphasized the necessity of training employees to effectively integrate these technologies into their workflows while maintaining security. “Regulation is essential. The intersection of quantum computing and generative AI poses risks that could compromise security, such as exposing personal identification numbers. We must prepare for and mitigate these threats, which presents both exciting opportunities and significant challenges,” Plag cautioned.