As we approach SAPPHIRE NOW in Orlando May 7-9, it’s important to realize that we are in an era where change is happening at pace never realized before, mostly driven by technology.  This year, we plan to showcase how banks and fintechs are working with SAP and our partners to keep up with that pace of change by building an intelligent enterprise.

Considering the significant social, economic, and environmental challenges facing the world, we need to continue looking ahead. As digital transformation upends many businesses, banks must face new competitors, work within changing ecosystems, and develop unconventional business models.

  • Northern Trust’s Dan Houlihan will be joining us on Day 1 of SAPPHIRE NOW to discuss how they’ve teamed with SAP to become an insight-driven finance organization by exploiting the power of your data through analytics to eclipse their competitors and make inroads amidst the unprecedented financial services innovation fueled by the rise of “fintech” and “insurtech.”

By 2025, I anticipate a fundamental change in the role of banks. Traditional services will still be essential but a significant portion of bank revenue will originate from new, nonbanking services.

These impending changes are being driven by several key trends:

  • Increased customer expectations, including customized, digitalized products designed to address individual clients
  • Data-driven intelligence, helping banks create a deeper understanding of customer needs and wants
  • Banking as a platform, allowing banks, fintechs, corporations, and consumers to connect to a plug-and-play business model, interact with each other, and exchange value
  • The evolution of business models, as firms change their structures, business systems, and cultures to function more like technology companies

Plan for Transformation

But doing business the old-fashioned way – or even the way we work now – will not be enough to keep up with the changes to come. In order to execute strategic priorities and achieve their vision for the future, banks will change the way they operate.

  • Bank of Montreal’s Cally Hunt and Susan White will explain how SAP S/4HANA can transformed their legacy financial management system by eliminating cost and complexity, while providing unparalled levels of transparency and business insight. Spoiler alert: Bank of Montreal converted their first domestic ledger to SAP S/4 HANA and will continue the journey with their Finance of the Future program.

Several shifts instantly come to mind. Integrating end-to-end processes and operations is key, as is increasing process transparency. Banks also need to work to gain a real-world understanding of their customers and the overall business environment. Insight derived from this knowledge can help institutions make better decisions and more effectively solve problems.

  • At SAPPHIRE NOW 2019, you’ll hear from Citi’s Rene Schuurman on how SAP worked with the bank to develop the sophisticated yet simplified operations needed to win in the digital era while operating under tight margins.

Of course, the ability to transfer tasks from humans to automated business systems is critical to reaching these goals. By employing intelligent technologies such as artificial intelligence, machine learning, advanced analytics, blockchain, and robotic process automation, banks can free personnel from rote, manual tasks – allowing them to develop, pursue, and capitalize on innovative, transformative business models.

The shift from traditional banking to intelligent banking demands time and effort. It also requires powerful technologies and the support of leading technology providers and partners. But banks that invest in developing a detailed vision for digital transformation will be best-prepared for the realities of our future.

I’m very much looking forward to seeing our customers and partners at SAPPHIRE NOW 2019. Reach me @FalkRieker. Follow us at @SAPBanking and @SAPPHIRENOW.

Learn More

  • For more information on how banks can become intelligent enterprises and realize their vision for the future, read our white paper.
  • Visit the Industries Pavilion at SAPPHIRE NOW to learn more about this topic and others.  Find more details at the event site.