Applied AI, Open Banking and Continuous Innovation the Easy Way - AI Days Melbourne 2019
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The document discusses the significance of open banking as a strategic accelerator for continuous innovation in the financial services sector, emphasizing a human-centric approach. It highlights the waste in digital transformation investments and the necessity of leveraging applied AI for creating superior customer experiences. Additionally, the paper outlines the evolution and potential disruption within banking due to commoditized AI and consumer data rights (CDR).
Applied AI, Open Banking and Continuous Innovation the Easy Way - AI Days Melbourne 2019
- 1. Applied AI, Open Banking and Continuous Innovation the Easy Way Yun Zhi Lin - Chief Innovation Officer, Contino API Days Melbourne - September 2019
- 2. 2 yunspace.com yunzhilin mrserverless 01 | The Continuous Innovation and AI Imperative 02 | Open Banking as a Strategic Accelerator 03 | Reference Architecture and Case Studies Open Banking is about Humans, not APIs. If you start with Human-centric Business Outcomes, Open Banking can easily become a Catalyst for AI driven Continuous Innovation. yunspace
- 3. The Continuous Innovation and AI Imperative
- 4. Evolution of Financial Services Keep the gold safe with Swords! Source: Netflix Knightfall, Open Group TOGAF 4
- 5. Evolution of Financial Services Keep the gold safe with Swords! Keep the information safe with Silos! Source: Netflix Knightfall, Open Group TOGAF 5
- 6. Evolution of Financial Services Keep the gold safe with Swords! Keep the information safe with Silos! Design better Services for Humans Source: Netflix Knightfall, Open Group TOGAF 6
- 7. 1. Of the $1.3T spent on Digital Transformation in 2018, $900B went to waste 2. Most Banks still sell the same products evolved from the 12th century. 3. Typical standard changes we’ve seen in a big 4 bank take from 18 to 49 weeks 7 Interesting Facts
- 8. 8 Digitalised Bank Digital First Principles In the Digital Era, Trust is gained through Superior CX and rapidly improving on User Feedback
- 9. 9 Superior CX in the “Age of AI Implementation” * Better Cognitive CX More Quality Data More Happy Users V AI is commoditised, data is democratised Digital equality is achieved through out of box Cognitive CX offerings Solving business problems using Applied AI must be part of your strategy now, not 3 years later. * Reference: AI Superpowers, Kai Fu Lee
- 10. Superior CX also requires holistic Service Design 10 The Wall of Frustration We deploy something every 2 weeks! We have been waiting for 2 years for the front door request! As a customer I would like a new feature
- 11. 11 DisruptiveInnovation Evolution SustainingInnovation Pioneers Ideate. Experiment and explore Markets using First Principles and Standard Components Town Planners Optimise. Standardise Components and Industrialise Offerings Continuous Innovation References: Clayton Christensen, Innovator’s Dilemma Simon Wardley, Pioneers, Settlers, Town Planners
- 12. 12 DisruptiveInnovation Evolution SustainingInnovation Pioneers Ideate. Experiment and explore Markets using First Principles and Standard Components Settlers Productise. Differentiate and Custom Build on Customer Feedback Town Planners Optimise. Standardise Components and Industrialise Offerings Continuous Innovation References: Clayton Christensen, Innovator’s Dilemma Simon Wardley, Pioneers, Settlers, Town Planners
- 13. 13 DisruptiveInnovation Evolution SustainingInnovation Pioneers Ideate. Experiment and explore Markets using First Principles and Standard Components Settlers Productise. Differentiate and Custom Build on Customer Feedback Town Planners Optimise. Standardise Components and Industrialise Offerings Continuous Innovation References: Clayton Christensen, Innovator’s Dilemma Simon Wardley, Pioneers, Settlers, Town Planners
- 14. The Innovator’s Dilemma * 14 1. Incumbents are often risk averse and prefer to sustain existing product 2. Continuous Growth requires Continuous Innovation. 3. Commodised AI and CDR lowers barriers to bring about long overdue disruption in banking * Source: Clayton Christensen, Innovator’s Dilemma Slow and steady doesn’t win the race. The key is to keep running and don’t fall asleep!
- 15. Open Banking as a Strategic Accelerator
- 16. Open Banking timeline Jul 2019 Big Four Banks: Phase 1 products Feb 2020 Big Four Banks: Phase 2 consumer, account and transaction data Jul 2020 Big Four Banks: personal loan and other accounts, Other Banks: product, account and transaction data Feb 2021 Other Banks: mortgage products Jul 2021 Other Banks: personal loan and other accounts 16
- 17. Current State of CDR Open Banking Consumer Data Standards https://consumerdatastandardsaustralia.github.io/stan dards/ Products and Product Detail https://www.commbank.com.au/developer/documentat ion/Products https://api.commbank.com.au/cds-au/v1/banking https://digital-api.westpac.com.au/cds-au/v1/banking/ products https://api.anz/cds-au/v1/banking/products Hot of the Press 1. “Right to Delete” introduced in Bill Amendment 2. ACCC to announce the first Open Banking Data Recipients next week
- 19. 19 V Apply AI and Make use of your existing Data Prepare for new Data with scalable Data/ML engineering foundation Don’t be creepy. Australian AI Ethics Framework is a good start
- 20. 20 DisruptiveInnovation Evolution SustainingInnovation Pioneers Ideate (and Outsource) Settlers Productise (and Replicate) Town Planners Optimise (and Leverage) Continuous Innovation with Open Banking References: Clayton Christensen, Innovator’s Dilemma Simon Wardley, Pioneers, Settlers, Town Planners APIs B2B B2C Your Data Others Data
- 21. Solving Innovator’s Dilemma 21 1. Treat Open Banking as a Strategic Product. Establish innovation framework to enable dogfooding / replication 2. Compete on superior CX and Consent flow. Not who has the bigger API Gateway or firewall. 3. Participate in the open data land grab. Revisit your Data Strategy and AI initiatives
- 23. Service Design for CDR Open Banking Formulate CDR Strategy Multi Disciplinary Team Rapid Prototypes 23 Developers Clients Business IT Design Thinking IDEATE TEST EMPATHIZE PROTOTYPE DEFINE Data Analysts
- 24. Work Backwards Reference Architecture 24 Developers Clients Data Analysts
- 25. Open Banking Reference Automation and BDD 25 Serverless Containers
- 26. MLOps / DataOps Working backwards Applied AI Architecture (3 months) ML Engineers / Data Scientists Application Engineers Model Notebook Training Job AppSync Inference Lambda De-Identified Data Lake Inference Auth 26 Weather Events Time Tables Static Web Warehouse Opal Exec Consumers Operator
- 27. Superior CX and Size to Speed using API Abstraction (4 weeks) Reference: https://legacy.bank/ 27 Mobile Web Fargate CloudFront Route 53 3rd Party Legacy On Prem Legacy S3 Responsive SPA Lambda WAF Shield Digital First Principles doesn’t mean starting from scratch. Move at speed by abstracting out legacy Auth Digital White Label Weekly Release API Air Lock Legacy Monthly/Yearly Release Cache
- 28. Things you can do now 28 Open Banking is about Humans, not APIs. 1. Call Product API v1 currently available 2. Check your data recipient status next week 3. Talk to your Open Banking Product Owner and Data / Innovation Strategist
- 29. Atlanta atlanta@contino.io Thank You And we are always hiring contino.io continohq contino London london@contino.io New York newyork@contino.io Melbourne melbourne@contino.io Sydney sydney@contino.io