The second member meeting of 2023 took place at the DNB headquarters in Oslo jointly hosted in May by DNB and Promon.
Here are some of the key takeaways:
👉When banks can train their AI/ML models on more data for fraud detection, the models are better. With privacy enhancing technologies banks can utilize data from other banks without seeing the actual data and thus being compliant.
👉The world is changing at an exponential rate and the ability to adapt is the most important skill today: from IQ, to emotional intelligence, to adaptability.
Digital Assets:
👉Most private bank customers will be able to trade in tokenized assets through their bank apps in the future. However, it is difficult to agree on then that will happen. Many major banks already offer digital assets, but on the other hand you can’t really call it a product or a service if only a handful of customers use it. CBDCs are coming, but these things tend to take longer than we expect …
👉More Norwegians own crypto than shares!
👉Big banks are entering digital asset space: Societe Generald, HSBC… there will be another wave now with regulations like MiCA and Digital Markets Act.
👉If you want to attract young investors to your bank, you have to offer crypto.
👉What Visa is doing in the crypto space: enabling cards as a way to pay in web 3 merchant categories, making it easier to spend crypto and stablecoins, helping clients develop and execute strategies in crypto, and engaging with central banks in CBDC design and pilots Web 3 offers more favourable exchange rates for the data we give away!
Building successful products:
1) Find the problem to fix.
2) Is there potential: profitability, scale?
3) You must have the edge: do better than other companies.
4) Timing is crucial!
5) Asymmetry
Open banking:
👉Reuse PSD2 APIs for commercial cases.
👉Innovating by combining – creating something new through partnerships. Banks can feel “crushed by compliance” – hopefully PSD3 will be clearer!
Collaboration:
👉DNB: partnering with our competitor, Svea, for factoring made sense, but it was hard to let go of the product from our side.
👉A lot of research needs to go into finding and introducing the right products/services that customer want.
👉You can’t copy or scale a product or service from one market to another – you need to have the local flavour.
👉It is difficult for domestic schemes to keep up with the fast-paced change: collaboration and sharing learnings with other domestic schemes are crucial.
👉Top areas where fintechs want to deepen expertise: payment processing, AI, crypto, open banking and financial inclusion.
👉The fastest way to get to know your partner: take them out for Karaoke!
Agenda and list of speakers available here.
