Transcript

X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0 [MUSIC PLAYING] Hi, everyone. My name is Keith Pearson. I'm the Global Head of Financial Services, Go To Market for ServiceNow. Welcome to Knowledge 21 digital, I got to talk to you today about delivering the digital future of financial services. I have a long of an extensive experience of digital transformation across a range of industries. I started my career in the military, I spent eight years most recently in financial services working for Lloyds Banking Group in the UK. One of the UK's big four banks, and for the last three years at Lloyds Banking Group I was the ServiceNow program director leading a range of transformational activity across the bank on the platform. I want to talk to you today about delivering the future of financial services. The last year has seen a level of unprecedented change and acceleration in the need to digitize, to improve customer experiences, to reduce costs, to simplify and consolidate complexity and to start to drive a transformed customer experience for the future. And if you look at a financial services organization today really at the core of what's happening for these established ones, is that they're trying to disrupt the market themselves at the same time as navigating being disrupted by FinTech, by challenger banks, by new incumbents, by large organizations who are starting to nibble away or completely take over the financial services value chain. And so executives in the bank of the future, the insurance company of the future are going to have to deal with this strange profitability and increasing customer demands, legacy technology, greater choice FinTech disruption and an increasing amount of regulation as well. Meaning they need to contend with driving speed and efficiency and transforming the customer experience. But at the same time building operational and business resilience and ensuring that they are compliant and within risk appetite. And there are lots of things about traditional financial services organizations that play to their strengths, they have scale and depth and customer trust, and that's important and stability, and expertise in managing compliance, and the risk and regulation environment is something-- That's is a massive barrier to entry for any would be incumbent coming into the industry. And of course, a multiple service offering, so that customers can go to one place and get a range of financial services products from that one trusted provider. But they definitely no need to drive this next generation digital capability and something that's being talked about has been talked about for the last five to 10 years now has become really an organizational priority. The ability to Hyper automate to drive new operating platforms, to accelerate and to cloud to get away from legacy technology and to drive integrated end to end services, and to be able to demonstrate to regulators that they have that end to end control of the services that they are providing to the customers. And at ServiceNow we're really, really focused on what our customers, customers do? And in the case of financial services our customers, customers are you and I. Were all consumers of financial services products and we all know what it feels like when that happens well and things work. And also what it feels like when that happens not so well, and things break very frustrating and of course a very emotional thing when it's to do with your money. And we interact with banks and other financial services organizations through a range of channels ATMs are still very prevalent, cash is still their, contact centers, electronic point of sale, mobile devices, online trading and many of us still use branches for some of those most important interactions with our financial services suppliers. But behind all of those kind of levels of engagement, all those different channels of engagement there is a huge amount of what we call fragmentation disconnected data, tooling, workflow, risk and control and insight. And that's because the financial services industry has grown up over the last 50 or 60 years with innovation at the forefront of what it does right back to Mainframes and Green Screens they were amongst the first organizations to embrace technology. And as a consequence, there's a huge amount of complexity that's been built up over time, and particularly in the case of big banks, that's a real time technology capability that you can't really switch off for a few days just so you can go and get it fixed to turn it back on again. And so other commentators in the industry-- and certainly we see this ourselves-- a very high proportion of digital transformation initiatives fail completely. And we believe that is mostly to do with fragmentation, yes, of technology, but also actually of culture and ways of thinking. And success for us comes through the seamless integration of systems and people delivered in a high performance environment, we're never going to streamline and automate away every aspect of what we do certainly not in the next 10 to 15 years. And so it's got to be how people and systems come together to deliver those streamlined fantastic services for customers. In a financial services organization these models tend to be very similar, the delivery model a number of different channels, omnichannel architecture, and then operational servicing areas that deal with the loans, or the credit cards, or the payments, or the insurance products that the customers are looking for. And then a range of operational support functions that support those if you like internal agents within the bank, so compliance, and HR, and finance, and IT and so on. And fragmentation plagues every part of this organization and these companies. And ServiceNow actually has a capability and reach that extends across every area of this environment. And so what I'm going to talk to you about today is, how ServiceNow can help to connect and integrate from the front through to the middle, and the back to start to bring together a seamless end to end experiences for customers. The organizations that are doing this digital transformation well are generally speaking and working on similar architectures. They're talking about microservices and APIs rather than traditional monolithic architecture. They're talking about cloud first as a way to get away from that legacy technology, as a way to be able to become more agile, as a way to be able to become more scalable at a better cost point. And they're talking about platforms. Not managing, as I heard yesterday. One major bank, global bank, almost 14,000 applications under management. That's a huge amount of complexity, but actually the aggregation and integration of major core platforms and cloud based platforms like ServiceNow connected with others to simplify the architecture, and bring that capability together in a much more seamless and streamlined way. So how does it do it? Well ServiceNow was born in the cloud and it's always been one code base, one platform everything connected to everything else. When we make acquisitions we made a number over the last year of artificial intelligence companies, robotic process automation companies, machine learning companies and so on. We don't bolt on the technology, we take those capable people and we strip the technology down we rebuild and integrate it into our platform. And so that means whether it's an integration layer, or a data management layer, or a compliance layer, which is unique really in the ServiceNow platform for financial services and being able to manage risk and control and compliance. Or in the workflow layer itself highly complex workflows, or in the interaction layer, why they're with customers directly? Or with employees, or in analytics and insight the platform is connected everything's integrated to everything else. And that makes it very, very useful tool if you like for bringing together other disconnected technologies integrating and bringing things together and acting as a glue if you like for fragmentation. And we try and simplify, this capability because my experience of this Lloyd's was, that you could almost use ServiceNow to do anything in that fragmented environment. You could operate around the servicing environment for the bank and solve all sorts of different problems. But we understand that our customers really want to see that blocked into areas that logically make sense, it's not appropriate to say we can do everything, we can do anything across your enterprise even though we probably think that we can. So we talk about compliant customer operations. What we talk about is our green box the accelerators and capability that we've built that allows our customers to get faster time to value across loans processes, payments processes, cards processes and so on. And a huge amount of our investment at the moment and our innovation investment is going into continually building and improving these accelerators that allow our customers to take our platform with low levels of configuration and deploy out of the box in a transformative way. I talked earlier about integrated risk control and compliance that's a unique part of the platform. And ServiceNow in its own right as the leading in terms of Forrester wave or Gartner's Magic Quadrant the leading enterprise integrated risk management platform that exists. But that's embedded within the wider capability. So it means that we can bring that workflow transformation with the risk and control and compliance transformation together to redefine the way that financial services manage risk control and compliance within workflows. The red box talks about our platform for IT and there'll be lots and lots of content and always 21 digital is going to talk to you about that capability, so I will label that one too much. And then finally employee lifecycle and compliance our ability to be able to manage and streamline and automate the onboarding of people's experiences as they come in to financial services organizations. They're through life experiences interacting with their operational activities or compliance responsibilities or whatever else. And then off-board from the organisation at end of that. Again is embedded within the platform, so we can bring operations risk, technology, people management, people lifecycle all together on one connected integrated platform. And what that means is that ServiceNow really makes work better for people. Integrates data systems and workflows across the enterprise to deliver a continuous improvement in cost reduction, and control, and compliance, and quality experience, and in customer experience. And with ServiceNow there's a final C, you don't have to compromise when you deliver these transformational solutions you can have all of these things and single programmatic deliveries on the ServiceNow platform. And I want to talk to you about a use case a customer very dear to my heart Lloyds Banking Group in the UK as I said I spent eight years there, and was very much involved in the whole journey of their digital transformation. And been amazing to see the way that ServiceNow though has been embraced in the bank. It was the first enterprise cloud platform deployed live into production at Lloyds Banking Group, and it really has been used in a phenomenal way and is synonymous for digital transformation with digital transformation bank. So over the course of the three years it's been in place and it continues to accelerate we've run HR and technology transformations, risk resilience, transformations. Then we've moved from those core foundational capabilities that we've built a core technology data model that connects everything to everything else and we've moved into security and supply of transformation facilities management is on the cards. But what I want to talk to you to today really about as the example is, how we've used the ServiceNow platform at Lloyds Banking Group to help them to transform the customer experience and the operational experience for payments. To payments is right at the heart clearly of what it means to be a bank and Lloyds Banking Group processes on any given day as much as 40% of the UK payment traffic making it a fundamental part of the UK economy in those terms. And the payments environment in operations when things work well and things are there's a lot of automation there and digitization when things go well everything is very simple. You know payments take seconds, no problem at all straight through very, very automated, but when things go wrong there are complex processes in that operational servicing environment the customer experience tends to not be as good as it might be. The resource management challenges that the bank has in order to be able to deal with that become a problem. And last year when COVID struck Lloyds was using an Indian outsource capability to deliver a significant amount of the payment operations work and those people had to go and work from home, and the bank didn't feel that using home networks was appropriately secure for them to manage Lloyds Banking Group payments. And so they had to repatriate that work over the course of two weeks very, very quickly didn't have time to hire new people just needed to accelerate the digital transformation. An that's where ServiceNow came in. We looked at a number of processes, one of the processes that want to talk about today is called Payment In Error. So it's when a customer makes a payment with the incorrect details. I think we've all been there. We've made a payment on our online device. We've accidentally put in a wrong number on the account details, and-- oh!-- we've sent 100 pounds or $100 or 100 euros or 100 yen to someone, and it's is the wrong person that we've sent it to. And of course, what do we do? We can't solve that problem digitally. We need to walk into the branch. We need to phone the contact center in order to try and solve that problem. And what that process looked like until recently was this, a whole range of these black boxes refer to a whole range of physical interactions by people inside the bank in the operating environment with different fragmented systems, to order to piece together the solution to get that personal money back. And that took time, and that meant complexity, and it meant swivel cheering, and it meant a frustrating experience for employees, and it meant a frustrating experience rather for customers. But it also meant that risk and compliance and control activity had to be done outside of the process. So that meant that actually in terms of reporting control activity to the regulators and, so on compliance activity that was quite difficult as well. And what we did was ServiceNow as we started to look first of all that workflow automation and streamline the workflow, complex workflow streamlined that down to two interaction points by humans. At the same time we built seven reusable integrations to core systems, unique thing about [INAUDIBLE] about ServiceNow their ability to be able to reuse these integrations, so that you spend the money on them once they can be reused and reused time and time again, for the workflows and processes that need those integrations those particular integrations. So those were two core banking systems, bank letter systems and so on. And so the end state looks also with embedded controls. I talked earlier about the ability to embed control and risk and compliance into the workflows. So again, some of that compliance activity has become if you like digitized and so on. So we're dealing not just with the process, but also with the control and risk environment. And that leaves a dramatically simplified process with around 80% of the manual effort removed a very, very much quicker process for the customer, a very much better process for the agent working in the bank a much, much better experience and actually a far more compliant experience as well in terms of the regulatory oversight of that process. And I think some of the most amazing things-- this is all good in its own right, but significant realized benefit-- the bank did not have to recruit any new people to come into that operation center in the UK. The whole piece of work took 12 weeks. And that for me was a real eye opener, and I love ServiceNow and I have done for a while, but even I was surprised. A 12 week delivery for seven core banking reusable integrations to streamline not just this process, but another one as well was phenomenal. On that other process unable to apply, we removed some robotic process automation technology that had been put in there as well as the case management and some of the other fragmentation, and changed the RPA activity was in 24 cases an hour previously, the API integrations on the ServiceNow solution, the 2,400 cases in the four minutes after the solution was switched on by clearing the backlog before people even have to come in and do the work. We've just done a similar one the next process on the backlog is direct debit indemnity claims, we've taken that process from three hours to 27 seconds, and that no can be dealt with in the end the branch or by the telephony agent rather than having to go into the payment operations environment itself. So there are a whole range of things that we know have on the backlog with Lloyds and this payment space, and to look at how we can partner to drive not just great transformation for Lloyds Banking Group, but actually how we can start to improve more generally the UK payments environment and payment operations environment. As I said earlier that's just one part, just one example of the myriad projects and programs that are running through the best in class center of excellence Lloyds for ServiceNow this year. And across our customers globally I think these organizations are starting to see that ServiceNow can be used in a much, much more extensive way to drive this future of digital transformation. My name is Keith Pearson. Thank you very much for taking the time to listen to this presentation today. I hope you enjoy a wide variety of digital content that's available for K21 digital. It'd be great to see you all next year and physically in the flesh I'm fingers crossed that we'll be able to do that. Thank you very much for joining me today. Have a good day. Bye bye. [MUSIC PLAYING]