Amsterdam Banking Forum
18 November 2022
With speakers and sponsors from 3 continents, and delegates from 15 countries, the Amsterdam Banking Forum was a true international conference, attended by top executives and industry thought leaders to share experiences, views and ideas. Below you can view some of the videos and photo impressions of the event.
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‘Data Ecosystem Strategies in Finance’ – Open Banking and Beyond
by David Gyori
The Future of Banking: Embracing Change
As we move further into the 21st century, the banking industry is experiencing a rapid transformation in the face of technology and new players entering the market. In this article, we will explore the challenges and opportunities that this transformation presents, as well as the ten dimensions of change that banks need to embrace to remain competitive.
Data Ecosystem Strategies in Banking and Finance
Data is becoming the new oil, and the century of data is upon us. Banks were once the kings of data, but now technology giants such as Google, Apple, Facebook, Amazon (GAFFA), and Baidu, Alibaba, Tencent (BAT) have taken over. The rise of open banking through application programming interface (API) infrastructures is enabling third-party providers to own the holistic picture of client financial data. Banks must catch up with technology giants in this data ecosystem strategy.
The Future of Banking: 10 Dimensions of Change
There are ten major dimensions of change that banks need to embrace to remain competitive. The first of these is RegTech, which enables banks to comply with regulations in a faster, easier, and more efficient way. Other dimensions of change include the emergence of new players on the supply and demand sides, such as fintech startups and millennials and Generation Z with different preferences for products and channels.
New products, such as mobile wallets, robo-advisors, BNPL, and augmented reality applications, are also emerging, as well as new channels like voice banking, smart glasses, smart contact lenses, VR, and TikTok. New business models, including monetizing data captured from payments, and new risks, such as the cryptocurrency bubble and cybersecurity risks, are also emerging.
The adoption curve of financial services is becoming exponential, with the rise of open banking and API ecosystems forming a new market structure. Finally, data is becoming the new key input resource, and data analytics is playing a crucial role in developing new banking products, services, and business models.
The Century of Data and AI
Data will become even more crucial as it becomes magnitudes richer, bigger, and faster through 5G, 6G technology, and the Internet of Things (IoT). Data is going to be the key input resource for artificial intelligence (AI), which will bring the entire data ecosystem strategy to a whole new level. Gordon Moore and Robert Metcalfe gave famous interviews in the United States in 1974. Moore’s Law states that the cost of computing, capturing, storing, transferring, analyzing data, and turning data into value is going down exponentially. Metcalfe’s Law states that the value of telecommunications networks is proportional to the square of the number of connected users of the system.
In conclusion, embracing change is essential for banks to remain competitive in the face of new technologies and players entering the market. Data is becoming the new key input resource, and data analytics is playing a crucial role in developing new banking products, services, and business models. By embracing the ten dimensions of change, banks can adapt and thrive in this rapidly transforming industry.
The Future of Banking, Economic Uncertainty, AI, Smart Economy, and Currency Wars
by Brett King
As a futurist, Brett King analyzes the future from a macro perspective, discussing the impacts of climate change, economic uncertainty, and artificial intelligence. The following article explores the zone of possibilities rather than predicting the future.
The Current Economic System
Economic uncertainty is increasing worldwide due to inequality. The wealth of the world’s billionaires surpasses $10 trillion, with the pandemic only exacerbating this trend. Basic economic theory suggests that an economy should prioritize citizens’ needs, such as healthcare, education, and housing. However, the US has failed in this respect, with two-thirds of bankruptcies occurring due to the cost of healthcare. Millions of Americans are homeless, and many are facing foreclosure or eviction due to rent price increases. The pandemic has exposed the shortcomings of the current economic system and the need for change.
The Future of Banking
Brett King has been discussing the future of banking and payments for over two decades. The pandemic has accelerated the shift towards digital banking. The future of banking is digital, and we can expect more progress in this area.
The Impact of Climate Change
Climate change is a significant concern for futurists, with the release of primordial viruses being one of its side effects. As glacial melt increases, we can expect more pandemics to occur in the future. The COVID-19 pandemic is not likely to be the last major pandemic the world will face. The impact of climate change on the economy and society is significant, and we must act to mitigate its effects.
The Future of Artificial Intelligence
Artificial Intelligence (AI) is another area that could shape the future. There are three broad stages of development of AI: machine learning, artificial general intelligence, and artificial superintelligence. Currently, we have machine learning, which involves computers’ ability to learn and recognize patterns. Natural language processing (NLP) is an essential component of AGI, where computers can mimic humans in various ways, such as understanding spoken language and performing medical diagnoses more accurately than human doctors.
The integration of artificial intelligence into our society raises philosophical issues. For example, how will we coexist with machines that are smarter than us? Brett King argues that we need to think about our relationship with AI and develop a better understanding of the potential consequences.
The Future of Smart Economy and Currency Wars
The rise of China’s Central Bank Digital Currency (CBDC) has opened up new possibilities for programmable money and smart contracts. With the development of highly autonomous economies and automated supply chains, the US dollar may become less useful as programmable money and smart contracts become more critical. The development of CBDCs puts China ahead in the race for a smart economy.
The effect of CBDCs on the global economy could be significant, but it is unlikely that the world’s number one economy, the US, will not be able to compete. If China becomes number one, it could declare that the US system has failed, and the US form of capitalism is broken. However, China’s system is more efficient than the US’s system of democracy. The US’s only option left at that point may be military use.
Conclusion
As we face an uncertain future, it is vital to prioritize the needs of citizens and work towards creating a more equitable and sustainable world. Economic inequality, climate change, and AI pose significant challenges that require innovative solutions. The future of banking is digital, and we can expect more progress in this area. CBDCs are likely to shape the future of programmable money and smart contracts, and we must consider their implications for the global economy. In conclusion, the future is uncertain, but it is up to us to shape it.
Agenda from previous forum
