2. Robo-AdvisorMobile payment execution
Blockchain APIs & “open banking”
Crypto-monney
Investing
Blockchain
Big DataCrypto-monney
Personal Finance Management
Investing TradingCrowd Lending
Summary
Introduction 8 / 72
Christian Marchand, Consultant FINTECH
Interview 10 / 74
Paolo Buzzi, CTO and co-founder of Swissquote
Artificial intelligence 14 / 78
Marco Abele, Head of Platform Management & Digitalization at Credit Suisse in Switzerland
Big Data / Smart Data 17 / 81
Philippe Henderickx, Head of Strategic Sales Banking at Swisscom
Open banks and APIs 20 / 84
Ben Robinson and Aaron Phethean are respectively head of strategy and marketing,
and head of the MarketPlace at Temenos
Community Management 24 / 88
Olivier Collombin, Founder of E-merging, the social network for private wealth professionals
and co-founder of Money ID
Blockchain 27 / 91
Daniel Gasteiger, CoFounder of Nexussquared – Accelerating Blockchain Ideas
Personal Financial Management 30 / 94
David Hamilton, CEO at eWise
Crypto-money 34 / 98
Alexis Roussel, co-Founder Bity
Incubator & Vision 38 / 102
Markus Graf, Head Innovation Management DGI at SIX Group Services AG
Crowdfunding 41 / 105
Vincent Pignon, President of Swiss Crowdfunding Association
Contactless 46 / 110
Sebastien Piolat, Head of Business Development, SMARTLINK
Digital Vault 51 / 115
Dr. Tobias Christen, CEO at DSwiss AG
3.
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5. Robo-AdvisorMobile payment execution
Blockchain APIs & “open banking”
Crypto-monney
Investing
Blockchain
Big DataCrypto-monney
Personal Finance Management
Investing TradingCrowd Lending
32 / 96
one-stop-application makes life easier and their spending
more controllable. It is no wonder that many people have
difficulties managing their finances given the high number
of financial relationships an individual has: credit cards,
savings accounts, current accounts, investments accounts,
brokerage accounts, insurance policies, pension plans.
Data privacy and security are key
Banks clearly understand the customers’ demand for sim-
plicity, aggregating all of their financial accounts in one
place and delivering easy-to-use digital Money Manage-
ment tools. So in a world where personal data security is
increasingly under threat, how do financial institutions of-
fer their customers comprehensive Account Aggregation
and Personal Financial Management tools without becom-
ing the custodian of customer data and therefore a larger
target for hackers and increasing the risk of data loss?
The answer to their concerns is to understand the ar-
chitecture of data aggregation models and opt for a cli-
ent-side aggregation model, where all the data remains
private to the customer.
While on the surface, most Account Aggregation solutions
look the same, lurking below are substantial differences
in how data is accessed and aggregated for the customer.
In broad terms there are two types of Account Aggrega-
tion; “Server-Side” where customer accounts and infor-
mation is aggregated by a server owned and managed
by a third-party service provider, and “Client-Side” where
customer accounts and information is aggregated on the
customers chosen device (their mobile, tablet or PC).
In a “Server-Side” model, customers, having accepted
Terms & Conditions that provide “Power of attorney” to
the service provider, disclose their online credentials to
the service provider. These credentials are stored on the
server and are used by the provider to perform aggrega-
tion. Aggregated data is also stored on the server for pro-
cessing and ultimately access by the customer. The inher-
ent risks associated with disclosure of online credentials
to a third-party and the swelling amount of personal finan-
cial information stored by the provider, even if encrypted,
are obvious and significant downsides to this approach.
Conversely, the “Client-Side” model, invented and pat-
ented by eWise in 2000, never requires the customer to
disclose their online credentials to a third-party and all
aggregation is performed on the customer’s chosen de-
vice. All data and information is encrypted and stored on
the customer’s device in a Personal Data Vault, where the
customer can choose to share their data with the service
provider or any third-party through permission manage-
ment (privacy controls). In line with security best practice,
encryption keys are not stored on the device but rather on
“zero-knowledge” servers.
In the client-side model, a financial services firm or Ac-
count Aggregation service provider never becomes the
custodian of the customer’s online credentials. Through
permissions granted by the customer, information they
hold with external financial services providers maybe
shared with the service provider from the Personal Data
Vault. This approach not only offers customers greater
control and choice over the personal data, it eliminates
the compliance, legal and security risks of online creden-
tial custody for the service provider.
Personal data sharing through explicit customer’s per-
mission is the only way to keep their trust
An effect of implicit credential sharing through the serv-
er-side aggregation model means that the service provider
has access to user’s financial data and can then anonymise
and sell that data. In a quest for better opportunities to
cross-sell and increase revenue, sensitive and personal data
has become paramount. There is a very high demand from
companies and financial institutions to acquire personal
data. But taking care of user’s privacy also takes care of the
bank’s objective. The goal of getting more insights in order to
achieve better cross-selling opportunities could be achieved
in a private and secure way that is mutually beneficial. With
client-side aggregation, customers take control over their
data and benefit from choosing who they want to share their
data with through a granular permission management dash-
board. Customers get control back over their personal data
and the bank is positioned as a trusted partner.
Benefits for banks implementing a Personal Financial
Management solution and added value for customers
Successful PFM implementations involve a shift away
from focus solely on internal products to increasing scope
6. Robo-AdvisorMobile payment execution
Blockchain APIs & “open banking”
Crypto-monney
Investing
Blockchain
Big DataCrypto-monney
Personal Finance Management
Investing TradingCrowd Lending
33 / 97
to cover external institution accounts and services in the
financial picture they present to their customer. This cul-
ture shift, the perceived compliance risks, and complexity
of adjusting well established digital channels are causing
financial institutions to be hesitant in adopting and com-
mitting to these solutions.
Questions are being raised such as: What are the benefits
of PFM? What is the Return on Investment? What is the
added value for customers?
There are a significant number of benefits for both cus-
tomers and banks. We can easily highlight three main key
benefits: increased customer loyalty, increased product
penetration per customer and increased digital engage-
ment.
Loyalty is key in obtaining a long-term client base, with
the implementation of PFM and increased engagement,
clients are less likely to switch to other service providers.
A European bank, client of eWise, reduced churn by 50%
with the adaption of PFM. Thereafter, the bank achieved
a 30% increase in balance among users through relevant
cross-selling offers. It was also demonstrated by another
customer that with the right execution and customer ex-
1
Western European weighted average = 0.31 visit per user / day – Cap
Gemini & Efma , 2014 World Retail Banking Report
perience the bank achieved 1.01 e-banking visits per day,
after the first month of launch, which is +225% more en-
gagement than Western European weighted average of
0.31 e-banking visits per day1
.
Enabling clients with tools to be financially savvy has re-
sulted in an increase in loyalty and they become less likely
to change providers. Businesses can benefit from the rich
data collected and created from PFM solutions through
insights gained from data shared by the user. Customers
spending habits allows for a personalised approach to
client relations, increasing cross-sell services tailored to
their needs with direct revenue generation.
The encouragement of using digital money management
tools to achieve goals and improve financial management
can reduce costs in other channels.
Through Personal Financial Management a more hands-
on-approach to financial management and insights not
only gains trust, moreover, a smart approach that will im-
prove the overall services provided by the implementer.