From big data to biometrics

Transcription

1 From big data to biometrics

2 Wells Fargo: From big data to biometrics Seth Marlowe SVP, Treasury Solutions Consultant and Treasury Insights Leader Treasury, Merchant and Payment Solutions Wells Fargo Bank, N.A.

3 3 Hold on to your seats The pace and promise of change has never been greater. faster, cheaper, better bigger, brighter, sharper newer, safer, smarter

4 The revolution will not be televised Smartphone Beat TV for Young Adults Average weekly smartphone and TV usage of adults in the United States Q (hours) 48.5 Smartphone (Web + App) TV (Live + Timeshifted) Source: Nielsen Total Audience Report Distributed by Statista.com 4

5 The pocket-sized life hub 70% of all U.S. online adults use a smartphone MILLENIALS (18 26) Heavy smartphone users for diverse uses: messaging, streaming, social 85% 87% GEN Y (27 35) Highest number of connected devices (4.5) and early adopters (tablet, wearables) 77% GEN X (36 49) Most likely to use for career ( , LinkedIn) 59% BOOMERS (Over 50) Use of multiple devices growing quickly Source: Forrester s, Northern American Consumer Technographics Online Benchmark Survey,

6 6 Smartphones are defining the digital universe More computing power than the Apollo space program Mobility and connectivity drives an expectation of immediate access and information Electronic value chains are easily sliced up by innovation

7 7 Connectivity puts information to work A few emerging technologies to consider Big Data Artificial Intelligence Biometrics Internet of Things APIs

8 Technology, imagination and opportunities 8

9 9 The patterns are out there Information technology generates huge volumes of data, cheap to store and tough to analyze. Data created for narrow processing functions is an untapped source of broader market insights. Classify, learn, reason, and predict possible outcomes. Powerful computational processes can find patterns, trends, environmental factors. Finding generalizations or digital canaries in the data coal mine? Big Data

10 10 Ideas and opportunities Big Data Use sales and revenue data to demystify consumer behavior. Manage liquidity forecasting based on otherwise hidden risk factors. Optimize property expense drivers, operational processes or distribution channels. Identify high-performing talent with a broader data set of company metrics and environmental factors. Pro Tips: Structure: Clean data architecture is critical for clear insights a large bank may have 25 unique data tags for account number. Show it: Data visualization is what really tells the stories of data mining.

11 11 The next frontier Artificial Intelligence It may be a hundred years before a computer beats humans at Go maybe even longer. New York Times, 1997 Master of Go Board Game Is Walloped by Google Computer Program. New York Times, 2016

12 12 Learning on the job Artificial Intelligence Artificial intelligence computer programs adapt and evolve when exposed to new data. Self-learning machines are more scalable for tackling highly complex problems. Medical diagnoses, personalized marketing, and financial fraud detection will all benefit from software that learns from past outcomes. Range and nuance of emotional intelligence is still too vast AI is unlikely to explain your teenage kid s behavior.

13 13 Navigate in your own words AI powers bots that can handle natural language processing Conversational interfaces allow more intuitive interactions with computers Will Siri, Alexa and Cortana compete on personality? Artificial Intelligence

14 14 Ideas and opportunities Artificial Intelligence Digital channel interaction with consumers can be reimagined to provide a customized experience. Employees tribal knowledge about the business can be captured in a machine-learning knowledge base. Routine cash positioning tasks can be automated, with self-improving decision logic based on daily events. Pro Tips: Context matters: Unsophisticated AI will result in clueless bots or skew risk monitoring with false positives. Tone matters: Screenwriters and novelists may have the best computer programming instincts in the future.

15 15 Driving into the future Internet of Things What if cars could share and react to road condition data instantly?

16 16 The expanding value chain Collect and process data signals via system actions or activity sensors. Modern cars have over 100 sensors that create 25 gigabytes of data per hour. Gartner predicts 20 billion things will be connected globally by This will drive convenience but commercial value is tough to predict McKinsey guessed an economic impact of $4 trillion to $11 trillion by Internet of Things

17 17 Ideas and opportunities Internet of Things Any action or event in your supply chain can predict inventory impacts, or trigger supplier performance payments. Give yourself and your customers insights about how they can optimize the use of your services. Generating information from data can add whole new product layer Adidas sells a soccer ball that tracks kick power and trajectory to help coaching and training. Pro Tips: Monetize: Data streams need thoughtful pricing strategies to reflect how much data is sent and/or used. Security: Connected devices need the same security protection as any other access point that could be hacked. Privacy: Let customers opt-out.

18 18 Security gets personal Authentication controls become increasingly critical. Uniqueness and custody strengthen access credentials. Converting image scans to data enables controls. I am my password Biometrics

19 19 Authentication factors Hackers drive security innovations Biometrics What you have Physical token Virtual token Device recognition Where you are Location identification Geo-fencing What you know User ID, password Secret questions PIN codes What you are Fingerprint Eyeprint Facial recognition

20 20 Ideas and opportunities Biometrics Look at mobile access needs of employees or customers to assess the best uses for biometric security tools. High-risk payment transactions or sensitive account information need twofactor authentication. Customers expect the right balance of security and ease of use. Pro Tips: Offer Choice: Introduce new biometric controls as optional, and retain alternate authentication methods for user choice. Security: Technology is no substitute for strong policy, process and human monitoring to ensure controls are working.

21 21 Go to where your customers are APIs embed services inside the digital interfaces where and when those services can be most relevant. Digital mash-ups create joint value propositions for business partners common customers. APIs

22 22 A catalyst for innovation Simple API integration lowers barriers to entry, accelerates development cycles, and cuts time to market. Ease of sharing data between platforms drives open technology strategies, composite products across providers, and coopetition. Check weather, buy an umbrella and have it same-day delivered to your hotel all from an airline app before you leave home. Businesses that were once on every corner And then on any screen Are now inside every app, and anywhere else APIs

23 23 Ideas and opportunities Extend your sales channels, product offers, or customer account data into partners digital environments. Plug your service providers directly into your operating environment. Bring requests for FX rates, payment status, or check images into your workstation interface all for immediate response, without logging on to a bank website APIs Pro Tips: Keep it simple: Highly granular APIs are better building blocks for composite solutions. Think creatively: Bring your partners, vendors and customers into your business model. Or put yourself into theirs.

24 Pivoting to the Future 24

25 25 Hype is fast, but success is slow Experimenting doesn t fail if it drives learning that pay off later Start with goals or challenges your company already has Don t assume everyone else has it all figured out Look for opportunities to partner to pool resources and expertise

26 26 You know more than you think you do Technology doesn t change your core business but helps you change how you run it.

27 27 Thank You 2017 Wells Fargo Capital Finance. All rights reserved. Products and services require credit approval. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

28