Whitney McDonald 0:03
This episode of The thrill is dropped at you by financial institution automation summit us 2024. This annual occasion is tailor-made to resonate with monetary providers professionals targeted on enterprise optimization by means of know-how and automation. Learn to overcome implementation challenges by listening to firsthand from C degree executives from establishments, together with Financial institution of America, Wells Fargo metropolis and extra. There isn’t any higher place to get a learn on the competitors than at Financial institution automation summit us 2024 Register now at Financial institution automation summit.com. My title is Whitney McDonald and I’m the editor of financial institution automation Information. At the moment is February 6 2020. For the thrill welcomes Dudley White. He’s the president of core banking and built-in providers at Fiserv. He additionally served in govt roles for funds and a CIO of danger administration options for the supplier. He’s right here to debate the next tech traits that his monetary establishment shoppers are taken with. These traits embrace digital channel funding, AI funding, fashionable core platforms and knowledge insights. Thanks for being right here, Dudley.

Dudley White 1:02
Nice. Thanks, Whitney. I actually recognize you having me. On the podcast. It’s it’s an honor. Slightly bit about myself. So Dudley White, I’ve duty for core account processing at 5 serves. I’ve been with the corporate now for 5 years. And it’s been a it’s been an ideal journey within the 5 years. I initially got here on as a CIO for one of many enterprise models. After a couple of yr, I moved over right into a funds chief function. After which about two years in the past, I moved over into the core group and took on duty for a subset of these course. After which in Might of final yr, we made the strategic choice of bringing all of our cores collectively. And I’m grateful that I’ve the duty of that core cloud processing group. Previous to Fiserv, I labored at Equifax and performed a number of roles there. At one level I had duty for know-how and analytical providers. I used to be additionally the CIO for the US enterprise for a time period. After which for 3 years, I had duty for world product administration, in addition to product innovation. And earlier than that, I labored at an organization known as S one performed a number of roles there, throughout a few completely different features. I my final function was working in Southeast Asia. So I had duty for Singapore and Thai operations, additionally duty for worldwide skilled providers. And so all kinds of duties all inside the monetary providers house. Previous to s one, I labored at Deloitte Consulting. And I’m a I’m a proud College of Georgia Bulldog and the Double Canine with undergrad and graduate levels from College of Georgia.

Whitney McDonald 3:01
Good. Properly, thanks once more for becoming a member of us a number of background after all within the business. So we’re so excited to have you ever on the podcast and and get your perspective on on what you’re targeted on at Fiserv in the present day. So with that we simply closed out 2023 We’re kicking off 2024. Let’s begin with simply what are some frequent traits that your monetary establishment shoppers have been asking for inside the know-how realm? What are the new subjects?

Dudley White 3:28
Positive, there’s, there’s lots occurring proper now from inside the know-how house. I feel it first begins with digital. So we’re making a giant wager throughout all of our digital belongings. So the whole lot’s tied extra to that omni channel expertise. So the flexibility for us to have a very robust digital presence, we’ve got a platform that we name like an skilled digital or XD and that could be a actually necessary for us, we all know that the banks, banks which have extra digitally engaged prospects are extra loyal, and extra worthwhile. So the funding in that omni channel experiences may be very essential. One other key applied sciences AI, alright, so whenever you look from an AI perspective, you realize, we use the time period AI as sort of one huge time period, however actually, there’s completely different types of AI and conversational AI has been in place. We’ve leveraged it considerably, it’s helped from an operational prices primarily inside the shopper providers or customer support house. I feel you’ll see extra purposes of generative and predictive AI. And there’s, you realize, issues that along with the know-how from a regulatory and from a enterprise rule course of that has to come back in play there, however you’ll begin to see much more funding from an AI perspective from a know-how standpoint, and the whole lot across the open A As API ecosystem, so the flexibility for us to work in an setting not simply with banks, however with fintechs. And we’ve already curated many relationships with fintechs, by means of our open API method, and I feel the whole lot round that’s, is essential. The entire idea of a subsequent technology core as nicely. So having a, a cloud native core is essential, I feel we’re not assume I really feel very strongly have been the leaders in that house. And actually all of our excursions from a standpoint of not considering of a core simply in isolation, however considering of a twin core method. So having our whether or not it’s our DNA core premier core platforms, coupled with our new digital cores permits us to actually be progressive and produce new merchandise to market, I’d most likely be remiss if I didn’t point out cyber, proper. So from a know-how perspective, the whole lot from a cyber perspective, we’ve we’ve invested closely from an encryption standpoint, it’s really whenever you take a look at our spend during the last two years, it’s been very targeted on constructing that moat round our platforms. And actually focusing from a cyber funding standpoint, I feel we’re very a lot the leaders in that house. These are among the key applied sciences and focus, I most likely can be remiss as nicely, if I didn’t point out cloud. So you realize, offering that functionality for various deployment choices, whether or not it’s in home, whether or not it’s hosted with us from an ISP perspective, or offering cloud functionality in cloud simply permits for that full resiliency, that means for self therapeutic platforms having the ability to from an operational standpoint, the the enhancements there. In order that’s a most likely simply the tip of the iceberg so far as know-how focus and 24. There different issues I can point out, like blockchain, that the you realize, the gadgets that I discussed, are, I’d say are high of thoughts for us from a know-how perspective.

Whitney McDonald 7:16
Sure, and plenty of know-how traits that you simply did simply undergo, positively high of thoughts inside the business that sort of displays completely what our protection has been for the previous yr. In order that’s excellent news, relating to tackling what your monetary establishment shoppers wish to implement relating to all of those tasks, and we don’t have to interrupt down all of them. However perhaps you may simply stroll me by means of what these shopper conversations seem like, how does Fiserv actually meet these wants that your shoppers are asking for relating to implementing this tech?

Dudley White 7:49
Yeah, and I feel it actually relies upon upon the shopper itself. Proper. So the dialogue with the smaller group financial institution can be completely different than a few of our bigger FIS. So from a group financial institution perspective, they’re actually dependent upon us for lots of their innovation. They usually actually belief us from not solely know-how perspective, but additionally our place out there from a steerage standpoint. So, you realize, whenever you I discussed digital, and I discussed the whole lot from an omni channel perspective. So having the ability to sit down first, and I feel mapping out a real digital technique is big. I didn’t point out within the first query, which I ought to have, however you realize, knowledge has change into king as nicely. And whether or not you’re this smaller group financial institution, or the the bigger FIA or credit score union, it’s essential so that you can have a full view of your buyer from an information perspective. And we’re making some very huge bets with our Open Knowledge answer, both managing that knowledge for you to have the ability to offer you KPIs and benchmarks to really perceive your house, or are engaged on it collectively or providing you with the the capabilities to drive that. So I feel having that digital piece having a real knowledge technique are these discussions. And I additionally had talked about the from an API perspective, the flexibility for banks to have the ability to rapidly combine with third events is essential. So when after we when we’ve got these discussions, we are likely to try to create a roadmap that you simply don’t wish to do the whole lot all on the similar time. Proper? There’s some issues which might be foundational. I feel that the the API ecosystem is essential to speed up among the different parts. I discussed earlier than the subsequent technology core programs I feel, is foundational as a result of that may speed up the remainder of the innovation. You construct these foundational items first. After which after that, you’re in a position to go to However I’d say among the different parts. Alright, now let’s determine what we will do from a generative AI perspective to doubtlessly scale back a few of your, your again workplace and mortgage processing value, proper. Let’s see what we will do from an total shopper providers perspective, to cut back the the time for decision for incidents and issues like that, let’s see what we will use AI for, for decreasing a few of your mortgage processing prices. Proper, after which you’ll be able to proceed to go to different advances throughout your know-how roadmap, can we are you at present in home? Do you could actually take a look at a public cloud technique and undergo that transformation? So what we try to do is, you realize, change is tough, I feel it first begins with the core. So to the extent that we will create a core that extends to all of those essential surrounds, whether or not it’s knowledge, whether or not it’s digital, whether or not it’s your API ecosystem, having your core totally built-in, lets you first handle the core after which increase into these different key surrounds that can speed up new product innovation and progress.

Whitney McDonald 11:14
One factor that you simply talked about, after all, being generative AI, that’s one theme you can’t essentially get away from proper now. Simply out of curiosity, are you listening to extra out of your shoppers curiosity on the place Gen AI can match into the establishments? Yeah,

Dudley White 11:29
completely. So I, I really did a presentation on the Nationwide Bankers Affiliation, in this autumn final yr, particularly round AI with a deal with generative AI and what a few of these purposes will be, I feel, on the onboarding course of, it may be vital from a accelerating that course of. Additionally, I feel the flexibility for purchasers to get a greater view of a viewpoint of their portfolios with some predictive evaluation in addition to far as the place their portfolios could go, what if kind situations from a generative AI perspective, I see two advantages for the shopper from a self service perspective. However I additionally see the advantages for the financial institution’s decreasing a few of their operational prices, whether or not it’s onboarding or whether or not it’s on backend processing, leveraging AI to actually enhance their effectivity.

Whitney McDonald 12:28
Sure, and I feel that simply as you have been mentioning, we’re simply on the cusp of seeing an increasing number of with with AI, consider it or not Gen AI, it’s all shifting so quick. And also you’re seeing that implementation, rapidly altering as because the months go on, at the same time as the times go on. It’s

Dudley White 12:47
altering as we’re talking, it’s altering. Precisely.

Whitney McDonald 12:51
Now, talking of implementing all this know-how we’ve seen all through 2023, I’m anticipating the identical this yr, know-how spend simply continues to be a precedence for monetary establishments, at the same time as spending pulled again in different areas throughout banks. Expertise stays an necessary effort. Not surprisingly. So relating to ensuring that establishments are tech ahead, I feel the time period that you simply used as being a subsequent gen establishment, perhaps you may clarify what that basically means to just remember to are on the forefront of know-how.

Dudley White 13:30
Yeah, and you realize, and I, I do use that time period, I fell sufferer as a result of I feel it’s a time period that everybody’s utilizing. The fact is, it might be a little bit of a misnomer. It sort of implies a then versus now, when, when really from, you realize, with my duty from a core perspective, it’s extra about regularly evolving, evolving the platforms. So, you realize, to me and subsequent gen platform, most necessary permits for open entry, proper, the flexibility to speed up new merchandise, on subsequent gen platforms or cloud native. So, you realize, in in the present day’s digital world, up to now, it was about three nines, or 4 nines, however now it’s actually about at all times being out there from a from a platform perspective. So having that stuffed with resiliency. So for me, subsequent gen is about fast innovation, new merchandise, serving to monetary establishments develop their their deposit base. It’s about programs which might be resilient and dependable and self heal. It’s about programs that basically play inside that ecosystem for integration. So the idea of Subsequent Gen. Actually all of our platforms have been inside that mode. It’s simply that we proceed to evolve because the know-how permits us to advance these capabilities.

Whitney McDonald 14:50
Now, perhaps you may give some examples and also you don’t essentially have to call them however some some financial institution shoppers which might be subsequent gen some examples of what they’re doing. That will put them into that that folder.

Dudley White 15:04
Positive. So and I don’t thoughts naming, we even have a, on our investor day, in November final yr, we had a testimonial from a financial institution, on premise financial institution, I feel it’s one of many biggest examples. In order that they have been, they’re a financial institution that was on a, our premier core. And we applied a twin core method with them. And inside a interval of six weeks, they have been in a position to improve their deposits by just a bit bit south of a billion. And it’s that kind of speedy acceleration by means of new merchandise providing. It additionally expanded their attain, proper, they have been a smaller group financial institution inside the Mid Atlantic, and now they’re in a position to supply all their providers throughout 50 states. It’s about placing that digital first API first functionality. Within the within the palms of our FIS, whether or not it’s leveraging a premier or FinTech or a DNA core, it’s only a nice instance of us having the ability to take a buyer and actually increase its attain and develop deposits do subsequent gen functionality. Nice. Um, and I can provide you one other instance, as nicely. So name federal in Virginia, it’s a it’s a credit score union. Much like what I discussed earlier than, so far as innovation, we have been in a position to make use of our digital functionality, they actually wished to maneuver way more to tablets of their department to deal with holistic member expertise versus transactional actions, way more of that sort of buyer expertise method. And our digital capabilities considerably helped and improved. Buyer stated and new surveys and knowledge. So you realize, the digital expertise can assist you increase your that subsequent gen can assist you increase your your attain, however most likely simply as necessary to enhance your customer support.

Whitney McDonald 17:10
Thanks for leaving a pair and speaking by means of these examples. It’s nice to have makes use of and the way the know-how is definitely performing and have these takeaways. So thanks a lot for speaking by means of that. Now we we’ve given these examples. We’ve talked by means of the know-how, and naming a few of these was was the funding in cloud and the need for cyber and AI and knowledge analytics. For those who have been speaking to a monetary establishment that’s getting issues getting in 2024, it’s sort of a clear slate, it’s a brand new yr, what are what are these applied sciences that you’d actually suggest a monetary establishments begin with, to maintain up with competitors to guarantee that they’re on a tech ahead path? What would you actually begin with on the tech entrance?

Dudley White 17:56
Yeah, so I’m going to spend money on that situation, sort of assume that the core is in place, proper? So from a, from a core account processing, I, you realize, I’ve talked about it in a number of instances, nevertheless it simply, it begins with digital, proper. In order that means for {that a} seamless omni channel answer. So from a digital perspective, however then even in a position to drive the shoppers to the department as nicely. I actually didn’t talk about manufacturers know-how and department expertise. However you realize, one of many issues from a digital standpoint, I feel it’s a little bit of a misnomer. We’ve by no means felt this fashion, however that it’s digital solely, it’s extra about omni channel powered by digital, however then additionally having the ability to drive these increased valued buyer experiences to the department as nicely. So I, you realize, my recommendation can be begin with a really robust digital digital method, as I discussed, these are extra loyal prospects with increased balances and, and the next margin, however to not be misplaced is the necessity for the the service from the department as nicely. And people two should not. They’re not opposed to one another, they really are complementary to one another. Yeah,

Whitney McDonald 19:15
I feel that’s that’s nice recommendation. And I feel it goes with the theme of what we’ve been speaking about, and the digital entrance. Now looking forward to this yr. It will be nice if you happen to might discuss us by means of what’s on hearth service product roadmap, what you’re enthusiastic about for the yr what’s coming for for 2020? For

Dudley White 19:35
positive. Yeah, I imply, I actually am jazzed about are the investments that we’re making. You recognize, we’re on this journey. I talked about sort of the evolution from a subsequent gen perspective, or the journey for all of our platforms to be actual time, you realize, the place as I discussed digital, we’re, you realize, in a in an period now from the whole lot needing to be actual Time, we proceed to refresh sort of react frameworks and the whole lot that we’re doing from a UI and value perspective. So, actually excited concerning the investments we’re making there. I discussed cloud each, you realize, it’s a race to cloud. So we we moved. I feel, in our credit score union house, I could also be off by one or two, however 88 new prospects to our portico cloud answer in 2023. And I feel we’ll transfer one other 138 or so and in 2024, so very enthusiastic about our cloud transformation. And I, you realize, among the different issues I talked about from an open knowledge, I feel that we’re on the forefront of what we’re doing round offering the instruments and the capabilities, in order that FIS have a full 360 view of their prospects. And I at all times discuss with our I talked about Open API, however we we’ve got a we’ve got know-how and instruments, I sort of I name it considerably velocity courting for for banks, proper, the flexibility for banks to have the ability to actually look by means of the completely different fintechs which might be on the market and make selections so far as who they wish to have relationships with from from an innovation perspective. So, you realize, I’m enthusiastic about all of it. I feel that uh, you realize, we at our discussion board, buyer occasion final yr in in June, we had an expertise Middle and our prospects have been delighted to see the place we’re taking from an innovation perspective, we’re the place we’re. And so far as the place we’re evolving these applied sciences throughout knowledge at relaxation API’s throughout, throughout blockchain, regardless of the that progressive know-how is the place we’re concerned throughout the board. So I’m very excited. Proper. So

Whitney McDonald 21:57
earlier than we shut out, simply wished to ensure you had a chance to cowl something that you simply didn’t hit on or something that we missed. You

Dudley White 22:04
know, we touched on all the important thing themes, nevertheless it’s most likely value reiterating the significance of customer support, and the investments that we’re making from a know-how perspective, I talked about among the AI instruments that we’re investing there. And simply the from a know-how standpoint, as necessary as it’s for innovation and product progress and the whole lot I discussed shifting to the cloud, as necessary or cyber and the shopper expertise. And so we proceed to spend money on our AI instruments like Maeve to enhance that buyer expertise. And we’re very happy with of that funding in that journey that we’re on. That’d be the one factor I’d say we most likely didn’t hit on as a lot as I would love, you realize, in abstract, the the funding and cloud the funding in what we had mentioned so far as extra in evolving of our core platforms, not essentially subsequent gen however the evolution as we proceed to make developments there. After which among the breakthrough applied sciences didn’t point out rpa, however issues round RPA in addition to blockchain and AI are progressive new applied sciences that we’re investing in as nicely.

Whitney McDonald 23:19
You been listening to the thrill, a financial institution automation information podcast, please comply with us on LinkedIn. And as a reminder, you’ll be able to charge this podcast in your platform of selection. Thanks on your time and you should definitely go to us at Financial institution automation information.com For extra automation information,

Transcribed by https://otter.ai