The financial system has undergone many transformations over the centuries - the advent of paper money, the granting of the first loans in Lombardy, the money changers in Venice, the introduction of fiat currencies and electronic accounting systems. And the next transformation - digitization - has already begun. One thing is certain: it will only be successfully mastered by those who succeed in shaping the necessary cultural as well as technological change in equal measure.
Digitization is fundamentally changing banking - and making it more relevant than ever before. In a world of networked smart machines, questions of financing can be rethought with pay-per-use models. The growing e-commerce sector is driving digital payments. Even cash-loving Germans are increasingly switching to digital transactions. The smartphone as a central information and action tool defines the everyday life of many people and demands that banking services are available at any time and that financial service providers offer their customers an end-to-end customer experience across all touchpoints. Banks that succeed in this can thus become an integral part of personal life.
Compliance issues drive up costs
However, all visions and ideas must always be reconciled with laws, regulatory requirements and compliance issues. In hardly any other industry is the hurdle of specifications as high as in the financial sector. Integrating the offerings of third parties, providing interfaces, building platforms and participating in complex ecosystems create the prerequisites for being able to react agilely and flexibly to customer wishes and realize innovative business models. At the same time, financial institutions must take special care of the security of customer data and learn to analyze the risks of partners.
"All visions and ideas must also always be able to be reconciled with regulatory requirements"
A study by data services provider LexisNexis shows that, particularly in Europe and the U.S., banks are having to spend more and more money on compliance and fighting financial crime. According to the "True Cost of Financial Crime Compliance Global Report," banks are identifying non-bank payment providers in particular as a source of risk. Compliance challenges are not only a financial burden, but also have a negative impact on productivity. What is needed, therefore, are smart solutions that provide financial institutions with the necessary data insights to better identify customer needs on the one hand and resolve compliance issues faster and more efficiently on the other.
The next evolutionary step
Microsoft's mission is to empower every person and every organization in the world to achieve more. To better meet the unique needs of the financial services industry, we announced the Microsoft Cloud for Financial Services. As a holistic solution, it enables all companies to align with new business conditions and a market environment in constant flux. With us as an open technology partner, banks can move towards Beyond Banking.
The Microsoft Cloud for Financial Services combines Microsoft solutions, templates, interfaces (APIs) and additional industry-specific standards with a multi-layered security and compliance strategy. Our offering meets recognized industry and industry standards from edge to cloud with over 90 certifications and more than 35 industry-specific compliance offerings. In retail banking, we enable banks to provide a 360-degree view of customers, improve digital collaboration, and deliver a flexible, scalable data infrastructure.
Powerful data simulations from the cloud
Because data is what the new banking world is all about. And the use of cloud technology is the key to entering it. The example of Commerzbank makes this clear: Commerzbank and Microsoft have already been working together in the area of cloud computing since 2018. Microsoft now acts as an important strategic partner for the bank's digital transformation. With the Azure Cloud, Commerzbank can develop complex applications and adapt them smoothly without high resource requirements. As a result, the company achieves a higher level of automation, a stronger security standard and significant cost benefits.
Commerzbank also benefits from our extensive expertise in data processing. For example, the liquidity management tool "CashRadar" is a result of the successful collaboration. The solution uses automated data analyses to forecast the future liquidity of companies. Entrepreneur customers can efficiently plan investment projects thanks to a liquidity forecast of up to 120 days. At the same time, "CashRadar" provides a comprehensive overview of developments in all business accounts as well as better control over income and expenses. Finance looks back on a long tradition and has proven its adaptability time and again. With smart technologies such as data analytics and cloud computing, we are continuing this history today to pave the way for Intelligent Banking.
Digitization is fundamentally changing banking - and making it more relevant than ever before. In a world of networked smart machines, questions of financing can be rethought with pay-per-use models. The growing e-commerce sector is driving digital payments. Even cash-loving Germans are increasingly switching to digital transactions. The smartphone as a central information and action tool defines the everyday life of many people and demands that banking services are available at any time and that financial service providers offer their customers an end-to-end customer experience across all touchpoints. Banks that succeed in this can thus become an integral part of personal life.
Compliance issues drive up costs
However, all visions and ideas must always be reconciled with laws, regulatory requirements and compliance issues. In hardly any other industry is the hurdle of specifications as high as in the financial sector. Integrating the offerings of third parties, providing interfaces, building platforms and participating in complex ecosystems create the prerequisites for being able to react agilely and flexibly to customer wishes and realize innovative business models. At the same time, financial institutions must take special care of the security of customer data and learn to analyze the risks of partners.
"All visions and ideas must also always be able to be reconciled with regulatory requirements"
A study by data services provider LexisNexis shows that, particularly in Europe and the U.S., banks are having to spend more and more money on compliance and fighting financial crime. According to the "True Cost of Financial Crime Compliance Global Report," banks are identifying non-bank payment providers in particular as a source of risk. Compliance challenges are not only a financial burden, but also have a negative impact on productivity. What is needed, therefore, are smart solutions that provide financial institutions with the necessary data insights to better identify customer needs on the one hand and resolve compliance issues faster and more efficiently on the other.
The next evolutionary step
Microsoft's mission is to empower every person and every organization in the world to achieve more. To better meet the unique needs of the financial services industry, we announced the Microsoft Cloud for Financial Services. As a holistic solution, it enables all companies to align with new business conditions and a market environment in constant flux. With us as an open technology partner, banks can move towards Beyond Banking.
The Microsoft Cloud for Financial Services combines Microsoft solutions, templates, interfaces (APIs) and additional industry-specific standards with a multi-layered security and compliance strategy. Our offering meets recognized industry and industry standards from edge to cloud with over 90 certifications and more than 35 industry-specific compliance offerings. In retail banking, we enable banks to provide a 360-degree view of customers, improve digital collaboration, and deliver a flexible, scalable data infrastructure.
Powerful data simulations from the cloud
Because data is what the new banking world is all about. And the use of cloud technology is the key to entering it. The example of Commerzbank makes this clear: Commerzbank and Microsoft have already been working together in the area of cloud computing since 2018. Microsoft now acts as an important strategic partner for the bank's digital transformation. With the Azure Cloud, Commerzbank can develop complex applications and adapt them smoothly without high resource requirements. As a result, the company achieves a higher level of automation, a stronger security standard and significant cost benefits.
Commerzbank also benefits from our extensive expertise in data processing. For example, the liquidity management tool "CashRadar" is a result of the successful collaboration. The solution uses automated data analyses to forecast the future liquidity of companies. Entrepreneur customers can efficiently plan investment projects thanks to a liquidity forecast of up to 120 days. At the same time, "CashRadar" provides a comprehensive overview of developments in all business accounts as well as better control over income and expenses. Finance looks back on a long tradition and has proven its adaptability time and again. With smart technologies such as data analytics and cloud computing, we are continuing this history today to pave the way for Intelligent Banking.