From Business-as-Usual to Change-as-Usual’: Reflections from RFIx25

‘Change-as-Usual’ is a massive opportunity.

The shift to protectionism, changing appetites for global trade and ongoing turbulence were the subtext for nearly all the panel discussions over the two days. 70% of the lenders we surveyed at the event said that ‘global trade uncertainty’ was the biggest challenge in their business.

Clearly, this challenge isn’t going anywhere. But discussions over the two days convinced me that actually, the type of turbulence we’re seeing represents more of an opportunity for banks and lenders who are prepared to grasp the nettle.

Governments are working hard to open new trade corridors, promote internal commerce and foster new manufacturing industries within their borders. Some clients are holding more stock – for certainty – and seeking new domestic or overseas clients. SME’s that once had a strong cash reserve have been impacted by new uncertainties. As a result, the addressable market for business finance is growing, and banks and lenders have a responsibility and a massive opportunity to provide the financial products SME’s need. If you’ve got plans in this space, get in touch – we can help.

We can learn a lot by listening.

It was fantastic to hear lenders talk about the importance of tech innovation for growing and driving the IF industry forward. Even better, many of the technologies that banks and lenders said would make the biggest impact on their businesses in future are already implemented in many of the lending businesses we work with. This includes:

• Open Finance connectivity (Open Accounting and Open Banking)
• Sophisticated, configurable risk-modelling
• Advanced, intuitive workflow and automation builders
• Prioritisation- and escalation-driven task management tools

As software providers, we must help FS providers understand that they don’t have to wait for these technologies – they can be found in some core lending platforms today. As an aside: lenders that choose to implement them today will have a competitive advantage over those who wait, while providing a better customer experience.

It’s important to be open-minded on AI.

AI was the second dominant theme of the event,  and lenders cited it as their biggest business opportunity in our survey at the event.

This enthusiasm for AI was infectious, but it also made me realise that, as a software provider, we need to focus on lenders’ pain points and objectives when discussing AI.

Too often, technologists get wrapped up in what AI ‘means’ or whether a solution ‘is’ or ‘isn’t’ AI. This isn’t helpful. As software providers, we deliver the most value when we stay laser-focused on lenders’ goals and talk in plain language. (There is an irony or poetry in ‘natural language’ being the key here).

Often, the solutions lenders are looking for don’t require AI. Open Finance tools enable lenders to offer a better client experience, work more efficiently and scale their business; risk modelling tools help them to reduce their risk; and workflow, automation and task management tools enable them to respond to issues faster.

The best bit: all this can be done from within the right core lending system!

Thanks again to BCR Publishing for bringing together so many lenders and fostering meaningful conversations between industry players.

The original article was published on LinkedIn.