Why Open Banking/AI/AR is exciting is going to shape Payments andFintech of the future in the Middle East by Farshad Nowshadi

1. Why Open Banking /AI/AR is
going to shape Banking,
Payments and FinTech of the
future.
 New Open Banking/Fintech type services coming our way.
 Best Strategy to enable your Bank to work with FinTech start-ups
 Virtual (VR) and Augmented reality (AR) in Payments-Latest trends
 Creating immersive, emotional experiences
 Banks new generation competitors: Google/Apple Pay/Amazon/FB
 Other technology that could effect your Bank, AI, Voice, BlockChain and
new mobile Proximity services
 My Wish is to suggest what Banks/FinTech’s should
be doing for the Future!

2. Farshad Nowshadi. M.Phil
 25 years Global Consultant to Reuters Financial
 VP-eStrategy (Advising Board) for Saman Bank
– One of the Largest Banks in the Middle East
 Investor/Mentor/ to European Startup Finance-Tech companies
 L39-Canary Wharf -London
 Station-F Paris –FinTech PnP/BNP FinTech Startups
 Initial Investor into GOOG
 Consultant to Microsoft Financial Services & D-Bank
 International Author of Managing Tech/Finance Books
 International Speaker at many Global Banking Conf’s

3. Rise of the Internet/Technology
has changed Banking forever.
“Creative Disruptive”

4. Finance and Tech:
Todays amazing Rate of
Innovation
Is the fastest ever ..
But
“It is the slowest rate we will ever
experience in the next 100 years!”
 Partly thanks to Open Banking (PSD2) innovation

5. I Predict Death of Cash by 2025!
CCards to follow few years later!
 “Bank Branches and just cash
dispensing ATMs will both
disappear over time!”
 Dealing with Cash has its
drawbacks..
 Big overheads to process
 Security issue & Tax
 Often associated with Money
Laundering
 Dirty
 Is your Bank Ready for
what is coming?

6. This is BIG: Europe's PSD2
(Payment Service Directive 2)
 Is Going to accelerate further Banking Innovations
 Thanks to Standardizing European Wide Open Banking
Access via API’s
 13 JANUARY 2018-Went Live

7. Why I think Open Banking (PSD2)
is Sexy for Customers!
 Problem Today (To access users Bank Acc Details)
 Need to talk to individual Banks for its Access terms
 Or Use Dirty Screen Scraping!
 Very time consuming, and limited diversity
 New Dawn of Open Banking.
 One API for accessing all Open Banks/Financial Co.
 Standardize Data Security T&C and User/KYC User Identity
 Improve competition and reduce Fees
 New Services can now Focus on
Improved convenience with reduced COSTs!

8. This is BIG: Europe's PSD2
(Payment Service Directive 2)
 Consider the Advantage to
Amazon (Or Google/FB) ..
 When it gets Certified as a PISP
(Payment Initiation Service Provider) ..
 Reduced Fees and improved Usability

9. Examples: New Open
Banking Apps
 YOLT App (a ING
Bank Startup)
 Sync all your
Bank Acc
 See in one
view
 See spending
clearly
 Do better
budgeting.

10. Comparison Financial Site-
Few suggestions..
 Many People starting to go straight to
Comparison Financial Services sites
 For Accounts, Loans, Mortgages etc..
 Example: MoneySuperMarket.com ,
Gocompear.com
 Old Days go to your Bank, and go with what
ever they say is coming to an end.
 Use them to your benefit
 Use them to monitor your competitors
 Ensure you are compatible (Where possible)

11. Few Technology that I think will
help you to create an
Omnichannel Presence in 2018!
VR and AR,
Proximity, AR, BlockChain, Voice

12. VR and AR open
amazing possibilities
 VR vs AR
 What is the
Difference?
 Here now!
 Google and Apple
investing big time.
 iPhone 8+ and
Pixel 2 supporting
rich AR

13. AR in Banking is it
coming your way?
 AR your Card, Branch,
Publications
 Google to Extend Street
View to show your
Items/services in your
store.
 What could this mean
for Banks?
 See your Manager?
 Ask questions?
 See what is on offer?

14. Example of VR in Payments
 A demo of what AliBaba is working on now.

15. Amazon Example
of using AR and AI To simplifying
Buying and Paying!

16. Voice is the New Touch!
 Just ask your Bank what you want!
 Alexa-Amazon & Google Home

17. New Technology Provider Solution
 The main Key Player
 Apple Pay
 Android Pay
(Old name Google Wallet)
 Samsung Pay
 + Magnetic Strip Compatible
 PayPal
 All support Tokenization idea and
NFC framework.
 Is more secure. Its tokenization method means retailers
never see your actual credit or debit card number, just a
virtual account number as a one off Token.

18. Google Wallet Pay Via Email
Now Support USD and UK Pound
Inc Gmail on your Mobile! Send or Request Payments
What does this mean for 1.5 Billion Users?

19. So What can we do
with the Technological
challenges facing us?
(A few practical suggestions)

20. What is one top thing Customers want
from our Mobile/Internet Services?
Convenience at Better Value!
 Speed, Reliability, Security all flow on..
 If you can really deliver this-
You will be successful……...

21. Example of Convenience
 HSBC introduces “Faster Balances”
 Once activated, simply swipe the App
home screen down to view the balance of
your chosen account(s)
- no need to log on
 Integrated into your Mobile Banking App
 Fast Balance can be turned on or off
quickly and easily
 Master Card (Selfie & Blink!)
 Passwords are such a Pain!
 I always say “Less is More.
But do less, even better!”

22. Next Gen Banking Apps
 A Complete renewed design
 Bank Services (Old) vs Customers wants (New)

23. Saman Bank: Investing Today in
Mobile Payment services of
Tomorrow

24. Advice create: Create Userbility Labs
 Invite our Focused Group users
to do the basic tasks on our
Product/Services
 Use your Services on Customers
 Now really observe in the Lab,
how easy it was for them!
 Compare it with the Competition
products!
 If we get this right (like Amazon
and Google) you will become a
great Bank of the future!

25. Advice: Get involved with
FinTech Start-ups Corporate Vs Startup
culture
 (Waged/Pension) Vs
Share/Stake Holder
 Why take Risk ? Vs Must
Take a Risk
 Big Over Heads Vs Min
Over Heads
 Slow decision making VS
Quick decision making
 Be an Angle or VC into
FinTech Startups
 EG: Level39, Avatech,
Transferwise, Bahamta

26. Final Advice- For you and your
Banks
• Look into using AR and VR, to simplify users
experience
• Look into “Open Banking” initiative
• Invest today in the Best Mobile Solutions
• Be an Investor/Mentor in Accelerators/Incubators
for Startup Finance-Tech companies (R&D)
• Invest in Usability Focus before public release
 Provide a Fantastic, Convenient and great Value
Banking Service for your customers.
This is the only path for long term success!

27. AI Payments of Future :
Apps, AI and convenience-NOW!
 No Cash
 No Cards
 Just use your
Mobile and Just
Talk!
 Bring it all
Together
“Google
Transactions”
 Identity
 Shopping Basket
 Options
 Receipts
 Delivery Address
 ePayments

28. My name: Farshad Nowshadi
From : Saman Bank
VP-eStrategy
Email: f_nowshadi@sb24.com
Please feel free to fill out your evaluation.