Marjan Delatinne, Ripple: “Digital transformation – a case of change now or face redundancy”
EPS Speaker Spotlight
The world is moving towards Open Banking, with regulation playing a vital role in determining the future evolution of payments. In order to check the industry pulse, highlight the trends and realise the opportunities, we interviewed Marjan Delatinne, Global Head of Banking at Ripple, one of the key panelists who will take the stage at EPS 2019 to share her expert insights into Open Banking challenges and opportunities.
What are the key drivers to digital transformation in Europe?
In Europe, digital transformation is being driven by a fear of becoming obsolete and by the need to boost competitiveness in an increasingly global market. Businesses that don’t have digital transformation at the heart of their growth strategy face the prospect of falling behind the innovation curve. From there, it’s a slippery slope to losing customers, revenue, market share and ultimately, stakeholder investment. So for many, it’s a case of change now or face redundancy.
Let’s look at the payments industry, for example. New technologies such as blockchain, AI and automation have led to an undeniable digital transformation within the industry. Consumers expect seamless, instant experiences – whether it comes to information sharing or buying goods online. This requires money to move quickly and easily across borders as information does, with minimal barriers and cost. Yet, the incumbent model does not offer this. It’s expensive, convoluted and out-of-place in the digital age. It’s time for change.
In your opinion, what does innovation in banking stand for?
Innovation in banking often results from the convergence of three key domains: financial services, technology, and regulation. Advances in financial services simply cannot flourish without an appropriate and effective regulatory framework. When crafted in a balanced, proactive way, regulations can directly drive positive innovation and market competition.
From your perspective, what is the impact of PSD2 on various industry players?
PSD2 is completely transforming the financial services industry. It’s leveled the playing field for start-ups and challengers to compete fairly, for the first time, for customers’ business. Banks will no longer be the one-stop-shop for financial services. If used correctly, fintechs can use this data to provide innovative and bespoke solutions and at the same time, bring financial services out of the past and into the present.
How do see the role of blockchain technology evolving in the financial services space in the next 2 years?
In the next two years, we’ll see financial institutions move their use of blockchain technology from experimental mode into mainstream. Ripple specifically is focused on the cross-border payment use case, as much of the world still uses payment messaging rails that were developed 40 years ago, and a complicated string of correspondent banks that each take a cut of the payment as it moves across borders. Blockchain and digital assets can solve these problems with speed, transparency and at low cost. I think cross-border payments is a natural first real-life use case, and from there let’s see!
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