On October 25, in New York City, Finastra, a global provider of financial software applications and markets, hosted its US Lending Day. Leading figures in the banking, lending, trade finance, and technology industries were present at the event to talk about the most recent developments in the automation and digitalization of financial services, as well as the evolution of sustainable finance.
In addition to live polling and panel discussions, the event included breakout sessions covering subjects such corporate financing, digital trade finance, AI, ESG, and digital transformation. Among the lessons learned are:
an analysis of the key developments and how they affect financial services. For instance, the requirement for retraining and upskilling in technical solutions is being impacted by the ageing population; business continuity programmes are being impacted by harsh weather; and the need for capital efficiency is being highlighted by forceful regulation and a reduction in the money supply.
While recognising that technology by itself is not the answer but rather a facilitator to assist businesses address their challenges, artificial intelligence (AI) is revolutionising the banking sector and opening up new opportunities for risk management, client engagement, and operational efficiency. Experts provided guidance on skilling, data governance, clearly defining challenges that need to be solved, prioritisation, and risk assessments for banks embarking on AI initiatives.
The part that ESG variables play in giving financial institutions and their clients a competitive edge and in creating value. This involves negotiating the sometimes ill-defined field of sustainable financing. Even though ESG is seen as a top priority in lending by most of the globe, there are some significant regulatory variances. To evaluate and report what is actually financially significant, a worldwide baseline is required. This underscores the significance of ecosystem partners in promoting transparency in the global financial services sector.
Corporate financing is still changing, and standardisation is bringing about a lot of improvements. Technology companies need to be flexible and agile in order to satisfy the demands of the financial industry, which is subject to heightened regulations and client expectations. Building ecosystem links is crucial, experts acknowledged, especially now since speed to market is more important than ever.
During the discussion of the problems and potential solutions for digital trade finance, many participants and panellists concurred that trade is frequently overlooked when making technology purchases and usually does not pay for the additional investment in technology. It is critical that banks get inventive with their tech stacks in light of this difficulty and the lack of innovation in product offerings. The managed service or as-a-service strategy was one suggested remedy that enables financial institutions to swiftly and effectively automate and digitise their trade finance activities.
The ESG Service, Loan IQ Build, streamlined loan servicing with Loan IQ, and digital trade were among the novelties and trade finance solutions from Finastra that were presented at the event.
“We are thrilled to present our vision and insights to our partners and clients. We are dedicated to supporting financial institutions worldwide in their digital transformation efforts, utilising data, artificial intelligence, and environmental, social, and governance principles to improve business and societal outcomes,” stated Isabel Fernandez, EVP of Lending at Finastra. “As an enabler of the open finance ecosystem, collaboration between our customers and partners is central to our goals, and we look forward to continuing these conversations.”
Award-winning software solutions and services in the areas of lending, payments, treasury & capital markets, and universal banking (retail, digital, and commercial banking) are offered to institutions of all sizes, enabling banks to support direct banking relationships and expand through indirect channels like embedded finance and banking as a service. More than 8,000 institutions, including 45 of the top 50 banks in the world, trust it because of its innovative approach, dedication to open finance, and teamwork. For further details,