NTT DATA connects the future of finance at Sibos 2024 in Beijing
GenAI and cloud migration are key to transforming operations and engaging customers in the banking and financial services industry
At Sibos 2024, the global financial services networking event organized by Swift, NTT DATA showcased the innovation and expertise that make us the partner of choice for guiding banks to a future of safe and effective technological innovation. We took part in two panel discussions: one focusing on the potential of GenAI for safe and effective banking transformation, the other exploring the importance of cloud technology. These discussions provided insights into how banks can derive substantial business value from GenAI, modernization and advanced analytics, and underscored our role as a key facilitator of digital transformation in the sector.
NTT DATA focuses on GenAI and cloud migration
At Sibos 2024 in Beijing, NTT DATA explored how advances in technology are transforming the banking sector.
Our panel discussions on generative AI (GenAI) and cloud migration explored how these trends are set to can help organizations remain relevant and competitive to customers who expect personalized financial advice and secure, always-on digital services.
Through these discussions, we showcased our innovative approaches to digital transformation as well as our commitment to driving the banking sector forward with solutions for improving customer experiences, operational efficiency and security.
GenAI for safe and effective banking transformation
On the first day of the event, experts gathered to discuss the transformative potential of GenAI in the banking sector. The discussion focused on how GenAI is set to revolutionize financial institutions, and highlighted regional differences and implementation challenges alongside practical applications.
From left to right:
Gareth Lodge, Principal Analyst of Celent (Moderator); Seiji Tate, Deputy Head of Global Transaction Banking Unit of Mizuho Bank; Masanori Suzuki, Senior Executive Vice President of NTT DATA Japan Corporation; Sergio Lahoz, Global Head of Banking Unit, NTT DATA, Europe & LATAM; Hironari Tomioka, Regional Head of App Solutions of NTT DATA, Inc., Asia Pacific (APAC)
The game-changing potential of GenAI
Seiji Tate from Mizuho Bank emphasized the revolutionary nature of GenAI, stating, "Simply speaking, it will be a great, great game changer. The question is how quickly and how far it will go." Tate then highlighted the importance of robust data and the need for control to protect customer information. While GenAI does have significant transformative potential, a cautious approach is required for successful and responsible implementation.
Strategic approaches and practical applications
Masanori Suzuki from NTT DATA Japan Corporation shared insights into the strategic use of GenAI, noting, "Generative AI is attracting a lot of attention, with many clients and competitors developing and applying it. This is driven by three key factors: the rapid expansion of ChatGPT's user base, the substantial increase of AI-related investment and advancements in multimodal AI." Suzuki outlined NTT DATA's approach, which includes promoting business transformation through cocreation, a GenAI ecosystem and client-owned large language models (LLMs), supported by the company's global GenAI office.
Regional perspectives and use cases
Hironari Tomioka of NTT DATA, Inc., Asia Pacific, elaborated on the unique challenges in the APAC region, pointing to multilanguage AI and credit scoring for the unbanked. He noted that in countries where traditional banking records are lacking, for example in the Philippines and Indonesia, alternative data from mobile phone usage and social media is crucial.
Tomioka emphasized the need for a clear data-acquisition framework and the importance of addressing GenAI accuracy, including the issue of hallucination in AI models.
Sergio Lahoz from NTT DATA, Europe & LATAM, added that, while there are no significant differences between Europe and Latin America (LATAM) in the adoption of GenAI at present, there are some disparities in the outcomes organizations are seeking from the technology in these regions. Organizations in Europe tend to focus on improvement, efficiency and productivity, whereas in LATAM, the short-term objective is to gain a competitive advantage.
GenAI's role in addressing social issues
The panelists highlighted that GenAI has the potential to address various social issues. Suzuki pointed out that GenAI can help mitigate the impact of a shrinking labor force by automating specialized tasks and improving productivity in that have a declining birth rate and an aging population, such as Japan.
The technology can be applied to various sectors, including healthcare, education and public services, to augment efficiency and accessibility. By democratizing GenAI and ensuring robust compliance and governance, it can be used to create more equitable and inclusive solutions to societal challenges.
Future outlook and ethical considerations
The panelists agreed on the immense promise of GenAI, while emphasizing the need for ethical use and adherence to regulatory standards. Tate warned of potential misuse and stressed the importance of leveraging GenAI for the greater good. Suzuki reiterated the necessity of democratizing GenAI and enhancing compliance and governance.
To provide context and deeper insights into these points, NTT DATA's landmark Global GenAI Report offers comprehensive data on how organizations worldwide are optimizing, transforming and innovating with GenAI. This landmark investigation includes input from over 2,300 senior decision-makers across five regions, 34 countries and 12 industries, addressing areas such as strategy and transformation, technology and innovation, people and culture, and safety, ethics, and responsibility.
This panel also referenced NTT DATA's latest research, which surveyed 810 financial institutions' decision-makers on the use of GenAI. This research will be published in January 2025, providing an in-depth analysis of the current state and future trends of GenAI utilization in the financial sector.
The discussion concluded with the panel agreeing that GenAI has revolutionary potential. Watch the full panel discussion video here.
Driving the seamless migration to cloud-enabled banking
On the second day of the event, NTT DATA experts convened to discuss strategies for achieving seamless cloud migration in banking. The panel focused on the drivers and business value of cloud transitions, as well as barriers to successful migration.
From left to right:
Patricia Hines, Global Head of Banking and Payments of Celent (Moderator); Masahiro Endo, Head of IT Infrastructure Technology Department, Financial Segment of NTT DATA Japan Corporation; María Jesús Jiménez, Head of Retail and Commercial Banking of NTT DATA, Europe & LATAM; Niraj Singhal, Group SVP (International Consulting) of NTT DATA Services
The driving forces of cloud migration
Masanori Endo from NTT DATA Japan Corporation noted that the primary driver for modernization in Japan is the shrinking mainframe market. The decline in mainframe shipments and withdrawal of mainframe vendors necessitate a clear modernization plan if organizations with to avoid issues caused by a decrease in mainframe engineers and higher prices due to market shrinkage.
Overcoming barriers to cloud mordernization
Endo noted that the relative reliability of cloud platforms compared to mainframes, and the challenges of modernization projects, can be barriers to cloud modernization in Japan. He then explained how the core banking service of five regional banks in Japan was successfully migrated to an on-premises platform, and used this case study to stress the importance of minimizing changes, in-house application development, and using production data for various tests.
Delivering business value
Maria Jesus Jimenez from NTT DATA, Europe & LATAM, shared insights on the significance of data in decision-making and advanced analytics. She described data in the cloud as "the new water", essential for informed decision-making. Jimenez also discussed the challenges of decommissioning core applications and emphasized the need for cost rationalization and multicloud strategies to avoid vendor lock-in. She shared a case study from the region that showed how cloud-enabled digital channels improved customer experiences and operational stability for an NTT DATA client.
The road ahead
Niraj Singhal from NTT DATA Services provided a forward-looking perspective, comparing cloud adoption to the electric grid 100 years ago, where initially high conversion costs and inconvenience eventually gave way to innovation and value. Singhal outlined the evolution of cloud adoption in five stages, from standardization through to innovation. He also discussed the impact of quantum computing and cybersecurity threats on the evolution of cloud.
Overall, the panelists emphasized that embracing cloud technology, overcoming its challenges, and leveraging it for substantial business value are crucial for financial institutions to remain competitive. Watch the full panel discussion video here.
NTT DATA's report, Digital Horizon: The Technology Shift in Banking From Mainframe to AI-Driven Cloud, published in February 2024, provides comprehensive insights into this significant transition. The report, based on a survey of 650 decision-makers from financial institutions worldwide, offers a detailed analysis of what it takes to shift from traditional mainframes to modern AI-driven cloud solutions and provides practical guidance for how to transition successfully.
Looking ahead to Sibos 2025
NTT DATA partners with leading financial services organizations worldwide to drive digital transformation, enhance customer experiences and improve operational efficiency. We have the global and local expertise to provide guidance on how to navigate complex regulatory landscapes, and our robust cybersecurity solutions are designed to safeguard sensitive financial data from breaches and cyberthreats.
Our participation at Sibos 2024 demonstrates our commitment to steering the sector to a future where technological advancements are implemented safely and effectively, enabling better decision-making, streamlined processes, and innovations that improve the lives of banking and financial services customers worldwide.
We look forward to reconnecting with you at Sibos 2025 in Frankfurt, Germany, as we continue to explore the latest innovations shaping the future of banking!