Digital disruption is occurring at every level in the banking industry. From new technology to new competition to increased customer expectations, European banks have become increasingly vulnerable and are struggling to stay relevant in terms of product offerings, future-ready innovations, seamless and individualised customer experience at every touchpoint, and service engagement. Given this ‘perfect storm’, it is not surprising that nearly all banks today mention innovation as critical to their long-term strategy – especially in relation to technology development. Research and development endeavours in banking industry are an important part of the research agenda of the bluesource since 2019. Using a combination of different technologies such as cognitive systems, machine learning and virtual reality, expert systems and artificial intelligence algorithms, bluesource can help banks unlock the full potential of their legacy platforms and re-position and prove themselves among international competitors.
Artificial Intelligence (machine learning)
Together with our long-term cooperation partner Software Competence Center Hagenberg (SCCH), we pursue a model-based and knowledge-based approach using methods from signal processing, statistics, machine learning (including data mining; see description below) for improvement of many banking processes that might typically rely on intuition or limited or incomplete information. Our AI and machine learning capabilities can be utilised for variety of use cases such as Product Recommendations, Customer Attrition, Customer Segmentation and Product cross-selling and up-selling.
The mission of the “Data Mining” group is to advance methods for the analysis and modelling of complex and massive data (extracted from CRM, loyalty programs, social network…) in banking (industrial) application context. For this purpose, we utilize different levels of analysis like RFM (Recency, Frequency and Monitory) analysis, CTV (customer lifetime value) of customers coupled with K-Means clustering to build robust computational / predictive models and develop an effective customer segmentation thereby increasing targeted marketing. Our research helps banks to be equipped with the knowledge of factors that affected customer’s demands in the past and their needs in the future.
Data Visualisation and Dashboard Design
User empowerment through interactivity is a core part of our research agenda. This term refers to the possibility of banking customer to view data organized according to his/her perception of a domain, to retrieve user-understandable information while allowing the modification of the visualizations interactively and, finally to state a preferred decision. We provide professional and intuitive visualisations such as pie charts, stream graphs, sunburst graphs, radar charts, or network visualisations. In addition, we offer highly configurable and customized Dashboard Design that enables bankers to speed up the execution of customer requests while improving service quality and accuracy.
Demonstration Activities and Pilots
bluesource has extensive expertise in performing pilot and demonstration activities that are needed when introducing new technologies to market. These activities are performed in collaboration with industrial partners (banks, fintechs…); but for a non-commercial application, we have also in-house research facilities to allow the development of specific products or systems proven in an operational environment. Demonstration in operational environments may, especially in the case of new technologies and new banking platforms, require fine-tuning on-site. Here we have a supporting role and research is used to find the final settings.
Digital Security & Security Services Platforms
bluesource has big team that dedicatedly works on security issues. We are using the most secure encryption protocols and enable a very high level of automation (that enables a zero touch environment without human interaction), multi factor authentication to perform administrative task and Privileged Identity Management to make changes that require elevation of permissions and manager approval.
Interdisciplinary Research, Innovation Studies and tech-based Analyses
Our close connection to industry gives us first-hand information on the needs of banking industry and thus the ability to create innovative concepts of industrial relevance. Further, the close connection to academia gives us access to state-of-the-art scientific development and the expertise to make the transition from academic results towards applications. bluesource’s innovation studies and techno-economic analyses play a key role in the formulation of the technology scale as well as in the experimental proof of concept for innovative technologies in banking environment.
bluesource has long-standing expertise in providing and successfully deploying industry-leading, highly-integrated, mission-critical technology platforms for different financial institutions. These capabilities include highly scalable server and client infrastructure built on a micro services-based architecture, secure data and application platforms, Big Data and predictive customer analytics, ultra-low latency OS-level support, productivity, CRM/xRM, workflow and collaboration, as well as the connected user experience both on premise and in the cloud. Such capabilities enable banks to seamlessly and securely collaborate with third-party service providers or other banks while defining and remaining in control of the ecosystem a bank chooses to operate in.
User Requirements Analyses
The importance of a life-cycle approach in product design is increasing and thus it is important to understand the user’s perspective when launching new products. We have delivered innovative end-user capabilities and applications for years. We elicit feedback, digest formal documents (e.g. benefit plans, investment plans, regulatory requirements), prioritize and recommend trade-offs to meet both functionality and cost objectives. To maintain consistent high-quality standards, we are focusing on iterative incremental processes for software development.
Virtual Reality / Augmented Reality
Banking institutions’ requirements for Virtual Reality/Augmented Reality (VR/AR) and serious gaming application services are expanding. As part of our mission to help accelerate the adoption of VR/AR, we are engaging with academic and research institutions with experience in the design and implementation of VR-based games related to banking to ensure an attractive immersive gaming experience for the user. We have identified a Soma Reality GmbH, an SME with successful finance related games solutions on the market. This expertise is complemented by academic experiences of bluesource on visual analytics technologies. The project should start in Q4 2020.