Interview with Riccardo Renna

D: What are the main stimuli right now that are pushing banks to change?

This "new world" is bringing a very strong acceleration in terms of digitization.As Banca Generali, we had already taken big steps in terms of digitization but, for sure, the reception of digitization has increased so much. In fact, we had a 30 percent increase in the subject of digitally signed contracts.Fundamental has been the issue of customer caring, because, in this period,digital has inserted itself within a relational role that previously took place physically, replacing it totally.

So, the digital element is one of the main topics we have been working on that are pushing the various institutions to change. We were already starting from a good point, while other banks, which were not ready in this respect, had to get active in order to continue doing business, but clearly there is still a long way to go.

Q: So what are thechallenges and opportunities for Financial Institutions in facing these changes?

In Banca Generali we are thinking about how we can push further on digital model, so that interaction with clients can take place in the most immediate mode, keeping, however, always at the center the financial advisor, who is the engine of our business model.
Precisely for this reason, we are convinced that some of the more operational activities can be digitized and managed directly by the internal structure, thus leaving the advisor free to focus on his goal: to support clients in protecting family assets.

In this context, the Bank acts as a facilitator of processes so as to provide immediate answers to both advisor and client. To do so, however, requires a more consolidated database. For this reason, I believe that every Bank should know its CRM as well as possible so that it can give concrete support to the advisor, making him or her work optimally and avoiding an additional operational burden.

This very different mode of interaction has led us to have to communicate with the customer in a totally different way than before.

D: Compared to the changing competitive environment, thanks to a growth in the possibility of being able to enact collaborative competition with FinTechs, and with digital becoming more of a driving force, what are the strategies a bank can develop?

We have adopted the open architecture approach as a principle.
At the transformation level, we have moved from a model where the legacy and the front end were built in outsourcing to a model where the front end processes and capabilities have had and are having an increasingly strong integration with the world of external expertise.

In fact, especially in the path of "digitization" of the consultant figure, we have tried to work on processes, making specific agreements with external parties.In addition, we have entered into a partnership in the area of robo for advisors, leveraging the architecture of the partner, its expertise and its engine, but also bringing our own contribution and customizing our ideas to the maximum.Even our trading platform was not built by us but is the result of an industrial partnership with the Danish Saxo Bank, with whom we originated a dedicated SIM, BG Saxo SIM, and with whom, leveraging one of the best trading platforms in the world, we built a unique operating model in the market.

Working with different companies allows us to offer specific services to our clients. For example, we have made arrangements with a number of information providers to be able to bundle all of a client's real estate assets and give them a comprehensive view of their assets.

So, we have begun to approach and make partnerships with individuals who, taken individually, have very good ideas or models but, placed in a context of business proposition and specific consulting, they become disruptive. This, allows us not to offer services that are simply beautiful and innovative, but linked to our BG Personal consulting model Advisory.

This is the model of innovation that, as Banca Generali, we have developed in recent years and are continuing to develop on numerous issues.These models allow you to build revenue sharing models, leveraging best-in-class solutions and reducing the risk of having to build assets from scratch.
 

D: What are the main difficulties within this open innovation approach just described?
 

I think the biggest difficulties come from putting all the pieces together, execution and security.
When you look at the finished product, fundamental is the value proposition that allows you to hold it together.On the other hand, when you look at it from the point of view of execution and at the point when you can have multiple partners, even the more traditional ones, you have to be able to put the various pieces together, making them work in an integrated and secure way.This last issue of security is also critical to not jeopardize the reputation of the bank itself.

D: How does your structure and team deal with this complexity? How do you carry it out?

At the management and structure level, we are very flexible, which allows us to have continuous alignments.Within our structure there is also a part that specializes in projects, with an internal PMO that governs the different initiatives.

When you do process innovation you have to be clear about where you want to intervene and where there may be a change. You have to, therefore, try to keep points of contact with all business functions, so that you are constantly sharing where you need to go to work, allowing for smooth activity.You have to look for a balance between continually looking for new things and maintaining a garrison of processes that you already have and want to make go smoothly.Avoiding tending more to one side or the other.  

Constant alignments and lines of contact between the various functions of the company allow for a fluidity of thought to be grounded, enabling anyone to participate and speak their mind, thus achieving maximum involvement.

D:How do you think a committee such as Steering Committee of the FinTech Lighthouse HUB, of which you are a member, within a university research center can make a concrete contribution to the development of innovation?

The most important thing about these committees is the opportunity to have a time of sharing where people can bring their experiences to the table, helping to understand different expertise.In addition, it is a great space where we can meet companies and new ideas, making us think about how we can fit the same idea into very different structures.Finally, the exchange of information, experiences and needs allow us to understand what areas of transformation there are constraints on nowadays and how we can work together to find system solutions as well.