Expert roundtable discussion: PROCESS MINING

28 February 2021
published in the current issue of the magazine gi Geldinstitute

For the trade magazine gi Geldinstitute, leading experts answered Stefanie Walter’s questions on the topic of “Process Mining at Banks”. Jochen Werne – Prosegur Germany, Gerrit von der Hardt – TARGO Dienstleistungs, Sebastian Hennerici – Aareal Bank AG, Gerrit Meier – Hanseatic Bank GmbH & Co KG, Thorsten Briest – PSD Bank Braunschweig eG, Christian Meusel – Berliner Volksbank eG, André H. Burger – Synpulse Management Consulting

Professional know-how and the right feeling for changing customer needs are essential factors in being able to innovatively develop needs-based solutions for our customers.

The entire roundtable talk in the current print edition or soon online at www.Geldinstitute.de

History lessons for a digital future: Why are our times comparable to the 1450’s?

On Tuesday, November 5, 2019, Managing Director Dr. Stefan Hirschmann and his team from VÖB-Services organised an inspiring BANKENNETZWERK networking event “Digitisation and digital competence in banks” with an auditorium of 70 banking professionals.

Bankennetzwerk am 5.10.2019 im Holiday in Düsseldorf Digitalisierung und Digitalkompetenz Foto und Copyright Bernd Schaller Kiefernstr. 18 40233 Düsseldorf www.schallerfoto.de info@schallerfoto.de 00491776769111

Learning from history is crucial to understand the current societal changes triggered by technological progress. It‘s the basis to be able to make smart strategic decisions in a fundamentally changing business environment.

Some examples in the keynote referring to Professor Niall Ferguson‘s inspiring book „The Square and the Tower“. Enjoy some of his insights here

Bankennetzwerk am 5.10.2019 im Holiday in Düsseldorf Digitalisierung und Digitalkompetenz Foto und Copyright Bernd Schaller Kiefernstr. 18 40233 Düsseldorf www.schallerfoto.de info@schallerfoto.de 00491776769111

See more impressions HERE

The four principles of good governance

Author: Jochen Werne | First published in German on September 6, 2019 in the BANK—BLOG

Author Jochen Werne

How banks create stability to survive in change

The “cobra effect” is a prime example of failed incentive structures. Good governance in banks and savings banks must serve stability and flexibility at the same time. Compliance with four principles is indispensable.

Well-intentioned is not well done yet. Science calls this the cobra effect. It goes back to an event when India was still a British colony. In order to control a cobra plague, a British governor placed a bounty on every snake that he killed. With the result that enterprising Indians began to breed cobras to collect the bounty. When the governor learned of this practice, he had the program stopped and the breeders released the snakes. Result: The problem had multiplied.

The Kobra effect is regarded as a prime example of failed incentive structures – and thus of failed governance. This word, derived from the French “governance” for government, is often used today, and with its almost inflationary mention, the blur surrounding it is also growing.

So let us recall: governance refers to the structures and forms of governance that exist in a society. This refers to the interaction between the state, the private sector and interest groups. The aim is to improve the management of an organisation or a political or social unit in order to achieve better results.

Stability as an objective of governance

However, it has become common practice to use governance primarily when it is not a question of state structures. For example, the term plays an important role in practically all companies that deal with the public in the form of customers or stakeholders. As a result of the blurred use of the term, case studies from politics are often used today to explain economic frameworks.

Undoubtedly, there are many parallels between the governance of states and the governance of private companies, in their structure and processes and thus also in their form of governance. The decisive factor for both is first and foremost stability and thus the ability to cope with major crises. For states, the core of stability is the constitution, which enables leadership during the crisis and at the same time serves as the basis for a way out of the crisis. A current example of this is the national crisis in Austria. The government has failed; until the next elections a transitional government of experts will lead the country and thus guarantee stability. Around this core, however, a state structure must also have a certain flexibility in order to be able to react to developments.

Stability plus flexibility

And this is where the differences to the private sector begin. States are not in competition with the private sector and generally continue to exist even after crises, even if in extreme cases the political system and its fundamental form of governance may change. The situation is different for companies. Of course, they also need a stable core. But they must be extremely flexible and adapt to market situations in order to survive in the long term. Their stability is based on the flexibility of the process organisation. When it comes to flexibility, smaller companies often have an advantage over large, difficult-to-maneuver corporations. We see this in the financial services industry with the example of FinTechs and InsurTechs. However, these relatively small companies often lack the stability they need to survive when consolidating.

Let’s take the example of the banking industry: It faces clear challenges – digitization, new competing business models, exponential technology leaps and ever shorter product cycles with lower margins and increasing regulation. Sustainable answers and the resulting strategies will only be found by those houses that are stable in themselves on the one hand, but are also capable of a degree of flexibility that has never been demanded of them in history on the other.

Four principles of good governance

But how does a company obtain the necessary stability? There are four principles for good, i.e. successful, governance, which must always be present:

Accountability: There must be an organization that is controllable and controlled.
Accountability: The company as a whole and each individual employee are accountable for their actions.
Openness: Only when employees, customers and stakeholders understand what is happening is transparency actually lived out.
Fairness: Ethical conduct is one of the foundations for long-term value creation.

Governance must be lived

In order to achieve a satisfactory situation for both sides, the four principles of governance are indispensable. However, it is not enough to lay them down in statutes; they must also be lived by each individual.

In addition, the current major transformation issues, which not only the banks but also the entire economy have seized, should be seen as an opportunity for companies with a consolidated governance structure and remind us of a statement by the Roman philosopher Seneca, who said: “Only the tree that has been constantly exposed to gusts of wind is firm and strong, because in battle its roots are consolidated and strengthened”.

Keynote: ARE CERTAIN CULTURES MORE PREDISPOSED TO CYBER-THREATS?

Great discussions on the suspicious nature of society with data experts at the BankenForen Conference IT- & Cybersecurity in the financial industry

Details HERE

Panel discussion at Handelsblatt Bankengipfel 2019 – “AI in Banking”

Inspiring discussions with Michael Kaiser, Head of Department for Financial Institutions at the Office for Data Protection of the German State of Hesse & Ralf Heim, Co-Founder of Fincite.

Handelsblatt panel from left: Katharina Schneider, Ralf Heim, Michael Kaiser, Jochen Werne

Finance Journalist at Handelsblatt Katharina Schneider greatly moderated the panel: “Chances & Risks of #Technology – Can data protection and artificial intelligence be reconciled?”

Details HERE

Handelsblatt: How Artificial Intelligence can make banking more efficient

by Katharina Schneider – Handelsblatt, 21 August 2019

“It has been inspiring discussing with Katharina Schneider about AI and the future of the financial sector and being quoted in her article among other experts as Prof. Andreas Dengel (DFKI), Dirk Elsner (DZ Bank) and Nils Beier (Accenture) . Read the original article here

Jochen Werne

Frankfurt The interplay between artificial intelligence and the financial sector in Great Britain will soon be very vivid: from 2021, the portrait of Alan Turing will adorn the new 50 pound notes. The scientist is known for his early research on computer technology. (translated with DeepL.com)

Read the original article here

Artificial intelligence in the financial sector

It has been pleasure being guest author for the DIGIPRAKTIKER, Finanz Colloquium Heidelberg.

What role does the human factor play in times of exponential technological progress?

Author: Jochen Werne, Director Business Development, Product Management, Treasury and Payment Services at Bankhaus August Lenz & Co. AG

I. Introduction

The only constant in history was, is and remains change. Gutenberg’s invention of the printing press in 1450 was a milestone on the timeline of human development. Today we still take note of this invention, which was considered an innovation at that time, but we have long lived surrounded by smartphones and cloud applications, in which we can store the most private information and retrieve it from anywhere in the world. Today’s change is being driven by a veritable digital revolution.

Digital change already has fundamental consequences for individuals and their lifestyles, but it is developing its full potential when it comes to interacting with our social environment. In times of smart robotics and maturing systems in relation to artificial intelligence, the question arises again and again what role humans play on the stage of these technologies. Is he …

Read the full article by clicking here and being forwarded to the DigiPraktiker

Author Juliane Waack writes about J. Werne’s keynote on societal & business transformation

What’s next? Expedition into the digital spheres

25. JULY 2019 BY JULIANE WAACK – KEYNOTE BY Jochen Werne

Digital Expert Author Juliane Waack

For the opening keynote of our ec4u virtual conference Digital Thoughts on May 23rd, Jochen Werne, Director Marketing & Authorised Officer at Bankhaus August Lenz, talked about opening up to the digital transformation. It turns out, what we associate with technology and what it actually offers are often two completely different things.

Jochen Werne

„Companies and people need to participate actively in the transformation. We need to move. It’s impossible to be a passive participant in the transformation.“

J. Werne

READ THE FULL ARTICLE HERE