In case you missed it: Key Takeaways from Sibos 2023

The use of instant payments is on the rise, and with it comes significant reforms within the finance industry. To prepare for the upcoming changes, banks, financial institutions and firms must consider how they can innovate and thrive through digital transformation. Sibos, the annual conference, exhibition and networking event for the financial industry was a fitting setting for this exploration and to network with tech companies, such as GFT, to learn more about the technology that enables the Open Finance revolution.

As always, Sibos 2023 was a massive event featuring many of the most prominent banks in the market, tech companies, consulting firms and product vendors filling the conference with their booths. On the first day of Sibos, GFT spent much of our time with our partners, Thought Machine; and Red Hat, as they invited us to join the spotlight sessions of their partners. 

There, we proposed a single developer'’s hub for digital banks and shared insights on how cloud-native transformation can drive modernization for financial institutions. Our discussion was part of an impressive lineup of sessions, which provided a good mix of business and technology content. It was particularly interesting to hear how regulations and business models affect different markets and differ from sector to sector. 

Time is always well-spent listening to presentations like these, though one of the best parts of Sibos are the conversations that come after. We met and spoke with customers, prospects and partners to share ideas and perspectives from the sessions we watched and the abilities of our organizations. 

Trending topics from the event were Generative AI (GenAI); instant payments, ISO 20022, central bank digital currency (CBDC, asset tokenization, Unique Identity, environmental, social and governance (ESG) and regulations across the world. Representatives from banks, fintechs and consulting firms worldwide joined the conversation in commenting on these topics and sharing predictions for finance’s future. 

There’s an unspoken race to present a compelling use case in the finance industry using generative AI. While there’s been significant advances in AI technology and its applications, organizations are still working on domains and use cases. GFT has experience with AI, most notably in the manufacturing industry. We’ve established AI.DA Marketplace  as our global AI platform, and we are ready to help American financial institutions fast-track their AI journeys. 

It’s likely that organizations will make large investments and allocate parts of their 2024 budget for Gen AI. With this, I can see a major use case establishing itself in the U.S. market in 2024. The potential use cases for this technology are limitless: back-office efficiency, channel innovation and customer journeys. Dave McKay, CEO of Royal Bank of Canada (RBC), shared that he’s following the development of use cases such as software development productivity, prompt engineering and the advancement of the sales process for independent agents. 

The responsible use of AI was also a subject of discourse at Sibos. With cases of fraud and criminal activity already appearing alongside the strides of progress, establishing boundaries and guidelines for AI use is of the utmost importance. However, what is still unclear is the framework and enforcement of these guidelines. 

CBDC is a widely available form of digital currency endorsed by central banks worldwide. It’s a reliable infrastructure for the integration of capital markets and other sectors. Digital payments using CBDC will inevitably find a permanent place in the financial system. Similarly, as was discussed at MoneyLIVE North America in June, some wonder if such forms of currency will eventually replace cash.  

Like CBDC, Environmental Social Governance (ESG) must find a way to become a participant in the financial system. In speaking with conference attendees, others are aware of the adverse impact of not acting soon. Although there is a lack of a clear plan to address carbon emissions and sustainability as a whole, many companies have plans or policies in place to combat climate change. 

GFT is committed to reducing our carbon footprint by 50% from 2020 to 2030. As a technology and services company, we help our clients become more energy -efficient through the solutions we deliver. 

Swift, the Society for Worldwide Interbank Financial Telecommunication, owns the Sibos event, so naturally, payments were a big point of discussion. Swift promoted many of their new products and solutions for the finance industry and prompted attendees to consider how payments and payment rails impact their business. 

• ISO 20022: The implementation of ISO 20022, endorsed by Swift, standardizes the market’s approach. It’s already implemented in most of the instant payment rails, but not yet on the traditional payment rails. 

• Bank experimentation: Banks are experimenting with the collaboration of systems and payment rails to introduce new practices to the industry. Cross-border payments combined with instant payments or cryptocurrency and stable coins on blockchain are some of the many examples of this. 

Ideas like the use of global standards and experimentation can drive economic growth and promote inclusion. Ten years from now, we likely won’t think about the method of our payments, our location or the actual recipient of our transfers. Platforms will be interoperable as a result of our current discussions, innovations and industry standards. 

The sessions at Sibos 2023 centered around instant payments, industry guidelines and GenAI topics. Many of the keynote speakers were CEOs, which offered a good opportunity to learn more about their institutions. 

• Aaron Klein, the Miriam K. Carliner Chair and senior Fellow in economic studies at the Brookings Institution, surprised many with his criticism of the Federal Reserve’s strategies within the instant payment space. 

• Julia Streets, CEO, Streets Consulting, ran a bizarre panel interviewing two chatbots that were created using Gen AI (Aisha and Barb). One chatbot was made with OpenAI and the other with Bard. Such a presentation reminds us of technology’s progress—and potential. 

• Dr. Michio Kaku, author and professor of theoretical physics at City College of New York (CCNY), was the closing plenary. He spoke about AI and quantum computing and how they may shape our future. 

With such compelling advances in the financial sector, Sibos 2023 stayed within its theme of the market’s future. Between instant payments, global standardization strategies and GenAI, we’re already witnessing the industry’s transformation. Don’t wait for others to create new use cases—GFT is ready to join your digital transformation journey and have experience implementing cutting-edge solutions.