Time to secure our emails

In February I wrote about the growing awareness of cybercrime targeting the financial services and the industry’s need ”“ and I would say duty ”“ to help protect consumers and businesses against this invidious problem which has been growing year-on-year. Little did we know at that point what was coming down the line.

The current crisis in which we find ourselves ”“ with the public fearful of the pandemic and businesses having to enable staff to work from home ”“ have made both even more vulnerable to cybercrime. Cybercriminals are playing on not only people’s fears around the Covid-19 pandemic but also the unprecedented need for staff to work from home, stretching companies’ communications channels and security systems.

Regulators, including the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR), have issued warning statements on cybercrime and scams, a clear indicator of the seriousness with which they take this issue and the extent to which it is a problem ”“ see FCA: https://www.fca.org.uk/news/news-stories/avoid-coronavirus-scams/.

Incidences of scams, like phishing and smishing’ ”“ i.e. when criminals use emails or text messages to impersonate individuals or organisations to trick people into giving away their personal and financial information or money ”“ are reported to have increased notably over the past few weeks as the Coronavirus has taken hold.

At the same time, the need for data and information, including that of a personal and confidential nature, to move outside of companies’ security systems, has increased the risks for businesses, including that their communications will be intercepted.

For the financial services industry, this risk has been exacerbated by the end of the tax year and the need to meet tax and investment planning deadlines, which has meant advice firms have needed to get client requests and information to platforms and providers in the most expedient way.

As you might expect, most communications are by email, particularly between adviser and client, because that is the most familiar, fastest and easiest channel to use.

As mentioned in my article in February, working with leading cyber security specialist Beyond Encryption, we have developed and launched a new encrypted email solution for the financial services industry, in particular aimed at protecting the communications between product providers, platforms, advisers and end clients.

So, to help financial advisers secure their email communications during the crisis, we’re providing two months free use of the Unipass Mailock premium service for our Unipass identity service users in advice firms. To take advantage of this, users simply enter a voucher code (2monthsfree’ via www.unipassmailock.com/) to get access and there is no automatic renewal and no payment information required to get started.

It is our way of helping the industry to tackle this particular issue which has been magnified by the current unprecedented crisis we are all experiencing.

I would add that in an industry where transmission of data is key, and emails are the primary communication channel and will remain so for the foreseeable future, now, more than ever, it is time to secure our emails.

COVID-19 ”“ New update from FinTech Scotland 28/04

As we enter the 6th week of lockdown, FinTech Scotland CEO, Stephen Ingledew, is giving us a two minute update on examples of what’s happening in the Scottish fintech cluster and beyond.

We’ve been delighted to see how Scottish fintechs have adapted to the situation and many are using their innovations to address the economic and social impact of COVID-19 on people, businesses and the economy including
Inbest, Castlight, Wallet Services, BePayd, DirectID, Amiqus, Sustainably, Modulr, Giftround, Float, Xpand Access, Soar are all rising to the challenge.

Nicola Anderson published a great blog highlighting some of the fintech innovation initiatives.

We’ve been working with colleagues from eight other European fintech hubs to draft a proposal to submit to the EU commission highlighting measures that could be taken at the European level to help the fintech sector through such difficult times and contribute to the overall effort with their innovative solutions.

In the video Stephen also gives a shout out to our friends at French fintech firm Worldline who organised a virtual running event to support the NHS front line teams.

We hope you and your families are safe and we’ll be back soon for more updates. Please keep in touch in the meantime

FinTech Scotland Team

COVID19 – Scottish Fintechs fight financial vulnerabilities

The past few weeks have been unprecedented, and as we continue to hear the developing views of what’s being described as the new norms’ it’s likely we’re going to continue to experience more turbulent and unchartered times ahead.

The impact of COVID-19 is being felt far and wide and is presenting so many challenges for everyone as we all work together on the immediate priority of staying safe and healthy. But for many people there is an increasing additional worry about money and finances as they grapple with the consequences of an unexpected income hit, closing a business or loosing their job. Many are facing extremely difficult circumstances, possibly exacerbating previous problems or exposing others to real financial concerns for the first time.

Since I’ve known it, the spirit in the FinTech Scotland community has always been about inclusion and better outcomes for people and business. In the last few weeks we’ve seen many of the fintech SME’s turn their attention to the impact being felt across society as businesses, and fundamentally people, look for help to access money, finance and help with basic essentials. It’s what these fintech businesses excel at and the results continue to inspire and impress.

Scottish fintech’s are using their data analytic capabilities and technologies to develop a range of propositions that address increasingly difficult issues. Alongside members of the FinTech Scotland consumer panel they are exploring newly developing priority issues to help people get access to services that help meet some basics fundamental needs.

 

These developing examples of access, access, access’ include:

InBest’s work with community leaders and the impartial debt adviser sector to help people understand if they may be entitled to social security benefits like universal credit within minutes. It’s using AI, Open Banking and data analytics to help pinpoint potential ways for advisers to help financially vulnerable people to maximise their income.

 

Soar’s is working hard across the with credit union sector, building on its experience of working with this important community service and  helping them move to an online and digital platform. This is enabling more credit union customers get access to vital savings or credit from the community lenders that know and understand the local circumstances.

 

Amiqus continues to use its expertise to help people verify their identity in a digital environment to help them gain access to vital services and benefits. This team use their data and technology capabilities to help employers, banks, government and other vital services clarify an individuals identity in a virtual world.

 

Direct ID, a fintech data and tech expert is working to help give lenders, employers, landlords and others a means to adapt physical parts of their processes that depended on premises or branches being opened, to virtual and online systems.

 

History tells us that it’s the moments of crisis, or at times of emergency, that great leadership and innovation spark progress and change. COVID-19 has raised a number of issues that people need immediate help with. We must hope there will not be another crisis like this again, but must not loose the opportunity to address the experiences and needs we’re seeing as a result of this pandemic.

It’s time to rise to challenge, working to enable greater financial inclusion and access in unprecedented times feels like an opportunity not to miss. I’m privileged to work in fintech and with the Scottish community who are keen to progress this issue. If you’re interested in collaboration or hearing more please  get in touch.

Research – Why 4 in 10 businesses abandon banking applications?

A research by Scottish fintech Encompass shows that almost 40% of UK businesses have deliberately stopped an application for banking services in 2019 due to slow due diligence processes’.

200 companies took part in this survey which tool place after the Chancellor of the Exchequer announced a £330bn rescue package to help UK companies through the Coronavirus situation.The results also show that companies plan to prioritise spending on cybersecurity over anti-financial crime compliance. Indeed, over 80% of firms said they were confident in their understanding of exposure to financial crime with the appropriate processes being implemented.

However, when looking at the data, just over 40% of them said they did not regularly put customers and suppliers through formal KYC processes and 60% of them hadn’t trained their collaborators on how to be compliant with the Fifth Money Laundering Directive (5MLD)

You can read the full research and more here.

COVID-19 – An update from FinTech Scotland

After 2 weeks of lockdown, Stephen Ingledew, chief executive of FinTech Scotland shares in brief the focus for the team in the current challenging climate.
The FinTech Scotland team focus has been on communicating with the fintech SME community on a daily basis and gaining insights on key needs and challenges through community surveys . We have appreciated the engagement and feedback which will drive our priorities in the coming weeks.
The surveys and ongoing conversations give us valuable intel about the impact of the Coronavirus on fintech SMEs and we’re sharing this with Government agencies and our strategic partners to respond where possible with the required support.
As an example, we’d like to take this opportunity to highlight some of the ongoing resources available for fintech businesses:
  • Ongoing update by the Scottish Government on business support available. For question call 0300 303 0660
  • ScotlandIS  coronavirus hub with a number of resources to help tech businesses responding to COVID-19
  • Deloitte are also providing useful information and webinars on their hub
  • For legal assistance, Pinsent Masons are publishing content daily and are also running webinars
We’re very aware that one of the biggest worries at the minute for fintech firms will be access to cash and access to customers. This is why we’re still working on creating collaboration opportunities and we’ll keep making the right introductions as and when relevant.

In the next few weeks we’ll be organising virtual drop-in sessions for the Scottish fintech firms.

It is very uplifting to see at first hand the response of  Scottish Fintech Community in response to the epidemic such as adapting solutions to offer support , lowering cost to enable faster adoption as well as help with automation of critical processes. For example great to see initiatives by MODULR, DIRECT ID, FLOAT, AMIQUS, GIFTROUND and many more.
In this challenging and tough climate along with a very uncertain time, we’re here if you need us so get in touch if you think we can help.
Stay safe
FinTech Scotland team.

How Fintech Will Shape The Future Of The Forex Market

Among mainstream investing opportunities that exist outside of the stock markets, forex trading has long been a popular option. Today, this market is the most liquid in the world, and handles a massive amount of trading activity. But it’s also a market that has evolved over the years with some thanks to technology ”” which makes it one to watch as we observe how fintech continues to develop.

The earliest sign of technology helping to expand the forex market, aside from the actual beginning of the internet age, was perhaps the emergence of smartphones and the accompanying apps. Home Business wrote a piece just two years ago covering mobile tech’s effect on the world of investing. Basically, the idea is that the connectivity phones now provide give investors unceasing access to financial markets, which in turn leads to greater liquidity and volatility. This is absolutely the case in the forex market, which traders tap into from all over the world at all hours of the day.

Alongside the involvement of mobile devices, investment markets have also seen the rise of a growing number of accessible tools and analysis that can simplify the trading process (and in some cases even make it easier to generate gains). For instance, the same article from Home Business pointed out that mobile algorithms and applications are now available, and can often provide automated glimpses of the best trading strategies. And regarding forex specifically, FXCM shows how readily available profit calculators can now provide near-instantaneous clarification of the profit and loss potential of any given trade. This enables investors to make mathematically strategic decisions far more efficiently than in the past.

These are all examples of tech’s increasingly large role in investments, and in the forex market in particular. And while they don’t necessarily fit into what we now think of as fintech, they helped to pave the way for some of the fintech-related changes we’re beginning to see in how the modern forex market actually functions.

For an existing example, we can turn to our overview of Fexco, which is currently one of the world’s most established fintech companies. Fexco includes foreign exchange sectors among the areas it provides services to, and specifically helps to facilitate cheaper and more reliable transactions. It does so, as we noted in the overview, via the PayDirect portal, which is certified for information security. In simple terms, this is an example of tech-based secure transfer enhancing the appeal of forex transactions.

In the near future, we may see more examples like this, including some that take advantage of newer and more innovative pay transfer technologies. Specifically, it’s become increasingly likely that banks and private companies facilitating forex trades are going to take advantage of the blockchain. Business Insider spoke about this last year, making a note that HSBC had already “settled $250 billion in FX trades” using the blockchain in 2018. That’s an almost shockingly large number that would seem to indicate that this method of transfer is well on its way to widespread use. And the blockchain, some would argue, is the very definition of modern fintech.

As we look forward, there’s no reason to suspect anything but a deepening relationship between fintech and the forex market. Traders will continue to use the devices, tools, applications, and algorithms made available to them to make smarter and more informed decisions. And the investments themselves will continue to be carried out via the most secure and efficient technological methods.


Photo by Lorenzo from Pexels

Getting the Banking Balance Right

When we hear about the work that FinTech Scotland facilitates, it excites us at Verimatrix. It wasn’t long ago that our Scottish operation was a start-up called Metaforic, trying to find its way into the ”“ then emerging ”“ world of Fintech. The community that FinTech Scotland is building would have been valuable to us then ”“ just as it is highly valuable now.

Of course, the Fintech community in Scotland isn’t just start-ups. We have a proud and established financial industry – the Global Financial Centres Index (GFCI) ranks Edinburgh 7th in Europe and the top 30 globally.

It’s this mix, coupled with building the right community, that gives Scotland the right balance to build a strong and sustainable Fintech industry. Start-ups can learn from the experience and industry-reach of more established players. The established players ”“ now increasingly competing with the tech giants ”“ can benefit from the agility and fresh ideas developed on their doorsteps.

For Fintechs, another area to get the banking balance right is security. There’s no getting away from the need to secure your products and solutions.

 

When Fintech emerged as a sector in its own right, it had the luxury of playing on the edge of the financial space.  That meant, in most cases, Fintechs were out of the scope of financial regulation. Over time, this has changed for two reasons:

  • Fintechs are increasingly seen as partners of established players;
  • Regulation has caught up with the evolving finance market.

 

So, what does working in partnership with banks and other established players mean for your security needs?

First, it means raised expectation levels. Services that are sold or resold by banks come with an implied trust associated with them. That trust has been hard won over centuries and is easily lost. As a partner of a bank, you gain some of that trust, but you are also expected to maintain it.

 

Second, it means being able to demonstrate that you’ve meet your new partners’ security “check boxes”. Through any procurement or partnership discussion with a bank or large financial institute, there will be security hoops to jump through. Being ready for these hoops not only makes the process easier, it also demonstrates to your new partner that you are a credible organisation.

 

What has changed with regulations and legislation?

The biggest changes are the new open banking regulations ”“ requiring banks to open up their platforms to third parties. We see this in Europe through PSD2, and similar changes are happening around the globe. These changes can be seen as legitimising Fintech.

Of course, with legitimacy comes responsibility and Fintechs increasingly come under the scope of financial services’ regulation. Though this can be seen as adding short-term burdens to Fintechs, these regulations also offer mid and long-term opportunities. The regulations aren’t in place just for fun, they exist to protect consumers. For Fintechs to become long-term sustainable and credible companies, this is something they need to be doing anyway.

The open banking regulations have emerged in parallel to tougher consumer privacy legislation. In Europe, GDPR is certainly the buzzword; and just as with open banking, we see similar trends around the world.

Open banking regulations aren’t something to be feared, and neither is consumer privacy legislation. These changes in regulation are all about doing the right thing. We’d argue that rather than be a burden, the legislation actually gives Fintechs a framework to guide their security thinking.

 

Read more on Verimatrix’s thoughts on GDRP and PSD2

 

Where should you focus?

Balance is key. The security required by Fintechs shouldn’t become an overloading burden. It’s about taking sensible steps while allowing your organisation to focus on the fun stuff”” building exciting products.

Our first recommendation is to build a “security as usual” culture from day one. It’s hard to make the change later, so make it everyone’s responsibility from the start to consider security as you build your products and services. This makes it a low level, non-disruptive activity rather than something forced upon the organisation down the road.

The second recommendation is to choose the right security. Take the time to understand what your valuable assets are and then choose Friendly Security solutions to protect them. Friendly Security means security that is trustworthy, mature and proven; but is also low impact to implement.

This is where Verimatrix can help. Our Software Shielding products are designed to protect the code, data and services in any mobile app you develop, all the while being easy and straightforward for your development teams to apply. We take this to extremes with our recently launched ProtectMyApp service.

These are exciting times for the Scottish Fintech industry; and it is critical that the community Fintech Scotland is building up establishes the right balance for long-term success.

The Importance of Innovative Fintech in Smart Cities

Photo by Kostiantyn Stupak from Pexels


According to statistics from the UN, 55% of the world’s population lives within an urban environment. This is expected to spike to 68% by 2050 and most of these metropolitan residents will be under the age of 29. 

It’s no secret that today’s population, youth or otherwise, live fast-paced, digital lives with a sense of urgency about their day-to-day, which is only expected to heighten in time. 

The only way to tackle modern-day challenges such as ageing infrastructures and to keep up with the expected trajectory of our hurried digital lives is to develop these urban territories into Smart Cities.  

What is a Smart City?

Smart Cities were once a hot topic in the media, but despite the need for them becoming more prevalent, the media buzz and conversation has died down. 

A Smart City utilises the latest innovations in IT and technology to enhance the efficiency and performance of modern metropolises, and improve the ease and quality of life for the inhabitants of the city. 

The focus is on combatting the obstacles or downfalls that exist in modern society and urban environments as we know them. This includes using technological advances to better transportation, energy, utilities, waste management, resource consumption, public services, overall costs and much more. 

The cost of implementing and enabling Smart Cities is expected to almost double within a four-year window. The International Data Corporation estimated Smart City costs in 2018 at US$81 billion, and this is set to drastically rise to US$158 billion by 2022. 

What is the Vital Role of Fintech in Smart Cities?

Some of the best Fintech innovations were purposely designed to simplify procedures that have become unnecessarily complex over time – such as banking – or services that no longer satisfy consumer demands or needs; online shopping and international money transfers, for example. 

Fintech start-ups always have the same end goal in mind. That is to provide consumers with a product or service that allows them to achieve the same outcome, but in less time, with fewer steps, for cheaper and with more transparency than previous solutions.

Whilst there are many benefits of Fintech in a Smart City, two standouts are quicker and simpler payments make for happier residents, and better international transfers and banking broadens the city’s access to a global market.

How Some Cities are Using Fintech 

London

The most glaringly obvious entry route into Fintech for the city of London is with their transport systems.

Transport for London (TFL) had a full digital shift across all transport systems in July 2014, and the organisation has been a cashless operation ever since. Since the switch to contactless payments only, TFL has become more efficient with far fewer delays, cheaper journeys and made the process of boarding much faster for passengers. 

Singapore

Fintech is central to Singapore’s ambitions to become a Smart Nation with a “Smart Financial Centre” at its heart. Part of the country’s continued efforts to achieve a Smart Financial Centre includes using innovative technology to create new opportunities, increase efficiency and better manage the country’s financial risks. Singapore also strives to eventually become a cashless nation.

Estonia

Estonia is possibly the most forward-thinking in their approach to becoming a Smart City thus far. They have abandoned traditional methods of identification and they now offer government-supported digital identities. The E-Estonia movement has been linked to many of the country’s financial institutions and companies to provide easy and convenient banking services to residents. 

While we still might be some years away from our first fully Smart City, many are definitely making waves and on the right path to becoming truly smart. 

A common thread between each advanced city that is leading the way for others is their use of Fintech. Incorporating innovative Fintech is a must in order to become a Smart City, it enables easy international business, makes daily life more convenient for residents and encourages the efficient, economical and eco-friendly operation of a nation. 

About The Organisation

ESA Space Solutions offers investment in space research and satellite-based technologies for worldwide benefit. Fundraising opportunities and guidance tips are available to commercialise your space-connected business ideas with a two-year incubation programme. For more information on how to apply, head over to the application page.

Cybercrime ”“ protecting the weakest links

Blog written by Anthony Rafferty, Managing Director at Origo


“The FBI say that cyber criminals are deliberately targeting financial services firms. They reckon that has increased by over 100% in the last year. Given that these criminals are operating all over the world, if you think they are only going to target the US, then you need to think again.” 

This was the opening statement from Ian McKenna, Managing Director of the Financial Technology & Research Centre (FT&RC) for a session on cybercrime at the centre’s recent Empowering Advice Through Technology 2020 event in London. 

The size of people’s pension pots and investment portfolios make pension providers, savings and investment companies and platforms, and financial advice firms ”“ amongst others ”“ prime targets for criminals’ tactics, such as Identity Substitution Theft.

Ian pointed out that over 60% of the FCA’s business plan for 2020 was focussed on cybercrime. Likewise, the Information Commissioners Office (ICO) is focussing on firms where “significant risk” exists, “which is going to be within financial services firms.”

Ian was introducing a panel session including myself and Paul Holland, CEO and founder of Beyond Encryption, to talk about the dangers of cybercrime for the financial services sector, in particular, that section of the sector relating to provision of financial advice and planning.

Cybercrime has been raised as one of the top concerns for financial advice businesses in 2020. Keeping client data safe within a firm is not the problem. It is the passing of information, invariably personal and confidential in nature, between client, adviser, platforms and providers, i.e. where the information moves outside of a company’s security systems, which invariably is the weak point that cyber criminals exploit.

Emails are a case in point. Quite often sensitive information is emailed within the body of an email or in an attachment. Yet sending an email is like sending a postcard through the post ”“ it can be easily read and altered. We hear too many stories about emails being intercepted and data stolen and then used to commit cybercrime. Personal data accessed in this way can be used to scam payments and commit identity fraud, sending of false invoices, requests for passwords and carrying out malware attacks being just a few examples.

Paul Holland flagged the example where conveyancing solicitors’ emails asking clients for final payment on property sales have been intercepted and the bank account details changed. The client’s money is sent but never received because it has been syphoned off by the criminals. 

The risks to businesses can be huge. Not only could they be subject to public censure, fines and costs but it can be highly damaging to consumer trust in the business. 

We recognise that financial services companies are becoming more aware of their regulatory and compliance obligations, particularly under GDPR, MIFID II and the recently introduced Senior Managers and Certification Regime (SM&CR) legislation, which make the individual accountable for decisions in the firm. In this regulatory environment, deploying email security into any organisation is vital to reduce business and senior management risk as well as to build and maintain trust with clients.

The same applies for B2B companies. Would you prefer to do business with a company where its emails are secured or one with non-secured emails? Which would give you more confidence that they are handling your data and that of your clients’ in a secure and responsible manner?

With firms able to be fined heavily for data breaches, and as cybercriminals become ever more sophisticated in their methods, we believe protecting client data will be an even greater focus for financial services companies in 2020, with businesses of all sizes looking to greater protect their email communications.

Origo has worked with Beyond Encryption to launch a new secure email messaging system, Unipass Mailock, for financial advisers, investment and savings platforms, providers and consumers. It enables users to securely communicate sensitive personal, financial, medical or policy information to their clients efficiently and securely ”“ using military-grade encryption and unique identity authentication capabilities ”“ safe in the knowledge that only the intended recipient can read and reply to the message.

We are making the solution available to over 45,000 financial advisers already using the Unipass Identity service, as well as millions of consumers. By de-risking the industry’s communications our aim is to help protect consumer data as well as business reputations.I’m also delighted to say that Unipass Mailock picked up the Best in Class’ award at the FT&RC technology conference.

The Socio-economic Impact of the Adoption of AI in Financial Services

Photo by Markus Spiske temporausch.com from Pexels


Artificial Intelligence (AI) and Robotic Process Automation (RPA) present new approaches to doing business, with potential to trigger innovation and the growth and productivity improvements needed to gain a competitive edge in today’s modern, disruptive, digital economy.

A key change from previous industrial revolutions is that AI goes beyond automation of simple, mechanical, rote tasks to transformation of underlying business models, processes and the legacy technology stacks business increasingly relies on. Further, the scope of AI is increasing, with growing capability to carry out non-deterministic, knowledge-based tasks, as technology rapidly advances.

A number of viewpoints exist on merit for business, the economy and wider society, influenced by differences in understanding and application of the technology, and historical evidence of socio-economic impact of previous industrial revolutions.

Successfully harnessing AI and RPA requires fundamental transformation to legacy systems, models and processes, supported by long-term investment in rare, highly-skilled technology capability and strategic change leaders. Success requires also change to mindsets. This allows implementing organisations to adapt to new, agile ways of working across big data, to gain insight into customers, the market and the wider environment. Evidence shows that market leaders obtain real gains from improved process and risk management, and conversion of insight into effective design and delivery of high-quality, value-added services. An added benefit is organisational reputations that foster trust, aiding customer retention.

At the same time AI and RPA are set to disrupt the workforce with skill-biased technical change. Individuals possessing skills that both complement and support AI technology stand to gain. The agility that accompanies transformation to AI in the workplace augments task completion and supports flexible working practices. Further, because such roles require skills that are both difficult to acquire and require constant updating, such talent is highly sought and highly paid.
At the other end of the spectrum, significant advances in the technology increase potential to substitute digital capital for human labour. To remain relevant individuals must reskill, or risk redundancy or a move to lower-skill, low wage employment.
The resulting skill and income polarisation and potential for significant, long-term unemployment in a growth economy risks further disruption.

The study, for a dissertation for an Executive MBA at Edinburgh University’s Business School, examined the wider socio-economic impact of adoption of AI/RPA, using the financial services sector as a case study, to determine:

  • the scenario for changes in roles and skills within the workforce, and
  • item potential wider socio-economic impact of adoption.

A mixed methods approach was used, employing, primarily, in-depth interviews with subject matter experts across financial services, technology provision and consulting and advisory roles. The study sought to identify challenges faced in transitioning to the new ways of doing business AI/RPA adoption requires, and to explore different perspectives on formulating strategy to manage the transformation process. Considering both opportunities and threats that the technology poses within the workplace and the wider environment in which the sector exists, the study examined also what other institutions and actions are necessary to prevent socio-economic disruption.

The findings highlight tradeoff between business profit and societal gain.
A number of recommendations were made for formulating strategy for adoption of AI/RPA that lessens the threat of disruption, working instead toward benefit of all stakeholders — business, employees and the wider socio-economic environment.

Key Findings & Recommendations

AI/RPA present opportunities for business transformation that:

  • leads to more effective, efficient operations
  • fosters innovation that benefits customers, employees and other stakeholders.

AI/RPA pose threat of disruption

  • at significant levels to employees whose skills are rendered redundant
  • with repercussions beyond the business, that cascade to the wider socio-economic environment.

Current adoption of AI/RPA is typically hindered by:

  • sandboxed experimentation that does not harness the full potential of the technology, in what is often seen to be vanity projects
  • bolt-ons on incompatible and/or poorly designed technology stacks
  • strategy that alienates employees by focusing predominantly on cost-cutting as a means to generate gains for the business and investors.

Successful adoption of AI/RPA however requires:

  • alignment of strategic technology transformation with overall organisational strategy
  • fundamental transformation of legacy systems, models and processes, along with mindsets
  • effective investment and application to real business cases, to enable real return on investment
  • long-term investment in human capital, technology and other relevant resources.

It is acknowledged that AI/RPA adoption will transform the workplace and workforce. While gains are clear, there is a risk these are eclipsed by negative consequences within and beyond the business. Responsibility for managing individual impact was seen to lie predominantly with the individual, supported by employers, government, civil society and education.


Strategies for managing the technology transformation start from the premise that business does not exist within a vacuum, nor is it sustainable outside wider society. Further, AI technologies rely on large data stores built using customer and other environmental data. Policy arguments are therefore being made at levels such as the EU to mandate fairer share of gains between business and wider society, through schemes such as digital taxation and the monetisation of data.


Collaboration or at least co-opetition between industry, government, education and R&D is seen to provide a strong base from which to advance AI (and other related) technology to the point where it enables productivity gains that relieve humans to seek new ways of working with technology or other employment, without sacrificing income.

Extending this further is a viewpoint that suggests decoupling leadership from a focus purely on economic gain. This requires moving to visionary thought leadership and strategy that focuses on the long-term and considers alternative, more inclusive metrics for measuring value, and that centres humans within the digital transformation process.