Sibos 2019

Highlights
 Sibos 2019 | Key figures

Attendees
UK/Nordics
11,500+ 41%
Americas EMEA
Exhibitors 14% 32% APAC
213
FinTechs/Startups 13%
119
Countries
152

Sibos 2019 Highlights 2

 Sibos 2019 - Demographics and motivation
1% 2% Primary Business Focus
3%
4%
Type of institution 5%
Derivatives
Cyber security/Risk management
31%
Commercial Bank 32% FX/MM
8%
Software/IT Vendor 19% Compliance
Consultancy
Fintech/Start up 9%
Securities
Consultancy 8%
9% Cash Management
Corporate 7%
Trade Services
Payments Market Infrastructure 6%
Technology
Not business related 4%
Payments
14%
Investment Bank 4% 22%

Central Bank 4%

Retail Bank 3%

Securities Market Infrastructure 2% 5%

Custodian 2% Motivation 6% Other
Exchange 1% to attend 37% 24%
Networking
Broker/Dealer 1% Sibos 37%
0% 5% 10% 15% 20% 25% 30% 35% 35% Sales/New business
opportunities
Gaining insights/Sharing
practises

More information on sibos.com 22%

34%

Sibos 2019 Highlights 3

 Sibos 2019 | Exhibition

• 213 exhibitors
• 102 financial institutions
• 111 solution and consultancy providers

• Networking and seating

features in the exhibition zone: + 400 Stand
activities published on Sibos App and Sibos.com,
Pitstops, Sibos Parks, Workspaces, Wellbeing
lounges, Chat & Connect, etc.

• Creating an immersive experience with conference

rooms, Open Theatres, Spotlight stage, Discover
stage, SWIFT conference areas and Innotribe all
part of the exhibition

• Revisit our exhibitor list

Sibos 2019 Highlights 4

 Sibos 2019 | Conference

• Opening plenary with Dame Minouche Shafik, Director of the London

School of Economics and Political Sciences (LSE)
• 5 Big Issue Debates:
• The future of Banking
• Cloud, AI and privacy: Building blocks of a universal collaborative platform?
• Have new business models created a perfect cyber security storm?
• Navigating an era of renewed great power competition – New challenges
for countries, markets and investors
• Banking perspectives – Understanding the next generation of customers
• 9 View from the top with 7 CEOs of major financial institutions:
• António Horta-Osório, CEO of Lloyds Banking Group
• Bill Winters, CEO of Standard Chartered
• David Schwimmer, CEO of London Stock Exchange Group
• Charles Li, CEO of Hong-Kong Exchanges and Clearing Limited
• Christian Sewing, CEO of Deutsche Bank
• Jean-Pierre Mustier, CEO of UniCredit
• As well as other VIP speakers:
• Dame Stella Rimington, former Director General of MI5
• Kelly Holmes, Double Olympic Champion
• Lance Uggla, CEO of IHS Markit Note: As a Sibos delegate, you can replay the majority of
sessions till end of this year
(log in on sibos.com or Sibos App and select the session of your
Sibos 2019 Highlights Watch more videos and photos choice in the conference programme)
5
 Sibos 2019 | Conference
• 36 sessions on the brand new Spotlight stage. Discussing
topical industry issues each day: open banking, customer
experience, cyber security and banking for a better world.

• Closing plenary with:

• Thomas Kurian, CEO of Google Cloud
• Rachel Botsman, Author and Trust Expert
• Highlights videos:
• Innovation
• Risk

• Total of 375 conference sessions covering 18 tracks

• Close to 680 speakers
• Close to 62,000 conference session attendees
• 51 Sibos TV interviews
• Sibos video highlights:
• Monday
• Tuesday Note: As a Sibos delegate, you can replay the
• Wednesday majority of
sessions till end of this year
• Highlight of the week (log in on sibos.com or Sibos App and select the
session of your
• Sibos Issues: 2 editions choice in the conference programme)
(digital pre and post-edition (Nov)) 6
 Sibos 2019 | Conference key take-aways
Read more about the top themes
• The payments and securities business is going through unprecedented change. We
are seeing heightened business interest and increasing market valuations, a drive
for speed, transparency, efficiency and ease of use, and new non bank entrants that
are fundamentally changing the competitive landscape.
• The banking industry is facing tough questions around its role as a custodian of
data. No bank is an island - data exchange is fundamental to new service offerings.
• Staying on top of cyber threats and protecting customers should not be competitive
– banks need to collaborate, cooperate, and share information to stay ahead of
cyber criminals.
• Banks are looking at how to offer better services while reducing risk. They also need
to think about the customer end-to-end customer experience – expectations are
changing fast and banks need to collaborate to innovate and interoperate –
especially in an open banking environment.
• AI will impact jobs - at least half of jobs will be changed in a fundamental way in the
next 10 or 20 years because of AI. It is better to create AI systems that enhance the
human decision making process than trying to replace it. Machines should do the
ordinary to enable people to do the extraordinary.

Read more conference outcomes

Sibos 2019 Highlights in the back-up section of this presentation 7
 Sibos 2019 | Views from the top

“And as we move towards a more uncertain
macro environment, transaction banking will
remain indispensable as the backbone of the
world economy. Which ever way the economy
will turn, corporates and institutions will need
transaction banking, which is the means by which
trillions of dollar settlements will travel.”
Christian Sewing, CEO, Deutsche Bank
“…the more we can partner, the “It doesn't matter who you are and what you do
better it is because it's better to and what level you're at. To be best, you've got
lead the disruption than to resist to believe you are as well. To get the best out of
the disruption.” your day, you've got to believe you know what
Jean-Pierre Mustier, CEO, you do.”
UniCredit Dame Kelly Holmes
Double British Olympic Champion

“The first (driver of change) is the increasing importance of “Kindness is an essential commodity in an
data, then multi-asset class trading across markets and effective corporation, so providing
finally, despite market fragmentation in areas driven by employees with the support they need is
politics, key drivers for market infrastructure continue to the correct course of action”
“Key for a bank is to protect be pushing global business.” António Horta-Osório, CEO, Lloyds
data per the law but also per the David Schwimmer, CEO, London Stock Exchange Group Banking Group
customer’s expectation,
including the things the
customer doesn’t know she or
he should be concerned about.”
Bill Winters, CEO, Standard
Chartered “We’re doing everything in the same time zone and the
whole idea with the LSE is to find a way to manage the “If you want diversity, if you want women and men and
structural migration of London issuers and investors and also ethnic minority people and all sorts of people, well,
for Chinese issuers and investors so that we can use the UK you've got to treat them different. You've got to accept
and US connection that is already place. The vision is to that they can bring different things to the party, and if
connect China with English common law and heritage and you try and squash them all into the same mold, you're
getting this polarised world somehow together using market losing the benefits of it.”
structures” Dame Stella Rimington, former Head, MI5
Charles Li, CEO, HKEX
Sibos 2019 Highlights 8
 Sibos 2019 | Discover zone

• Focus on collaborative innovation:

Uniting all innovation stakeholders in the Discover zone:
119 Fintech, 6 bank innovation labs, Innotribe and the
Discover stage

• 20-25 developers taking on the challenge of the inaugural

Sibos Hackaton in the Developer Park. Winner: OptiPay

• Bringing innovation thought leadership to the exhibition

• Innotribe 4-day programme (more than 6,530 attendees)
• Discover Stage 4-day programme (close to 3,000 attendees)

• Innotribe daily curated networking with speakers & experts

• Innotribe highlight videos:

• Day 1
• Day 2
• Day 3
• Day 4

Sibos 2019 Highlights 9

 Sibos 2019 | SWIFT

• Reinventing payments
• A place to meet, network, connect and find out
more about products, services, hot topics and
community initiatives.

• SWIFT Conference Rooms

• SWIFT Theatre
• SWIFT Knowledge Bar
• SWIFT Demo Pods

• 4 main topics: Payments, Compliance,

Security & Data

• Wrap-up and highlights videos, pictures

available on swift.com

Sibos 2019 Highlights 10

 Sibos 2019 | Networking events

• Sibos smart badge – facilitating close to 170,000

digital contact exchanges
• 17,2 contact exchanges per attendee in average

• Networking opportunities open to all Sibos delegates:

• Chat & Connect conversations
• 5K Run
• Sibos Women of the World networking event
• Daily Innotribe curated Networking
• Sibos Escape Room – Talent Thursday
• Innotribe networking event
• Best of British at the Sibos Closing event

and many other stand activities, cocktails and

events on invitation.

Sibos 2019 Highlights 11

 Sibos 2019 | Giving back to the community

• Charity partner for Sibos 2019 was the Honeypot

Children’s Charity, London

• Sibos community has raised money to fund more than

7,000 hours of respite breaks and educational support
for young carers in the UK.

• Every Sibos attendee who maked a purchase or

donation has had the chance to win one of a selection
of fantastic meet and greet experiences

• Partnering with Speakers for Schools

Sibos 2019 Highlights 12

 Sibos 2019 | Working towards a sustainable Sibos

• Reducing the impact of travelling to Sibos – tree planting project

in collaboration with WeForest: +65,000 trees planted

• A greener Sibos – working with the ExCel London who joined the UN Global
Compact.

• Recycling badges and lanyards

• Reducing plastic with edible water – Ooho Capsules

• Sibos gift: Sibos reusable

Water bottle reducing single-use
plastic

Sibos 2019 Highlights 13

 Sibos 2019 | New Initiative

STAR scholarship programme :

• To support the diversification of the financial industry and encourage
next generation of female leaders
• To foster the development of 30 female bank employees in junior
and middle management positions with high potential
• Dedicated programme : meet with speakers, invite to leaders and
senior mentors lunches, access private networking events and
participate in conference sessions

Sibos 2019 Highlights 14

 Thank you and see you in Boston!

Sibos 2019 Highlights 15

Back-up slides

Sibos 2019 Highlights 16

 Opening plenary

− The world was too slow in accommodating China and it created its own parallel system. Pipes
between two parallel economic systems and spheres of influence will be much less efficient.
− Debt levels are high post the financial crisis. It is vital that the borrowing that is done creates
new productive capacity and investment opportunities in those economies increase over time.
− It is a tough time to be a central banker. In advanced economies quantitative easing grew
balance sheets, increased asset prices and made central-bank policy more visible and politically
contentious. In emerging markets, it is a fiscal problem - governments want to spend more and
lower interest rates.
− (On Brexit) The most widely cited research in the world tends to be research that is a product of
international collaborations. The best-quality research comes from that. It is vital for UK
universities to stay connected to the European research network. Creating a UK alternative is
not enough.
− Artificial intelligence and automation will change most jobs. Jobs will change rather than
disappear.
 BID: The future of banking
− The future of banking and payments requires the customer to be placed at the centre of innovation. Banks’ business
models need to consider more fully the customer value of their product offerings.
− If new market entrants are to join existing payments systems, thus supporting consumer choice, this should not come
at the expense of robust and well-regulated market infrastructures, with unintended consequences thought through.
− The advantage of the digital revolution was that it forced banks to go ‘one step beyond’ and to develop customer-
centric, inter-connected spaces in which institutions operated at the behest of their clients.
− Today's banking customers are also customers of the bigtech companies that dominate the consumer space. The
disruption caused by new players and new technologies is already having a beneficial impact on incumbents and their
customers.
− Significant progress has been made on domestic instant payment schemes around the world, although the pace of
adoption is currently inconsistent, with many countries still lacking real-time infrastructure.
− In the discussion on global payments, it was discussed that new technology and infrastructure takes time to develop,
and that it is human nature to resist change, although it will be hard to resist the increasingly strong technological
undercurrents.
− Banking is no longer just about payments. Today, banks have to consider the safety of their customers’ money while
also thinking about innovation and different ways of operating. They have to put the customer at the centre of things
and to have in mind data, resilience and new threats such as cyber-crime.
 BID: Cloud, AI and privacy – building blocks of a universal and
collaborative platform
− For banks to be entrusted with data, it is not only customers’ information that needs to be handled with care.
Banks must trust other firms, particularly third-party cloud providers, if they want to tap into the near limitless
capacity to leverage and optimise data.
− The issue is not the use of data per se but about ensuring that personal information is used properly. More AI
research would be possible if data is used correctly.
− Technology has evolved, as has the notion of privacy, and that powerful IT engines could help to protect privacy.
− The privacy debate will evolve as more risk becomes apparent, in the same way that speed restrictions had
been introduced after cars had first appeared on the roads, once the dangers of speeding had come to light.
− Security and quality are partners. Automated systems, including machine learning and artificial intelligence
algorithms, offer great opportunity for added value, but errors in data result in errors in decision.
− Selecting the right architecture is in itself crucial for supporting trusted management of data. By automating
decision-making, it is possible to use smart technology that never actually ‘reads’ the data it processes, which
offers protection from exposure to third parties.
− Financial service firms could overcome their inherent rivalries by companies liaising with each other with the
ultimate aim of helping each other with their respective client bases
 BID: Have new business models created a perfect cybersecurity
storm?
− In many respects, the threat landscape has not significantly changed. Criminals use malware to steal as much data as
possible and sell it on the dark market. What has changed, however, is the emergence of a more aggressive strain of
attackers with higher-end capability.
− The rise of the threat of state actors has become a supply chain. - threat actors are essentially working as contractors
as criminal and nation state actors have begun working together. Understanding that supply chain is interesting, as
threat actors might partner with a criminal actor who has knowledge and language skills that they do not.
− Using machine learning in combination with data analytics could help identify non-obvious connections between
cybercriminals, fraudsters and money launderers. Criminal syndicates are converging, which machine learning has
helped to identify.
− Banks have made significant progress in identifying fraudulent activity by cybercriminals and protecting customers
from loss and service disruption. But real-time, cross-border transactions make cybersecurity increasingly difficult.
− Banks should get the basics of cyber hygiene right – basic measures such implementing as multi-factor authentication
are essential steps.
− Banks may be vulnerable to attack as they open up to third parties via APIs. Strict protocols and standards will be
essential to mitigating additional risks.
− Technology solutions such as AI and Machine Learning can help detect phishing and malware attacks. This will enable
cybersecurity professionals to do more detailed analysis on the most serious threats.
 BID: Navigating an era of renewed great power competition – new
challenges for countries, markets and investors
− China’s rapid growth has clearly reshaped geopolitical dynamics in recent years. Its future path is
far from certain, and it is not the only force reshaping the established order. China is the biggest
economic competitor facing the US, and in addition has different values and economic and
political systems.
− Trade tensions are not the only geopolitical factor influencing business planning - greater agility
will be required to reappraise and redirect investments, facilities and supply chains at short
notice, while innovating faster to meet new needs.
− There is scope for innovation to energise low-growth economies with ageing populations - if
banks can fund growth whilst maintaining vigilance against concentrations of risk, growth and
exports would then thrive through continued sharing of innovation and intelligence sharing.
− Differing regulatory approaches to data privacy and digitised commerce have given rise to
concerns over the possible development of parallel, siloed infrastructures, replacing global
networks.
 BID: Banking perspectives – understanding the next generation of
customers
− Technology is only part of the solution in reaching the younger generation - mobile apps are important,
but the industry must also play an educational role.
− Competition from challenger and neobanks is tough but traditional banks can help secure their future by
offering better targeted products, more digital-friendly channels, and value-added services.
− New entrants have an advantage in that they can almost start afresh and make a concerted effort to find
out what the young generation wants. What Gen Z wants is not significantly different from what the
generations before them wanted, which is good health, security, money, and somewhere to live.
− Banks need show evidence of empathy and connection to appeal to this fast-maturing generation.
− Financial educational programmes for students at schools and universities would prepare them for the
realities of life.
− Greater collaboration between generations that are ‘great with tech’ and those that are ‘good at saving’,
and indeed cross-generational interaction can work both ways - the younger generation is not the only
one interested in cutting-edge tools and better customer service.
 Securities – some highlights

− The securities industry is facing financial pressure, the challenges/opportunities presented by

new technologies, and questions for organisations around whether to scale or specialise.
− Geopolitical factors means that firms need to demonstrate increasingly higher levels of
transparency, risk management, and resilience.
− Securities organistations are not immune to cyber threats and the financial losses at stake are
potentially much higher than in the payments industry.
− Increasing volumes of data will require an AI approach to help analyse – AI could be
transformational for the industry
− New technologies such as DLT and AI are being explored and the industry should not be fearful
and embrace the changes.
Compliance – some highlights
− AI and machine learning could play a significant role in regulation and compliance. Collective
intelligence will improve the overall effectiveness of the regime for the benefit of everyone.
− We’re seeing a responsible and pragmatic approach to innovation; new technologies that will
help us synchronise information and help keep it clean and consistent will be a big win.
− Industry collaboration remains key – there is no need for all banks to be repeating the same
processes in siloes. Utilities provide a solution for this, and the sharing of analytics and
typologies will help everyone, but there is still more to be done to increase intelligence sharing.
− Hiring staff from different backgrounds brings diversity of thought that helps to change the
perspective and approach, and experienced compliance staff know what they are looking for –
this combination helps companies establish an effective control framework.
 Cyber Security – some highlights

− Technological complexity increases risk levels, but most breaches are down to human error. Even
small changes such as multi-factor authentication can go a long way to help security.
− Resilience depends on an understanding that a breach will happen at some point – companies
need to approach security with this in mind.
− A new strain of more aggressive attackers is emerging – they are well resourced with bespoke
malware and high-end capabilities.
− Information sharing good practices must be extended to include new technologies to help the
ecosystem protect itself as new technologies are adopted.
− Security is only as good as your weakest link – collaboration is key – an army of one will not win
the cyber war.
Banking and payments – some highlights
− As global payments and securities markets continue to grow, rapid shifts in technology are creating massive change and huge
investments particularly in transaction banking and cross-border payments. That opens up many new ways to provide
banking services, whether that is the bigtech platforms like Alipay, fintech new entrants driven by open banking or global
core players that are expanding beyond retail and into business segments.
− Anybody should be able to pay anybody, instantaneously. There’s an expectation shift that means there’s a move towards
everything being faster, simpler and friction free.
− The current flow of new services, technologies and competitors into payments is being facilitated in many markets by open
banking initiatives. Open banking is happening at different speeds around the world, such as Europe, where open banking is
driven largely by the second Payment Services Directive, and the US, where initiatives are more industry-led. With banks
opening up their systems and infrastructures, fintechs have already developed a variety of new offerings.
− With the 'atomisation' of traditional banking well under way, banks need to embrace connected banking. To do that
successfully, they must prioritise openness, engage with ecosystems, deliver relevant customer insights and look for
partnerships that support the creation of an ecosystem that serves client needs.
− The ISO 20022 message is being expanded and adapted to help banks transmit more sophisticated instructions between
counterparties, customers and market infrastructures, to better support provision of value-added services through greater
interoperability. Having been adopted in a growing number of payment market infrastructure renewal projects in recent
years, it is being rolled out from November 2021 to replace SWIFT’s existing MT messages, to become more widely used in
payments between correspondents. In addition, a key element in supporting its increased use has been the evolution of ISO
20022 to expand to cover securities activity, from pre- to post-trade activities such as reconciliation.
 Closing plenary – some highlights
− Digital technology changes the way that financial institutions can think about creating new products, pricing them, managing risk
associated with them, distributing them and reaching customers to deliver the experience in a fundamentally new way. Financial
institutions now have enormously capable tools at their disposal to change the kinds of products and experiences they deliver, but at
the same time there are new risks emerging all the time.
− As cloud companies have invested in data centres, the software capability to protect data, very advanced cybersecurity capabilities
and other things, financial institutions increasingly look at cloud as a platform they can use to innovate, to deliver experiences in new
ways and to connect their products to consumers in new ways.

− You can allow the consumer, from their device, to be able to access their financial information, whether it is from one or many
financial institutions It simplifies and makes financial transactions much more convenient for them. Every time you make something
more convenient, you make it more useful.
− Generally in software, garbage in means garbage out. Unless you clean up the data before you feed it to the algorithm, the
algorithm is not going to make much sense of the data you are feeding it. If data is the underlying ‘liquid gold’, as you said, then
managing it, cleaning it up, consolidating it and storing it in as few repositories as possible is critical element of being successful.
− Business leaders have to define what outcomes they want to deliver and what customer journeys they are trying to accomplish.
Technologists have to understand that and design the platform to enable that. It is hard to do, because what the customer wants is
constantly changing. You have to be agile in understanding that need and being able to change to adapt it.
− When we say we trust a person or we do not trust a person or we are talking about it in our lives, we should always have the
qualifier, ‘What do I trust them to do?’ Because trust is highly subjective and highly contextual. It is only when we are thinking of
the situation and the context that trust becomes really useful.
− We should not be asking for a transparent society. Secrecy is not the enemy of trust. Secrecy is not what kills or destroys trust. It is
deception. Deception is the real enemy of trust, and transparency does very little to treat the root cause of deception.