Ankur Kamalia, Managing Director, Head of Venture Portfolio Management
Olga Wenge, Group Compliance Officer
innovation – TECHNOLOGY AND THE MARKET OF THE FUTURE
Data and networks, innovation and security
How will companies still be able to be productive and profitable in 20 years? New technologies and new market participants bring both opportunities and challenges for established providers such as Deutsche Börse Group. We aim to ensure that young and highly innovative providers experience Deutsche Börse as the fast-acting and competent partner we have been for many years. We are committed to building upon our track record as a pioneer in the financial sector and to shaping its future, say Olga Wenge and Ankur Kamalia from Deutsche Börse Group.
Ankur Kamalia: So, this is an interesting topic when we talk about how we are seeing the world transforming itself today. What is your perspective, what are these trends [in key technologies] that are actually shaping and changing the way we do business?
Olga Wenge: Over the last years, we have collected a significant amount of information. If we wanted to read all the information we have accumulated in just one year, it would take us about 300 years. We will – of course – need additional technologies to understand or to be able to collect and process this information. This has an impact on Deutsche Börse Group as well. I think that currently, there are different technologies which could be applied to our business, for example cloud computing where we can work with new collaborative partners. Machine learning is another aspect that could help us to understand the data and to engage in predictive analytics regarding new products and new customers.
Ankur Kamalia: That’s true. It’s not that cloud computing is new, but it seems that the financial services landscape is only now starting to embrace the advantages of this technology.
Olga Wenge: What do you think? How will these new technologies impact our markets?
Ankur Kamalia: There are three key trends. Number one is collaboration – amongst clients, ourselves, regulators, start-ups. Collaboration is critical to the adoption of some of these new technologies. Why is this relevant? Let’s look at fintech as an example: we operate in an environment where safety and security are very important. Fintechs have great solutions and they are building new ones enabled by some of these new technologies. Partnering with people like us gives them a much broader platform, because we have client connectivity, we run reliable and scalable markets, we have regulatory expertise, and they are able to leverage that. And for us, and organisations like us, it is no longer enough, I believe, to just rely on internal innovation.
Olga Wenge: New ideas are coming up …
Ankur Kamalia: … Ideas and technology trends that we have seen in the marketplace, and business solutions. Number two is probably a shift towards more B2B solutions. And I think the third – perhaps most important – point which relates to what you were saying is this: we are really starting to see early signs of adoption of some of these technologies. This is what is needed if we imagine that five or ten years down the line, one of these new technologies will need to become more mainstream within our value chain.
Olga Wenge: Do you think that some of these technologies, for example blockchain, will replace our value chain or will the marketplace stay as it is?
Ankur Kamalia: If you ask the direct question whether I believe blockchain is going to completely replace the way we actually operate as a marketplace: I do not believe that this is likely to be the case. There are certain parts of our ecosystem which can be made materially more efficient with the use of blockchain technology. But it is not going to be dramatically different within the next two or three years. But I think we will continue to see material progress being made in parts of the value chain that we operate. And there will be certain parts which will become a lot more relevant, because of the use of some of these new technologies. But that is probably more of a five-to-ten-year horizon. At the end of the day, whether you talk about cloud computing, distributed ledger or artificial intelligence and machine learning, the question is always the same: what about external threats? Is the ecosystem prepared to deal with them?
Olga Wenge: I think when you enter into collaborations, risks increase: not only regulatory but also security risks. Thus, we have to understand the ecosystem of our collaborative partners to understand the technology and the level of security. Deutsche Börse as a strictly regulated body is subject to a great number of regulations. And we have to guarantee the protection of the data of our customers.
Ankur Kamalia: It is indeed very important for us to continue to work with the regulators, to work with clients and other partners to ensure that we can manage external threats and the like to ensure that we still have a safe, secure and a very reliable marketplace.
Olga Wenge: I think that is the right direction, because the data is stored not only by Deutsche Börse, it is a worldwide data flow. And the data is interconnected with all our collaborative partners and with governmental bodies – in different geographical and jurisdictional locations. Sharing knowledge would bring us advantages in creating securer products.
Ankur Kamalia: I think that’s a fair point – at the end of the day, it is very simply about providing business solutions. So we can leverage state-of-the-art technology to provide the right solutions to our clients.
New technologies: key words and topics
A public ledger, allowing transactions to be recorded and verified on a peer-to-peer basis. The blockchain is the distributed ledger for transactions in bitcoin, a digital currency. Applications for transactions involving other objects are being developed.
Targeted attack on an IT infrastructure from an external source. Many attacks are directed at financial services providers; governments and public administrations are also often the focus of criminal attention.
The attempt to simulate functions of human intelligence using computer operations.
Describes the analysis of patterns and “experience” by computers, resulting in a learning system which is not limited to pre-programmed responses and capable of integrating and processing new data.