The Principles for Effective Risk Data Aggregation and Risk Reporting (PERDARR), proposed by the Basel committee are due to come into force in 2016, yet many large banks are struggling to even survey their existing data and data architecture. The principles push banks towards unified systems and real-time reporting, but thanks to M&A’s, diverse offerings and an explosion in data volumes, the systems and processes that underpin these goals are complex, out of date and under strain.
Information Builders, a business intelligence and analytics specialist, and Capital Markets Consulting (CMC), experts in regulatory risk and finance change delivery, have partnered to provide banks with an integration, governance and management platform for risk data aggregation and risk reporting.
Steve Wyer, Managing Director at CMC and Peter Walker, Country Manager for Information Builders UK discuss with us the data challenges and opportunities that banks face in aligning themselves with the Basel committee’s principles.
What do the PERDARR principles mean for the banking sector?
Steve Wyer: “On one level it’s a very good thing, post crisis, to take a closer look at all forms of risk reporting and particularly, where risk concentrations or contagion caused problems in the past. To get a consolidated view it’s important to look at the underlying risk data and ensure that it is complete, accurate and consistent. It is also critical that all underlying data can be accessed in a timely manner. This data can then act as the foundation for the risk control mechanisms suitable and necessary to manage large and complex organisation such as a Systemically Important Banks (SIB’s).
PERDARR provides a great chance for banks and regulators to align, create data reporting standards and secure the required focus on data, particularly at a senior level within these organisations.
That said, it will be a huge challenge for banks to reach this position. Historically banks have siloed data for many reasons, whether intentionally for the purposes of arbitrage or as a symptom of limited integration following events such as mergers and acquisitions. General industry consolidation over the past 30 years has also contributed to this practice.
Peter Walker: “Banks are often very keen to build long term strategic data warehousing projects. The issue is that these projects are slow to deliver and even slower to achieve return on investment.
The PERDARR principles are backing up competitive imperatives in that banks have realised they cannot afford to wait for lengthy data architecture projects to be implemented and delivered. To ensure competitiveness modern banks need to have a far greater level of agility in their operational systems. To achieve this they need to access all operational sources – not just databases in modern systems – but legacy data and transactional data. Through this banks can put the right data in the right hands to drive performance and also comply with regulation.”
How quickly do banks need to move to bring themselves in line with the principles?
Steve Wyer: The principles are already in effect so most, if not all, have already begun work with the process of self-assessment. The consultation paper was issued in the middle of last year, so banks that haven’t begun to implement change should start immediately. For those banks that have already initiated change programmes, we would suggest they engage with trusted data specialists who have the knowledge, skill, innovative techniques and tooling to accelerate delivery and guarantee results. In our experience this new breed of data professional is not generally found resident within these institutions.
For large complex organisations, it can take as long as five years to refocus the organisations upon data centricity. It’s not purely a technical thing; it’s very much more a cultural process. Banks can utilise tools to assist in this process, but creating the required level of understanding requires a focus upon all employees and how they regard and work with data.
Systemic risks caused by opaque markets and poor data can lead to major issues and market movements, such as those we saw during the crisis. As such there will be significant penalties if the regulators presume that institutions are not doing all that they can to support systemic change and limit systemic risk.
There have already been significant fines for banks found to be non-compliant in areas of regulation, risk and regulatory data. If you are not compliant there is a real chance of facing similar penalties.
Peter Walker: “Speed is of the essence here for many banks. The nature of the challenge requires technology that allows quick access to the data at source. Without the long lead times involved with rip and replace of data systems. All banks are going to be challenged by the need to move quickly and also the need to be seen to have effective data governance and management in place. Some banks will naturally be in a better place than others but it’s vital that each uses the right tools and strategies to assess their current status, the integrity of their data, the number of sources they are using and what value they can get from new data processes and systems.”
How far away are banks from real-time, integrated data?
Steve Wyer: In the majority of cases, banks are a long way from real-time integrated data. Some are better than others, but the average level of preparedness is certainly low. From a risk reporting perspective banks have operated daily for some time, but other business functions particularly finance are frequently not as well positioned. This is a particular issue when considering the boundaries, overlaps and interconnectivity between risk and finance data and reporting
When delivering integrated data infrastructure another consideration is the sheer volume of data that needs to be managed and processed within core systems. Take for instance the case of trade transparency reporting under Dodd Frank; this now requires banks to report all trades within 15 minutes of execution. This has already placed considerable demands upon stretched resources, both technical and business. This is only set to increase when frequency of reporting is increased to 60 seconds in 2014.
This increased reporting data will also need to subsumed into risk and finance support systems with existing underlying data. It will need to be checked and managed to avoid duplication and inconsistency. This is yet another complexity brought about by increased regulatory change and enhanced reporting requirements. In order to manage all of this change effectively institutions need to consider the environment and requirements in a structured manner.
Peter Walker: Banks are already used to dealing with real time data from a trading perspective. This minute-by-minute approach doesn’t yet translate to the operational systems of the business and its here that banks will be found out.
For most banks it would be more appropriate to stop developing new systems for each and every regulatory report and focus upon re-useable architectural components and more effective re-use of data, to limit further data siloing.
By reusing the same approach banks will be able to address new requirements for data access and delivery, supporting now and future regulatory and commercial requirements.
How can banks go about bringing themselves up to date?
Peter Walker: By and large banks will have to live with what they have in terms of data architecture, if they hope to deliver in time. Rip and replace strategies are not feasible in the existing time frame. The most successful approach is to integrate with existing architecture and infrastructure. Selecting tools that can coexist means that time to value is that much quicker.
For a large banking organisation, a rip and replace project is simply not feasible. With an approach like virtualisation we are typically seeing projects of 6-18 months (dependant on complexity). When compared with certain data warehousing and rip and replace projects, timescales can be two or three times this.
Steve Wyer: Banks are now realising that in order to bring themselves to the required level, they need to be addressing data and its’ quality management and governance at board level. Many are looking to appoint a chief data officer to give the issue the focus that it needs.
But whilst that addresses it at a strategic level, there is tactical work that needs to be done by everyone within the enterprise. Banks need to appoint the right custodians, data managers, data stewards and outline the right processes to ensure edicts made at highest level are then followed through on a daily basis by all employees whether they handling, inputting or managing data.
Peter Walker: “We’re beginning to see chief data officers and data custodian roles emerging. This combines executive board focus with stewards at an operational level. This is vital, particularly if you’re seeking to extend beyond the pure demands of regulatory and compliancy orientated solutions, to the opportunities that present themselves by monetising that data or providing it back to the customer.”
Steve Wyer: In my experience there is a lot of intransigence in the sector, the approach is often ‘we’ve always done it this way’, and overcoming this requires wholesale cultural and technical change. Banks generally have a long way to go to get from their current state to their target, and not a great deal of time to do it.
Data architecture is often an area where there isn’t a huge amount of internal expertise in banks. Given the nature of the change, getting an external perspective that is free of politics and inflexibility – and has the advantage of experience with new techniques – can be vital to success.
However this external view must have deep knowledge and experience within banking and trading and the FS sector in general. Change is about aligning with the business and its’ nuances and you can’t achieve the complex changes that are necessary without that understanding.
What challenges do banks face in unravelling existing data architecture?
Steve Wyer: Frankly, at an enterprise level many banks simply cannot fully complete what is necessary in the time that’s available. It is unrealistic to expect banks to re-engineer entire systems and data architectures in so short a period of time.
What the majority of banks really need to do is embrace the necessary change by utilising the innovative technologies and methods that are now available, such as virtualisation. This approach will allow banks to stage systems and data solutions whilst making the transition from current to target state. It will deliver immediate benefits and also make headway with long standing data challenges. These solutions will however need to be delivered within a considered and methodical strategic framework. In this way the results will accommodate long term architectural goals, whilst ensuring consistent, timely reporting and coherent regulatory compliance.
Peter Walker: “Data virtualisation is the most viable solution for banks. It is one of the only ways that banks can achieve the change needed in the time available. For this approach to be successful it’s vital that the new technology can co-exist with the existing legacy systems.
Through this approach, data can be gathered at source from any operational or transactional system, before being pushed into the virtualised environment. Controlled transformations and enrichment can take place under strict quality management and governance rules, and reporting can then be undertaken according to individual requirements. This creates an agile method of delivery, operating under strict controls, producing timely, consistent, coherent reports with minimal interruption to critical systems.
Steve Wyer: “This way banks can get on top of reporting data issues while leaving data in its current location. This will ensure that bad data is not further copied around the organisation and therefore we are able to limit data decay. Data can be accessed in real time as it is pulled from source systems as required.”
What are the competitive advantages from effective data management and risk reporting?
Steve Wyer: The responsiveness and accuracy of reporting that is achieved through effective data management creates enhanced trust, credibility and reputation with regulators and clients.
Having a timely and complete understanding of consolidated risk position in times of stress is essential. Without accurate, complete and timely data/information this is impossible.
High quality data, managed and governed by a business in the right way can also lead to a competitive edge. Having real time or near real time knowledge of your risk position and managing opportunities accordingly, allows you to take advantage of market opportunities in the most timely and cost effective manner – often ahead of other market participants.
Peter Walker: “Decision making throughout the business can also substantially improve. High data integrity has an immediate knock on effect, putting the right data in the right hands to make effective business decisions. By applying this approach throughout the organisation, new opportunities, particularly related to customer service, retention and overall performance can be identified.
Rising to the Challenge of the Pandemic
For over seven decades, Development Bank of the Philippines (DBP) has been the Philippines premier development financing institution, supporting inclusive growth and development in the country. As a development financial institution, DBP is ready to help address both the immediate and long-term needs of the economy. Global Banking & Finance Review spoke to DBP President and Chief Executive Officer Emmanuel G. Herbosa to find out what the bank is doing now to help the Philippines cope with pandemic and their plans for the future.
- What is the mandate of the Development Bank of the Philippines?
“DBP is wholly-owned by the Republic of the Philippines and is classified as a development bank. Its primary objective is to provide medium and long-term credit facilities for the growth and expansion of the agricultural, industrial, and public utility sectors. Alongside its deposit-taking activities, the Bank fulfills its mandate in part through on-lending Official Development Assistance (ODA) funds provided by international development agencies, and by providing commercial loans to corporations and micro, small, and medium enterprises (MSMEs).
DBP has proven effective in managing public funds and channeling those funds into productive loans to four priority sectors – infrastructure and logistics, MSMEs, social services, and the environment. The Bank is particularly strong in providing term loan facilities to finance projects that help spur economic growth and contribute to national development. The Bank builds strategic partnerships with industry and businesses, financial institutions, local government units, national government agencies, and non-government organizations to fulfill its development mandate to be a catalyst for nation-building.
With more than seven decades of committed advocacy as the country’s premier development financing institution, DBP has further sharpened its development focus to be the Philippines’ Infrastructure Bank. With this enhanced mandate, DBP more aggressively supports infrastructure development towards inclusive growth and a more balanced regional development for the country.”
- What does the “Best Corporate Bank Philippines 2020” award mean to DBP?
“It’s a very welcome affirmation of the standards that we have set for ourselves as development bankers, especially during this time of a global health emergency.
In terms of deposit performance during the first semester of 2020, DBP was the fastest growing bank (in growth rates and in absolute amount of increase) among its peers. This was due to our working hard in the present pandemic environment to service our clients’ deposit and loan requirements. Ninety percent of DBP branches remained open during the imposition of community quarantines to continue our service delivery to the transacting public. We did not just keep our branches open, our account officers remained engaged with their clients in servicing their banking transactions.
Through end-June, total deposits of DBP grew 37% year-on-year to reach US$13-Billion (PHP637-Billion) led by a 52% year-on-year increase in Term Deposits and a 20% growth in CASA. Deposits of our national accounts comprising of government-owned-and-controlled corporations (GOCCs) and large financial institutions (FIs), serviced by our team of Relationship Officers, increased by at least US$1-Billion (PHP50-Billion) from end 2019 to July 2020 and even more creditable is the 98% year-on-year growth in our private deposits that was achieved.
We are proud of the work we have done for these GOCCs and FIs amidst the pandemic as we provided to them the full range of banking services particularly for their deposits and transactions.
Of particular significance is the work we have done for the state pension fund for private employees, the Social Security System, which the Bank has assisted towards making their financial operations more efficient, such as their cash management from the physical deposit pick-up collection from their branches nationwide to their liquidity requirements in assisting the maturity profile and rates of return on their deposits to assisting them in their disbursements that they used to do via issuing of physical checks and deposit to their Members’ accounts. We have transformed this electronically via our PESONet channel; they just send us the instructions and we electronically disburse their Pensions, Loans and other Member Benefits (e.g., maternity and other medical needs) to their Members’ bank accounts or through our Fintech partners (e.g., Paymaya) and other cash disbursement outlets. We have performed these services as well for our other Corporate clients.”
- What role is DBP expected to play to help the Philippines cope with, or bounce back, from the pandemic?
“DBP is poised to play a more catalytic role in the socio-economic recovery efforts for the Philippines. As a development financial institution, DBP is ready to help address both the immediate and long-term needs of the economy. We will continue to act with urgency in terms of investments focused on helping critical sectors of the economy in view of the negative impact of the pandemic on businesses, employment, and livelihood. Needless to say, it is important for DBP to provide additional financing to said sectors, be it working capital and loans to stay afloat during the pandemic.
In sustaining its development lending mandate, DBP will continue to expand and enhance its credit programs to further ease access to funds and promote an environment ripe for development intervention in hard-to-reach segments and areas.
Further stepping up to the challenge, DBP will continue to work closely with other government agencies, and the private sector, to meet the demands resulting from the pandemic. The goal is to find ways to boost the economy for a systemic impact on target sectors. This may involve reviving the capital market, keeping businesses solvent and operational, financing innovations to solve crisis-related problems, and even enabling the distribution of financial aid to the most vulnerable sectors of the economy.”
- What has DBP accomplished to help the Philippines meet the challenges arising from this pandemic?
“DBP continues to support the National Government in the fight against the pandemic in the country, ensuring the availability and accessibility of financial services nationwide particularly for adversely hit industries like construction, manufacturing, health care/ hospitals, education, transport and storage, among others.
To assist these businesses, the Bank granted payment moratorium of up to six months under its Rehabilitation Support Program on Severe Events or DBP RESPONSE. The moratorium is the Bank’s response to the National Government’s call to financial institutions for temporary credit relief to the pandemic businesses as mandated by Republic Act 11469 or the Bayanihan to Heal as One Act or Bayanihan I.
Under the Bank’s DBP RESPONSE Program, loan payment moratorium was extended to 726 borrower-accounts with outstanding principal balance (OPB) of US$2.80-Billion (PHP134.94-Billion) or deferred amount of US$436.51-Million (PHP21.04-Billion) combined principal and interest. Also under the DBP RESPONSE, 19 borrowers were granted loan approval for new projects in the cumulative amount of US$86-Million (PHP4.147-Billion) while six borrowers were granted loan restructuring amounting to US$3.5-Million (PHP169.79-Million). We are also implementing a continued moratorium on the repayment of salary loans involving 52,490 government employees.
The Bank has also continued processing and approving applications for loans. As of September 2020, we have processed loan releases for 1,025 enterprises, excluding 965 rollovers, in the amount of US$3.03-Billion, excluding US$7.24-Billion rollovers. While we have continued the processing of loan releases for supported industries and enterprises, we have continued as well as the processing of remittances and other financial transactions to ensure the continuous flow of goods in the country.
Further during the pandemic, DBP was also involved in the release of cash aid. The Bank assisted in the disbursement of cash assistance under the Philippine Department of Agriculture’s Rice Farmers Financial Assistance program where PHP1.48-Billion (US$21.7-Million) subsidies were distributed by the Bank through its cash pay-out partners, M Lhuillier and PayMaya, to 297,000 farmers. The Bank also facilitated the release of social amelioration funds under the Small Business Wage Subsidy program, where PHP50-Billion (US$1.03-Billion) was distributed by the Social Security System to 3.4 million employees of MSMEs who were left unemployed during the successive community quarantines, through DBP to their bank accounts and again through its cash pay-out partners.
DBP likewise encouraged investments in the National Government’s “Progreso Bonds” or the Retail Treasury Bonds Tranche 24, a five-year government-issued debt security to augment government funds for projects related to pandemic response.”
- Last year, you issued DBP ASEAN Sustainability Bonds. Can you tell us a little more about this issuance?
“As a development financing institution, DBP has always been at the forefront of sustainable development and environmental protection. The DBP Sustainability bonds issuance last year affirmed our commitment to continue supporting initiatives that have an impact not only on communities but also on our environment.
We successfully raised PHP18.125-Billion or roughly US$362.5-Million from that initial tranche of our programmed PHP50-Billion or US$1.0-Billion Bond Programme. The initial tranche was aimed at financing environmental and social projects eligible under our Sustainability Finance Framework. Proceeds from the bonds have been exclusively used to fund projects that contribute to economic inclusion; environmental objectives such as climate change mitigation and adaptation, natural resource conservation, and pollution control and prevention; as well as projects that directly address or mitigate a specific social issues. In particular, 83% of the proceeds were allocated to fifteen projects in sustainable and renewable energy under the Bank’s FUSED Program, while the rest was roughly split between projects for water supply and health care under DBP’s WATER and SHIELD Programs. That bond issuance did not only provide for a sound investment but also provided an opportunity for direct investing in nation building.”
- We understand that DBP will be undertaking its second issuance of DBP Bonds. Why are you issuing these bonds now?
“Even before the onset of the pandemic, the Bank already planned to raise additional funds from our Bond Programme to augment our funding requirements as the Bank pushes to lend more to our priority sectors. Now with the current crisis, there is an even greater call for DBP to increase our funding base to be ready to provide much needed financing to those affected by the pandemic and for recovery efforts especially for those hit by recent natural calamities. We also believe our Bonds can be considered a safe-haven for those looking to invest during these uncertain times.
The net proceeds of the second issuance of DBP Sustainability Bonds will be used and/or allocated by the Bank to finance and/or refinance DBP’s loans to customers or its own operating activities including those in Eligible Green and Social Categories as defined in DBP’s Sustainable Financing Framework: (a) Eligible Green Categories –(i) Renewable energy, (ii) Green buildings, (iii) Clean transportation, (iv) Energy efficiency, (v) Pollution prevention and control, (vi) Sustainable water management, (vii) Eco-efficient and/or circular economy adapted products, production technologies and processes and (viii) Terrestrial and aquatic biodiversity conservation; (ix) Climate change adaptation and (b) Eligible Social Categories –(i) Affordable basic infrastructure, (ii) Access to essential services, (iii) Employment generation, (iv) Affordable housing, and (v) Socioeconomic advancement and empowerment and (vi) Food Security.
Proceeds of the fund-raising activity will further enable us to support and spearhead projects in line with the sustainability development goals and allow us to reach a wider network of stakeholders especially in the countryside. It will also take DBP “one step closer” to its target of becoming a PHP1-Trillion (US$20.8-Billion) bank by 2022.”
- What can we look forward to from DBP in the coming years?
“Looking ahead, DBP‘s post-pandemic interventions will be carried out through programs supportive of recovery and expansion as well as new investments to stimulate economic activity. These programs will continue to channel growth in the four priority thrusts of DBP, which are infrastructure and logistics, environment, social services, and micro, small and medium enterprises.
The policy and regulatory framework for the Philippines’ recovery is in place. A national recovery and rehabilitation strategy has already been signed into law by the National Government to address and provide for the funding needs of distressed economic sectors.
This pandemic has given us at DBP a new perspective on how our development work can still be done, and done well, despite the challenges. We stand always ready with our programs of assistance and initiatives to support the requirements of the different sectors — in consonance with the thrusts of the National Government — from boosting their readiness to pursue growth and competitiveness opportunities to reinforcing their resilience as they embark to restart, rebuild and recover from this pandemic.”
Award-winning CIO shares insight on personal and company success
Nedbank Group, one of South Africa’s largest banks, celebrates five technology-related awards from Global Banking and Finance 2020. With a company vision of becoming the most admired financial services provider in Africa by staff, clients, and shareholders, it’s clear that Nedbank Group is well on their way. In this interview, CIO Fred Swanepoel, who was recognised as CIO of the Year South Africa, shares his journey to becoming an award-winning Information Officer as well as his personal methods, tips, and advice for those interested in IT management.
Briefly share with us your journey to becoming CIO of Nedbank Limited.
My career began at the Small Business Development Corporation, from where I later joined Nedbank in 1996. In 2004, I became the divisional director of Group Technology and Support Services. I subsequently gained experience at the highest levels of Nedbank’s technology cluster, holding divisional director positions of Finance, Risk and Compliance; Projects and Programme Management; and Group Software Services.
In November 2008, I was appointed as Group CIO and a Nedbank Group Exco member.
What’s your top tip for staying ahead in your field?
I have a passion for mentoring and sponsoring high-potential talent, accordingly, if I may, I’d like to list three:
- Never stop learning. I believe education and continuous learning to be the bedrock of success. I am privileged to have had the opportunity to study a B. Com Honours at the University of Stellenbosch, an MBA at the University of the Witwatersrand as well as a SEPSA and AMP from Harvard Business School. But learning extends beyond formal education and training. In the prevailing fast-changing and hyper-competitive environment, leaders have had to commit to ongoing agility and learning as we pivot our strategies in response to systemic developments. In short, to remain ahead of the game, you need to keep on educating yourself.
- There is no substitute for hard work. True passion for technology and innovation is a vital ingredient for a successful tenure in the fast-moving, highly competitive financial services technology ecosystem.
- Developing a strong network to leverage at critical ‘moments of truth’ is important. Like any asset, this network requires nurturing and investment. Having sponsors who genuinely care about your wellbeing and success has, over time, proven to be invaluable to my career trajectory.
What are the most important functions of a CIO?
Performing a conduit role between business and IT is, in my opinion, a critical component of my role to enable coordination and synchronicity of enterprise execution efforts. Brokering of ‘trade-offs’ has increasingly become an important part of my role as we seek to navigate the prevailing volatile and uncertain competitive economy by maximising the benefits from our substantial IT investments across the various components of our business. Advancing our digital aspirations has, over the preceding years, been top of my radar, given the various benefits emanating from digitisation (revenue uplift, cost-saving, client experience uplift etc). Having ‘the correct people in the correct seats on the bus’ is incredibly important and people remain the biggest component of an effective IT value chain. Only by having the right people will any IT initiative be successful. We have experienced this firsthand with our big transformational programme, Managed Evolution, and witnessed the positive impact that having the right people leading our efforts has on execution effectiveness and operational efficiency.
What’s the most important part of your job and what advice would you give to young people interested in a career in IT management?
‘We have become educators.’
There is a digital revolution taking place. I believe that our role is to consistently educate business partners and key stakeholders about how tech can support, enable, and transform traditional operations in support of sustainable business outperformance. I have a critical role to play in brokering collaboration between the IT and business fraternities in support of accelerated execution, the adoption of digital, system rationalisation, the onboarding and leveraging of new technology deployments, etc.
For young people with a keen interest in IT I would advise the following:
- You get out of life what you put into it: passion, pride, commitment, and heart. These cannot be taught but they are without a doubt differentiators. Doggedly pursue what you aspire towards – you are the architect of your own future.
- Be genuine: far too often, I see people living separate personal versus professional lives. It is my considered opinion that being genuine is what will endear you to key stakeholders in this day and age.
- Learn to become ambidextrous: survival in today’s fast-moving, highly competitive, global technology ecosystem, requires one to be able to manage high levels of complexity, various interdependencies, and various moving parts on a daily basis.
- Pick your team well! Having a team composed of determined, self-motivated and multi-skilled players to support you in particularly difficult times, is critical.
Can you surface a recent highlight of your career?
In 2020, Nedbank has been recognised by Global Banking and Finance by winning 5 significant industry-leading technology-related awards, namely:
- Best Banking Technology Implementation South Africa
- Most Innovative Digital Branch Design South Africa
- Most Innovative Retail Banking App (Nedbank Money App) South Africa
- Best Retail Bank South Africa
- CIO of the Year South Africa
I am humbled to have been recognised as the CIO of the year in South Africa for 2020. The performance and commitment of my diverse IT leadership team, the support from our CEO Mike Brown, the Board, my Group Exco colleagues, and our staff are the drivers behind us winning these awards.
What are the biggest trends impacting your field in the decade ahead?
- Client experience focus – delivering leading client experiences, at an innovation cadence that exceeds that of our peer group on a relative basis is, in my opinion, what will separate the winners from the losers going forward.
- Remote working – the enablement of staff to work effectively remotely is critical to support core business operations and the ongoing profitability of the enterprise.
- Cybersecurity remains one of the most important trends, in an increasingly digitised ecosystem, as we have a responsibility to our clients to protect them from sophisticated cyber-related attacks, which continue to persist and grow in volume.
- The pervasiveness of digital / Internet of Things (IoT) – with more and more automation, connected devices will dominate the industry and enable enterprises to cross barriers they have previously not been able to. Nedbank has well-defined plans in place to leverage our vast API network in support of improved client experience and feature functionality offered to our clients.
How would you describe your communication skills and how do you cope with stress?
I’d best describe my communication skills as ‘radically candid and people-centred.’
In the prevailing and tough Global environment, we, as leaders, have had to communicate with care and empathy whilst still being radically candid in the content of our communication. Balancing the sincere care we have for our people and delivering the cold hard facts is something my leadership team and I have not shied-away-from. We have deliberately focused our communication across digital platforms without losing the human touch.
This caring and radical candid communication approach gives rise to a workforce that grows together in and out of these tough times.
Developing skills to manage stress is an important tool in everyone’s armoury.
How do I personally cope with stress?
- I fly. I’m an avid pilot and love the alone time in the air to reflect on past, current, and future challenges.
- I leverage a core group of family and close friends to support me in times of need.
- I prepare. The more stressed I am, the harder I work and, in my experience, the luckier I get.
Who do you most admire in business or who has been your biggest influence, and how have they affected you?
- Elon Musk – It is inspiring to see how he has transformed a vision into a revolutionary reality by combining technology and business.
- Mike Brown – Mike’s attitude, aptitude, and energy are, quite simply, extraordinary. His application and consistency over a 10+ year tenure is impressive. His ability to consistently display high levels of IQ and EQ is rare and is what sets him apart from his peers.
What 3 books would you recommend people read?
- The Platform Revolution by Geoffrey G, Parker and Marshall W, Van Alstyne
- Goliath’s Revenge: How Established Companies Turn the Tables on Digital Disruptors by Scott Snyder and Todd Hewlin
- Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins
What do you look for when you’re building a team?
‘Strategy precedes structure.’
Having the right strategy to build a team around is the first step. Nedbank’s IT strategy is anchored around 3 pillars: Digitise, Delight, and Disrupt. Each pillar has specific strategic technology focus areas. The right team is an outcome of the strategy. At Nedbank, we have come to realise that our secret to success is the use of technology as an enabler whilst harnessing the power of our people. With these two ingredients, Technology + Our People, we create agile teams that deliver delightful client experiences whilst driving our strategic mandate to Digitise, Delight, and Disrupt the financial services industry.
How businesses can respond effectively to the second wave of COVID-19
By William Copley, Founder and MD of leading business telecoms and connectivity solutions provider, Armstrong Bell is focused on helping other business in response to the pandemic. In this interview he provides advice to businesses on how they can response effectively to the second wave of coronavirus.
Tell us about your background. What were you doing prior to establishing Armstrong Bell and how did the business come about?
Prior to working within the telecoms industry and establishing Armstrong Bell, I was actually the frontman of a signed band for about 10 years. In between recording albums or playing shows, I worked varied hours for a company owned by a mate’s dad, pulling cables as a telephone engineer. So when the band wound down, I took on the role full-time.
After a few years, that business actually changed ownership, and they didn’t share the same focus on providing quality end user experience and in working with new technologies that I was both used to and valued as part of my role.
Ultimately, I knew I could improve a number of processes to make the organisation better, whilst cementing long-term relationships with customers. However, I also knew that the new management didn’t value my ideas, so I took the leap and founded my own telecoms systems business with a partner in 2001.
Although the business looks very different now, our values and my inspiration remain the same: To deliver tailored business telecoms solutions with exemplary customer service.
How has Armstrong Bell grown over the last 20 years? What do you attribute your success to?
Over the last 20 years, Armstrong Bell has grown from a start-up into one of West Midlands’ leading telecoms and connectivity solutions providers for businesses and other organisations across the region.
I think our success has been down to a number of things. The first is that we have always focused on solving a problem and delivering exemplary service to our customers as opposed to looking at where the next sale is coming from. Although establishing a strong sales operation is a key focus now as we aim to double our revenue in the next two years, our resolve to listen to our customer’s needs, create new and efficient solutions and help businesses find new and innovative ways of working through telecoms and connectivity solutions has and will continue to be fundamental to our growth.
Having been in business for 20 years, I also believe that persistence and tenacity have attributed to the success of the firm. I have worked through multiple recessions and survived and I’m always looking at new ways to solve any business problem, but without that sense of perseverance and drive to just keep pushing, I don’t think the business would be where it is today.
Besides the coronavirus pandemic, what are the biggest challenges that Armstrong Bell has had to face throughout its history? How did you respond to these challenges and what did you do to overcome them?
I think one of the main challenges I have had to work through is ensuring Armstrong Bell is as robust and resilient as possible. In the early days, we secured three main clients by being as responsive and helpful as possible, which meant all three grew into decent sized accounts. However, during the 2008/09 recession, one of the firms went into administration which made me realise how exposed to risk we were in relying on just three businesses for the majority of our monthly and annual revenue. As a result, I made the decision to spread the risk and work hard on driving new sales, upselling existing clients and establishing a strong client base, which meant if one left, we wouldn’t experience financial difficulty.
In the year that our biggest client went into administration, we ended up growing both in turnover and profit and were able to cement Armstrong Bell as a robust business, with robust foundations.
Do you think these experiences meant you were better equipped to approach the coronavirus pandemic than you would otherwise have been? How has the crisis affected the firm and what have you done in response?
I think when you have been in business for a long time, you learn not to panic regardless of the size of the challenge ahead. COVID-19 or no COVID-19, we all have cycles in business, which means there will be times when things are running smoothly and you are continuing to progress and others when sales are slow due to seasonal dips or growing pains.
However, building a business is a journey and it is in times of challenge and hardship that we learn the most, come up with our best ideas and create new ways of working that we otherwise wouldn’t have thought of before. At Armstrong Bell we’ve heard there’s a recession, but we’ve chosen not to take part – and that’s not because we haven’t been impacted by COVID-19, but because we are continuing to push forwards with our growth plans regardless of the destruction caused by the pandemic.
What support have you been providing to other businesses in response to the pandemic?
We have helped businesses in a number of different ways during the pandemic. When lockdown initially hit, we took the time to proactively contact our most impacted clients, such as those in events and hospitality, to see if they needed us to dial down their service or even turn it off, which the majority agreed to and were grateful for.
In addition, we have helped many businesses move to mass remote working by creating Connected Workspaces, which allow team members to collaborate with anyone, at any time from any place through simple, fast and flexible telecoms and connectivity solutions. For many businesses, it is the development of a Connected Workspace that has enabled them to continue to adapt and respond to the changing COVID-19 landscape, without impacting operations and resulting product and/or service delivery.
What must businesses learn from the first wave of coronavirus in order to survive the second?
COVID-19 hasn’t stopped at any point, but I think how business owners now respond to the ongoing pandemic has completely changed. Initially, I think there was a clear divide between reactions, with many business owners panicking and pausing activity to ‘wait and see’ what would happen and others pushing on full steam ahead so that as markets started to recover, they would come out on top. However, now there is no definitive end to the pandemic, businesses have no choice but to continue to push through the challenges and find new and innovative ways of working that ensure they will survive for the long-term.
What gives you hope for the future? Are there any words of encouragement that you can give to other business owners who might be struggling/fearful for the future?
There will be an end point to COVID-19 in that we have either learnt to live with it and can control it or that we would have found a vaccine that works to protect the most vulnerable members of our society, at the very least.
In the meantime, despite how challenging the last 6 months and the next 6 months may seem, there are so many positives that can be taken from this situation. In business, this includes the opportunity it has provided to evaluate operations and to find new, innovative ways of working and, in life, to remind you of what is most important.
The power of mindset is an incredible thing, meaning if you focus on what you can control, what you change and what you can achieve, you are far more likely to experience a better outcome.
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