In this interview, we speak to NTT DATA EMEAL’s Digital Banking Manager, María De Miguel Gago, about ways the company’s IoT Lending solution is supporting collaboration and helping build a more sustainable future.
What do you see as the role banks will play in building a more sustainable future?
We stand at a crossroads. Climate change and resource depletion are existential threats to the planet, and the Banking and Financial Services (BFS) has to step up and play a role in building a more sustainable future.
Institutions across the industry have a unique opportunity to drive meaningful change by introducing innovative and sustainable products.
I am seeing this change firsthand, witnessing the pivotal role that banks and technology vendors play in fostering sustainable consumer behaviours.
At NTT DATA, we recently collaborated with a multinational Spanish bank, positioning the all-new IoT Lending solution as a beacon of sustainable banking solutions.
Describe the journey of this project from inception to Proof of Concept (POC)
Our journey with the bank revolves around three fundamental principles: sustainability, personalisation, and financial versatility.
The partnership between NTT DATA and the bank began with a profound commitment to creating solutions that incentivise sustainable energy consumption behaviours.
We believe that incentivisation is an invaluable tool for building long-term sustainable behaviours.
In the early stages of this project, embarked on a Proof of Concept (POC) with the bank.
The goal was crystal clear: to provide accurate and data-rich insights to banking customers, offering cash incentives for sustainable energy consumption and expert advice on energy resource management.
From the outset, the teams at NTT DATA and the bank were incredibly passionate about this project and the wider impact it could have on our world.
The collaborative spirit was infectious, driving both companies to explore uncharted territories of sustainable banking.
How does the application work and what benefits does it bring to customers?
The IoT Lending solution introduces a new concept called the 'Consumption Score’, analogous to a credit score but focused on energy consumption patterns.
On a scale of 0 to 100, this score derives influence from historical energy usage and real-time data from IoT devices monitoring household and appliance energy use, besides taking external factors into account, such as the type of housing or the outside temperature.
The higher the score, the more favourable the interest rates on home loans, creating a direct financial incentive for sustainable energy habits.
The benefits of this solution extend beyond mere financial incentives. It empowers consumers by providing insightful data on energy consumption, ensuring transparency in customer-bank relationships.
The scoring mechanism not only engages and motivates consumers to improve their sustainability practices but also guides them toward a more sustainable lifestyle, fostering a symbiotic relationship between the bank and its clients.
This system is all about empowering customers to take control of their energy consumption. Thus, transparency is crucial, ensuring customers understand their energy use and its financial implications, and fostering trust in customer-bank relationships.
Engagement and motivation are promoted through a scoring mechanism that encourages customers to improve sustainability practices, instilling a sense of achievement and responsibility.
The system goes beyond mere technological advancement, serving as a guide for a more sustainable lifestyle with practical suggestions for energy-efficient appliance usage and recommendations for upgrading.
By recognising the diversity of customer lifestyles, the solution allows for personalised grouping of appliances with a comprehensive dashboard for accurate energy consumption tracking.
Moreover, the system incorporates versatile business models for financial sustainability, including dynamic home loan spreads linked to consumption scores, personalised loan options for energy-efficient appliance purchases and retail partnerships for offering energy-efficient product options.
How does the solution fit in with NTT DATA’s sustainability strategy in banking and financial services moving forward?
Delving deeper into the partnership, NTT DATA and the bank laid out clear objectives for what a sustainable future looks like.
The initiative aims to enhance the range and efficacy of the bank's green financial products, turning every home into a source of insights for efficient energy consumption.
The user-friendly portal provided by NTT DATA offers clients actionable insights, fostering a shift in mindset towards a more environmentally aware approach.
The forward-thinking strategy encompasses a broader vision — aligning banking practices with the urgent need for better environmental stewardship.
This initiative sets the tone for a progressive approach in the BFS industry, demonstrating that sustainability can be economically viable and even economically preferable in the long run.
It's a testament to the fact that banks, with their influential global positions, can drive positive change for both the environment and the economy.
What are your reflections on the project?
As I reflect on NTT DATA's IoT Lending solution, I see it as a significant stride in sustainable banking.
It's a testament to the power of collaboration between technology and finance, creating a harmonious blend that serves the greater good.
Whilst the road ahead is long, it’s through ambitious collaboration such as this that we can take the steps to secure our planet’s future.
In conclusion, the collaboration between NTT DATA and the bank exemplifies the industry's potential to drive meaningful change.
As banks actively develop tech solutions to encourage sustainable behaviours, the IoT Lending solution serves as a case study in building a more sustainable future in banking.
In this evolving landscape, banks aren't just financial institutions; they are catalysts for positive change, shaping a future where sustainability is not just an option but the foundation from which all decisions are made.
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