As a teenager, I was a decathlete. I trained for hours, day after day, to excel in ten different disciplines. It was a time of intense physical and mental exertion, but also a period that shaped me for life. Looking back, I recognize more and more astonishing parallels between the demands of the decathlon and the principles of good management. These are lessons that have proven valuable not only on the track but also in my professional life.

Discipline and Consistency Are Key

In the decathlon, there are no shortcuts. You have to perform in every single discipline. This requires discipline in training and incredible consistency in execution. A clean run in the 110m hurdles, a strong throw, a high jump – everything has to be just right. It's similar in management. Projects require continuous effort, not just right before the deadline. Success comes from consistently completing tasks, adhering to processes, and constantly striving for improvement. A manager who only occasionally puts in effort will fail in the long run, just like a decathlete who only trains their favorite disciplines.

Leverage Strengths, Manage Weaknesses

As a decathlete, I knew where my strengths lay and where I needed to improve. I was good at the 110m hurdles and high jump but had to work hard on discus and pole vault. The trick was to play to my strengths as much as possible to score points, while simultaneously improving my weaknesses enough so they didn't cost me the overall result. It's no different in management. A good manager knows their team's strengths and deploys them strategically. At the same time, they identify weaknesses—whether in skill distribution, processes, or team dynamics—and take action to address or compensate for them. It's about creating a well-balanced overall package.

Endurance for the Marathon, Speed for the Sprint

The decathlon isn't a sprint; it's a marathon of sprints and throws. The competition spans two days and demands both short-term explosiveness and long-term endurance. You have to be able to re-motivate yourself repeatedly and get up after setbacks. It's similar in management. Sometimes quick decisions and agile action are needed to respond to short-term challenges. At the same time, you need endurance and foresight to develop and implement long-term strategies. The mix of both is crucial. A company focused only on quick wins loses its long-term vision, while one that acts only slowly and deliberately can fall behind.

Mental Toughness Is Decisive

The physical demands in the decathlon are immense, but mental toughness is often the real differentiator. When your legs are heavy, your head pounds, and frustration sets in, your will determines whether you continue or give up. A poor attempt in the shot put mustn't ruin the high jump. You have to shake off setbacks, stay focused, and believe in yourself. This mental resilience is also essential in management. Project delays, unexpected problems, criticism – all these are tests for your nerves. A successful manager isn't discouraged by them but analyzes the situation, learns from it, and finds solutions.

My time as a decathlete taught me that success isn't by chance; it's the result of hard work, strategic thinking, and unwavering mental strength. These lessons are universal and have repeatedly proven their worth in my professional career as a manager. The decathlon was more than just a sport – it was a life school for leadership and success.

#leadership #management 

#SundayThoughts 

FrankSchwab.de

Encourage & Challenge

The core of my journey, from starting out at Deutsche Bank to my current roles on supervisory and corporate boards, has always revolved around "encourage & challenge." It's a philosophy that I've found to be the true engine of growth, whether for individuals or entire organizations.

I remember it vividly: my apprenticeship, my studies in business informatics at the University of Mannheim. Professor Dr. -Ing. Effelsberg certainly gave me a "hard time" with my first big paper, but that tough love was the very essence of learning. It taught me that real progress comes from being pushed beyond your comfort zone, not from an easy path. This principle carried into my early management days. I was given tough assignments, but when I delivered—projects, new products—promotions followed swiftly. The challenge fueled my drive, and the trust placed in me was the greatest encouragement.

Even now, looking back and looking forward from the boardroom, my belief remains unshaken: "encourage & challenge" is the most effective way to foster growth. It's about creating an environment where people are supported in their ambitions but also pushed to innovate, to take calculated risks, and to continually strive for more. It's how we evolve, both personally and professionally.

#leadership #career #growth 

#SundayThoughts 

FrankSchwab.de

AI as an Add-on, Not the Core

The financial services industry is in the midst of a profound transformation, driven by technological innovation and evolving customer expectations. At the heart of this evolution lies the core banking system (CBS), the foundational technology managing a bank's critical operations. As artificial intelligence (AI) matures and demonstrates its transformative power, its role within CBS is becoming increasingly central. While established CBS vendors and cloud-native players are integrating AI into their offerings, I believe a new wave of CBS providers will emerge with AI as their foundational strategy, disrupting the market by leveraging AI not only within the CBS itself but also in the crucial and complex process of migration.

The Flaw in "Embedded" Thinking

Existing CBS vendors, such as Temenos, Oracle FSS, and Infosys Finacle, have adopted an "embedded AI" approach. This typically involves augmenting their existing, often monolithic, systems with AI capabilities for specific functions like fraud detection, personalized recommendations, or operational efficiency. However, this strategy carries a significant limitation, akin to the early days of "embedded Internet" or "embedded mobile banking" features in non-native applications. Simply bolting on AI to legacy architectures  leads to inefficiencies, data silos, and a failure to fully leverage AI's potential. The true power of the internet was realized not through embedding it into existing applications, but through the creation of entirely new, internet-native applications and paradigms. Similarly, the revolutionary impact of mobile banking came not from simply shrinking existing web pages onto phone screens, but from designing mobile-native apps that leveraged device capabilities and offered intuitive, on-the-go experiences. Fully realizing the potential of AI in core banking may necessitate a ground-up rethinking of the CBS, moving beyond mere augmentation.

The Rise of AI-Native Vendors

This is precisely where new CBS vendors can carve out substantial market share. These emerging players will build their core banking systems with AI as a fundamental architectural principle, not an afterthought. This means designing the entire CBS from the ground up to be AI-native, enabling real-time data processing, predictive analytics, and autonomous operations across all banking functions. Furthermore, a critical differentiator for these new entrants will be their use of AI for the notoriously challenging and costly CBS migration process. AI-powered migration tools can automate data mapping, identify and resolve inconsistencies, and significantly reduce the time, risk, and expense associated with moving from legacy systems. This dual AI strategy – AI in the core product and AI in the migration – will be a powerful competitive advantage.

The Promise of a Truly Intelligent Core

Banks contemplating a CBS transformation are increasingly aware of the complexities and potential pitfalls. The promise of an AI-native CBS, coupled with an AI-driven migration pathway, offers a compelling value proposition. They may choose to wait for such sophisticated vendors to emerge, or even consider building their own AI-first CBS, recognizing that the long-term benefits of a truly intelligent core could far outweigh the upfront investment. The agility, hyper-personalization, and operational efficiency promised by an AI-native CBS are no longer mere aspirations but increasingly essential for survival and growth in a competitive financial landscape.

The Dawn of AI-First Core Banking

While incumbent CBS vendors are integrating AI into their existing frameworks, the analogies of "embedded Internet" and "embedded mobile banking" suggest that this approach may not unlock AI's full transformative potential. The future of core banking lies with vendors and banks who design and build CBS with AI at their core, extending its application to the often-daunting migration process. This holistic AI strategy will allow them to successfully compete with established players and cloud CBS vendors, attracting banks eager for a truly intelligent, efficient, and future-proof core banking solution.

#Megatrends #42megatrends  #CoreBanking #AI #BankingTransformation #AINative #Fintech #CoreBankingMigration

Throughout history, the flicker and warmth of a fireplace served as humanity's original gathering place. As dusk descended, families and communities gravitated towards its comforting glow, drawn by the promise of shared stories, camaraderie, and a brief respite from the day's toil. It was a space for connection, where oral traditions thrived, wisdom was passed down, and the bonds of kinship were strengthened. The crackle of burning wood and the dancing flames were the backdrop for countless evenings of socializing, planning, and simply being together in a shared, intimate space. The fireplace was not just a source of heat; it was the heart of the home, a symbol of community and collective life.

Fast forward to the digital era, and the communal focal point has undergone a curious transformation. The ambient glow of a fire has been replaced by the urgent, digital luminescence of screens. No longer do we huddle for warmth or a good yarn; instead, the magnetic pull now emanates from the ubiquitous charging hub. In cafes, airports, and even our own homes, the scramble for an available outlet is a familiar scene. When our smartphones, tablets, and laptops declare their dwindling energy, we instinctively gravitate towards these charging hubs, a new kind of gathering around a shared necessity. The "charging hub" has become the contemporary hearth, not for storytelling, but for the silent, individual pursuit of reconnection to the digital world. Our conversations are often punctuated by the frantic search for a charging cable, and the shared experience is less about direct interaction and more about the collective, unspoken anxiety of a dying battery. This shift from the communal warmth of the fireplace to the solitary glow of a charging device marks a profound change in how we connect, or perhaps, how we increasingly disconnect in our digital world.

Yet, even in this digitally tethered existence, a new form of connection emerges. Once fully charged, and if we're lucky, the charging hub can foster a fresh sense of community. Instead of retreating into individual digital cocoons, we sometimes find ourselves sharing screens and experiences, often through shared games. Whether it's a quick round of Finto or another collaborative mobile game, the act of playing together brings people back into a shared space, albeit a virtual one. Laughter, strategizing, and friendly competition once again become the glue that binds us, even if the "fire" around which we gather is now the glow of our devices, powered by the very hubs we just clustered around.

#digitaltransformation 

#SundayThoughts 

FrankSchwab.de