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Discover Financial Services CIO On Innovation And FinTech’s Future

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Jason Strle joined Executive Vice President and Chief Information Officer of Discover Financial Services in July of 2023, bringing a deep industry background, having spent nearly 20 years with Wells Fargo and JPMorgan Chase & Co. He was excited by many of the unique attributes of Discover’s business, including the opportunity to work for what he refers to as “the original fintech company.” He noted, “Discover has been a direct-to-consumer business from the beginning,” a model that predates the mobile-first aspirations of modern-day financial firms. Additionally, Discover’s legacy as a consumer-centric organization gives it an edge in terms of customer insights and engagement.

Moreover, Discover’s payments network—one of only four major networks, alongside Visa, Mastercard, and American Express—provides a critical advantage in both scale and customer interaction. Strle emphasized, “We can see how customers interact with us directly, giving us unique opportunities to deliver personalized services and build strong relationships.” He described Discover’s customer relationships as deeply affectionate. “We describe this as a loving relationship, and it’s not hyperbole,” he said with pride, “It’s based on our touchpoints, the quality of our service, and our focus on rewards that make our products easy to recommend to family and friends.”

Navigating Uncertainty Amid the Capital One Acquisition

The pending acquisition of Discover by Capital One looms large over the conversation, though it has not yet passed regulatory scrutiny. Strle remains optimistic about the potential benefits of the merger. “In financial services and technology, there are very few companies better to join than Capital One,” he said. However, he acknowledges that the period of uncertainty can be challenging for leadership. “Even before regulatory approval, there’s angst and uncertainty in the organization. But we’ve taken that on, keeping people engaged and ensuring we continue delivering the best for Discover’s customers.”

This dynamic environment serves as a test of leadership for Strle and his team. “The key,” he noted, “is to keep growing as leaders, staying focused on serving our customers, and preparing for the future—whether as part of Capital One or [not].”

A Paradigm Shift for AI, Risk Management and Compliance

Strle identifies risk management as a cornerstone of Discover’s strategy, noting that the company operates in a heavily regulated environment where operational, financial, and credit risks must be managed meticulously. However, rather than viewing regulation as a burden, Strle sees it as “ripe for innovation and differentiation.”

He points out that many financial institutions handle regulatory compliance through manual processes, employing thousands of people to ensure adherence to constantly evolving laws. At Discover, the focus is on using technology—specifically AI—to automate and streamline compliance. Strle envisions generative AI as a tool that can help financial firms parse unstructured data, such as complex legal texts, into actionable insights. “AI can help us differentiate ourselves by driving world-class compliance while moving quickly for customers,” he declared.

While AI holds great promise, Strle is mindful of the risks, particularly when it comes to over-reliance on the technology. He draws an analogy to self-driving cars. “The better a generative AI solution becomes, the more the human will depend on it,” Strle highlighted, “But as we depend more, there’s a risk of complacency. We need robust processes to monitor these risks, keeping a human in the loop to mitigate them.”

Strle’s own experience with generative AI tools like ChatGPT underscores the potential pitfalls. He recounted an episode where AI helped him code but led him down an unintended architectural path. “AI answers questions, even bad ones,” he said. “What it doesn’t do well is tell you which questions to ask. That’s where human oversight becomes crucial.”

Building a Future-Ready Organization

To stay competitive, Discover is leveraging a “vertical-horizontal” structure in its IT organization, ensuring close alignment with business lines while maintaining centralized transformation efforts across infrastructure, architecture, risk management, and customer success. “The moments that matter for our customers—how much money they have, whether they paid on time—often span multiple capabilities,” Strle explained. “Our goal is to see the world through the customer’s eyes and operate accordingly.”

This customer-centric view is also informing Discover’s talent strategy. Strle is focused on rotating employees into new roles to bring fresh perspectives, while also cultivating junior talent through robust internship and new-grad programs. “It’s important for us to stay connected with the community,” Strle says, highlighting Discover’s Chatham Tech Hub as a prime example of a talent pipeline that not only serves the company but also impacts the local community.

Emerging Tech and FinTech’s Future

Looking ahead, Strle predicts that financial services will need to become more efficient in managing regulatory hurdles, which could lower barriers to entry and introduce new competitors. Additionally, openness and portability across the industry will present both opportunities and challenges for incumbents. On the technology front, Strle points to generative AI, quantum computing, and enhanced cybersecurity as key trends to watch. He warns, however, that AI’s ability to create convincing deepfakes could lead to new types of fraud, necessitating stronger defenses.

Strle’s career journey, which spans leadership roles at Wells Fargo, JP Morgan Chase, and now Discover, is characterized by a focus on the operational backbone of financial services—core banking systems and payments networks. “I love the responsibility,” he says, “knowing that what we’re doing makes a difference in moments that matter, millions of times per day.”

As Discover navigates its future, both with AI and potential mergers, Strle remains committed to leveraging technology to create better outcomes for both the company and its customers.

Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.

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