future of banking and fintech (insights from my personal journey)

Future of Banking and Fintech1

Future of Banking and Fintech Shailesh Grover, MD Research & Development

(Insights from my personal journey)

twitter: @sgr0ver


What’s changing

Agenda

01

02

03

04

05Why Incumbent banks need innovation

Insights: Use Case #1

Insights: Use Case #2

Open Innovation


“At the current churn rate, 75% of the S&P 500 companies will be removed from the index by 2027”

Yale professor Richard N. Foster, co-author of Creative Destruction


49%Less than half of the customers trust the banks that they are currently with

58%Do not believe that banks have their

customers needs at heart

51%Just over half say their bank makes managing

money simple

22%More than one in five say that

their bank does not understand their day to day

financial needs

Britons still have a very low opinion of banks, seven years after the financial crisis of 2008

Customer dissatisfaction


More and more people across the globe are using digital to fulfil their day to day needs - including banking

Digital shift

82% 74% 33% 69%

Regularly fulfil their banking needs digitally today

PreferenceWould trust a digital only bank

TrustRegularly visit a branch

Physical channelConsider switching to a digital bank

Loyalty


By 2025, 3 out of every 4 workers globally will be a millennial

Millennial workforce

The millennials check their smartphones 43 times a day, on an average

Digital Natives

Communicate via social media, share everything and show little loyalty

Social

By 2018, the millennial generation will have the highest spending power

Spending Power

Comfortable with the security and convenience of mobile payment, but confused by choice

Comfortable with mobile money

The future consumer has a very different set of behaviour attributes that will inform the future of FS

Millennials driving the agenda


Looking for 24x7 access, instant gratification, full transparency and fee free products - all via their channel of choice - MOBILE

Millennials changing behaviour and expectations

Source: The Millennial Disruption Index


“Banks have to be comfortable with being uncomfortable”


Merely changing the floor colours, introducing jeans and putting a few game tables is not good enough to change the culture

Corporate Innovation Theatre

Source: CB Insights


Learning first hand about customer behaviour, needs and wants

A day in the Customer’s life


Focus on the experience the customer will go through rather than just the product delivery

End-to-end Experience


Use Case #1 Learnings


Best Finance app with 4.5 customer ratings

Mobile Banking


Offer digital knowledge, solutions, alternatives and support to colleagues, customers & community groups. #DigitalEagles

Digital Eagles

Source: http://barclays.co.uk/digitaleagles

https://twitter.com/hashtag/DigitalEagles?src=hash

http://barclays.co.uk/digitaleagles


Source: https://digitaldrivinglicence.barclays.co.uk

https://digitaldrivinglicence.barclays.co.uk


Biggest, most active branch

Digital

Digitally Active Users Weekly logins Weekly payments & transfers

10m 31.3m £6.2b £42.6m

Weekly lending value

10% 31% 18% 50%YOY

Source: twitter.com

http://twitter.com


Use Case #2 Learnings


Customers faced a challenge of multiple Identification and Verification methods across products and channels

Strategic ID&V


Making customer Identity & Verification invisible and frictionless

Innovation in Identity

Biometrics - finger vein, finger print, facial, voice, ECG, etc.

Who you areDevices - wearable, smartphone, tablet, laptop, etc.

What you haveone unique piece of data that unlocks what you need.

What you know


Open Innovation


“Large banks will fragment as they seek to protect the profitable parts of their operations, leaving behind a zombie core”, Anthony Jenkins

Fintech creating “value”


Have critical mass in customer volumes

Millions of customersHave access to rich and powerful data that includes transactions and more

Information & InsightsHave deep pockets and assets leverage

No dependencyHave a wealth of experience and talent

Expertise

The banks have a clear upper hand if they leverage what they have and partner to rapidly create and deliver value to existing and new customers

Advantage: Incumbent banks

01 02 03 04


1500 applications received from 77 countries for 3 London cohorts

Rise London

Identity Biometrics Blockchain Machine Learning Prepaid Propositions Digitally Pure Bank Continuous Authentication Data Analytics Wealth Management Gasification Foreign Remittences Human Resources Internet of Things


Multiple partner models evidencing customer stickiness and value: Invest, Partner, Acquire

Strategic partnership to deliver “value” to your customer

Source: CB Insights

The NHS has partnered with Tinder in a campaign to increase the number of young people registered as organ donors.

UBER customers can pick the song they would like to listen to using their Spotify before they start their ride.


Accelerate innovation in partnership with Customers and Business

Barclays LaunchPad

Available to anyone in the UK

Open developmentDirect feedback on new digital capabilities

Customer engagementNew technology lab and ring fenced team within in partnership with the business

StructureDigital assets easily transferable

Simple connectivity


Thank You Shailesh Grover, MD Research & Development

twitter: @sgr0ver

future of banking and fintech (insights from my personal journey)

Economy & Finance