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Capgemini, May 2016
Future of BankingEmerging Digital Banking Ecosystem
2Copyright © Capgemini 2016. All Rights Reserved
Emerging Digital Banking Ecosystem | 17-May-2016
Table of contents
The market, challenges and
emergence of the digital Ecosystem
What’ next?
Introduction
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3Copyright © Capgemini 2016. All Rights Reserved
Emerging Digital Banking Ecosystem | 17-May-2016
Table of contents
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The market, challenges and
emergence of the digital Ecosystem
What’ next?
Introduction
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Emerging Digital Banking Ecosystem | 17-May-2016
The trade secret
“The right key opens the door to your key customers”
Power of OneCustomer
Engagement
Smart Analytics
Social Media
Omni channel
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Emerging Digital Banking Ecosystem | 17-May-2016
The gossip – World Retail Banking Report 2016
Banks have made strong improvements in positive experience
Gen Y is still a long way to go
Where positive customer experience with banks has declined
Banking Customers show complete trust in their Primary Bank vs Fintech
Customers who completely or somewhat trust Fintech firms
Banking Executives’ Assessment of Opportunity Areas for Fintech Firms
Banking customers are using Fintech firms
Banking executives perceive Fintech firms to be irrelevant
Banks who do not want to do anything about the Fintechs
54.7%
47.7%
Latin America
54.5%
88.0%
Cards & Payments
2/3
6.9%
4.0%
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Table of contents
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The market, challenges and
emergence of the digital Ecosystem
What’ next?
Introduction
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Emerging Digital Banking Ecosystem | 17-May-2016
The customer is spoilt for choice – Is it now time to up the game?
High StreetBanks
Challenger Banks
Quick time to market
Customer
FinTechs
PFM
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Emerging Digital Banking Ecosystem | 17-May-2016
Some banks are implementing a digital customer centric strategy – Still conventional wisdom or revolutionary?
Note: 1- Sample size n=560 clients from leading financial institutions across 17 market; 2- sample size n=78 senior marketing executives at leading European banks.
Create seamless omni-channel
experience
Leverage mobile services
Transform a branch’s role from transacting to advising
Utilize analytics and modeling
Simplification of back office services through digital transformation
Develop a digital workplace
61% of bankers consider a customer centric business model to be very important.
41% of executives said that they had implemented or will implement within 1 year at least one program similar to retailers.
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Emerging Digital Banking Ecosystem | 17-May-2016
Banks feel the industry is evolving towards a digital ecosystem – But are they ready?
Agreement with Evolution of Digital Banking Ecosystem?
Are your core systems and other technology capable of sustaining such an ecosystem?
Banks’ View of Digital Ecosystem, 2016 Banks’ View of their Core Systems to Sustain the Ecosystem, 2016
Yes No
96%
13%
Yes No
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Emerging Digital Banking Ecosystem | 17-May-2016
The key to change – Data Integration APIs & Analytics
Data Aggregation
Real Time
Data Science
Knowledge
Propensity Modeling
Data Analytics
Integrated Systems
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INFRASTRUCTURE
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Emerging Digital Banking Ecosystem | 17-May-2016
Fintechs are impacting the industry and forcing a choice on Banks - Aggressively innovate or perish?
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Emerging Digital Banking Ecosystem | 17-May-2016
Banks believe that strategic partnership with Fintechs can be a strong driver – Is this the future?
Strategizea plan to develop capabilities in the identified areas
Collaboratewith fintech firms and build APIs to foster innovation
Identifythe focus areas and develop capabilities to attain long-term competitiveness
Transformlegacy systems to be more agile and sustain in the long run
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KCB and M-Pesa Citi and Lending Club Lloyds banks and Apple Pay
Lloyds banks in the U.K. offers Apple Pay on the iPhone
Customers will be prompted to set up the mobile payments service, after which they can make payments with an iPhone
Citi announced a $150 million partnership with online peer-to-peer platform Lending Club
Citi will fund the loans and Lending Club will find the potential borrowers through its online platform
Kenya Commercial Bank (KCB) signed a M-Pesa loans deal to drive mobile banking
Threefold increase in customer transactions to Sh125 billion, with single day transaction volume growing from 10,000 to 100,000
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Emerging Digital Banking Ecosystem | 17-May-2016
Working with the Fintechs to create a joint approach-An agile banking tech ecosystem
Data Sharing
ProfitRegulator
FinTechs
BankBank
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Table of contents
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The market, challenges and
emergence of the digital Ecosystem
What’ next?
Introduction
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Emerging Digital Banking Ecosystem | 17-May-2016
All roads lead to Rome – Customer
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Emerging Digital Banking Ecosystem | 17-May-2016
The solution may be complex but the ask is simple for a “Good” Bank
Customer Retention
Work with the regulator
Simplify
Customer first
Stand for something
Transparent Products
Compliant
High quality Service
Clear & relatable Brand
VALUE Reliant Technology
From Legacy Systems to Agile Ecosystem
New products and quick launch to market
Seamless channel servicing experience
Targeted 1-1 marketing and joint-up social media
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The winning chemistry
SYSTEMS
CUSTOMERS
EMPLOYEES
PARTNERS
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A framework to accelerate and co-innovate within the ecosystem – Applied Innovation Exchange
A diverse, global ecosystem to expose clients to the latest thinking, technologies, and experiences from a range of ecosystem partners.
Gatewayto Global
Innovation
Start-upDirect
3rd PartyR&D Academia
ClientCo-Creation
VentureFunds &
Private Equity
Accelerators& Incubators
Emerging Partner
Categories
AlliancePartners
CapgeminiFunded
CapgeminiCrowdsourcing/Crowdfunding
Develop new products, services, and Proofs of concept
Design new business models
Identify potential partners
Forge strategic relationships
Foster innovation culture
Incubate and invest in Startups
Evaluate and test disruptive technologies
Recognition in innovation communities
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Emerging Digital Banking Ecosystem | 17-May-2016
In the end, these are the 3 takeaways
Regulations
Use of real timeData and analyticsusing APIs
LeveragingFinTechs
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STEP
STEP
STEP
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Emerging Digital Banking Ecosystem | 17-May-2016
Here for the whole day and happy to take any questions
www.capgemini.com
The information contained in this presentation is proprietary.© 2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.
About CapgeminiNow with 180,000 people in over 40 countries, Capgemini is oneof the world's foremost providers of consulting, technology andoutsourcing services. The Group reported 2015 global revenuesof EUR 11.9 billion.Together with its clients, Capgemini creates and deliversbusiness, technology and digital solutions that fit their needs,enabling them to achieve innovation and competitiveness. Adeeply multicultural organization, Capgemini has developed itsown way of working, the Collaborative Business ExperienceTM,and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com
Rightshore® is a trademark belonging to Capgemini