“uncharted waters” - sri lanka...daimler in the luxury and volkswagen in the volume segment are...

David Brearley

3rd November 2016

“UNCHARTED

WATERS”

Private and ConfidentialAll rights reserved 2016

What do you get if you GOOGLE‘Uncharted Waters’?

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Digitalization: Spring Tide or Tsunami?

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“Banking will end up as a line or two of

code on a network.”

John Reed 1995

“Technology is an unstoppable driving

force in society. Banking is only 10%

through its journey of change.”

KPMG: The Future Face of the Invisible Bank 2016


Contrast Banking Industry failure with Auto Industry Success in Transformation.

“The 12 key global OEM automotive groups currently employ 223 different platforms to make 17 million cars. By 2020, the top 10 platforms will account for 74% of the

segment and enable a 94% volume increase to 33M cars”

Source: Frost and Sullivan Automotive Industry Report 2011

Daimler in the luxury and Volkswagen in the volume segment are expected to reduce 60-65% of their platforms. As a result, their production volume per platform is expected to increase four-fold with a reduced supplier base as a result of sharing components, systems and modules across platforms. The industry preserves strong brands and achieves low cost operating models.

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Being Customer-Centric: Why Most Banks can’t ‘Walk the Talk’ …

Source: Gartner

Simple, Easy-to-UseUseful and

InnovativeLow-Cost

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Mobile

Account

Opening

Being Customer-Centric:... and Why Some Can

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Choose Account Service

Choose Product

Notify Customer

Use Tablet Camera to capture documents & signature

Complete Account Details

Push To Cart

Opening accounts in

a BIBD Branch


Mobile Banking and Merchant

Platform

Banked and Unbanked

‘eTunal’

Mobile Advertising

Platform

Interactive Content and

Push Messages

E-Commerce Plug-in

‘e-Bayar’

On-line merchant payment by BIBD

or eTunai

Digital Branch Sales/ Service and Fulfilment

‘Shopping cart’ experience for New Account

Opening

Digital Branch and Financing

Fulfilment

End-end Islamic Financing (all

products) with ‘same day’ SLA

Refreshed and Enhanced On-Line

Services

New Offering to challenge the international

banks

February 2013 September 2014 October 2014 October 2015December 2013 End-2016

Source: BIBD

DIGITAL BANK investments must form a road-map to the bank’s DIGITAL vision

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Delivers augmented financial services at EVERY ACCESS POINT OF CUSTOMER CHOICE;

Enables CONSISTENT EXPERIENCE on every channel for every product and service;

Implements PAPERLESS and “Friction-less” operating models using open standards;

Creates a “BANK ON THE MOVE” with automated Policy Compliance and Mobile staff;

Encourages NETWORK RECONFIGURATION (multiple tailored branch models);

Enables NEW PROPOSITIONS with collaborations beyond traditional bank boundaries.

Becoming a DIGITAL BANK requires re-imagination of a bank’s operating model

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The early adopters of these automated models are FINTECHs, not traditional banks

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Source: Dilbert

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How best can a Traditional Bank deliver its DIGITAL BANK vision and strategy?


Creating a DIGITAL BANK:Customer Engagement

CUSTOMERECOSYSTEM

e-POSMobile

(Banked)

In-store

Kiosk

Social

MediaeWallet

Agent

BranchContact

Center

Kiosk

Virtual

Assistant

Automated Compliance

Mobile Sales and Service

Paperless

Fully Automated Processes

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End-end Customer Lending: Application, Approval, Documentation, Disbursement

Creating a DIGITAL BANK:Generic, simplified FULFILMENT models

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200 + Process Models


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Creating a DIGITAL BANK:New TECHNOLOGY Model to Stay Relevant

Customer Engagement Business Services

BANK SYSTEMS

OF RECORD

e.g. Core Banking,

Cards, Treasury

ONLINE FOR SME AND CORPORATE

OPEN CUSTOMER APIs (FINTECH Apps, e-Commerce, Virtual

Assistants)

ONLINE FOR CONSUMER (Mobile App, Social

Media, Collaboration)

PHYSICAL SUPPORT (Branch, Kiosk, Mobile Sales, Contact Centre)

CUSTOMER SERVICE EXECUTION PRODUCT CATALOGUE POLICY RULES AUTHORIZATION/APPROVAL PROCESS ORCHESTRATION STP CUSTOMER FULFILLMENT

(Hide Process Complexity)

INTEGRATION MANAGEMENT FOR COLLABORATION WITH

PRODUCT PARTNERS & FINTECHs

ADVANCED (PREDICTIVE) ANALYTICS

“It’s time to bite the bullet and admit that retail banking is not a physical distribution structure with electronic and physical channels on top. Instead it is an electronic distribution structure with electronic and physical channels on top. It’s time to become the Digital Bank - this means wiping the slate clean and starting afresh”. Chis Skinner ‘DIGITAL BANK’


Customer Engagement Business Generator

Foundation

Systems of Record

Core Banking

Cards

Trade Finance

Payments

Treasury

Insurance

Trading

Wealth Products

General Ledger

Advanced Analytics

Embedded Technology Engines/FINTECH solutions

Customer

Product

Policy

Common Business Services

Fulfillment

New Customer/Account

Augmented Deposits

Conventional Lending

Islamic Financing

Funds Transfer

Payments

Portfolio Management

Customer-Facing

Customer Registration

Identify/Authenticate

Branch Management

Digital Marketing

Sales and Service

Product Packaging

Small Data Analytics

SILVERLAKE DIGITAL ECONOMY: DIGITAL BANK Platform

API Management

Creating a DIGITAL BANK:‘It’s all about the DIGITAL Model’

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Omni-Channel

Mar

ket

D

igit

al

P

hys

ical

Smart ATM

Branch Kiosk

Contact Centre

Sales Workbench

Teller Workbench

RM Workbench

Consumer Online

Business Online

eWallet

Social Media

mPay

Merchant ePOS

Virtual Commerce

Virtual Assistant


Source: McKinsey ‘The Paris City Guide to IT Architecture’

The DIGITAL BANK 2016-20 Agenda

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CUSTOMER EXPECTATIONSDirectly interacting with ‘Bank Machine’Consistently Great Experience on ‘Channels of Choice’‘Tech-Savvy’, increasingly able to “Design their Own Bank”

BANK CULTURAL CHANGESimplify and Automate the Bank’s Processes around CustomersEducate Staff and Customers in New Ways of WorkingMove Staff from processing to customer value-add roles

TECHNOLOGY ENABLEMENTA flexible STP ‘machine’ that processes bank & partner businessAbility to handle any customer engagement mediumAn architecture to enable choice and fast business change


Digital Transformation is our Business

DIGITAL

Consultancy

DIGITAL

Process

Models

DIGITAL

BANK

Software

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“uncharted waters” - sri lanka...daimler in the luxury and volkswagen in the volume segment are...

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