Disruption in Digital BankingBy @joukpleiter and @jelmerdejong

Thursday, December 18th, 1pm EST

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§ Session will be recorded and slides will be shared

via email and Slideshare within 48 hours

Webinar : Disruption in Digital Banking

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Customer Behavior is Changing

Customer Behavior is Changing

Customer Behavior : Convenience

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Disruption : Uber

Customer Behavior is Changing

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Small Start-ups Getting Big…

Customer Behavior is Changing

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Disruption : Lending Club

Customer Behavior is Changing

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Small Start-ups Getting Big

Customer Behavior is Changing

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Customer Behavior is Changing

Source: Thomas J. Loverro

Challenge the Challenger.

Become a Disruptor Yourself.

Accelerate Digital Transformation.

Challenge the Challenger

Digital Transformation Key Focus Points for 2015

1. Start with the Customer Experience

2. Pursue an Omni-Channel Delivery Model

3. Regain Control of your Digital Strategy

4. Define your Inspiring Purpose

Digital Transformation

1) Start with the Customer Experience

1) Start with the Customer Experience

Customer Behavior : Shift to Digital

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Times

Branch

Phone

ATM

Tablet

Mobile

0%

10%

100%

20%

30%

40%

50%

60%

70%

80%

90%

7-10 Times per Month

3-5 Times per Month

5-10 Times per Year

1-2 Times per Year

20-30 Times per Month

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1) Start with the Customer Experience

Customer Behavior Shift : Instant & Seamless

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The Journey Start Here… Any Time – Any Place

TechnologySystems

Processes

Mind Devices Applications Companies

1) Start with the Customer Experience

But Requires Hard Work at Infra Level

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The hard workhappens here

TechnologySystems

Processes

Mind Devices Applications Companies

1) Start with the Customer Experience

Approach : Design for Moments of Truth

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Identifythe mobile moments and context

Designthe mobile engagement

Engineeryour platforms, processes, and

people for mobile

Analyzeresults to monitorperformance and

optimize outcomes

Start smallwith a platform

to extend

1) Start with the Customer Experience

New Business Technology Strategy

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Design starts from inside out.

Customer FocusDesign starts

from outside in.

Organizational FocusUX

Data

Software

Hardware / Infrastructure

Network

UX

Data

Software

Hardware / Infrastructure

Network

2) Pursue an Omni-Channel Delivery Model

Omni-Channel Customer Journey

2) Pursue an Omni-Channel Delivery Model

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2) Pursue an Omni-Channel Delivery Model

Traditional Bank = Legacy Approach

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UX & Marketing

Banking APIs

Banking Infrastructure

Rails

2) Pursue an Omni-Channel Delivery Model

Disruptors = Flexible CX Layer + API’s

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API API API API API

Orchestration

UX & Marketing

Banking APIs

Banking Infrastructure

Rails

API API API API API

Orchestration

API API

Widgets – Pre-Build UX Components

2) Pursue an Omni-Channel Delivery Model

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Omni-Channel Hand-over & Orchestration

Products Analytics

Orchestration / Context / Personalization Services

CRM …

2) Pursue an Omni-Channel Delivery Model

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2) Pursue an Omni-Channel Delivery Model

Critical Interactions at Moments of Truth

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That means building APIs for your core processes.

An airline Example,

3) Regain Control of your Digital Strategy

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✓  Right info, right time, right place✓  Seamless Customer Journey

✓  Personal & Relevant

✓  Configuration without IT ✓  Online Channel Optimization

✓  Cross & Up-sell Campaigns

✓  Integration ✓  Security

✓  Agility / Business – IT Alignment ✓  Innovation on a solid foundation

Customers

IT

Business

Challenge : How to Empower all Stakeholders?

3) Regain Control of your Digital Strategy

3) Regain Control of your Digital Strategy

The soloed digital banking team

27 Learnings from

3) Regain Control of your Digital Strategy

The soloed digital banking team -- reality

28 Learnings from

3) Regain Control of your Digital Strategy

§  Team of 200§  30m euro budget§  Just 14 months§  1.6 million lines of code§  50k test conditions§  200 innovative features§  1700 screens§  4 million customers§  3 countries§  All products & services§  Corporation not a startup

How mBank did became a disrupter

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§  Break all silos

§  Move to dedicated location

§  Freedom & Accountability

§  Non-standard motivation

§  Core value: collaboration

Learnings from

3) Regain Control of your Digital Strategy

Disrupt : Apply Lean Start-up Principles

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4) Define your Inspiring Purpose

4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

UMPQUA Bank

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4) Define your Inspiring Purpose

UMPQUA Bank

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We are Backbase

We are Backbase

Customer Experience Platform

Existing Systems

Superior UX (Your Customers)

Visual Editor (Digital Managers)

Business In control

Customer In control

IT In control API API API API API

We are Backbase

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Customer Experience Solutions. Delivered. We are Backbase

Decision Matrix: Next Generation Digital Banking Platforms Jaroslaw Knapik (December 2013)

“We believe Market Leaders are worthy of a place on most technology selection shortlists. The vendor has established a commanding market position with a product that is widely accepted as best-of-breed."

“Backbase is Market Leader”

Disruption in Digital Banking: Q & A