building the strongest business model · building the strongest business model for future success...

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Building the Strongest Business ModelCase studies on Bank & Fintech & SAS in new ecosystem

Irene XuPrincipal Industry Consultant, Global Banking Practice


BANKING CHALLENGES

ENVIRONMENTALCHALLENGES

ROLE OFANALYTICS

BANK OFTOMORROW

DIGITAL TRANSFORMATION

TRENDS

OPENBANKING

BECOMETRULY DIGITAL

FINTECHFRIENDS

ARTIFICIALINTELLIGENCE

REDUCE LEGACY/COSTS BY CLOUD

REGULATION

Working for today and building for tomorrow


We believe banking as we know it is “disappearing”.

The financial ecosystem is radically changing, and the survivors will be hyper-intelligent, AI-driven marketplaces built on personalized and trusted customer experiences.

Remaining relevant is critical.

SAS unlocks banking’s vast potential and delivers proven value on your journey to transform.


The Biggest Threat of all

Source: Citi GPS, <<Bank of the Future>> Mar 2018

Traditional banking is being challenged not by small FinTech startups, but by

established Tech Giants because of ……

Large & captive user base

Low online acquisition cost

Big data customer insights

Internet banking license

Inherent issues within incumbent Banks:Own lots of data, but tends to be siloed, not easy to access, due to regulatory constraint, poor tech stacks, internal structure with product-focused


The Future of Banking

Source: Citi GPS, <<Bank of the Future>> Mar 2018

The future of banking is an increasingly converged ecosystem where financial services are provided by banks and by platform companies with roots in e-commerce/social media.

How to Stay Relevant?

They have to become FasterThey have to become SmarterThey have to become More efficient

AI & Automation

Big Tech

Core Banking & Cloud

Digital Assets

ABC of Digital Disruption in Finance


If you want to go fast, go alone.

Bank & Fintech & SAS in CollaborationGuiding principles

If you want to go far, go

together.


Collaboration: a win-win-win situation

Risk Management

Infrastructure

Regulations

Customer Trust

Economies of Scale

Brand Name

Capital

Banks

Agility

Innovation

Cost Reduction

Customer Experience

New Products

Data Handling

FintechFirms

Bank & Fintech & SAS in Collaboration

SAS

Artificial Intelligence


Unlocking the strategic value of partnershipsBank & Fintech & SAS in Collaboration

Source: https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.htmlhttps://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm

SAS & ThreatMetrix

can help financial institutions mature

their fraud prevention ability from transaction-centric to identity-

centric.

https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.html

https://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm


Use Case One: ING Smart Working Capital Assistant (SWAC)Bank & Fintech & SAS in Collaboration

Source: https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.html

• SWAC is a web application provided to ING’s Working Capital Solutions customers (mostly SME customers)

• Predict whether a debtor of a SME customer will be able to pay their debt in next 90 days

• Forecast the cash flow from the receipts in the upcoming period

• Various notifications related to the existing financial health of the client

https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.html


Use Case Two: SAS and ThreatMetrix® on Identity IntelligenceBank & Fintech & SAS in Collaboration

Source: https://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm

SAS and ThreatMetrix team up help creditors better establish the “WHO” behind online credit applications.

• By 2020, Digital business will account for 25% of the world’s economy

• Traditional forms of customer authentication are insufficient

• The unfavorable impact to customer experience due to high false positive and slow in verification

• Account opening as most vulnerable stage of customer journey. 1 in 9 new online account applications fraudulent

https://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm


Building the strongest business model for future successBank & Fintech & SAS in Collaboration

Technology is becoming a USPData is the Gold Mine

Competitive advantage lies in Trusted Analytics

Transforming a world of data into a world of intelligence.


INCREASED REVENUEPer Customer

IN-STEP WITH REGULATORSFit for the Future

COMPETITIVE COST BASE

Improved Performance

Outcomes

CUSTOMER INSIGHT DRIVEN

OPEN APIs 3rd PARTY USE OF DATA COMPLIANCE

The Digitalized Bank

Analytics Drives the Bank of Tomorrow

INFRASTRUCTUREIN CLOUD

AUTOMATEDPROCESSES

ARTIFICIAL INTELLIGENCE

REAL-TIME DECISIONING

Enablers


What does it take to build an analytical organizationAnalytics Drives the Bank of Tomorrow

Source: Gartner Top 10 Data and Analytics trend 2019, https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo

Augmented analytics, continuous intelligence and explainable artificial intelligence (AI) are among the top trends in data and analytics technology identified by Gartner in 2019

Banks globally demand data and analytics talents – some build war chest to acquire technology talents, others invest in technology venture or incubator

Advanced analytics/AI seen as competitive advantages that enable banks to improve customer experience, enhance sales & revenue, reduce losses and business costs, etc

Focus on Digital Transformation must be sponsored by senior leadership in the bank, who demand data-driven approach for decision making as integral part of the business strategy

Data/ Analytics

Technology

Talent Development

Executive Sponsorship

Business Adoption

https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo



Augmented Analytics

Augmented Data Management

Continuous IntelligenceDecision automation

Decision support

NLP/Conversational Analytics

Natural language processing

Visualization

Explainable AI

Data FabricEDW, Data lake

Source: Gartner Top 10 Data and Analytics trend 2019, https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo

Data/ Analytics

Technology

https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo



Business Adoption

•Business domain knowledge (industry specific, business-driven)•Customer engagement, life-time

value• 3P: product, process, profitability•Analytics operationalization•Business effectiveness &

measurement•Analytics innovation through

continuous test & learn

• Your text here

Executive Sponsorship

•Direct access to senior leadership management, seat at the table•Command Data-driven decision

making process•Be integral part of business strategic

formation• Part of governance council with

Approval authority• P&L accountability•Dare to challenge the status quo


Starting your analytics journeyAnalytics Drives the Bank of Tomorrow

Impactful Repeatable Sustainable

✓ Short project within 6-12 months, to build AI/analytics solution led by internal teams, could be possibly leveraging external AI/analytics resource to accelerate

✓ Project should be technically feasible, having trusted analytics advisor do due diligence prior to kickoff will increase your conviction in its feasibility & execution

✓ A clearly defined and measurable objectives that create business value


What to expect a 3-Year Analytics JourneyAnalytics Drives the Bank of Tomorrow

Common Data Platform

Analytics Capabilities

Channel Integration & Automation

Real-time Decision Making

Business Optimization

Year 1

Year 2 & 3

Formation of Business/Customer

Information Strategy

Visual Data Mining & Machine Learning

(including open source)

OMNI-Channel Marketing through

use of APIs

Contextual Marketing, Real-time Scoring,

Fraud Detection

Customer Journey Optimization, Credit

Optimization

sas.com


Irene XuPrincipal Industry Consultant, Global Banking Practice

[email protected]

http://www.sas.com/

building the strongest business model · building the strongest business model for future success...

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