future of banking emerging digital banking ecosystem · about capgemini now with 180,000 people in...

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

2

3

1 1 0 0 1 01 0

0 1

0 11 1 0€

$



Table of contents

1

2

3

1 0 0 1 01 0

0 1

0 11 1 0€

$



What’ next?

Introduction



The trade secret

“The right key opens the door to your key customers”

Power of OneCustomer

Engagement

Smart Analytics

Social Media

Omni channel



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%

1234 123456 12345



Table of contents

3

2

1 0 0 1 01 0

0 1

0 11 1 0€

$

1



What’ next?

Introduction



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



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.



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



The key to change – Data Integration APIs & Analytics

Data Aggregation

Real Time

Data Science

Knowledge

Propensity Modeling

Data Analytics

Integrated Systems

+

+

+

+

0 1Confidential. Do not Distribute.

INFRASTRUCTURE



Fintechs are impacting the industry and forcing a choice on Banks - Aggressively innovate or perish?



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

01

03

02

04

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



Working with the Fintechs to create a joint approach-An agile banking tech ecosystem

Data Sharing

ProfitRegulator

FinTechs

BankBank



Table of contents

1

3

2

1 0 0 1 01 0

0 1

0 11 1 0€

$



What’ next?

Introduction



All roads lead to Rome – Customer



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



The winning chemistry

SYSTEMS

CUSTOMERS

EMPLOYEES

PARTNERS



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



In the end, these are the 3 takeaways

Regulations

Use of real timeData and analyticsusing APIs

LeveragingFinTechs

01

02

03

STEP

STEP

STEP



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

http://www.facebook.com/Capgemini

http://www.facebook.com/Capgemini

http://www.linkedin.com/company/capgemini

http://www.linkedin.com/company/capgemini

http://www.twitter.com/capgemini

http://www.twitter.com/capgemini

http://www.youtube.com/capgemini

http://www.youtube.com/capgemini

http://www.slideshare.net/capgemini

http://www.slideshare.net/capgemini

http://www.capgemini.com/about/how-we-work/the-collaborative-business-experiencetm

http://www.capgemini.com/about/how-we-work/rightshorer

http://www.capgemini.com/

future of banking emerging digital banking ecosystem · about capgemini now with 180,000 people in...

Documents