Next Generation of Banking: Smarter

NEXT GENERATION
OF BANKING.
HOW TO TRANSFORM
FROM LEGACY TO LEADER
IN THE WORLD OF FINANCE
THE LATEST INSTALLMENT OF OUR:
Near Future Of Series

ABOUT.
At LHBS, we believe in continuously observing and
learning from what’s happening in the market.
We’ve created our Near Future Of (NFO) series which
consists of inspiration and insights reports designed to
highlight what is happening today and how it can
share tomorrow for brands, businesses and entire
industries.
This issue explores the two critical transformations
traditional banks must face. We take key learnings
from successful legacy transformation cases and
turn them into actionable ﬁrst steps to pursue
transformation. Banks can simplify the challenges
of tomorrow by working smarter today.
We hope you enjoy this deck and ﬁnd guidance for
your transformation process.
DISCOVER DEFINE DEVELOP DELIVER
LHBS // NFO: NEXT GENERATION OF BANKING INTRODUCTION.
2

CONTEXT & CHAPTER 01 & 02 RECAP
CHAPTER 03: BANKS NEED TO BE SMARTER
- CORPORATE CULTURE TRANSFORMATION
‣ Why it’s critical for successful transformation
‣ Case studies of successful cultural transformations
‣ Key learnings
- BUSINESS MODEL TRANSFORMATION
‣ Open banking as an opportunity for traditional banks
‣ Case studies of successful business model transformations
‣ Key learnings
- IMPLICATIONS FOR TRADITIONAL BANKS
EXPLORE YOUR OPPORTUNITIES
07
20
42
74
87
CONTENTS.
3
LHBS // NFO: NEXT GENERATION OF BANKING

LHBS is a marketing & innovation firm with
offices in Berlin and Copenhagen. We help
clients to understand today's emerging
customer expectations and to shape their
business offerings for tomorrow.
www.lhbs.com
Kathleen McCaffrey
Analyst at LHBS
lhbs.com | kmc@lhbs.com
Once run by a few large banks, it is now being over-run
by smaller, more nimble and technology-driven
disruptors who are putting the power back into the
hands of consumers.
Banks need a more customer-centric way to do business
and to differentiate themselves in new ways.
This report will explore the most crucial changes
happening in the finance industry, and how legacy
banks need to act today to be around tomorrow:
• Banks need to be bolder by standing for a value or
experience that differentiates them from the crowd.
• Banks need to be faster by identifying changing trends
and expectations, and applying insights to quickly
innovate around new opportunities.
• Banks need to be smarter by seeing new competitors
as opportunities and their internal culture as crucial for
greater transformation. They need to challenge their
most fundamental assumptions as traditional banks.
THE FINANCE INDUSTRY IS EVOLVING.
INTRODUCTION.LHBS // NFO: NEXT GENERATION OF BANKING
INTRODUCTION.
4

CHAPTERS
INTRODUCTION.LHBS // NFO: NEXT GENERATION OF BANKING
5

BANKS NEED TO
BE BOLDER.
BANKS NEED TO
BE FASTER.
BANKS NEED TO
BE SMARTER.
CHAPTER 1 CHAPTER 2 CHAPTER 3
Download chapter I here Download chapter II here
6

In chapter 01, we explored the five key expectations defining today’s generation of consumers.
Here we will dive deeper into one of the fastest growing and most challenging expectation of real-
time services, and how exactly traditional finance brands can react, respond and adapt to this.
BOLDER.
Traditional banks can differentiate for
today’s consumers with superior
customer experience.
CHAPTER 01 RECAP.
!7

FASTER.
Monitor changes to quickly respond and
accelerate & sustain innovation to stay
relevant.
In chapter 02, we discussed the exponential pace of change in today’s markets. We explored
actionable insights into how traditional banks can observe evolving trends and expectations,
respond with innovations their audience need and want and how they can quicken their ways of
working for sustainable and accelerated innovation through seeing competitors in a new light.
CHAPTER 01 RECAP.
!8

Here we will dive into the topic of organizational transformation. What opportunities await traditional banks today
who embrace digital transformation?
We distinguish between corporate culture transformation and business model transformation, and discuss why
both are equally crucial for a successful outcome. We round up our series with actionable implications banks can
take away and apply within their own organizations.
CONTEXT.LHBS // NFO: NEXT GENERATION OF BANKING
SMARTER.
Simplify the challenges of tomorrow by
working smarter today - transform to
keep up with digital.
9

10
Elina Mattila 
Executive Director, Mobey Forum
“For perhaps the first time, the idea that
the future will be better is under serious and
sustained threat.”
LOOKING TO THE FUTURE.

11
Monitor and respond to innovations from
other industries to create new norms and
translate them to financial services. Question
the norm and create products and services
for this generation.
Banks can learn from comparable
industries to create new norms of service.
CONTEXT..LHBS // NFO: NEXT GENERATION OF BANKING
It’s about noticing
the broader trends.

There is also a clear missed  
opportunity to better serve
Millennials:
BANKS NEED TO BE SMARTER.LHBS // NFO: NEXT GENERATION OF BANKING
!12
say they never came  
across a financial product
aimed specifically at them.
59%OF MILLENNIALS

Millennials will be the first generation
in history to earn less than their
parents.
Source: Resolution Foundation
There has been a global decrease in
home ownership and credit card use
among the Millennial generation.
Source: Urban Institute & Transunion
Money is being spent more frivolously as
younger consumers hold up to five times
as much debt as older generations. They
attribute this to feeling uneducated on
financial matters (71%).
Source: Acorn Money Matters report
More frivolous spendingDecrease in ownershipEarning less
Our changing financial world has led to some key differences being identified between the
Millennial and their preceding generation:
KEY DIFFERENCES OF THE FINANCIAL
HABITS OF MILLENNIALS VS PREVIOUS
GENERATIONS.
!13
BANKS NEED TO BE SMARTER.

In response to these changing habits,
banks need to revaluate the value they
deliver to this demographic.
They need to challenge even
their most fundamental assumptions
as traditional banks.
!14

While this sounds like banks need to 
reinvent the wheel, it’s more about how you
package, market and deliver it to the customer.
An example of this is that younger consumers
are most comfortable with the crowd-funding
model. However they are wary of anything
labelled as an “investment.”
!15

Gather data continuously and apply insights gained to seize
this market opportunity.
Learn and apply best practice from other sectors. Support
and sustain this innovation with:
A customer-centric
corporate culture
A ﬂexible business
model
!16

“For example, if a Facebook page is expected to take a maximum of
three seconds to download, the same will be expected of banks,”
therefor “banks need to become ‘learning companies’, i.e. companies
that encourage lifelong learning among their employees.
The subject matter that we’re working with is changing, which is why
staff ought to be following continuous learning through company
programs.”
Nathalie Doré 
- Previous CEO of
L’Atelier North America
!17

Banks should not only be continuously
learning, but actively analyzing and applying
these learnings to better their understanding
of customers, and in turn their service and
products.
This process of learning & applying learning
needs to become second nature, to become
the internal culture.
!18

We will explore these two areas of transformation, drawing from best practice and insights from leaders
within the finance industry:
Both of these areas are of equal importance and
should be transformed in tandem. This ensures that
resources are used effectively and outcomes are
aligned.
THE TRANSFORMATION OF 
CORPORATE CULTURE & BUSINESS MODELS.
!19
A customer-centric
corporate culture
A ﬂexible
business model

CORPORATE
CULTURE
TRANSFORMATION
BUSINESS
MODEL
TRANSFORMATION
20

When it comes to 
facing disruptive change 
within organizations:
!21
80%
NEARLY
of organizations that focused
on culture sustained strong or
breakthrough performance in
their pursuit of organizational
transformation

TONY
SCHWARTZ.
“Most organizations pay far more
attention to strategy and execution than
they do to what their people are feeling
and thinking when they’re asked to
embrace a transformation.
Resistance, especially when it is passive,
invisible, and unconscious, can derail
even the best strategy.”
AUTHOR, CEO
OF THE
ENERGY
PROJECT.
!22

Risk aversion is a key inhibitor of change
within a legacy organization. Modern
organizations should be comfortable with
taking risks as this is necessary for
innovation.
Business leaders must foster an
organization-wide culture that embraces
failure as a prerequisite for success.
!23

Employees have increasingly
acknowledged the need for transformation.
A global study revealed the vast
majority of employees want to work for
organizations that are committed to
digital progress and change.
Source: MIT Sloan Management Review and Deloitte, 2015 !24

c) addresses
concerns associated
with change
b) outlines the
beneﬁts of change
a) ensures a common
understanding of end
goals
This involves a process that:
HOW CAN YOU EFFECTIVELY MANAGE
CHANGE AND TAKE EMPLOYEES ALONG THE
JOURNEY?
!25

Let’s explore two cases of
organizational transformations that
primarily addressed culture, and how
they managed this internal change…
!26

27
This case outlines the top-line learnings from
the SVP of Business Applications himself, Stefan
Okhuijzen and how he observed the internal
change within SES.
SESTransforming SES’s infrastructure to an API model to meet new
network demands and speed up responsiveness to change.
CASE STUDY 01:

28
Stefan Okhuijzen 
SVP of Business Applications
“What I realized quickly is that not everyone in our company
was well-versed when it comes to terminology like APIs and
API-led connectivity. So for me the crux for success was to
ensure that we tie this [change towards an API business
model] to business outcomes.”
CONSIDER YOUR AUDIENCE 
FOR COMMON UNDERSTANDING.

“What people in our business understand is the concept of Agility and
delivering their request on time and always increasing the pace of the
delivery. So, you really have to think about how you pitch ... how you sell
this to your wider business.
I’m a big believer that in today’s world, it’s no longer the bigger companies
that eat the smaller companies, but it’s the fast ones that eat the slow. I used
this whole dimension of being more agile, being able to realize things quicker
and increasingly being able to pick up pace by creating this reusable library of
assets, [and] I think that that was really the selling point.”
!29

“When it comes to how to communicate it’s all about
analyzing who your audience is. What I witness in our
company today is that we suffer from information
overload, and that means that you just have to repeat
your key messages over and over again before people
pick up on it and really get it.
Tie it to business outcomes - that is the best way to
get people on board.”
!30

Identify your audience
& use simple language
THREE KEY LEARNINGS FROM SES’S
TRANSFORMATION.
Tie each aspect of
change to a tangible
business outcome
Deﬁne the meaning of
transformation for your
organization, and select the
key message you will repeat
Always maintaining an open
channel of communication
throughout the organization
Choose the business outcome by what
is most important to each
department / level
Ensure common understanding instead
of throwing around buzzwords everyone
has their own interpretation of
!31

32
As part of their change management strategy,
ING used a rigorous approach to minimize
ambiguity and execute the change effectively.
We will explore the initiatives put in place.
INGING’s transformation to an Agile bank. This involved the merger
of two legacy organizations to encourage a collaborative and
customer-centric culture between them.
CASE STUDY 02:

THREE OF ING’S INITIATIVES TO
ENSURE THE EXECUTIONAL CERTAINTY
OF THE CHANGE:
c) financial and
metric based
projections
b) a behavioural
action plan with
specific changes
a) the definition of
objectives for managing
the merger
!33

A crucial component of this transformation were the clearly set
milestones for change. These milestones included: a) specific
delivery dates, b) clearly outlined any impacts on business units
and teams.
This helped define the pace and ensured the changes were
implemented in a timely manner. Progress against these
milestones were marked based on a “traffic light” system that
categorized the progress made.
Change should be based on specific
milestones that are tracked and accountable
!34

Employees at ING showed a willingness
to change but revealed initial concerns.
An initial poll was conducted to measure
the “ready, willing, and able” -ness of the
employees.
The results were overwhelmingly positive
however employees were concerned with
the impact the changes would have on
larger running IT projects.
These concerns were addressed by senior
leadership through the clear communication
of the reasons for the merger.
This involved the creation of a story that
outlined: a) the reasons for change, b) what
the bank would look like in the future
including the customer value proposition.
This alleviated employee concerns as they
understood the merger was a product of a
well-thought out strategy and that the
changes would be implemented over time.
Identify & 
alleviate concerns.
!35

Managers received training toolkits in the
initial months to help individuals buy-in to
the change. This included the use of
engaging internal marketing campaigns
and customized “change-behaviour” plans.
!36

Demonstrate executional
certainty of the proposed
change
THREE KEY LEARNINGS FROM ING’S
TRANSFORMATION.
Translate new initiatives and
proposed behaviors into
engaging internal campaigns
Involve employees and
address any concerns from
the outset
Leave no room for doubt of ever
needing to get on board with the
change, and emphasize the greater
struggle to be had if change is rejected
Instead of simply communicating
required changes, engage and motivate
people to actively change, with the same
forward-thinking mindset
Keep everyone in the loop, or at least
always have the opportunity for more
involvement from all employees
!37

Technological change alone
without organizational change
cannot drive a bank to improved
productivity, speed and innovation.
“Organizations’ success or failure is
essentially due to the things its employees
do or fail to do.”
- Stephen P. Robbins (1996)
!38

Let’s explore the second 
transformation traditional banks
need to face to ﬁnd out…
But what can technology 
help organizations to achieve?
!39

CORPORATE
CULTURE
TRANSFORMATION
BUSINESS
MODEL
TRANSFORMATION
40

As we move closer to an age of hyper-connectivity
and customer-centricity, traditional banks must
become more open.
They need to listen, engage with and respond to their
customers’ needs and expectations, instead of ﬁnding
new ways to make them want the products and
services they’ve always offered.
!41

DAN
MCKINNEY.
“This requires a modern
banking architecture, one
that is innovative, agile, and
permits banks to evolve their
entire business model – not
just a customer experience.”
FINXACT CO-
FOUNDER.
!4242

By embracing digital, banks could
speed up, automate and increase
ﬂexibility and personalizability of
their processes.
!43

44
HBR 
The Transformative Business Model
“Although new technologies are often major factors, they have
never transformed an industry on their own. What does achieve
such a transformation is a business model that can link a new
technology to an emerging market need.”
TRUE TRANSFORMATION TAKES MORE
THAN TECH.

Open banking is an evolution of banking architecture
that is not only a source of major innovation in the
banking industry, but that’s success has been predicted
with the rise of the platform economy.
It is the ﬁnance industry’s answer to converting from
resource-heavy and producer-driven linear business 
models to demand-driven and multi-sided platform models.
!45

Open Banking is a new way of creating, sharing and
accessing financial data.
It is a shift from the traditional, “centralized” model of
banking to a “network” model.
This network is made up of multiple application
programming interfaces (APIs) that contain customer
financial data, which can be accessed by third parties,
such as fintech firms, at the discretion of users.
This gives customers a more
modular approach to banking
and allows customers to
access multiple accounts from
different financial institutions
through one platform.
DEFINITION: OPEN BANKING
!46

47
Provides the
beneﬁt of choice
- especially for
how they make
payments
Access to
customized and
relevant options
Access to all
accounts in one
place
Enables quicker,
more accurate
and
personalized
credit decisions
BENEFITS OF OPEN BANKING 
FOR CUSTOMERS.
LHBS // NFO: NEXT GENERATION OF BANKING BANKS NEED TO BE SMARTER.
+ + + +

It is still a new
concept with the
lack of a uniﬁed
standard across all
ﬁnancial institutions
Data security
and privacy
concerns
- -
48
DRAWBACKS OF OPEN BANKING 
FOR CUSTOMERS.

Traditional banks can leverage open
banking to provide these benefits
and do it in a way that alleviates the
concerns of customers.
To do this, they need to ensure they:
!49
Transform their value proposition
to provide full banking capabilities
to customers rather than offering
a vast array of disparate and
individual services
Leverage their pre-existing, large
customer base, established financial
security and economic muscle in
partnership with smaller, fast-moving
and innovative fintechs
Future-proof their technologies
through agile and fast approaches
to implementation

50
More innovative
and responsive
to customer
requirements
Increase digital
revenues from
new channels
Extend &
enhance native
service offerings
Better retention
of existing and
the attraction of
new customers
BENEFITS OF OPEN BANKING FOR 
TRADITIONAL BANKS.
+ + + +

While embracing open
banking can bring business
beneﬁts, doing nothing can
negatively impact
traditional banks in much
more powerful ways.
!51
Banks that embrace
Open Banking APIs can
expect to witness a 20%
increase in revenue;
meanwhile, those that
reject the initiative may
lose 30% of their revenue
to “disruptive industry
players” by 2020

of respondents stated that it is
important for them to have a bank
that is innovative; yet only 12% of
respondents in the survey considered
their own banks innovative
69%

Over-saturation of the market
will make it hard for traditional
banks to differentiate themselves.
This will challenge banks to ﬁnd
new ways to innovate and
compete with new entrants
Competition from Fintech
competitors who are also able to
expand and extend the range of
services they offer
- -
53
DRAWBACKS OF OPEN BANKING FOR 
TRADITIONAL BANKS.
Fintechs are likely
to ﬁnd a way to
overtake banks in
their offerings,.
Through
embracing open
banking banks can
capitalize on this
opportunity.

Yolt, the multiple account
management app from ING has
become the ﬁrst to connect
customers through Open Banking.
Yolt allows users to view and manage
all their bank accounts on one simple
interface and has the goal of
empowering customers. They
recently became the ﬁrst third party
provider to complete a successful
connection with a CMA9 bank -
Lloyds Banking Group - under the
new Open Banking system.
YOLT CONNECT UNDER
OPEN BANKING.
EXPLORE SIGN
54
BEST PRACTICE.

Monzo lets its customers
individually connect their bank
accounts to a wide range of apps
and devices, such as Spotify, Twitter
or Amazon Echo using If This Then
That.
IFTTT lets people build their own
connections. They could let Spotify
play a certain song every time they
get paid, or post something on
Twitter every time you make a
purchase in a certain shop.
MONZO AND IFTTT CONNECT
YOUR MONEY TO OTHER APPS.
EXPLORE SIGN
55
BEST PRACTICE.

By opening its “Deutsche Bank
Application Programming
Interface” companies from small
start-ups to big brands have access
to customer data of Deutsche Bank
as long as the customer explicitly
allows this.
An example is the app “Finanzguru”.
Deutsche Bank customers can
connect their account to the app
and receive personalized ﬁnance
and saving tips on the basis of their
existing contracts and subscriptions.
DEUTSCHE BANK OPENS
INTERFACE FOR APP-PROVIDERS.
EXPLORE SIGN
BEST PRACTICE.
56

Let’s explore two cases of business
model transformations that took an
open banking approach with an API
structure, and how they prepared for
and executed this change…
!57

58
DBS transformed their entire business model as part of a greater
organizational transformation. Having a more modular and
accessible infrastructure of products and services offers the bank
more opportunities for collaborations and for replicating features
within other services for a better, smoother customer experience.
DBSDBS launched what they claimed to be the largest banking API
platform in the world. Collaborations that contribute to the platform’s
offerings include ﬁntechs, startups, governments and partners.
CASE STUDY 01:

To achieve their goal of being
“digital to the core,” DBS ﬁrst ﬁxed
the basics, then secured the building
blocks needed to support the
business model transformation.
These included:
!59
Building
resiliency
Revamping data
centers
Begin insourcing &
building engineering
‘bench strength’
Building a security
operations center
Building a
monitoring center
Building up
resources.

DAVID
GLEDHILL.
“DBS embarked on a journey to
transform our tech infrastructure
nine years ago. With that early
start, we are now ahead of many
others in being digital to the core.
This has given us an edge –
enabling us to operate with
fintech-like agility and nimbleness,
and also platform-like inclusiveness.
This will be transformative in ways
not imagined previously, both for
the customer and the bank.”
CIO OF DBS
BANK.
!60

For DBS, building an open banking
platform was just one part of their digital
transformation journey.
They aimed to “make banking ‘invisible’”
with customers only seeing their everyday
life and goals being fulﬁlled with their
solutions.
!61

Focusing on the customer and their
everyday life needs and goals can bring
about innovation possibilities that may
have never before been considered.
McDonald’s make use of PayLah! In DBS’s
platform payment category.
PayLah! is Singapore’s most popular
mobile wallet, and McDonald’s can now
offer this convenient, cashless payment
service for its McDelivery customer base.
McDonald’s payment via
Paylah!
Homage is an on-demand service for
in-home caregiving services for seniors.
It enables their relatives to redeem
credit card reward points for arranging
care assessments by Homage nurses
to determine home care needs.
PropertyGuru helps millions each
month to find homes in Singapore.
Now customers can get instant home
loan affordability assessments as a
result of their partnership with DBS’s
platform.
PropertyGuru’s instant
home loan assessments
Homage on-demand home
care
Just a few examples of DBS’s solutions offered via their platform include:
!62

Fixing the basics and
building supportive backend
systems are crucial first steps
THREE KEY LEARNINGS FROM DBS’S
TRANSFORMATION.
An API platform is not a passing
tech trend, but an ever-growing
pool of innovation potential
Making banking invisible
delivers the most
customer value
Customer insights tell us that before
companies begin exploring value-adding
services and new technologies, they first
need to get the basics right. This is to
have basic functions meeting
expectations and customer satisfaction
to be at a good level. Existing problems
will only be amplified and only increase
pessimism about the transformation to
those skeptical about change.
APIs can be replicated and re-used for any
product or service. A huge modular network of
capabilities can be built over time. Banks could
then answer emerging needs faster.
Also, new entrants to the market are likely to be
lacking the large customer base of traditional
banks. Traditional banks who make their
capabilities and data available can ensure they -
and their customers - capitalize on the next
impactful innovation of disruptors.
When banking actions just work, require
little to no effort and are intuitive, it is
“invisible” to the user. The opposite of this
would be a hassle, an interruption in what
they are trying to get done.
“Invisibility” is not the same as “taking no
notice,” it actually puts the customer first.
On the other hand, highly “visible’ banking
would be a reason to switch banks for
many consumers today.
!63

64
Orange transformed from a ﬁxed line and mobile
network provider to a bank, TV platform and voice &
data provider through embracing technological
innovation. A large part of this transition was a shift
towards an API business model.
ORANGEOrange has transformed itself into a digital service provider and
enabler through technological innovation.
CASE STUDY 02:

Orange observed apps used by competitors and
created prototypes to “try them out” within their
own projects. This was in line with their aim to
become a more software driven enterprise.
Orange created a series of API prototypes through
mimicking approaches taken by internet giants over
a decade ago.
!65

The ‘fail fast’ approach was tough to adopt until the CEO realized
its beneﬁts.
Such an approach would enable Orange to realize the potential
of advanced software methodologies and apps, and this inspired
the CEO to push for APIs to become common practice within
Orange. A shift that also initiated some big changes within the
company culture.
“When the head of the company explains why it is
important to move in a certain direction, that
simpliﬁes everything.”
- Patrice Slupowski, SVP Digital Innovation at Orange
!66

The company became insistent that any
product released should come with it’s
own APIs. This creates opportunities for
Orange to easily form partnerships with
big or small companies.
An API approach required no
implementation costs due to its inherent
simplicity and self-serviceability for
developers.
Their greatest challenge was effectively
manage the use of APIS whilst maintaining
implementation speed and achieving
scalability.
Orange teamed up with apigee, the provider
of API management and predictive analysis
software, to solve this issue. This partnership
resulted in the creation of two sites, “Orange
Partner” and “Orange Developer,” which
enabled developers to ﬁnd, test and use their
APIs in ‘self-service mode’.
Initiating use of APIs
& management.
!67

The Techno Center was established based on agile
principles to carry out larger software development
projects. The products and services were developed in
partnership with third-parties such as startups or larger
groups.
Legacy systems still ran in parallel however they did not
inhibit the adoption of the new APIs.
!68

PATRICE
SLUPOWSKI.
“Any company creating a platform,
capability or an app has to provide an API
if they want to be part of an ecosystem.
If not, they will be on their own - and
either they’re perfect and they will score,
or … APIs will always be the missing part
for them.”
SVP FOR
DIGITAL
INNOVATION,
ORANGE.
!69

Knowledge of what to test
is crucial for a fail fast and
learn fast approach
THREE KEY LEARNINGS FROM
ORANGE’S TRANSFORMATION.
Create a dedicated
“center” for software
development
Accessible APIs
dramatically lower the cost
of strategic collaborations
This increases the speed of building &
learning as analysis can be done even
while still testing.
The test itself has focus, which makes it
simpler as it is only gathering necessary
data and more accurate in delivering
what it has been designed to.
This can be seen as reductionist but
enables faster progress and more time to
test further factors in following phase.
A separate center dedicated to software
development alleviates worry of new
approaches affecting the core business.
It moves the new, more experimental and
modular business model to it’s own
environment.
This reduces the risk of affecting other projects
and being slowed down or disrupted by
running up against the more traditional
business model which may still exist for most.
By offering APIs with a self-service mode
for developers, banks can save on costs
of forming partnerships in the traditional
way and from using up resources to
identify the use cases.
They can observe the adoption rates of
various functions created by developers
and pursue the most popular ones
further, saving resources for the most
promising collaborations.
!70

71
Patrice Slupowski 
Vice president for Digital Innovation, Orange
“API is a complex thing which can be
explained in a very simple way to do
great things.”

When facing an internal culture
transformation, traditional banks
- and any legacy organization -
should consider…
!72

QUESTIONS TO ASK:
Who will be affected by this change?
What are their speciﬁc challenges and
fears?
What language would address their
concerns and that they would best
respond to?
BEFORE COMMUNICATING
!73

STEPS TO TAKE:
Map stakeholders with their speciﬁc
concerns.
Draw up a stakeholder engagement
plan for everyone involved - front
shareholders to frontline employees, and
put together any necessary toolkits.
BEFORE COMMUNICATING
!74

QUESTIONS TO ASK:
What are the real business outcomes that
could be seen as a result of these changes?
How does your organization really feel
about the prospect of an internal change?
Are they against changing or is there an
obstacle of fear of the unknown?
WHAT TO COMMUNICATE?
!75

STEPS TO TAKE:
Communicate change to those in sales and
business development roles by quantifying
wherever possible. Instead of simply presenting
changes, tie changes to business outcomes.
Make it clear these changes will happen, it has
been well thought through and that there is a
burning platform for change.
Emphasize that doing nothing will have
consequences that outweigh the risk of change.
WHAT TO COMMUNICATE?
!76

QUESTIONS TO ASK:
What communication platforms are
easiest for your organization to use
regularly?
What types of incentives do people in your
organization best respond to?
Who in your organization do people follow
or look to for leadership?
HOW TO COMMUNICATE?
!77

STEPS TO TAKE:
Ensure the internal campaign gives all employees the
opportunity to ask questions, ﬁnd out more information
and resolve any issues they have. Offer the chance for
anything to be asked anonymously and through a
convenient platform.
It is a good idea to build an incentive system to reward
those who adopt the change to set an example and
already associate positive outcomes with the
transformation on an individual level.
HOW TO COMMUNICATE?
!78

Becoming a truly digital organization takes more than simply offering
digital products and services.
Core operations also need to be powered by technology. Bringing these
two together requires a tectonic change to happen in not only
employees’ activities but their individual behaviors.
A digital organization has a different set of values and a characteristic
set of behaviors from a traditional way of working.
Instilling this new culture to support the transformation is doable, but
requires a methodology that is clear, and disciplined effort.
!79

When facing a business model
transformation, traditional banks
- and any legacy organization -
should consider…
!80

PREPARATION & KNOWLEDGE OF YOUR
EXISTING RESOURCES AND DATA IS THE
CRUCIAL FIRST STEP
Fix the basics
Fix the basics of your business before branching out to new
technologies and methodologies.
Ensure that you and your team don’t fall into the trap of
believing all systems you’re using now are the only - and most
efﬁcient ways - to get things done.
!81

CRUCIAL FIRST STEP
Know your existing data
Know what data you have right now and what it
tells you about your customers.
Is there more value you cold extract from it that
could enable you to offer more value to customers?
!82

CRUCIAL FIRST STEP
Be strict with keeping & eliminating systems
Which of your existing platforms and processes could be
ﬂexible and adopted into the new changes, and which will
you have to make tough decisions on?
Be strict in what will stay and what will be eliminated to truly
embrace the change and set a precedent to the organization.
!83

CRUCIAL FIRST STEP
Put in place the right resources
Deﬁne and build up the right resources in order
to cope effectively with new technologies and
methodologies.
Be realistic and set the organization up for
success from day 01.
!84

Your transformation journey starts here. Your
Agile Workshop will enable your team to align on a
common vision and explore what’s possible for the
organization with Agile as an opportunity.
AGILE WORKSHOP.
BOOK YOUR FIRST
SCHEDULE TODAY
STEFAN ERSCHWENDNER
Managing Partner
+49 151 6462 0729
se@lhbs.com
READY TO ACT?
!85

A marketing & innovation ﬁrm, we work primarily with
legacy organizations to adapt their customer value
proposition to meet emerging customer expectations.
Together with our clients we discover business
opportunities and deliver integrated customer offers for
products, services, experiences and communication. DISCOVER DEFINE DEVELOP DELIVER
Explore further on our website, and
discover more industry insight reports.
ABOUT.
!86

THANK YOU.
You can explore more industry insights
reports on our website.

Next Generation of Banking: Smarter

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