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    Mit cc turn into action - digital strategies banking v march2012- Mit cc turn into action - digital strategies banking v march2012- Presentation Transcript

    • Digital Strategies in BankingCC-MIT views v1.0March 2012 Transform to the power of digital
    • Digital MIT for Private Banks Banking CoE Digital Banking OBJECTIVES OF THIS DOCUMENT Digital Retail Banking Social Media for Banks SHOWCASE OUR CC-MIT FRAMEWORKS TUNES FOR BANKS DRIVE DISCUSSION WITH C-LEVEL EXECUTIVES LEVERAGE OUR KNOWLEDGE THROUGH THE COE DIGITAL BANKING 2
    • Contents Introduction CC-MIT key Findings Relevant Case Studies DT in Financial Services Approach DT Bank Benchmark CC FS capabilities Copyright © 2011 Capgemini Consulting. All rights reserved.
    • DIGITAL TRANSFORMATION IS THE USE OF TECHNOLOGY TORADICALLY IMPROVE PERFORMANCE OF ENTERPRISES
    • Introduction to Digital Transformation  Introduction CC-MIT key Findings DT in Financial Services Relevant case studies Approach CC FS capabilities “We are now in the midst of a third revolution: digital” Digital led to re-envision Two major technology-driven processes, capabilities revolutions have changed the nature and products of business and society in the past two centuries Electrification led to innovation such as assembly line Steam Power led to The one at the top today, will not be industrialization the same at the end We are already seeing the signs of this transition: • Startups are emerging who can envision and implement new products and new working and collaboration behaviors • Digital natives are clamoring for change in their employers and in the companies they buy from • Some companies, even hundred-year-old firms with billions in revenues, are starting to engage in digital transformation Copyright © 2011 Capgemini Consulting. All rights reserved. 5
    • Key trends in Digital Banking in 2012  Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities There are long-term strategies and new banking functionalities with a quick-win adoption path 1. CUSTOMER CENTRICITY 2. MOBILE BANKING 3. SMART DATA 4. CONVERSATION / SOCIAL MEDIA 5. CORE SYSTEM FLEXIBILITY QUICK P2P PFM MultiScreen ID&V WINS Copyright © 2011 Capgemini Consulting. All rights reserved. 6
    • And predictions to 2015  Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach 2013  65% of banks will replace their transaction-oriented online banking view with PFM interfaces  Major national defaults in Europe will lead to collapse of more than 1/3 of European 2014 banks  At least 2 major securities exchanges will offer separate ‘low-latency’ trading venues with short (sub-second) hold on orders  60% of banks will offer mobile-based banking services to business customers 2015  New, external social web and cloud-based services will generate 25% of consumer- driven banking products and servicesSource: Gartner – Predicts 2012: Changing customer needs demand more fluid banking IT systems and processes Copyright © 2011 Capgemini Consulting. All rights reserved. 7
    • Capgemini Consulting and MIT Center for Digital Business have launched a 3-year jointresearch program to further develop the understanding of Digital Transformation Introduction  CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities Results of Phase 1 provides guiderails to traditional companies on their digital journey Capgemini Consulting is conducting a 3-year research program  We have assembled a leading team from MIT to jointly with the MIT Sloan School conduct our digital transformation research program: The goal is to understand how the “digital winners” are Prof Eric BRYNJOLFSSON managing (or have managed) their digital transformation,  Director of MIT CDB  Economist / quantification starting from “brick and mortar” and moving to a “digital  Digital productivity company”, and to identify some guiding principles and best Prof Andy MCAFEE  Principal investigator practices  Engineer / DBA As global leaders in strategy and transformation consulting,  Enterprise 2.0 / Management Prof George WESTERMAN Capgemini Consulting brings valuable guidance every step of the  Project lead  Technology / DBA way, from strategy development through to execution  Technology & organization MIT-CC Publications Transform to the power of Connected Digital Social Trimestrial digital: Digital transformation as Digital Customer Organizations Transformation of CRM review on Digital driver of corporate performance operating 2020 People 2.0 Supply chains Transformation Model With key industry leader interviews! Copyright © 2011 Capgemini Consulting. All rights reserved. 8
    • Companies across industries are faced with the same common challenges in their transformation process Introduction  CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities Across all three elements of the transformation process: Initiation, Execution, and Coordination1 2 3 Initiation Execution Governance MANAGEMENT INERTIA MISSING SKILLS (77%) INCREMENTAL VISION  Skepticism at the top  Skills scarcity: mobility, analytics,  Lack of a truly transformative vision social media...  Inability to transcend organisational  Lack of building platform  Reliance on external experts and/or boundaries  Lack of understanding DT vendors opportunities REGULATION AND REPUTATION CULTURE (55%)  Security and privacy concerns  Changes in jobs due to automation or information empowerment  Reputational and regulatory repercussions , particularly in  Weak leader vision on digital COORDINATION ISSUES healthcare and financial services  Ineffective coordination across  Labour relations business units or processes UNCLEAR BUSINESS CASE IT DIFFICULTIES (50%)  Ineffective coordination between  Lack of economic business case to  IT systems complexity new and traditional businesses or justify investment in new technologies processes  Lack of data / information  Lack of understanding of the role of management infrastructure investment before ROI  Poor business / IT relations Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 9
    • Organisations are digitally transforming three key areas of their companies’ valueproposition Introduction  CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities Organizations are digitally transforming customer experience, operational processes, and business models Customer Operational e e Business Model Experience Process Customer understanding Process digitization Digitally-modified businesses  Analytics-based segmentation  Performance improvement  Product/service augmentation  Socially-informed knowledge  New features  Transitioning physical to digital  Digital wrappers Top line growth Worker enablement New Digital Businesses  Digitally-enhanced selling  Working anywhere anytime  Digital products  Predictive marketing  Broader and faster communication  Reshaping organisational  Streamlined customer processes  Community knowledge sharing boundaries Customer touch points Digital Globalization  Customer service Performance management  Enterprise Integration  Cross-channel coherence  Operational transparency  Redistribution decision authority  Self service  Data-driven decision-making  Shared digital services  Unified Data & Processes  Business & IT Integration  Analytics Capability Digital Capabilities  Solution DeliverySource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 10
    • Increased sophistication of customers, price pressure, and the emergence of e edigital technology is increasingly shaping how banks interact with it’s customers Introduction CC-MIT key Findings  DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities Increased sophistication of customers and the emergence of digital technology creates opportunities: Selected key challenges for Financial Services Industry  Banks ability to personalize the customer experience, improve retention and increase Customer customer satisfaction are still under developed. Starting the conversation using external Experience CRM is an enabler  Develop analytic capabilities in order to utilize and capitalize on customer data across products and channels. Enables targeted marketing & communication which will increase up sales and cross sales Customer understanding  Multichannel integration and streamlining customer processes to ensure consistent  Analytics-based segmentation  Socially-informed knowledge customer experience are still key issues for banks Top line growth Leading practices examples  Digitally-enhanced selling Barclays - first bank in Europe ING Personalized Citibank tablet banking strategy  Predictive marketing  Streamlined customer to pilot “Microsoft Surface” processes Customer touch points Digitally transformed the Through analytic capabilities, “We wanted to fundamentally  Customer service branch concepts through ING delivers personalized rethink customer interactions.”  Cross-channel coherence touch-screen technology and product offers In real time - Tracey Weber, Managing  Self service “digital transformed staff” across channels DirectorSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Forrester analysis Copyright © 2011 Capgemini Consulting. All rights reserved. 11
    • Technologies are creating opportunities to increase efficiency and reduce cost e e for the traditional banks Introduction CC-MIT key Findings  DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities The current state of the European market are forcing banks to focus on cost and retention: Selected key challenges for Financial Services Industry  Banks are struggling to successfully achieve the two sided, often contradicting challenge Operational of both customer centricity and efficient operations at the same time is inextricably Process linked to the ability to capitalize on the next generation corporate assets such as technology and customer information (pattern based decision making)  Pressure on margins as well as more sophisticated customer expectations require focus on lean processes across business units – digitalization of processes Process digitization  Performance improvement  Traditional banks, with its legacy, are also struggling to transform the workforce (e.g.  New features (digitally transform the advisory role) and ensure coolaboration across silos Worker enablement Leading practices examples  Working anywhere anytime Allianz digitized processes to Groupo BBVA devices are changing the  Broader and faster reduce cost way people work communication  Community knowledge sharing Allianz invested between 500 M€ - 1B€ in a 2 year iPad and iPhone help Grupo BBVA to Performance management digital transformation program. They reduced the accelerate essential workflows, improve  Operational transparency customer centers from 13 000 FTEs to 9 000 FTEs internal communications, and provide the best  Data-driven decision-making through Lean techniques combined with a digital possible services to its 49.8 million customers operating model worldwideSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Forrester analysis Copyright © 2011 Capgemini Consulting. All rights reserved. 12
    • A new form of competition have been evolving and traditional banks are e efacing disruption in their business models Introduction CC-MIT key Findings  DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities Banks can not wait and watch while non traditional players are threatening the traditional value chain Selected key challenges for Financial Services Industry  Traditional banks, with their legacy, are still struggling with the transitioning from Business physical to digital Model  Within the cards and payments industry a new form of competition have been evolving where the traditional card companies are facing disruption in their business models, and new non-financial players make traction in their value propositions Digitally modified  This trend can also be seen in consumer credit, mortgages, etc where peer to peer businesses services and services from non traditional players like google, Apple, Smava, etc, are  Product/service augmentation  Transitioning physical to digital threatening the traditional value chain  Digital wrappers Leading practices examples New Digital Businesses Lloyds TSB joins MasterCard PayPass is a new Paypal payments  Digital products  Reshaping organisational Samsung and Visa “contactless” way to pay. reach 7b$ in Q1 2012 and boundaries announce a partenership with terminico for direct Digital Globalization Will provide Near field There are nearly 55 transactions  Enterprise Integration communication-enabled million PayPass cards 7b$  Redistribution decision phone payments at next and devices in use at 0,1b$ 4b$ authority 0,7b$ years London Olympic over 146,000 merchant  Shared digital services 2009 2010 2011 Q1 2012 Games locations worldwideSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Capgemini Consulting analysis Copyright © 2011 Capgemini Consulting. All rights reserved. 13
    • While the most common usage of these technologies is in substitution, several firms arealso using them to extend or transform their processes and functions Introduction CC-MIT key Findings  DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities “We identified 3 level of usage of technologies: Substitution, Extension, Transformation” SUBSTITUTION EXTENSION TRANSFORMATION Smart Data, Cards analytics Simple apps or Facebook pages Mobile Banking Services, PFM Convergence Bank-Retail Customer service online Streamlining Customer process Services on Demand Social Loyalty programs E-Billing, HR digitization Real-Time updates Customer Experience Operational ProcessesSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 14
    • Traditional banks are faced with several opportunities and threats, and are to some extentforced to engage in a Digital Transformation Introduction CC-MIT key Findings  DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities What does Digital Transformation mean for the ‘Traditional’ bank industry? Customer Operational Business Model Experience Processes Understanding Digitally-modified Process digitization Conversation Social Listening Customer centric Paperless adoption technology Payments Card analysis Tools Mobile Banking Services on Demand Sales New B2E Benchmark pricing tools Tablet Sales Social Broker Platforms E-Billing Interactive Billing Knowledge sharing Crowdfunding P2P SmartData Gamification Geolocation HR Process digitization Social Bank Service Lending seg. Partnerships Payment Customer Service Online Globalization Digital Currency Accounts aggregators PFM Open Bank Mobile wallet Social Media Branding Bank in a box New ways of payement Social Loyalty programs Digital Capabilities Bank AppStore Cloud Real-Time Information Digital Platform ID&VSource: Capgemini Consulting Digital Banking UK Financial Services O (c) 2012 * Technologies adopted by traditional banks are highlighted in red Copyright © 2011 Capgemini Consulting. All rights reserved. 15
    • Successful Digital Transformations in our study used a common set of elements that works together in an iterative approach which enables constant learning and development Introduction CC-MIT key Findings DT in Financial Services  Maturity Assesssement Relevant case studies Approach CC FS capabilities “To succeed in your Digital Transformation Journey you have to focus on the ‘how’ more than the ‘what’” TRANSFORMATIVE DDIGITAL ISION TRANSFORMATIVE IGITAL V VISION STRATEGIC ASSETS PRODUCTS & PARTNERSHIP CUSTOMER SALES FORCE CONTENT NETWORK KNOWLEDGE THE “HOW” IS THE POINT OF SALE & PRODUCT BRAND CULTURE WAY THAT SENIOR DISTRIBUTION CHANNELS INNOVATION EXECUTIVES DRIVECHANGE THROUGHOUT THE “WHAT” IS THE ORGANIZATION. DIGITAL BUILDING BLOCKS SPECIFIC SET OF DIGITAL ENGAGEMENT DIGITAL GOVERNANCE THIS INCLUDES Customer Operational Business DIGITAL CREATING AND Experience E Process E Model TRANSFORMATION COMMUNICATING ELEMENTS VISION, ESTABLISHING Customer Process Digitally-modified understanding digitization businesses IMPLEMENTED BY GOVERNANCE AND THE ORGANIZATION, MEASUREMENT Top line growth Worker enablement New digital INCLUDING THE MECHANISMS, AND businesses STRATEGIC ASSETS BUILDING A DIGITAL- Customer touch Performance Digital AND DIGITAL READY CULTURE. points management globalization INVESTMENTS THAT Digital Capabilities ARE USED TO CREATE THOSE ELEMENTS. DIGITAL INVESTMENT SKILLS INITIATIVES ITERATIVE TRANSFORMATION ROADMAP Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 16
    • The CC-MIT maturity model enables companies to position themselves on the « digitalmaturity matrix » Introduction CC-MIT key Findings DT in Financial Services  Maturity Assesssement Relevant case studies Approach CC FS capabilities The CC-MIT maturity model enable companies to position themselves on the « digital maturity matrix » FASHIONISTAS DIGIRATI • Strong overarching digital vision • Many advanced digital features (such as social, mobile) in silos • Good governance Our approach aims at assessing • No overarching vision • Many digital initiatives generating companies maturity on two major • Underdeveloped coordination business value in measurable ways topics : the firms’ digital intensity DIGITAL INTENSITY • Digital culture may exist in silos • Strong Digital culture (“what is the firm doing?”) and the transformation management intensity (“how is the company BEGINNERS CONSERVATIVES doing it?”) • Management skeptical of the • Overarching digital vision exists, business value of advanced digital but may be underdeveloped technologies • Few advanced digital features, • May be carrying out some though traditional digital experiments capabilities many be mature. • Immature digital culture • Strong digital governance across silos • Taking active steps to build digital skills and culture TRANSFORMATION MANAGEMENT INTENSITYSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 17
    • The majority of the participants in the CC-MIT maturity analysis are beginners, withrelativly low digital- and transformation management intensity Introduction CC-MIT key Findings DT in Financial Services  Maturity Assesssement Relevant case studies Approach CC FS capabilities Figure below show how companies in our study scored on an initial qualitative assessment of digital maturity FASHIONISTAS DIGIRATI 13% 17% Our approach aims at assessing companies maturity on two major topics : the firms’ digital intensity (“what is the firm DIGITAL INTENSITY doing?”) and the transformation management intensity (“how is the company doing it?”) 50% 19% BEGINNERS CONSERVATIVES TRANSFORMATION MANAGEMENT INTENSITY Note: Digital maturity assessments were conducted by the research team using information from interviews. Vertical and horizontal lines represent median points for the two dimensions in the figure.Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 18
    • Each ‘Digiratis’ has its own flavour and follow different paths in their digital journey, butend up with strong models embracing digital Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities BBVA DNB Capital One Customer centric Mobile Banking Smart data http://www.apple.com/ipad/business/ profiles/bbva/ To be the champion of digital Compared to peers such as banking DNB took immediate American Express, Capital One action and restructured the has exhibited faster growth 5 March 2010: BBVA’s Executive which can be attributed to whole organization and set up We need to think of different digitization and smart data a digital platform across silos approaches to serve customers, strategies and technology is a key element in our business model.” SpareBank1 SimpleBank Paypal Social media Geolocation Payment http://www.youtube.com/watch?feat http://vimeo.com/29339937 ure=player_embedded&v=V7q1jx8mYi SpareBank 1, Norvegian 8 Champion in Social Media use them as their new “We focus exclusively on the 1 feb 2012: Paypal announce that communication platform user experience of banking”* they partnership with Terminico & generating substantial HomeDepot to pay entering your communication economies mobile number in the terminal Copyright © 2011 Capgemini Consulting. All rights reserved. 19
    • BBVA digital transformation was strongly driven by C-level executives with a radicalapproach. Benefits are renew of their band, customer centric approach and financial Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities “5 March 2010: BBVA’s Executive We need to think of different approaches to serve customers, and technology is a key element in our business model.” Customer Operational e e Business Model GROUPO BBVA, A SPANISH BANKING GROUP, LEVERAGE DIGITAL TO FOCUS ON CUSTOMER Experience Process Customer Digitally-modified Process digitalization understanding businesses Legend: white: not done / light grey: partially done / dark grey: fullly done Top line growth Worker enablement New Digital Businesses Differentiating on communication Customer touch points Performance Digital Globalization • BBVA has the opportunity to take a niche that provides management Digital Capabilities sustainable differentiation, a niche that its competitors BBVA Innovation Center is a do not currently occupy. This niche will guide the experiences and communication they offer to the meeting point between The Bank stakeholders at all of the points of contact, both physical and virtual and the Society through Technology. Madrid Contactless • BBVA is leading Madrid Contactless, a project designed to equip Madrids high traffic retailers with contactless POS terminals • High presence on Social Media 94 official profiles in Facebook and Twitter BBVA is switching it’s 110,000 staff to use Google enterprise software • BBVA is using Google applications (email, calendar, docs, chat, video conferencing and other collaboration tools) to "achieve a cultural change" and get "the whole company working together" BBVA teamed across the 26 countries where BBVA is based with IDEO to • The roll-out of Google Apps will be staggered, with more than 35,000 BBVA workers develop a new ATM system Brand strategic position oriented to the digital model The system based on customer • Customer BBVA Centric Bank, is a project that combines the vision of the Internet with all that needs. It’s also an automated teller comprises multi-channel experience machine designed to gain a competitive advantageSource: Capgemini Consulting- CoE Digital banking– FS Spain Expertise (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 20
    • To be the champion of digital banking DNB took immediate action and restructured thewhole organization and set up a digital platform across silos Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities Phase 1 of the transformation was focused on cost cutting, phase 2 on customer experience. Customer Operational e e Business Model DNB, A NORVEGIAN BANK, MOBILE CHAMPION Experience Process Customer Digitally-modified Process digitalization understanding businesses Legend: white: not done / light grey: partially done / dark grey: fullly done Top line growth Worker enablement New Digital Businesses DNB is a leader in mobile banking Customer touch points Performance Digital Globalization • 80% of their customers are using online banking. They management Digital Capabilities Norwegian bank with more than also target the communication via e-mailing. The customers decide which channel they want to address, 2,5 million customers channels are not fully integrated yet, as digital and 800,000 customers traditional business are running in parallel • DNB is looking to develop a CRM with an operational side and an analytical side, as well as using mobile banking on SMS connecting the traditional one to the digital platform unit With the legacy that comes with • The bank has developed several apps for bank account and services access several mergers and acquisitions Phase 1 of the digital transformation program focused on cost cutting DNB has focused on unifying the • DNB has digitized a lot of their operational processes for sign-up, loan subscription and others group on one digital platform • They are leader in Mobile services; DNB offer payment by SMS, loan by SMS and so on “Rule digital banking” Business has been digitally transform and could be extended group-wise stated as must win battle by end • The bank is digitally transformed and envision to create a platform that could be extended across of 2013 the group in several countries Digital platform has been built across silos embedding all customer facing Currently focus on digitalizing • They reorganized their Business/IT governance, split in 3 departments to be able to deliver a digital back end processes to reduce unified backbone: the reorganization of IT is a main factor here to be able to succeed costs and will shift the focus towards the front end and • The biggest change was the relationship between business and IT, which are now highly connected customer experienceSource: Capgemini Consulting-CoE Digital banking– FS Norway Expertise (c) 2012 Copyright © 2011 Capgemini Consulting. All rights reserved. 21
    • Compared to peers such as American Express, Capital One has exhibited faster growthwhich can be attributed to digitization and smart data strategies Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities The focus on advanced digital initiatives has helped Capital One maintain sector leading growth and steady profits CAPITAL ONE, ANALYTICS CHAMPION Customer e Operational e Business Model Experience Process Legend: white: not done / light grey: partially done / dark grey: fullly done Customer Process digitalization Digitally-modified understanding businesses Digital strategy focused on smart data Top line growth Worker enablement New Digital Businesses • Focus on advanced analytics and sophisticated CRM Customer touch points Performance Digital Globalization “Big companies sometimes systems to profile its customers and minimize its risks management try to have a silver bullet. But Digital Capabilities for meeting needs in the Extensive use of Digital Data Analytics digital space, you need to be • Developed a complex data analytics system which uses a combination of credit bureau and company fast, and get out there and gathered information to effectively segment the market for credit cards learn. You need to think big, start small, learn quickly and Co-Creation of their product with their clients then scale.“ • Launched the ‘Card Lab’ in 2007 which allows customers to create their own credit card through an Innovation director ,Capital online portal One • Various card features such as visual appearance, rewards and interest rates can be modified Development of IT Infrastructure • Developed in-house IT capability, which improved the linkages between different units thereby maximizing the value derived from analytics • Digitized telephone customer service in order to improve efficiency Results • Superior growth rate compared to peers • Net profit grew at a CAGR of 19.3% between 2000-2010 compared to 3.74% for American Express during the same period • Better targeted offerings compared to competitorsSource: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012 Copyright © 2011 Capgemini Consulting. All rights reserved. 22
    • SpareBank 1, Norvegian Champion in Social Media use them as their new communicationplatform generating substantial communication economies Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities "Sparebank 1 has been an early adaptor of social media" Customer Operational e e Business Model SPAREBANKONE, A NORVEGIAN BANK, SOCIAL MEDIA CHAMPION Experience Process Digitally-modified Customer understanding Process digitalization businesses Legend: white: not done / light grey: partially done / dark grey: fullly done Top line growth Worker enablement New Digital Businesses What they do Customer touch points Performance Digital Globalization management • Build trust: more dialogue, listening and sharing than Digital Capabilities selling and marketing • Communicate in times of technical trouble, security issues e.g. First Smartphone app demo • Develop innovative products with our customers http://www.youtube.com/watch?v=AoP HK7VqXF0 • Provide customer service through social media Demo of Digital signature for logon identification We load all http://www.youtube.com/watch?v=pz3j K-Zj1zE&feature=related our films to Youtube Mobilbank PM – Statistics first week of production Demo of new Smartphone app • Total number downloads of the first App 133 000 http://www.youtube.com/watch?v=mIC CHfQmYHc We monitor listening on social • Account balance is the # 1 service Demo of our internet bank media • 3% of all logons performs a payment https://demo.sparebank1.no/ • 11% of all logons performs a transfer Social media is their new communication platform ! We had the first bank blogg in the Nordic regionSource: Capgemini Consulting-CoE Digital banking– FS Norway Expertise (c) 2012 Copyright © 2011 Capgemini Consulting. All rights reserved. 23
    • Banksimple is a start-up based on Geolocation usage, but their disruptive concept shakethe traditional banking world in US Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement  Relevant case studies Approach CC FS capabilities "Our User Experience philosophy is, Lets make it nearly impossible for you to fail." Customer Operational e e Business Model BANKSIMPL, A DISRUPTIVE B-MODEL LEVERAGING GEOLOCATION AND ANALYTICS Experience Process Customer Digitally-modified Process digitalization understanding businesses Legend: white: not done / light grey: partially done / dark grey: fullly done Top line growth Worker enablement New Digital Businesses Banksimple is a disruptive b-model Customer touch points Performance Digital Globalization management • Banksimple is an online interface that sits on top of back Digital Capabilities “simple is not a bank” end systems provided by partner banks (Bankcorp and CBW) it is a service that utilises back • There is no branch network to service. end systems provided by partner banks. • In contrast to most of the US consumer banking industry, BankSimple levies no monthly charges. • Revenue is generated by sharing interest margin and levying a “interchange fee” on customers card Currently offering serving a transactions. This is passed through by its partner banks small number of invite only Streamlining Customer experience is key customers. Funded by $13 million venture capital, it is • Design principle is to produce the online banking platform for mobile first - this ensures simplicity and clarity. strongly differentiated against traditional US banks • Banksimple communicates “socially” with its customers and potential customers offering views on how they can use it’s services to improve their lives. “The cost of your vices” is a recent blog article. The service is based on geolocation, interactivity and analytics adoption • Sophisticated analytics are utilised - geolocation of purchasing, smart categorisation and available to spend. • Interactive e-statement where you can click and group expenses per type, location • Card analytics, personal finance management tools integrated “We focus exclusively on the • Off the shelf utilised for large portions of the technology (Andrea , TxVia) user experience of banking”*Source: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012 *Bill DeRouchey - BankSimple, Creative Director Copyright © 2011 Capgemini Consulting. All rights reserved. 24
    • Several banks partners with financial innovation companies to accelerate new technologyadoptions Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies  Approach CC FS capabilities Customer experience Division Product & Conversation Marketing & New Services Innovation service sales Retail Personal banking geolocation Credit Corporate banking Operational process Billing & Online bank Mobile bank Payment Accounts Currency invoicing operation operation Insurance Insurance P2P & crowd- Investment Transfer funding banking Risk & Capital Fraud market Settlement 3rd party Group functions API store Security Authentication IT & data HR/payroll management AdvisorySource: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012 Copyright © 2011 Capgemini Consulting. All rights reserved. 25
    • CC-MIT Recommendations to drive digital transformation Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies  Approach CC FS capabilities 1. ASSESS YOUR COMPANY’S DIGITAL MATURITY 2. CREATE A TRANSFORMATIVE VISION OF THE FUTURE 3. INVEST IN FOUNDATIONAL DIGITAL CAPABILITIES 4. PROVIDE GUIDERAILS 5. CONSTANTLY COMMUNICATE AND ENHANCE THE VISIONSource: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 26
    • Capgemini Consulting has a portfolio of offers and credentials including Digital Bankingand Private banking Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach  CC FS capabilities Multi- Channel Customer Management Experience Digital Operating Listening and Models Digital banking Conversation and private banking People 2.0 Strategy Digital Services & & Roadmap Technology Smart data GovernanceSource: Capgemini Consulting-MIT Analysis Copyright © 2011 Capgemini Consulting. All rights reserved. 27
    • Digital Banking CoE - CC Expert networkIntroduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach  CC FS capabilities Main Contributors of Digital Banking Strategies Phil Falato Stanislas de Roys Claire Calmejane Sundar Vasudevar Marianne Sorlie Rishi Vijay Vice President Vice President Managing Consultant Managing Manager Financial Services Financial Services MIT Visiting Scientist Operating Model Head of Business Analysis Group Tour Europlaza 40 Holborn Viaduct 20, avenue André Prothin - 40 Holborn Viaduct Hoffsveien 1D Plant No.6, Godrej & Boyce MFG Co Courbevoie 40 Holborn Viaduct London, EC1N 2PB Oslo, 0275, Norway Ltd, Pirojshanagar, Vikhroli (West) London, EC1N 2PB 92927 Paris – La Défense Cedex London, EC1N 2PB Port: + 44 78 91 15 68 01 Off: +47 24127053 Mumbai - 400 079, India Port: + 44 78 10 48 44 11 Port:+33 (0)6 88 64 84 23 Port: + 44 78 91 15 13 36 sundar.vasudevan@capgemini.com Port: +47 99560923 +91 22 67557000 Phil.falato@capgemini.com stanislas.deroys@capgemini.com claire.calmejane@capgemini.com marianne.sorlie@capgemini.com rishi.vijay@capgemini.com With the great support of Carole Gentil, Chris Allen and Javier Ortega Our CoE Digital Banking expertise across the globe Keith Middlemass Anders Rygh Remy Bonnasse Frederic Roux Ton Kentgens Vice President Principal Bai, Hua Principal Vice President Principal Financial Services Director Financial Services Financial Services Financial Services Financial Services 40 Holborn Viaduct Tour Europlaza SK Tower, No.6 Jia Jian Guo Menwai London, EC1N 2PB Hoffsveien 1D, N-0214 Oslo, 20, avenue André Prothin - Avenue, Chao Yang District, Beijing Papendorpseweg 100, Utrecht, 20 avenue André Prothin, +448703660970 Norway Courbevoie Netherlands 92927, France keith.middlemass@capgemini.com +47 24127863 92927 Paris – La Défense Cedex hua.bai@capgemini.com +31306893277 +33149674894 anders.rygh@capgemini.com +33 6 20338298 ton.kentgens@capgemini.com frederic.roux@capgemini.com remy.bonnasse@capgemini.com Rym Keramane Marc Gruber Andrea Vetuli Andreas Artelius Javier Ortega Manager Senior Consultant Consultant Managing Managing Financial Services Financial Services Financial Services Berliner Strasse 76, Offenbach, Via Nizzoli, 6 20147 Gustavslundsvägen 131 Tour Europlaza Germany Anabel Segura 14 Milan , Italy Bromma, 161 24 20, avenue André Prothin - +49 151 4025 1947 Alcobendas – 28108, Spain +39 02 414931 +46767973062 Courbevoie marc.gruber@capgemini.com +34 699 529 170 andrea.vetuli@capgemini.com andreas.artelius@capgemini.com 92927 Paris – La Défense Cedex javier.ortega- rym.keramane@capgemini.com estrada@capgemini.com Copyright © 2011 Capgemini Consulting. All rights reserved. 28