2Today’s PresenterJean-Noël Georges, Global Program DirectorFrost & SullivanFranceSophia Antipolis +15 years experience in the fields of corporate strategy, sales optimisation andmarketing strategy with particular experience in geographic market expansion,outsourcing business models, online customer experience management, valueproposition creation and benefit models. Before joining Frost & Sullivan, I was the manager for Gemalto, where I wasresponsible for smartcard personalisation software development and newproducts business development. He managed smartcard projects coveringtelecom, banking, healthcare, transportation and the government ID. In my spare time I am currently studying Oenology, which has to do with wineand winemaking.
3Focus Points• Market overview• Market challenges• Competitive landscape• End user requirements
4Poll QuestionIn which ICT verticals do you think European financial institution will investthe most in 2013?• Hardware• Software• IT Services• Telecommunications
5The Bleak Economic Outlook In Europe0 0.5 1 1.5 2 2.5 3FranceGermanyPolandSwedenUnited Kingdom201320140 0.5 1 1.5 2 2.5 3FranceGermanyPolandSwedenUnited Kingdom20132014Real GDP, percentage evolution, 2013-2014Inflation, percentage evolution, 2013-2014• Weakness of domestic demand• Strong expectation in externaldemand• Domestic investment back toprevious level in 2014Source: European Union, Frost & Sullivan analysis.
6Top Ten Business ChallengesObjective:ICT to helpachievebusinessoutcomes• Regain customer confidence• Enlarge volume and value oftransactions• Minimize the impact of existing globalsystems• Develop flexible communicationsolutions• Respect international rules andcomply with global programs• Aligning ICT investment with regulatoryrequirements• Improving ICT system performance• Leading mobility challenges• Developing new customer channels• Adopting a customer-centric approach• Optimizing security investments• Updating analytical tools and models• Meeting social media demand• Data protection and privacy• Cloud as an exciting opportunityNow: Optimizing existing servicesFuture: Mobile and cloud-based solutionsNow: Complying with legislationFuture: Optimizing services to acceleratereturn on investmentPriority to Refocus on Clients andProfitable ServicesTop 10 Business Challenges FacingFinancial Institutions and BanksSource: Frost & Sullivan analysis.
ICT investments in Financial Services in Europe
8• “A wait and See” attitude• Innovative ICT projects froma customer perspective• Driven by cost efficiency0.00 2.00 4.00 6.00 8.00 10.00 12.00FranceGermanyPolandRussiaSwedenUnited Kingdom2013 2018ICT in Financial Services: ICT Spend by Country Europe, 2013-2018Investment (€ Billion)European Economical Crisis Also Impacts FinancialServicesSource: Frost & Sullivan analysis.
9Discrepancies Within ICT Investments• Services are drivinginvestments• Major security projects andmarket compliance mostlydeployed• Systems to be upgraded formobile banking and cloudbased solutionICT in Financial Services: Expected ICT Expenses Split by Technology,Europe, 201515.7%24.4%45.6%14.4%HardwareSoftwareServicesTelecommunicationsBanks and FinancialInstitutionsMobilePaymentMobileBankingNewDevicesSMSLow Medium HighSource: Frost & Sullivan analysis.
Four Predictions that will Impact Financial ServicesPayment Solutions in Europe
11Contactless As The Major Payment DriverSource: Frost & Sullivan analysis.
12Massive Adoption Only In 2015Source: Frost & Sullivan analysis.VisibilityTimeFirstCommercialroll-out, in partof the WorldIntroductionInflation ofHype Decline of Hype Growth Stage PlateauLaunch of anew product /technology,minimal mediainterest.Over enthusiasmand unrealisticexpectations ingeneral begin togrow.Expectations arenot met, interestand expectationsslowly dissolve.Product andservices of saidtechnology catchup withexpectations.General public iswell informed ofthe progress oftechnology andservices andproductsavailable.
13Cloud Computing For Cost EfficiencySource: Frost & Sullivan analysis.Data AnalyticsSocial Media BankingICT in Financial Services Market: Current ICT CloudInvestments for Financial Institutions and BanksEurope, 2012Banks and Financial InstitutionsLow Medium HighCollaborationMobile BankingMobile Payment• Majority of cloud are privatecloud• major part of the investmentis currently concentrated oncloud collaboration platforms• Some of the most innovativebanks are investing in mobilepayments with cloud-basedpayment solutions and cloudbanking.
14Social Media And Data AnalyticsSource: Frost & Sullivan analysis.ICT in Financial Services Market: Current ICTDemands for Financial Institutions and BanksEurope, 2012Banks and Financial InstitutionsLow Medium HighCRMPlatformBank 2.0DedicatedTeamSocialmediaPlatform
European Payment Projects Drivers and Restraints
16Investment For Mobile Payment And Online ServicesSource: Frost & Sullivan analysis.ICT in Financial Services: Current ICT InvestmentPriorities for Digital Banking, Europe, 201262%12%7%9%4%2% 2%1%1% InternetMobile InnovationMobile PaymentServicesImprovementMobile RedesignMobile MoneyTransferMobile PersonalFinancialManagementMobile Sales• Investment in services thatrequire relatively low levelsof investment• Mobile payments is notviewed as a majorinvestment area• Customers are increasinglydemanding mobile services
17ConclusionsRespect of global mandatesBanks need to consolidate variousinformation systemsRefocus on customer needsGaining a betterunderstanding of customerbehaviourMobile device consolidationBanks will amplify their rangeof financial services2012–2013 2014–20162014–2016ICT in Financial Services: Portfolio Development inFinancial Services, Europe, 2013• Optimising Investments and Promoting Innovative Solutions• Investments are driven by global mandates• But hardly influenced by competition and customers requirements
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