1. Banking Trends for 2016

2. 2Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are facing an increasing threat of
disruption
Profitable aspects of
banking business are being targeted
Customer expectations are
creating a need for innovation
Payment services are facing
the highest level of disruption
Source: Capgemini Financial Services Analysis, 2015;

3. 3Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are making investments to drive
innovation
Partnering/
Collaborating
Incubators/
Accelerators
Innovation
Labs
Investing in
FinTechs
Acquiring
FinTechs
Source: Capgemini Financial Services Analysis, 2015;

4. 4Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
To counter cyber threats, banks are investing
more in Security Systems
450
mn
Customers using
banking services
through biometrics by
end of 2015
40%
Increase in cost of
managing cyber
security infrastructure
by 2025
$13.5
mn
Total average
annualized cost of
cyber crime in financial
services firms in 2015
Source: Capgemini Financial Services Analysis, 2015; 2015 Cost of Cyber Crime Study: Global, Ponemon Institute; “Why Cyber Security Will Cost 40% More In 10 Yrs”, CXOtoday, News Desk,June 12, 2015; ”Biometrics will be main banking identity
authorization method by 2020, says report”, Justin Lee, Biometricupdate.com, June 2, 2015

5. 5Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are increasingly using cloud services
for core business activities
$191
bn
The global cloud
market is estimated
to reach $191bn by
2020
70%
Percentage of cloud
initiatives of major
global banks
leveraging private
cloud (Dec 2014)
Scalability
Flexibility
Agility
Source: Capgemini Financial Services Analysis, 2015; “Benchmark Your Enterprise Cloud Adoption, Forrester Research, Inc., Sophia I. Vargas, Dave Bartoletti with Glenn O’Donnell, Michael Caputo, August 12, 2015; Cloud Heat Map in Banking, 2015,
Gartner, December 10, 2014

6. 6Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks will continue to leverage digital
technologies to enhance customer experience
Enhanced
Mobile Banking
Services
Analytics Driven
Personalized
Services
Advisory Role of
Physical
Branches
24%
Percentage of new
analytics initiatives
are focused on
customer
experience in 2015
Source: Capgemini Financial Services Analysis, 2015; Analytics Heat Map in Banking, Gartner, 2015

7. 7Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are increasingly taking up legacy
systems transformation
Driving Agility Better Time to Market
Competitive
Differentiation
80%
Percentage of banks
expected to replace
their core banking
systems within the
next five years
Source: Capgemini Financial Services Analysis, 2015; “80% of banks to replace core systems ’within five years’”, Elliott Holley, Banking Technology, 16 March 2015

8. 8Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are exploring distributed ledger
technology as an opportunity
Efficiency
Speed
Transparency
$ 15-
20 bn
Distributed ledgers are
expected to reduce
banks’ infrastructure
costs by $15bn–$20bn
per annum by 2022
Source: Capgemini Financial Services Analysis, 2015; “The Fintech 2.0 Paper: rebooting financial services”, Santander InnoVentures, Oliver Wyman, and Anthemis Group, 2015

9. 9Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are working to fully integrate risk
management and compliance practices
$ 230 Billion
Total Litigation Costs Paid by
U.S. and European Banks
(2009-2014)
Increased
Regulations
Increased Spending
on Automation
Enabling Employees
with Decision
Making Tools
Compliance
Procedures for
Third-Party Vendors
Source: Capgemini Financial Services Analysis, 2015; “European banks face $52 billion in litigation costs: Morgan Stanley”, Reuters.com, 13 Jan 2015

10. 10Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are embracing advanced analytics in
addition to traditional business intelligence
solutions
Proportion of Overall
Analytics Initiatives by Banks
Traditional BI: 28%Advanced Analytics: 72%
Risk Management
Business
Strategy
Fraud Analytics
Customer
Analytics
Source: Capgemini Financial Services Analysis, 2015; Analytics Heat Map in Banking, Gartner, 2015

11. 11Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are focusing on financial inclusion and
awareness
Pressure on
Business Growth
Enhance Financial
Awareness
Enhance Customer
Engagement
Need for PFM and
Gamification
Source: Capgemini Financial Services Analysis, 2015;

12. The information contained in this presentation is proprietary.
© 2013 Capgemini. All rights reserved.
www.capgemini.com
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