Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Top-10 Technology Trends in Retail Banking: 2018

7,292 views

Published on

The proliferation of technology and entry of new players such as FinTechs continues to disrupt the retail banking industry. Augmenting customer experience has been the need of the hour as customers increasingly adopt digital products and services. In pursuit of more nimble processes and innovative approaches, traditional retail banks are enthusiastically investing in digital transformation and FinTech collaboration. With banks under pressure to boost revenues and reduce costs, while delivering better customer experience, they have been investing in emerging technologies such as blockchain, Artificial Intelligence, and Digital IDs. Moreover, banks are automating their processes and increasingly migrating their infrastructure and applications to the cloud to create a seamless customer journey. Many regulations and open-banking initiatives are emerging across the globe aimed at fostering innovation. To stay competitive, banks must remain cognizant of numerous implications from within and from outside the financial services industry. This report explores and analyzes the most high-impact tech trends expected to drive future retail banking ecosystem dynamics.

Published in: Economy & Finance
  • Hello! High Quality And Affordable Essays For You. Starting at $4.99 per page - Check our website! https://vk.cc/82gJD2
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Top-10 Technology Trends in Retail Banking: 2018

  1. 1. Retail Banking Trends 2018 Capgemini, November 2017
  2. 2. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 2 10 1 73 2 6 5 8 9 4 Banks Make Significant Investments in Digital Transformation More and More, Banks Collaborating With FinTechs Through Different Models Banks Look To Leverage Digital IDs Beyond Authentication Banks Strive to Bring Distributed Ledger Technology Out of Labs, Into the Real World Banks Deploy AI and RPA to Increase Productivity and Efficiency Banks Leverage Analytics to Transform End-To- End Customer Journeys As Security Threats Recede, Banks Leverage the Cloud to Cost-effectively Streamline Processes Digital-Only Challenger Banks Threaten to Beat Retail Banks at Their Own Game Alternate Lenders Leverage Alternative Data for Providing Credit Facilities to a Wide Range of Customers Banks Connect With Third-Party Providers to Drive Customer-Centricity and Implement New Models Retail banking trends 2018
  3. 3. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 3 As competitive pressures rise, banks are investing aggressively in digital transformation 71% Redesign / enhance digital experience for consumer 41% Digital enhancements for improving customer experience 30% Migrating customers from physical to digital channels 35% Digital laggards in FS industry could lose up to 35% of the total market share to digital pure-plays Note a: The survey for top strategic priorities for banking was conducted in 2016 Source: Capgemini Financial Services Analysis, 2017; "The Digital Banking Revolution: Who Will Survive?”, Jeffrey Pilcher, The Financial Brand, Jan 31, 2017; "How a bank bet on fintech for its digital reboot”, Bryan Yurcan, American Banker, Aug 30, 2017; "Top 10 Strategic Priorities for Banking in 2017", Jim Marous, The Financial Brand, Dec 7, 2016 BankingExecutivesTop StrategicPrioritiesa #1 Digital business / digitalization was the #1 strategic business priority for industry CIOs in 2016-2017
  4. 4. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 4 FinTechs have accelerated the digital disruption and banks are now increasingly collaborating with them Source: Capgemini Financial Services Analysis, 2017; Capgemini World Retail Banking Report, 2017; https://www.finextra.com/newsarticle/30605/bankfintech-collaboration-can-take-transaction-banking-to-new- heights; https://thefinancialbrand.com/61980/banks-partner-fintech-strategy/ 91% Banks want to collaborate with FinTechs 75% FinTechs want to collaborate with Banks 86% Banks feel they will suffer if they don’t embrace FinTechs 42% Banks feel collaboration will reduce their costs Capital Innovation Economies of Scale Agility Customer Data Better Customer Experience Regulatory Know-How Technological Know-How Banks’ Strengths FinTechs’ Strengths
  5. 5. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 5 Banks look to leverage digital IDs beyond authentication Source: Capgemini Financial Services Analysis, 2017; WEF: “A Blueprint for Digital Identity,” August 2016, accessed October 2017 at http://www3.weforum.org/docs/WEF_A_Blueprint_for_Digital_Identity.pdf Benefits for Users Enhanced Security New Revenue Streams Access to Other Services Enabler of Open Banking Personalized Offerings Enhanced Products Convenience with Control Operational Efficiency Benefits for Banks Biometrics Customer Experience Key Drivers Cost Savings Transparency
  6. 6. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 6 Banks strive to bring Distributed Ledger Technology (DLT) out of labs, into the real world No Intermediaries, Minimal Supervision Better Compliance (no need of separate ledgers) Instant Payments Transfers (Domestic and Cross-Border) More Secured with Network supervision Instant Verification and KYC Key Areas of Benefits Source: Capgemini Financial Services Analysis, 2017
  7. 7. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 7 Banks deploy AI and RPA to increase productivity and efficiency 80% Of back office workers’ time is spent on repetitive and manual tasks 35- 50% Of banks productivity gains can be enabled by Robotic Process Automation 50- 90% Savings on cost, with the help of robots when compared to off-shore / on-shore employees Enhanced Customer Experience Increased Efficiency and Scalability Improved Quality of Output Optimized Operations and Delivery Cost Reduction and Regulatory Compliance Source: Capgemini Financial Services Analysis, 2017; “Robotic Process Automation,” Capgemini Consulting, 2016 Benefits
  8. 8. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 8 Banks leverage analytics to transform end-to-end customer journeys Source: Capgemini Financial Services Analysis, 2017 Benefits Personalized OfferingsSuperior Customer Journeys Rewarding Loyalty Programs Efficient Decision Making BanksMakeUseofStructured andUnstructuredData
  9. 9. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 9 Banks leverage the cloud to cost-effectively streamline processes 58% Executives believe Cloud will help to lower overall IT costs while delivering banking solutions 50% Executives believe cloud will help to support new technology while delivering banking solutions Source: Capgemini Financial Services Analysis, 2016; “Cloud Banking: A Question of Collaboration", Temenos, 2016 Reduced Overhead Costs Increase in Agility and Flexibility Easier Integration with Emerging Technologies Provides the Ability to Scale Benefits
  10. 10. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 10 Digital-only challenger banks threaten to beat retail banks at their own game Cost Advantage Superior Customer Experience Targeting Niche Segments Flexible and Agile Decision Making Simplified Technology Distribution Digital Channels Lack Of Physical Infrastructure 54% Challenger banks are offering lending related banking services Source: Capgemini Financial Services Analysis, 2016; “Burnmark Research: Challenger Banking,” October 2016 Competitive Advantages Over Traditional Banks
  11. 11. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 11 Alternative lenders are using digital platforms and tools to provide credit to a wide range of consumers 46.2% Growth of P2P Lending industry in 2016 Faster Credit Source: Capgemini Financial Services Analysis, 2017; Capgemini World Retail Banking Report, 2017; https://www.finextra.com/newsarticle/30605/bankfintech-collaboration-can-take-transaction-banking-to-new- heights; https://thefinancialbrand.com/61980/banks-partner-fintech-strategy/ 51.5% Expected CAGR of P2P Lending industry from 2016 to 2022 Lower Interest Rates Higher Transparency Better Customer Engagement Lower Operating Costs AdvantagesofAlternate Lenders
  12. 12. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 12 Banks connect with third-party providers to drive customer-centricity and implement new models Source: Capgemini Financial Services Analysis, 2017; World Retail Banking Report, Capgemini, 2017 Benefits New Revenue Streams Collaborative Ecosystem Enhanced Offerings Challenges Cyber Vulnerabilities Disintermediation Loss of Relationship/Revenue
  13. 13. Retail Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2017 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message.

×