Digital disruption in Finance

1. Digital Transformation ——— Digital Disruption   in finance ——— June 2015 jo@dearmedia.be / @jcaudron / +32 475 43 80 98

2. AllDigitalNow • we are a digital consulting company • founded in 2009 • we work for large European clients • we have a strong vision on the impact of digital and act accordingly • we are advisors, writers, coaches and entrepreneurs

3. @jcaudron

4. Digital disruption is real. Expect a smack in the face…

5. who is your…

6. Waves of Digital Disruption 1995+ Music Photography Video Rental … 2010+ Print Media TV Travel HR … 2015+ Finance Healthcare Automotive Retail Education Telco … 2020+ All Safe havens will be subject to digital disruption …

7. @jcaudron Disruption Modeling Transformation You have a choice

8. @jcaudron What can we learn?

9. The Glass House Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity

10. Transparency, trust, authenticity,… Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House google.com/trends/

11. Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House

12. Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House Accountability

13. Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House Bi-directional

14. Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House “Simple”, remember these guys… simple.com Humanization Transparency

15. Transparency Accountability Proximity Responsiveness Bi-directional Humanization Authenticity The Glass House New transparent technologies like the Blockchain blockchain.info

16. Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability The Package

17. Angry Birds Twitter, Facebook Newspaper Website CNN online / app Blogs Vertical sites and specialties portals Yelo App Boxee Spotify Sporza.be LinkedIn, Monster, ... eBay Pinterest, blogs Weather Pro (iPhone) Traffic: Waze + iCoyote (iPhone) YouTube Twitter, Facebook RSS Breaking news In-depth analysis Services Weather Classifieds Jobs Sports TV Fun Specials Discovery culture Trends & Lifestyle Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability The Package Unbundling

18. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability Unbundling of banks

19. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability PayPal’s simple and social payments app venmo.com

20. Personalized pricingThe Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability metromile.com

21. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability Rebundling of health insurance with personalized lifestyle improvements zoomcare.com/health-insurance

22. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability Subscriptions & packages in healthcare insurance hioscar.com

23. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability Exquise user experience m.gobank.com

24. The Package Monolithic vs. atomic APPiﬁcation Long Tail Personalized Experience Speed Price (Self-)service Scalability Scalability

25. The Frog Bypassing Virtualization Fragmentation of touchpoints

26. Bypassing Virtualization Fragmentation of touchpoints The Frog Bypassing

27. Bypassing Virtualization Fragmentation of touchpoints The Frog Other industries are getting into finance

28. Bypassing Virtualization Fragmentation of touchpoints The Frog Bypassing of overdrafts through better rates and no waiting times koalaboox.com

29. Bypassing Virtualization Fragmentation of touchpoints The Frog Bypassing of stockbrokers robinhood.com

30. Bypassing money transfer fees Bypassing Virtualization Fragmentation of touchpoints The Frog transferwise.com

31. “The People” bypassing banks, Bitcoin is for real Bypassing Virtualization Fragmentation of touchpoints The Frog goabra.com

32. Bypassing Virtualization Fragmentation of touchpoints The Frog Bypassing of money transfer companies

33. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper

34. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper Product simplification will allow for new gatekeepers…

35. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper New generations want new gatekeepers millennialdisruptionindex.com

36. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper FinTech investments tripled in 1 year

37. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper They are afraid, are you? shareholder.com/downloads/ONE/JPMC-AR2014-LetterToShareholders.pdf

38. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper New gatekeepers etoro.com

39. New gatekeepers in retirement spending myabaris.com New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper

40. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper Rebundling all methods and channels into one experience adyen.com braintreepayments.com

41. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper Apps integrate payments through stripe, not banks stripe.com

42. New gatekeepers Recommendations “Good is good enough” Ambassadorship The Gatekeeper “Good is good enough” Pay, track, save, loan.

43. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time

44. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness PLACE OnlinePoS Hybrid Omnichannel (digital entering PoS) (all functions go digital too)

45. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time The rise of mobile

46. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time 27% of global transactions on mobile devices adyen.com/home/about-adyen/press-releases/mobile-payments-index-april-2015

47. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time Empowered Self, Utility, Instant Gratification moven.com

48. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time Utility for better driving behaviour axa.com.my/1741/en/useful-links/axa-drive/axa-drive

49. The Traveller Place Utility Empowered self Instant gratiﬁcation New way of working Contextual awareness Real-time KBC wants to keep some offices open at night and during weekends - New way of working

50. The Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy

51. The Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy The sharing economy audiunite.com/se/service/en_unite.html = 200 euro per maand per persoon

52. CrowdfundingThe Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy Civic crowdfunding bron: frankwatching

53. Peer-to-peer lending with better ratesThe Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy lendingclub.com

54. Guess who are partnering with the Lending Club?The Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy lendingclub.com

55. Insurance based on your networkThe Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy friendsurance.com inspeer.me

56. Community for student loans and support commonbond.co The Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy

57. Group buying your insuranceThe Participant Community Gamiﬁcation Collaboration The power of the crowd Sharing economy boughtbymany.com heyguevara.com

58. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring

59. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Internet of Things

60. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Contactless payments This is about data, not money.

61. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Financial management on your wrist

62. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Wearables will change our lifestyle

63. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Credit & insurance through smart device monitoring?

64. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring The future of car insurance?

65. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Data, Data, Data! ﬁnextra.com/news/fullstory.aspx?newsitemid=27366

66. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Smart contracts

67. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring Programmable banks are coming programmableweb.com/api/ﬁdor

68. The Cyborg Internet of Things Wearables Quantiﬁed self Robotics Data Monitoring New industries for insurance bitgo.com coverdrone.com

69. So, back to Digital Transformation

70. Create your own Digital Transformation vision and plan1 Create Digital Leadership2 Innovate in the right place(s)3 Build the Transformation Fleet4 Change the culture5

72. Glass House Package Frog GatekeeperTraveller Participant Cyborg THE WHEEL OF CHANGE Use the wheel to: Spot and understand the dynamics of digital disruption Analyse the impact on your industry and business Create a future vision and write a transformation strategy for your company Build a roadmap that gets you there. Sold in 28 countries

73. @jcaudron It’s no longer about digital, it’s about business Corporate (comm) Strategy Digital Strategy Company Strategy Digital World

74. @jcaudron@jcaudron Digital Transformation Modeling From ... ... to The Business Digital (at the sideline) Digital in the core

75. @jcaudron@jcaudron Digital Transformation Modeling From ... ... to The Business Digital (at the sideline) From ... The Business Digital (at the sideline)

76. @jcaudron@jcaudron Digital Transformation Modeling From ... ... to The Business Digital (at the sideline) Digital in the core From ... The Business Digital (at the sideline) Digital in the core Digital in the core Digital in the core

77. @jcaudron@jcaudron Digital Transformation Modeling From ... ... to The Business Digital (at the sideline) Digital in the core From ... The Business Digital (at the sideline) Digital in the core Digital in the core Digital in the core

78. @jcaudron@jcaudron Digital Transformation TV Radio Print Billboards DM DigitalChannels From ... ... to Sales Marketing&Communication Service&Support HR IT PR&ExternalCommun. R&D&Enterprise2.0 Digital Transformation

80. “If you can't understand the new world of digital, fire yourself. Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the board of directors. If the board has a low digital IQ, the company will have a low digital IQ” George Colony CEO Forrester Research So, where are you? How digital is your company? Digital Leadership Assessment

81. The ideal situation CEOIdeally your CEO is the digital lead CIO COO CbsOSalesMkt

82. Outside world Digital Network Digital Ofﬁcers DIGITAL OFFICE You need Digital Leadership, on all levels CIO COO CbsOSalesMkt CDO Virtual Digital Leadership Team Digital Leads Board of Directors Shareholders CEO

84. The Classics The Converted The Digital The Ruptured • (mentally) older generation that will not go digital soon • no longer open to changes brought by digital • they make you stretch the traditional business as long as possible • slowly getting involved with digital and embracing it. • they expect the digital services to be a translation of the traditional services. • most of the digital investments today are focused here, but this is mainly fixing the basics • still knows the old business models and logic, but that is already adopting a new behaviour and new business models and services. • first adopters of entirely new business models (cfr. Netflix, Uber, …). Invest in this too • raised with new concepts, with no recollection of the old models • use a broad variety of business models and technologies • digital natives, the children that grow up with tablets, apps and everything on- demand. Traditional model Traditional channels Traditional models Digital channels New models Digital channels Everything new Incumbents (you) Challengers (them)

85. Different types of innovation The Factory The Guesthouse The Garage Incremental innovation • Development of ‘need to have’ digitals projects and technology • Working on the existing foundation of the company • Follows general procedures and regulations • Slow Change projects • Small and dedicated project-teams, focused on in-house innovation • Limited independency: they are an (internal) supplier of the factory • Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture Breakthrough innovation • Small dedicated teams focused on innovation • Autonomous operations and decisions • Possibly separate entities • Focused on agile and rapid development and roll- out of ideas in a stand-alone model •These can be grass-root internal initiatives or acquisition of interesting targets

87. @jcaudron Digital Transformation From ... ... toFrom ...

89. @jcaudron 1. The customer always decides

90. @jcaudron 2. All things you do must start from a superior experience

91. @jcaudron 3. From now on, you are an agile and flexible company

92. @jcaudron 4. You live in a world of uncertainty

93. @jcaudron 5. Always play on the offense instead of the defense

94. @jcaudron 6. Don’t be afraid to cannibalize your own business

95. @jcaudron 7. Never, ever, disrespect new or small players

96. @jcaudron Never, ever, disrespect new or small players The customer always decides All things you do must start from a superior experience From now on, you are an agile and ﬂexible company You live in a world of uncertainty Always play on the offense instead of the defense Don’t be afraid to cannibalize your own business How far away is this from YOUR business reality?

97. 7 Key Take-Aways

98. @jcaudron Disruption is real, deal with it! Disruption Modeling Transformation 1. Disruption is happening anyway, often without your knowing…

99. @jcaudron Disruption is real, deal with it! Disruption Modeling Transformation 2. There are methods to understand the impact and plan for the future

100. @jcaudron Disruption is real, deal with it! Disruption Modeling Transformation 3. You can take transformation in your own hands, but you will have to start NOW, in order to stay in the drivers seat!

101. @jcaudron 4. You’ll need digital leadership throughout the entire organization

102. @jcaudron 5. You will need to embrace new culture, policies, rules, methodologies, technology, processes, attitude, …

103. @jcaudron 6. You’re no longer too big to fail …

104. 7. still looking for n°7

105. 7. still looking for n°7 Thank you! jo@Dearmedia.be @jcaudron 00 32 475 43 80 98

106. AllDigitalNow • we are a digital consulting company • founded in 2009 • we work for large European clients • we have a strong vision on the impact of digital and act accordingly • we are advisors, writers, coaches and entrepreneurs

107. AllDigitalNow Our Vision: AllDigitalNow All businesses will have to do things in a digital way because that’s what their clients want. Even non-digital companies will see their business be impacted by those who are digital (clients, competitors, partners, digital challengers, …). There is no way around this, the time of not believing is over.

108. AllDigitalNow We make companies understand the long term impact of digital on their business, what this means for their future and how they can take digital transformation in their own hands. We create business strategy, concepts and plans for online, mobile, social, … We are advisors.We do our job in a bootstrapped way, mixing high-end strategic thinking with pragmatic implementation, through thought leadership and entrepreneurship. “AllDigitalNow”1 2 3

109. Out Now! • www.digitaltransformationbook.com • Available in Dutch and English

110. Functional design, wireframing, RFP, … Social Media set-up, policy, roles, tools, training… Ambassadorship Content Marketing Strategy Architecture Digital Strategy & Concept Development Digital Transformation Modeling Step 1: Impact,Vision and Ideas Step 2:Trendmapping Step 3: Digital Transformation DearMedia, Digital Strategy & Transformation

111. Digital Transformation ——— Dealing with Digital Disruption ——— June 2015 jo@dearmedia.be / @jcaudron / +32 475 43 80 98