Predictions 2017: Pioneering Financial Providers Will Partner With Fintech To Build Ecosystems

Predictions 2017: Pioneering Financial Providers
Will Partner With Fintech To Build Ecosystems
Leading Firms Will Focus On Improving Customer Journeys, While Laggards Get Distracted
By Bright And Shiny Technologies
by Peter Wannemacher, Jacob Morgan, Martha Bennett, Oliwia Berdak, and Jost Hoppermann
November 2, 2016
For EBusiness & Channel Strategy Professionals
forrester.com
Key Takeaways
Leading Financial Providers Will Spend A Lot
More On Digital Business Technology
2017 will see the gap between leaders and
laggards widen as more mature firms dramatically
boost resources for digital business technology or
what some call “foundational digital initiatives” —
in which a company integrates, re-engineers, or
replaces back-end systems to enable future efforts
to win, serve, and retain customers.
The Impact Of PSD2 Will Ripple Across The
Globe, Affecting Regions Very Differently
Many European financial firms will spend much
of 2017 preparing for the second phase of the
European Union’s Directive on Payment Systems
(PSD2). Firms will work to enable access to
their systems for account aggregators and
direct-credit payment initiators and improve
authentication for online payments. Firms outside
Europe will watch closely to gauge the results
of regulatory-driven innovation and more open
access to data.
Financial Firms Will Underinvest In Digital
Products And APIs
Many financial firms have been slow to invest in
designing and developing software-based digital
products. In 2017, a few firms will move ahead of
the pack by focusing on digital products delivered
as application programming interfaces (APIs).
Why Read This Report
A gap is emerging between the financial firms that
are embracing digital business transformation and
those that continue doing things the same old way.
In 2017, this gap will widen significantly as leading
providers experiment with new ways to win,
serve, and retain customers. This report lays out
Forrester’s predictions for how financial services
will change in 2017, driven by new regulations,
evolving customer behavior, and new techniques
for engaging customers and prospects.

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For eBusiness & Channel Strategy Professionals
Predictions 2017: Pioneering Financial Providers Will Partner With
Fintech To Build Ecosystems
Leading Firms Will Focus On Improving Customer Journeys, While Laggards Get Distracted By
Bright And Shiny Technologies
by Peter Wannemacher, Jacob Morgan, Martha Bennett, Oliwia Berdak, and Jost Hoppermann
with Benjamin Ensor, Ellen Carney, Alyson Clarke, Aurelie L’Hostis, Davis Janowski, Brendan Miller,
Zhi Ying Ng, Joana van den Brink-Quintanilha, Xiaofeng Wang, and Michael Chirokas
November 2, 2016
How Financial Services Will Change In 2017
As the businessman and futurist Patrick Dixon once put it, “Take hold of your future or the future
will take hold of you.”1
We believe 2017 will see a further widening of the gap between the firms that
understand how empowered customers and digital technologies are changing financial services and
the firms that don’t get it and continue blundering along in the same old way. Customers will continue
to expect greater convenience, while both new and established competitors will speed up development
cycles and seek to disrupt the industry’s value chains. Forrester has mined its research to outline what
financial services providers and their partners can expect to happen in 2017:
›› Gaps between firms will widen as leaders invest in foundational digital initiatives. A cluster
of financial firms are pulling ahead of their peers by recognizing that they must become digital
businesses. Firms like Axa, Aviva, BBVA, CaixaBank, CIBC, DBS Bank, Discover, Scotiabank, TD
Ameritrade, USAA, Vanguard, and Westpac don’t just offer great digital services today; they are
embedding innovation in their processes and culture, investing in back-end systems, shoring up
their data infrastructure, and starting to build dynamic ecosystems of value that go beyond selling
their own well-worn financial products.2
2017 will see the gap between leaders and laggards widen
further as more sophisticated firms spend on business technology and find new ways to win, serve,
and retain customers.3
›› A few leading firms will organize P&L around the customer. A cluster of pioneering banks and
insurance companies, including American International Group (AIG), Ally Bank, BMO, Citi, Lloyds
Bank, and Royal Bank of Scotland, are creating customer journey teams to coordinate journey
improvements across silos and drive customer obsession. In 2017, a handful of leaders will go
further and move budget and reporting lines from traditional departments to customer segment
or journey owners. For example, more firms will organize around customer journeys — rather than
business units or product teams — as the US providers Vanguard and USAA have recently done.

Predictions 2017: Pioneering Financial Providers Will Partner With Fintech To Build Ecosystems
November 2, 2016
© 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.
Citations@forrester.com or +1 866-367-7378
2
Leading Firms Will Focus On Improving Customer Journeys, While Laggards Get
Distracted By Bright And Shiny Technologies
To succeed, these customer journey or “one customer, one P&L” teams will need to be given real
power inside the organization.4
In 2017, a relatively small group of leading financial services firms
will move in this direction.
›› Pioneering firms will tackle complex customer journeys like insurance claims. Financial
services executives are starting to redesign complex processes like mortgage applications and
insurance claims through customer journey mapping and design thinking. The complexity of these
processes and the legacy systems that support them means that they have remained largely
untouched for decades at many companies. In 2017, leading firms like Lloyds Banking Group
in the UK and Nationwide Mutual Insurance in the US will employ rigorous, customer-obsessed
approaches like future-state journey mapping to experiment, learn, and iterate to make customers’
lives better.5
Customer journey mapping will start to be widely adopted in financial services, much
as Agile development has become commonplace in the industry over the past three to five years.
›› Predictive analytics and personalized advice will become digital priorities. The hype around
personalization — tailoring every customer experience to each individual customer’s unique
wants, needs, and preferences — has always outstripped the reality. Now technology is starting
to catch up. 2017 will see more financial firms use predictive analytics to enable personalized
digital experiences for customers. For example, one US bank plans to implement an entirely new
personalized product recommendations tool for existing customers based on context. The bank’s
digital teams are putting the new recommendation engine — built on top of multiple predictive
analytics tools — into operation now and planning to roll the service out to customers in early 2017.
›› The impact of PSD2 will ripple across the globe. European banks and payments companies will
spend much of 2017 preparing for the second phase of the European Union’s Directive on Payment
Services (PSD2).6
Firms will enable access to their systems for account aggregators and direct-
credit payment initiators and introduce strong authentication for online payments.7
To do so, banks
and other providers will use application programming interfaces (APIs) to meet these needs as they
are forced to innovate to counter the threat from disruptors.8
In turn, this will accelerate the open
banking conversation around the world as executives and regulators outside Europe watch the
effects of PSD2 to gauge the results of regulatory-driven innovation, more open API access, and
the impact of real-time payments.
›› Financial providers will keep building too many mobile apps — unfortunately. Over the past
five years, financial firms worldwide have rolled out a variety of consumer-facing mobile apps to
meet a wide range of customer use cases and purposes. Most now offer too many standalone
apps aimed at a common audience on a single device.9
Since consumers already spend most of
their time on a handful of apps, firms only undermine their efforts at client engagement when they
throw so many individual apps at customers. Instead, firms should offer no more than one app for
each unique audience, rather than one app for each and every need or purpose.10
Unfortunately,
2017 will see financial providers continue to roll out too many mobile apps, with just a few firms
pivoting to a more focused approach.

November 2, 2016
3
›› More firms will launch mobile payment systems. Numerous firms worldwide will introduce new
mobile payment and wallet offerings in 2017, including banks, retailers, handset manufacturers,
and technology giants. Driving adoption and repeat use will prove a major challenge for all of
them.11
The winners are most likely to be firms that already serve millions of consumers in their
mobile moments and can integrate payments into other customer journeys. For example, when
WeChat, China’s dominant mobile messaging app, launched WeChat Payment, it gained over 100
million new payment users in just 15 days. While that growth won’t be repeated, we expect new
payment services from Facebook Messenger and China’s taxi app Didi Chuxing to gain adoption.12
›› Big tech firms will edge further into financial services. Your customers spend most of their time
in just five mobile apps — and yours isn’t one of them.13
In 2017, financial providers will see bits
and pieces of customers’ front-end experiences lost to the big platforms. Platforms like Amazon,
Apple, and Google — whose Alexa, Siri, and Google Now already act as gateways to operating
systems distributed throughout your customers’ lives — will gain some ground with voice user
interface (UI) and customers’ increasing experimentation with virtual assistants. Another group of
tech firms — such as Alibaba, Baidu, Facebook, Tencent, WeChat, WhatsApp, and others — will
continue to push into financial services.14
These firms don’t want to become regulated financial
providers, but 2017 will see them continue to disrupt and reshape retail financial services.
›› Views on blockchain will evolve from irrational exuberance to rational assessment. Given
the rapid pace of innovation in the blockchain ecosystem — comprising startups and established
vendors and enterprises — blockchain technology intended for commercial use will continue to
grow up.15
The steady stream of overhyped headlines and underwhelming rollouts will continue
as firms that are under pressure to show something for their investments launch offerings that
are either limited in scope or are, at best, “blockchain-inspired.”16
While much of the financial
services applications landscape is in serious need of updating, blockchain project participants
will discover that the real issue for most use cases is not technology but market structure and
other nontechnical challenges. These cold realities will usher in an era of rational approaches to
blockchain as more executives get smart about what it really means and what its true potential is.17
›› New regulations will threaten to upend financial advice. Following the lead of regulators in
Australia, the Netherlands, and the UK, regulators in Canada, the European Union, and the US have
all introduced new regulations intended to ensure that investors receive appropriate advice and that
the cost of that advice is transparent.18
Compliance costs, remuneration changes, and the promise
of lower margins, as customers question what value they are receiving for their money, will prompt
some firms to stop offering advice and encourage many financial advisors to retire early.19
The firms
and advisors who remain will need digital platforms that enable them to support more customers
at lower cost. That will give a big boost to automated financial advice.20
Smart firms will realize that
the new batch of regulations is just the tip of the iceberg and plan accordingly.21

November 2, 2016
4
›› More firms will launch robo-advisors — even though many should not. While the hype around
“robo-advice” will subside, more brokerages, banks, and life insurance companies will follow the
lead of Charles Schwab, OCBC Bank, and Vanguard by rolling out their own digital investment
managers, also called robo-advisors.22
For example, Bank of America has already announced
the launch of its own robo-advisor in Q1 2017.23
Some new offerings will be built in-house, some
developed on platforms bought from a growing white-label market, and still others delivered
through partnerships with startups.24
Many of these won’t have a clear strategy, leading to
disillusionment in the second half of 2017 as tight margins, lack of scale, and rising marketing costs
leave many digital investment management offerings years away from profitability.25
›› Consolidation in payments will swell, including one big acquisition. The future of payments is
about experiences and the technology and data that will drive those experiences. As increasing
competition and regulatory mandates drive down margins, established payment firms will look
to acquire new entrants that can help to boost margins, improve outdated technology platforms,
and better meet the demands of merchants and consumers. Companies that directly influence
consumers, such as Affirm, American Express, Discover, Klarna, and PayPal will themselves
become attractive acquisition targets. In 2017, we expect to see a payments giant like American
Express, Discover, or PayPal bought by a larger firm with even bigger ambitions in payments.
›› Startups and established firms will partner to build digital ecosystems. Digital ecosystems of
value threaten traditional, vertically integrated financial firms.26
But they also offer opportunities to
firms that think carefully about the roles they want to play in the ecosystem.27
For example, French
insurer Axa, Australian insurer Suncorp, and German re-insurer Munich Re partner with startup
Trōv to manufacture and guarantee policies that the startup sells.28
US wealth management firm
TD Ameritrade Institutional built its open VEO platform to provide a better advisor experience,
integrating over 100 third-party financial planning, online advice, portfolio management, analytics,
CRM, document management, and other applications.29
The coming year will see rapid growth
in partnerships as established firms strive to stay relevant and startups find that it’s harder to win
millions of customers than to attract venture capital funding.30
›› More firms will employ disciplines like behavioral economics and gamification. Using
psychology and game mechanics to affect people’s actions is not new, but 2017 will see more
financial firms using disciplines like behavioral economics. Firms will design customer experiences
and journeys for individual touchpoints and across multiple touchpoints using techniques and
mechanisms from disciplines like psychology and game design. Many financial providers will follow
the lead of the fintech startups who are disrupting them.31
The CEO of Wealthfront, for example,
boasts that the firm’s success comes in part from using what many call “behavioral finance” to
ensure that its services “trigger emotional responses.”32
Likewise, leaders like BBVA will continue
to use gamification to encourage adoption of digital banking.33
2017 will see far more providers
guided by principles from outside fields as they design new services.

FOr EBusiNEss & CHaNNEl stratEgy PrOFEssiONals
November 2, 2016
© 2016 Forrester research, inc. unauthorized copying or distributing is a violation of copyright law.
5
leading Firms Will Focus On improving Customer Journeys, While laggards get
Distracted By Bright and shiny technologies
› Financial providers will underinvest in digital products. a few leading firms will see the
opportunity to develop new digital products.34
Wells Fargo, for example, has launched an identity
management product, while Fidelity has built a cross-platform document vault for clients and
non-clients alike. Many of these products will be delivered as aPis. For example, Visa released
a product aPi to let card issuers offer
“card control” features to their customers,
enabling them to set spending controls,
receive alerts, and turn their accounts on
and off.35
But although financial services
are entirely intangible, most financial
firms have shown little imagination when
it comes to digital product innovation.
too many firms will continue to offer the
same old financial products through an
expanding set of touchpoints.
› Firms will consider new business models — but take little immediate action. Many financial
services executives say they now realize that in the age of the customer, business as usual is no
longer enough.36
But while executives may know that success requires transformation, their actions
demonstrate little appetite for fundamental reinvention. in 2017, this will begin to change as leading
firms experiment with new revenue streams and new business models like focusing on mass-
affluent clients with subscription-based pricing for a full suite of advice, unlimited transactions, and
personalized alerts. For a few firms, this will mean selling digital products in the form of productized
aPis. Others will explore alternative forms of insurance and financing.
Executives know that success
requires transformation, but
their actions demonstrate
little appetite for fundamental
reinvention. in 2017, this will
begin to change.

November 2, 2016
6
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Endnotes
1
This comes from Dixon’s book Futurewise, originally published in 1998. In addition to being an author, Dixon is the
chairman of the forecasting company and consultancy Global Change. Source: James Dixon, Futurewise: Six Faces of
Global Change, HarperCollins, 1998.
2
With a string of digital innovations since 2008, BBVA has shown how to overcome these obstacles. BBVA’s digital
executives have benefited from a strong vision and mandate from the bank’s CEO and chairman, but such support
isn’t enough by itself. BBVA has continuously adjusted its innovation program, adopting a test-and-learn approach.
The bank’s journey shows that it doesn’t matter where you start; depending on your priorities, skills, and appetite
for change, the initial push could come from technology management or the business. What is important is to get
started and then continue to adjust your strategy. For more information, see the “Case Study: BBVA Takes An Iterative
Approach To Innovation” Forrester report.
3
When executives at banks, brokerages, insurers, credit card companies, and other financial providers use the term
“foundational digital initiatives,” they mean integrating, re-engineering, or even replacing back-end systems that
enable future efforts to win, serve, and retain customers. For example, one of the largest banks in the world spent
four years re-engineering its entire back-end data infrastructure, enabling the digital team to plan ahead for cross-
touchpoint initiatives.

November 2, 2016
7
4
Organizational structure is one of the six levers of the customer-obsessed operating model and is important in driving
behavior. However, it must be complemented by changes in culture, metrics, processes, technology, and talent. For
more information, see the “Customer-Obsessed Organizational Structures” Forrester report.
5
Crucially, the aim of customer-journey mapping initiatives is not only to improve the customer interfaces but also to
redesign the processes and systems that lie behind those interfaces.
6
The aim of PSD2 is to open up the payments market across Europe, making it easier for new companies to enter
existing markets, and for companies of all stripes to innovate. PSD2 forces existing players to share more of their data
in an effort to open up bank account aggregation, eCommerce marketplaces, loyalty programs, digital wallets, and
more.
7
The European Union’s Payment Services Directive 2 (PSD2) heralds a new era of openness for European banks but
also brings with it the threat of far greater competition. This brief considers the state of the legislation and the impact
on financial institutions and examines how digital business strategy executives should respond to prepare for and find
opportunity in PSD2. See the “Brief: Turn PSD2 From A Burden Into A Catalyst” Forrester report.
8
As industry disruptions go, new government regulations come with long lead times, but executives still can choose
shortsighted responses focused solely on regulatory demands. A better response is to use changing regulations —
and other disruptions — as opportunities to advance API strategy and digital business transformation. This reports
uses upcoming regulation for European banks (specifically, PSD2) as a demonstration of how, with good API strategy,
application development and delivery (AD&D) leaders can help their organizations turn disruptions into business
opportunities. See the “APIs Turn Disruptions Into Business Opportunities” Forrester report.
9
For example, on average 46 of the largest retail banks in the world offer a whopping seven different iPhone apps to
their customers. For more information, see the “Banks: You’re Building Too Many Apps” Forrester report.
10
For example, small business clients likely warrant a dedicated app, but standalone apps for budgeting, alerts, and bill
pay will only confuse and frustrate clients. For more information about Forrester’s recommendations for banks that are
building too many mobile apps, see the “Banks: You’re Building Too Many Apps” Forrester report.
11
Payment innovation is a notoriously difficult area to succeed in. The vast majority of new payment systems fail.
Successful retail payment systems share common characteristics. This report explores these characteristics and
how successful systems have overcome the hurdles to success. See the “How To Make New Payment Systems
Successful” Forrester report.
12
We expect Didi Chuxing will launch a mobile payment service in 2017 if it gets a payment license from the Chinese
government. Apple may become its partner for its payments services.
13
Your best customers typically prefer your app over your mobile website but depend on both. But even they spend
far more time in other firms’ apps, and as a result, you own too few of your customers’ mobile moments. Digital
business strategy professionals must pursue an “app+” strategy to maximize their potential to win, serve, and retain
their customers in their mobile moments. This means migrating from serving customers in your siloed branded apps
with your own data to also serving customers wherever they are with shared data. See the “Adopt An App+ Strategy”
Forrester report.
14
Financial services are not a zero-sum game. Established financial providers should not view moves by tech firms into
the industry exclusively as threats; there are also opportunities. For example, executives at some firms have seen
opportunities to build or tap into new financial ecosystems to better serve customers. The Dutch bank ABN AMRO,
for example, now enables peer-to-peer (P2P) payments via WhatsApp, making transactions more convenient for
customers. Source: “ABN AMRO enables payments via WhatsApp in the Netherlands,” ABN AMRO press release,
June 22, 2016 (https://www.abnamro.com/en/newsroom/press-releases/2016/abn-amro-enables-payments-via-
whatsapp-in-the-netherlands.html).

November 2, 2016
8
15
The term “blockchain” has become rather like “cloud” or “big data” — useful shorthand for an overarching technology
concept that means different things to different people. As with cloud and big data, there’s no right or wrong definition.
What matters is that anybody involved in blockchain-related discussions or technology evaluations: 1) has an overall
understanding of the concepts inherent in blockchain technology and 2) makes sure when talking to peers or vendors
that all those involved first arrive at a common understanding of what blockchain means in the context of that specific
discussion or project. If you’ve already formulated your own definition of blockchain, fine. If not, you can check out the
“Q&A: Forrester’s Top Five Questions About Blockchain” Forrester report.
16
In other words, they’re not blockchain deployments at all.
17
Few disagree that industrywide deployments of blockchain are five or — more likely — 10 years away, and hands-on
experience has shown banks that even a successful proof of concept doesn’t automatically translate into a system that
can be deployed. The focus now is on identifying the use cases that are more realistic in terms of timescale and technical
feasibility, as well as getting more deeply into the technology itself in order to assess what needs to be done going
forward. For more information, see the “Don’t Get Confused By The Blockchain Hype In Banking” Forrester report.
18
Although the regulations differ substantially in their details, all the regulations are intended to increase transparency
and ensure that investors receive appropriate advice. Regulations in the Netherlands and the UK already outlaw
financial product commissions, forcing financial advisors to charge clients directly and exposing the true cost of
financial advice to those clients. The European Union’s Markets in Financial Instruments Directive (MiFID 2), which is
due to come into force in January 2018, will have a similar effect throughout the European Union. The United States
Department of Labor’s proposed change to its fiduciary rule will have a similar effect on retirement advice in the US.
Canada’s Client Relationship Model, Phase 2, (CRM2) requires asset management companies to disclose charges for
all securities transactions and deliver annual reports on charges and other compensation.
19
Many firms are still figuring out what they have to do to comply for the Department of Labor’s proposed changes to
the fiduciary rule, commencing in April 2017, so it won’t be until the second half of 2017 that they feel the impact of
the regulation.
20
Digital financial advice platforms deliver free or low-cost investment and other financial guidance to consumers
who are planning for goals such as home ownership, education, and retirement. Startups like FlexScore, Jemstep,
Personal Capital, and SigFig use software to create recommendations specific to the individual. They hope to appeal
to consumers who cannot — or choose not to — get person-to-person advice. Previous generations of online
advice have sputtered. But with consumer confidence in digital advice rising and technology improving, Forrester
predicts that digital financial advice will be a disruptive force in retail financial services. For more information, see the
“Disrupting Finance: Digital Financial Advice” Forrester report.
21
For example, it’s likely that other US regulators will follow the lead of the Department of Labor, perhaps particularly
if the Democratic Party wins the 2016 presidential election. That could see similar regulatory changes affecting sales
of all types of funds and securities to retail customers. These leading firms will begin to experiment with ways to
reposition themselves for a potential future where some revenues based on product commissions diminish or are
choked off entirely by as-yet-unwritten regulations.
22
“Robo-advice” is a popular but unhelpful term because it encompasses two different things: automated investment
management and automated financial advice. Forrester and others in the industry avoid using the term for that reason.
For example, Andy Rachleff, founder and executive chairman of Wealthfront, explains in his blog why Wealthfront
never calls itself a “robo-advisor.” The term “has come to mean any investment service with a web front end.” In other
words, the term “robo-advisor” incorporates both technology assisted advisors and automated investment services.
See the “Disrupting Finance: Digital Investment Managers” Forrester report.
23
Bank of America only recently announced this new digital investment management offering, an online service and
app that will be called Merrill Edge Guided Investing. Source: Penny Crosman, “Bank of America to Build Its Own
Robo Adviser,” American Banker, October 3, 2016 (http://www.americanbanker.com/news/bank-technology/bank-of-
america-to-build-its-own-robo-adviser-1091752-1.html).

November 2, 2016
9
24
These will be presented to customers as “powered by” an existing digital investment manager.
25
The market for digital investment management in some countries is already crowded with numerous startups and
other new entrants. See the “Disrupting Finance: Digital Investment Managers” Forrester report.
26
Empowered customers assemble the solutions to their problems with a collection of instantly available digital
products and services from suppliers, partners, competitors, other customers, and, naturally, digital disruptors.
The biggest transition that digital forces on you is the shift from a linear value chain to the creation of ecosystems
of value. It means re-envisioning your business not as a standalone entity but as part of an ecosystem of suppliers
that customers assemble according to their needs and an ecosystem of collaborating businesses sharing data and
services. See the “The Digital Business Imperative” Forrester report.
27
Acting as lubricants of business activity, APIs are a critical means of realizing digital strategy. The power of APIs is in
the way that they package business assets and data, making them accessible in and outside an organization. See the
“Unlock The Business Value Of Your API Strategy” Forrester report.
28
Trōv packages, prices, and markets its policies, but it partners with underwriters — namely Axa in the UK, Munich
Re in the US, and Suncorp Group in Australia — that provide both financial backing and insurance licenses. See the
“Disrupting Finance: Digital Insurers” Forrester report.
29
TD Ameritrade Institutional launched its Veo platform as a means to create a harmonized, all-in experience and a
360-degree view of the customer for its investment advisors. It’s been busy adding additional service partners to the
platform, including Advent and Salesforce. These integrations include solutions from digital disruptors like Jemstep.
30
Many incumbent firms are starting to partner with digital disruptors to help them attract and serve niche customer
segments or to innovate their proposition. See the “Disruptors Belong In Your Digital Ecosystem” Forrester report.
31
Digital disruptors have swarmed financial services. Incumbents have responded by upgrading their technology stacks
and launching new digital services. Investing in technology as a response to disruption is necessary but not sufficient
and misunderstands the nature of the threat. Read this report to learn what makes disruptors tick and how you can
adopt their disruptive mindset. See the “Brief: What Makes Digital Disruptors Dangerous” Forrester report.
32
In a Bloomberg article, Wealthfront’s CEO, Adam Nash, outlined how his firm hired people from other firms where
they’d demonstrated a talent for using techniques from psychology, behavioral economics, and gamification. Source:
Ben Steverman, “Manipulate Me: The Booming Business in Behavioral Finance,” Bloomberg, April 8, 2014 (http://
www.bloomberg.com/news/articles/2014-04-07/manipulate-me-the-booming-business-in-behavioral-finance).
33
Forrester has written about BBVA’s use of gamification to improve digital experiences for customers — and to boost
the firm’s engagement numbers and KPIs. For more information, see the “Case Study: BBVA Drives Online Banking
Use With Game Mechanics” Forrester report.
34
Forrester defines a digital product as a software-based product, method, or package of services built to offer some
form of utility to customers.
35
Product APIs increase product value by connecting to and expanding the ecosystem. With APIs, products gain value
as part of an integrated ecosystem. See the “Four Ways APIs Are Changing Banking” Forrester report.
36
This realization is hitting executives and other leaders at firms across industries: Customers expect a continuously
evolving digital experience tuned to their needs, and a new business model is required to deliver on these
expectations. “The historical organization chart with lots of processes is a thing of the past,” says GE Chairman and
CEO Jeffrey R. Immelt. “We’ve basically unplugged anything that was annual. The notion is that, in the digital age,
sitting down once a year to do anything is weird; it’s just bizarre.” Forrester believes that firms must go one step
further than just rethinking their planning approach. Success in the age of the customer requires a fundamental reset
of day-to-day operations — it requires a new operating model that aligns to a customer-obsessed approach. For more
information, see the “A Customer-Obsessed Operating Model Demands A Close Partnership With Your CIO” Forrester
report.

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