The webinar discusses the shifts in banking towards a digital-first model by 2025, highlighting the impact of digital disruption across various industries. It emphasizes the need for banks to innovate customer experiences by removing friction, leveraging technology, and personalizing services to remain competitive against agile market entrants. Key strategies include adopting an outside-in approach, enhancing omni-channel capabilities, and utilizing data to optimize customer journeys.

1. Backbase Webinar
Banking 2025
Tim Rutten & Barry de Leeuw
19-09-2018

2. Digital Disruption - Who remembers Napster?
1995+
Music
Photography
Video Rental
...
2005+
Print Media
TV / Cable
Travel
Retail
...
2015+
Banking
Insurance
Healthcare
Automotive
Education
Telco
...
2025+
Where do you
want to be?

3. Banking 2025 - Serious Impact - This Decade...
0
100
Market share
Tipping
Point
Time Some Incumbents do
not respond and ultimately fail
Incumbent business
models
New Digital First
business models
Incumbent
business models
are threatened
Bold movers (attackers and
agile incumbents) survive and
rise
A few
incumbents
partially
transform
and/or find
niche markets

4. To 2025From 2015
The Business
Digital First
Business Model
Digital
(on the side)
Banking 2025 - Let’s make it happen!

5. get some inspiration
FROM THE BEST

6. Digital First – The 10x Better Rule
Create a Superior Customer Experience

7. 10x Better – (1) Remove Friction | Pain Points
Pain
points:
• Street hailing
• Fees for booking ahead
• The driver chooses you
• Unknown duration
• No taxi tracking
• Cash payment
required in many
countries
• No customer
service
• Check pickup time
• Check driver’s
rating
• One-click order • See your driver
approaching
• Uber ride is tracked
(information &
security)
• Seamless
payment
• 5-star rating
Seamless Uber UX

8. 10x Better – (2) Smartly Leverage Platform Capabilities
Game Plan
Access to users
App distribution on the AppStore, the
Playstore and soon Facebook Messenger
Driver navigation
Google Maps used to geolocate cars and
users as well as to help drivers navigate
Data and server management
Data storage and management on Amazon
Web services in its early stage
Payment
Google Wallet and Apple Pay are used to
complete transactions

9. Game Plan = Solve Problems + Leverage Platforms
10x Better
Digital First Platform
Legacy Legacy FinTech Google PSD2 API
Get the Job done
Frictionless, Fast
Orchestrate
The Customer
Journey
API Eco-System

10. Serious Challenge - Crossing the Chasm!
0
100
Market share
Time
Incumbent business
models
New Digital First
business models
Crossing
the
Chasm Leader
25% reduction

11. Paradigm Shift = ”Customer First” | Outside-In
Starts
Inside-Out
Classic Approach
Branch
Legacy Apps
Network
UX
Data
APIs
Legacy
Network
Customer First Technology
Web
Mobile
Crossing the Chasm
Outside-In
Approach

12. Identify
the problems and context
Design
the experience
Engineer
your platforms, processes, and
people
Analyze
results to monitor performance
and optimize outcomes
Paradigm Shift = ”Think Big, Act Small”
Minimum
Viable
Product

13. Focus on the Customer journey. Transform Pain
Points to Seamless Flows.
Onboarding
Aggregated
Overview
Activating a Credit
Card

14. Problem #1 : Becoming a new Customer at a Bank
Pain points: • Filling out lengthy forms
• Uploading official documentation
• Going physically to a branch
• Talking to a representative
• Continuing the
process later
• No customer
service
• Conversational dialogue
• Hop between channels
• Facial Recognition and
Smart Biometrics
• OCR-based Document
Scanning & Validation
• Digital signing of T&C’sSolution:

15. Problem #2 : Getting Aggregated Insight
• No real insight in my financial life
• PFM should be across all my
products
• Using multiple applications
for doing my daily finances
• Impossible to compare
costs / rates
• No customer
service
Pain points:
Solution: • My Financial Life
dashboard with all
products
• Give consent directly
through FIs mobile
application
• Get personalised advice
and offers on all your
products
• Chatbot-assisted
onboarding journey for
adding accounts

16. Problem #3 : International Travel & Expenses
• Doing my expenses during a
business trip is a hassle
• I need to go through different apps
/ experiences in my daily life
• No capability to truly
personalise my experience of
daily banking
Pain points:
Solution: • Introducing Actions to
setup personalised
Recipes
• Pre-defined Action
Recipes for instant
setup
• Overview of all my
Actions to easily toggle
on/of
• Digital Services Hub
from which any service
can be chosen

17. Problem #4 : Activating a new Credit Card
• New credit card arrives by mail
• Dial by phone to activate
• Pre-set PIN code that I can’t
change
• No way to manage my credit
card in my mobile app
Pain points:
Solution: • Simply activate card
from your mobile app
• Choose your own
PIN-code directly
• Full Cards Management
directly in your mobile
app
• Activate using the
physical code

18. Crossing the Chasm
Digital First Platform

19. Value Driver #1 – From Channel Islands to Omni-Channel
Digital Transformation
Branch Internet Mobile
Screen design,
Workflows,
content
Screen design,
Workflows,
content
Screen design,
Workflows,
content
Onboarding
Branch
Internet
Mobile
Credit
Application
Credit Card
Application
Channel | Silo Legacy
Internet
Omni-Channel Dialogs
Screen design, Workflows, Content
...
Omni-Channel Fabric
Mortgages
Onboarding
AccountOpening
Loans
...
Branch
Internet
Mobile
Branch
Internet
Mobile
Mobile Branch

20. Ready to Go
Accelerators
Monolithic
Applications
Decoupled
Layers
Problem
Value Driver #2 – From Monoliths to Agile building blocks
Digital Transformation
Lego Style
Building Block
Architecture

21. Value Driver #3 – From Friction to Seamless Processes
Digital Transformation
100
35
Customer leakage
Indexed to 100
-50%
100
35
Processing costs
Indexed to 100
-65% 24
9
N. of steps required manual
intervention
-63%
2-6 days
10-15
minutes
Time to open
account
-99%

22. Value Driver #4 – From Mass to Smart Banking
Companies produce in mass and sell an
identical product to all their customers
Companies offer tailored products and Customization
possibilities to each of their Customer, creating an
intimate and long-lasting experience.
Hyper PersonalizationOne-Size-Fits- All
Digital Transformation

23. Omni
Banking
Agile
Banking
Seamless
Banking
Smart
Banking
Digital First
TRANSFORMATION
SUPERIOR CUSTOMER VALUE
Digital First Platform

24. BACKBASE : Two Speed Architecture
Existing Systems
Digital First
Banking
Platform
Customer Employee
10x Better
Customer experience
Seamless
Customer Journey

25. Studio
Experience
Manager
Omni-Channel
Enterprise Catalog
Re-use across
all Touchpoints
Backbase - Digital Banking Platform
Design
System
Customer Experience Services SDK + API
Digital Banking Services SDK + API
IAM & Entitlements Management SDK + API
Process Digitization SDK + API
Empower
Customers
Empower
Business
Teams
Empower
Agile Dev
Teams
Retail Banking SME Banking Corporate Banking Mobile AppsWealth Banking
FinTech MarketplaceExisting Systems

26. Digital Banking Services
Customer Experience Services
Value Driver : Re-Usable E2E Omni-Channel Capabilities
Widget Collections
My Money Smart Alerts Activity
IAM + Entitlements
Process Digitization

27. Time to Market Flexibility
Build
Capability
(Native)
Widget
Design System
SDK (Web / Mobile)
SDK (Services SDK)
Capability
Extend
Capability
(Native)
Widget
Extension(s)
UI Component(s)
Extension(s)
Capability
Adopt
Capability
(Native)
Widget
Capability
Capability
Capability
Value Driver : Leverage Adopt – Extend - Build Strategy

28. COMMITMENT : Deliver More “Speed” and “Flexibility”
SPEED
Adopt Accelerators
FLEXIBILITY
Extend + Build
End-2-End Capabilities Agile Development

29. Crossing the Chasm
Execution!

30. To DIGITAL First
From DIGITAL on the Side
The CONVERTED
Traditional models
Digital channels
The CLASSICS
Traditional models
Traditional channels
The RUPTURED
Everything new
The DIGITAL
New models
Digital channels

31. Scan
innovations
Digital First : North Star Vision / Strategy
Determine
impact
North star
vision &
strategy
Build
roadmap
Install
digital
leadership
Build digital
organization
& culture
DIGITAL strategy = BUSINESS strategy

32. Omni
Banking
Agile
Banking
Seamless
Banking
Smart
Banking
Digital First
TRANSFORMATION
SUPERIOR CUSTOMER VALUE
Digital First Platform

33. Game Plan 1
Digital Front-End
Game Plan 3
Aggregator
Game Plan 4
Transform
the Bank
Game Plan 2
Digital Bank
Digital Transformation : Business Model Agility
Core Systems
Lean Core
FinTech Providers
FinTech Providers
FinTech Providers
Core Systems
FinTech Providers
FinTech Providers
Digital Banking Interface
Built-for-Digital Bank
Lean Value Aggregator
Customer Centric
Financial Services

34. Digital
Execution

35. Q&A

36. Q&A
https://connect.backbase.com

37. Thank You!