Banks won’t succeed if they don’t put the desires of their customers above all else. The current state of the banking industry falls short of expectations for both banks and their customers, yet the market has become increasingly competitive. Whilst the reasons for this vary, falling behind will most likely lead to failure. Staying relevant is about so much more than just bringing nice interfaces to the end customer. An integrated approach is vital, one that spans the entire user experience and a host of back-end systems and procedures. This is about bringing everything together to create a smart framework that connects all the parts of the bank to optimize the customer experience. That framework is Customer OS and its four pillars are open banking, modular banking, omni-channel banking and smart banking. An open API strategy and the clever use of data will drive the open and modular banking components. Segmented client experiences across all channels and embracing new technologies will power omni-channel and smart banking.

1. CUSTOMER OS

2. Copies of the slides will be shared afterwards
Twitter: #Backbase | @Backbase
Ask Questions via the Q&A panel
AGENDA

3. Lets explore some
Key Trends

5. GAFAnomics : The Rise of Digital Platforms
Digital Platforms
Tech company
MARCH 10, 2000
Microsoft
$507B
Cisco
$452
GE
$432
Intel
$402
Vodafone
$371
Market cap
rank: 1
2
3
4
5
AUG. 1, 2006
Exxon
$413B
GE
$336
Microsoft
$245
Gazprom
$244
Citigroup
$240
AUG. 1, 2011
Exxon
$392B
Apple
$368
PetroChina
$298
ICBC
$240
Shell
$229
AUG. 1, 2016
Apple
$571B
Alphabet (Google)
$540
Microsoft
$441
Amazon
$364
Facebook
$357
Largest Companies in the World – Market Capitalization

7. GAFA : The Rise of Digital Platforms
Digital Platforms
Billion USD Nov 2017
Apple Alphabet
(Google)
Microsoft Amazon Facebook Tencent Alibaba
873.6
713.8
635.6
544.4 520.1 510.8 474.1

8. Software is Eating the WorldMarc Andreessen – Founder Netscape (silicon valley)

9. Platform Business – Do a 10x Better Job
Software eats the World
The social journey
“Carole wants to organize a party and invite 200 friends”
A whole day
Before, she had to call each of
her friends for 2 minutes
30 minutes
With Facebook, she creates an
event and invites 200 of her
friends.

10. Platform Business – Do a 10x Better Job
Software eats the World
The purchase & delivery journey
“Ben really wants to watch a very specific Hong Kong movie
called “The One-armed Boxer”
48 hours to 1 week
He had to go to a specialized video store with
a high probability that the seller wouldn’t have
it in stock, then wait for the product to be
shipped to the store, come back, and buy it.
1 minute
If the film is available on Amazon Instant
Video, he just has to type the name and
begin watching.

11. Platform Business – Mass Individualization
Software eats the World
Every smartphone is unique two minutes after its first boot.
We are living in the age of mass individualization. No two
people get the same Google search result, see the same
products on amazon.com, have the same Facebook feed
or iTunes catalogue.

12. Platform Business – At Zero Marginal Cost
Software eats the World
Mass Individual
1900 TODAY
Consumption lowered prizes and opened
massive new Markets to people who
wanted goods but couldn’t afford it.
ZERO MARGINAL COST of customization
makes possible the production of
individual services at the same low price
points as if it was mass produced.

13. Platform Business – Aggregate | Tapping excess Capacity
1,400,000
365,000/year
$0/room 0
700,000
24,300/year
$210,000/room
(2015) (2014)
Number of rooms
Room opening per year
Cost per room opening
Software eats the World

14. Platform Business – Global Roll-out at Low Cost
Software eats the World
Digital economyBrick & Mortar economy

15. Platform Business – Make it Super Smart (AI)
Software eats the World

16. Platform Players : Building a new OS…
Superior
Customer
value
Job to
be Done
Software
Platform
Start with the customer value you are going to create.
Create Customer Journey’s + Leverage Platform Capabilities

17. CUSTOMER OS

18. Customer OS = For Important aspects of Everyday Life
Software eats the World

19. Customer OS – Expanding to every Aspect of Life
Software eats the World
Be healthy Be entertained Consume Pay Communicate
Live better
Move faster
Google
Calico
Apple
Healthkit
Marketplace
Google
Youtube
Google
Play
Google
Wallet
Google
Hangout
Google
Car
Apple
Beats Streaming
Apple
iTunes
Apple
Pay
Apple
iMessage
Apple
Homekit
Amazon
Twitch
Amazon.com Amazon
Payments
Amazon
Cloud Drive
Amazon
fulfillment

20. Raising the Bar?

21. Competition?

23. Just do it

24. Mission – Together we Transform our Industry
Digital Transformation
The Battle Is For The Customer Interface
Posted Mar 3, 2015 by Tom Goodwin (@tomfgoodwin)
WE LIFE IN A TIME OF SCARCE ATTENTION AND ABUNDANT CONNECTIVITY,
SMARTPHONES ARE OUR PRIMARY ACCESS POINT TO EVERYTHING
TIME TO MASTER THE
INTERFACE LAYER

25. customers
don’t care if
companies
don’t care Products
The stuff that is
meaningful to people
Very Simple Rule

26. Closing the GAP – Seamless Journey Design
Digital Platforms
Pain
points:
• Street hailing
• Fees for booking ahead
• The driver choses 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

27. Closing the GAP – Leveraging Digital Platform Capabilities
Digital Platforms
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

28. Our Inspiration – The Customer OS Blueprint
Digital Platforms
The Customer OS
Get the Job done
Frictionless, Fast,
Delightful
Legacy Legacy FinTech Google PSD2 API
Platform
to Orchestrate
Customer Journeys
API Eco-System

29. Our Inspiration – The Customer OS for Banking
Digital Platforms
The Customer OS
Get the Job done
Frictionless, Fast
Legacy Legacy FinTech Google PSD2 API
Orchestrate
The Customer
Journey
API Eco-System

30. CUSTOMER OS
Banking | Insurance

31. BACKBASE : The Customer OS for FS
Start with the customer value you are going to create.
Create Customer Journey’s + Leverage Platform Capabilities
Superior
Customer
value
Journey
Design
Digital
Platform

32. Impact #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

33. Ready to Go
Accelerators
Monolithic
Applications
Decoupled
Layers
Problem
Impact #2 – From Monoliths to Modular Architecture
Digital Transformation
Lego Style
Building Block
Architecture

34. Impact #3 – From Closed to Open Banking
Closed Banking
• Assets ownership
• Localized work
• Mass production
• Proprietary value
• Scarcity control
Open Banking
• Connections access
• Distributed work
• Unit production
• Shared value
• Abundance management
Digital Transformation

35. Impact #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.
Smart PersonalizationMass Production
Digital Transformation

36. BACKBASE – 4 Value Drivers of the Customer OS
The Customer OS
Omni-Channel
Agile
Smart
Open
Digital Transformation
= +

37. Omni
Banking
Agile
Banking
Open
Banking
Smart
Banking
BUSINESS
TRANSFORMATION
SUPERIOR CUSTOMER VALUE
THE CUSTOMER OS
Value Drivers

38. the foundation for seamless banking experiences
o Seamless Journeys
o Frictionless & Fast
o Open | API Driven
o Agile for the future
CUSTOMER OS

39. Customer OS : What is it?
An OS is a Foundation for a great experience
iOS + App Store
Baseline Solutions Browser Mail Music Messages Phone
iPhone X
Operating System
Added Value
Device
Basics you need
to get started
The really cool
stuff

40. Customer OS : What is it?
Every feature is like an “app” you build on your customer OS
All the basics out
of the box
Accounts
Trans-
actions
Payments Alerts Maps
Financial Institution
Operating System
Added Value
CUSTOMER OS
Business
Killer
Feature
Killer
Feature
Killer
Feature
Killer
Feature
Killer
Feature
Spend majority of
your effort on the
“needle movers”
Baseline Solutions

41. Customer OS : Create Seamless Banking Experiences
Two Speed Architecture
Existing Systems
CUSTOMER OS
Customer Employee Any Device| Any User
Customer
Experience
Orchestration

42. BACKBASE : The Customer OS for Banking
User Experience Management
Digital Banking Capabilities
Identity & Access Management | Entitlements
Process Digitization | Forms
Cloud Deployment
CUSTOMER OS
Financial
insight
Front-Office
Empowerment
Digital
Sales
Real-Time
Support
Tailored
Advice

43. Retail Banking: Message Center

45. BACKBASE : Combine Best of Both Worlds
BACKBASE
Platform
BUILDBUY
Packaged Application Custom Code
Flexibility to CustomizeFaster / Industrialized
Out of the Box
Application,
No Custom.
Application
with Limited
Customization
Platform +
Application Accelerators
+ Freedom for Custom Dev
Platform +
Custom Dev
Custom App
Development

46. Thank You!