The document discusses how the Fourth Industrial Revolution, driven by technologies like the Internet of Things, big data, machine learning and 3D printing, will transform industries and require new approaches to financing. It notes that Industry 4.0 will create new flows of materials, value and information in real-time between suppliers, factories, logistics providers and customers. This will necessitate new forms of payments and financing that are bundled with the services provided by new industry platforms. The document concludes that banks must determine new business models beyond purely financial services and partnerships to help all participants in the new economy prosper.

1. Banking 4.0
Banking in the Fourth Industrial Revolution (Industry 4.0)

2. 2
The Fourth Industrial
Revolution is coming
and very few are ready

3. 3
The Fourth Industrial Revolution is coming
Powered by Internet of Things applied to the industry,
combined with other technologies like BigData, Machine
Learning and 3D printing.
Source: Forschungsunion, acatech, Abschlussbericht Arbeitskreis Industrie 4.0
Industrial
Internet of Things

4. 4
Internet of Things is at the center of the
revolution
“In the next 10 years, the Internet of Things (IoT)
revolution will dramatically alter manufacturing, energy,
agriculture, transportation and other industrial sectors
of the economy which, together, account for nearly
two-thirds of the global gross domestic product (GDP).”
“It will also fundamentally transform how people will
work through new interactions between humans and
machines.”
Source: World Economic Forum,
”Industrial Internet of Things: Unleashing the Potential of Connected Products and Services”

5. 5
Not everything is wearables
Consumer applications have
all the media hype and visibility,
such as fitness monitors and
self-driving cars.
Source: McKinsey, “The Internet of Things:
Mapping the value beyond the hype”
But industrial application of IoT
in B2B use cases can generate
nearly 70 percent of potential
value enabled by IoT.

6. 6
Towards a fully networked society
With an adoption rate five times faster
than electricity and telephony
6 devices for
each
Smartphone
Where everything is connected, not just consumer devices

7. 7
IoT will change the whole society ...
Source: Texas Instruments, ”The Internet of Things: Opportunities & Challenges”

8. 8
… but biggest economic impact will be in
Factories, Smart Cities and Human/Health
Source: McKinsey, “The Internet of Things: Mapping the value beyond the hype”
Impact in 2025, $ trillion

9. 9
Manufacturing has one of the highest
multiplier effects on an economy
Manufacturing is an indispensable element of the innovation
chain, enabling technological innovations to be applied in
goods and services in other sectors like SmartCities or
Health, multiplying their societal and economic benefits.
80% of the EU’s exports are manufactured products.
Manufacturing employs around 30M persons in the EU and
twice as many in support activities such as logistics.
Sources: European Comission, “Factories of the Future: Multi‐annual roadmap for the contractual
PPP under Horizon 2020” and “Factories of the Future: towards competitive EU manufacturing”.
World Economic Forum, “The Future of Manufacturing: Driving Capabilities, Enabling Investments”

10. 10
Industry 4.0
And beyond

11. 11
Industry 4.0 ecosystem
Suppliers
Factory
Logistics Logistics Retailer
Final
product
Customer
Social network
dataExtended Manufacturing Process
Material flow
Product
usage
Smart
products
Adaptive
logistics
Finance
flows in
real-time
Predictive
maintenance
Product
tracking
New
business
models
Platform
An ecosystem of partners
provide advanced services
to all participants.
Smart
Services
All machines
with sensors,
connected to a
cloud platform

12. 12
Trade Logistics 4.0

13. 13
Some challenges in
Industry 4.0
Which may be opportunities for banks

14. 14
Industry 4.0 ecosystem
Suppliers
Factory
Logistics Logistics Retailer
Final
product
Customer
Social network
dataExtended Manufacturing Process
Material flow
Product
usage
Smart
products
Adaptive
logistics
Finance
flows in
real-time
Predictive
maintenance
Product
tracking
New
business
models
Platform
An ecosystem of partners
provide advanced services
to all participants.
Smart
Services
All machines
with sensors,
connected to a
cloud platform

15. 15
A lot of sensors, actuators and extended
communications require a lot of investment
Some companies have already invested in sensors and comms, but
for most SMEs they still have to invest a lot.
Everything is connected to a
shared platform: the factory,
suppliers, logistics providers
and retailers, and also the
customer products.
This allows to have a real-time
holistic view of the
manufacturing process.

16. 16
Risk of lack of integration
If each participant implements its own solution, they are not
integrated and it is difficult to perform global optimization and
provision of services.

17. 17
All entities participating in the value chain
are connected to a common platform
It may not be a traditional “Data Lake”, but instead a virtual
decentralized infrastructure, like the Industrial Data Space.
Or the MIT Enigma.
It aggregates data from all
participants:
● Supports new data value
chains
● Linking providers and data
users
● Supports the development
of new value added data
services.

18. 18
Data Privacy concerns
Data from different companies has to be analyzed in an aggregated
way, but at the same time guaranteeing appropriate data privacy.
“Traditional” cloud providers are not the solution.
In addition, most manufacturing SMEs do not have the skills or
resources for managing these amounts of data.
Who is going to be the
guardian of all that
very sensitive data?

19. 19
Data Privacy is one of the main challenges
Source: Altimeter Group, “Consumer Perceptions of Privacy in the Internet of Things” (2015)
Consumers’ top privacy concerns with IoT are data selling, storage,
access, and the ability to be identified individually.
Q: Rate your level of privacy concerns across each of the following ways companies interact with your data
Age groups

20. 20
But banks are (still) well positioned
Which type of company do you trust most with
securely managing your data on your behalf?
Despite the reputational damage
from the financial crisis, banks
hold a fundamentally trusted
position in society, as the
stewards of assets and
commerce.
While the public gives low ratings
to the industry as a whole on
matters of trust*, their opinions
about the banks they actually
do business with are far more
favorable**.
Sources:
*Edelman, “2016 Edelman Trust Barometer”
**Accenture, “2015 North America Consumer Digital Banking Survey - Banking Shaped by the
Customer”
Bank
Payments
provider
Mobile network
Online retailer
Consumer technologyBroadband internet
Social media

21. 21
Conventional Manufacturing Value Chain
Factory Retailer CustomerSuppliers
$$ $$ $$
Material Material MaterialMaterial
flow
Monetary
value flow
Problems:
● Each participant knows only about the previous entity (its
own supplier) and the next one (its own customer).
● Not all participants know about the “real customer”, the one
who is going to pay for the whole manufacturing chain.

22. 22
New business models for new finance flows
Flow of materials, value and information are different and in
real-time.
They require new ways of payments and financing that will have to
be bundled with the services provided by new ecosystem platforms.
New products and
services offered both
to individual entities
and to the Platform as
a whole

23. 23
Autonomous, pull economy
Highly automated, flexible production and fulfilment networks
Continuous
demand-sensing
Monetary flows

24. 24
Conclusion
The Fourth Industrial Revolution is coming
World 4.0 will radically alter the flows of value among
the participants in the new economy, and will require
new ways of payments and financing.
The challenge for banks is to determine new business
models beyond the purely financial services, and new
partnerships, as the world economy evolves first to an
outcome-based economy and eventually to a
pull-based economy.
“Our mission is to help people and businesses prosper”

25. Nuestra misión es contribuir al progreso de
las personas y de las empresas.
Nuestra cultura se basa en la creencia de
que todo lo que hacemos debe ser
Gracias