Digital business presents a huge opportunity for financial services. But there’s work to do before organisations can capitalise on that opportunity.

1. Digital business presents a huge opportunity for financial services. But there’s
work to do before organisations can capitalise on that opportunity.
Thelegacychallenge
Global industry models are going through a major transformation. The traditional branch
and network distributed model is giving way to platform and services-based models.
Themandate
Drive out incumbent costs —
people, systems, processes — to
compete with new, fintech startups
Digital laggards could see up to
35%ofnetprofiteroded2
While winners may realise a profit upside of
40%ormore2
Culturalchallengeinorganisation
Wealth of data locked away in disparate legacy systems
The 'we’ve always
done it that way'
syndrome
The need for change
to shift the legacy
operating model
Cloud
Cloud provides business
flexibility to respond
quicker and more cost
effectively to market
opportunity
Winners will leverage
cloud platforms for better
shared processing, using
as-a-service delivery models
Integrated,end-to-endbusinessecosystemsdeliveredseamlesslythroughcloud
A study by Skyhigh Networks shows
that the average financial
services firm is using over 1,000
cloud services4
The average employee uses
31 separate cloud apps4
Reducecomplexitybysourcingbestofbreedcomponentsthroughatrustedpartner
More than 20 partners are joining Salesforce’s growing
wealth management ecosystem to extend the product
with applications for portfolio management, prospecting,
data management and more5
Thecustomer
Themandate
Seamlessly improve customer
experience across trust points
Example:Salesforcelaunchesfinancialservicescloud
Focus on
customer-facing
digital needs
and wants
Shifting staff from transactional
processing functions to a new
model of focusing on value
creation for the customer
Mass-service customisation, marking a
revolutionary shift in the relationship
between the customer and service providers
Example: livingservices
Clients expect a unified
customer experience across channels
57%
wouldconsideronline
onlyforallbanking
needs6
wouldseekaunified
customerexperience6
71%
Security,complianceandregulation
39% of senior executives
halted a mission critical
initiative because of
cybersecurity fears7
71% of senior executives
agreed that cybersecurity
risks and threats hinder
digital innovation in
their organisations7
Regulators are driving digital transformation with calls for
automation, transparency, improved compliance, risk reporting
WhereshouldITfocustoassuresecuritywithminimalfriction?
Overriding mandate:
Better serve the customer; assure compliance
and security and strip out costs to focus on
better customer experience.
The way forward:
Fintech's are having the greatest impact where they employ
business models that are platform-based, data
intensive, and capital light.
Partner with a managed services provider to handle
infrastructure, security, network and mobility
Dimension Data uses the power of technology to help financial
services organisations achieve great things in the digital era.
Learn more by visiting
www.accelerateintodigital.com
Sources:
1
https://americansecuritytoday.com/roadmap-digital-value-retail-banking-industry/
2
http://www.mckinsey.com/industries/financial-services/our-insights/strategic-choices-for-banks-in-the-digital-age
3
NTT Data: http://www.slideshare.net/NTTDConsulting/dont-fear-modernizing-your-core-banking-innovation-in-the-digital-age-61089885
4
http://www.cloudcomputing-news.net/news/2015/aug/25/finance-sector-looking-further-cloud-beware-security-risks/
5
https://www.finextra.com/pressarticle/63492/salesforce-launches-financial-services-cloud
6
https://d3fj8d3h19iopa.cloudfront.net/wp-content/uploads/2015/11/Bynd-White-paper-US.pdf
7
https://www.cisco.com/c/m/en_us/offers/sc04/cybersecurity-growth-enabler-report-2016/index.html?keycode=001104395
http://www2.dimensiondata.com/en-US
http://www2.dimensiondata.com/en-US
35%ofbanks’ITbudgets
arespentsimplyon
maintainingtheir
legacycoredeposit
systems3
75%ofbankersdonotfeel
theirprocessescan
adaptquicklyto
change3
Majority of core deposit systems were architected 30+ years ago
4 10out of
of the top retail banks will be displaced by digital
disruption in the next three years.
However, only 27 percent are taking a
proactive approach by disrupting their
own businesses1
financialservices
digitalbusinessand
broughttoyouby
broughttoyouby
Machine learning not only can make us more efficient, it can solve real
problems that we've been dealing with for years and generations.
-BabakHodjat,Co-Founder&ChiefScientist,SentientTechnologies
#AmbitiousThinking