Management Events' Surveys team interviewed more than 600 decision makers from leading Banks and Insurers in Europe and Southeast Asia to find their key business needs, development projects and solution investments.

1. Executive perspectives on Banking and Insurance
Disrupted

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You can’t protect yourself from disruption, you have to be in it. Be prepared
and make sure you go where the industry is going, you can’t fight back.
Director, Insurance
"

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ONLINE survey
The report is based on the responses of 635 decision
makers of the largest banking and insurance
organizations in Europe and Southeast Asia who were
surveyed as a part of Management Events’ Executive Trend
Survey®. Our latest survey is the 10th in the ongoing series
of studies covering strategic development initiatives and
investment actions of these organizations.
FACE-TO-FACE interviews
To deepen our insights, we interviewed the highest decision
makers face-to-face to discuss further the trends and issues
in the industry.
29%
28%
16%
13%
6%
4%
4%
IT Management
Business Management
Finance Management
Marketing and Sales Management
HR Management
Product Development Management
Other
DECISION MAKERS RESEARCHED

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KEY REPORT TAKEAWAYS
Financial services sector has traditionally been an industry with
high barriers for entry. As globalization and new technologies are
shrinking the world to a smaller entity and creating cracks into
whatever used to be untouchable, also financial services industry
has lost its safe zone and is now competing in a new
environment.
Most of the executives in the financial services sector are positive
about their growth prospects. New product and service
development is strongly perceived as the source for growth.
Simultaneously, digital service models and automation are
showing their effects, as a third of the decision makers state the
employee count will decrease within the next 18 months.
The investment priorities of large banking and insurance
organizations are now in process automation and business
development for the customer. Financial service organizations
attempt to take an outside-in perspective to create products and
services the customers value. Still, many organizations struggle
with customer experience-related issues.
Preparing for disruption and future competition is two-folded.
Incumbents in the industry need to be able to build
organizational structures that enable agile, startup-like operating
model as their disruptive fintech challengers apply. Success also
requires significant attention on customer and user experience,
which is in the core of new industry entrants.
1 2
3 4

5. Financial services sector has traditionally been an industry with high
barriers for entry. As globalization and new technologies are
shrinking the world to a smaller entity and creating cracks into
whatever used to be untouchable, also financial services industry
has lost its safe zone. The rules for competition are changing.
New, agile startups are dropping their easily adoptable services to
the market, putting customers to the center, and building everything
around the newest technologies. To compete, it is not enough for
the incumbents just to react to these sudden disruptions; proactive
approach is the only way to maintain the interest of the customers,
who today are highly aware of their own worth.
Large banking and insurance organizations are now investing in
strengthening their processes through automation, taking the view
from outside in to create products and services their customers
value, and reconsidering their business models to self-disrupt
rather than to be the disrupted.
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UNCHAINING THE INDUSTRY
DISTURBING DISRUPTION
BUSINESS PROCESS AUTOMATION
CUSTOMER EXPERIENCE DEVELOPMENT
PRODUCT AND SERVICE INNOVATION
BUSINESS MODEL INNOVATION
ORGANIZATIONAL RESTRUCTURING
60%
54%
53%
45%
25%
Current strategic development
initiatives in Financial Services

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CRITICAL LEADERSHIP SKILLS
IN FINANCIAL SERVICES TODAY
VISION CASTING
Everything is changing at an unparalleled speed. For organizations to survive and thrive, their leadership must possess the ability to foresee
and have a clear picture of what lies ahead. This vision must be realistic and not too lofty.
ADAPTABILITY
Not only are the changes fast-paced, they’re also happening on multiple fronts. To be able to respond and meet demands in a timely manner,
organizations must remove old restrictions and be more flexible with policies. Innovation requires experimentation, and holding on to
obsolete policies will impede growth.
CHANGE MANAGEMENT
As everything is volatile and requires constant change, leaders must be able to manage the transitions. These are the times when they’ll be
tasked to invest in strategy, operational efficiencies, and in people development.
SOFT SKILLS
Communication and motivation are a must have soft skills. Leaders already possessing a clear vision and in-depth knowledge of the business
should not only be able to articulate ideas and benefits, but also sell them to the stakeholders and the organization.
TECHNOLOGICAL LITERACY
With the speed in which technology grows, leaders can’t afford not to be tech-savvy. From innovation to security,
everything is based on technology.
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2
3
4
5

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INDUSTRY GROWTH
PROSPECTS
GROWTH IN CURRENT MARKETS
WE AIM FOR AGGRESSIVE GROWTH WE AIM FOR MODERATE GROWTH WE FOCUS ON OPERATIONAL
EFFICIENCY AND REDUCING COSTS
NEW PRODUCTS AND SERVICES
GEOGRAPHIC EXPANSION
MERGERS AND ACQUISITIONS, JOINT
VENTURES, STRATEGIC ALLIANCES
63% of banking and
insurance executives are
expecting growth for their
organizations as 37% aims
to achieve profitability
through operational
efficiency and cost
reductions.
A clear majority is focusing
on growth in their current
market. New product
and service development
is strongly perceived as
the source for growth
as M&A, joint ventures
and alliances are given
less weight in growth
strategies.
20% 43% 37%
11%
20%80%
89%

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SHRINKING EMPLOYEE HEADCOUNT
Even though, the
executives in the financial
services sector are
positive about growth,
digital service models and
automation are showing
their effects, as a third of
the decision makers state
the employee count will
decrease within the next
18 months.
The decrease expectation
is especially high in the
Netherlands (74%) but
Denmark and Germany
are showing significant
reductions as well.
Turkey and Sweden are
still expecting to maintain
or increase their employee
headcount.
INCREASE STAY THE SAME DECREASE
24%
42%
33%
AVERAGE EXPECTATIONS
INCREASE
STAY THE SAME
DECREASE
Finland
Sweden
Norway
Denmark
The Netherlands
Germany
Switzerland
Turkey
13%
52%
35%
30%
52%
19%
21 %
43 %
36 %
14%
64%
21%
38%
40%
17%
11%
16%
74%
23%
34%
42%
24%
29%
47%
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9. DROWNING
IN DIGITAL
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Innovation is absolutely paramount in the ever increasing speed of
competition we’re facing. We need to be innovative all the time.
Head of Tactical Asset Allocation, Insurance
"

11. Preparing for disruption and future competition is two-folded.
Incumbents in the industry need to be able to build organizational
structures that enable similar agile, startup-like operating model
as their disruptive fintech challengers apply. The options are to
establish internal startups to develop agile operation methods or
teaming up with existing fintech startups to bring in tech
knowledge and develop new digital capabilities and services fast.
Success also requires significant attention on customer and user
experience which is in the core of new industry entrants.
Customers are not expecting any less from the financial service
organizations than they require from their experience in other
industries today. What matters the most is easiness. That is, easy
access, rapid service, and personalized products.
Technological development is creating new possibilities for better
and faster services and financial services sector is one of the most
hungry one turning them to their benefit. Mobility is soon
yesterday's news, a default, whereas the next development
initiatives will call for extensive exploitation of other technologies,
such as blockchain, artificial intelligence, robotics, and customer
analytics.
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FINTECH
FIGHTING OR FRIENDING
DIGITAL CONCEPTS AND DESIGN
DIGITAL PLATFORMS AND SOLUTIONS
58%
49%
43%
42%
34%
23%
CREATION OF NEW DIGITAL BUSINESS MODELS
LEAN AND AGILE SERVICE DEVELOPMENT
USER EXPERIENCE DESIGN
INTEGRATION OF CROSS-CHANNEL PROCESSES AND DATA
ENGAGING CUSTOMERS AND USERS IN CO-CREATION
CREATION OF A DIGITAL ECOSYSTEM WITH OTHER ORGANIZATIONS
60%
53%
42%
26%
26%
24%
MOBILE PLATFORMS AND APPLICATIONS
DIGITAL ANALYTICS AND CUSTOMER INSIGHT
INTEGRATED OMNI-CHANNEL PLATFORM
DIGITAL IDENTITY MANAGEMENT
PAYMENT AND TRANSACTION SOLUTIONS
DIGITAL COMMERCE PLATFORMS
Current digital priorities in
banking and insurance sector

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We need to constantly evaluate the opportunities created by new technologies,
and Blockchain is one of the most promising ones. Potentially, it will have huge
implications on different areas like banking and finance, logistics, and on the
public sector. However, results may totally differ from what we now believe.
Looking back, hardly anyone predicted the implications of the Internet either.
CTO, Technology, Media, and Telecom
"

13. Mobile solutions and digital services are a must but digitizing the
existing is only a stepping stone to the opportunities waiting ahead.
Artificial intelligence is offering banks and insurance companies a
chance for compete among their disruptors.
The cognitive, self-learning capabilities of machines have opened a
whole new vision of future in terms of customer analysis and risk
assessment with highly advanced data processing, customer service
with virtual assistants, and investment account management with
robo-analysts to name a few.
Artificial Intelligence will have its effect on workforce, processes,
and business models. It will revolutionize both business and society,
financial services sector being one of the frontrunners.
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ACTING ARTIFICIAL
BUT INTELLIGENT

14. TOOLS OF TOMORROW
TECHNOLOGY PRIORITIES NOW AND IN THREE YEARS
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CURRENT PRIORITY PRIORITY IN 3 YEARS
CLOUD SERVICES
32%
3D PRINTING
8%
2%
ADVANCED
SERVICE ROBOTS
10%
6%
AUGMENTED
REALITY
10%
4%
27%
CYBER SECURITY
29%
44%
INTERNET OF
THINGS
23%
18%
MOBILITY
33%
53%
SOCIAL MEDIA
29%
41%
SOFTWARE
ROBOTICS AND
AUTOMATION
OF KNOWLEDGE
WORK
21%
15%
WEARABLE
TECHNOLOGIES
19%
10%
ANALYTICS AND
BIG DATA
50%
61%

15. 50%
of large banking
and insurance
organizations still
have no digital
agenda in place.
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EMBEDDING DIGITAL
INTO THE STRATEGY
WE HAVE A DIGITAL STRATEGY
THAT IS ALIGNED WITH OVERALL
CORPORATE STRATEGY
WE ARE IN THE PROCESS OF
CREATING A DIGITAL STRATEGY
WE DON'T HAVE A
COMPREHENSIVE DIGITAL
STRATEGY
50% 39% 11%

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OWNERSHIP OF DIGITAL INITIATIVES
Currently, digital initiatives
are mainly lead by CEOs
and CIO or CTOs. However,
18% of the banking and
insurance executives state
that they don’t have a
clear ownership for digital
development in their
organization.
CEO OR OTHER TOP
BUSINESS EXECUTIVE
32%
25%
18%
12%
13%
CHIEF INFORMATION OFFICER,
CHIEF TECHNOLOGY OFFICER
OR EQUIVALENT
CHIEF DIGITAL OFFICER
OR EQUIVALENT
CHIEF MARKETING
OFFICER OR EQUIVALENT
OTHER EXECUTIVE
WE DON'T HAVE A CLEAR OWNERSHIP IN
DIGITAL DEVELOPMENT INITIATIVES
18%

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We have to make a very intuitive service from the customer’s point of view.
A service that slides within customers’ everyday lives without them even
noticing it. That requires us to study the customer path, to improve
processes all the time, and most of all, to learn from the experience.
Chief Development Officer, Incurance
"

18. Digital business has changed the playground for customers and
transformed the competition for businesses on customer
experience. Integrating digital tools to your business is not a value,
it is the means to an end, to serve the best way possible. Ensuring
the best customer experience might just be the way to insure your
existence.
Currently, businesses are prioritizing the development of their
analytics capabilities to understand what their customers really
want and how they behave. Mobile services are also high in the
priorities in customer experience development.
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WITH CUSTOMER EXPERIENCE
INSURING EXISTENCE
53%
51%
45%
33%
32%
28%
Key development initiatives in
customer experience management
ANALYTICS FOR CUSTOMER EXPERIENCE OPTIMIZATION
MOBILE APPS AND SOLUTIONS FOR CUSTOMER ENGAGEMENT
CUSTOMER DATA INTEGRATION
CONCEPT AND SERVICE DESIGN
DEPLOYMENT OF NEW CRM PLATFORM
CUSTOMER LIFECYCLE MANAGEMENT

19. CUSTOMER-FOCUSED CULTURE ACROSS THE ORGANIZATION
CLEAR OWNERSHIP IN CUSTOMER EXPERIENCE MANAGEMENT INITIATIVES
CAPABILITIES TO PROVIDE RELEVANT PERSONALIZED CONTENT OR OFFERING
CAPABILITIES TO MANAGE CUSTOMER EXPERIENCE ACROSS CHANNELS
CAPABILITIES TO TURN DATA INTO CUSTOMER INSIGHT
ALIGNED CUSTOMER EXPERIENCE METRICS ACROSS ORGANIZATION
Currently, banking and
insurance executives have
been mainly successful
to create a customer-
focused culture for their
organization. However,
many organizations still
struggle with customer
experience-related issues.
The biggest development
area is in customer
experience metrics,
what to measure, how
to measure it, and how
to turn the data into
valuable insights that can
be utilized across the
organization.
The ability to respond
to the challenge of
omnichannel and
personalization are also
matters that banking and
insurance organizations
have yet not tackled.
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CUSTOMER EXPERIENCE CAPABILITIES
CURRENT STATE OF
IN BANKING AND INSURANCE
EXCELLENT OR GOOD
AVERAGE OR POOR
63%
53%
37%
47%
39% 61%
40% 60%
30% 70%
35% 64%

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FOUR QUESTIONS TO ASK
By Ashley Latham, CIO, Saxo Bank
“DO I NEED TO CHANGE?”
Openness to disruption is key. The very first step is to stop fighting back and accept the need for change. “If you don’t admit that,
then nothing else is going to happen.”
“WHO IS MY CUSTOMER?”
Banks must constantly define and redefine for themselves exactly who it is they serve and wish to serve.
“WHAT DOES MY CUSTOMER NEED?”
This is a question that needs to be asked over and over again. “The answer to that question will keep on changing.”
“WHAT DO I NEED TO GIVE TO MY CUSTOMER?”
The answer to this question also keeps changing, and needs constant re-evaluation. “And if you are willing to take that changing answer
and applying it back, you too can change so that you can be the answer to your question. Then I think that is how you disrupt yourself.”
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FOR YOUR SURVIVAL

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"In order to stay competitive in the
marketplace, you always need to feel a
certain level of discomfort because you
know that there’s another mountain to climb,
another technology to learn, a new way of
doing business.
COO, Banking

22. Management Events brings together the needs of top decision makers and the offerings of solution providers, generating business opportunities for both parties.
The exclusive, invitation-only event concept provides the opportunity to meet the most potential clients in pre-booked face-to-face meetings. The participants of
our events are technologically driven leaders of the largest companies in Europe and Southeast Asia.
Annually, our 160 invitation-only business events gather 20 000 leaders and 2 500 solution providers, generating more than 70 000 face-to-face meetings. To identify
the responsibilities, investments, and projects of the top decision makers, we conduct 35 000 interviews and receive over 10 000 online survey responses each year.
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