The document discusses the disruption in traditional banking due to the rise of digital banking and innovative technologies like big data and cloud computing. It highlights examples of banks such as Fidor and Barclays that are leveraging cloud services and community engagement to innovate and maintain competitiveness. Emphasizing the urgency for incumbents to adapt, it warns that failure to embrace these changes can lead to obsolescence.

1. Peter B. Lange
Executive IT-Architect
The tools and processes to innovate, develop
and disrupt with speed

2. Disruption is under way
“Silicon Valley is coming. There are hundreds of startups with a lot of brains
and money working on various alternatives to traditional banking.”
Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co
“Consumers around the world are quickly adopting digital banking.
Incumbents only have a short period to adjust to this new reality or risk
becoming obsolete.”
Henk Broeders and Somesh Khanna, McKinsey

3. Disrupters’ tool: Big Data and Cognitive Computing
3
Volume
Terabytes to
exabytes of
existing data
to process
Velocity
Streaming data,
milliseconds to
seconds to
respond
Variety
Structured,
unstructured,
text and
multimedia
Veracity
Uncertainty from
inconsistency,
ambiguities, etc.
“Next Best Action” based on Cognition

4. Success by natural selection – or by management decision?
4

5. A culture of innovation : Reach out!
5

6. 6
Source : http://www.industrialprintblog.com/blog/fast-fail-fail-often-and-fail-cheap

7. Minimum Viable Product
7
Source: Bandwatch, https://www.brandwatch.com/2014/08/modern-development-mvps-dev-blog/

8. Disrupters’ tool: Cloud – Pay as you use
8
• Fidor2 is a “cloud native” bank
built on a cloud ecosystem of
financial product providers
• The bank built it’s own API
centric core bank platform
• Social media is used
exclusively for acquisition,
retention, cross sell, R&D
• Fidor has a community of
300k+ users and 65k+
customers (Aug 2014)
• IT cost per user is $15US,
average CpC is $32US (Aug
2014)
• Barclays1 “Pingit” cloud
based mobile payment
platform and service
launched in seven months
• A private cloud helps Pingit
deploy features 12x faster
• Pingit puts Barclays 2
years ahead of other UK
bank cashless capabilities
with 2.5M downloads and a
rich set of features and
functions for consumers,
small business and
corporate clients
• Crédit Agricole3 created a
platform that allows 3rd
parties to co-create apps
with CA customers.
• Customers that want to use
the apps are charged $1 a
month to secure their data.
• There are 20+ apps and
the majority of fees go to
the developers.
• Customers are getting the
latest technology and the
bank is tapping into open
innovation.

9. 9
Thank You
Peter B. Lange, Executive IT-Architect
E-mail: petlan@dk.ibm.com
Twitter: @pblange1