Traditional banking is facing its biggest challenge in over a generation due to factors like increased regulation, public distrust, and new digital competitors. A new tipping point has been reached where digital will play a pivotal role. To create value going forward, banks need to focus on building customer relationships and engagement through digital offerings. Younger customers especially expect banking to be available through mobile and online channels, so banks must enhance their digital capabilities to attract these customers and remain relevant in the future.
INFOGRAPHIC: Smart contracts between hype and realityCapgemini
Smart contracts have the potential to significantly impact the financial services industry by reducing costs and increasing efficiency. A smart contract is a computer program stored on a blockchain that automatically executes transactions when predefined conditions are met. Key benefits include lower administration costs through automation, reduced settlement times, and increased transparency and trust. However, challenges remain around privacy, scalability, regulatory issues, and developing talent with smart contract skills. As the technology matures over the next few years, mainstream adoption by financial firms is expected to begin in 2020.
Internet-Based Products in Islamic Commercial Banks in IndonesiaYuli Andriansyah
Paper presented at The 2015 International Congress on Economics, Social Sciences and Information Management
(ICESSIM 2015), Sheraton Bali Kuta Resort, March 28-29, 2015.
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
The Covid-19 pandemic necessitated the payments industry undergo a facelift, sparked by novel approaches from new-age players, fostered by industry consolidation, and customers’ demand for end-to-end experience. Crossing the threshold, the industry is entering a new era – Payments 4.X, where payments are embedded and invisible, and an enabling function to provide frictionless customer experience. As customers make a permanent shift to next-gen payment methods, Digital IDs are critical for a seamless payment experience. The B2B payments segment is witnessing rapid digitization. BigTechs, PayTechs, and industry newcomers are ready to jump in with newfangled solutions to help underserved small to medium-sized businesses (SMBs).
As incumbents struggle with profits, new-age firms are forging ahead to take the lead in the Payments 4.X era by riding the success of non-card products and services. The new era demands collaboration, platformification, and firms can unleash full market potential only by embracing API-based business models and open ecosystems. Data prowess and enhanced payment processing capabilities are inevitable to thrive ahead. The clock is ticking for banks and traditional payments firms because the competitive advantage is not guaranteed forever. As industry players seek economies of scale, consolidations loom, and non-banks explore new territories to threaten incumbents’ market share. While all these 2022 trends are at play, central bank digital currency (CBDC) is emerging globally and might open a new chapter in the current payments landscape.
The journey from open banking to open finance+. The evolution of open banking based on API as of now and where it could go from here. Risks and opportunities for market participants.
Creating an Omnichannel Customer ExperienceCSI Solutions
Customer expectations of banks increases every day. Omnichannel banking gives the bank an opportunity to meet the customer demands and deliver a seamless customer experience. This allows the bank to build long-term, loyal and profitable relationships. Learn what the industry trends are for Omnichannel banking and where the banking industry is going with Omnichannel 2.0.
Digital currencies like Bitcoin have grown significantly since being created in 2008. Bitcoin aims to provide an alternative payment system that is instantaneous, safe, and avoids high transaction fees. While over $3 billion worth of Bitcoins are now in circulation and many retailers accept Bitcoin, its future is still uncertain. Bitcoin offers benefits like lower costs but also poses risks due to its volatility. Governments and regulators are concerned about issues like consumer protection and how to apply tax rules to digital currencies. As more businesses and people adopt Bitcoin, it will be important to address these challenges to help digital currencies develop in a responsible way.
Capgemini reports on the major 2017 trends in the payments industry which revolve around three core areas of payment instruments, regulatory and industry initiatives, and key stakeholder strategies. Currently, the global payments industry is undergoing a paradigm shift with an influx of technology, demographic, and regulatory dynamics. While the customer facing part of the value chain continues to witness high levels of innovation, service providers are still grappling with back-end infrastructure enhancements. Trends such as new opportunities in the payments industry in terms of adoption of Open Application Programming Interfaces (APIs), growth in digital payments, innovation in cross-border payments, and challenges from the entry of alternative service providers are impacting the industry in terms of fostering competition, nurturing innovation, and enhancing process and system-related efficiencies.
INFOGRAPHIC: Smart contracts between hype and realityCapgemini
Smart contracts have the potential to significantly impact the financial services industry by reducing costs and increasing efficiency. A smart contract is a computer program stored on a blockchain that automatically executes transactions when predefined conditions are met. Key benefits include lower administration costs through automation, reduced settlement times, and increased transparency and trust. However, challenges remain around privacy, scalability, regulatory issues, and developing talent with smart contract skills. As the technology matures over the next few years, mainstream adoption by financial firms is expected to begin in 2020.
Internet-Based Products in Islamic Commercial Banks in IndonesiaYuli Andriansyah
Paper presented at The 2015 International Congress on Economics, Social Sciences and Information Management
(ICESSIM 2015), Sheraton Bali Kuta Resort, March 28-29, 2015.
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
The Covid-19 pandemic necessitated the payments industry undergo a facelift, sparked by novel approaches from new-age players, fostered by industry consolidation, and customers’ demand for end-to-end experience. Crossing the threshold, the industry is entering a new era – Payments 4.X, where payments are embedded and invisible, and an enabling function to provide frictionless customer experience. As customers make a permanent shift to next-gen payment methods, Digital IDs are critical for a seamless payment experience. The B2B payments segment is witnessing rapid digitization. BigTechs, PayTechs, and industry newcomers are ready to jump in with newfangled solutions to help underserved small to medium-sized businesses (SMBs).
As incumbents struggle with profits, new-age firms are forging ahead to take the lead in the Payments 4.X era by riding the success of non-card products and services. The new era demands collaboration, platformification, and firms can unleash full market potential only by embracing API-based business models and open ecosystems. Data prowess and enhanced payment processing capabilities are inevitable to thrive ahead. The clock is ticking for banks and traditional payments firms because the competitive advantage is not guaranteed forever. As industry players seek economies of scale, consolidations loom, and non-banks explore new territories to threaten incumbents’ market share. While all these 2022 trends are at play, central bank digital currency (CBDC) is emerging globally and might open a new chapter in the current payments landscape.
The journey from open banking to open finance+. The evolution of open banking based on API as of now and where it could go from here. Risks and opportunities for market participants.
Creating an Omnichannel Customer ExperienceCSI Solutions
Customer expectations of banks increases every day. Omnichannel banking gives the bank an opportunity to meet the customer demands and deliver a seamless customer experience. This allows the bank to build long-term, loyal and profitable relationships. Learn what the industry trends are for Omnichannel banking and where the banking industry is going with Omnichannel 2.0.
Digital currencies like Bitcoin have grown significantly since being created in 2008. Bitcoin aims to provide an alternative payment system that is instantaneous, safe, and avoids high transaction fees. While over $3 billion worth of Bitcoins are now in circulation and many retailers accept Bitcoin, its future is still uncertain. Bitcoin offers benefits like lower costs but also poses risks due to its volatility. Governments and regulators are concerned about issues like consumer protection and how to apply tax rules to digital currencies. As more businesses and people adopt Bitcoin, it will be important to address these challenges to help digital currencies develop in a responsible way.
Capgemini reports on the major 2017 trends in the payments industry which revolve around three core areas of payment instruments, regulatory and industry initiatives, and key stakeholder strategies. Currently, the global payments industry is undergoing a paradigm shift with an influx of technology, demographic, and regulatory dynamics. While the customer facing part of the value chain continues to witness high levels of innovation, service providers are still grappling with back-end infrastructure enhancements. Trends such as new opportunities in the payments industry in terms of adoption of Open Application Programming Interfaces (APIs), growth in digital payments, innovation in cross-border payments, and challenges from the entry of alternative service providers are impacting the industry in terms of fostering competition, nurturing innovation, and enhancing process and system-related efficiencies.
Durbin + Debit: The Devil\'s in the DetailsJohnDStevens
The document discusses the changes to debit card fees and regulations that went into effect in October 2011 due to the Durbin Amendment. It outlines several questions merchants should ask their processors to ensure they are receiving the lower rates under the new regulations. Specifically, merchants need to verify they don't need to make any changes, see the savings clearly displayed in their reporting, and confirm discount pricing models are applying the new lower debit card rates. Transactions most likely to be affected are recurring and subscription-based models that rely heavily on debit card usage.
This document discusses open banking and its implications for Suryoday Small Finance Bank. It begins with an overview of open banking, including how it creates an open ecosystem compared to traditional closed systems. It then covers the key drivers of open banking such as regulations, emerging technologies, competition, and consumer demand. Regulatory timelines for open banking in various regions are provided. The document discusses how banks can take different approaches to open banking, and what opportunities it provides for Suryoday, including providing invoices and payments services for small businesses. It concludes that Suryoday is well positioned to become an open bank due to its existing API-based systems and platform approach.
Are you ready to harness the power of big data and turn your data streams into real revenue opportunities? Introducing CSI IQ – a suite of enhancements and ancillary solutions that are fully integrated into NuPoint® core processing solution. From greater search and data view functionality to reimagined mobility and world-class business analytics capabilities, CSI IQ provides your financial institution with the tools it needs to be competitive in the market place and meet evolving consumer demands.
Traditional Banks, Credit Unions Compete Against Digital-Only BanksFlavia_McCain
The entire banking industry continues to shift to digital channels. This poses more threats to the dominant traditional banks and credit unions. As technology improves, banks providers expect a new breed of solutions that beat the conventional model through innovative products and services to suit the liking of digitally-savvy consumers.
Learn about our powerful Construction Viz Project Tracking app available for Microsoft 365 and SharePoint. Project Tracker combines all your critical project information into a single interactive dashboard so you can quickly find and resolve potential issues, report on project status, and monitor the schedule and budget.
Read more about Project Tracker along with our complete suite of Project Management Apps at https://constructionviz.com/apps/
MEDICI’s new ‘Open Banking’ report is a detailed analysis of the Open Banking landscape. Read about the evolution of Open Banking, the regulatory landscape, critical factors affecting the implementation of Open Banking, partnerships, market dynamics, and more!
This analysis provides an overview of the top trends in the commercial banking sector as they shift to technology high gear to boost client efficiency and battle a volatile, uncertain, competitive, and evolving landscape.
First, it was retail banking. Now, advanced technology is shifting to – and disrupting − the commercial banking space. Many commercial banks, known for paperwork, red tape, and branch dependency, were unprepared to support clients during their post-COVID-19 ramp-up. But now, the digital pivot to new mindsets, partnerships, and processes is in overdrive.
As commercial banks grapple with competition from FinTechs, BigTechs, and alternative lenders, their inability
to fulfill SME demands and pandemic after-shocks necessitates transformative process changes and a move
to experiential, sustainable, and inclusive banking models. We expect banks to strive to meet the demands
of corporate clients and SMEs by digitally transforming critical workflows and improving client experience.
Additionally, incremental process improvements in the middle and back-office that leverage intelligent
automation will keep the competition at bay because engaged clients are loyal.
Adopting newer methods to mine data and moving to as-a-Service models will prepare commercial banks
to flexibly respond to newcomers and find ways to co-exist through effective collaboration. The time has come for commercial banks to put transformation on the fast track as lending losses in wallet and market share could spill over to other functions!
How incumbents react and respond to 2022 trends could determine their relevancy and resiliency in the years ahead.
The document discusses how traditional branch-based banking models are no longer sustainable, and outlines three potential "next generation banking" models that banks should consider adopting: 1) an "Intelligent Multichannel" model powered by analytics, 2) a "Socially Engaging" model that leverages social media interactions, and 3) a "Financial/Non-Financial Digital Ecosystem" model where the bank acts as a hub providing both financial and non-financial services through mobile technology. It argues that aggressively implementing these new models could double annual revenue growth rates while reducing costs by over 20% compared to traditional models focused only on "doing the basics right
This document discusses how FinTech is shaping the financial services industry. Some key points:
1. More than 20% of financial services business is at risk from FinTech competitors by 2020 according to the report. Over half of respondents are unsure or unlikely to respond to blockchain technology.
2. Consumer banking and payments are seen as the sectors most likely to be disrupted over the next 5 years. Up to 22% of banking and payments business could be at risk by 2020.
3. Asset management and insurance are also facing increasing disruption from FinTech with up to 28% of their business at risk by 2020. Incumbents in these industries see more disruption potential than outsiders do.
4. Customer
The document discusses risk management in the financial industry. It notes that risk management was identified as woefully inadequate following the recent financial crisis. While counterparty and liquidity risks were previously not major concerns, the failures of Lehman Brothers and Bear Stearns exposed deficiencies in how these risks were managed. The document argues that effective risk management going forward requires data to be clean, consistent, and processed in real time across business units and asset classes.
The banking industry’s resilience is being tested as banks navigate through a remarkable 2020 filled with uncertainties. The impact of COVID-19 has been about setting the tone for future operational models. Retail banks have shifted focus towards integrated risk management with a more holistic view of operational risks. Adapting to the new normal, banks have prioritized cost transformation while engaging customers virtually. Incumbents sought to be more responsible within fast-changing environmental conditions and ESG remained a critical focus.
To provide more experiential services, banks are leveraging techniques such as segment-of-one to hyper-personalize offerings while aiming to humanize digital channels for increased engagement. Banks are also revamping middle and back offices, going beyond the front end leveraging intelligent processes. Open X is enabling banks to play on their strengths and use the expertise of ecosystem players. Going forward, banks are poised to become an enhanced one-stop shop by providing consumers value-adding FS and non-FS experiences.
To acquire customers in cost-effective manner, retail banks are tapping value-based propositions ‒ such as POS financing and mortgage refinancing. Further, Banking-as-Service provides incumbents a way to provide their high-value offerings to other players. In preparation for the future, banks will be looking to improve their go-to-market agility by leveraging the benefits of cloud. This analysis outlines the top 10 trends in retail banking for 2021.
apidays LIVE Australia 2021 - Open Banking: Successful Implementation Strateg...apidays
Banks need to leverage open banking and digital ecosystems to drive customer acquisition and engagement. Open banking APIs can be used to aggregate customer accounts, transactions, and products across institutions to provide a holistic view. This data can then be used to generate savings tips, recommendations, and comparisons to improve the customer experience. Partnering with other digital platforms allows banks to integrate banking and financial services into customers' existing ecosystems. This ecosystem approach supports lifestyle needs and has the potential to accelerate acquisition through data and partnerships.
Property & Casualty Insurance Top Trends 2021Capgemini
The Property & Casualty insurance landscape is evolving quickly with the changing risk landscape, entry of new players, and changing customer expectations. The ripple effects of COVID-19 on the P&C insurance industry and natural disasters such as forest fires have adversely impacted insurance firm books.
In this scenario, to ensure growth and future-readiness, the most strategic insurers strive to be ‘Inventive Insurers’ – assuming a customer-centric approach, deploying intelligent processes, practicing business resilience and go-to-market agility, and embracing an open ecosystem.
Read our Property & Casualty Insurance Top Trends 2021 report to explore the strategies insurers are adapting to remain competitive amidst the evolving business landscape and how they can explore new ways to enhance their profitability.
Financial services is undergoing a paradigm shift that is forcing incumbent retail banks to rethink growth strategies as they struggle to remain relevant. Growing competition from BigTechs, FinTech firms, and challenger banks has added to the complexity created by increasingly stringent regulatory and compliance requirements. Customers now expect a seamless customer journey and personalized offerings because they have become accustomed to top-notch individualized service from GAFA giants Google, Apple, Facebook, and Amazon. The changing ecosystem offers established banks new, unexplored opportunities and encourages a transition beyond traditional products to meet the exacting requirements of today’s customers. Bank collaboration with FinTech and RegTech partners is becoming commonplace. Incumbents are exploring point-of-sale financing and unsecured consumer lending, while they also boost their digital channel competencies to reach a broader customer base. Banks are beginning to accept open APIs and are working with third-party specialists to create an open shared marketplace. Technological advancements such as AI are fueling efforts to evolve customer onboarding and touchpoint processes. Increasingly, banks are turning to design thinking methodology to understand the customer journey, extract deep insights, and develop a more refined user experience across the customer lifecycle.
Our analysis of the top retail banking trends for 2020 offers a glimpse into the fast-changing banking ecosystem and explores the tools and solutions being used to face new-age challenges.
Ai and data migration as a service subhash bhat cwin18-indiaCapgemini
1. The document discusses two AI-powered solutions from Capgemini: Intellimap and Smart UDS. Intellimap uses natural language processing and machine learning to map service requests and incidents to existing automation solutions. Smart UDS is a web-based application that streamlines and automates data migration processes through features like data validation, enrichment, and parallel user access.
2. The document provides overviews of each solution's features and benefits, which include increased automation rates, multi-lingual support, continuous model improvement, and compressed end-to-end data migration lifecycles.
3. Architecture diagrams show Intellimap's three-tier design using AI algorithms and machine learning, while Smart U
Linked in data to power sales - dreamforce nov 18 2013 - vfinal w. appendixAndres Bang
LinkedIn developed a data-driven approach to sales that blends account lens, analytics, and automation. They focus on understanding accounts at a high level by considering size of opportunity and likelihood. Analytics models assign scores to prioritize accounts. Automation uses triggers from user behavior and signals to proactively engage customers. Key learnings include the need for cross-functional partnerships and an experiment-measure approach to continuously improve the system. The goal is to leverage LinkedIn's data to power the most effective sales and marketing.
The document provides an overview of the MSC Malaysia Skills Competency Matrix 2.0 project. It describes the background and objectives of updating the original 2010 skills matrix. A new online survey and interviews were conducted to collect input from over 500 companies. The revised matrix includes additional information like industry certifications, salary ranges, and job demand indicators for each job role. It is intended to serve as a common reference for various stakeholders in the ICT industry.
In conjunction with Accenture, the Overseas Bankers Association of Australia (OBAA) Committee hosted a Thought Leadership Event in early August for OBAA members on the topic of Open Banking. Accenture has been spearheading research into the global adoption of Open Banking and the way in which it could revolutionise how banks generate value.
Find out more here: https://www.accenture.com/au-en/insight-open-banking-brave-new-world
Durbin + Debit: The Devil\'s in the DetailsJohnDStevens
The document discusses the changes to debit card fees and regulations that went into effect in October 2011 due to the Durbin Amendment. It outlines several questions merchants should ask their processors to ensure they are receiving the lower rates under the new regulations. Specifically, merchants need to verify they don't need to make any changes, see the savings clearly displayed in their reporting, and confirm discount pricing models are applying the new lower debit card rates. Transactions most likely to be affected are recurring and subscription-based models that rely heavily on debit card usage.
This document discusses open banking and its implications for Suryoday Small Finance Bank. It begins with an overview of open banking, including how it creates an open ecosystem compared to traditional closed systems. It then covers the key drivers of open banking such as regulations, emerging technologies, competition, and consumer demand. Regulatory timelines for open banking in various regions are provided. The document discusses how banks can take different approaches to open banking, and what opportunities it provides for Suryoday, including providing invoices and payments services for small businesses. It concludes that Suryoday is well positioned to become an open bank due to its existing API-based systems and platform approach.
Are you ready to harness the power of big data and turn your data streams into real revenue opportunities? Introducing CSI IQ – a suite of enhancements and ancillary solutions that are fully integrated into NuPoint® core processing solution. From greater search and data view functionality to reimagined mobility and world-class business analytics capabilities, CSI IQ provides your financial institution with the tools it needs to be competitive in the market place and meet evolving consumer demands.
Traditional Banks, Credit Unions Compete Against Digital-Only BanksFlavia_McCain
The entire banking industry continues to shift to digital channels. This poses more threats to the dominant traditional banks and credit unions. As technology improves, banks providers expect a new breed of solutions that beat the conventional model through innovative products and services to suit the liking of digitally-savvy consumers.
Learn about our powerful Construction Viz Project Tracking app available for Microsoft 365 and SharePoint. Project Tracker combines all your critical project information into a single interactive dashboard so you can quickly find and resolve potential issues, report on project status, and monitor the schedule and budget.
Read more about Project Tracker along with our complete suite of Project Management Apps at https://constructionviz.com/apps/
MEDICI’s new ‘Open Banking’ report is a detailed analysis of the Open Banking landscape. Read about the evolution of Open Banking, the regulatory landscape, critical factors affecting the implementation of Open Banking, partnerships, market dynamics, and more!
This analysis provides an overview of the top trends in the commercial banking sector as they shift to technology high gear to boost client efficiency and battle a volatile, uncertain, competitive, and evolving landscape.
First, it was retail banking. Now, advanced technology is shifting to – and disrupting − the commercial banking space. Many commercial banks, known for paperwork, red tape, and branch dependency, were unprepared to support clients during their post-COVID-19 ramp-up. But now, the digital pivot to new mindsets, partnerships, and processes is in overdrive.
As commercial banks grapple with competition from FinTechs, BigTechs, and alternative lenders, their inability
to fulfill SME demands and pandemic after-shocks necessitates transformative process changes and a move
to experiential, sustainable, and inclusive banking models. We expect banks to strive to meet the demands
of corporate clients and SMEs by digitally transforming critical workflows and improving client experience.
Additionally, incremental process improvements in the middle and back-office that leverage intelligent
automation will keep the competition at bay because engaged clients are loyal.
Adopting newer methods to mine data and moving to as-a-Service models will prepare commercial banks
to flexibly respond to newcomers and find ways to co-exist through effective collaboration. The time has come for commercial banks to put transformation on the fast track as lending losses in wallet and market share could spill over to other functions!
How incumbents react and respond to 2022 trends could determine their relevancy and resiliency in the years ahead.
The document discusses how traditional branch-based banking models are no longer sustainable, and outlines three potential "next generation banking" models that banks should consider adopting: 1) an "Intelligent Multichannel" model powered by analytics, 2) a "Socially Engaging" model that leverages social media interactions, and 3) a "Financial/Non-Financial Digital Ecosystem" model where the bank acts as a hub providing both financial and non-financial services through mobile technology. It argues that aggressively implementing these new models could double annual revenue growth rates while reducing costs by over 20% compared to traditional models focused only on "doing the basics right
This document discusses how FinTech is shaping the financial services industry. Some key points:
1. More than 20% of financial services business is at risk from FinTech competitors by 2020 according to the report. Over half of respondents are unsure or unlikely to respond to blockchain technology.
2. Consumer banking and payments are seen as the sectors most likely to be disrupted over the next 5 years. Up to 22% of banking and payments business could be at risk by 2020.
3. Asset management and insurance are also facing increasing disruption from FinTech with up to 28% of their business at risk by 2020. Incumbents in these industries see more disruption potential than outsiders do.
4. Customer
The document discusses risk management in the financial industry. It notes that risk management was identified as woefully inadequate following the recent financial crisis. While counterparty and liquidity risks were previously not major concerns, the failures of Lehman Brothers and Bear Stearns exposed deficiencies in how these risks were managed. The document argues that effective risk management going forward requires data to be clean, consistent, and processed in real time across business units and asset classes.
The banking industry’s resilience is being tested as banks navigate through a remarkable 2020 filled with uncertainties. The impact of COVID-19 has been about setting the tone for future operational models. Retail banks have shifted focus towards integrated risk management with a more holistic view of operational risks. Adapting to the new normal, banks have prioritized cost transformation while engaging customers virtually. Incumbents sought to be more responsible within fast-changing environmental conditions and ESG remained a critical focus.
To provide more experiential services, banks are leveraging techniques such as segment-of-one to hyper-personalize offerings while aiming to humanize digital channels for increased engagement. Banks are also revamping middle and back offices, going beyond the front end leveraging intelligent processes. Open X is enabling banks to play on their strengths and use the expertise of ecosystem players. Going forward, banks are poised to become an enhanced one-stop shop by providing consumers value-adding FS and non-FS experiences.
To acquire customers in cost-effective manner, retail banks are tapping value-based propositions ‒ such as POS financing and mortgage refinancing. Further, Banking-as-Service provides incumbents a way to provide their high-value offerings to other players. In preparation for the future, banks will be looking to improve their go-to-market agility by leveraging the benefits of cloud. This analysis outlines the top 10 trends in retail banking for 2021.
apidays LIVE Australia 2021 - Open Banking: Successful Implementation Strateg...apidays
Banks need to leverage open banking and digital ecosystems to drive customer acquisition and engagement. Open banking APIs can be used to aggregate customer accounts, transactions, and products across institutions to provide a holistic view. This data can then be used to generate savings tips, recommendations, and comparisons to improve the customer experience. Partnering with other digital platforms allows banks to integrate banking and financial services into customers' existing ecosystems. This ecosystem approach supports lifestyle needs and has the potential to accelerate acquisition through data and partnerships.
Property & Casualty Insurance Top Trends 2021Capgemini
The Property & Casualty insurance landscape is evolving quickly with the changing risk landscape, entry of new players, and changing customer expectations. The ripple effects of COVID-19 on the P&C insurance industry and natural disasters such as forest fires have adversely impacted insurance firm books.
In this scenario, to ensure growth and future-readiness, the most strategic insurers strive to be ‘Inventive Insurers’ – assuming a customer-centric approach, deploying intelligent processes, practicing business resilience and go-to-market agility, and embracing an open ecosystem.
Read our Property & Casualty Insurance Top Trends 2021 report to explore the strategies insurers are adapting to remain competitive amidst the evolving business landscape and how they can explore new ways to enhance their profitability.
Financial services is undergoing a paradigm shift that is forcing incumbent retail banks to rethink growth strategies as they struggle to remain relevant. Growing competition from BigTechs, FinTech firms, and challenger banks has added to the complexity created by increasingly stringent regulatory and compliance requirements. Customers now expect a seamless customer journey and personalized offerings because they have become accustomed to top-notch individualized service from GAFA giants Google, Apple, Facebook, and Amazon. The changing ecosystem offers established banks new, unexplored opportunities and encourages a transition beyond traditional products to meet the exacting requirements of today’s customers. Bank collaboration with FinTech and RegTech partners is becoming commonplace. Incumbents are exploring point-of-sale financing and unsecured consumer lending, while they also boost their digital channel competencies to reach a broader customer base. Banks are beginning to accept open APIs and are working with third-party specialists to create an open shared marketplace. Technological advancements such as AI are fueling efforts to evolve customer onboarding and touchpoint processes. Increasingly, banks are turning to design thinking methodology to understand the customer journey, extract deep insights, and develop a more refined user experience across the customer lifecycle.
Our analysis of the top retail banking trends for 2020 offers a glimpse into the fast-changing banking ecosystem and explores the tools and solutions being used to face new-age challenges.
Ai and data migration as a service subhash bhat cwin18-indiaCapgemini
1. The document discusses two AI-powered solutions from Capgemini: Intellimap and Smart UDS. Intellimap uses natural language processing and machine learning to map service requests and incidents to existing automation solutions. Smart UDS is a web-based application that streamlines and automates data migration processes through features like data validation, enrichment, and parallel user access.
2. The document provides overviews of each solution's features and benefits, which include increased automation rates, multi-lingual support, continuous model improvement, and compressed end-to-end data migration lifecycles.
3. Architecture diagrams show Intellimap's three-tier design using AI algorithms and machine learning, while Smart U
Linked in data to power sales - dreamforce nov 18 2013 - vfinal w. appendixAndres Bang
LinkedIn developed a data-driven approach to sales that blends account lens, analytics, and automation. They focus on understanding accounts at a high level by considering size of opportunity and likelihood. Analytics models assign scores to prioritize accounts. Automation uses triggers from user behavior and signals to proactively engage customers. Key learnings include the need for cross-functional partnerships and an experiment-measure approach to continuously improve the system. The goal is to leverage LinkedIn's data to power the most effective sales and marketing.
The document provides an overview of the MSC Malaysia Skills Competency Matrix 2.0 project. It describes the background and objectives of updating the original 2010 skills matrix. A new online survey and interviews were conducted to collect input from over 500 companies. The revised matrix includes additional information like industry certifications, salary ranges, and job demand indicators for each job role. It is intended to serve as a common reference for various stakeholders in the ICT industry.
In conjunction with Accenture, the Overseas Bankers Association of Australia (OBAA) Committee hosted a Thought Leadership Event in early August for OBAA members on the topic of Open Banking. Accenture has been spearheading research into the global adoption of Open Banking and the way in which it could revolutionise how banks generate value.
Find out more here: https://www.accenture.com/au-en/insight-open-banking-brave-new-world
Artificial intelligence (AI) is everywhere, promising self-driving cars, medical breakthroughs, and new ways of working. But how do you separate hype from reality? How can your company apply AI to solve real business problems?
Here’s what AI learnings your business should keep in mind for 2017.
Study: The Future of VR, AR and Self-Driving CarsLinkedIn
We asked LinkedIn members worldwide about their levels of interest in the latest wave of technology: whether they’re using wearables, and whether they intend to buy self-driving cars and VR headsets as they become available. We asked them too about their attitudes to technology and to the growing role of Artificial Intelligence (AI) in the devices that they use. The answers were fascinating – and in many cases, surprising.
This SlideShare explores the full results of this study, including detailed market-by-market breakdowns of intention levels for each technology – and how attitudes change with age, location and seniority level. If you’re marketing a tech brand – or planning to use VR and wearables to reach a professional audience – then these are insights you won’t want to miss.
After surviving the financial meltdown in 2008, the banking industry finds itself at a
critical juncture. A slow economy restrains the potential for increasing revenue,
while new complex regulations add high levels of uncertainty to the industry.
Rebuilding Customer Trust in Retail BankingNoreen Buckley
An IBM White Paper by Mike Hobday Banking Practice Leader
Global Business Services UK
and Ireland
IBM & Charles Spinosa
Group Director & Leader Marketing Practices VISION Consulting
Innovation In Banking: Hidden Opportunities in the Forces Propelling ChangeInfosys Finacle
With Darwin’s theory playing out in the last couple
of years, surviving financial institutions are
confronted with multiple challenges. On the
external front, banks are trying to: reclaim the trust
of increasingly strident, demanding consumers;
tackle competition from established and emerging
rivals and; comply with tougher mandates.
Internally, their biggest challenges include
adjusting to restructuring, consolidation and
improving operating efficiency. To top it all, the
quest for a competitive edge requires them to
imbibe best practices from peers and other
industries, and keep pace with new technologies.
A Framework for Detecting Macroeconomic Changes and Their Effect on a Bank's ...Cognizant
For the banking industry, we describe the relationship between changing business conditions/technologies and variances in business models - including a matrix of internal and external "fit" based on flexibility and product variety.
Trends in retail_banking_channels__improving_client_service_and_operating_costsvoland55555
Banks are increasingly focusing on five key trends across retail banking channels to improve client service and reduce costs:
1. Increased use of online platforms like Web 2.0 and social media to better engage with clients.
2. Investing in mobile banking solutions to drive innovation and lower costs by addressing customer needs for convenient access.
3. Pushing more activities online to reduce branch operating expenses and put the online channel on equal footing with branches.
4. Achieving seamless multi-channel integration to provide a superior customer experience and competitive advantage.
5. Leveraging customer analytics to improve relationships and understand client behaviors and expectations across channels.
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Pwc new-digital-tipping-point
1. The new digital
tipping point
Traditional banking is facing its steepest
challenge in over a generation. We believe
that a new tipping point has been reached,
with digital at its fulcrum.
www.pwc.com/digitaltippingpoint
2.
3. Contents
02 Introduction: Driving customer value
through digital
04 Customer relationship primacy is the new
source of value in banking
05 Digital is crucial in addressing changing
customer behaviour
10 Customers value new digital offerings
12 New digital entrants are disrupting the
banking ecosystem
14 The battle for customer relationship
primacy among banks has begun
16 Contacts
PwC The new digital tipping point 1
4. Introduction: Driving customer value
through digital
We are in an unprecedented period of increasing regulation
and continuing cost pressures for banks. This is being
compounded by the persistent trend in margin compression
and alarming market uncertainty.
The emergence of new technologies into banking has had a
permanent impact, as once traditional banking revenue pools
are now being sucked up by new competitors, especially in
the payments’ space. All of this is happening at a time when
customer expectations for banking services (both offline and
online) are being reset by the experiences being provided by
retailers and online providers, elsewhere.
Finally, to this long list add the general lack of trust customers
have in financial services – owing to the credit crunch – and
the general perception that the major banks all contributed to
the global market collapse. We can quickly conclude that
traditional banking is facing its steepest challenge in over a
generation. We believe that a new tipping point has been
reached, with digital at its fulcrum.
2 PwC The new digital tipping point
5. Towards a customer-centric value ...now disrupting and catalysing
model in banking change in the banking ecosystem
Before the financial crisis, banks relied Digital has also opened up banking to a
heavily on financial leverage to create number of innovators – big and small –
shareholder value. Today, the economic seeking to capture value across the
climate, increased regulatory banking value chain. In markets where
intervention and competitive banking is widely accessible, we believe
challenges are forcing banks to that while these new entrants will
deleverage and look for other sources secure a place as part of the banking
of value. In the ‘new reality’ since the ecosystem, there is little evidence to
crisis hit, a new value model is required, suggest that they will be successful in
based upon securing customer taking over the entire customer
relationship primacy (the position of relationship from banks. Despite
being the preferred and main bank for challenges to this position, banks
a customer), through efforts to regain remain the most trusted providers of
trust and build customer engagement. banking services by customers. In
growing markets where the under-
Preference for digital is now banked population is sizeable, the
globally pervasive among threat of being out-competed by new
banking customers entrants could potentially be greater.
Digital will play an instrumental role in
achieving this strategy. The preference Provides a platform for
for digital is now pervasive across all innovation
customer segments, globally, and Mobile is coming of age and is moving
especially so for Generation Y (the beyond simple banking functionality to
definition varies widely, but broadly, it embrace mobile payments and other
refers to those people born in the 1980s innovative offerings such as marketing
and 1990s). In fact, for this group, now services, sophisticated authentication
at the threshold of deciding primary mechanisms, location-based
banking relationships, the quality of the personalisation, etc. These innovative
digital offering is an important factor in services serve to create a superior
their decision process. Banks have a customer experience, one that the
real imperative to act now to attract customer is willing to pay for.
these customers and thereby lock in
future value. Banks’ digital strategies Strategic partnerships will pave
will need to move beyond cost the way to success for banks
reduction objectives to do this. We believe that banks should acquire or
partner with innovators that are acting
‘Digital’ has evolved from basic as catalysts for change. The alternative
online banking to a broad, rich for those banks that accept the need to
set of capabilities... change is to develop these capabilities
The full extent of what digital can offer alone – an expensive and risky effort.
customers goes beyond the basic mobile
and internet banking services that are Traditionally, banks have preferred a
now widely provided, although there is ‘build’ approach for most changes.
still value to be obtained for many However, we believe that in this
banks from simply delivering these scenario, a ‘buy’ or ‘partner’ strategy
basic services well. Digital banking will would be more optimal as this change
evolve into a richer set of offerings, requires a new way of thinking and
providing new value for banks and their building that is difficult for competitors
customers through a new ‘digital to copy.
feature set’, based on innovations in:
We believe that the real battle will take
user experience; mobile devices and
place between banks, as they seek to
networks; social media and
secure primacy of the customer
collaboration; customer analytics; and
relationship as the basis of future
channel integration. By embracing
shareholder value. Many banks,
digital, banks can deepen their existing
however, may react late or continue to
customer relationships as well as access
persist with old ways and methods and
new sources of revenue.
as a result, lose market share in the
changing banking landscape. PwC The new digital tipping point 3
6. Customer relationship primacy is the new
source of value in banking
Banks need to focus their strategies on a customer relationship primacy model, by regaining
trust and building engagement with the customer. In the ‘new reality’ of banking, financial
engineering is no longer sufficient to create value and banks need to look at demonstrating
customer value to remain relevant in the market.
A number of things have driven this their primary banking provider rather Furthermore, the wide availability of
change in banking including increased than any other source (see Figure 1). This information about financial products
regulation, the erosion of public trust underscores the importance of achieving propagated over the internet has helped
with a series of high-profile banking primacy in a relationship, as it leads to a expose the gap between price and value
failures, the collapse of liquidity in the greater share of wallet for banks. for banking products to consumers
market, increased capital requirements and regulators. This has undermined
and a reduced risk appetite among Although retail banking has benefited traditional pricing strategies, forcing
customers. All these have contributed to from high levels of consumer inertia in banks to demonstrate intrinsic value to
a difficult environment for banks to the past, there is now a concerted effort their customers.
operate in. from regulators around the world to
make the process of switching banks
In developed markets, growth in banking easier.1 Evidence from other industries
is flat or shrinking. The shift from assets such as utilities and insurance suggests
PwC2 conducted research
to liabilities, though preferred for that this will lead to an increase in the with almost 3,000 banking
funding, is resulting in lower average level of switching within banking. These customers from a range of
margins for banks. In these markets, the industries are typically more regulated segments across markets to
only way for banks to maintain and grow and banks can learn from these as they discover their expectations of
value is to pursue a displacement strategy grapple with similar challenges. banking in the digital age. We
against other banks and increase their selected both emerging and
share of wallet with the customer. Our Banks can proactively address this developing markets including
research revealed that a vast majority more by using digital to deepen their China, India, Mexico and the
existing relationship with customers UAE, as well as developed
of customers preferred to purchase
and gaining primacy. markets like the UK, Canada,
additional financial service products from France and Poland.
Our research revealed that
Figure 1: Primacy drives share of wallet
there is a very high correlation
between digital engagement and
“If you were going to purchase a new banking product, how likely are you to buy from the following?” share of wallet for a customer
and that digitally active
Current bank A different bank customers tended to have the
largest product holdings. We
Canada 81% Canada 10% also found that primacy in a
UAE 62.9% UAE 23.7% banking relationship drives
increased share of wallet
France 75.3% France 10.8%
leading to higher revenue
Poland 61.1% Poland 20% generation from the customer
Mexico 75.3% Mexico 18.4% pool.
India 76.9% India 10.3%
Hong Kong 86% Hong Kong 9.9%
China 79.4% China 11%
1 Independent Commission on Banking, Final Report
UK 53.2% UK 14.9% Recommendations, September 2011, UK
2 In this document, “PwC” refers to
Source: PwC Digital Tipping Point Survey 2011 PricewaterhouseCoopers LLP (a limited liability
% of respondents that chose current banking provider or another banking provider in response to the question. partnership in the United Kingdom), which is a
Other options included a provider that is not a bank but has a physical presence (e.g. a supermarket chain) and member firm of PricewaterhouseCoopers
an online provider. International Limited, each member firm of which is
a separate legal entity
4 PwC The new digital tipping point
7. Digital is crucial in addressing changing
customer behaviour
Today, a successful digital offering in banking implies the provision of high quality online and
mobile banking access. We find that the new digital feature set can be used to meet the
increasing demands of the customer.
There are four main considerations 3) Generation Y, who are now at the 4) Digital itself, is evolving: the new
for a bank to invest in a robust digital point of choosing their primary set of disruptive features of the
offering: financial services provider, cite latest round of digital innovation is
digital as an important factor in proof enough.
1) A number of factors are changing this decision.
customers’ attitudes and behaviours.
2) Preference for digital is globally
pervasive.
We believe that there are five key aspects of changing customer behaviour
Customers...
...expect more ...trust their peers ...are informed ...have choices ...have a voice
Expectations are being The role of banks as Financial consumers Comparison and The rise of social media
shaped by experiences the financial expert are more savvy today, purchase of alternative platforms has allowed
outside of the banking has been replaced due to the easy access financial products and a single consumer voice
industry where by ‘word of mouth’ to research, data and services online is now to be amplified to a
content, interactions peer conversations, ‘expert’ views. This straightforward and tremendous degree,
and features are richer, or independent has also exposed the widespread. It has and consumers have
delivering a more influencers. The rapid lack of differentiation opened up a wide not been shy about
engaging and emergence of social between different range of choices for raising it. Stories of
rewarding experience media in parallel with providers’ banking consumers, some bad customer
for the consumer. the rise of mobility products. As more outside the boundaries experiences rapidly
has seen customers financial services of traditional banking spread through these
increasingly turn to customers become services, such as peer-to- media and often cause
their peers for ‘self-directed’, they peer lending. irreparable damage to
information and are coming to rely associated brands.
advice, rather than to less upon traditional
financial experts in sources of financial
banks. advice.
PwC The new digital tipping point 5
8. In banking, the internet is now widely used by all segments
around the world to purchase financial services products.
Mobile banking is still in its infancy, but is following a
similar usage curve with China, India and the UAE leading
the trend in terms of adoption. For the emerging markets,
mobile is more than just a new channel, as it provides basic
banking facilities to a previously under-banked market.
The growth of mobile has Figure 2: The global usage of internet and mobile
significant implications for usage in banking
banks. As mobile phones get
100
equipped with more and better
90
functionality, it will transform
80
the traditional interaction model
70
with the consumer. Well-
60
appointed branches and slick
50
websites will no longer be enough,
40
as customers expect services on
30
the move. Location-based offers,
20
timely and relevant content, and
10
interactive applications will form
0
the basis of the mobile customer’s
India
China
UAE
Hong
Kong
Mexico
UK
Poland
Canada
France
Total
engagement with their banks.
n % who currently use mobiles to purchase financial products
n % who currently use the internet to purchase financial products
Source: PwC
While the preference for digital can be seen across all
segments and markets (see Figure 2), it is especially
important for those customers who form part of Generation
Y, now at the point of choosing their main banking provider.
Consequently, banks need to target and acquire these
customers now to lock in the future value that will be
generated by this segment. Our research suggests that the
extent to which a bank exploits the new digital feature set
will play a very important part in this customer group’s
decision-making process, much more so than traditionally
important criteria such as branch location, or even brand.
6 PwC The new digital tipping point
9. Generation Y, or ‘digital natives’
as they are sometimes referred to,
naturally expect a rich digital
experience that is both mobile
and social, and seamlessly
integrates their banking needs
with their digital lives. This group
represents a highly important
customer segment for banks, as
they are starting to reach the peak
age of financial consumption and
will be an important source of
value for banks.
Figure 3: Online and mobile are preferred channels, particularly for As Generation Y ‘grows up’
Generation Y customers with digital, it will be more
important for banks to match
Gen Y
66.8 their digital expectations.
87.8
59.5
Gen X
91
Baby 45.8
boomers 92.3
39.9
Matures
90.6
26.3
After work
85.4
0 50 100
n Mobile n Online
Combined proportion of respondents who are ‘currently using’ or ‘considering using’ online or mobile
banking services
Source: PwC Digital Tipping Point Survey 2011
The propensity of Generation Y to use mobile channels was higher than any
other consumer segment. Sixty-seven percent of respondents in this segment
said that they were either currently using or considering using, the mobile
channel. This number progressively decreases for older customers.
PwC The new digital tipping point 7
10. The new digital
feature set has led to:
• Improvements in user-experience
design through interactive,
game-like interfaces that are
starting to merge the boundaries
between the real and the virtual,
and bringing data to life through
rich visualisations.
• Advances in mobile devices and
networks, providing new services
such as enhanced digital security
and the ability to access the
internet from anywhere (partially
limited by high international
roaming charges).
• The rise of social media and
collaboration tools, empowering
customers and employees, and
moving control of the ‘brand
message’ from businesses to
consumers.
• Innovation in digital analytics
and predictive models, driving
deeper insight into customers’
behaviour and enabling highly
targeted and relevant treatment
strategies to be executed through
digital media.
• New channel integration
technologies, enabling a more
seamless end-to-end experience
for customers with their bank.
8 PwC The new digital tipping point
11. The new digital ‘feature set’ will increasingly be exploited to provide a much richer
set of banking offerings for the customer. The impact of these digital innovations
on banks goes beyond their technology, security and infrastructure capabilities:
it is opening up new business models and propositions, redefining the customer
experience, and enabling new potential from employees and business networks.
The implication for banks is
easyJet, a British low-cost airline, As consumers gravitated towards that as business models are
became the first in the UK to launch ba.com, it provided the airline with
an e-commerce website in 1998, both the means and the opportunity transformed by the shift to
marketing itself as ‘the web’s to develop new propositions for digital channels, it opens up new
favourite airline’. customers in a virtuous circle of opportunities for engaging and
innovation. The launch of new digital interacting with customers to
As easyJet redefined the market, services, e-ticketing, online check-in
the rest of the industry including build relationships and grow
and mobile boarding cards were all
traditional leaders like BA had to built on the success of the channel shift revenues. For banks that manage
follow suit or risk being left behind. to ba.com. This channel shift has not to engender a similar shift in their
By 2005, BA had stopped paying only sparked the redesign of the own distribution models, similar
commission to travel agents, end-to-end traveller experience, but opportunities await.
previously its main channel to has inspired BA to design new digital
market, as ba.com took over that services for which some customers will
mantle. Today, almost two-thirds of pay, such as priority seat booking more
BA’s sales are made through ba.com. than 24 hours in advance of departure
(BA charge from £25 for economy
passengers to choose seats if it’s more
than 24 hours before the flight; for
exit row seats, this charge is £50).3
3 www.ba.com
PwC The new digital tipping point 9
12. Customers value new digital offerings
Not only does digital deepen levels of customer engagement,
it also opens up avenues for the monetisation of new services.
In our research, PwC tested the level of interest in a number of
theoretical digital capabilities.
As part of our survey, we tested the Our research indicated that across
willingness of customers to pay for different regions a base price can be
some innovative digital capabilities charged for these digital capabilities,
such as a digital wallet for loyalty cards, in the range of GBP2–10/month for
notifications through social media, each capability. At a time when banks
spending analysis tools, third-party are finding it difficult to sustain
offers and storing documents in a revenue and margin growth, the fact
virtual vault (see Figure 4). that customers appear prepared to
pay for the perceived value of using
In all markets, social media digital services that offer new value
notifications (except China), an to customers, is significant.
electronic wallet for loyalty cards
and financial tools were rated among
the top three from this list.
Figure 4: Appetite for innovative digital services
‘Which of the following would you be willing to pay for, please rank your top 3?’
I can be notified by My bank will store My bank can offer My bank can My bank would
1 Twitter/Facebook
2 loyalty cards and
3 spending analysis
4 offer me relevant
5 store key documents
for a transaction convert points to tools third-party offers in a virtual vault
occurring cash
UK 66.3 64.6 56.1 54.0 57.0
UAE 67.1 67.7 61.2 49.0 56.1
Poland 69.0 61.8 66.7 53.4 47.4
Mexico 73.7 62.8 61.3 46.4 57.2
India 85.1 65.3 58.7 43.6 45.2
Hong Kong 70.5 67.2 58.3 52.6 50.7
France 75.7 64.1 55.4 48.7 63.9
China 74.6 56.1 44.2 46.5
Canada 75.9 62.6 58.5 56.9 54.9
0 50 100 0 50 100 0 50 100 0 50 100 0 50 100
Level of interest [Scored ranking results (rank 1=100, 2=50, 3=25); average 0-100]
Source: PwC Digital Tipping Point Survey 2011
10 PwC The new digital tipping point
13. Figure 5: Customer willing to pay
The percentage of respondents who
suggested that they would be
UK willingness to pay willing to pay for loyalty services
Sample proposition – My bank will store loyalty cards and convert points to cash
provided by a bank in the UK was
65%. They suggested they would be
willing to pay an optimal price of
£4.20 per month for this service.
Optimal price point: This would translate into an annual
£4.20 fee income of approximately £50
per customer.
0 2 4 6 8 10
Tolerance
Point of marginal cheapness: £3 Point of marginal expensiveness: £5.40
Too Inexpensive Inexpensive Expensive Too expensive
Source: PwC Digital Tipping Point Survey 2011
PwC Van Westerndorp pricing analysis
Research (see Figure 6) has shown that
Figure 6: Consumers will pay more for good service
across markets in the world, customers
demonstrate a willingness to pay a
US premium for products or services from
Canada companies who have offered them good
Mexico
customer service in the past.
France This translates to a higher willingness
Germany to pay for perceived excellence of
Italy between 5% and 10% more for
UK
products and services, highlighting the
value for customers and companies
Spain
when they get this right.
Netherlands
Australia Considering the likely uptake of digital,
India
especially among younger, affluent
customers, there is a real opportunity
Japan
to enhance ROI by investing in digital
0 20 40 60 80 capabilities that drive additional value
and better service for customers.
n Percentage of consumers who say that they have spent more on a product or
service because of a history of good customer service with that company
n Average percentage more, a customer is willing to spend for perceived
excellent service
Source: American Express Global Customer Service Barometer 2010
PwC The new digital tipping point 11
14. New digital entrants are disrupting
the banking ecosystem
There are several new entrants competing for inclusion in the
banking value chain and we believe that a number of these will
be successful in securing their position as part of the banking
ecosystem. Our research suggests, however, that these are
unlikely to displace banks as the primary provider of financial
services, especially in markets where banking is widely accessible.
Customers across all groups continue to put their trust in banks (see Figure 7)
to manage their financial affairs, despite their continuing relative unpopularity.
When asked about who they would trust with their current accounts, customers
still prefer banks to any other financial services provider. We do believe, however,
that despite this, innovative challengers will continue to act as catalysts of change
in banking. Banks should look for strategic acquisitions, or partnerships with these
firms to secure their long-term positions in the battle against other banks for
customer relationship primacy.
Figure 7: UK ‘trust’ in current account providers
Percentage of respondents who chose trust absolutely, or trust somewhat when asked about the extent
to which they trusted these providers with their current account
Building societies and
61%
cooperatives
Existing banks 55%
Payment networks 44%
Retailers 38%
Technology companies 28%
Newer providers 22%
Mobile companies 17%
0% 10% 20% 30% 40% 50% 60% 70%
Source: PwC survey
12 PwC The new digital tipping point
15. Figure 8: The emerging challenge to the banking ecosystem
We have analysed the banking ecosystem
Access holders and
Banking incumbents
networks
Digital innovators and identified that there are both
‘defenders’ and ‘attackers’ in the market.
‘Defenders’ are market
Large retail banks incumbents that have
traditionally controlled their own
segments in the banking value
Defenders
Remittance chain. While almost all of them
aspire to move into the digital
innovator space, few are equipped
Card issuers
to do so without external help
(through acquisition or
Card networks
partnerships).
‘Attackers’ are new entrants who
are trying to wrest share away
Mobile operators
from the incumbents by
intermediating themselves into
the value chain. These include
Attackers
Technology firms
established players in technology
and mobile as well as smaller and
Handset manufacturers more nimble start-ups. We believe
Existing role
that while these players may be
able to secure positions on the
Personal finance value chain, they will be unlikely
platforms
Aspirational role
to displace banks as the primary
provider of financial services
Source: Company websites, press releases and annual reports, PwC analysis
Incumbents in emerging markets that
have a large share of unbanked, or
under-banked consumers are likely
to experience a greater threat from
new players. Here too, a strategic
partnership between a bank and an
innovator has the best chance of
creating the winning combination to
acquire and retain new customers,
assuming banks act. However, it must
be acknowledged that a game-changing
innovation by a pure play provider (e.g.
in growing or emerging areas such as
mobile payments or digital wallets)
may also prove successful, especially if
banks fail to act.
PwC The new digital tipping point 13
16. The battle for customer relationship primacy
among banks has begun
With the battle lines being redrawn amongst banks, the
winning bank should focus on taking steps to develop deeper
relationships with their customers. Focusing on gaining
trust, building engagement and creating value for the
consumer should be the guiding principles for doing this.
We believe the most important Banks face the dilemma of having to
elements in getting started are: choose one of two available paths
open to them: whether to stay with
Develop a vision and strategy: traditional banking models that have
Acknowledge that the new digital served banks well until now, or embrace
feature set is changing the way change and serve the customer in
consumers interact with their banks. a way that the customer wants.
Understanding the different needs of
different customer groups is essential, We believe that the perfect storm
as a one-size approach will prove banks are facing today will produce
insufficient to meet the range of needs some clear winners. The victors will
of customers. Developing a vision and be those that recognise the changing
a digital strategy – with the customer ecosystem and set out a clear digital
at its heart – is the first step towards vision for securing customer
succeeding on this journey. relationship primacy. Others will see
the challenging environment of today
Be prepared to partner: Banking will as a distraction at best and continue
necessarily become increasingly persistently with old ways and
intertwined with customers’ digital methods, eroding value in the process
lives. New business models and means by disengaging the customers.
of interaction will be required in order
to be successful in this changing
business context. In most cases, it will
prove more effective to work
successfully with innovators from
technology, telecommunications and
other non-traditional banking providers,
than to go at it alone. Identifying
partners to acquire or help deliver the
vision becomes of critical importance.
Achieve first-mover advantage, or
become a high-quality fast follower:
Given the benefits that digital can
bring – both for existing customers as
well as Generation Y – banks need to
act now to avoid being displaced. While
many banks have traditionally copied
their competitors, this strategy may
not be suitable for this scenario as first
movers will have tied up the most
innovative partners and banks will find
it expensive to replicate these
capabilities in house.
14 PwC The new digital tipping point
18. Contacts
Matt Hobbs
Partner (PwC UK)
+44 (0) 20 721 31565
matthew.c.hobbs@uk.pwc.com
Stephen Whitehouse
Partner (PwC UK)
+44 (0) 20 780 41011
stephen.whitehouse@uk.pwc.com
Scott Bauer
Partner (PwC UK)
+44 (0) 20 780 40954
scott.bauer@uk.pwc.com
Sean Mahdi
Director (PwC UK)
+44 (0) 20 721 35564
sean.mahdi@uk.pwc.com
Jan-Willem Weggemans
Director (PwC UK)
+44 (0) 20 721 33946
jan-willem.m.weggemans@uk.pwc.com
Acknowledgments
Jack Cooper
Aishwarya Jayakumar
Woosung Kim
Gorham Palmer
Anton Ruddenklau
16 PwC The new digital tipping point
19. About PwC
We are an extensively networked organisation that
aims to bring the best of PwC to our clients each and
every time. We combine rigour with fun and relish the
most complex challenges. We create a flow of people
and ideas in order to do the right thing for our clients,
our people and our communities.
Our team brings the appropriate talent to bear to
address your particular business problem, augmented
by subject matter experts and alliance partners who
are leaders in their specialised areas of expertise.
The ability to draw upon talent when and where
needed ensures that our shared solution covers the
optimum breadth of topic areas, from customer
experience to technology to business and beyond.
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