Financial services must adapt; quoting from Leading Digital Transformation, its about "the adaptations a business makes to be competitive in a digitalized world". It's the C-suites job!

1. The Digital Disruption of
Financial Services

2. About Us
• BRG is a leading global strategic advisory and expert consulting
firm.
• It provides independent advice, data analytics, authoritative
studies, expert testimony, investigations, and regulatory and
dispute consulting to Fortune 500 corporations, telco’s, financial
institutions, government agencies, major law firms, and regulatory
bodies around the world.
• Our Team for today:
Tony Moroney Heston Hutton
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3. We live in a Digital World
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4. Jamaica too, is increasingly digitized
The Digital Disruption of Financial Services
1.58 Million +
Internet users
1.20 Million +
Active social media users
3.28 Million +
Mobile connections
1.10 Million +
Active mobile social users
1.20 Million +
Facebook Users
4

5. Changing Customer Expectations
World’s largest
taxi operator
DOESN’T OWN
A SINGLE TAXI
World’s largest
accommodation
provider
DOESN’T OWN
A SINGLE
REAL ESTATE
World’s largest
communication players
DON’T OWN
A SINGLE
TELCO
INFRASTRUCTURE
World’s largest
movie house
DOESN’T OWN
A SINGLE MOVIE
THEATRE
World’s most
valuable retailer
DOESN’T OWN
A SINGLE
INVENTORY
World’s leading
travel agent
DOESN’T OWN
A SINGLE
PHYSICAL
BRANCH
World’s Most
Popular
Media Space
DOESN’T OWN
ANY CONTENT
Why would Financial Services be any different?
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6. And New Market Realities
Source: Dell Digital Transformation Global Index 2018
In the digital world,
businesses and industries
are being disrupted
everywhere
Significant pressure to
transform digitally
(start-ups, customers,
competition)
Organizations have started
with varying success –
progress is patchy
45%
believe there is a possibility
their business will become
obsolete within the next
3 – 5 years
48%
do not know what their
industry will look like
in 3 years
62%
have witnessed the
entrance of new
competitors as a result
of digital technologies
52%
have experienced
significant disruption
to their industries over
the last 3 years
73%
confess digital
transformation could be
more widespread in their
organisation
78%
see digital start-ups
as a threat to their
business, now or in
the future
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7. Challenging Traditional Business Models
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8. Forcing Incumbents to Change
“Silicon Valley is
coming; 100’s of start-
ups with a lot of brains
& money working on
various alternatives to
traditional banking”
Jamie Diamond, CEO
JP Morgan Chase
“A large number of
banks will disappear
over the next few years
as a result of digital
disruption.”
Francisco Gonzalez,
Chairman & CEO, BBVA
“We need to be more
decisive and with much
more pace, so that we
are leaner, more agile
and more energetic”
John McFarlane,
Chairman, Barclays Bank
“Looking back, shifting
our culture has been
the most important
effort to build an even
better digital Bank”
Brian Porter, President
and CEO Scotiabank
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9. But, What would Jeff do?
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10. Digital Transformation – so what have we learnt?
1. Innovation is deliberate and predictable; incumbent players are most likely to be attacked where
the greatest sources of customer friction meet the largest profit pools.
2. Innovations are having the greatest impact where they employ business models that are platform
based, data intensive, and capital light.
3. Incumbent institutions will aggressively competing with new entrants while also leveraging
legacy assets to provide those same new entrants with infrastructure and access to services.
4. Collaboration between regulators, incumbents and new entrants will be required to understand
how new innovations alter the risk profile of the industry – positively and negatively.
5. In financial services, the most imminent effects of disruption will be felt in the banking sector;
however, the greatest impact of disruption is likely to be felt in the insurance sector.
6. Disruption will not be a one-time event,; continuous pressure to innovate that will shape customer
behaviours, business models, and the long-term structure of industries
The Digital Disruption of Financial Services
Source: World Economic Forum
10

11. “The adaptions a
business makes to
be competitive in a
digitalized world ”
Closing Thoughts …..
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