agile banking ita7502df7-3fca-4b06-a8be-d8ab2abf6e3… · fail often fail fast fail cheap. gft...

Agile Banking IT

Manuel Lavín Delgado

Head Global em Digital da GFT26 November 2015

DIGITAL TRANSFORMATION

People have changed

… but you already knew it

GFT Group 24.11.2015 3

71%Of young people would rather go to the dentist

than listen to what banks are saying.

Source: Scratch Agency

GFT Group 24.11.2015 4

People have changedPEOPLE HAVE CHANGED

Source: The millennial disruption index

53%

of millennials don’t think

their bank is any different

from other banks

Lack of

Innovation

73%

would be more excited about

a new financial services

offering from

Google/Amazon/Apple/

Square/Paypal than their

own bank

Looking for fresh

ideas

33%

believe soon they

won’t need a bank

at all

!FinTech

momentum

33%

are open to

switching banks in

the next 90 days

No loyalty

=


Players have changed


GFT Group 24.11.2015 6

35%of banking revenues will be at risk by 2020 due

to disruption in the financial sector, from new

digital financial players as FaceBook or Google

Source: Accenture , Banking 2020 Report

GFT Group 24.11.2015 7

FinTech SummaryCOMPETITORS HAVE CHANGED

Source: Venturescanner

Number of categories

19 categoriesNumber of companies

1362 companiesAverage Funding/ Company

$44 million

Average Age/ Company

6 yearsAverage headcount/ Company

167 employeesTop Geo Locations

US, UK, China

GFT Group 24.11.2015 8

What are FinTech doing? Focus on Leading and PaymentCOMPETITORS HAVE CHANGED


GFT Group 24.11.2015 9

What are FinTech doing? Move from banking infrastructure to investment

COMPETITORS HAVE CHANGED



Financial services industry

is evolving


GFT Group 24.11.2015 11

Theory of Evolution and Natural SelectionFINANCIAL SERVICES INDUSTRY IS EVOLVING

Society is evolving faster than ever, and technology is, at same time, cause and consequence

Financial sector is one of the most dynamic actor because a new client segmentation based on

technology has appeared, and banks must decide how to evolve to cover their needs

Customer digitalization

Analogic Customer

Do not like, do not know how, or

do not want to use technology

Digital Customer

Digital believers

Evolutionary Banks

FinTechs

Disruptive BanksTraditional Banks

GFT Group 24.11.2015 12

What are the banks doing?FINANCIAL SERVICES INDUSTRY IS EVOLVING

Create Digital Factories & Labs

The definition of “Digital Factory” will keep changing as industry evolves

Scotiabank pursues “best

customer experience for our 21

million customers”

Wells Fargo Digital Labs to

“simplify customers’ financial lives”

Deutsche Bank Innovation

Laboratories to “improve its digital

banking operations and fend off

new market entrants”

Silicon Valley Bank acquired

Standard Treasury to “enable

better digitized services to our

clients”

HSBC FinTech innovation labs to

“promote new technologies from

startups and partners within the

bank”

Citigroup Citi FinTech

development of its mobile banking

services

GFT Group 24.11.2015 13


Focus on Consumers

Within five years 80% of interactions will be online or mobile. Banks play defense againts new entrants

(Google, Amazon, Alibaba,...)

Barclays Bank- Pingit:

send/receive money instantly &

scan items in shop windows

Garanti’s iGaranti (Turkey) &

Standard Chartered (China): app

sends alerts on special offers for

your favourite shopping brands

Bank of America: analyses

transaction data to give customers

cash back on transactions at

frequently used merchants

Commonwealth Bank (Australia)

offers a mobile app that uses

“augmented reality” technology to

help with home- buying

GFT Group 24.11.2015 14


GFT Group 24.11.2015 15



The relationship with

customers has changed


GFT Group 24.11.2015 17

Customers are demanding more servicesTHE RELATIONSHIP W ITH CUSTOMERS HAS CHANGED

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What do I have to do?

… and you may not know it.

GFT Group 24.11.2015 19

The pillars of Digital TransformationW HAT DO I HAVE TO DO?

Technology Transformation (Agile Banking/Insurance)

• Innovation

• Methodology

• Dev. Architecture

• DevOps

Digital

Transformation

Organizational Change

• Digital Banking Vs. Traditional Banking

• Design Thinking to drive digital innovation through

the whole organization

• Agile methodology adoption

Human Centric Approach

• Customer Experience: Design thinking/service design

• Big data & Analytics

• Omni-channel

GFT Group 24.11.2015 20

InnovationW HAT DO I HAVE TO DO?

Innovation starts when we ask

ourselves a question or have a

problem to resolve…

a challenge

How can we give service to a

new segment?

DesirableAbstract and

unclear

Viable Specific and

profitable

CHALLENGE RESEARCH CONCEPT DESIGN EVALUATION

Innovation process

How can we improve the

experience of our clients,

starting from this channel?

How can we improve the

acceptance and perception in

the market?How can we reduce the Customer Effort of

our clients and be present in a transparent

way in their day to day?How can we improve the commercial

proposal empathizing with them? How can we reinvent the

sector in which we operate?

GFT Group 24.11.2015 21

The key to Evolution: Agile Banking

• Agile Banking is a cultural movement, it’s all about people

• The basis is the collaboration across roles, with the focus on business instead of silos (departments),

trust and confidence and a high degree of learning by failing:

• Requires management commitment and collaboration with the teams (Business and IT) to create a

culture of collaboration and sharing

W HAT DO I HAVE TO DO?

Fail Often

Fail Fast

Fail Cheap

GFT Group 24.11.2015 22

Agile BakingW HAT DO I HAVE TO DO?

New methodologies allow IT and

Business teams to work together in an

agile environment

“Disruptors don’t set out to beat you at your

own game — they change the rules.”

Application of agile and

lean procedures

throughout the entire IT

supply chain within the

organization

“Revenues are going to

be generated in Real-

Time (mobile)”

Application architectures

thought to improve the

continuous delivery of

functionality to the customer

“Transform the retail banking

account into a primary

financial App” (Moven)

Methodology

DevOpsDev.

Architecture

Agile

Banking

GFT Group 24.11.2015 23

Methodology – Continuous DeliveryW HAT DO I HAVE TO DO?

Financial services are facing challenges from different areas and competitors. An agile deployment process is required,

Continuous Delivery allows to reduce the costs, time and risk of the solutions.

Customer Management SCRUM & Full-stack

Open APIs Big Data

• Moving to a customer centric

model to respond more precisely

to the demands of end users

• Focus IT development on the user

experience

• Scrum allows to development and

business teams to be aligned during

the whole project

• New cross-teams profiles can speed

up the development

• Banks can disseminate his financial

services with minimum effort and cost

• New applications with financial added

value totally integrated in the unique user

experience

• Clients have 24x7 full access to the bank

services from any application

• High levels of personalization are

demanded by customers

• Faster and better decision making

• New products and/or services

based on data analytics

GFT Group 24.11.2015 24

Agile Banking – Dev. ArchitectureW HAT DO I HAVE TO DO?

Financial Institutions are increasingly dependent on software and IT.

The increasing complexity of the solutions and the rapid technological and business changes make the systems less

responsive over time.

Agile Development Architecture is composed by a set of patterns and principles to be used building new software or

evolving existing applications.

Collaborative Architecture

- Emerging Design: implement only

the required architecture to support

the next increment of functionality.

- Intentional architecture: mid term

planned architecture considering

trends not easily perceived by agile

project dedicated teams, and giving

guidance for Emerging Design

- Collaboration: between Emerging

Design and Intentional Architecture

Program

Increment

Design architecture

incremental and

always running

Keep it simpleUse always the

simplest architecture

supporting the

objectives

Model to solve doubts

Build rapid prototypes when

there is any doubt about

architecture decision

Testable Architects and

developers must

collaborate to

continuously

design

architecture for

testability

No MonopolyInnovation is a

culture, ideas can

come from anyone

from anywhere

Architectural

journey Architecture must be

applied in an Epic itself

in order to drive

changes across all the

organization

GFT Group 24.11.2015 25

DevOps - FoundationW HAT DO I HAVE TO DO?

Continuous Delivery Integration:

The base for any DevOps approach. A

multi-vendor capable system to allow

continuous build and release of

application code

Automated Environment

Provisioning:

This component allows on-demand

provisioning of environments for its

target activity. Includes auto deploy and

decommission after completion of

activity

Automated Application Testing:

It enables as much as possible the

automation of the different testing

stages an application release has to run

through before getting the “Production

ready” status.

Orchestration:

The Orchestration engine is responsible

for bringing together the different

components.

It is the core automata of the complete

development cycle from the DevOps

perspective.

Basic requirements

and components to

have in place to found

a DevOps approach

DevOps

C.D

.I.

1

A.E

.P.

2

A.A

.T

3

Orchestration 4


Success Stories

GFT Group 24.11.2015 27

BBVASUCCESS STORIES

Technology Transformation (Agile Banking)

• Move to an omni-channel solution to deliver, what customers

need, faster

• Front architecture: 3 changes over the last 5 years to adapt the

solution to the customer requirements

• Adopting a DevOps discipline to facilitate new functionalities

deployment


• Customer data governance to understand customers’ need

• BBVA Data Analytics Lab, allows data scientists to provide more

personalized offers or information

• High investment in UX, BBVA acquired Spring Studio a UX

company based in San Francisco

• Real time architecture implementation. To identify real interactions

from customers, to be translated into commercial events


• Innovation first, BBVA has deployed an internal department to

deliver innovation to every solution

• Every project has to be developed by an Agile methodology

GFT Group 24.11.2015 28

BankiaSUCCESS STORIES


• Move to an omni-channel solution to deliver, what customers

need, faster

• Adopting a DevOps discipline to facilitate new functionalities

deployment


• Analysis of the different type of users and deploy a fully adaptive

solution based on the user

• User Experience analysis before any development:

• Interaction Design

• Organizational Model

• Information Architecture

• Prototyping


• New internal department to drive digital transformation within the

company

GFT Group 24.11.2015 29

BBVA SegurosSUCCESS STORIES


• Information architecture to facilitate navigation and search

functions

• Quick quote conceptualization to increase bookings

• Investment in data analytics

• Use of a CMS to improve the content maintenance


• New customer area to meet its needs:

• Claim/incident tracking

• Billing history

• Search engine optimization

• Testing with real clients


• New corporate model definition

• User eXperience and Design dedicated teams

• All the projects managed internally, close relationship

Development-Business-Providers

GFT Group 24.11.2015 30

WibeSUCCESS STORIES


• Architecture of channels and comprehensive technical leadership

defining the architecture of both: Front and Service Orientation

• Development of reusable components for Frontend and Backend

• Mobile apps evolution from hybrid to native, reducing the

maintenance


• Extremely competitive time to market. Platform readiness in 5

months, covering both public and private areas


• Development of channel platform into a 100% digitally oriented

World

• On-line positioning over off-line campaigns

Thank you

GFT

Manuel Lavín Delgado

Head Global em Digital da GFT

T +34 917 102 423

F +34 913 728 311

[email protected]

agile banking ita7502df7-3fca-4b06-a8be-d8ab2abf6e3… · fail often fail fast fail cheap. gft...

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