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Digital Core - Creating the foundation for digital success

Don Free

Research Vice President

1 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Banks must make the transition to

become a platform business

…and there’s less time than you thinkThrough 2019, every $1 enterprises invest in innovation will require an

additional $7 in core execution

2 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Digital Giants Are Invading Banking With Platforms

Retail/Personal Banking Wealth Management and Private Banking

Corporate/Business Banking Investment/Merchant Banking

Lending

Cards

Mortgages

Student Lending

SMB

Insurance

Payments

Portfolio Management

Financial Planning/Advice

Real Estate

Invoice Financing

Financing

Transaction Banking

Document Management

Capital Raising/Underwriting

Market Making

Syndications

Research

Investor Relations

WeChat

3 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Continuous Delivery is the New Business Mantra

Objective We Must Therefore

Success

Enable Faster

Protect Slower

Conflicting Objectives Continuous Delivery

Automated Process Pipeline

ContinuousIntegration

System

Environment Management

Engine

Approval and Toggling

Feedback MechanismsProduction Deployment

Automatic Test Harnesses

Develop

Deployment Orchestration

Engine

Source: "Extending Agile With DevOps to Enable Continuous Delivery" (G00297128)

4 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Future State of the Market — Digital to the Core

5 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Banks Will Use Holistic Platforms to Outpace Competitors

EcosystemPortal

Marketplace

APIs

Pla

tfo

rm

Other Partners

Deposits

Loans

Payments

Built by the Bank

Built by Partners

Integration With Partners Fintechs

BlockchainSmart Current Account

CustomersEmployees

Partners

Customers

Bu

sin

ess

Eco

syste

ms

Digital Advisor

Source: Gartner (July 2016)

Core Banking

Algorithm Abstraction Layer

Internal Development

6 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Session Speakers

Shaida Lynch

Vice President of Business Technology

Discover Financial Services

Sridhar Nagarajan

Chief Executive Officer

Maubank