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Transformation Strategy Modernize into next generation banking

شرکت خدمات انفورماتیک سید ابوطالب نجفی

هفتمین همایش نظام هاي پرداخت1396بهمن

فهرست مطالب فشار تحول در بانکها•

• Pressure of Disruptors on Banks تهدیدها از طرف فین تک ها •

• Novel Threats From Finteches وضعیت بازار و چالش هاي بانکها •

• Market Conditions & Challenges روندها در بانکداري خرد •

• Top 10 Trend in Retail Banking وضعیت بانکداري در ایران •

• IRAN’s Banking Industry

IBM – Gartner - Capgemini: مراجع•

Banking with no banks ?? Banking with no banks ?

انقراض دایناسورها

بیل گیتس بانک ها دایناسورهاي عصر مدرن هستند که نسل شان رو به انقراض است

banks

Banking is experiencing unprecedented levels of disruption فشار بی سابقه تحول بر بانکها

Banking is highly vulnerable to disruption

33% of millennials believe they don’t need a bank at all1

68% of millennials say the way

they transact money will be totally different1

of banking and financial markets CXOs expect more competition

from other/new industries2 52%

“[We are in a] fight over who will be the most intimate partner of the client. The bank? Facebook? Mobile operator? Mobile phone manufacturer?”

CEO of a leading eastern European bank3

“[We are in a] pricing conundrum. Main lines of services do not make money or break even, and auxiliary or value added services are now compressing offered by many”

CEO of a leading North American bank3

Xx

•Omni Channels (Mobile The age of new channels •, …)

•Smart Wearables

The age of new product mix •Banking & Non Banking Products

•Growth of non-interest income

The age of new insight •Data Analytics

•Risk management

The age of new value propositions •Life stage & Life Style Driven •Instant offers & gratification

Financial Institutions

These forces are pushing financial institutions towards a new era

The

age

of n

ew c

ompe

titio

n •

Fint

echs

The

age

of n

ew re

gula

tions

The age of new customers •Digital natives

The age of pervasive Digital •Blockchain

© 2016 IBM Corporation 8

Financial Events • Overdraft • Pay Raise • Award • Crisis

In College

Career Change Starting a

Business

Kids in College

Teenager

In a Relationship

Graduation

First Paycheck

Getting Married

Growing Family

Relocation

Buying a House

Retirement

Empty Nester

Inheritance

Parent Care

Buying a Car

Behavior Changes • What we spend • When we spend • How we manage • Where we go

Life Events

Risk and Fraud • Credit decisions • Fraud detection • Fraud protection

Customer Service • Sentiment • Social Insights • Proactive Care

Banks can derive tremendous value from data and analytics … but they struggle to create real-time customer insight.

Imperative: Create customer-focused enterprise

Sms subscription cost Sms promotion ?? Sms incidents

© 2016 IBM Corporation 9

Example customer-focused enterprise use cases

Optimize Offers & cross-sell

How can I anticipate customer needs and deliver more timely,

relevant offers?

Leverage Social Media for Customer Insight

How can I gain new customer insight from

social media data?

Contact Center Service Optimization

How can I anticipate customer issues and resolve them

more efficiently?

Analyzing transactions, payments, channel interactions

and anticipated spending to deliver real-time offers

Uses analytics for near-real-time decision optimization for agents to improve the

customer experience

Analyzed tweets to discover life events and build deep

customer profiles that enabled micro-segmentation

50% better response on offers, 98% increase in client

interaction metrics

Increased revenue generating leads by 76% and cut costs

by 10%

Increased inbound conversion rates

by 20%

Major Retail Bank Multi-National European Bank Japanese Bank

Advertise/publicity in Iran banks and rest of the world

© 2016 IBM Corporation 10

Novel threats from Fintech startups

Source: CBInsights

• VC-funded startups moving quickly into competitive positions in market niches

• $13.8B invested in 2015, $9.4B in 1H 2016 (e.g., Betterment has raised $200M and currently has $5B assets under management)

Fintechs : Open banks Innovation on customer interactions New B/L Low costs Agility Identify banks legacy systems and weakness ISC Support of F/T in Seminar

© 2016 IBM Corporation 11

Market Conditions & Challenges

PERFORMANCE ISSUES

Revenue has been flat with limited prospects for future growth Pressure to improve Return on Equity, mid-size banks downsizing

INCREASING REGULATION

Regulatory environment and pressure at all time high (complexity, overlap, cost) Many financial institutions are transforming Operational Risk and Compliance

RISING FRAUD & CYBER CRIME

Fraud schemes, channels and techniques continue to increase in complexity, scale and frequency Cyber attacks getting more sophisticated and increasing security costs

CUSTOMER EXPECTATIONS

Customer demanding instant access, mobile, personalized service. All clients expecting banks to have greater understanding of their needs in every

context.

NEW COMPETITION

/ PLAYERS

Non traditional competitors driving innovation (e.g. Apple Pay, Google Wallet) Competition from new niche-focused, VC-funded Fintech entrants

Definition of tier 1,2,3 banks in Iran Iran’s core bank requirement and expectation compared to its regulation, structure, processes and management

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Technology Revoloution !!!

not Technology Evoloution

مواجهه ما اینجاست

AI Crypto

01: Investing in Digital Transformation

02:Higher Collaboration between Banks and Fintechs

03: Digital IDs to enhance Cybersecurity

04: Distributed Ledger and Blockchain

05: AI and Robotic Process Automation (RPA)

06: Analytics

07: Use of Cloud Services

08: Digital-Only Banks

09: Alternative Lenders (P2P Lending, … )

10: Open Banking

Top 10 Trends in Retail Banking - 2018

)Open Banking(فین تک ها بازکردن درهاي بانک ها به سوي •با Access to Customer Account (XS2A) –امنیت بالاتر جهت دسترسی به حساب مشتریان •

Strong Customer Auth (SCA)استفاده از شفافیت و کاهش کارمزدها با توجه به استفاده از حساب • فضا دادن به فناوري ها و سرویس هاي جدید• بانکها Ecosystemایجاد بازیگران جدید در •

• Third Party Providers (TPP): • Payment Initiation Service Provider (PISP) • Account Information Service Provider (AISP)

•Scope شامل پرداخت نقد و چک نمی گردد(فقط پرداخت هاي الکترونیکی(. European Banking Authority (EBA)شده به وسیله تدوین • بیشتر مشتري در مقابل جعل و تقلبحمایت •

PSD2اهداف

Cognitive computing

Digital network

Enabling infrastructure

Business ecosystems

The bank

Mobile and social

Omni-channel

Analytics

Digital operations

Customer value chains

Customer economic choices

Integration

Big data

IT infrastructure

Security

Resilience

Natural language processing

Machine learning algorithms

Ecosystem services and partners

Cognitive analytics

Within this trend, a new type of bank is beginning to emerge – the cognitive or Intelligent bank

Combined with other transformation engines, cognitive helps banks orchestrate metadata to produce massively expanded business value

Information value

Technology value

Optimize IT

Analytics on structured

data

Mobility & distributed computing

Technology led disruption

Knowledge- led disruption

Natural language processing and

machine learning

Analytics on structured and unstructured

data

Cognitive Digital Physical

Cognitive will expand the business potential of banking across the board, enabling entirely new areas and forms of innovation

Decisions in board??

Banks need specialist skills and cognitive expertise to move forward

12%

21%

33%

36%

36%

38%

40%

43%

45%

60%

Lack of leadership support

Insufficient data for decision making

Undefined return on investment measures

Legal, security and privacy concerns

Concerns about inappropriate use of data

Reservations about maturity of existing technology

Other competing priorities or initiatives

Internal organisational resistance

Lack of data governance and policies

Lack of skilled resources and technical expertise

Lack of skilled resources, data governance and policies, combined with organizational resistance are identified the top three barriers to implementing cognitive

وهوشمند بانکداري دیجیتالمسیر پر پیچ و خم

Banking Industry Reform

Sanctions Relief

CBI new roadmap

Strong Banking Industry

President Rouhani has pledged to reform the banking sector

under his tenure, and we expect efforts to liberalize the industry to

take place over the coming years.

Banking industry need to fuel and support Iran’s post sanction

economic growth.

Banking industry has the actual and potential size for major

players to realize economies of scale.

Most of the larger banks have significant experience in

international trade. The public sector banks have the

full backing of the Iranian government.

Sanctions relief will boost economic growth notably. Iran's banking sector will benefit from the removal of most sanctions at the start of 2016, especially as the banks now have access to SWIFT. Lending growth will pick up in line with an improving economy, and low base effects and lower inflation will ensure sustained deposit growth.

Iran’s Banking Industry

New banking

era is emerging!

Reconnection with the world financial institutions is one of important goals CBI has. Compliance with international banking standards is a pivotal factor. International companies establishing presence in Iran would need world class service.

وضع می کنند آنها که سریع حرکت می کنند منافع را دراختیار می گیرند و استانداردها را . . .و به شراکت هاي صنایع متقابل شکل می دهند،

. سایرین باید از آن ها تبعیت کنند

Cross Industry Partnership

با سپاس