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The Digital Banking HubThink in new scenarios to cope with digitalisation
Prague, 31 May 2016
The situation…
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Fundamental change in banking ahead:Digital overtakes regulation in banking
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Frequency of Google Search Terms “Financial Regulation”
and “Fintech”; Google-Trends-Index. Chart source: NZZ, 25.9.2015
“The rush to implement new digital technologies has
overtaken regulatory worries as the highest priority for
global banking executives.”Source: Economist Intelligence Unit, 2015
Google search for «Fintech»
Fundamental change in banking ahead: Too much to handle?
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Redefining customer expectations
Redefining industry boundaries
Fundamental change in banking ahead: Is it really as bad as this?
5Source: banknxt.com
6
?
Source: americanbanker.com, 2015 Source: Deutsche Bank Research, 2015
Banks risk to be «unbundled» in the future vs.Banks are in a good position to orchestrate their own digital ecosystem
Banks have to think in new scenarios to cope with digitalisation
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Sources: thedrum.com; credit-suisse.com; JPMC annual report, 2015
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Banks have to think in new scenarios to cope with digitalisation:Examples of cooperation areas in digital wealth management
8Source: World Economic Forum, The Future of Financial Services, 2015
The situation……and how to resolve it
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Banks have to think in new scenarios to cope with digitalisation:The questions that emerge…
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We want to quickly integrate new
capabilities from fintechs
We want to develop own applications on
top of all
We want to modernise legacy systems without touching them
We want to be able to differentiate and to adapt constantly
We want to integrate our offering into third party environments
We want tobe flexible to pursue new business models
How can all this be orchestrated?
We want to freely customize the digital
banking front end
We want to provide one seamless user
experience, globally
?
Why a Hub?
PRODUCTION
HUB
POINTS OF SALES
CONSUMERS
Source: www.sustainableamerica.org/blog/what-is-a-food-hub
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Yesterday: The bank-centric view => omni-channel delivery
Clientadvisors
ClientSelf-Service
Com-munities
Bank services
Inter-mediaries
PRODUCTION
POINTS OF SALES
CONSUMERS
Digital Banking PortalThe bank with a «closed shop» productionThe portal mostly for one-way distribution
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Tomorrow: The client-centric view => financial eco-system
Clients & Advisors
Bank ServicesFintechs 3rd party / lifestyle
API
PRODUCTION
HUB
POINTS OF SALES
CONSUMERS
Digital Banking
Hub The bank in the role of the
service orchestrator The Hub for open and
omni-directional exchange
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3rd Party / Lifestyle => Beispiel
Presentation title, Date © CREALOGIX 14
Lifestyle vs. Banking: …find the bank
15
Presentation title, Date © CREALOGIX 16
The evolution towards the Digital Banking Hub
Advantages for clients and banks
Digital Banking Portal
Digital Banking
Suite
Singlepurposebankingapp/tool
FunctionalCapabilities
OrchestrationCapabilities
Digital Banking
Hub
Advantagesfor the client:
all-in-one, personalised, seamless, securebanking experience
Advantagesfor the bank:
enriched offers personalised offers increased usage easier client aquisition increased cross-selling flexible business models innovation enabling lower costs
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APIs are everywhere…but quite new in bankingYou will see a lot more in the future
18Source: http://www.openi-ict.eu/openi-api-framework-part-i-studying-the-landscape-of-cloud-based-services/
But APIs per se do not resolve the orchestration issue…See e.g. «death by (banking) notifications»
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ClientsAdvisors / Partners 20
PRODUCTION
HUB
POINTS OF SALES
CONSUMERS
The Hub allows new types of API-based «open» but unified services
API
Content Management
Notifications& Alerts
Configuration & Personalisation
Authentication & Authorisation
Messaging
Campaign Management
Bank Services
Fintechs 3rd party / lifestyle
Digital Banking
Hub
API-based «open» Banking will Change the Landscape
21http://zanders.eu/en/latest-insights/how-open-banking-will-change-the-banking-landscape
Before PSD2 and XS2A With PSD2 and XS2A
PSD2= Payment Service Directive 2XS2A= Access to Account for TTPTTP= Third Party Provider
The Hub opens new dimensions in digital banking
The Hub is able to aggregate information from very different types of sources and to provide them to the front end for a seamless and unified presentation.
For all orchestration purposes, the Hub manages elaborated rights management to enforce highest security and therefore no loss of control.
The Hub can connect to services outside the bank and exchange information in a standardised way to enrich client offers with additional features or insights.
The Hub allows to integrate innovative cloud services in a secure way.
The Hub connects to services from partners or user communities.
New digital business models can be developed, the Hub allowing a quick assembly of relevant services.
The Hub helps to modernise legacy systems by packaging “locked” and valuable information with accessible interfaces.
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Digital Banking
Hub
My Personal Hub = my personal financial eco-system
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Added value services to solve everyday financial issues, combined into one single app
Integration of location based services Integrated loyalty and bonus programs
for bank clients External 3rd party offers which lead
towards sales execution of internal banking products
How can such a eco-system look like…?
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The Hub enables the bankto build its own eco-system
Source: http://www.uxbooth.com/articles/designing-digital-strategies-part-2-connected-user-experiences/
The Hub enables the bank to build its own eco-system
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Seamless Online Banking LayerClients (strong authentication):- Comprehensive digital banking functionalityProspects:- Onboarding, risk profiling, simulations, proposals
Community/Social Layer- Client communication with the bank
- with advisor, relationship manager- Client to client information exchange
- Communities for specific topics
Marketing Layer- Content Marketing within the bank
- Cross selling & up selling- Recommendations & offers
- Extended & External Content Marketing - Additional activities & lifestyle topics:
Games, travel, living, family, sports, ...
3rd-Party / Fintech Layer- Orchestration of external applications via APIs- Integration of 3rd-party data feeds and data exchange
Outside-in:ProgressiveMembership
Inside-out:Client«Activation»
Fundamental change in banking: Use the Digital Banking Hub
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Adaptation cycles
Record Keeping
E-Channel
Digital Eco-System & Orchestration
Core Banking
Traditional E-BANKING
DIGITAL BANKING HUB
Short cycles demand a highly flexible & open solution
Recurring Impacts
Change incustomer behaviour
Competition fromfintech disruptors
Newregulations
Consumerisation oftechnologies
The Hub enables digital transformation
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Rich, interactive content experiences for increased client engagement and
collaboration
Multilayered and open architecture with outstanding user
experience across all devices and channels
Broad spectrum ofnew digital services -
available fast and secure in convenient
modules
API based seamless integration of offers
enabling new business setups and revenue
models
New Interactions
New Technology
New Functionality
New Reach
Client Centric Digital Experience
Clear Differentiation
Client
Tim
e t
o M
ark
et O
pen In
no
vation
Digital Banking
Hub
The Hub enables digital transformation
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"When it comes to the hot topic of what digital means to today’s banks, too many companies are “Playing Not to Lose” vs. “Playing to Win.”
Digital Banking
Hub
Source: Robert Wollan, Acccenture
«It’s Time toPlay to Win»
CREALOGIX Group retweeted
Richard Dratva @RichardDratva ∙ 31 May
Thank you for your precious time!Keep it going – join the conversation #DigitalBankingHub
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