the fintech moment

The FinTech MomentSeparating the Signals From the Noise

September 2016Guruprasad GaonkarFinancial Services Industry Leader, SAP

© 2016 SAP SE or an SAP affiliate company. All rights reserved. ‹#›Confidential

AGENDA

Digital Experience Report Thailand

Innovation Examples

Technology Imperatives

The Fintech Moment

Digital Experience Report Thailand


53%DELIGHTED

16%UNSATISFIED THAILAND DX

37%

74%NPS

-63%NPS

77%LOYAL

10%LOYAL

THERE IS A POSITIVE DIGITAL EXPERIENCE (DX) SCORE IN THAILAND

TOP 3 DX ATTRIBUTES THAT MATTER TO THAI CONSUMERS

Digital Gap

Gap Matters

CUSTOMERS WILL DISCLOSE INFORMATION IF DELIGHTED

51% Personal ProfileHealth or Medical RecordsPersonal Finances

47%47%

SecureIs safe and secure

AvailableAvailable anytime on my terms

SimpleFits in with my life and is effortless

47%47%46%

Thai Digital Experience Research Findings


ALL RESPONDENTS HAD SOME KIND OF DIGITAL

EXPERIENCE WITH ATLEAST ONE OF THESE INDUSTRIES:

QUESTIONNAIRE COVERAGE

SATISFACTION WITH DIGITAL EXPERIENCE (GENERAL)

SATISFACTION WITH DIGITAL EXPERIENCE (BY INDUSTRY)

SATISFACTION WITH DIGITAL EXPERIENCE FOR INDIVIDUAL COMPANIES

NET PROMOTER SCORE®(NPS®)

LOYALTY

FINANCIAL SERVICES

TELECOMMUNICATIONS

CONSUMER RETAIL

UTILITIES

Methodology, ResultsTop Brands In Thailand

Male 51%Female 49%

18 - 24 years 14%25 - 29 years 9%30 - 34 years 10%35 - 39 years 11%40 - 44 years 10%45 - 49 years 10%50 - 54 years 9%55 - 59 years 8%

60+ years 19%

Only Two Financial Services Organizations Among The Top 10 Brands In Thailand

The FinTech Moment


Thailand’s Digital Economy

Source: Temasek & Google; Bain & Co; ITU; Thailand’s Telecom Market; eMarketer

41 million Internet Users

40 millionSocial Network Users

84.8 millionMobile Subscribers

23 millionDigital Consumers

USD 0.9 billionE-Commerce Market


Historical Moats Surrounding Financial Services Industry Are Not Different

Special status of being regulated institutions that supply credit, the lifeblood of economic growth

Have sovereign insurance for their liabilities (deposits)

Ubiquitous distribution through branches,

BUT,

Unique expertise such as credit underwriting underpinned both by data and judgment,

Consumer Inertia


Financial Technology Companies Are Everywhere


Digital Divide of The Balance Sheet

Origination and Sales - the focus `of non-bank attackers – account

for about 60% of your profits


Dismiss The Noise or Panic And Overact?

Financial Services organizations should be less preoccupied with individual FinTech attackers and more focused on what these attackers represent –and build or buy the capabilities that matter for a digital future.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Confidential

Innovation Examples


Suppliers& Networks

CustomerExperience

WorkforceEngagement

loT& Big DataSecurity

Digital Core

Digital Business FrameworkHolistic Approach to Digital Innovation

Digital Business strategy needs to take into accounts 5 pillars of digitization:

Customer Experience

Core Business Processes

Supplier Collaboration

Workforce Engagement

Machine Data and Big Data


Customer ExperienceRoboAdvsior Chat and Voice Bot

Use of Artificial intelligence, natural language processing, voice recognition John is a millennial on the move, and wants his virtual banking assistant to perform mundane banking tasks like checking bank balance, doing payments etc. His chat and voice bot recognizes the voice / written text and carries out these basic banking services for him.

The chat Bot tells him his balance and on his instructions transfers money to his family members account. If the details of the account are not there, Chat will intelligently ask him about the account details.

The virtual banking assistant even suggests savings plan / recurring deposit and fixed deposit for the surplus money in his account


Digital CoreWorld’s First Real Time Payment From Canada to Germany Using Blockchain Technology

B&P plat-form

SAP Payment Engine

SAP HANA Cloud

Platform

SAP Splash/

Mobile UI

Ripple Connect/ Gateway

MT 103

Ripple Console

1.. 2.. 3.. .. .. .. 20Sec


Machine Learning & Big DataPredicting Customer Churn for proactive Customer Retention

John has realized that a large number of customers have left the bank recently.

He logs into “Customer Retention Insights” and notices that the churn ratio is expected to increase dramatically in the next 3 months. He wonders what will cause the high increase of churn ratio. He identifies the top reason as frequent ATM problems. He asks his assistant Robert to identify the top “at risk” customers.

Robert identifies a worklist of the top 100 customers who are most likely to leave the bank. He asks Sarah to call up the customers and find ways to retain them.


IoTSmart Insurance

� Connect to Weather reports to identify probable natural disaster

� IoT Platform calculates the probable cost of insurance claims

� Dashboard is updated and notifications including alarms are fired� Push notifications are also sent to customers to prepare for natural disaster

Trigger underwriting risk review of New policy creations coming from affected areas


Workforce EngagementSmart Recruiting

Technology Imperatives


Suppliers& Networks

CustomerExperience

WorkforceEngagement

loT& Big DataSecurity

Digital Core

Digital Business FrameworkHolistic Approach to Digital Innovation

Digital Business strategy needs to take into accounts 5 pillars of digitization:

Customer Experience

Core Business Processes

Supplier Collaboration

Workforce Engagement

Machine Data and Big Data

This Simple Framework Is Helping Many Companies Develop A Pragmatic Approach To Developing A Digital Strategy.


PlatformHANA Platform

VORA

any DB Hadoop

SAP HANA Cloud Platform Enabling Fintech Collaboration

HANA Cloud Platform

(Micro-) Services

IoTPlatform

IoTBusiness Network

Analytics

C4A

Applications Extensions 100,000+ Developers (including partner ecosystem) producing more than 1000 enterprise applications today on the SAP HANA cloud platform. So more of these co-innovations can come from ecosystem external to your organization in the Digital Economy.


SAP For Financial Services Industry

19,000+ Financial Services Customers

120 Countries

180+ Core Banking

100M + Live Bank Accounts (+75M in implementation)

200+ Mobile and / or Internet Banking

45% of Capital Markets Front and Middles Offices

300+ Core Insurance

400M+ Claims Handled

1,000+ Database

160+ Cloud

More than 2, 700 SAP FSI customers in APJ

Thank You Guruprasad GaonkarFinancial Services Industry LeaderSAP South East Asia

[email protected]: http://sg.linkedin.com/in/ggaonkarTwitter: @iGuruGaonkar

www.sap.com/dxr/Join the conversation #seadxr


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