top ten trends in banking 2017

Banking Trends for 2017

2Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Banking Trends 2017

FinTech firms are Being Considered as Partners Rather than Competitors

Banks are Using Open APIs to Monetize their Digital

Assets and Data

There is a New Shift in the Banking Business Model

where Banks will be acting as a Platform to many

FinTech Firms

Banks are Investing in Cyber Security Systems

with the Increase in Cyber Threats

Banks are Increasingly Adapting Public Cloud Services as it Provides Flexibility and Agility

Banks are Testing Augmented Reality to Provide Enhanced

Customer Experience

Banks are Working Together to Identify and Understand the

Use Cases of Distributed Ledger Technology

Banks are focusing on Cognitive Banking to

provide them an Edge over Competitors

Banks are looking to Increase their Efficiency and

Productivity by Investing in Robotic Process Automation

Banks are using Biometric Authentication Tools to Combat

Identity Thefts and Fraud

Source: Capgemini Financial Services Analysis, 2016



Banks are collaborating with the FinTechs to drive innovation and meet evolving customer

expectations

59.3%Banking executives agree that FinTechs are setting the bar higher

77.8%Banking executives say that FinTechs provide opportunity to partnership

Incubators/ Accelerators

Investing in FinTechs

Acquiring FinTechs

Innovation Labs

Partnering Collaborating

Source: Capgemini Financial Services Analysis, 2016; World FinTech Report, Capgemini 2017



Banks using Open APIs with an aim to monetize and improve customer experience

Monetize

Innovation

Agility

Cost Reduction




Banks as a platform will be a complete shift in the banking business model

One stop shop for customers

Ability to innovate

Minimal infrastructure

Technology expertise

Increase agility and efficiency




Increasing data breaches compelling banks to strengthen their security systems

25%Respondents think cyber risk is the top

threat in financial services industry

$400 bn

Estimated cost to business due to cyber

attacks in 2015

$2.1 bn

Is the estimated cost of breaches in 2019

globally

$202 bn

Is the expected value of market for cyber security by 2020

Source: Capgemini Financial Services Analysis, 2016; SYSTEMIC RISK BAROMETER, DTCC, 2016; Cyber Crime Costs Projected To Reach $2 Trillion by 2019, Forbes, Jan 2016, http://www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#6d85c2f3bb0c



Banks are increasingly moving towards public cloud-based banking infrastructure

19.4%CAGR growth in IT spending for public cloud service from

2015 –2019E

$6.8 bn

IT spending for public cloud services for banking in 2015

Scalability

Flexibility

Agility

Source: Capgemini Financial Services Analysis, 2016; Worldwide Public Cloud Services Spending Forecast, IDC, Jan 2016



More and more use cases emerge for the usage of Augmented Reality applications

Source: Capgemini Financial Services Analysis, 2016; https://thefinancialbrand.com/39309/augmented-reality-place-bank-branches/

Enhancing Shopping Experience

Education and Recruitment

Virtual Branches and Advisors

Location Based Services

Cross-sale Opportunities Enhancing Banking Experience



Banks are exploring the feasibility of distributed ledger technologies

Source: Capgemini Financial Services Analysis, 2016; https://www.ft.com/content/eb1f8256-7b4b-11e5-a1fe-567b37f80b64

Collaborative Projects

R3CEV

Hyperledger Project

Ripple (Payments)

Eliminating Intermediaries

Enhanced Security

Transparency

Reliable and Error Free



Cognitive systems are finding application in almost all banking areas

Source: Capgemini Financial Services Analysis, 2016; http://www.ipsoft.com/wp-content/themes/ipsoft_v2/images/v2/pdf/IPsoft_Tomorrow_AI_enabled_banking.pdf; https://www.evry.com/globalassets/insight/bank2020/the-new-wave-of-artificial-intelligence---labs-whitepaper.pdf

Front Office

Customer Facing AI - Chat bots, Cognitive

Agents

Back Office

Cognitive Advisors, Robotic Process Automation

SupportAI and Cognitive Enabled Analytics

Complia-nce

AI Enabled Expert Systems



Banks are looking increase their efficiency by investing in Robotic Process Automation

Source: Capgemini Financial Services Analysis, 2016; http://ayehu.com/role-robotic-process-automation-banking-industry/

Increased Efficiency

Lower Operational Costs

Productivity Improvement

Shorter Processing Time



Banks are using biometric authentication to combat identity thefts and fraud

Source: Capgemini Financial Services Analysis, 2016; Technology Insight for Biometric Authentication, Gartner, 2016; https://letstalkpayments.com/7-trends-in-biometric-technology-as-it-applies-to-fintech/

$112 bnAmount identity

thieves have stolen from US consumers in

past 6 years80%

Firms will change their fingerprint biometric

method to combination with behavioral by end

of 2019

Biological Traits

Behavioral Traits

Combat Identity Theft and Fraud

About CapgeminiNow with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

The information contained in this presentation is proprietary.© 2015 Capgemini. All rights reserved.

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top ten trends in banking 2017

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