@joukpleiter & @jelmerdejong

Building the 10x better bank

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New Competitors in Banking

New competitors in banking

3

Shift in Customer Demand

New competitors in banking

4

Shift in Competitive Landscape

New competitors in banking

05

1015202530

5

Who do you see as the Biggest Threat?

New competitors in banking

6

Where are you Investing?

0% 50% 100%

Digital Channels

Customer Service & Experience

New Products & Services

Physical channels distritbution

Core Systems & Processes

Increase

No Change

Decrease

New competitors in banking

1.  Start with the customer experience2.  Pursue an omni-channel delivery model3.  Make mobile the key growth channel4.  Regain control over your digital strategy5.  Digital Transformation Economics

In short: Beat the Disrupters at their own Game.

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Digital Transformation – Disrupt Yourself

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Customer Experience: The Key Ingredients

Customer experience: the key ingredients

0 5 10 15 20 25 30

Too many silos

Shortage of quality people

Projects take too much time

High costs

Nu support from senior management

No or low customer culture

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Customer Experience Roadblocks

Customer experience: the key ingredients

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Challenge: Too Many Silo’s

Secure Portal 1

Secure Portal 2

Mobile App 1

Mobile App 2

Intranet App 1

Extranet App 1

Customer experience: the key ingredients

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Move to a Unified CX Layer

Customer Experience Platform

SuperiorExperience

Personal & Relevant

Fast & Frictionless

AnytimeAny place

Application Integration

CRM Integration

Process Integration

Security & Compliance

Existing Systems CRM Processes IDM

SSO

Customer experience: the key ingredients

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A paradigm shift: Outside-in Approach

Outside-in Customer enablement

Inside-Out Web/Mobile Enablement

Customer experience: the key ingredients

13

Enabling Seamless Customer Journeys

Source:

Customer experience: the key ingredients

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Challenge : Projects take too much Time

Customer experience: the key ingredients

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A paradigm shift: Two Speed Architecture

Customer Oriented Functions

Back Office Functions

Leverage Pre-build Digital Accelerators

Customer experience: the key ingredients

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Launchpad Widgets Retail | Wealth | Commercial

1

Customer experience: the key ingredients

Culture & Process - New Digital Power Values

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Old IT Power Values New Digital Power Values

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Omni-channel and the changing channel mix

Omni-channel and the changing channel mix

61%25%

8%6% Extremely important

Very important

Important

Somewhat important

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Seamless Omni-Channel Experiences

Omni-channel and the changing channel mix

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Current Status of the Omni-Channel

19%

30%25%

22%

4% Expanding

Deploying

Experimenting

Exploring

Not on our radar

Omni-channel and the changing channel mix

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From Channel Islands to Omni-Channel

Source: Forrester Wave for Omni-Channel Banking, September 2015.

“Banks will move from Channel Islands to Omni-Channel Banking. This is not about just technology, it's about the path to great customer experience (CX) across all channels, using the right customer touch-point at the right time.”

Omni-channel and the changing channel mix

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Vertical monoliths vs Horizontal Layers

Omni-channel and the changing channel mix

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Widgets: Re-Usable Business Capabilities

Omni-channel CXP

Re-Usable Widgets

P2P, Bill Pay, Transfer, ….

Payments

Messages, Notify, Alert, Chat, …

Communication

Core Banking, Cards, Accounts, …

BANKING SYSTEMS Portfolio, Coupons,

Offers, eCommerce, ...

3RD PARTY APPS

Spend Analysis, Goals, Cash flow, …

PFM

Marketing, Campaigns, FAQ, Support, ...

Content

Origination, Self-Service, etc.

Origination

Omni-channel and the changing channel mix

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Omni-Channel Orchestration Layer

Core SystemsCore Systems

DigitalBankingServices

•  Banking: Transactions, Cleansing, Categorize, Enrich, Savings, Budgets, Payments, Accounts, Entitlements, …

•  Universal: Alerts, Notifications, Message Center, Auditing, Contacts, …

•  Re-Use & Rationalize Existing

Systems

Widget Widget Widget Widget

API API API

Digital Banking Services

CXP Integration Services

Omni-channel and the changing channel mix

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Four Scenarios of the Future Bank

After Alessandro Hatami, published on Banknxt.

Scenario 1Better Bank

Scenario 2New Bank

Scenario 3Distributed Bank

Scenario 4Omni-Channel Bank

Built-for-Digital Banking Platform

DigitalBankingInterface

BankingServices

Aggregator

FullOmni-Channel

BankingInterface

Fintech Providers

Fintech Providers

Fintech Providers

Legacy Banking Platform

Fintech Providers

Fintech Providers

Fintech Providers

Banking Platform

Customers

Startups win by doing one (1) thing well

Banks win by integrating the UX using APIs.

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Omni-channel and the changing channel mix

Technology : API Gateway

Enterprise API Delivery Platform•  Leverage existing systems,

processes, & relationships•  Support multiple platforms from a

single infrastructure•  Convert backend interfaces into

usable external APIs•  Meet enterprise security,

compliance, & operational requirements

Partners API Owners Applications

Own APIs 3rd Party APIs

PartnerPlatform

InternalPlatform

Omni-channel and the changing channel mix

Business : Accelerate Digital + Monetize your Assets

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Regain control in the era of digitization

Regain control in the era of digitization

0

10

20

30

40

50

60

Physical Channels

Agents Contact Center

Online (web)

Mobile Other

30

What channel drives the most revenue?

2015

Regain control in the era of digitization

0

10

20

30

40

50

60

Physical Channels

Agents Contact Center

Online (web)

Mobile Other

31

And your expectations for 2020?

2020

Regain control in the era of digitization

30%

25%7%7%

30%

1%Public Marketing Site

Campaign Pages

Closed Internet Banking

Mobile Apps

Social Media

Other32

What Channels can Business Manage?

Regain control in the era of digitization

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Capitalize on your OLB / MB Traffic

15% 85%

Bookmarks Mobile

Public Site Closed Environment

Regain control in the era of digitization

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Create, Measure and Optimize Journeys

Regain control in the era of digitization

35

Empower Business with Visual CX Editor

Regain control in the era of digitization

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Enable Business & IT collaboration

Digital Transformation Economics

Digital transformation economics

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Digital Banking Economics – Channel Costs

$ 4.10

$ 0.50

$ 0.05

Source:

Digital transformation economics

Digital Banking Economics – Channel Costs

Digital transformation economics

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The Branch is Certainly Not Dead

Source:

Digital transformation economics

Impact – Digital correlates with Profit Margin

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Banks need to start their journey now

Start your journey now

Our mission is to help Financials to Create, Manage, and Optimize Omni-Channel Customer Interactions.

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Start your journey now

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Backbase = Omni-Channel Banking Leader

Forrester Market Wave for Omni-Channel Banking Solutions Jost Hopperman (September 2015)

“Backbase leads the Pack”.

ü  Broad business capabilities, ü  Rich customer experience, ü  Very solid technology and

architecture

Start your journey now

Digital Transformation Roadmap Digital Transformation

Not restricted to channels or technology only, needs to be a holistic transformation across back-office, staff and operations as well.

About building the right mix of “Bricks and Clicks”.

No silver bullet, it has to be unique strategy based on business drivers, customer segment, goals etc.

Start your journey now

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Our Mission: Make you a digital leader

Get the report

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Efma & Backbase present

Omni-channel bankingThe digital transformation roadmap

All you need to create the 10x better bank.

-  15+ executive interviews-  100+ survey respondents-  7 habits by Roberto Ferrari

See @backbase on Twitter.

Questions?

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www.backbase.com

Thank you!@joukpleiter & @jelmerdejong