Bank of 20XX - Designing the Bank of the Future Ammara Masood, President & CEO, NDC

Transforming banks with Leading Edge technology 2

15 years of

partnership with

Temenos

9 banks live on T24 in Pakistan

12 countries

NDC is present in the MEA

region

30 + Temenos

implementations completed in

the Region

2 Awards for outstanding performance

in Services against

Global IT providers

500+ Consultants trained in-house at

NDC

IT Company with Focus on Banking and Financial Institutions

NDC Highlights

Four Revolutions in Banking

Banks are competing online not on the high street

Banks are in a new regulatory regime enforcing low margins

Core banking is a commodity and the cloud is the cheapest place to run it

Customers are no longer loyal

The future is uncertain, small competitors may replace the largest banks

Food for Thought

Some bankers and analysts think that Google, Facebook, Amazon or the like will not fully

enter a highly regulated, low-margin business such as banking. I disagree. What is more, I

think banks that are not prepared for such new competitors face certain death

Quote from article ‘Banks need to take on Amazon and Google or die’ CEO of BBVA, Feb 2014

In Pakistan what is the equivalent?

Players in the Telecom space – offering Mobile financial services

Players in the Payments space - such as Western Union, UnionPay

Bank of 20XX

Bank of 2015 Bank of 20XX Account focused Customer focused

High margin Low margin

High volume of transactions Enormous volume of inquiries

Bulk oriented Real-time

Human processing Straight through processing

Teller transactions Self-assisted transactions

High street retailer Online retailer

Own data center Shared infrastructure

Front to back software Separate front middle back

Single database Multiple database types

Make money on float, spread Fee per service

Single database Database for each need

Characteristics of Modern Banking

Retail

Wealth

Corporate

Capital Markets

High Customer

Care

High Query

Volumes

Low Margins

Real-Time

These are the characteristics of

What Banks can do about it

This presentation is about how banks can acquire the four characteristics before

GAFA become banks

Three bets to place

Cloud

Digital

Data

Low Margin

The way to reduce IT costs is via Cloud

Application

User Agents

CapEx to OpEx

People Cost

Middleware

Database

Software Cost

People Cost

Tin

Wires

Hardware Cost

People Cost

SaaS PaaS IaaS What you get

What you save

Tier 3 and 4 Tier 2 at home Tier 1 at home

Platform as a service will be the key to Cost Reduction

Complete Banking Service

Design Deploy Monitor Internet Mobile Teller Advisor BPM Four R Recon

Interaction Interface

SWIFT

ISO 8583

ISO 20022

Hi Payment

Low Payment

Mandates

Credit Cards

Regulatory

Risk

GL

DWH Inte

ract

ion

Inte

rfac

e

SaaS

Core Banking

Payments

Workflow

Content

Case

Reporting

CRM

Orders

Holdings

Clearing

Settlement

COB

Reconciliation

Card Mgt.

Statements

Four R

BPO

Complete Banking Service

Design Deploy Monitor Internet Mobile Teller Advisor BPM Four R Recon

Interaction Interface

SWIFT

ISO 8583

ISO 20022

Hi Payment

Low Payment

Mandates

Credit Cards

Regulatory

Risk

GL

DWH Inte

ract

ion

Inte

rfac

e

SaaS

Core Banking

Payments

Workflow

Content

Case

Reporting

CRM

Orders

Holdings

Clearing

Settlement

COB

Reconciliation

Card Mgt.

Statements

Four R

BPO

Digital Engagement Platform

Three bets to place

Cloud

Digital

Data

Becoming Digital

Retail banks are moving from tellers and accounting to self assisted transactions with high customer care

Bank Marketplace

Core Banking

Digital and marketplace imply transformation

Food for Thought

By 2015, more than 50% of public Web API deployments will be to improve digital customer experience as an even more

important priority than net profits

Quote from ‘API Deployment Models That Accelerate Digital Banking’ 4 March 2014 Gartner

Three bets to place

Cloud

Digital

Data

Banking becomes Driven by Data

Core Banking

Banking becomes Driven by Data

Core Banking

1000 x more query

Banking becomes Driven by Data

Core Banking

Real-time Campaigns and Service

Banking becomes Driven by Data

Core Banking

In-Memory 10 x Cheaper

Banking becomes Driven by Data

Core Banking

In-Memory 10 x Cheaper

See the transaction on your mobile as you walk from the ATM at midnight