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Banking on Innovation

Arun Krishnan

Head of Engineering@Finacle

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Once upon a time….

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WHY bother?

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900M

3B

IMPS

3M

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40%-80%@4x

Wallets

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CUSTOMERChanging

PREFERENCES EVOLUTIONTECHNOLOGY Rapid

LANDSCAPECOMPETITIVE

Changing

PROFITABILITYMARGINS and

Pressures on

BRANCH

• 40% positive experience• ~90% want custom services• 80%+ expect loyalty rewards

• Informed, Connected, Demanding, On the Move

• 1B Mobile Banking by 2017• ~40% of eCommerce Mobile

• Mobility, , Social, IoT, Cloud Analytics

• 2nd Highest Efficiency Gaps in Retail Banking (measured across 7 industries)

• Non-Traditional Players, Telcos, Retail, Tech

• Lack of Agility

• Regulatory uncertainty, Pressures on Margin

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Innovation Investment Trend

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HOW might we reimagine ?

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How does innovation look?

The Myths of Innovation, Scott Berkun

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Are we asking the right questions?

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Are we asking the right questions?

BRANCH

Easy toConsume

Stylish

MassCustomization

DeliveryEfficiency

Reliable

LoyaltyHigh Touch

Formal

Trusted

RegulatoryCompliance

StandardizedOffering

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AdviceAccessAutomation

Focus of Banking Technology

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WHAT could we do?

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VIRTUALIZATION

INFORMATIZATIONPERSONALIZATION

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3 Irreversibles

BRANCH

VIRTUALIZATION

INFORMATIZATIONPERSONALIZATION

• Connected• Ubiquitous• Teleportable

• Agile• Integrated• Differentiated

• Personal• Adaptive• Contexual

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• Dematerialization of Instruments, Transactions & Identity

• Lower Transaction Costs

• Anytime, Anywhere Access

• Easy Availability of Decisioning Information

• Augmented Information Sources like Social

• Unbundling of Banking

Virtualization: Connected, Ubiquitous, Teleportable

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Unbundling

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• Efficiencies at Scale

• Automated and Integrated to the Max

• Product Agility

• Analytics to Extract Insights about the Business

• Ability to Model Strategies before rollout

• Differentiate with Best in Class Processes

• Sustainable Strategic Value

Informatization: Agile, Integrated, Differentiated

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• Mobility focused

• Personalized, Tailored offerings

• Learning and Changing based on situation

• Relevant and Contexual Engagement

• Enriched with Mashups

• Mass Customization Capabilities

• Socially natured

Personalization: Personal, Adaptive, Contexual

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Innovation Strategies

BRANCH

VIRTUALIZATION

INFORMATIZATIONPERSONALIZATION

• Enable and Participate in P2P• Leverage the Network• Co-operate to Compete

• APIfy and Modularize• Leverage Best Practices• Exploit Analytics

• Focus on UX• Leverage the Ecosystem• Exploit Analytics

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3

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Imagine….

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Beyond the Box..

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"--- you don't reach Serendib by plotting a course for it. You have

to set out in good faith for elsewhere and lose your bearings ...

serendipitously.”

John Barth

The Last Voyage of Somebody the Sailor

The Innovator’s Road…

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It’s time for Banking on Innovation

Thank you