Building the 10x better bank

@joukpleiter & @jelmerdejong

Building the 10x better bank

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New Competitors in Banking

New competitors in banking

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Shift in Customer Demand


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Shift in Competitive Landscape


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1015202530

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Who do you see as the Biggest Threat?


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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


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


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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


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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


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A paradigm shift: Outside-in Approach

Outside-in Customer enablement

Inside-Out Web/Mobile Enablement


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Enabling Seamless Customer Journeys

Source:


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Challenge : Projects take too much Time


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A paradigm shift: Two Speed Architecture

Customer Oriented Functions

Back Office Functions

Leverage Pre-build Digital Accelerators


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Launchpad Widgets Retail | Wealth | Commercial

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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


61%25%

8%6% Extremely important

Very important

Important

Somewhat important

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Seamless Omni-Channel Experiences


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Current Status of the Omni-Channel

19%

30%25%

22%

4% Expanding

Deploying

Experimenting

Exploring

Not on our radar


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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.”


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Vertical monoliths vs Horizontal Layers


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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


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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


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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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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


Business : Accelerate Digital + Monetize your Assets

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Regain control in the era of digitization


0

10

20

30

40

50

60

Physical Channels

Agents Contact Center

Online (web)

Mobile Other

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What channel drives the most revenue?

2015


0

10

20

30

40

50

60

Physical Channels

Agents Contact Center

Online (web)

Mobile Other

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And your expectations for 2020?

2020


30%

25%7%7%

30%

1%Public Marketing Site

Campaign Pages

Closed Internet Banking

Mobile Apps

Social Media

Other32

What Channels can Business Manage?


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Capitalize on your OLB / MB Traffic

15% 85%

Bookmarks Mobile

Public Site Closed Environment


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Create, Measure and Optimize Journeys


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Empower Business with Visual CX Editor


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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 Banking Economics – Channel Costs


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The Branch is Certainly Not Dead

Source:


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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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


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.


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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

Building the 10x better bank

Business

Transcript of Building the 10x better bank