Fintech Existential Threat or Another Tech...
Transcript of Fintech Existential Threat or Another Tech...
4
Customer
management
Distribution
& marketing
Offer
origination
Offer
servicing
Credit
monitoring
& collections
Offer development
& maintenance
Risk and
control
NOT EXHAUSTIVE
Disruption is happening across the banking value chain,
but so is the incumbent response
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Completely
automated and
trusted settlement
process using
Blockchain
Bank2Bank
Blockchain
payment
solution
“People like
you” via
Collective Data
Analytics
(spend pattern)
Digital Footprint
analysis
(Smart-cookies)
Payments using
wearable devices
Third party offerings - Google
style machine learning meets
Bank credit scoring
3rd Party Social Risk
Compliance solution-
Real time monitoring &
remediation Fintech
Disruptors
Credit scoring in
minutes leveraging
real-life/social data
Robo-advisory
Credit marketplace
Solution to accept
payments globallyCredit card
processing
through mobile
Big Data enabled
online risk assessment
Mortgage sales via
Videoconferencing
Digital KYC for faster
verification for saving
accounts
Analytics and Business
Intelligence based
Recovery Factory
Fully Digital
Mortgage product -
One Click Mortgage
from e-application to
e-closing
Image based
services such
as photo bill
using OCR
Red Button for
impulse saving In-app, real-time
customer service
through Mobile Chat
Facial Biometrics
30 seconds
loan approval
P2P platform
differentiated through
brand, rates
Smart Buy
Services
offering
different
products
Incumbent
Responses
Videophones for face
to face discussion for
remote advise and
support 24*7
Combination of Fintech and Regulation materially
changes the economics for traditional banks
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Source: Accenture Research
Forecast EU Retail Payments Revenues for Banks
(EUR Bn)
Organic
growth
2015 - 2020
+20%
6.6
8.2
2015 PSD2
-9%
2020 After
Disruption
Digital
disruptors
-7%
Digital
transformation
Interchange
Cap
-27%
2020
-4.6
-43%
?
• APIs,
• Identity mgmt.
• Instant
payments
• Blockchain
Dual-speed IT
Bureaucratic
Amnesiac
Customer as supplicant
Economically challenged
Poor customer experience
Channel silos not solutions
One stop shop
In my community
Regulated and safe
Transactional trust
A familiar face
Good at complicated
6
Traditional Bank
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Customer in control
Simple and elegant
Exciting and new
Low-cost
Adaptive and intelligent
Digital native technology
Digital community and UGC
7
Mobile Bank
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Utopian
Basic products
Faceless
Transient?
Unregulated
Equity burn not equity return
Stateless
• Happy customers, regulators and
shareholders
• ‘Digital+’ not ‘Physical+’ mentality
• Uncompromising cross-channel
CustX
• Less branches and people, but
higher stakes
• Phydigital communities
• F2B technology strategy
• On-demand complexity
• Co-opt or scare off Fintech
Traditional
Bank
Mobile
Bank
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Phone
Branch
Sales
force
ATM
Online
Reaction 1 – Be The Best Version of Yourself
Customer Engagement and Brand
CRM and Analytics
Customer Journeys
Product Manufacturing
Core Transaction Systems
Balance Sheet
Reaction 2 – Think About The Value Chain
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Traditional
Bank
Mobile
Bank
Strategic Choice – The ‘Sandwich’ Bank
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Customer Engagement and Brand
CRM and Analytics
Customer Journeys
Product Manufacturing
Core Transaction Systems
Balance Sheet
Traditional
Bank
Mobile
Bank
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Customer Engagement and Brand
CRM and Analytics
Customer Journeys
Product Manufacturing
Core Transaction Systems
Balance Sheet
Traditional
Bank
Mobile
Bank
Strategic Choice – The Customer Manager
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Customer Engagement and Brand
CRM and Analytics
Product Manufacturing
Core Transaction Systems
Balance Sheet
Traditional
Bank
Mobile
Bank
Strategic Choice – The Partnership Bank
Customer Journeys
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Customer Engagement and Brand
CRM and Analytics
Core Transaction Systems
Balance Sheet
Traditional
Bank
Mobile
Bank
Strategic Choice – The Utility Bank
Customer Journeys
Product Manufacturing
Challenge and opportunity means winners and losers
Innovation
from outside
the banking
sector is
new and
threatening.
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Fintech
capabilities
give banks the
opportunity to
be the best
version of
themselves.
Technology
and regulators
are creating
new business
models that
can be
opportunities
or threats.
The winners in
traditional
banking will
be able to
optimize
across both
dimensions.
Normal VC
rules will apply
to FinTech,
while GAAFA
is more the
existential
threat.
BANKING IS
GETTING A
LOT MORE
INTERESTING
AND
COMPLICATED!