Strands: How to Win the FinTech Race
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Transcript of Strands: How to Win the FinTech Race
© Strands Inc. 201
HOW TO WIN THE FINTECH RACE?
21st of May 2015, Brussels
Transform threats into opportunities in the competitive digital banking landscape
Dario Lombardi, General Manager
© Strands Inc. 2015
LEADER’S VIEW
2
“They all want to eat our lunch.”– Jamie Dimon, JP Morgan Chase CEO
© Strands Inc. 2015
LEADER’S VIEW
3© Strands Inc. 2014
“We are on the leading edge of a technology revolution in financial services.”– Anthony Jenkins, Barclays CEO
© Strands Inc. 2015
LEADER’S VIEW
4
“Banks are losing their monopoly on banking.”
“In the future, BBVA will be a software company!– Francisco González, BBVA CEO
© Strands Inc. 2015 5
COMPETITIVE LANDSCAPE
Source: The Economist Intelligence Unit 2015, “The 3Rs of retail banking”
36%
21%
13%
Technology & e-commerce (ie Amazon, Apple)
11% in 2011
Non-financial service firms (ie traditional retailers, telecom firms)
New banks (branch, online, telephones, etc)
© Strands Inc. 2015 6
TOP TRENDS UP TO 2020
0
0,11
5
0,23
0,34
5
0,46
35%
46%
46%The impact of regulation
Changing customer behaviour and demands
New entrants/competitors
Source: The Economist Intelligence Unit 2015, “The 3Rs of retail banking”
© Strands Inc. 2015 7
MILLENNIALS ARE THE LESS LOYAL
Source: Viacom Media Networks (2013)
71%
would rather go to the dentist than listen to
what banks are saying
33%
are open to switching banks in the next
90 days
73%
would be more excited about a new offering in financial services from
Google, Amazon, Apple, Paypal, or Square
70%
in 5 years, the way we pay for things will be
totally different
© Strands Inc. 2015
THE RISK
8
Non-banks will replicate the universal banking model.
A single new model will dominate the market. X X A combination of attackers
will result in a much smaller banking sector.
© Strands Inc. 2015
THE OPPORTUNITY
9
“(…) the good news is that we still have one significant advantage, which is the vast array of financial and non-financial DATA that we accumulate.”
– Francisco González, BBVA CEO
© Strands Inc. 2014 11
A NEW ROLE FOR BANKS
Banks are faced with a great opportunity to move from being a mere provider of financial services to become a provider of solutions.
TAKE A CENTRAL ROLE IN THE DIGITAL LIFE OF YOUR CUSTOMERS
© Strands Inc. 2015 12
RETAIL BANKS TOP PRIORITIES
0
0,11
5
0,23
0,34
5
0,46
37%
39%
46%Implementing a digital strategy
Improving customer segmentation by product, service levels or distribution channel
Adapting to changes in the size, structure and role of the branch network
Source: The Economist Intelligence Unit 2015, “The 3Rs of retail banking”
© Strands Inc. 2015 13
DIGITAL INVESTMENT DRIVERS
0
0,1
0,2
0,3
0,4
12%
28%
40%Cross- and up-selling
New customer acquisition
Pricing optimisation
Source: The Economist Intelligence Unit 2015, “The 3Rs of retail banking”
© Strands Inc. 2015
CARD LINKED OFFERS
14
HELP
CLO
How do I find the
most relevant
offers?
How can I attract
new customers?
IsHow well do I know
my customers?
© Strands Inc. 2015 15
UNLEASH THE VALUE OF CUSTOMER DATA
Strands CLO is a marketing tool that enables retailers to target highly relevant
deals to card-holders through digital banking channels
© Strands Inc. 2015 16
HOW IT WORKSRETAILER’S PERSPECTIVE
Get Charged from
Bank
Upload Offer in
Online Banking
Monitor Offer
CampaignSell
© Strands Inc. 2015 17
HOW IT WORKSCARD-HOLDER’S PERSPECTIVE
Accept Offer in
Digital BankingBuy at Merchant Pay with Bank Card
Get Cash Back in
Your Account
© Strands Inc. 2015 18
WIN-WIN-WIN FOR ALL STAKEHOLDERS
RETAILERS
• Highly targeted offers
• Simple marketing tool
• Insightful data
• Reliable - handled by your
bank
BANK
• Generate new revenue • Increase card usage • Increase customer
retention & acquisition • Boost engagement with
digital channels
CARD-HOLDERS
• Great discounts • Relevant and contextual
offers • Simple and convenient • Reliable - handled by your
bank
© Strands Inc. 2015 19
Hi, my name is Mario and I like wearing trendy clothes
Hi, my name is Sarah and have a shop selling trendy shoes
© Strands Inc. 2015 20
Engage Target Retain & Grow+ =
STRANDS’ VISION
ACCELERATE PRODUCT INNOVATION: DON’T DO IT INTERNALLY > PARTNER WITH A FINTECH PROVIDER
© Strands Inc. 2015
CLO CARD-LINKED
OFFERS
REC RECOMMENDER
BFM BUSINESS FINANCIAL
MANAGEMENT
PFM PERSONAL FINANCIAL
MANAGEMENT
21
STRANDS FINANCE SUITE
Engage
Target
Reta
in &
Gro
w
STRANDS LOOP
© Strands Inc. 2015 22
Deutsche Bank
OUR CLIENTS
© Strands Inc. 2015
CONCLUSIONS
23
FIND THE RIGHT TECHNOLOGY PARTNER & OCCUPY CENTRAL ROLE
IN CUSTOMERS LIVES
TECHNOLOGY IS DISRUPTING BANKS’
COMPETITIVE LANDSCAPE
BIG DATA AND DIGITAL RELATIONS ARE
BANKS’ MOST VALUABLE ASSETS
© Strands Inc. 2015
THANK YOU!
24
DARIO [email protected]
@dlombardiwin
WEB finance.strands.com
BLOG blog.strands.com
TWITTER @StrandsFinance
© Strands Inc. 2015 25
ABOUT STRANDSSTRANDS develops innovative software solutions that enable financial institutions & retailers to offer personalized customer experiences and create new revenue streams through digital channels.
The Strands Finance Suite includes white-label software solutions such as Personal Financial Management (PFM), Business Financial Management (BFM), and Card-Linked Offers (CLO), among others. In 2008, Strands revolutionized online banking by deploying the first PFM in Europe.
From our Barcelona HQ and offices in San Francisco, Miami, Madrid & Buenos Aires, we serve market leaders like Barclays, Deutsche Bank, BBVA, BNP Paribas, Bank of Montreal (BMO), Carrefour and Panasonic.