Vision 2020: Innovation at the Speed of Life · PDF file · 2017-10-20© 2017...
-
Upload
hoangduong -
Category
Documents
-
view
218 -
download
4
Transcript of Vision 2020: Innovation at the Speed of Life · PDF file · 2017-10-20© 2017...
10/20/2017
1
Vision 2020: Innovation at the
Speed of Life
Brandon Trease
Client Solutions Consultant, Fiserv
October 24th, 2017
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
2011
2016
We are Seeing a Clear Shift to Technology Leaders
Source: Visual Capitalist, “The Largest Companies By Market Cap Over 15 Years,” August 2016
*Top 5 By Market Cap
2001
2006
Tech Other
#1 #2 #3 #4 #5
$406B $272B $261B $260B
$446B
$406B
$383B $327B $273B
$277B $237B $228B
$365B
$293B
$376B
$582B $556B $452B $364B $359B
10/20/2017
2
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
the only thing advancing faster than technology is
consumer expectations
3
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
The Extraordinary Rise of Amazon
Amazon is bigger than most brick-and-mortar retailers put together.
4
$355.9B
$297.8B
Source: Visual Capitalist, "The Extraordinary Size of Amazon in One Chart", December 2016
10/20/2017
3
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Technology is Changing the Value of Companies
6
Source: Visual Capitalist, "The Extraordinary Size of Amazon in One Chart", December 2016Data Source: Yahoo Finance (peak value in 2006), Google Finance (values for Dec 30,2016)
$27.8B $1.1B 96%
$18.1B $2.6B 86%
$12.4B $8.3B 33%
$24.2B $8.8B 64%
$24.2B $11.0B 55%
$28.4B $13.2B 54%
$51.3B $40.6B 21%
$214.0B
$212.4B
1%
$17.5B $355.9B
1,934%
CompanyMarket Value2006
Market Value2016
% Change
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Disruptors are Changing the Banking Landscape
Source: Instantly Brand Monitor in Cooperation with Statista, “Americans Trust Tech Firms More Than Banks for Finance,” June 2015
*Original Question: “Please state for each firm you know whether your overall opinion of the provider of financial products is positive, neutral, negative.”
44%
37%
40%
36%
73% 71%
64% 57%
Banks Tech Firms
10/20/2017
4
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017 8
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017 9
10/20/2017
5
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
The Digital Triad
ONE Experience
Move Money
Mobile Now
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Game Changer #1: The Digital Triad
11
We spent a lot of years training banking
customers on our terminology:
“DDA, ACH, Routing number,
PIN, Wire, Bill Pay”
This new generation of customers
doesn’t care.LoansDeposits Payments
Digital Strategy for an Always-On World
Money Service
10/20/2017
6
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Why Should New Entrants Matter to Banks?
Source: Accenture “2016 North America Consumer Digital Banking Survey - Banking Shaped By The Customer,” June 2016
n=>4,000
87%of consumers will use their
branches in the future – and
want human interaction when
they go there
46%of consumers are willing to bank
using robo-advice in the future
45%of consumers say the top reason
they would stay loyal is if their
bank offers discounts on
purchases of interest
11%of consumers left their bank in the
past year – and consumer
switching to virtual banks is at
double-digit levels
The Branch is Alive and Well Value is Important
Robo-Advice is Welcomed Switching FIs is Not an Obstacle
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Seamless movement across touchpoints
One experience, multiple engagements
Game Changer #2: ONE Experience
13
Initiate
Continue
Finish
New: Chat/App/Voice/Augmented/Virtual Reality
10/20/2017
7
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Game Changer #3: Move Money
15
whohow
much when
Sender’s Bank Receiver’s Bank
Sender Receiver
Payment Network
Invisible paymentsPayments appsInteroperable networks
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Market Expectations – P2P Payment Opportunity
P2P transaction volume P2P market share
16
$ billions
Source: Aite Group, “Digital Person-to-Person Payments in the U.S.: The Competitive Landscape,“ 2017
$ volume Third-party providers play a role
83%of digital P2P market share is owned by financial institutions.Alternative providers Financial institutions
A strong growth curve
10/20/2017
8
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Game Changer #4: Mobile Now
17
“What do you want to do?”
becomes
“What can we do for you?”
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Mobile Users: Increased Product Holdings
Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016
18
Source: Bank Study
Among banks in the study, the average unique product holdings – the number of different
products held by a customer – increased by 12% in the three months after adoption of
mobile banking
Average total product holdings increased by 11% post-adoption
Mobile banking customers have higher product holdings compared to branch-only customers
Consumers who use mobile are likely more engaged with their financial institutions.
10/20/2017
9
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Mobile Users: Increased Transaction Frequency
Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016
19
• Transaction frequency is higher among
existing mobile banking users in the
financial institutions studied, compared to
consumers who don’t use mobile banking
• The correlation between mobile banking
and transaction frequency could be
because immediate mobile access to
financial information, including balances,
may influence additional transaction
behaviors, including POS transactions, and
ATM withdrawals and deposits.
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Mobile Users: Lowered Attrition
Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016
20
• Consumers with
mobile banking are
less likely to leave
their financial
institutions
• Mobile banking
provides an extra
point of engagement
and satisfaction for
consumers.
10/20/2017
10
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Revenue ImpactMobile Adoption ROI Study Summary
Source: Fiserv proprietary research, 2015 (Mobile ROI Study) Pre/Post – mobile enrollments and transactions primarily in the 2014 considered as the base month. Calculations are done using 3 months window.
21
MO
BIL
E U
SE
R V
AL
UE
(Po
st A
do
ptio
n)
Mobile adoption drives deeper, more profitable engagements
An active/engaged mobile
user represents approx
$200 in incremental annual
revenue
Post Mobile Adoption Impact
INCREASE IN POINT OF SALE TRANSACTIONS
46%
INCREASE IN
PRODUCT HOLDINGS12%
INCREASE IN REVENUE FROM
TRANSACTION ACCOUNTS36%
INCREASE IN
ATM TRANSACTIONS26%
DECREASE IN
BRANCH TRANSACTIONS32%
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Millennials to Inherit $59 Trillion in Personal Wealth
Source: Visual Capitalist, “How Affluent Millennials are Changing the Finance Industry,” December 2015
2030
10/20/2017
11
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Ways to Defend and Succeed Against Non-FI Threats
Invest in
Sustainable
Innovation
Digital First
All Form Factors
Digital Sales
Consumers trust
FIs more than
non-Fis
Advantage FIs:
established
relationships
with regulators
Lead in
Customer
Experience
Focus on
Digital
Simple and
convenient
Easy and always
on
Zero tolerance
for defects
Leverage
Established
Position of Trust
Build, Buy,
Partner, Fund?
Build
innovation
teams
Choose WHERE
to innovate
Innovate Faster
© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies®
2014 | 2015 | 2016 | 2017
Who Will Own Financial Conversations?
26