fujitsu world tour 2018 bank of the future.pdf · assess customer satisfaction, address his...

1 Copyright 2018 FUJITSU

#FujitsuWorldTour

Copyright 2018 FUJITSU

FujitsuWorld Tour2018

May 30, 2018

2 Copyright 2018 FUJITSU2 Copyright 2018 FUJITSU

Bank of the Future

Amol SelotHead of Financial Services, Digital

@AmolSelot


Needs of Modern Customers

Banks Insurance Money

NeedsMillennialCustomer

New sources of moneyMobile Payments, crowd-funding, Usage based insurance

New economic value

Shared goods

Customers are bypassing banks and insurance to fulfil their requirements…


Traditional Firms are still playing orthodox

Financial Services

PRODUCTSTraditional Segmentation

Objectives

Profit Regulations

Operations Complexity

Consumers

NEEDSTraditional vs Emerging

Finance Ownership

Security Convenience

Transparency Advice Banking Omnipresence

Disrupters

PROPOSITIONSNew Behaviors

Value

Sharing economy Digital Currencies

Day to day banking Pace Efficiency

…and new entrants are disrupting the market


2012

Illustrativ

e

Banks!

Who are your competitors?


2018

IllustrativeGAFA (Google-Apple-Facebook-Amazon)

With cash on balance sheet, have potential to acquire disrupters and compete directly with full service banks

…Not anymore


Smart Interactions: Contextual, Dynamic and Personalized dialogue

“How are my finances?”

“How is my spending compared to my peer group?”

“Access my calendar and book an appointment with my bank”

”Can you help me buy a new car?”

“What mortgage will I be able to afford in two months?”

“Ensure I always have at least $1000 in my current account and move the

rest to savings?”

“Take the funds out of my savings account and buy the cheapest flight to

Las Vegas”


Theme 1:Path to Openness: Lifestyle Partner


Banks are at the center of an ecosystem

Fulfilling customers’ daily needs


Banks need to become “lifestyle partner”

From studying to… …setting up and running a business, to…

…buying a house


“Bank of the Future” = lifestyle partner

Auto

Real Estate

Consumer Goods

Health

Tax Advise Connect

Education

Home

Travel

Consolidate

Advise

Core Banking

Facilitate

Provide AdviseProvide relevant advise/ buying suggestions based on customer intelligence and analytics

Consolidate Data and Needs Consolidate financial and non-financial requirements of customer to provide real value

Facilitate EcosystemSupport the customer in daily Lifestyle (products to services)

Future of banking will involve an ecosystem of service providers to provide a one-stop shop for Customer’s lifestyle needs


Digital start up

Moving to a digitalbranded platform

Digital evolution of bank

Path to “Bank of the Future”

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Potential transformation journeys

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=jCpGT21bgxglJM&tbnid=38K7rdU6Wc7pmM:&ved=0CAUQjRw&url=http://walleh.com/logo-bbva-brands-logo.html&ei=fniYUsz4GcSP0AXtvoEw&bvm=bv.57155469,d.d2k&psig=AFQjCNHZzPDzoF-SgbIerXba1AtBKwEcLA&ust=1385810385880178



Show Millennials that their bank can grow and evolve alongside them


Introducing digital lending for SMEs by leveraging Kabbage technology for credit scoring and risk monitoring

Partnership with Kabbage

Giving access to the banks' API to allow businesses and startups to integrate

banking services such as payments and loans into their legacies and

applications

API Market Extended distribution network

Letting customers apply for a loan directly on 3rd parties’ eCommerce

platform as payment option, without entering mBank site

Openness as stories of boundaries and spread: The incumbents that started following


Openness as stories of boundaries and spread: The attackers born and raised open

Leveraging API-based partnership to bring digital financial products to

customers, from lending to foreign exchange, while significantly

reducing the IT cost per customer

Open banking formula

Integrating products and services form third parties into Starling mobile app to put the customer at the center

of a wider financial ecosystem

Fintech marketplace

Offering a modular-based banking toolkit, with a banking and e-money

license, to provide players from different industries with custom-fit

solutions

Banking-as-a-Platform

19 Copyright 2018 FUJITSUCopyright © 2018 Fujitsu. All rights reserved. 19

ADVICE-LED, RATHER THAN PRODUCT-LED, IS KEY TO WINNING THE NEW BREED OF CUSTOMER

ARE YOU ADAPTING TO THE NEW MINDSET?


Theme 2:Design Led, Customer Experience Led Culture


Creating an Experience-led Organization

Product Centric Organization Challenges…

Customer Experience-led Organization Opportunities


Banking Customer Life Cycle

Prospect

Customer Journeys

Inheritance

Lost Card

Moments of Truth:

Critical events with opportunities to delight across multiple touchpoints

Pay Bill

Cash Check

Wire Transfer

Business as Usual:

Common high frequency events with the company

Graduation

Marriage

Home Purchase

Life Events:

Specific milestones in a customer’s life

Starting a Family

Targeted Strategies:

Key financial activities in a customer’s life

Financial Planning

Home Refinancing

Managing Customer Relationship


Mortgage Customer Journey

Post-purchase

Assess customer satisfaction, address his purchase-related needs and help him manage his purchase

Purchase

Guide the customer througha fluid purchase experience

Decision

Support the customer in his decision-making process through tailoredassistance

Consideration

Provide customer withtools to understand itsoptions or answer his questions

Awareness

Identify a customer needor trigger its interest

Types of Home Purchasers:

Home Purchasing Journey Steps:

VacationHome Buyer

InvestmentProperty Buyer

LocationMover

2nd Time HomeBuyer (Downsize)

2nd Time HomeBuyer (Upsize)

1st TimeHome Buyer


Business Customer Life-cycle

Start and Plan a New Business

Manage Daily Operations and

Decisions

Expand theBusiness

Manage CriticalFinancial Decisions

Develop and Grow the Business


Design led culture as stories of creative guys who turned to businessman

Design from within

Setting up an in-house design agency, dedicated to identifying trends,

incubating ideas and developing prototypes quickly to improve the pace and quality of digital implementation

Strategic acquisitions

Acquiring user experience design firms to differentiate around the

customer experience by leveraging experienced and close-knit teams

CAN philosophy

Applying a customer-led listening approach to define new solutions,

while infusing collaboration, commitment and co-creation across

all bank's departments


“Play like an attacker” gauges

Design-led Culture

Design Thinking for

UI/ UX shaping

+ Design Doingfor offering evolution

Design Mindset

Openness

Make > Buy

Buy > Make

Openness Degree

Marketplace bank

Evolve designthinking to a culturallevel so to inspire and drive every decision, behavior and organizationalinitiative

Expand and innovate the service portfolio and internal capabilities

with an optimized time-to-market thanks to a

truly open architecture+ Design Culture

for growth and change


Trends and how Fujitsu helps transform?


The Changing Industry Landscape

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1

26

5

Digital life, changing customer base

FS Pressures

Ecosystem driving waves of change in value

Fragmentation of Bank’s value chain

Flexible operating model to mitigate risks and pursue opportunities

simultaneously

Technology is now a board-room conversation

More capital and regulatory constraints

4


How can Fujitsu Help?

3

1

26

5

4

Pressures

Learn(Data

Mastery)

Connect(Open

Banking)

Process(Intelligent

Automation)

Digital Applications

Robo-advisors

Security

Blockchain

Exposed Services (e.g. APIs)

Hybrid Cloud

Advanced Analytics

Internet of Things

Big Data/ Hyper scale Computing


Every $1 that enterprise invest

in innovation will require an

additional $7 in core execution


How Fujitsu can help drive transformation?

Current state

Digitize Operations

Digitize Customer Engagement

External focus

Internal focus

Bank of the future




More Digital Needs More Security

Centralized Infrastructures

Connected local and ThirdParty Networks

Traditional Enterprise

Increasing reliance on cloud based infrastructure

Employee mobility enabled by mobile devices

Extended Enterprise

PaaSSaaSIaaS

Cloud Based, Connected

Accessible by BYO Mobile Devices

Geographically dispersed

Multiple, always connected machines

Organizations Current State

Evolution of the Enterprise Landscape Evolution of Cyber Defense

Security Current State


Each digital capability, enabled by a technology is essential to building a new business model

Enabling Technology

Business Models

Digital Capabilities

Each of the business models is enabled by a subset of 8 Digital Capabilities. However, the maturity level of each capability needed to support each business model varies

Banks of the future will be defined by 4 new business models that can be employed in combination to drive competitive advantage

The capabilities are enabled by combinations of 9 key technologies that are reshaping the banking landscape across the themes of data mastery, open banking and intelligent automation


The 4 new business models will each supported by set of key capabilities

THE FOUR NEW BUSINESS MODELS

“Amazon Marketplace for banking”

“Today’s bank: digitalized”

“The internet backbone provider for your ISP”

Banks’ FutureBusiness Models

“Specialized banking” BLENDMODELSTO CREATE:

Digital Category Killer

Open Platform Player

Digital Relationship Manager

Utility ProviderBank

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3

4



ENABLING TECHNOLOGY

BUSINESS MODELS

DIGITAL CAPABILITIES

Digital Category Killer

Seamless engagement Customer Experience

Differentiation through Customer Acquisition & Retention

Robo-advisory Social Media

Digital Worker

Advanced Analytics

CRM



Key Capabilities

Seamless engagement

Rich personalized insights

Agility through DevOps

Simplified regulatory compliance

Strong API ecosystem

Customer Experience

Operational Efficiency

Security and Resilience

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Digital Category KillerDigital

Relationship ManagerOpen Platform Player Utility Provider

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Digital capabilities | Enabling technologies

Key Capabilities Enabling Offerings/ Technologies

Seamless engagement Innovation, Customer Experience, CRM, AI, Biometrics

Rich personalized insights Customer Experience, Advanced Analytics, Big Data

Agility through DevOps Hybrid IT, Multispeed IT

Simplified regulatory compliance Blockchain, Advanced Analytics, RPA

Strong API ecosystem API Ecosystems, Experience Design and Development

Customer Experience Marketing, Customer Experience Dev, UI/UX, Advanced Analytics

Operational Efficiency Robo-advisory, AI, RPA

Security and Resilience Hybrid IT, Biometrics

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The End-to-End Digital Transformation Journey

ImplementationStart

Aha! Experience

Unrealistic Expectations

Under-Delivered Results

Rescoped Expectations

Good Enough Results?

Risk of Delayor Cancellation

Risk of Benefits Shortfall

Lack of Awareness

Digital Reinvention?

Corrections & Restarts

“Escape velocity” for transformation weak, window of opportunity missed?

UnmanagedExuberance

Technologies in Search of Problems to Solve

Human-CentricVision

New Digital Business Model

NominalDelivery

DigitalBreakthrough

© Fujitsu 2017 – DXJourney Release 2, Version 171005:11:06:30. Contact: [email protected]

Digital Transformation Journey1. Pre-Digital 2. Early Digital 3. Mid-Digital 4. Late Digital 5. Post-Digital

Digital EngagementExploring Digital Possibilities,

Defining Mission, Vision, Architecture

Digital Investment Engineering & Building Digital Foundation to

Enable Business Benefits

Digital PayoffOptimizing Digital Solutions &

Securing Digital Business Benefits

Digital DarknessTackling Business Issues without

Regard to New Digital Possibilities

Digital ActualizationTargeting Digital End-User & Societal Human-Centric Goals

Financial Services

ManufacturingHealthcare

AutomotiveRetail

Public SectorUtilities CPG

Lack of Roadmap for Business/Technology Transformation

Costly, Inflexible, Unreliable Technology Infrastructure

Difficulty Monetizing Data and Digital Technologies

Difficulty Revitalizing Customer Experience & New Revenues

Unmitigated Security or Compliance Risks

Top Pain-Points

Unprepared for Digital Disruption

Compelling story or demo

Copyright 2017 Fujitsu - Confidential


FY18 Financial Services Winning Skills

Industry Differentiation(Business Models, Open Banking)

Intelligent Automation(RPA, Blockchain)

Risk and Regulatory(Analytics)

Data & Analytics(AI, ML, IoT)

Future Workforce(Workplace Services)

Customers & Channels(UI/UK, Design Thinking, CRM)

Cloud & Cybersecurity(Platform, Biometrics)


Don’t build a digital bank, build a bank for those raised digitally


Fujitsu helping customers

micro-services strategy to launch a lifestyle bank

save $160 M and be ready for innovation

blockchain based P2P payments

mortgage efficiency using deep tensor

technology

add 1000 customers everyday

Digital Identity on blockchain

European Bank Global Payments PlatformLarge Japanese Bank

US Regional Bank 3 Large Global BanksJamaican Bank

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