bm

Innovation i Danske Bank og

samarbejdet med Rainmaking

Finanssektorens Uddannelsescenter, Future netværket 23. august 2016

22

33

Difficult to imagine that disruption will hit our business

We have a legacy We have the competences

We have capital We have the Industry knowhow & network

We have the customers

We have a strong Strategy

77

• 100% digital

• In my pocket

• I’m in Control

• Delicious design

• Easy interface

• Plug’n play

• Monitor

• Simulation

• Benchmark

• (Broker)

• Where is the mobile ?

• Where is my app ?

• Why do I need a professional installer ?

• Why do they talk to me with professional words ?

• It’s a little old school

11

The mobile is becoming the hub of our life

CORE PRODUCTCUSTOMER

EXPERIENCE

WASTE

REDUNDANCY

COMPLEXITY

LIMITED ACCESS

BROKEN TRUST

Disruptive companies zero in on a customer need and use technology to remove superfluous steps, costs and time

ANALOGUE SERVICES

Incumbents Disrupters

Dis

tr

ibu

tio

n

Own Third party

Product creation

Ou

rsel

ves

Th

ird

par

ty Customer

Products (services, functionality, data)

Distribution

API API API

Customer

Products (services, functionality, data)

Distribution

API API API

Customer

Products (services, functionality, data)

Distribution

API API API

Customer

Products (services, functionality, data)

Distribution

API API API

2. Producer

1. Integrator 3. Distributor

4. Platform

Bank

Third Party

Difficult to imagine when disruption will hit our business

2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026…..

1616

Pope John Paul II - 2005

1717

Pope Francis - 2013

18

Deception lines versus exponential

0,01 0,02 0,03 0,06 0,13 0,25 0,50 1,00 2,004,00

8,00

16,00

32,00

64,00

128,00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Co

mp

let

ion

ra

te

in

pe

rc

en

t

Years from project start

Linear manHalfway in time and only 1%

Exponential man1% is half done since tech is doubling

In 1990 the Humane Genome project was launched

with an objective to fully sequencing a human genome

Estimates called for the project to take 15 year

Begin Halfway

20

“You don’t need a digital strategy to succeed in this World, you need a business strategy for the digital age”

2121

”Banking is here to stay – banks are necessarily not”

2222

CLASSICAL BANK

DISRUPTIVE MOVES

A DUAL-TRACK STRATEGY

23

PROBLEM

Old structures to address new problems give problems!

24

Detailed forecasting

Sekventielle steps

Organizational control

Risk averse

25

FROM TO

Maximum validatedproduct

Minimum viable

product

corporate disruptors

2626

2727

2011

2828

Keep it simple stupid

We want to make it easier

for people to transfer

money to one another

“MobilePay must be very

simple and accessible

for everyone

“It must be just as

easy as cash

“

2929

MobilePay has in 3 years developed into a multisided full suite mobile payment platform attracting 3m consumers and 25t merchants and entering new markets

3030

3131

3232

20112013

Customers

Strong traditional competencies

Trustworthy brand

Financial strength

START-UP CULTURE CORPORATE STRENGTHS

Core systems and processes

Untainted innovative approach

New digital and entrepreneurial competencies

Purpose & passion

Fast execution

Full top-management & BoD buy-in

Embracing uncertainty

PRE-REQUISITES

Assigning autonomy

Accepting a higher tolerance for failure

+

CREATING A HYBRID – BEST OF TWO WORLDS

MUSCLE OF A CORPORATE, SOUL OF A STARTUP

MOBILELIFE / PROJECT X

Don’t be afraid to disrupt yourself

3636

201120132015

3737

Recommendation

Aim for 10x better, not the usual 10% better

SME Community Hub Financial Dashboard Future Finance

3838

ExBo-level sponsorship – role of challenging but

not prescribing

Mandate with decision rights and budget to build

best possible solution to deliver on customer need

Capable and full-time leader with desire to 'build a

business'

Core team across business and IT to build tech-

driven business in entrepreneurial culture

Fast prototyping, bare Minimum Viable Product,

by isolated team

Flexible IT solution that is architecturally coherent

TEAM

WORKING

METHODS

MANDATE &

SPONSORSHIP

IT DELIVERY

APPROACH

1

4

3

BUSINESS LEADER 2

5

Danske Bank’s initiative towards startups and growth companies

Asia Pacific Digital Banking

CEO Academy

27/06/2016

4040Source: Danmarks Statistik, Nov 2015

Survival rate for new companies

4141

Do it for growth in Denmark Do it for profit Do it for innovation

4242

Our massive transformation purpose (MTP)

Danske Bank will make it easier for startups and growth companies to accelerate

and reach their ambitions

“ We invest in the

relation….”

Time

“… to be a preferred

partner in the future”

Company size/value

4343

The ‘SME Community Hub’ Moon Shot…

Recommendation

Community hub that is relevant for the targeted segment and that enables a positive network effect

Support Danske Bank brand as a company that invests in the growth of Denmark

Gain learnings on how to work with disruptive projects within BB • 100% focus on user needs• Collaborating with third parties• working with high speed, prioritizing time-to-market over

stability• working with MVPs and subsequent continuous iterations• willingness to accepting higher risk of failure

Moon Shot Objectives ‘TheHub’

1

2

3

Monetizing this will happen only after we have the user base in place. Potential options

for longer term monetizing include new leads / clients converted, and better retention.

4444

Internal workshop generated six preliminary models and the first mockup looked nicely as a solution from Danske Bank and delivered on the brief

Focus on growth as decisive moment

Enable network effect

Open for partnerships

Rich content that goes beyond banking

Tools and services, not just inspiration

In sync with Danske Bank CVI

4545

Rainmaking was chosen as a strategic partner to drive insights on SMEs and to increase the development speed

• Small and agile DB team

• Strategic partnership with Rainmaking

• Successful serial entrepreneurs and run co-

working spaces for Scalers in London, Berlin

and Copenhagen

Approach

4646

4747

We started interviewing +100 startups to identify their main challenges and ensuring that the solution would be relevant

• In-depth interviews with +100 scalers

across Denmark

• 118 issues identified

• Grouped into 11 categories

Empirical overview Findings

4848

Recruitment12/2015

Funding03/2016

ToolsQ3/2016

09/2016

09/2016

4949

Understand the users real needs

Partner up if you don’t have the insights yourself

“Moonshot” label makes a difference

Deadlines should be your BFF

Don’t build solutions to problems that have not yet arisen

Foster a YES culture in the project team

Involve internal stakeholders early and they will help you

The luxury of focus on a single project drives performance and job satisfaction

Its amazing how fast you can build trust if your solution creates value

Stay OPEN and opportunities will arise

Culture eats strategy for breakfast (Drucker)