The Digital Banking HubThink in new scenarios to cope with digitalisation

Prague, 31 May 2016

The situation…

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Fundamental change in banking ahead:Digital overtakes regulation in banking

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Frequency of Google Search Terms “Financial Regulation”

and “Fintech”; Google-Trends-Index. Chart source: NZZ, 25.9.2015

“The rush to implement new digital technologies has

overtaken regulatory worries as the highest priority for

global banking executives.”Source: Economist Intelligence Unit, 2015

Google search for «Fintech»

Fundamental change in banking ahead: Too much to handle?

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Redefining customer expectations

Redefining industry boundaries

Fundamental change in banking ahead: Is it really as bad as this?

5Source: banknxt.com

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?

Source: americanbanker.com, 2015 Source: Deutsche Bank Research, 2015

Banks risk to be «unbundled» in the future vs.Banks are in a good position to orchestrate their own digital ecosystem

Banks have to think in new scenarios to cope with digitalisation

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Sources: thedrum.com; credit-suisse.com; JPMC annual report, 2015

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Banks have to think in new scenarios to cope with digitalisation:Examples of cooperation areas in digital wealth management

8Source: World Economic Forum, The Future of Financial Services, 2015

The situation……and how to resolve it

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Banks have to think in new scenarios to cope with digitalisation:The questions that emerge…

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We want to quickly integrate new

capabilities from fintechs

We want to develop own applications on

top of all

We want to modernise legacy systems without touching them

We want to be able to differentiate and to adapt constantly

We want to integrate our offering into third party environments

We want tobe flexible to pursue new business models

How can all this be orchestrated?

We want to freely customize the digital

banking front end

We want to provide one seamless user

experience, globally

?

Why a Hub?

PRODUCTION

HUB

POINTS OF SALES

CONSUMERS

Source: www.sustainableamerica.org/blog/what-is-a-food-hub

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Yesterday: The bank-centric view => omni-channel delivery

Clientadvisors

ClientSelf-Service

Com-munities

Bank services

Inter-mediaries

PRODUCTION

POINTS OF SALES

CONSUMERS

Digital Banking PortalThe bank with a «closed shop» productionThe portal mostly for one-way distribution

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Tomorrow: The client-centric view => financial eco-system

Clients & Advisors

Bank ServicesFintechs 3rd party / lifestyle

API

PRODUCTION

HUB

POINTS OF SALES

CONSUMERS

Digital Banking

Hub The bank in the role of the

service orchestrator The Hub for open and

omni-directional exchange

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3rd Party / Lifestyle => Beispiel

Presentation title, Date © CREALOGIX 14

Lifestyle vs. Banking: …find the bank

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Presentation title, Date © CREALOGIX 16

The evolution towards the Digital Banking Hub

Advantages for clients and banks

Digital Banking Portal

Digital Banking

Suite

Singlepurposebankingapp/tool

FunctionalCapabilities

OrchestrationCapabilities

Digital Banking

Hub

Advantagesfor the client:

all-in-one, personalised, seamless, securebanking experience

Advantagesfor the bank:

enriched offers personalised offers increased usage easier client aquisition increased cross-selling flexible business models innovation enabling lower costs

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APIs are everywhere…but quite new in bankingYou will see a lot more in the future

18Source: http://www.openi-ict.eu/openi-api-framework-part-i-studying-the-landscape-of-cloud-based-services/

But APIs per se do not resolve the orchestration issue…See e.g. «death by (banking) notifications»

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ClientsAdvisors / Partners 20

PRODUCTION

HUB

POINTS OF SALES

CONSUMERS

The Hub allows new types of API-based «open» but unified services

API

Content Management

Notifications& Alerts

Configuration & Personalisation

Authentication & Authorisation

Messaging

Campaign Management

Bank Services

Fintechs 3rd party / lifestyle

Digital Banking

Hub

API-based «open» Banking will Change the Landscape

21http://zanders.eu/en/latest-insights/how-open-banking-will-change-the-banking-landscape

Before PSD2 and XS2A With PSD2 and XS2A

PSD2= Payment Service Directive 2XS2A= Access to Account for TTPTTP= Third Party Provider

The Hub opens new dimensions in digital banking

The Hub is able to aggregate information from very different types of sources and to provide them to the front end for a seamless and unified presentation.

For all orchestration purposes, the Hub manages elaborated rights management to enforce highest security and therefore no loss of control.

The Hub can connect to services outside the bank and exchange information in a standardised way to enrich client offers with additional features or insights.

The Hub allows to integrate innovative cloud services in a secure way.

The Hub connects to services from partners or user communities.

New digital business models can be developed, the Hub allowing a quick assembly of relevant services.

The Hub helps to modernise legacy systems by packaging “locked” and valuable information with accessible interfaces.

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Digital Banking

Hub

My Personal Hub = my personal financial eco-system

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Added value services to solve everyday financial issues, combined into one single app

Integration of location based services Integrated loyalty and bonus programs

for bank clients External 3rd party offers which lead

towards sales execution of internal banking products

How can such a eco-system look like…?

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The Hub enables the bankto build its own eco-system

Source: http://www.uxbooth.com/articles/designing-digital-strategies-part-2-connected-user-experiences/

The Hub enables the bank to build its own eco-system

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Seamless Online Banking LayerClients (strong authentication):- Comprehensive digital banking functionalityProspects:- Onboarding, risk profiling, simulations, proposals

Community/Social Layer- Client communication with the bank

- with advisor, relationship manager- Client to client information exchange

- Communities for specific topics

Marketing Layer- Content Marketing within the bank

- Cross selling & up selling- Recommendations & offers

- Extended & External Content Marketing - Additional activities & lifestyle topics:

Games, travel, living, family, sports, ...

3rd-Party / Fintech Layer- Orchestration of external applications via APIs- Integration of 3rd-party data feeds and data exchange

Outside-in:ProgressiveMembership

Inside-out:Client«Activation»

Fundamental change in banking: Use the Digital Banking Hub

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Adaptation cycles

Record Keeping

E-Channel

Digital Eco-System & Orchestration

Core Banking

Traditional E-BANKING

DIGITAL BANKING HUB

Short cycles demand a highly flexible & open solution

Recurring Impacts

Change incustomer behaviour

Competition fromfintech disruptors

Newregulations

Consumerisation oftechnologies

The Hub enables digital transformation

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Rich, interactive content experiences for increased client engagement and

collaboration

Multilayered and open architecture with outstanding user

experience across all devices and channels

Broad spectrum ofnew digital services -

available fast and secure in convenient

modules

API based seamless integration of offers

enabling new business setups and revenue

models

New Interactions

New Technology

New Functionality

New Reach

Client Centric Digital Experience

Clear Differentiation

Client

Tim

e t

o M

ark

et O

pen In

no

vation

Digital Banking

Hub

The Hub enables digital transformation

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"When it comes to the hot topic of what digital means to today’s banks, too many companies are “Playing Not to Lose” vs. “Playing to Win.”

Digital Banking

Hub

Source: Robert Wollan, Acccenture

«It’s Time toPlay to Win»

CREALOGIX Group retweeted

Richard Dratva @RichardDratva ∙ 31 May

Thank you for your precious time!Keep it going – join the conversation #DigitalBankingHub

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