Accenture Technology Vision for Banking

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  • People First: The Primacy of People in the Digital Age

    2016 Accenture

    Technology Vision

    for Banking

  • 2016 Accenture Technology Vision for Banking

    Intelligent

    Automation

    Liquid

    Workforce

    Platform

    EconomyPredictable

    Disruption

    Digital

    Trust

    Copyright 2016 Accenture. All rights reserved. 2

    The Accenture Technology Vision 2016 identifies five technology trends fueled by the people first principle

    and that are essential to banking success in the digital economy.

  • The Platform

    EconomyIts time for banks to join

    in and welcome others

    3Copyright 2016 Accenture. All rights reserved.

    New technology

    platforms have the

    power to drive banking

    innovation 83% believe platforms will be the glue that bring

    organizations together in the digital economy

    46% believe adopting a platform-based business

    model and engaging in ecosystems of digital partners

    to create value are very critical to their business

    success

    59% are already investing in a competitive digital

    technology program as part of their business strategy.

    52% percent expect to be working with new digital

    partners in their industry in the next two years; 42%

    expect to be working with new digital partners outside

    the industry.

  • The value for banks is being fueled by three key

    natural traits

    4Copyright 2016 Accenture. All rights reserved.

    Distribution Power Law

    Enables scale by allowing non-

    financial services providers in the

    network to draw on bank customer

    data in ethical and secure ways to

    generate new revenue in the long

    tail of the distribution curve

    avoiding diminishing returns

    associated with traditional value

    chain models.

    Network Effects

    Two user groups generate

    network value for each other,

    resulting in mutual benefits

    that drive demand-side

    economies of scale.

    Network Synergy

    Cross-industry, mutually-benefiting

    synergies around growth and

    competitiveness arising as the

    right participants come together,

    link their products/services and

    create a marketplace that satisfies

    a specific customer need that

    would be cost-prohibitive to do

    alone.

  • How should banks

    participate?

    5Copyright 2016 Accenture. All rights reserved.

    Banks should consider operating across a

    combination of five key roles:

    Relationship player. The bank owns the

    relationship with customers, leveraging partners to

    provide solutions.

    Platform provider. The bank provides a platform

    for sellers, buyers and content providers to interact.

    Core financial services utility/manufacturer. The

    traditional role of banks in providing financial

    services.

    Innovation playmaker. The bank participates in

    digital banking ecosystems, using a full spectrum of

    approaches to provide capital and to enter new

    businesses.

    Digital ID enabler. The bank operates a secure

    platform, offering consumers access to digital

    commerce.

  • Digital Trust

    Erase the trust

    paradox in banking

    6Copyright 2016 Accenture. All rights reserved.

    Banks digital

    trust paradox is

    unsustainable

    84% of bankers agree trust is the cornerstone

    of the digital economy

    86% of consumers in North America trust their

    bank over all other institutions to securely

    manage their personal data

    Customers rank financial services companies

    among the least trusted by customers to

    behave in ethical ways.

    12015 North America Consumer Digital Banking Survey22015 Edelman Trust Barometer Report

  • (Re)building bank

    customer confidence

    relies on two major

    components:

    Ethics and Security

    7Copyright 2016 Accenture. All rights reserved. 7

    A culture of ethics in banking requires

    decisive actions in key areas:

    Communicate clearly to consumers on

    customer data being collected, for what purpose,

    who can access it legally and how it will be used.

    Use data primarily to offer customers

    reciprocal benefits that are directly relevant to

    the data and service being provided.

    Be responsible to accurately collect, manage

    and access customer information, with

    accountability for the use of data.

  • Banks can combine ethics with stronger security

    strategies toward higher digital trust:

    8Copyright 2016 Accenture. All rights reserved.

    Adopt a zero-tolerance

    approach with a cyber-

    risk appetite in moving

    toward open and

    ecosystem banking.

    Incorporate next-

    generation security

    mechanisms in

    managing data

    security risks.

    Rethink identity and

    access management,

    using more innovative

    techniques.

    Integrate security

    solutionssuch as

    security-aware

    application design,

    integrated database

    security and others

    into new products.

    Identify indicators of

    risky insider activity to

    detect early signs of

    possible fraud or

    criminal activity.

  • Liquid

    Workforce Bank on fluid teams

    focused on results

    9Copyright 2016 Accenture. All rights reserved.

    Banks realize a

    liquid workforce is a

    competitive advantage

    74% of bank executives believe that a more fluid

    workforce would improve innovation.

    55% of jobs in banks that have a digital component

    today (compared to 50% across all industries);

    bank executives expect this number to increase to

    61% in three years.

    75% of banking executives believe in three years

    the proportion of workers will shift towards more

    multi-skilled, flexible employees.

  • To start and progress their

    digital transformation,

    banks must develop new,

    more fluid, workforce

    strategies

    10Copyright 2016 Accenture. All rights reserved.

    Skills

    Build learning as a

    core competency in the

    organization to actively

    generate skills that are

    in demand.

    Projects

    Use technology to

    coalesce and disband

    internal and external talent

    at your disposal for new

    innovative projects.

    Organization

    Optimize workforce

    responsiveness with

    insightful analytics that

    provide a real-time view

    of organizational

    capabilities.

  • 11Copyright 2015 Accenture All rights reserved.

    Forward-thinking banks will go

    further to organize their workforces

    around business outcomes and

    business services (ex, giving

    customers a unified view of their

    financial picture), relying on:

    Best-fit

    delivery

    approach with

    multi-speed

    features

    Banks

    committed

    investment

    Value for

    the

    customer

    Service

    structured

    around an

    outcome

    Knowledge

    and skills to

    deliver and

    sustain it

    Small teams that support the evolution

    of the outcome

    Hard and soft skillsparticularly,

    communications and collaboration

    development and diversity embedded

    into the team

    External skill sources, such as

    freelancers, contractors,

    crowdsourcing, application developers

    and traditional outsourcers, to

    supplement the core internal

    workforce

  • Intelligent

    Automation The essential new

    co-worker in digital

    banking

    Banks have an

    opportunity to improve

    operations

    86% of bank executives agree the widespread use of

    artificial intelligence (AI) provides for a competitive

    advantage beyond cost.

    77% expect AI will be a significant change or complete

    transformation for banking over the next three years

    Banks plan to use cognitive information systems or

    increase intelligent automation:

    - Knowledge worker tasks (91%)

    - Customer interaction/experience (88%)

    - IT tasks (90%)

    - Embedded AI solutions (80%)

    - Machine learning (79%)

  • Better

    outcomes

    Banks can drive more value by pairing

    Intelligent Automation with people

    13Copyright 2016 Accenture. All rights reserved.

    Faster

    decisions

    Machines analyze banks massive data

    simultaneously in seconds to be used by bank

    advisors to offer more personalized service.

    Greater

    efficiency

    Automate, speed up and off-load more routine

    tasks and free executives to focus on higher-value

    functions.

    Highly-tailored

    customer

    service

    Machines quickly access and analyze Big Data to

    verify customer identity, understand problems, find

    solutions, recommend services and hand off to a

    human specialist.

    New ways of

    working

    Machines analyze job applicant traits to predict

    which ones will leave and recommend retention

    strategiesinsights that HR managers can use to

    personalize employee programs.

    Capture new

    revenue

    Serve low-to-medium net worth customers with a

    personal touch which banks could not do profitably

    in the past.

    People + machine possibilities

  • Rally the troops. Leaders must be advocates for doing things different