Disruption in Digital Banking

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Disruption in Digital Banking By @joukpleiter and @jelmerdejong

Transcript of Disruption in Digital Banking

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Disruption in Digital BankingBy @joukpleiter and @jelmerdejong

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Thursday, December 18th, 1pm EST

§ Thank you for joining!

§ Use the GoToMeeting panel to ask questions

§ Participate on Twitter: #backbase

§ Session will be recorded and slides will be shared

via email and Slideshare within 48 hours

Webinar : Disruption in Digital Banking

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Customer Behavior is Changing

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Customer Behavior is Changing

Customer Behavior : Convenience

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Disruption : Uber

Customer Behavior is Changing

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Small Start-ups Getting Big…

Customer Behavior is Changing

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Disruption : Lending Club

Customer Behavior is Changing

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Small Start-ups Getting Big

Customer Behavior is Changing

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Customer Behavior is Changing

Source: Thomas J. Loverro

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Challenge the Challenger.

Become a Disruptor Yourself.

Accelerate Digital Transformation.

Challenge the Challenger

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Digital Transformation Key Focus Points for 2015

1. Start with the Customer Experience

2. Pursue an Omni-Channel Delivery Model

3. Regain Control of your Digital Strategy

4. Define your Inspiring Purpose

Digital Transformation

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1) Start with the Customer Experience

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1) Start with the Customer Experience

Customer Behavior : Shift to Digital

0%

10%

20%

30%

40%

50%

60%

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Times

Branch

Phone

ATM

Tablet

Mobile

0%

10%

100%

20%

30%

40%

50%

60%

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7-10 Times per Month

3-5 Times per Month

5-10 Times per Year

1-2 Times per Year

20-30 Times per Month

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1) Start with the Customer Experience

Customer Behavior Shift : Instant & Seamless

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The Journey Start Here… Any Time – Any Place

TechnologySystems

Processes

Mind Devices Applications Companies

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1) Start with the Customer Experience

But Requires Hard Work at Infra Level

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The hard workhappens here

TechnologySystems

Processes

Mind Devices Applications Companies

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1) Start with the Customer Experience

Approach : Design for Moments of Truth

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Identifythe mobile moments and context

Designthe mobile engagement

Engineeryour platforms, processes, and

people for mobile

Analyzeresults to monitorperformance and

optimize outcomes

Start smallwith a platform

to extend

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1) Start with the Customer Experience

New Business Technology Strategy

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Design starts from inside out.

Customer FocusDesign starts

from outside in.

Organizational FocusUX

Data

Software

Hardware / Infrastructure

Network

UX

Data

Software

Hardware / Infrastructure

Network

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2) Pursue an Omni-Channel Delivery Model

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Omni-Channel Customer Journey

2) Pursue an Omni-Channel Delivery Model

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2) Pursue an Omni-Channel Delivery Model

Traditional Bank = Legacy Approach

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UX & Marketing

Banking APIs

Banking Infrastructure

Rails

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2) Pursue an Omni-Channel Delivery Model

Disruptors = Flexible CX Layer + API’s

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API API API API API

Orchestration

UX & Marketing

Banking APIs

Banking Infrastructure

Rails

API API API API API

Orchestration

API API

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Widgets – Pre-Build UX Components

2) Pursue an Omni-Channel Delivery Model

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Omni-Channel Hand-over & Orchestration

Products Analytics

Orchestration / Context / Personalization Services

CRM …

2) Pursue an Omni-Channel Delivery Model

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2) Pursue an Omni-Channel Delivery Model

Critical Interactions at Moments of Truth

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That means building APIs for your core processes.

An airline Example,

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3) Regain Control of your Digital Strategy

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✓  Right info, right time, right place✓  Seamless Customer Journey

✓  Personal & Relevant

✓  Configuration without IT ✓  Online Channel Optimization

✓  Cross & Up-sell Campaigns

✓  Integration ✓  Security

✓  Agility / Business – IT Alignment ✓  Innovation on a solid foundation

Customers

IT

Business

Challenge : How to Empower all Stakeholders?

3) Regain Control of your Digital Strategy

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3) Regain Control of your Digital Strategy

The soloed digital banking team

27 Learnings from

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3) Regain Control of your Digital Strategy

The soloed digital banking team -- reality

28 Learnings from

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3) Regain Control of your Digital Strategy

§  Team of 200§  30m euro budget§  Just 14 months§  1.6 million lines of code§  50k test conditions§  200 innovative features§  1700 screens§  4 million customers§  3 countries§  All products & services§  Corporation not a startup

How mBank did became a disrupter

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§  Break all silos

§  Move to dedicated location

§  Freedom & Accountability

§  Non-standard motivation

§  Core value: collaboration

Learnings from

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3) Regain Control of your Digital Strategy

Disrupt : Apply Lean Start-up Principles

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4) Define your Inspiring Purpose

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4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

What is your Inspiring Purpose?

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4) Define your Inspiring Purpose

UMPQUA Bank

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4) Define your Inspiring Purpose

UMPQUA Bank

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We are Backbase

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We are Backbase

Customer Experience Platform

Existing Systems

Superior UX (Your Customers)

Visual Editor (Digital Managers)

Business In control

Customer In control

IT In control API API API API API

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We are Backbase

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Customer Experience Solutions. Delivered. We are Backbase

Decision Matrix: Next Generation Digital Banking Platforms Jaroslaw Knapik (December 2013)

“We believe Market Leaders are worthy of a place on most technology selection shortlists. The vendor has established a commanding market position with a product that is widely accepted as best-of-breed."

“Backbase is Market Leader”

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Disruption in Digital Banking: Q & A