Technology moving faster than the Banks
-
Upload
philippe-guenet -
Category
Technology
-
view
263 -
download
1
Transcript of Technology moving faster than the Banks
![Page 1: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/1.jpg)
GFT Group 25-Apr-16 1
Technology
moving faster
than the Banks
Philippe Guenet
April 2016
![Page 2: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/2.jpg)
GFT Group 25-Apr-16 2
Philippe Guenet
ESC Marseille Provence - Promo 1995
Back then :
ESC claim to fame
Started work in Internet / eCommerce
Self-made into Technology
Architect / CTO in Consultancy (Vodafone / New International / M&S / O2 / Ladbrokes / etc)
Now:
GFT – Specialised Financial Services Consultancy
Executive Delivery Manager
Working with tier 1 investment banks
Introduction
![Page 3: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/3.jpg)
GFT Group 25-Apr-16 3
What technology means to Banking?
![Page 4: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/4.jpg)
GFT Group 25-Apr-16 4
The journey of money
Retail Banking Commercial & Corporate Banking
Wealth and Private Banking Investment Banking
€10
€1.000.000
Wholesale markets
Corporate
Finance
Market
access
Risk &
Compliance
Funds
Brokerage
servicesBuy-side
![Page 5: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/5.jpg)
GFT Group 25-Apr-16 5
What technology means to Banking?
![Page 6: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/6.jpg)
GFT Group 25-Apr-16 6
@genda
• What is “tech disruption”?
• How are Banks coping?
• Trends & solutions
![Page 7: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/7.jpg)
GFT Group 25-Apr-16 7
Current Technology trends
Source: dilbert.com
![Page 8: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/8.jpg)
GFT Group 25-Apr-16 8
What digitalisation means?
User Experience
Customer
Experience
INTERNET
MOBILE
CROSS-CHANNEL
SOCIAL
INTEGRATION
SELF-SERVICE
ALWAYS ON 24/7
WEB
IoT
AUTOMATION
PERFORMANCE
STANDARDS
EXCEPTION
MANAGEMENT
OPEN
TECHNOLOGY
COST REDUCTIONS
OperationsInnovation
Disruption
NEW MODELS
NEW CUSTOMERS
FEEDBACK
NEW
PARTNERSHIPS
ECOSYSTEM
NEW
TECHNOLOGIES
GLOBAL
![Page 9: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/9.jpg)
GFT Group 25-Apr-16 9
Fintech = Financial Services Technology Start-ups
![Page 10: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/10.jpg)
GFT Group 25-Apr-16 10
What are Fintechs about?
Source: FintechInfo.com – Fintech Mind Map
![Page 11: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/11.jpg)
GFT Group 25-Apr-16 11
Source: FintechInfo.com – Fintech Mind Map
What are Fintechs about?
Payments
Insights
Blockchain
Security
eFunds
Crowd lending
Utilities
Infrastructure
Crowd funding
Personal banking
![Page 12: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/12.jpg)
GFT Group 25-Apr-16 12
The revolution of Bitcoin
![Page 13: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/13.jpg)
GFT Group 25-Apr-16 13
Blockchain, biggest disruption to come
![Page 14: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/14.jpg)
GFT Group 25-Apr-16 14
Changing world of Banking
“Banking is
necessary,
Banks are
not.” Bill Gates
![Page 15: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/15.jpg)
GFT Group 25-Apr-16 15
Future challengers?
(ApplePay)
(PayPal)(Amazon Web Services)
![Page 16: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/16.jpg)
GFT Group 25-Apr-16 16
So, if technology is so
critical, what are banks
doing about it?
![Page 17: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/17.jpg)
GFT Group 25-Apr-16 17
Banks pre 2008
![Page 18: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/18.jpg)
GFT Group 25-Apr-16 18
And then…
What happened in
2008?
![Page 19: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/19.jpg)
GFT Group 25-Apr-16 19
2008
![Page 20: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/20.jpg)
GFT Group 25-Apr-16 20
2008
Sub Prime collapse
Global Financial Crisis
Systemic risk, rapid contagion
Collapse of Lehman Brothers
Banks too big to fail
State intervention
![Page 21: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/21.jpg)
GFT Group 25-Apr-16 21
2008 – Lessons learnt
Systemic weakness (OTC)
Limited aggregated risk management of
counterparty trades
Highly manual reporting
Growth from M&A resulted in
substantial IT legacy
Insulation between banking and
investment arms necessary
![Page 22: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/22.jpg)
GFT Group 25-Apr-16 22
And then…
But it is what happened
since 2008 that
matters more…
![Page 23: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/23.jpg)
GFT Group 25-Apr-16 23
Investment banks : “between the rock and the hard place”
The world of Investment Banks has
changed for ever
Recapitalisation
Regulatory Compliance
Collaterisation of trades
Transformation of OTC markets – more
vanilla / lower margins
Ring fencing Retail vs Investment banks
Low interest rates removing volatility from
money markets
More Flow-Business
Punitive fines for failing Controls
“New Normal of Banking”
Meet Regulatory Compliance
Cut Costs + Refocus Business
![Page 24: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/24.jpg)
GFT Group 25-Apr-16 24
Digitalisation : also “between the rock and the hard place”
Technology has changed how customers
engage
Digital 24/7 self service vs face-to-face
Digital payments
New entrants on profitable Business
Banks are slow to disengage from Legacy
Joined-up cross-channel experience
Cut and reposition high street presence
Fight increasing Fraud and Financial-Crime
(KYC, AML)
“New Normal of Banking”
The future is Digital but how quickly can one
transform the present?
![Page 25: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/25.jpg)
GFT Group 25-Apr-16 25
Trends and Solutions
for a rapidly changing
world of Banking?
![Page 26: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/26.jpg)
GFT Group 25-Apr-16 26
Turn Technology from a Constraint to an Advantage
Untangle the spaghetti of IT legacy
Reduce duplication of systems
Modernise technologies
Golden source of Data
Real-time
Straight-through processing – reduce exceptions
Mutualise non-differentiated capabilities (Utilities)
Leverage Ecosystems of Fintechs rather than
compete
Embrace Open Standards
Do it fast!!
“New Normal of IT”
Simplify Architecture, master Data, use open
standards, reduce costs, accelerate change
![Page 27: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/27.jpg)
GFT Group 25-Apr-16 27
New Management Techniques
Lean management techniques
have brought transformation to
Automotive and manufacturing.
IT is going through its industrial
revolution. Same needs, same
solutions: Lean IT.
![Page 28: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/28.jpg)
GFT Group 25-Apr-16 28
Inflection point
Banks are challenged but intrinsically resilient
Investment Banking needs to rapidly readjust by mastering the constraints of IT
All forms of Banking need to digitalise by embracing innovation and new ways to engage with customers using Technology
The Ecosystem is a threat as well as an opportunity
There will be casualties. Mastering Technology will play a key role in successfully building the future of Banking
![Page 29: Technology moving faster than the Banks](https://reader034.fdocuments.net/reader034/viewer/2022051709/587ada881a28ab542b8b51a5/html5/thumbnails/29.jpg)
GFT Group 25-Apr-16 29
Thank you
Philippe Guenet
@WeAreLeanIT