Contenu connexe Similaire à Mit cc turn into action - digital strategies banking v march2012- Similaire à Mit cc turn into action - digital strategies banking v march2012- (20) Plus de Claire Calmejane (7) Mit cc turn into action - digital strategies banking v march2012-2. Digital
MIT for Private
Banks Banking
CoE
Digital
Banking
OBJECTIVES OF THIS DOCUMENT Digital
Retail
Banking
Social
Media
for
Banks
SHOWCASE OUR CC-MIT FRAMEWORKS TUNES FOR BANKS
DRIVE DISCUSSION WITH C-LEVEL EXECUTIVES
LEVERAGE OUR KNOWLEDGE THROUGH THE COE DIGITAL BANKING
2
3. Contents
Introduction
CC-MIT key Findings
Relevant Case Studies
DT in Financial Services
Approach
DT Bank Benchmark
CC FS capabilities
Copyright © 2011 Capgemini Consulting. All rights reserved.
5. Introduction to Digital Transformation
Introduction CC-MIT key Findings DT in Financial Services Relevant case studies Approach CC FS capabilities
“We are now in the midst of a third revolution: digital”
Digital led to re-envision Two major technology-driven
processes, capabilities revolutions have changed the nature
and products of business and society in the past
two centuries
Electrification led to innovation
such as assembly line
Steam Power led to The one at the top today, will not be
industrialization the same at the end
We are already seeing the signs of this transition:
• Startups are emerging who can envision and implement new products and new working and collaboration behaviors
• Digital natives are clamoring for change in their employers and in the companies they buy from
• Some companies, even hundred-year-old firms with billions in revenues, are starting to engage in digital transformation
Copyright © 2011 Capgemini Consulting. All rights reserved.
5
6. Key trends in Digital Banking in 2012
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
There are long-term strategies and new banking functionalities with a quick-win adoption path
1. CUSTOMER CENTRICITY
2. MOBILE BANKING
3. SMART DATA
4. CONVERSATION / SOCIAL MEDIA
5. CORE SYSTEM FLEXIBILITY
QUICK
P2P PFM MultiScreen ID&V
WINS
Copyright © 2011 Capgemini Consulting. All rights reserved.
6
7. And predictions to 2015
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach
2013 65% of banks will replace their transaction-oriented online banking view with PFM
interfaces
Major national defaults in Europe will lead to collapse of more than 1/3 of European
2014 banks
At least 2 major securities exchanges will offer separate ‘low-latency’ trading venues with
short (sub-second) hold on orders
60% of banks will offer mobile-based banking services to business customers
2015
New, external social web and cloud-based services will generate 25% of consumer-
driven banking products and services
Source: Gartner – Predicts 2012: Changing customer needs demand more fluid banking IT systems and processes
Copyright © 2011 Capgemini Consulting. All rights reserved.
7
8. Capgemini Consulting and MIT Center for Digital Business have launched a 3-year joint
research program to further develop the understanding of Digital Transformation
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Results of Phase 1 provides guiderails to traditional companies on their digital journey
Capgemini Consulting is conducting a 3-year research program We have assembled a leading team from MIT to jointly
with the MIT Sloan School conduct our digital transformation research program:
The goal is to understand how the “digital winners” are Prof Eric BRYNJOLFSSON
managing (or have managed) their digital transformation, Director of MIT CDB
Economist / quantification
starting from “brick and mortar” and moving to a “digital Digital productivity
company”, and to identify some guiding principles and best Prof Andy MCAFEE
Principal investigator
practices Engineer / DBA
As global leaders in strategy and transformation consulting,
Enterprise 2.0 / Management
Prof George WESTERMAN
Capgemini Consulting brings valuable guidance every step of the Project lead
Technology / DBA
way, from strategy development through to execution Technology & organization
MIT-CC Publications
Transform to the power of
Connected Digital Social Trimestrial
digital: Digital transformation as Digital Customer
Organizations Transformation of CRM review on Digital
driver of corporate performance operating 2020
People 2.0 Supply chains Transformation
Model
With key industry
leader interviews!
Copyright © 2011 Capgemini Consulting. All rights reserved.
8
9. Companies across industries are faced with the same common challenges in their
transformation process
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Across all three elements of the transformation process: Initiation, Execution, and Coordination
1 2 3
Initiation Execution Governance
MANAGEMENT INERTIA MISSING SKILLS (77%) INCREMENTAL VISION
Skepticism at the top Skills scarcity: mobility, analytics, Lack of a truly transformative vision
social media... Inability to transcend organisational
Lack of building platform
Reliance on external experts and/or boundaries
Lack of understanding DT
vendors
opportunities
REGULATION AND REPUTATION CULTURE (55%)
Security and privacy concerns Changes in jobs due to automation
or information empowerment
Reputational and regulatory
repercussions , particularly in Weak leader vision on digital COORDINATION ISSUES
healthcare and financial services Ineffective coordination across
Labour relations
business units or processes
UNCLEAR BUSINESS CASE IT DIFFICULTIES (50%) Ineffective coordination between
Lack of economic business case to IT systems complexity new and traditional businesses or
justify investment in new technologies processes
Lack of data / information
Lack of understanding of the role of management
infrastructure investment before ROI Poor business / IT relations
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
9
10. Organisations are digitally transforming three key areas of their companies’ value
proposition
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Organizations are digitally transforming customer experience, operational processes, and business models
Customer Operational
e e Business Model
Experience Process
Customer understanding Process digitization Digitally-modified businesses
Analytics-based segmentation Performance improvement Product/service augmentation
Socially-informed knowledge New features Transitioning physical to digital
Digital wrappers
Top line growth Worker enablement New Digital Businesses
Digitally-enhanced selling Working anywhere anytime Digital products
Predictive marketing Broader and faster communication Reshaping organisational
Streamlined customer processes Community knowledge sharing boundaries
Customer touch points Digital Globalization
Customer service Performance management
Enterprise Integration
Cross-channel coherence Operational transparency
Redistribution decision authority
Self service Data-driven decision-making
Shared digital services
Unified Data & Processes Business & IT Integration
Analytics Capability Digital Capabilities Solution Delivery
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
10
11. Increased sophistication of customers, price pressure, and the emergence of e e
digital technology is increasingly shaping how banks interact with it’s customers
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Increased sophistication of customers and the emergence of digital technology creates opportunities:
Selected key challenges for Financial Services Industry
Banks ability to personalize the customer experience, improve retention and increase
Customer customer satisfaction are still under developed. Starting the conversation using external
Experience CRM is an enabler
Develop analytic capabilities in order to utilize and capitalize on customer data across
products and channels. Enables targeted marketing & communication which will increase
up sales and cross sales
Customer understanding Multichannel integration and streamlining customer processes to ensure consistent
Analytics-based segmentation
Socially-informed knowledge customer experience are still key issues for banks
Top line growth Leading practices examples
Digitally-enhanced selling Barclays - first bank in Europe ING Personalized Citibank tablet banking strategy
Predictive marketing
Streamlined customer
to pilot “Microsoft Surface”
processes
Customer touch points Digitally transformed the Through analytic capabilities, “We wanted to fundamentally
Customer service branch concepts through ING delivers personalized rethink customer interactions.”
Cross-channel coherence touch-screen technology and product offers In real time - Tracey Weber, Managing
Self service “digital transformed staff” across channels Director
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Forrester analysis
Copyright © 2011 Capgemini Consulting. All rights reserved.
11
12. Technologies are creating opportunities to increase efficiency and reduce cost e e
for the traditional banks
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
The current state of the European market are forcing banks to focus on cost and retention:
Selected key challenges for Financial Services Industry
Banks are struggling to successfully achieve the two sided, often contradicting challenge
Operational of both customer centricity and efficient operations at the same time is inextricably
Process linked to the ability to capitalize on the next generation corporate assets such as
technology and customer information (pattern based decision making)
Pressure on margins as well as more sophisticated customer expectations require focus
on lean processes across business units – digitalization of processes
Process digitization
Performance improvement Traditional banks, with its legacy, are also struggling to transform the workforce (e.g.
New features (digitally transform the advisory role) and ensure coolaboration across silos
Worker enablement Leading practices examples
Working anywhere anytime Allianz digitized processes to Groupo BBVA devices are changing the
Broader and faster reduce cost way people work
communication
Community knowledge sharing
Allianz invested between 500 M€ - 1B€ in a 2 year iPad and iPhone help Grupo BBVA to
Performance management digital transformation program. They reduced the accelerate essential workflows, improve
Operational transparency customer centers from 13 000 FTEs to 9 000 FTEs internal communications, and provide the best
Data-driven decision-making through Lean techniques combined with a digital possible services to its 49.8 million customers
operating model worldwide
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Forrester analysis
Copyright © 2011 Capgemini Consulting. All rights reserved.
12
13. A new form of competition have been evolving and traditional banks are e e
facing disruption in their business models
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Banks can not wait and watch while non traditional players are threatening the traditional value chain
Selected key challenges for Financial Services Industry
Traditional banks, with their legacy, are still struggling with the transitioning from
Business physical to digital
Model Within the cards and payments industry a new form of competition have been
evolving where the traditional card companies are facing disruption in their business
models, and new non-financial players make traction in their value propositions
Digitally modified This trend can also be seen in consumer credit, mortgages, etc where peer to peer
businesses services and services from non traditional players like google, Apple, Smava, etc, are
Product/service augmentation
Transitioning physical to digital
threatening the traditional value chain
Digital wrappers
Leading practices examples
New Digital Businesses Lloyds TSB joins MasterCard PayPass is a new Paypal payments
Digital products
Reshaping organisational Samsung and Visa “contactless” way to pay. reach 7b$ in Q1 2012 and
boundaries announce a partenership with
terminico for direct
Digital Globalization Will provide Near field There are nearly 55 transactions
Enterprise Integration communication-enabled million PayPass cards 7b$
Redistribution decision phone payments at next and devices in use at 0,1b$
4b$
authority 0,7b$
year's London Olympic over 146,000 merchant
Shared digital services 2009 2010 2011 Q1 2012
Games locations worldwide
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011, Capgemini Consulting analysis
Copyright © 2011 Capgemini Consulting. All rights reserved.
13
14. While the most common usage of these technologies is in substitution, several firms are
also using them to extend or transform their processes and functions
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
“We identified 3 level of usage of technologies: Substitution, Extension, Transformation”
SUBSTITUTION EXTENSION TRANSFORMATION
Smart Data, Cards analytics
Simple apps or Facebook pages Mobile Banking Services, PFM Convergence Bank-Retail
Customer service online Streamlining Customer process Services on Demand
Social Loyalty programs E-Billing, HR digitization Real-Time updates
Customer Experience Operational Processes
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
14
15. Traditional banks are faced with several opportunities and threats, and are to some extent
forced to engage in a Digital Transformation
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
What does Digital Transformation mean for the ‘Traditional’ bank industry?
Customer Operational
Business Model
Experience Processes
Understanding Digitally-modified Process digitization
Conversation Social Listening Customer centric Paperless adoption technology
Payments
Card analysis Tools Mobile Banking Services on Demand
Sales New B2E
Benchmark pricing tools
Tablet Sales Social Broker Platforms E-Billing
Interactive Billing Knowledge sharing
Crowdfunding P2P
SmartData Gamification Geolocation HR Process digitization
Social Bank
Service Lending seg. Partnerships Payment
Customer Service Online
Globalization Digital Currency
Accounts aggregators PFM Open Bank Mobile wallet
Social Media Branding Bank in a box New ways of payement
Social Loyalty programs
Digital Capabilities
Bank AppStore Cloud Real-Time Information Digital Platform ID&V
Source: Capgemini Consulting Digital Banking UK Financial Services O (c) 2012
* Technologies adopted by traditional banks are highlighted in red
Copyright © 2011 Capgemini Consulting. All rights reserved.
15
16. Successful Digital Transformations in our study used a common set of elements that works
together in an iterative approach which enables constant learning and development
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
“To succeed in your Digital Transformation Journey you have to focus on the ‘how’ more than the ‘what’”
TRANSFORMATIVE DDIGITAL ISION
TRANSFORMATIVE IGITAL V VISION
STRATEGIC ASSETS
PRODUCTS & PARTNERSHIP CUSTOMER
SALES FORCE
CONTENT NETWORK KNOWLEDGE
THE “HOW” IS THE POINT OF SALE & PRODUCT
BRAND CULTURE
WAY THAT SENIOR DISTRIBUTION CHANNELS INNOVATION
EXECUTIVES DRIVE
CHANGE THROUGHOUT THE “WHAT” IS
THE ORGANIZATION. DIGITAL BUILDING BLOCKS
SPECIFIC SET OF
DIGITAL ENGAGEMENT
DIGITAL GOVERNANCE
THIS INCLUDES Customer Operational Business DIGITAL
CREATING AND Experience
E Process E Model
TRANSFORMATION
COMMUNICATING ELEMENTS
VISION, ESTABLISHING Customer Process Digitally-modified
understanding digitization businesses IMPLEMENTED BY
GOVERNANCE AND THE ORGANIZATION,
MEASUREMENT Top line growth Worker enablement
New digital
INCLUDING THE
MECHANISMS, AND businesses
STRATEGIC ASSETS
BUILDING A DIGITAL- Customer touch Performance Digital
AND DIGITAL
READY CULTURE. points management globalization
INVESTMENTS THAT
Digital Capabilities ARE USED TO CREATE
THOSE ELEMENTS.
DIGITAL INVESTMENT
SKILLS INITIATIVES
ITERATIVE TRANSFORMATION ROADMAP
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
16
17. The CC-MIT maturity model enables companies to position themselves on the « digital
maturity matrix »
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
The CC-MIT maturity model enable companies to position themselves on the « digital maturity matrix »
FASHIONISTAS DIGIRATI
• Strong overarching digital vision
• Many advanced digital features
(such as social, mobile) in silos • Good governance
Our approach aims at assessing • No overarching vision • Many digital initiatives generating
companies maturity on two major • Underdeveloped coordination
business value in measurable
ways
topics : the firms’ digital intensity
DIGITAL INTENSITY
• Digital culture may exist in silos • Strong Digital culture
(“what is the firm doing?”) and the
transformation management
intensity (“how is the company BEGINNERS CONSERVATIVES
doing it?”) • Management skeptical of the • Overarching digital vision exists,
business value of advanced digital but may be underdeveloped
technologies
• Few advanced digital features,
• May be carrying out some though traditional digital
experiments capabilities many be mature.
• Immature digital culture • Strong digital governance across
silos
• Taking active steps to build digital
skills and culture
TRANSFORMATION MANAGEMENT INTENSITY
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
17
18. The majority of the participants in the CC-MIT maturity analysis are beginners, with
relativly low digital- and transformation management intensity
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Figure below show how companies in our study scored on an initial qualitative assessment of digital maturity
FASHIONISTAS DIGIRATI
13% 17%
Our approach aims at assessing
companies maturity on two
major topics : the firms’ digital
intensity (“what is the firm
DIGITAL INTENSITY
doing?”) and the
transformation management
intensity (“how is the company
doing it?”)
50% 19%
BEGINNERS CONSERVATIVES
TRANSFORMATION MANAGEMENT INTENSITY
Note: Digital maturity assessments were conducted by the research team using information from interviews.
Vertical and horizontal lines represent median points for the two dimensions in the figure.
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
18
19. Each ‘Digiratis’ has its own flavour and follow different paths in their digital journey, but
end up with strong models embracing digital
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
BBVA DNB Capital One
Customer centric Mobile Banking Smart data
http://www.apple.com/ipad/business/
profiles/bbva/ To be the champion of digital Compared to peers such as
banking DNB took immediate American Express, Capital One
action and restructured the has exhibited faster growth
5 March 2010: BBVA’s Executive which can be attributed to
whole organization and set up
We need to think of different digitization and smart data
a digital platform across silos
approaches to serve customers, strategies
and technology is a key element
in our business model.”
SpareBank1 SimpleBank Paypal
Social media Geolocation Payment
http://www.youtube.com/watch?feat
http://vimeo.com/29339937 ure=player_embedded&v=V7q1jx8mYi
SpareBank 1, Norvegian 8
Champion in Social Media use
them as their new “We focus exclusively on the 1 feb 2012: Paypal announce that
communication platform user experience of banking”* they partnership with Terminico &
generating substantial
HomeDepot to pay entering your
communication economies
mobile number in the terminal
Copyright © 2011 Capgemini Consulting. All rights reserved.
19
20. BBVA digital transformation was strongly driven by C-level executives with a radical
approach. Benefits are renew of their band, customer centric approach and financial
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
“5 March 2010: BBVA’s Executive We need to think of different approaches to serve customers, and technology is a key
element in our business model.”
Customer Operational
e e Business Model
GROUPO BBVA, A SPANISH BANKING GROUP, LEVERAGE DIGITAL TO FOCUS ON CUSTOMER Experience Process
Customer Digitally-modified
Process digitalization
understanding businesses
Legend: white: not done / light grey: partially done / dark grey: fullly done
Top line growth Worker enablement New Digital Businesses
Differentiating on communication Customer touch points
Performance
Digital Globalization
• BBVA has the opportunity to take a niche that provides management
Digital Capabilities
sustainable differentiation, a niche that its competitors
BBVA Innovation Center is a do not currently occupy. This niche will guide the experiences and communication they offer to the
meeting point between The Bank stakeholders at all of the points of contact, both physical and virtual
and the Society through Technology. Madrid Contactless
• BBVA is leading 'Madrid Contactless', a project designed to equip Madrid's high traffic retailers with
contactless POS terminals
• High presence on Social Media 94 official profiles in Facebook and Twitter
BBVA is switching it’s 110,000 staff to use Google enterprise software
• BBVA is using Google applications (email, calendar, docs, chat, video conferencing and other
collaboration tools) to "achieve a cultural change" and get "the whole company working together"
BBVA teamed across the 26 countries where BBVA is based
with IDEO to • The roll-out of Google Apps will be staggered, with more than 35,000 BBVA workers
develop a new
ATM system Brand strategic position oriented to the digital model
The system based on customer • Customer BBVA Centric Bank, is a project that combines the vision of the Internet with all that
needs. It’s also an automated teller
comprises multi-channel experience
machine designed to gain a
competitive advantage
Source: Capgemini Consulting- CoE Digital banking– FS Spain Expertise (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
20
21. To be the champion of digital banking DNB took immediate action and restructured the
whole organization and set up a digital platform across silos
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Phase 1 of the transformation was focused on cost cutting, phase 2 on customer experience.
Customer Operational
e e Business Model
DNB, A NORVEGIAN BANK, MOBILE CHAMPION Experience Process
Customer Digitally-modified
Process digitalization
understanding businesses
Legend: white: not done / light grey: partially done / dark grey: fullly done
Top line growth Worker enablement New Digital Businesses
DNB is a leader in mobile banking Customer touch points
Performance
Digital Globalization
• 80% of their customers are using online banking. They management
Digital Capabilities
Norwegian bank with more than also target the communication via e-mailing. The
customers decide which channel they want to address,
2,5 million customers channels are not fully integrated yet, as digital and
800,000 customers traditional business are running in parallel
• DNB is looking to develop a CRM with an operational side and an analytical side, as well as
using mobile banking on SMS
connecting the traditional one to the digital platform unit
With the legacy that comes with • The bank has developed several apps for bank account and services access
several mergers and acquisitions Phase 1 of the digital transformation program focused on cost cutting
DNB has focused on unifying the
• DNB has digitized a lot of their operational processes for sign-up, loan subscription and others
group on one digital platform
• They are leader in Mobile services; DNB offer payment by SMS, loan by SMS and so on
“Rule digital banking” Business has been digitally transform and could be extended group-wise
stated as must win battle by end • The bank is digitally transformed and envision to create a platform that could be extended across
of 2013 the group in several countries
Digital platform has been built across silos embedding all customer facing
Currently focus on digitalizing
• They reorganized their Business/IT governance, split in 3 departments to be able to deliver a digital
back end processes to reduce
unified backbone: the reorganization of IT is a main factor here to be able to succeed
costs and will shift the focus
towards the front end and • The biggest change was the relationship between business and IT, which are now highly connected
customer experience
Source: Capgemini Consulting-CoE Digital banking– FS Norway Expertise (c) 2012
Copyright © 2011 Capgemini Consulting. All rights reserved.
21
22. Compared to peers such as American Express, Capital One has exhibited faster growth
which can be attributed to digitization and smart data strategies
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
The focus on advanced digital initiatives has helped Capital One maintain sector leading growth and steady profits
CAPITAL ONE, ANALYTICS CHAMPION Customer
e
Operational
e Business Model
Experience Process
Legend: white: not done / light grey: partially done / dark grey: fullly done Customer
Process digitalization
Digitally-modified
understanding businesses
Digital strategy focused on smart data Top line growth Worker enablement New Digital Businesses
• Focus on advanced analytics and sophisticated CRM Customer touch points
Performance
Digital Globalization
“Big companies sometimes systems to profile its customers and minimize its risks management
try to have a silver bullet. But Digital Capabilities
for meeting needs in the Extensive use of Digital Data Analytics
digital space, you need to be • Developed a complex data analytics system which uses a combination of credit bureau and company
fast, and get out there and gathered information to effectively segment the market for credit cards
learn. You need to think big,
start small, learn quickly and Co-Creation of their product with their clients
then scale.“ • Launched the ‘Card Lab’ in 2007 which allows customers to create their own credit card through an
Innovation director ,Capital online portal
One • Various card features such as visual appearance, rewards and interest rates can be modified
Development of IT Infrastructure
• Developed in-house IT capability, which improved the linkages between different units thereby
maximizing the value derived from analytics
• Digitized telephone customer service in order to improve efficiency
Results
• Superior growth rate compared to peers
• Net profit grew at a CAGR of 19.3% between 2000-2010 compared to 3.74% for American Express
during the same period
• Better targeted offerings compared to competitors
Source: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012
Copyright © 2011 Capgemini Consulting. All rights reserved.
22
23. SpareBank 1, Norvegian Champion in Social Media use them as their new communication
platform generating substantial communication economies
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
"Sparebank 1 has been an early adaptor of social media"
Customer Operational
e e Business Model
SPAREBANKONE, A NORVEGIAN BANK, SOCIAL MEDIA CHAMPION Experience Process
Digitally-modified
Customer understanding Process digitalization
businesses
Legend: white: not done / light grey: partially done / dark grey: fullly done
Top line growth Worker enablement New Digital Businesses
What they do Customer touch points
Performance
Digital Globalization
management
• Build trust: more dialogue, listening and sharing than
Digital Capabilities
selling and marketing
• Communicate in times of technical trouble, security issues e.g.
First Smartphone app demo
• Develop innovative products with our customers http://www.youtube.com/watch?v=AoP
HK7VqXF0
• Provide customer service through social media
Demo of Digital signature for logon identification
We load all http://www.youtube.com/watch?v=pz3j
K-Zj1zE&feature=related
our films to
Youtube
Mobilbank PM – Statistics first week of production Demo of new Smartphone app
• Total number downloads of the first App 133 000 http://www.youtube.com/watch?v=mIC
CHfQmYHc
We monitor listening on social • Account balance is the # 1 service
Demo of our internet bank
media • 3% of all logons performs a payment https://demo.sparebank1.no/
• 11% of all logons performs a transfer
Social media is their new communication platform !
We had the first bank blogg in
the Nordic region
Source: Capgemini Consulting-CoE Digital banking– FS Norway Expertise (c) 2012
Copyright © 2011 Capgemini Consulting. All rights reserved.
23
24. Banksimple is a start-up based on Geolocation usage, but their disruptive concept shake
the traditional banking world in US
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
"Our User Experience philosophy is, 'Let's make it nearly impossible for you to fail.'"
Customer Operational
e e Business Model
BANKSIMPL, A DISRUPTIVE B-MODEL LEVERAGING GEOLOCATION AND ANALYTICS Experience Process
Customer Digitally-modified
Process digitalization
understanding businesses
Legend: white: not done / light grey: partially done / dark grey: fullly done
Top line growth Worker enablement New Digital Businesses
Banksimple is a disruptive b-model Customer touch points
Performance
Digital Globalization
management
• Banksimple is an online interface that sits on top of back Digital Capabilities
“simple is not a bank” end systems provided by partner banks (Bankcorp and
CBW)
it is a service that utilises back
• There is no branch network to service.
end systems provided by partner
banks. • In contrast to most of the US consumer banking industry, BankSimple levies no monthly charges.
• Revenue is generated by sharing interest margin and levying a “interchange fee” on customers card
Currently offering serving a transactions. This is passed through by its partner banks
small number of invite only Streamlining Customer experience is key
customers. Funded by $13
million venture capital, it is • Design principle is to produce the online banking platform for mobile first - this ensures simplicity
and clarity.
strongly differentiated against
traditional US banks • Banksimple communicates “socially” with its customers and potential customers offering views on
how they can use it’s services to improve their lives. “The cost of your vices” is a recent blog article.
The service is based on geolocation, interactivity and analytics adoption
• Sophisticated analytics are utilised - geolocation of purchasing, smart categorisation and available
to spend.
• Interactive e-statement where you can click and group expenses per type, location
• Card analytics, personal finance management tools integrated
“We focus exclusively on the
• Off the shelf utilised for large portions of the technology (Andrea , TxVia)
user experience of banking”*
Source: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012 *Bill DeRouchey - BankSimple, Creative Director
Copyright © 2011 Capgemini Consulting. All rights reserved.
24
25. Several banks partners with financial innovation companies to accelerate new technology
adoptions
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Customer experience
Division Product &
Conversation Marketing & New Services Innovation service
sales
Retail
Personal
banking
geolocation
Credit
Corporate
banking
Operational process
Billing & Online bank Mobile bank
Payment Accounts Currency
invoicing operation operation
Insurance
Insurance
P2P & crowd-
Investment Transfer funding
banking Risk & Capital
Fraud market
Settlement
3rd party
Group functions
API store Security Authentication IT & data HR/payroll
management
Advisory
Source: Capgemini Consulting-CoE Digital banking– FS UK Expertise (c) 2012
Copyright © 2011 Capgemini Consulting. All rights reserved.
25
26. CC-MIT Recommendations to drive digital transformation
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
1. ASSESS YOUR COMPANY’S DIGITAL MATURITY
2. CREATE A TRANSFORMATIVE VISION OF THE FUTURE
3. INVEST IN FOUNDATIONAL DIGITAL CAPABILITIES
4. PROVIDE GUIDERAILS
5. CONSTANTLY COMMUNICATE AND ENHANCE THE VISION
Source: Capgemini Consulting-MIT Analysis – Digital Transformation: A roadmap for billion-dollar organizations (c) 2011
Copyright © 2011 Capgemini Consulting. All rights reserved.
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27. Capgemini Consulting has a portfolio of offers and credentials including Digital Banking
and Private banking
Introduction CC-MIT key Findings DT in Financial Services Maturity Assesssement Relevant case studies Approach CC FS capabilities
Multi- Channel Customer
Management Experience
Digital Operating Listening and
Models Digital banking Conversation
and private
banking
People 2.0 Strategy Digital Services &
& Roadmap Technology
Smart data Governance
Source: Capgemini Consulting-MIT Analysis
Copyright © 2011 Capgemini Consulting. All rights reserved.
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