digital disruption embracing the future through architecture

1. Digital Disruption – Embracing the
future through Architecture
23 November 2017
Viren Trivedi

2. 2© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Introduction
In 2017 our World Retail Banking Report, sees disruption moving towards step change:
The need for change
1
2
3
Key changes:
1. Culture Change
2. Commercial Model
3. Governance & Control
4. Technology

3. 3© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Cultural Change
The Way Forward
Fintechs
Agile - DevOps
Cloud IaaS, PaaS, SaaS
APIs and Microservices
OpenBanking
Globalisation
Technology Innovation
Industry convergence
FinTech Consumer RetailerConsumer Retailer
Utility
Platforms
SaaS
SaaS
Domain and
Micro
Services
on IaaS
and PaaS
Data Centre
Back office
Platforms
Front Office
Platforms
FinTech 3rd Party
Platform
Eco-system management
Identity management
Security Management
API and event economy
Service orchestration

4. 4© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Cultural Change
A more responsive approach
Technology
• A layered architecture which enables
decoupling of services
• A digital platform which enables the
separation of rapidly changing areas from
stable operational platforms
• A security framework to manage the different
service layers effectively
Governance & Operation
• Definition of the new skills and
capabilities required to manage
fast moving digital services
• Tools and processes to manage the
progressive change to a federation
of services
• End to end service model to
support operation and evolution
of services
• Plug and play in line with business
need Commercial Model
• Service management and commercial models to
manage the end to end integration of services in
line with business priorities
• Commercial and contractual frameworks to
manage the spectrum of cloud services
effectively
IT Banking
Platform
Technology
Architecture
Commercial
Model
Operating
Model

5. 5© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Commercial Model
API Monetization
6. Mobile, IoT & Network of Everything:
Enable mobile, IoT & Network of Everything
strategies and capabilities for your business
through device independent APIs
3. Better Collaboration (with Partners,
Suppliers & Ecosystem): Create closer
collaboration with your partners, suppliers
and ecosystem by allowing them to
directly integrate with and access your
services.
4. Speed & Agility: Significantly increase
speed and agility by using APIs to create
looser contractual based coupling
5. Decoupling & Resiliency: Increase
resiliency by leveraging APIs to decrease
architectural coupling allowing for a more
robust and independently scalable platform.
2. Greater Innovation (Internally &
Externally): Create more internal and
external innovation by allowing other Bus,
partners, suppliers & collaborators to
innovate on top of your platform services.
1. Revenue / Channel Expansion: Leverage
APIs to increase reach and depth of
business channels and provided additional
revenue growth for the company. API
channels can create nonlinear growth at
very high margins.
Mobile, IoT
& Network
of
Everything
Better
Collaborati
on
Speed &
Agility
Decoupling
&
Resiliency
Greater
Innovation
Revenue /
Channel
Expansion

6. 6© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Commercial Model
4 models for monetizing APIs as a channelAPIMonetization
Models
Free
Partner pays
Pay as you go Pay as you go , No minimum fee
Tiered First 10 calls free, Tiered pricing for every bucket of 100 calls
Freemium Free for basic, More information premium pricing
Transaction fee One time fee + % of transaction
Partner gets paid
Revenue share Share of revenue flows
Affiliate One Time acquisition costs and option to recur monthly
Indirect Influence
Service awareness Awareness of banking services (ATM locations)
Consumer facing Services for consumer facing apps (interest rates)
Internal usage Mobile app consumption

7. 7© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Governance & Control
A more responsive approach
Core Banking System
Service Layer
…
IT <Banking Platform>
Legend
Banking Partners
Technology Partners
Recognition of digital documents and
validation of signatures and archives
Artificial Intelligence
Personal finance management
Banks giving access to the financial
information of customer
Customer scoring
Identify Verification
Contactless payments ;
payment providers
CRM solution providers
Specialised provider in the financing of
personal and renewable loans

8. 8© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Technology
Identity Management
External Data
Product Management Layer(Oracle SaaS, Apttus SaaS)
Distribution Layer(Adobe as SaaS, Backbase as SaaS)
Social Data
Social Media
Data
Customer Interactions Data Content Management
Web Content Digital Asset
Video
Core banking
Customer Data Engine (CDE)
CrossProduct Management
Product Master Product Bundles Product Pricing
Document
Management
Customer Management Layer (Microsoft SaaS, Fenergo, Forgerock SaaS)
Relationship
Management
Customer Management
Customer
Master
Credit Risk
Assessment
KYC Data
Campaigns& offers
Telephonic
Chatbot Web Tracking
Chatbot
Chatbot
Knowledgebase Customer Master Data
• Retail
• Small/ Medium Business
• Large Business
• Regional
• Private
Full View ofall the Customers
(with History)
DemographicsData
Behavioral Data
- Social Media(what is
used)
- Income and spend profile
- Assetsand Liability
profile
Interactions Data
TransactionsData
Customer
transactions
Customer
entitlements
Employees
Appointments
Credit history and
scores
Real estate Data
Address master
data
On-boarding
data
Loyalty Data
Customer
documents
BusinessPerformance Data
Authentication
Authorization
Preferences&
consent data
In-person E-Mail
Location Tracking Data
Product Portfolio
Credit scores
Campaigns
Next Best
Conversation
Customer Loyalty
Data
Cases / Complaints
Product Ledgers Customer Ledgers DepositsTransactions Liabilities Investments Insurance Policy Insurance Claims
Other external
data Cards
Security
Biometrics
GUID
Security Profile
Core/ System of Record: Data is maintainedfor real time
analytics andon-line purposes.
Sync: Data is synchronised withCore inrealtime orbatch for
historical, analytical or archival purposes
Data referred online
Data mastered / slaved
GUID
GUID
GUID
GUID
Next Best Conversation
Offers
Offers
GUID
Third Parties
Third parties(Agents, Brokers,
Partners)and Offers
Third Party
Services
Third party data Prospects
Other Customer Insights
Prospects Knowledge
Management
Knowledge Bsse
Data and Information architecture needs to embrace federation

9. 9© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
Mainframe
Technology
Leverage the assets and utilise the new
Agility
Enablers
Compliance & Security
Digital
Banking
platform of
the future
Innovation
Open API program
P re-built P SD2
A P Is
A P I M onetization
support
A P I Factory
blueprint
A P I A nalytics
C ustomer C onsent
End to end
encryption
2 way secure
digital trust
DDos P rotection
A P I Gateway
Developer P ortal
A P I Sandbox
A IE Innovation
ecosystem
Industry standard
domain models –
BIA N
M icro services
based middleware
C omplete auto
provisioning
End to end
DevOps tooling
Decoupled Mesh
of Services
Tightly Coupled
Monolith

10. 10© Capgemini 2017. All rights reserved |Digital Disruption – Embracing the future through Architecture | Viren Trivedi | 23 November 2017
The IT Function
 Digital Services Provider
 The IT function procures, implements and provides the Digital Services required.
 Digital Services Integrator
 The IT function provides an Integration Framework to ensure systems can work
together and standards are maintained, buying in some services and integrating
with other services provided by the business.
 Digital Services Governor
 The IT function sets the standards that need to be adhered to when Digital
Services are provided to the business.
What is our role going forward

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