RETAIL
BANKING
TRENDS 2022

Top Retail Banking Trends 2022 2
Company Confidential © Capgemini 2021. All rights reserved |
TOP RETAIL BANKING TRENDS 2022 – PRIORITY MATRIX
Market disruption
1 The blurring lines between Super FinTechs and banks
2 Banks double down on cost transformation to improve financial health
Creating & enabling new value
3 Banking-as-a-Service can unlock latent market potential
4 Banking on the cloud to unlock new value frontiers
5 The power behind experiential Banking 4.X era: emerging data ecosystems
6
Frontrunners will build digital-only subsidiaries to remain relevant and resilient in
the FinTech era
Enterprise security and sustainability
7 Cybersecurity is becoming a competitive differentiator for banks
8 Banks to step up their transition to become planet-centric enterprises
New horizons/industry evolution
9 5G projects and exploration to pick up speed
10 DeFi-ning the next banking evolution
Relative
priority
of
adoption
(2022)
Business impact (2022)
Medium
High
Significant
Medium High Significant
9 6
10
3
2 4 5
8
7
1

Top Retail Banking Trends 2022 3
Company Confidential © Capgemini 2021. All rights reserved |
THE BLURRING LINES BETWEEN SUPER FINTECHS AND BANKS
Super FinTechs are reshaping the
FS industry by disrupting three
things dear to incumbents: market
share, margins, and customer base.
Mobile app
Multi-currency card
Revolut premium
Revolut business
Cryptocurrencies
Euro IBAN account
Travel insurance
Revolut Metal
Vaults
Open API
App store
Stock trading
Donations
Rewards
Commodities
Revolut junior
Savings Vault
2015 2016 2017 2018 2019 2020
Mobile app
Multi-currency card
Mobile app
Multi-currency card
Mobile app
Multi-currency card
Revolut premium
Revolut business
Cryptocurrencies
Euro IBAN account
Mobile app
Multi-currency card
Revolut premium
Revolut business
Cryptocurrencies
Euro IBAN account
Travel insurance
Revolut Metal
Vaults
Open API
App store
Mobile app
Multi-currency card
Revolut premium
Revolut business
Cryptocurrencies
Euro IBAN account
Travel insurance
Revolut Metal
Vaults
Open API
App store
Stock trading
Donations
Rewards
0.1 million
0.6 million
2 million
6 million
12 million
Business products
Retail products New product/service
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 4
Company Confidential © Capgemini 2021. All rights reserved |
BANKS DOUBLE DOWN ON COST TRANSFORMATION TO IMPROVE
FINANCIAL HEALTH
With the Banking 4.X era on
the horizon, financial
institutions must focus on
efficiency and productivity.
Banks are re-assessing their
cost base as a hedge
against uncertainties.
Rethinking IT spending
priorities
Restructuring banking
operations
Close
branches
Reduce
discretionary
spending
Scale down
non-performing
business lines
Optimize
workforce
costs
Exit
non-
profitable
geographies
43%
51%
61%
Postpone
large digital
transformation
initiatives
34%
67%
Decrease
IT budget for
maintenance
39%
Outsource
mid- and
back-office
activities
45%
Reduce
IT budget
for new
initiatives
32%
61%
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 5
Company Confidential © Capgemini 2021. All rights reserved |
BANKING-AS-A-SERVICE CAN UNLOCK LATENT MARKET POTENTIAL
Embracing the BaaS platform approach will
allow banks to leverage ecosystem capabilities
to create and tap new value streams. Banks
with a BaaS platform are well-positioned to
harvest value from the burgeoning embedded
finance market – an addressable market worth
more than USD7 trillion by 2030
Traditional banks
% of executives in
agreement with the
benefits realized
Innovate and
create new
banking
products and
services
Expand customer
base
Reduce
distribution &
customer
acquisition costs
Gather new data
about customers
Diversify
revenue
sources
80%
77%
69%
74%
70%
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 6
Company Confidential © Capgemini 2021. All rights reserved |
BANKING ON THE CLOUD TO UNLOCK NEW VALUE FRONTIERS
Cloud computing is enabling banks to embrace the NEW and decode the NEXT evolution of banking – Banking 4.X. Cloud
deployments are financially efficient, enabling substantial savings while allowing organizations to benefit from new functionalities
in terms of innovation and time to market for products and services.
improved productivity
Free the workforce to spend more time
on value-adding tasks
robust business continuity
management
Maintain high service-level adherence
and stable straight-through processing
Cloud transformation
benefits:
banking executive
view
72%
60%
reduced Total Cost of
Ownership (TCO)
Switch to OPEX from CAPEX
model with cloud migration
75% of executives
believe
simplified operations
Decouple banks legacy IT with
modern cloud-based applications
72%of executives say
elastic environment
On-demand scalability of technology,
processes, and capabilities
66% of executives
highlight
of executives state
faster innovation
Reduced time to market, efficient
integration with third parties and
access to new technologies
79% of executives
mention
of executives state
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 7
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THE POWER BEHIND EXPERIENTIAL BANKING 4.X: EMERGING DATA
ECOSYSTEMS
Firms that engage in data
ecosystems will be future
frontrunners by offering
customers contextual and
lifestyle banking
experiences. Banks are
awash with data but will
leverage its value only by
assimilating it within the
value chain. Data
ecosystems offer firms
(banking and non-FS) an
unprecedented opportunity
to collaboratively share and
manage information to
create significantly greater
value than they could
develop unilaterally.
15.1%
13.9% 13.7%
11.8% 11.4%
10.8%
14.9%
13.5% 13.6%
11.8% 11.9%
11.3%
Improved customer
satisfaction
(e.g. increase in
NPS)
Improved productivity Faster speed to
market
Reduced risks Faster innovation Cost reduction
Benefits realized by engaging in data ecosystem in the last 2-3 years
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 8
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FRONTRUNNERS WILL BUILD DIGITAL-ONLY SUBSIDIARIES TO REMAIN
RELEVANT AND RESILIENT IN THE FINTECH ERA
To deliver fast, economical, and experiential FinTech-inspired digital journeys, traditional banks are launching digital-only
subsidiaries. With digital-only subsidiaries at their side, incumbents can consolidate their market position and fortify their value
streams against emerging competition from new-age players.
Makes adopting emerging
technologies easier, faster
Personalized services through
better use of data enabled
by modern core
57%
Increased agility to meet
changing customer demands
Ubiquitous banking
(anytime, anywhere)
50% Faster speed to market
for products and innovations 56%
52% Easier to collaborate
with ecosystem players 55%
63%
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 9
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CYBERSECURITY IS BECOMING A COMPETITIVE DIFFERENTIATOR FOR
BANKS
Improves
security
Enhances
CX
Ensures
compliance
Drives
efficiency
Promotes
agility
Stay on top of
the evolving
regulatory
landscape
Intelligent and automated
customer authentication with
reduced time and effort.
Bridge the gap by integrating
legacy and disparate IT systems
with new digital capabilities.
The right people have right
access to the right information
Fortify customer trust
with improved UX
Top Trends in Retail Banking for 2022 by Capgemini
Intelligent Identity and Access
Management (IAM) solutions
becoming the foundation for
experiential digital banking services.
It improves and enhances CX by
providing seamless, omnichannel
access for all applications with one
secure identity, rather than requiring
separate credentials for each
service. Moreover, modern IAM
solutions with intelligent capabilities
(AI and ML) also speed up customer
onboarding by automating critical
customer journey processes

Top Retail Banking Trends 2022 10
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BANKS TO STEP UP THEIR TRANSITION TO BECOME PLANET-CENTRIC
ENTERPRISES
Banks are progressing from
greenwashing to comprehensive
sustainable business strategies with
equal focus on the environment as well
as social responsibility. Banks that
prioritize transition towards green and
sustainable business operations are more
resilient to market disruption and could
recover faster from a crisis.
ESTABLISH
RESPONSIBLE
OPERATIONS
AND
PROCESSES
ENGAGE
STAKEHOLDERS
DEFINE/ASSERT
THE STRATEGY
AND
TRANSFORMATION
PLAN
CREATE NEW
PRODUCTS
AND SERVICES
ADOPT
GREEN IT
PRACTICES
MEASURE
SUSTAINABILITY
PROGRESS
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 11
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EXPECT 5G PILOT PROJECTS AND EXPLORATION TO PICK UP SPEED
5G will power the new age of hyper-
connectivity featuring real-time
banking and instant customer
gratification. By complementing 5G
technology with edge computing,
data processing could be brought
closer to data sources, i.e., devices
and customers.
Fraud
detection
and security 5G
Smart
branches
AR/VR in products
and services
Pop-up mobile
branches
Enabling IoT, and
edge computing
Top Trends in Retail Banking for 2022 by Capgemini

Top Retail Banking Trends 2022 12
Company Confidential © Capgemini 2021. All rights reserved |
DEFI – NING THE NEXT BANKING EVOLUTION
Traditional banks must overcome their state of
inertia to collaborate and develop Decentralized
Finance (DeFi) propositions anchored to a robust
compliance framework. DeFi holds the promise and
the potential to overhaul conventional
inefficiencies. The adoption by incumbents could
unlock new value frontiers over the long term.
Greater
accessibility
Puts idle
capital
to work
Capital
efficient
financial
system
Composable
and
interoperable
Increased
transparency
Top Trends in Retail Banking for 2022 by Capgemini

This presentation contains information that may be privileged or confidential
and is the property of the Capgemini Group.
Copyright © 2021 Capgemini. All rights reserved.
Capgemini is a global leader in partnering with companies to transform and manage their
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About Capgemini Elias Ghanem
Global Head of Financial Services
Market IntelligenceCapgemini
elias.ghanem@capgemini.com
Chirag Thakral
Deputy Head of Financial Services
Market Intelligence teamCapgemini
chirag.thakral@capgemini.com
Vivek Singh
Banking and Capital Markets Leader,
Global FS Market Intelligence
vivek-kumar.singh@capgemini.com
Vaibhav Pandey
Manager, Retail Banking and FinTech
Market Intelligence, Financial Services
vaibhav.a.pandey@capgemini.com
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