The future of banking
- 1. Title with Picture Layout Subtitle The Future of Banking Digital Transformation Proposal
- 2. • FINTECH startup companies in April 2015 = 800+ registered • FINTECH startup companies in December 2015 = 2000+ registered • Since 2014 these Financial – technology companies have taken over more than 43% of the payments’ revenue globally. • FINTECH recently cut more than 63% of the retail segment’s products’ revenue globally. • FINTECH focusing on the most profitable products • Quickly growing their market share in other segments. FINTECH IS HERE TO “EAT OUR LUNCH” – AND THEY ARE HERE TO STAY!!!
- 3. TIME IS UP – THE GROWTH IS DRAMATIC • Although the global penetration of Fintech startup investments looks concentrated to the US, we must forget about geographical matters. The internet has no borders. The big and powerful disruptors are already here.
- 4. FINTECH STRENGTH VS. BANKING WEAKNESSES – SELF ASSESSMENT
- 5. CUSTOMER & PARTNER ECOSYSTEMS ARE MERGING CHANGE TO CREATE A WIN-WIN ENVIRONMENT!!! • FINTECH companies are usually flying below the regulatory radar = ease of burocracy • Cloud based interconnected data, IoT and enabled technology serves Fintech • Platformification is a solution for banks not to loose more business • Leverage knowledge and features • Use it or loose it • Customize and personalize and empower ultimate reach
- 6. Challenges of Transformation • Physical Instruments • Over-regulated processes and legacy systems • Traditional organization and business models • Capability of Change Management • Dedicated, empowered and enabled talent • Time • New type of competition
- 7. Barbara Biro
- 8. SETUP THE NEW COMPETITIVE WAYS OF BANKING 0 1 2 3 4 5 6 STAGES OF BUILDING DIGITAL BANKING BUSINESS Even just 1 stage ahead, your business will generate more return GO PAPERLESS PROVIDE OPTICHANNEL EXPERIENCE BUILD DIGITAL BRAND TO DRIVE DIGITAL TRAFFIC BE PLATFORM BE PARTNER - Optimize processes - Improve Alternate Channels - Restructure Staff - Use Predictive Anaytics - Design business for channel users - Plan leveraged customer journey - Bank in the Bank - End to End Digital - Separate Team - New portfolio - New Market Strategy - Cost effective aggregation of successful Fintech offers - Own or Partner Fintech
- 9. Transformation practice of traditional banks Customer Experience vs. Innovation flow Alternate Distribution Channels •Online Channels •Mobile Channel •E-Commerce •ATM Channel Physical Distribution Network •Branches & Digital Touchpoints •Transaction automation of Physical Instruments Direct Banking Channel & Call Center •Depending on interpersonal communication or automated message Technology •Innovations rolled out through each channel and towards each department •Communication only exists on the highest levels staff Barbara Biro
- 10. Are you ready for TRANSFORMATION? Transformation of 1 thing = chain reaction made and confirmed by the Top Management • Ready to change the • Understood that the risk is even for the next decade • Determined and stations of the journey, defined Customer Experience • Allocated and rationalized • Evaluated and prepared , communicated the objectives, confirmed the resources and the vendor need • You have provided internal omni-channel to avoid silo obstacles Barbara Biro
- 12. To Do List of Digital Transformation to implement all over the Channels – Focus on Migration to be able to focus on business and consultancy. – Enhance staff awareness first of all. Revisit charges, implement negative or positive incentivization. – Focus on simplicity, functionality and automation, increase social and online reach and automated touchpoint availability, Kiosks/ATMs – Built in paperless options and more lead capture, interconnected with Mobile Platform. Fully functional and automated, seamless banking. Minimizing manual entry by data auto-population. Face to Face interaction concentrated on consultancy and business. Align banking with customers’ regular activity within the community. • Launch end to end and personalized transparent, simple and fare fee structure – Multifunctional employees, empowered with paperless automation. – predictive analytics, cross-department and cross-system communication and dataflow, integrate all channels with core system for customer recognition through cloud based communication, administration input reduction and paperless flow. • Integrate Call Center in each Distribution Channel – – Redesign security to simplify processes, focus on mobile and ATM. in each Channel and customer touchpoint. • Provide to be able to used by anybody to see their Barbara Biro
- 13. Opti-Channel Distribution Process and Innovation Flow Technology Standardized & Branded Customer Experience Marketing Barbara Biro Increased usage of Social Media, and Product/Cross Sales Personalization Predictive Analytics, Partner Platform integration, Enabling cloud communication, Customer portfolio aggregation
- 14. OMNI - Channel • Disable silo operations • Interconnect and leverage distribution channels • Enable lead capture and generation • Cross department knowledge and ‘R’KYC management • Optimize processes, front end and back end • Optimize Human Resources • Optimize collaboration and workflow • Integrate Video Chat on internal and external platforms • Standardize and brand each UI based on the one corporate message • Simplify user access and content management OPTI – Channel + Predictive Big Data Analytics, to know the next step of the customers + Personalize the offers and the products based on predictive data Barbara Biro Introduction of Opti – Channel Experience Know what I WILL want and need
- 15. Filter innovations by added value What we would like to do What is available on the market What is doable by technology Barbara Biro
- 16. Rise or Shine – The Copy Cat effect Barbara Biro
- 17. Old-School Customer Journey Driving to the branch. Waiting for submission Submitting request & service Getting token from the CRO. Filling out paper Forms Barbara Biro
- 18. Customer Journey Transformation Mobile Service Request Confirmation of submission and offer of branch appointment if required Service: electronic approval or Branch Customer Service Filling out electronic forms Auto- population of EID info to minimize manual entry Electronic Submissio n Barbara Biro
- 19. Automated Branch Unit Model • The enlarged Automated area and the Customer Service area 1:1 • ATM Lobby equipped with self service cheque and card managing kiosk, and Virtual Banking facility. • No Teller area, the Super Service Desks empowered with mini cheque scanner for withdrawals, TCR, modern ATM and Online Banking Customer UI for service requests and product applications. Card reader built in for KYC data capture and form auto-population. GO PAPERLESS. • Customer Service Area is designed to provide consultancy and electronic banking assistance. Instant printed or emailed personalized Product Info and Calculations. No pre-printed material. Lead capture integrated. • Digital Content designed for engagement and cross-selling functionality. • Each form processed online, no maker checker needed. Office space can be offered for Business Banking Customers. Barbara Biro
- 20. Consolidate Roles of Front End Employees - Empower Super Service Desks with Automation Focus on Migration/Adoption TCR Mini Bulk Cheque, ID & Card Scanners Online Banking UI Barbara Biro Remove/Restructure physical transaction and process related employees Need of resources, able to work on Adoption, Digital Product, and Experience independently from traditional model
- 21. SimplifyProcessesbyNewTechnologyforAuthentication andVerification Wearables – Simplified Access and KYC ID Cards/Driving License Biometrics • Instant customer recognition • KYC • Basic records auto- population in forms Barbara Biro
- 22. A purpose-built machine that can process business transactions in personalized and integrated manner thru integration with Video Contact Center and Business Support Systems and Applications Document Scanner Card Reader Barcode Scanner Document Deposit Encrypted PIN Pad Contactless Card Scanner 21” 16:9 Remote Expert Video Screen Speakers ID Card Scanner/Reader Phone Handset 19” Application Touch Screen Laser Printer Thermal Receipt Printer Fingerprint Scanner Three Cameras (Still, Video, and Surveillance) Digital Pen Automate for broader and remote expansion Virtual resources for Physical Instruments and Customer Service Barbara Biro
- 23. Fully Automated Branch – Pop ups Cheque Printer Card Printer Cheque Deposit ATM Barbara Biro
- 24. Business Alignments 1. Blend banking in daily routine 2. Do not limit your services and expect customers to deal with it without solution – focus on functional automation 3. Implement multifunctional employees 4. Go Paperless even on the back end 5. Optimize manual entry 6. Embed engagement and minimize cross selling Barbara Biro
- 25. Transformation Project Phases 0 1 2 3 4 5 6 STAGES OF BUILDING DIGITAL BANKING BUSINESS GO PAPERLESS PROVIDE OPTICHANNEL EXPERIENCE BUILD DIGITAL BRAND TO DRIVE DIGITAL TRAFFIC BE PLATFORM BE PARTNER - Analyze Processes, Alternate Channels and Business Model - Identify necessary functionality, UI and CX Development - Introduce Optimal Technology Solution - Introduce required Knowledge Management - Introduce Predictive Analytic Solutions - Plan Customer Journey 4-5 months 5-6 months 10-12 months8-9 months - Introduce New Business Model - Introduce Brand - Introduce Digital Portfolio - Propose the dedicated team - Identify Target via Proposed Market Strategy • Introduction of Potential Fintech Partners • Introduction of Aggregated Platform and Market Strategy
- 26. THANK YOU!