Disruption in Digital Banking

By @joukpleiter and @jelmerdejong

Thursday, December 18th, 1pm EST

Webinar : Disruption in Digital Banking

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Customer Behavior is Changing

Customer Behavior is Changing

Customer Behavior : Convenience

Customer Behavior is Changing

Disruption : Uber

Customer Behavior is Changing

Small Start-ups Getting Big

Customer Behavior is Changing

Disruption : Lending Club

Customer Behavior is Changing

Small Start-ups Getting Big

Customer Behavior is Changing

Source: Thomas J. Loverro 9

Challenge the Challenger

Challenge the Challenger.

Become a Disruptor Yourself.
Accelerate Digital Transformation.

Digital Transformation

Digital Transformation
Key Focus Points for 2015
1. Start with the Customer Experience
2. Pursue an Omni-Channel Delivery Model
3. Regain Control of your Digital Strategy
4. Define your Inspiring Purpose

1) Start with the Customer Experience

1) Start with the Customer Experience

Customer Behavior : Shift to Digital

1-2 Times per Year
5-10 Times per Year

100%
0%

Branch
Phone

90%
10%

ATM
Tablet

80%
20%

Mobile

70%
30%

3-5 Times per Month

7-10 Times per Month

20-30 Times per Month

60%
40%
50%
50%
40%
60%
30%
70%
20%
80%
10%
90%
0%
100%

Times

13

1) Start with the Customer Experience

Customer Behavior Shift : Instant & Seamless

The Journey Start Here
Any Time Any Place

Technology
Systems
Processes
Mind

Devices

Applications

Companies

14

1) Start with the Customer Experience

But Requires Hard Work at Infra Level

The hard work
happens here

Technology
Systems
Processes
Mind

Devices

Applications

Companies

15

1) Start with the Customer Experience

Approach : Design for Moments of Truth

Identify

the mobile
moments
and context

Analyze

Start small
with a platform
to extend

results to monitor
performance and
optimize outcomes

Design

the mobile
engagement

Engineer

your platforms,
processes, and
people for mobile
16

1) Start with the Customer Experience

New Business Technology Strategy

Organizational Focus
UX

Customer Focus
UX

Design starts
from outside in.

Data
Software

Hardware /
Infrastructure

Data

Software
Hardware /
Infrastructure

Design starts
from inside out.

Network

Network

17

2) Pursue an Omni-Channel Delivery Model

2) Pursue an Omni-Channel Delivery Model

Omni-Channel Customer Journey

19

2) Pursue an Omni-Channel Delivery Model

Traditional Bank = Legacy Approach

UX & Marketing

Banking APIs

Banking Infrastructure

Rails

20

2) Pursue an Omni-Channel Delivery Model

Disruptors = Flexible CX Layer + APIs

UX & Marketing

Orchestration
API

API

API

API

API

API

API

Banking APIs

Orchestration

API

API

API

API

API

Banking Infrastructure

Rails

21

2) Pursue an Omni-Channel Delivery Model

Widgets Pre-Build UX Components

22

2) Pursue an Omni-Channel Delivery Model

Omni-Channel Hand-over & Orchestration

Orchestration / Context /
Personalization Services

CRM

Products

Analytics

23

2) Pursue an Omni-Channel Delivery Model

Critical Interactions at Moments of Truth

That means
building APIs for
your core
processes.
An airline
Example,

24

3) Regain Control of your Digital Strategy

3) Regain Control of your Digital Strategy

Challenge : How to Empower all Stakeholders?

Customers

Business

Configuration without IT

Right info, right time, right place

Online Channel Optimization

Seamless Customer Journey

Cross & Up-sell Campaigns

Personal & Relevant

IT
Integration
Security
Agility / Business IT Alignment
Innovation on a solid foundation
26

3) Regain Control of your Digital Strategy

The soloed digital banking team

Learnings from
27

3) Regain Control of your Digital Strategy

The soloed digital banking team -- reality

Learnings from
28

3) Regain Control of your Digital Strategy

How mBank did became a disrupter

Team of 200

30m euro budget

Just 14 months

1.6 million lines of code

50k test conditions

200 innovative features

1700 screens

4 million customers

3 countries

All products & services

Corporation not a startup

Break all silos

Move to dedicated location

Freedom & Accountability

Non-standard motivation

Core value: collaboration

Learnings from
29

3) Regain Control of your Digital Strategy

Disrupt : Apply Lean Start-up Principles

30

4) Define your Inspiring Purpose

4) Define your Inspiring Purpose

What is your Inspiring Purpose?

32

4) Define your Inspiring Purpose

What is your Inspiring Purpose?

33

4) Define your Inspiring Purpose

What is your Inspiring Purpose?

34

4) Define your Inspiring Purpose

UMPQUA Bank

35

4) Define your Inspiring Purpose

UMPQUA Bank

36

We are Backbase

We are Backbase

Visual Editor
(Digital Managers)

Superior UX
(Your Customers)

Business
In control

Customer
In control

Customer Experience Platform

API

API

API

API

Existing Systems

API

IT
In control

We are Backbase

39

Customer Experience Solutions. Delivered.

We are Backbase

Backbase is Market Leader

Decision Matrix:
Next Generation
Digital Banking Platforms
Jaroslaw Knapik (December 2013)

We believe Market Leaders are

worthy of a place on most technology
selection shortlists. The vendor has
established a commanding market
position with a product that is widely
accepted as best-of-breed."

Disruption in Digital Banking: Q & A