2016 Accenture

Technology Vision
for Banking
People First: The Primacy of People
in the Digital Age

2016 Accenture Technology Vision for Banking

The Accenture Technology Vision 2016 identifies five technology trends fueled by the people first principle
and that are essential to banking success in the digital economy.

Platform
Economy

Digital
Trust

Copyright 2016 Accenture. All rights reserved.

Liquid
Workforce

Intelligent
Automation

Predictable
Disruption

The Platform
Economy
Its time for banks to join
in and welcome others

New technology
platforms have the
power to drive banking
innovation
83% believe platforms will be the glue that bring
organizations together in the digital economy

46% believe adopting a platform-based business

model and engaging in ecosystems of digital partners
to create value are very critical to their business
success
59% are already investing in a competitive digital
technology program as part of their business strategy.
52% percent expect to be working with new digital
partners in their industry in the next two years; 42%
expect to be working with new digital partners outside
the industry.

Copyright 2016 Accenture. All rights reserved.

The value for banks is being fueled by three key

natural traits

Network Effects
Two user groups generate
network value for each other,
resulting in mutual benefits
that drive demand-side
economies of scale.

Copyright 2016 Accenture. All rights reserved.

Distribution Power Law

Enables scale by allowing nonfinancial services providers in the
network to draw on bank customer
data in ethical and secure ways to
generate new revenue in the long
tail of the distribution curve
avoiding diminishing returns
associated with traditional value
chain models.

Network Synergy
Cross-industry, mutually-benefiting
synergies around growth and
competitiveness arising as the
right participants come together,
link their products/services and
create a marketplace that satisfies
a specific customer need that
would be cost-prohibitive to do
alone.
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How should banks

participate?
Banks should consider operating across a
combination of five key roles:

Relationship player. The bank owns the

relationship with customers, leveraging partners to
provide solutions.

Platform provider. The bank provides a platform

for sellers, buyers and content providers to interact.

Core financial services utility/manufacturer. The

traditional role of banks in providing financial
services.

Innovation playmaker. The bank participates in

digital banking ecosystems, using a full spectrum of
approaches to provide capital and to enter new
businesses.

Digital ID enabler. The bank operates a secure

platform, offering consumers access to digital
commerce.

Copyright 2016 Accenture. All rights reserved.

Banks digital
trust paradox is
unsustainable
Digital Trust

84% of bankers agree trust is the cornerstone

of the digital economy

Erase the trust

paradox in banking

86% of consumers in North America trust their

bank over all other institutions to securely
manage their personal data
Customers rank financial services companies
among the least trusted by customers to
behave in ethical ways.

12015
22015

North America Consumer Digital Banking Survey

Edelman Trust Barometer Report

Copyright 2016 Accenture. All rights reserved.

(Re)building bank
customer confidence
relies on two major
components:
Ethics and Security
A culture of ethics in banking requires
decisive actions in key areas:
Communicate clearly to consumers on
customer data being collected, for what purpose,
who can access it legally and how it will be used.

Use data primarily to offer customers

reciprocal benefits that are directly relevant to
the data and service being provided.
Be responsible to accurately collect, manage
and access customer information, with
accountability for the use of data.
Copyright 2016 Accenture. All rights reserved.

Banks can combine ethics with stronger security

strategies toward higher digital trust:

Rethink identity and

access management,
using more innovative
techniques.

Adopt a zero-tolerance
approach with a cyberrisk appetite in moving
toward open and
ecosystem banking.

Copyright 2016 Accenture. All rights reserved.

Integrate security
solutionssuch as
security-aware
application design,
integrated database
security and others
into new products.

Incorporate nextgeneration security

mechanisms in
managing data
security risks.

Identify indicators of
risky insider activity to
detect early signs of
possible fraud or
criminal activity.

Banks realize a
liquid workforce is a
competitive advantage
Liquid
Workforce
Bank on fluid teams
focused on results

74% of bank executives believe that a more fluid

workforce would improve innovation.
55% of jobs in banks that have a digital component
today (compared to 50% across all industries);
bank executives expect this number to increase to
61% in three years.
75% of banking executives believe in three years
the proportion of workers will shift towards more
multi-skilled, flexible employees.

Copyright 2016 Accenture. All rights reserved.

To start and progress their

digital transformation,
banks must develop new,
more fluid, workforce
strategies

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Skills
Build learning as a
core competency in the
organization to actively
generate skills that are
in demand.

Projects

Organization

Use technology to
coalesce and disband
internal and external talent
at your disposal for new
innovative projects.

Optimize workforce
responsiveness with
insightful analytics that
provide a real-time view
of organizational
capabilities.

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Forward-thinking banks will go

further to organize their workforces
around business outcomes and
business services (ex, giving
customers a unified view of their
financial picture), relying on:

Service
structured
around an
outcome

Small teams that support the evolution

of the outcome
Hard and soft skillsparticularly,
communications and collaboration
development and diversity embedded
into the team
External skill sources, such as
freelancers, contractors,
crowdsourcing, application developers
and traditional outsourcers, to
supplement the core internal
workforce
Copyright 2015 Accenture All rights reserved.

Banks
committed
investment

Value for
the
customer

Best-fit
delivery
approach with
multi-speed
features

Knowledge
and skills to
deliver and
sustain it

11

Banks have an
opportunity to improve
operations
Intelligent
Automation
The essential new
co-worker in digital
banking

86% of bank executives agree the widespread use of

artificial intelligence (AI) provides for a competitive
advantage beyond cost.
77% expect AI will be a significant change or complete
transformation for banking over the next three years
Banks plan to use cognitive information systems or
increase intelligent automation:
- Knowledge worker tasks (91%)
- Customer interaction/experience (88%)
- IT tasks (90%)
- Embedded AI solutions (80%)
- Machine learning (79%)

Banks can drive more value by pairing

Intelligent Automation with people
Better
outcomes

People + machine possibilities

Faster
decisions

Machines analyze banks massive data

simultaneously in seconds to be used by bank
advisors to offer more personalized service.

Greater
efficiency

Automate, speed up and off-load more routine

tasks and free executives to focus on higher-value
functions.

Highly-tailored
customer
service

Machines quickly access and analyze Big Data to

verify customer identity, understand problems, find
solutions, recommend services and hand off to a
human specialist.

New ways of
working

Machines analyze job applicant traits to predict

which ones will leave and recommend retention
strategiesinsights that HR managers can use to
personalize employee programs.

Capture new
revenue

Serve low-to-medium net worth customers with a

personal touch which banks could not do profitably
in the past.

Copyright 2016 Accenture. All rights reserved.

13

Four ways banks can create more productive

relationships between people and machines
Rally the troops. Leaders must be advocates for doing things differently as humans and machines work
together more collaboratively.
Sharpen the human edge. Revise the organizations talent development programs to reflect the more
strategic work that people will perform.

Close the trust gap. Leaders can grow middle managers trust of intelligent systems by choosing
systems with proven track records.
Chart a course of discovery. Create a union of managers and machines that multiplies the value that
each are able to deliver alone.

Copyright 2016 Accenture. All rights reserved.

14

Predictable
Disruption
Banks need to be
proactive to spot the
next wave

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2016 Accenture.
Accenture All
Copyright
Allrights
rightsreserved.
reserved.

Fast-emerging, crossindustry digital

ecosystems likely to
usher new disruption
for banks

85% of bankers agree that bank industry boundaries

are being erased and new paradigms are emerging
with every industry being significantly impacted

45% of bankers say financial services companies are

going through significant digital business
transformation or digitally-enabled change

27% of bankers believe the industrial Internet/Intranet

of Things will cause a complete transformation of the
industry
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The opportunity? Predicting digital disruption

in banking
Large, traditional banks with strong consumer
and corporate customer relationships across
industries are particularly well placed to watch for
and recognize three indicators of ecosystemdriven disruption:
Rapid growth and patterns of digital
ecosystems inside and outside of banking.

Shiftsgradual or suddenin consumer

income and spending that may indicate needs
and point to new bank products or services.
Use of new technologies, such as the Internet of
Things, to reshape industry processes, products
and services.
Copyright 2016 Accenture. All rights reserved.

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With predictive capabilities, banks can develop

strategies to forge new roles and new paths
Envision your role, and new partnering relationships, in
the next phase of economic disruption.

Pilot an initial foray into a digital ecosystem, targeting

one business process, product, or service best aligns with
your prioritization of potential disruptions.
Create new metrics to measure success in digital
ecosystems by extracting insights from your pilot to
uncover potential indicators.
Identify new skills demanded to support the expansion of
your digital ecosystem strategy, and develop a plan to
acquire these high-priority skills.

Continue to increase information security, boosting

investment in machine-to-machine security and
authorization technologies to support ecosystem-driven
innovation.
Copyright 2016 Accenture. All rights reserved.

to learn more, visit

www.accenture.com/bankingtechvision

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