Banking Trends for 2017

Banking Trends 2017

FinTech firms are Being
Considered as Partners
Rather than Competitors

Banks are using Biometric Banks are Using Open

Authentication Tools to Combat APIs to Monetize their
Identity Thefts and Fraud Digital Assets and Data

Banks are looking to Increase There is a New Shift in the

their Efficiency and Banking Business Model
Productivity by Investing in where Banks will be acting
Robotic Process Automation as a Platform to many
FinTech Firms

Banks are focusing on Banks are Investing in

Cognitive Banking to Cyber Security Systems
provide them an Edge over with the Increase in Cyber
Competitors Threats

Banks are Working Together to Banks are Increasingly

Identify and Understand the Adapting Public Cloud
Use Cases of Distributed Services as it Provides
Ledger Technology Flexibility and Agility

Banks are Testing Augmented

Reality to Provide Enhanced
Source: Capgemini Financial Services Analysis, 2016 Customer Experience

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 2

 Banks are collaborating with the FinTechs to
drive innovation and meet evolving customer
expectations

Partnering
Collaborating

Incubators/
Accelerators

Innovation
Labs Banking executives
agree that FinTechs
59.3% are setting the bar
higher
Investing in
FinTechs
Banking executives
say that FinTechs
Acquiring 77.8% provide opportunity
FinTechs to partnership

Source: Capgemini Financial Services Analysis, 2016; World FinTech Report, Capgemini 2017

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 3

 Banks using Open APIs with an aim to
monetize and improve customer experience

Monetize

Cost Reduction

Innovation

Agility

Source: Capgemini Financial Services Analysis, 2016

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 4

 Banks as a platform will be a complete shift in
the banking business model

One stop shop for

customers

Ability to innovate

Minimal infrastructure

Technology expertise

Increase agility and

efficiency

Source: Capgemini Financial Services Analysis, 2016

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 5

 Increasing data breaches compelling banks to
strengthen their security systems

$400 Estimated cost to

business due to cyber
$202 Is the expected value of
market for cyber
bn attacks in 2015 bn security by 2020

Respondents think
cyber risk is the top $2.1 Is the estimated cost of
25% threat in financial
breaches in 2019
services industry bn globally

Source: Capgemini Financial Services Analysis, 2016; SYSTEMIC RISK BAROMETER, DTCC, 2016; Cyber Crime Costs Projected To Reach $2 Trillion by 2019, Forbes, Jan 2016,
http://www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#6d85c2f3bb0c

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 6

 Banks are increasingly moving towards public
cloud-based banking infrastructure

Scalability
CAGR growth in IT
spending for public
19.4% cloud service from
2015 –2019E
Flexibility

Agility $6.8 IT spending for

public cloud services
bn for banking in 2015

Source: Capgemini Financial Services Analysis, 2016; Worldwide Public Cloud Services Spending Forecast, IDC, Jan 2016

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 7

 More and more use cases emerge for the usage
of Augmented Reality applications

Enhancing Shopping Virtual Branches and

Experience Advisors

Education and
Location Based Services
Recruitment

Enhancing Banking
Cross-sale Opportunities
Experience

Source: Capgemini Financial Services Analysis, 2016; https://thefinancialbrand.com/39309/augmented-reality-place-bank-branches/

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 8

 Banks are exploring the feasibility of
distributed ledger technologies

Collaborative Projects
Eliminating
Intermediaries

Hyperledger Project
Enhanced
Security

Ripple (Payments)
Transparency

Reliable and
R3CEV Error Free

Source: Capgemini Financial Services Analysis, 2016; https://www.ft.com/content/eb1f8256-7b4b-11e5-a1fe-567b37f80b64

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 9

 Cognitive systems are finding application in
almost all banking areas

Customer Facing AI -
Front AI and Cognitive Enabled
Chat bots, Cognitive
Analytics Support
Office Agents

Cognitive Advisors,
Back AI Enabled Expert Complia
Robotic Process
Office Systems -nce
Automation

Source: Capgemini Financial Services Analysis, 2016; http://www.ipsoft.com/wp-content/themes/ipsoft_v2/images/v2/pdf/IPsoft_Tomorrow_AI_enabled_banking.pdf;

https://www.evry.com/globalassets/insight/bank2020/the-new-wave-of-artificial-intelligence---labs-whitepaper.pdf

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 10

 Banks are looking increase their efficiency by
investing in Robotic Process Automation

Productivity Increased
Improvement Efficiency

Shorter Lower
Processing Time Operational Costs

Source: Capgemini Financial Services Analysis, 2016; http://ayehu.com/role-robotic-process-automation-banking-industry/

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 11

 Banks are using biometric authentication to
combat identity thefts and fraud

Firms will change their

Amount identity
fingerprint biometric
thieves have stolen
$112 bn from US consumers in 80% method to combination
with behavioral by end
past 6 years
of 2019

Biological Traits

Combat Identity
Theft and Fraud

Behavioral Traits

Source: Capgemini Financial Services Analysis, 2016; Technology Insight for Biometric Authentication, Gartner, 2016; https://letstalkpayments.com/7-trends-in-biometric-technology-as-it-applies-to-fintech/

Presentation Title | Date | Financial Services

Copyright © Capgemini 2016. All Rights Reserved 12

About Capgemini
Now with 180,000 people in over 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2014 global revenues
of EUR 10.573 billion. Together with its clients, Capgemini
creates and delivers business, technology and digital solutions
that fit their needs, enabling them to achieve innovation and
competitiveness. A deeply multicultural organization, Capgemini
has developed its own way of working, the Collaborative
Business Experience™, and draws on Rightshore®, its worldwide
delivery model.

Rightshore® is a trademark belonging to Capgemini

www.capgemini.com

The information contained in this presentation is proprietary.

© 2015 Capgemini. All rights reserved.