The Perfect Storm – Are You Ready?
Innovations in financial technology are transforming the banking ecosystem and creating new business opportunities, partnerships and competitors. The conditions have been building for some time now.
- Accelerating customer expectations
- A boom in FinTech innovation
- A dramatic upswing in the pace of technological evolution
This perfect storm of dynamic conditions means that the financial services’ landscape will never be the same.
Explore the World FinTech Report 2017 to learn more.
Unleash The Power of FinTech Co-Innovation
Purposeful co-innovation—as a community—is a success requisite in today’s environment of rapid-pace innovation. From regulatory and compliance to fraud, from payments to customer experiences, from core technology or core banking, co-innovation is a powerful tool.
Purposeful innovation is based on two core capabilities:
- First, a Money + Magic approach which is a design thinking methodology that shapes the use cases by putting internal and external customers at the center. By doing so, we put to the test all aspects of a business process, and design a sustainable roadmap to innovation
- Second, innovation communities should be more than just a showcase of cool innovation. Instead they must provide a practical, co-innovation-based approach to scan, assess, pilot and sustain new products and services for business growth, technology modernization, and operational effectiveness
Capgemini’s global network of Applied Innovation Exchanges is spread throughout the major innovation hubs of the world. The AIE framework is utilized for the development, management and transformation of innovation. By bringing together a broad community of designers, technologists, sector experts, business and technology partners, academics, research organizations and start-ups, AIE provides the opportunity for you to investigate, contextualize and understand the most relevant innovations for your business. Capgemini has built out a best-in-class FinTech ecosystem that spans almost every business, technology and operational process area.
Unlock The Future of Digital with Open Banking
This is age of the API economy. More and more banks are embracing open banking to tap into the power of a connected world and to create new customer experiences.
We are witnessing significant change in the way banks go to market.
- Launch of new digital banks to leapfrog legacy constraints, develop new services and experiment with new customer experience models
- Getting embedded into partner and customer ecosystems by making services and products available where customers naturally are
- Improving agility and innovation by transforming their technology footprints to meet the rapid pace of business innovation
All of this is made possible through a new way of looking at traditional business models, and also modernizing our technology systems and data analytics capabilities. APIs now play a strategic role in redefining Banks’ revenue models and competitive positioning.
Some of the questions we must answer are:
- How do we use APIs to create new revenue streams, products and markets?
- Could APIs help us to amplify our current revenue streams, close more business and add more value?
- How do we accelerate the pace of innovation to keep up with business demand?
Unleash innovation to create new revenue models with our Money + Magic approach
Reach Out to The Connected Customer
The definition of customer experience capabilities across channels has come a long way in the past few years. Now, it is simply not enough to be accessible across all channels. Instead, it is critical to provide personalized services and advice that helps customers meet their overall financial needs.
The numbers are stark. For customers who opened or closed accounts or services in the past year, the single most common reason was their experience with their financial provider.
- Only 37% of customers believe their bank adequately understands their preferences
- 73% of millennial would be more excited about a financial services product coming from Google, Amazon, Apple, PayPal or Square than one coming from their own bank
- 51% of customers are likely to stay with current bank
- 44% of customers trust their financial services provider
When it comes to positive customer experiences, bankers know they are not competing simply with each other or with start-up FinTechs. The experiences customers enjoy when purchasing consumer goods, or when visiting online retailers and high-tech service providers raises the expectations’ bar. Customers expect a consistent experience across their channels of choice—mobile or online self-service, branch or call center—at all stages, from initial investigation through product selection and related account services. And to deliver this experience, there must be a complete and common customer view and simplified processes across all of a bank’s channels and contact points. Some key examples:
- Customer-Centric Optionality employs analytics to present the best product / service options to a self-service customer
- Cross-channel Application Continuation allows customers to start, stop and resume applications for products and services
- Comprehensive Account Interaction provides anytime, anywhere, any-device access for time-sensitive information and consumer-banking services
Get closer to your customers with SMART Analytics.
Move @Light Speed with Cloud
It’s no secret. Cloud adoption is rising and barriers to adoption are falling. Responding to evolving market demands for the next wave of innovative, flexible and highly customer-centric and responsive banking services means that banks must leverage the cloud for all that it can offer, while still maintaining the highest standards of security and compliance.
Banks must deliver the best connected banking experience a customer can have regardless of digital or traditional channels, or entry point for banking services. And they need to do it at every step of the value chain from first contact to pricing and payments, from front-end interfaces to fully integrated back-office systems.
The cloud offers us capabilities to shorten time to market while also taking advantage of best of breed capabilities that can be integrated seamlessly together. And as the pace of innovation quickens, an approach based on the cloud is the only way to respond rapidly to evolving market needs.
From core banking platforms, to integrated Dev-Ops environments to innovative third party services essential to deliver exceptional customer experiences, banks can build the next generation of banking services, today!
Explore Capgemini’s Connected Banking to learn how you can deliver personalized experience-led banking with a pre-integrated digital ecosystem that does not require a costly infrastructure.
Explore Endless Possibilities with Blockchain
Blockchain distributed-ledger architecture has the potential to enhance security, speed, and operational efficiency for banks in several business areas such as payments, asset management, loyalty, and loans. It can also be used to resolve bottlenecks within regulatory processes such as KYC, fraud and AML.
Various significant use cases such as cross border payments and good movement have already begun to move from experimentation stage to operations stage.
Some salient use cases include:
- Closed Loop Payments & Loyalty Services
- Cross-Border Payments
- Identity Management
- Private Securities
- Syndicated Loans
It is time for banks to start looking at key use cases that are right for them, and begin devising approaches to pilot blockchain-based services so they are ready when such implementations go mainstream.
Reimagine Your Business with Automation
Industry research has shown that Robotic Process Automation (RPA) can drive 25-50% cost savings by automating data intensive, repetitive tasks, and by improving the accuracy and efficiency of process execution.
RPA is a software agent based approach. As a virtual worker, RPA replicates user actions to reduce or eliminate human intervention in mundane, repetitive, and manually intensive processes. By automating these manual processes, financial institutions can improve efficiency and accuracy. In addition, virtual workers can be deployed 24/7 reducing latency and driving higher levels of productivity.
Improve the efficiency and speed of your core business processes with Capgemini’s nine pillar approach to robotic process automation.