Page 30 - February 2018 Disruption Report Flip Book

DIGITAL BANK 2.0 FJEABNRUUAARRYY 22001188
Digital Business
Structural changes such as open-banking regulations will force FIs to compete for
customers with new entrants and nontraditional banks. Cost pressure will be a major driver
for change within the middle and back office, and agility and responsiveness will enable the
ENVISIONING THE BANK OF THE FUTURE
adoption of service-based architectures.
As illustrated in Figure 3, the bank of the future will be buffeted by significant disruption across the
banking value chain. These forces of change will dramatically impact the financial ecosystem. The emer-
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transactional services, while AI-driven analytics will drive the emergence of highly targeted and person-
to derive deeper insights. There will also be a significant shift in customer expectations,
alized products and experiences.
influenced by experiences in other consumer-facing, Internet-empowered businesses, and
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entrants and nontraditional banks. Cost pressure will be a major driver for change within the middle and
future will essentially operate in the following ways:
back office, and agility and responsiveness will enable the adoption of service-based architectures.
We expect big data to converge with thick data (i.e., behavioral inputs) to enable banks to derive deeper
Orchestrator of Personalized Customer Journeys
insights. There will also be a significant shift in customer expectations, influenced by experiences in
other consumer-facing, Internet-empowered businesses, and as ever-increasing numbers of millennials
join the bankable population.
As customer expectations of the banking relationship evolve, and physical world data is merged with digital data, banks will need to extend customer relationships into areas
The bank of the future will essentially operate in the following ways:
outside the traditional banking domain, such as health, security and purchasing decisions.
Orchestrator of Personalized Customer Journeys
They will also be able to anticipate customer needs, whether it is medical insurance or
As customer expectations of the banking relationship evolve, and physical world data is merged with
inventory credit, in order to meet or exceed customer relationship expectations.
digital data, banks will need to extend customer relationships into areas outside the traditional banking domain, such as health, security and purchasing decisions. They will also be able to anticipate customer
CONSTRUCTS OF THE BANK OF THE FUTURE
Constructs of the Bank of the Future
Customer Journey Touchpoints across Banking
A
Orchestrate customer journeys across Digital 2.0 channels and manage the customer experience contextually.
C
Leverage platforms, RPA, AI and IOT to drive holistic front-to-back digitization, seamless integration, information flow and error control. Adopt a use case-based approach to digitization.
E
Power the bank with the right selection of service and deployment model that lowers TCO while providing flexibility and responsiveness.
IOT Interfaces & Smart Devices
Branch of the Future
Robots & Virtual Interactions
Partner Channels (e.g., fintech)
Social Networks
B
Aggregate capabilities from across the banking ecosystem (partners, individual developers, fintechs) and technology providers to deliver banking products and services.
D
Turn data into intelligence by marrying transactional big data with thick data to power micro-segmented customer and market solutions.
Retail Banking Accounts
Corporate Banking
Lending (consumer and commercial)
Cards, Payments and Remittances
Smart Aggregation of Capabilities
Fintechs Developer Financial Institutions/ FANG* Nontraditional Communitiies Banks Banks
Banking Platforms and Front-to-Back Digitization
Platforms & Robotics
Front Office
Middle Office
Back Office
Data & Analytics
Thick
Data Behavioral & AI Predictive Analytics
Real-time Decisions
Big Fraud Data
Prevention
As-a-Service Consumption Models Deployment Models
SaaS IaaS PaaS
Public Private Hybrid
*FANG stands for Facebook, Amazon, Netflix, Google.
Figure 3
Source: How Digital 2.0 Is Driving Banking’s Next Wave of Change, Cognizant
How Digital 2.0 Is Driving Banking’s Next Wave of Ch
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