Growing momentum for Disruption in FinTech: Looking back and looking forward. Recording of the Backbase webinar of December 18th, 2014. In our 2014 closing webinar we will look back at the disruptive highlights of this year and we start looking forward to 2015. From BBVA acquiring Simple, to more and more neo-banks popping up, fintech startups going IPO and omni-channel moving from marketing buzz to the real thing. In this 60 minute webinar, Backbase's Jouk Pleiter and Jelmer de Jong discuss the main trends and best practices for banks and credit unions to keep on disrupting in the digital banking space.

1. Disruption in Digital Banking
By @joukpleiter and @jelmerdejong

2. Thursday, December 18th, 1pm EST
§ Thank you for joining!
§ Use the GoToMeeting panel to ask questions
§ Participate on Twitter: #backbase
§ Session will be recorded and slides will be shared
via email and Slideshare within 48 hours
Webinar : Disruption in Digital Banking
2

3. Customer Behavior is Changing

4. Customer Behavior is Changing
Customer Behavior : Convenience
4

5. Disruption : Uber
Customer Behavior is Changing
5

6. Small Start-ups Getting Big…
Customer Behavior is Changing
6

7. Disruption : Lending Club
Customer Behavior is Changing
7

8. Small Start-ups Getting Big
Customer Behavior is Changing
8

9. 9
Customer Behavior is Changing
Source: Thomas J. Loverro

10. Challenge the Challenger.
Become a Disruptor Yourself.
Accelerate Digital Transformation.
Challenge the Challenger

11. 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
Digital Transformation

12. 1) Start with the Customer Experience

13. 1) Start with the Customer Experience
Customer Behavior : Shift to Digital
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Times
Branch
Phone
ATM
Tablet
Mobile
0%
10%
100%
20%
30%
40%
50%
60%
70%
80%
90%
7-10 Times per Month
3-5 Times per Month
5-10 Times per Year
1-2 Times per Year
20-30 Times per Month
13

14. 1) Start with the Customer Experience
Customer Behavior Shift : Instant & Seamless
14
The Journey Start Here…
Any Time – Any Place
Technology
Systems
Processes
Mind Devices Applications Companies

15. 1) Start with the Customer Experience
But Requires Hard Work at Infra Level
15
The hard work
happens here
Technology
Systems
Processes
Mind Devices Applications Companies

16. 1) Start with the Customer Experience
Approach : Design for Moments of Truth
16
Identify
the mobile
moments
and context
Design
the mobile
engagement
Engineer
your platforms,
processes, and
people for mobile
Analyze
results to monitor
performance and
optimize outcomes
Start small
with a platform
to extend

17. 1) Start with the Customer Experience
New Business Technology Strategy
17
Design starts
from inside out.
Customer Focus
Design starts
from outside in.
Organizational Focus
UX
Data
Software
Hardware /
Infrastructure
Network
UX
Data
Software
Hardware /
Infrastructure
Network

18. 2) Pursue an Omni-Channel Delivery Model

19. Omni-Channel Customer Journey
2) Pursue an Omni-Channel Delivery Model
19

20. 2) Pursue an Omni-Channel Delivery Model
Traditional Bank = Legacy Approach
20
UX & Marketing
Banking APIs
Banking Infrastructure
Rails

21. 2) Pursue an Omni-Channel Delivery Model
Disruptors = Flexible CX Layer + API’s
21
API API API API API
Orchestration
UX & Marketing
Banking APIs
Banking Infrastructure
Rails
API API API API API
Orchestration
API API

22. Widgets – Pre-Build UX Components
2) Pursue an Omni-Channel Delivery Model
22

23. Omni-Channel Hand-over & Orchestration
Products Analytics
Orchestration / Context /
Personalization Services
CRM …
2) Pursue an Omni-Channel Delivery Model
23

24. 2) Pursue an Omni-Channel Delivery Model
Critical Interactions at Moments of Truth
24
That means
building APIs for
your core
processes.
An airline
Example,

25. 3) Regain Control of your Digital Strategy

26. 26
✓ Right info, right time, right place
✓ Seamless Customer Journey
✓ Personal & Relevant
✓ Configuration without IT
✓ Online Channel Optimization
✓ Cross & Up-sell Campaigns
✓ Integration
✓ Security
✓ Agility / Business – IT Alignment
✓ Innovation on a solid foundation
Customers
IT
Business
Challenge : How to Empower all Stakeholders?
3) Regain Control of your Digital Strategy

27. 3) Regain Control of your Digital Strategy
The soloed digital banking team
27
Learnings from

28. 3) Regain Control of your Digital Strategy
The soloed digital banking team -- reality
28
Learnings from

29. 3) Regain Control of your Digital Strategy
§ 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
How mBank did became a disrupter
29
§ Break all silos
§ Move to dedicated location
§ Freedom & Accountability
§ Non-standard motivation
§ Core value: collaboration
Learnings from

30. 3) Regain Control of your Digital Strategy
Disrupt : Apply Lean Start-up Principles
30

31. 4) Define your Inspiring Purpose

32. 4) Define your Inspiring Purpose
What is your Inspiring Purpose?
32

33. 4) Define your Inspiring Purpose
What is your Inspiring Purpose?
33

34. 4) Define your Inspiring Purpose
What is your Inspiring Purpose?
34

35. 4) Define your Inspiring Purpose
UMPQUA Bank
35

36. 4) Define your Inspiring Purpose
UMPQUA Bank
36

37. We are Backbase

38. We are Backbase
Customer Experience Platform
Existing Systems
Superior UX
(Your Customers)
Visual Editor
(Digital Managers)
Business
In control
Customer
In control
IT
In controlAPI API API API API

39. We are Backbase
39

40. Customer Experience Solutions. Delivered.
We are Backbase
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."
“Backbase is Market Leader”

41. Disruption in Digital Banking: Q & A