1. Banking and Insurance in the Digital Era
Andrei Charniauski
IDC Financial Insights

2. IDC Financial Insights analysts
Andrei Charniauski
Lawrence Freeborn
Jerry Silva
Marc DeCastro
James Wester
Karen Massey
Cyrus Daruwala
Michael Araneta
Thomas Zink
Agus Kurnadi
Michael Yeo
Ho Sui-Jon
Frank Fang
Shalil Gupta
Scott Lundstrom
Group Vice President

3. What is Digital Transformation?
Fundamental changes
Business processes redefined
New business models
Major consequences for business
Adoption of modern standards
Redesign of IT architecture
Innovative technologies
New opportunities
Destruction of norms
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4. Most EU FIs have a Digital Transformation strategy
Source: IDC Digital Transformation Survey, June 2015, 53 Financial Institutions in Europe
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5. Most valuable outcomes of Digital Transformation
Source: IDC Digital Transformation Survey, June 2015, 53 Financial Institutions in Europe
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6. “Digital” means “data”
Enabling digital
Competitive edge
Ultimate cost efficiency
Straight-through-processing
Real-time capabilities
Valuable insights
Customer experience
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7. Adoption rates of Big Data & Analytics by European FIs (%)
Source: IDC European Vertical Markets Survey, 10/2014
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8. Regulation and security concerns inhibit cloud adoption
OPEX
Scale
Time to Market
Source: IDC European Vertical Markets Survey, 10/2014
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9. Choosing the right digital strategy
Partner with Disruptors
Modernise Wisely
Launch New Bank
Replace Entire IT
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10. Two ways of becoming (more) digital
Digital data entry
No paper forms
Entry on mobile devices
Extensive reuse
Powerful back-end
Unified architecture
Digitisation of processes
Existing paper forms
Manual form filling
Immediate scanning
OCR
Integration with apps
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11. Enterprise mobility is one of the fastest growing areas in IT
of financial organisations will increase IT spending on enterprise mobility in the next 12 months
43%
in 2015
the share of “mobile personnel” in the financial industry will increase
from 35% to 46%
20%
year-on-year spending by banks and insurers will be growing by over

12. Most important driving factors for enterprise mobility
Source: IDC Enterprise Mobility Survey (April 2015), 114 Europe Financial Institutions
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13. Enterprise mobility: collaboration and customer service
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14. Branches are here to stay
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15. Sell relationships, not products

16. The importance of context and personalisation
Profiling is not enough adopt “personalisation“
Be relevant offer cold water in hot desert
Be on-demand real-time loan application on mobile with instant credit
Predict behaviour understand customer spending and stimulate demand
Get more data customer data from other sources can help understand the relationship
Follow across channels monitor customer interactions and act accordingly

17. PSD2: Access to Account (XS2A)
Customers
Customers
XS2A
Bank interfaces
Bank interfaces
Third Party Interfaces
Bank accounts
Bank accounts

18. Internet-of-Things (IoT) is redefining the insurance industry
Car
Pay-How-You-Drive
Fraud Detection
Fleet Management
Safety & Security
Vehicle Diagnostics
Fleet Sharing
Home
Presence
Security
Leak/Flood/Fire
External Conditions
Life & Health
Fitness
Lifestyle & Diet
Health Monitoring
Safety & Alerts
Patient Management
Others
Pet Insurance
Agriculture
Industrial
Asset Tracking
Cyber-risk
Law Enforcement
Context Insurance
Undiscovered
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19. Key success factors in implementing Digital Transformation
Clearly identifying short- term and long-term business benefits
Understanding and mapping digital behaviour and expectations of customers
Cooperation between departments and teams
Vision of how digital helps achieve competitive advantage
Ensuring execution to plan is everyone’s responsibility
Source: IDC Digital Transformation Survey, June 2015, 53 Financial Institutions in Europe
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20. © IDC Visit us at IDC.com and follow us on Twitter: @IDC
Where to begin?
Review and improve customer service capabilities to meet the expectations of connected clients
Improve consistency and speed of customer service processes across all channels
Update all customer-facing technologies – for both clients and personnel – to enable personalisation
Integrate all data points and business processes to provide “frictionless” service
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21. Andrei Charniauski Head of Europe IDC Financial Insights
@CharniauskiA
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