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Big Data & Analytics… Anything But BAU in 2013
Cyrus Daruwala, Managing Director – APJ
14th May @ FST
© IDC Financial Insights Page 2
© IDC Financial Insights Page 3
2.57
2.86
3.07
3.23
3.30
3.42
3.54
3.67
3.83
3.93
3.93
4.00
4.17
0.0 1.0 2.0 3.0 4.0 5.0
Cloud computing
Outsourcing
Social media in financial services
Business process reengineering
Trade and cash management
Core banking system renewal
Compliance
Banking 2.0 innovation
Risk management
Channel management (branch, ATM, mobile)
IT security and fraud management
Customer insights and analytics
Innovation strategies
Q: What are some of the strategic initiatives your bank is working on right now? Strategic Focus - Innovation is Tops!
© IDC Financial Insights Page 4
Breakdown of Qualified Submissions
N = approx. 1,000 over the 3 years
© IDC Financial Insights Page 5
10
2
3
4
5
6
9
8
Core Banking
Selective Sourcing
Channels
Profitability and Performance Management
Customer Centricity
Payments
New business technologies
Risk Management and Compliance
Business Process Reengineering
Security and Fraud Management
1
3
1
3
2
1
2
7
4
Customer Data Management & Single Customer View
Channels
2
Risk Management
Fraud Management
New Themes of Customer Centricity
Business Process Reengineering and Core Banking
Compliance
Mobile Everywhere
Trade Services and Transaction Banking
Innovation in Retail Payments
IT Governance
Alternative IT Delivery
Customer Centricity Through The Years 2006 2007 2008 2009 2010 2011 2012
© IDC Financial Insights Page 6
What are the Drivers behind this Customer Centricity?
1
3 2
4
5
We want to be
able to analyze
our customers
better and in a
more granular
fashion
We should able to serve
our customers faster
We should understand
that our customers are
most likely active social
media participants
We are
increasingly
pitching to a
customer segment
of ONE
Our agents, and
customers are
now more mobile
© IDC Financial Insights Page 7
Analytics: Big Data is the New “In” Thing
Data we are able to gather have exploded in quantity
Velocity
Volume
Variety Data we are able to gather have exploded in type
We are able to process all these data much faster
10x growth in
data stored
between 2008-2012
Transactional data
Lifestyle-related information
Behavioral data
Demographics
Geospatial information
Online and social media interactions
Mobile (smart-phone) usage trends
1
© IDC Financial Insights Page 8
Customer Data Management
Mandates to cut turn-around times
We observe “customer promise" programs to:
Shorten waiting times,
Cut queues,
Serve customers in branches by a certain number of minutes,
Open accounts within a certain time frame, or
Approve credit quicker than usual
Speed and Instantaneous Response 2
© IDC Financial Insights Page 9
Examples we are Seeing in the Region…
Reduced
account
opening time
from 2 days to 5
minutes
UBank National Australia
Bank
Loan approval
in an hour
Citi Singapore
Personal loan
approvals in ten
minutes,
including debit
card issuance
RHB Easy Malaysia
Eight minute
service pledge
Standard
Chartered Singapore
2
© IDC Financial Insights Page 10
But it is in m-commerce where we see all the 5 themes come together…!!
© IDC Financial Insights Page 11
Q: How would you rate your bank's current innovations around mobility?
Channel Strategies around Mobility
N = 14 0 respondents .
Source: Bankers Boardroom Survey, August 2012
Mobilility is tightly integrated into our
multichannel strategy. We are one of the best in
the Singapore market 29%
We have already seen success in a few areas around
mobility 43%
We have implemented basic
mobile banking functions but are looking at further enhancements
7%
We are only just planning to
implement/rollout mobility initiatives
21%
© IDC Financial Insights Page 12
Analytics On / To The Mobile !
Locational Intelligence in Action
UOB Singapore
Mobile Augmented Reality in Action
Commonwealth Bank
of Australia
© IDC Financial Insights Page 13
Speed and Mobility
Making Things Faster and Simpler:
ANZ goMoney Making Things Faster and Simpler:
Digital Check Deposits
© IDC Financial Insights Page 14
What about community aspects of mobile?
No.1 in the Apple iTunes Stores within 6
hours after launch
No. 2 free App by end of launch day
1,000+ customers giving
feedback within the first month
4 out of 5 average rating
E.G of ANZ goMoney™
© IDC Financial Insights Page 15
Facebook in Mobile Payments
CBA Kaching
© IDC Financial Insights Page 16
Hyper-Personalization and Mobility
Hyper-Personalization in Action
Standard Chartered Breeze Hyper-Personalization in Action
ANZ goMoney™
© IDC Financial Insights Page 17
SO HOW DOES THE MALAYSIAN FSI BUY ? AND HOW DO THEY VIEW THE THEIR VENDORS ??
© IDC Financial Insights Page 18
Q. Aside from pricing/cost, what do you think are the top 3 factors that drive your
organization's decision when selecting/switching to a new Core vendor/provider?
0% 5% 10% 15% 20% 25%
Flexibility to meet special requirements
Business consulting expertise
Network infrastructure
Strong & extensive partner ecosystem
GRC
Security expertise
Risk-reward sharing model
Understanding your business/industry
Business-outcome-based SLA
IT services delivery capabilities
CIO
LoB
Process Integration Capability
Business process transformation knowledge
Outcome-based pricing
Solutions, IT & Ops -business alignment
Vendor Selection Checklist
© IDC Financial Insights Page 19
0% 5% 10% 15% 20%
Limited ICT budget
Inability to adopt new technologies todrive competitive edge
Lack of business unit stakeholders'buy-in
Lack of required skill sets to effectivelyexecute
Lack of thought leadership in ICTstrategy & roadmap
Inability to transform businessprocesses
Ineffective IT-business alignment
Source: IDC APeJ C-suite Barometer Survey, Feb 2011 (CIO/CTO=486)
Q. What are your top 3 challenges with finding the right Vendor / Partner
Difficulty To Predict Cost & TCO & ROI’
Difficulty Finding Process +IT+ Apps Executives
Difficulty To Find a GLOCAL IT Partner
Why is All this Difficult …??
© IDC Financial Insights Page 20
Sub-Processes
Stakeholders
Technology
They Chuck Products / Services, No Road Map Start here ! Process 1 Process 2 Process 3
© IDC Financial Insights Page 21
It Feels Like This in Every IT Presso & Every RFP !!
• They Bedazzled You
during the RFP, but
now you are Customer
# 1,264
• The Risk is even
higher if you remove
them / phase them out
• You ( even CIO’s) are
not Techies ...u
understand IT &
business...but still
• Everybody’s Blaming
Everybody ...and In
the Middle of all this....
Is Larry .....
© IDC Financial Insights Page 22
So How Can You Find “Your Star” and Transform
1. Customer centricity & expansion
2. IT & Business process transformation
3. Operational efficiency & productivity
Customer centricity & expansion
Operational efficiency & productivity
Business Process Transformation
© IDC Financial Insights Page 23
Deployment
Cost
Business
Risk
Business
Value
Reasonable
Cost
Optimal
Risk
Greatest
Business
Value
None Modest Moderate Radical
-
+
-
+
-
+
Help LOB / IT Find their Sweet Spot
© IDC Financial Insights Page 24
So….What Can You Use Tomorrow ??
Start ‘Somewhere’ in the Business
Process or in the LOB, not with IT.
The is Very Little Crowd outside the CRO,
CFO & COO’s office, Go there !!
All Initiative must have GRC, Social
Business & Future-proofing angle.
© IDC Financial Insights Page 25
Cyrus Daruwala
Managing Director,
Financial Insights, Asia Pacific
Email: [email protected]
Tel: +65 6829 7718