Making DT realThe future of banking and insurance

Kees Lemmens

Digital transformation

1. Digital is about the

opportunity for businesses to

reimagine how modern

technologies can empower

new ways of connecting with

customers and create new

business models.

2. Transformation is about

creating culture of continuous

innovation and improvement

where the entire organization

sets to help its customers,

employees, and shareholders

to achieve more.

Impact from digital, % of net profit for retail bank - Source: McKinsey & Company

Stay behind and risk eroding

net profit by 35%While leaders improve their

profit upside by 40%

Transform your bu siness

Engage your cu stomers

Optimize your operations

Empower your employees

Digital TransformationReinventproductivity& bus iness processes

Build the intelligent

cloud platform

Create more personal computing

Digital

technologies

Digital

strategy pillars

Empower

Achieve more

Engage your customers Empower your

employeesOptimize your

operations

Transform your business

Create new ways to

connect with customers while ingraining loyalty

and trust; provide

seamless omnichannel experiences and build

the ability to respond rapidly to customers’

evolving needs

Provide employees with capabilities and solutions

that empower them to

support your digital

ambition, eliminate

physical boundaries and help build the right digital

skills for execution

Transform and integrate

products and services into relevant end-to-end

solutions that solve

customers’ real problems and build a competitive

edge through these new value propositions

Design the most beneficial, efficient, and

effective processes while

ensuring compliance and

proactive management of

risk; overcome constraints and build the right digital

capabilities for excellence

Digi tal Foundation

D e fend: Customer engagement strategy

D i srupt: Customersolution strategy

Strategic direct ion

Making it realDream→ Design→ Deliver

The Design Stage

Create your digital transformation plan with your Digital Dream Team

The Dream Stage

Define your digital transformation journey in a Book of Dreams

The Deliver Stage

Continuously enhance experiences and ensure Digital Value Realization

The journey to value

Inputs

• Business

strategy

• Industry

trends

• Customer

research

insights

Digital

Business

Value

Management

Adoption

Management

Continuous

Improvement

Deliver your Digital Value Proposition

Digital Culture -- Digital Value Realization

Agile Delivery

@ Scale

Design your Digital Transformation

Digital Organization -- Digital Dream Team

Define

your RIDE

Product

backlog

Digital

Team

InspireTune

Engage

Co-createModel

Show

Release

plan

Azure powered

prototypes

Iterate

Digital

Vision

Dream your Digitally Enhanced Outcomes

Digital

Roadmap

Capability

Assessment

Scenario

Prioritization

Digital Strategy -- Book of Dreams

Value

Case

Solution

Storyboards

Pilot

Definitions

Technical

Storyboards

Initial Customer

Journeys

Dreaming

“Wake up Des! You got your salary! It’s beautiful day, 26ºC and sunny, great for Saturday shopping” her bank’s app

I order a taxi and pay with my phone – embedded in the taxi app, like Uber

I go for some breakfast with my friend and pay by Wave. We split the bill all within the app

I need to stay healthy, my app suggested to take the bike – scan, unlock, and go!

Not only I get to see the health benefits, I also see how much I saved on taxi-costs and of course payments are handled seamlessly

I meet up with another friend, he wants to borrow some money – the app offers an instant friend-loan agreement and shows me a suggestion on his “credit risk”

I get thirsty and need a coffee, I preorder my coffee and it’s all ready upon my arrival - no need to pay, it’s already taken care off

On the go, I grab a snack from a

vending machine by scanning the item’s QR code

Let’s go shopping! This mall uses very call

SoundWavepayment technology, it also

suggests purchases for me and let’s me know if

any of my friends are around – I love

shopping!

I receive a warning and will need to approve further spend against my

savings goals – my bank knows me well, they know that I still need to

pay my bills this month so they tell me what’s save to spend if I want to

buy that car next year … they already suggested some models

with 1st class insurance suiting my personal style – this is what I expect

from my bank, today

A day with Desiree, 26 Korean

“I use my bank’s app for everything in my life, utility bills, top

up my mobile, buy travel tickets, investing my money,

insurance, etc. it’s real easy and super convenient”

The story of ING Group

Financial crisis Needed a €10 billion bailout

New management team Welcome to the “Dark-side of the moon”

Creating an engineering culture DevDay “the Spark that started…”

From a 1 star mobile app… “…a fire” agile app development

Automated deployment you say… Continuous Delivery – what’s that?

To a 5 star app | cloud, I want that but... Cloud – Platform-as-a-Service

Breaking down siloes to collaborate DevOps – Bank-in-a-box

Growth pains - proper engineering NetFlix – Scalable Architecture

Taking IT global; shared responsibility Spotify – Agile at Scale

Agile call center, operations, and branches Zappos - Self-steering teams & Dynamics

Professionalize IT engineering Dreyfus – observable behavior

BizDevOps became a reality The Agile Bank

World’s best bank

Save significantly on operational cost The rise of AI – Data is power

Sharing our knowledge to stay ahead…

Oct 2008

Jan 2010

Jun 2010

Oct 2010

Apr 2011

Feb 2012

May 2013

Sep 2014

Jun 2015

Sep 2015

Nov 2015

Jan 2016

May 2017

Oct 2016

Banks prattle a lot about digital strategy.

At ING, the talk is far more convincing.

Last year Ralph Hamers (CEO), unveiled a

plan costing €800m to bring the whole

bank onto one digital platform and save

€900m a year by 2021… this is move C!

Digital empowers…

Since 2014 ING and Microsoft proactively share what we learnt…

…and culture transforms

@ Microsoft - The adoption of a growth mindset has allowed us to rethink the way we work together within the company. It starts with

replacing a “know-it-all” culture with a “learn-it-all” culture – where it is okay to fail, so long as you learn from it.

That growth mindset attitude begins at the top.