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#WFTR17
Bill SullivanGlobal Head of Market Intelligence
Capgemini Financial Services
#WFTR17
@WFSullivan3
#WFTR17
#WFTR17
Banks and Fintech Firms’ Relationship Status: It’s Complicated
- The Wall Street Journal, 18-Nov-2015
No rest for banks as fintech challenges loom
large - The Banker, 10-Jun-2015
Banks Are Right To Be Afraid of the FinTech Boom
- Time, 8-Jul-2015
- Payments Industry Intelligence, 15-Jul-2016
Technology threatens the insurance business
- The Economist, 16-Mar-2015- Tech Crunch, 5-Aug-2015
- Forbes, 22-Dec-2015
We Are All Familiar with the Media Hype around FinTech
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Our World FinTech Report Is a Multi-Prong Collaboration
World FinTech Report 2017 Agents of Change Executive Roundtables Finance Connect
FINTECH Conference
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Check Out Our Agents of Change Already Released
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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3
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Global FinTech Financing Activity ($billion), 2008-15
Source: CBInsights
$ bi
llion
2008 2009 2010 2011 2012 2013 2014 20150
5
10
15
20
0
300
600
900
1200
1.1 1.7 1.8 2.3 2.8 4.3
12.6
17.8
163220
317437
582
748848
1,062
Dea
ls
Exponential Growth in FinTech Financing Since 2013
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China and India Lead Customer Adoption of FinTech
ChinaIndia
UAE
Hong Kong
Spain
Singapore
Turke
y UKU.S.
Australia
Japan
Canada
France
Belgium
Netherlands
84.4%76.9%
69.6%
53.5%53.3%53.0%51.6%48.8%45.8%42.8%40.6%39.6%36.2%30.4%29.8%
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
Customers Using At Least One Non-Traditional Firm for Financial Services, 2016
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Younger, Tech-Savvy, and Affluent Lead Adoption
Customer Usage of Non-Traditional Firms, 2016
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
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Trust Advantage Flips with Positive Experience
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
0%
15%
30%
45%
60%52.9%
56.3%
Customer Trust for Traditional and Non-Traditional Firms (%), 2016
Trust for Traditional and Non-Traditional Firms for Customers with a Positive
Experience (%), 2016
0%
15%
30%
45%
60%
36.6%
23.6%
Gen Y and Tech-Savvy customers have higher trust in traditional firms, they
also have higher distrust in traditional firms
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Traditional Firms Regaining Value Perception
Customer Value Perception for Traditional vs. Non-Traditional Firms, 2016
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey 2016
Ability to access services from other institutions through your FS
institution’s Apps
Contextual experiences
Forte of Traditional Firms
Even Competition Forte of Non-Traditional Firms
Personal interaction
User experience
Security and Fraud Protection
Access to product/services more innovative and relevant to me
Transparency Ability to integrate my social world with my financial world
Quality of service
Better value for moneyConvenience
Brand
Timely and efficient service
Low Importance Medium Importance High Importance
Non-Traditional Firms Advantage Noted in
2016 WRBR
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Most Firms Struggling to Meet Customer Expectations
Source: Capgemini and LinkedIn WFTR Voice of Customer Survey, 2016
Top Three Moments of Truth for Customers, by Domain, 2016
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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3
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#WFTR17
Incumbents See FinTechs As Potential Partners
Fintech Firms Will Not Survive on Their Own
Fintech Firms Pose a Significant Threat
Fintech Firms Are Good Acquisition Targets
Fintech Firms Are Setting the Bar Higher
Fintechs Provide Opportunity for Partnership
22.4%
43.1%
53.7%
62.7%
76.7%
Executives’ View of FinTech Firms (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
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Active Partnering with FinTechs & Building In-House
Acquisition of FinTech Firm(s)
Others
Setting Up of Accelerator
Partnering with an Educational Institute
Investment in FinTech
Developing In-House Capabilities
Partnership/Collaboration with FinTech
18.6%
26.3%
29.6%
34.3%
38.0%
59.2%
60.0%
Firms’ Activeness in Various Approaches (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
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Relatively Confident FinTech Strategy in Place
Confidence Level of Executives About Strategy to Address the Challenges Posed By FinTechs (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
Medium LowConfidence Level High
13.0%
43.0%
44.0%
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Significant Opportunities to Better Deliver Results
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
Effectiveness of Achieving Results while Implementing FinTech Capabilities (%), 2016
Very Effective; 10.0%
Moderately Effective; 82.5%
Not Effective; 7.5%
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Today’s Three Themes from World FinTech Report
FinTech’s gaining traction and raising bar, but long way to go1
Incumbents actively addressing FinTechs with mixed results2
Leadership and culture are critical to applying innovation3
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Four-Step Framework to Effectively Apply Innovation
Source: Capgemini Financial Services Analysis, 2016; https://www.capgemini.com/applied-innovation-exchange/applied-innovation-exchange-framework
Facilitate the discovery of emerging technologies,
sector issues, and how these impact your organization
Co-locate to help shape ideas and insights into
business models, prototypes, and technical
architectures
Guide executive alignment and deployment to ensure innovation is adopted at
speed and scale
Help advance innovation processes, improve
proficiency, and implement best practices
Organizational Culture
Clear Vision for Innovation
Senior Leadership Buy-In and Commitment
Capgemini’s AIE Framework to Apply Innovation
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Executive Leadership Support and Buy-In
Shifting the Cultural Mind Set of the Organization
Clear Strategic Vision and Plan
Willingness to Take Calculated Risk
Willingness to Think Outside of the Box
Strategic Budget Allocation
Willingness to Replace Legacy Technology
Ensuring Innovation Plan and Business are in Sync
64.0%
50.7%
29.3%
17.3%
17.3%
17.3%
12.0%
10.7%
Leadership and Culture Are Key Success Factors
Key Success Factors on Applying Innovation (%), 2016
Source: Capgemini and LinkedIn WFTR Executive Survey, 2016
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Selecting Right Partners and Engagement
Model
Commitment from
Leadership
Protecting Customer Data
Preserve Culture of
FinTech
Being Open to Ideas from
Other Industries
Creation of Sandbox
Environment
Source: Capgemini Financial Services Analysis, 2016
Collaboration Will Require New Ways of Working
Incumbents and FinTechs – Pillars of Collaboration Strategy
Pillars for Collaboration
Strategy
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Closing Thoughts
• FinTech is clearly gaining momentum and driving change in the industry
• Emerging markets, Gen Y, and affluent are earliest adopters of FinTech
• We have a seen an explosion of activity by incumbents to adapt to this change
• We are still in the very early stages as firms search for the right formula
• Most innovation to-date focused on incremental vs. transformational change
• Firms can benefit from systematic approach– Discover, Devise, Deploy, & Sustain
• Bigger disruption could be on way with Blockchain, Big Tech and Platformification
The information contained in this presentation is proprietary.© 2017 Capgemini. All rights reserved.
www.capgemini.com
in collaboration with
About CapgeminiWith more than 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion.
Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini
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THANK YOU!