Agile Banking ITa7502df7-3fca-4b06-a8be-d8ab2abf6e3… · Fail Often Fail Fast Fail Cheap. GFT...
Transcript of Agile Banking ITa7502df7-3fca-4b06-a8be-d8ab2abf6e3… · Fail Often Fail Fast Fail Cheap. GFT...
Agile Banking IT
Manuel Lavín Delgado
Head Global em Digital da GFT26 November 2015
DIGITAL TRANSFORMATION
People have changed
… but you already knew it
GFT Group 24.11.2015 3
71%Of young people would rather go to the dentist
than listen to what banks are saying.
Source: Scratch Agency
GFT Group 24.11.2015 4
People have changedPEOPLE HAVE CHANGED
Source: The millennial disruption index
53%
of millennials don’t think
their bank is any different
from other banks
Lack of
Innovation
73%
would be more excited about
a new financial services
offering from
Google/Amazon/Apple/
Square/Paypal than their
own bank
Looking for fresh
ideas
33%
believe soon they
won’t need a bank
at all
!FinTech
momentum
33%
are open to
switching banks in
the next 90 days
No loyalty
=
DIGITAL TRANSFORMATION
Players have changed
… but you already knew it
GFT Group 24.11.2015 6
35%of banking revenues will be at risk by 2020 due
to disruption in the financial sector, from new
digital financial players as FaceBook or Google
Source: Accenture , Banking 2020 Report
GFT Group 24.11.2015 7
FinTech SummaryCOMPETITORS HAVE CHANGED
Source: Venturescanner
Number of categories
19 categoriesNumber of companies
1362 companiesAverage Funding/ Company
$44 million
Average Age/ Company
6 yearsAverage headcount/ Company
167 employeesTop Geo Locations
US, UK, China
GFT Group 24.11.2015 8
What are FinTech doing? Focus on Leading and PaymentCOMPETITORS HAVE CHANGED
Source: Venturescanner
GFT Group 24.11.2015 9
What are FinTech doing? Move from banking infrastructure to investment
COMPETITORS HAVE CHANGED
Source: Venturescanner
DIGITAL TRANSFORMATION
Financial services industry
is evolving
… but you already knew it
GFT Group 24.11.2015 11
Theory of Evolution and Natural SelectionFINANCIAL SERVICES INDUSTRY IS EVOLVING
Society is evolving faster than ever, and technology is, at same time, cause and consequence
Financial sector is one of the most dynamic actor because a new client segmentation based on
technology has appeared, and banks must decide how to evolve to cover their needs
Customer digitalization
Analogic Customer
Do not like, do not know how, or
do not want to use technology
Digital Customer
Digital believers
Evolutionary Banks
FinTechs
Disruptive BanksTraditional Banks
GFT Group 24.11.2015 12
What are the banks doing?FINANCIAL SERVICES INDUSTRY IS EVOLVING
Create Digital Factories & Labs
The definition of “Digital Factory” will keep changing as industry evolves
Scotiabank pursues “best
customer experience for our 21
million customers”
Wells Fargo Digital Labs to
“simplify customers’ financial lives”
Deutsche Bank Innovation
Laboratories to “improve its digital
banking operations and fend off
new market entrants”
Silicon Valley Bank acquired
Standard Treasury to “enable
better digitized services to our
clients”
HSBC FinTech innovation labs to
“promote new technologies from
startups and partners within the
bank”
Citigroup Citi FinTech
development of its mobile banking
services
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What are the banks doing?FINANCIAL SERVICES INDUSTRY IS EVOLVING
Focus on Consumers
Within five years 80% of interactions will be online or mobile. Banks play defense againts new entrants
(Google, Amazon, Alibaba,...)
Barclays Bank- Pingit:
send/receive money instantly &
scan items in shop windows
Garanti’s iGaranti (Turkey) &
Standard Chartered (China): app
sends alerts on special offers for
your favourite shopping brands
Bank of America: analyses
transaction data to give customers
cash back on transactions at
frequently used merchants
Commonwealth Bank (Australia)
offers a mobile app that uses
“augmented reality” technology to
help with home- buying
GFT Group 24.11.2015 14
What are the banks doing?FINANCIAL SERVICES INDUSTRY IS EVOLVING
GFT Group 24.11.2015 15
What are the banks doing?FINANCIAL SERVICES INDUSTRY IS EVOLVING
DIGITAL TRANSFORMATION
The relationship with
customers has changed
… but you already knew it
GFT Group 24.11.2015 17
Customers are demanding more servicesTHE RELATIONSHIP W ITH CUSTOMERS HAS CHANGED
DIGITAL TRANSFORMATION
What do I have to do?
… and you may not know it.
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The pillars of Digital TransformationW HAT DO I HAVE TO DO?
Technology Transformation (Agile Banking/Insurance)
• Innovation
• Methodology
• Dev. Architecture
• DevOps
Digital
Transformation
Organizational Change
• Digital Banking Vs. Traditional Banking
• Design Thinking to drive digital innovation through
the whole organization
• Agile methodology adoption
Human Centric Approach
• Customer Experience: Design thinking/service design
• Big data & Analytics
• Omni-channel
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InnovationW HAT DO I HAVE TO DO?
Innovation starts when we ask
ourselves a question or have a
problem to resolve…
a challenge
How can we give service to a
new segment?
DesirableAbstract and
unclear
Viable Specific and
profitable
CHALLENGE RESEARCH CONCEPT DESIGN EVALUATION
Innovation process
How can we improve the
experience of our clients,
starting from this channel?
How can we improve the
acceptance and perception in
the market?How can we reduce the Customer Effort of
our clients and be present in a transparent
way in their day to day?How can we improve the commercial
proposal empathizing with them? How can we reinvent the
sector in which we operate?
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The key to Evolution: Agile Banking
• Agile Banking is a cultural movement, it’s all about people
• The basis is the collaboration across roles, with the focus on business instead of silos (departments),
trust and confidence and a high degree of learning by failing:
• Requires management commitment and collaboration with the teams (Business and IT) to create a
culture of collaboration and sharing
W HAT DO I HAVE TO DO?
Fail Often
Fail Fast
Fail Cheap
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Agile BakingW HAT DO I HAVE TO DO?
New methodologies allow IT and
Business teams to work together in an
agile environment
“Disruptors don’t set out to beat you at your
own game — they change the rules.”
Application of agile and
lean procedures
throughout the entire IT
supply chain within the
organization
“Revenues are going to
be generated in Real-
Time (mobile)”
Application architectures
thought to improve the
continuous delivery of
functionality to the customer
“Transform the retail banking
account into a primary
financial App” (Moven)
Methodology
DevOpsDev.
Architecture
Agile
Banking
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Methodology – Continuous DeliveryW HAT DO I HAVE TO DO?
Financial services are facing challenges from different areas and competitors. An agile deployment process is required,
Continuous Delivery allows to reduce the costs, time and risk of the solutions.
Customer Management SCRUM & Full-stack
Open APIs Big Data
• Moving to a customer centric
model to respond more precisely
to the demands of end users
• Focus IT development on the user
experience
• Scrum allows to development and
business teams to be aligned during
the whole project
• New cross-teams profiles can speed
up the development
• Banks can disseminate his financial
services with minimum effort and cost
• New applications with financial added
value totally integrated in the unique user
experience
• Clients have 24x7 full access to the bank
services from any application
• High levels of personalization are
demanded by customers
• Faster and better decision making
• New products and/or services
based on data analytics
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Agile Banking – Dev. ArchitectureW HAT DO I HAVE TO DO?
Financial Institutions are increasingly dependent on software and IT.
The increasing complexity of the solutions and the rapid technological and business changes make the systems less
responsive over time.
Agile Development Architecture is composed by a set of patterns and principles to be used building new software or
evolving existing applications.
Collaborative Architecture
- Emerging Design: implement only
the required architecture to support
the next increment of functionality.
- Intentional architecture: mid term
planned architecture considering
trends not easily perceived by agile
project dedicated teams, and giving
guidance for Emerging Design
- Collaboration: between Emerging
Design and Intentional Architecture
Program
Increment
Design architecture
incremental and
always running
Keep it simpleUse always the
simplest architecture
supporting the
objectives
Model to solve doubts
Build rapid prototypes when
there is any doubt about
architecture decision
Testable Architects and
developers must
collaborate to
continuously
design
architecture for
testability
No MonopolyInnovation is a
culture, ideas can
come from anyone
from anywhere
Architectural
journey Architecture must be
applied in an Epic itself
in order to drive
changes across all the
organization
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DevOps - FoundationW HAT DO I HAVE TO DO?
Continuous Delivery Integration:
The base for any DevOps approach. A
multi-vendor capable system to allow
continuous build and release of
application code
Automated Environment
Provisioning:
This component allows on-demand
provisioning of environments for its
target activity. Includes auto deploy and
decommission after completion of
activity
Automated Application Testing:
It enables as much as possible the
automation of the different testing
stages an application release has to run
through before getting the “Production
ready” status.
Orchestration:
The Orchestration engine is responsible
for bringing together the different
components.
It is the core automata of the complete
development cycle from the DevOps
perspective.
Basic requirements
and components to
have in place to found
a DevOps approach
DevOps
C.D
.I.
1
A.E
.P.
2
A.A
.T
3
Orchestration 4
DIGITAL TRANSFORMATION
Success Stories
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BBVASUCCESS STORIES
Technology Transformation (Agile Banking)
• Move to an omni-channel solution to deliver, what customers
need, faster
• Front architecture: 3 changes over the last 5 years to adapt the
solution to the customer requirements
• Adopting a DevOps discipline to facilitate new functionalities
deployment
Human Centric Approach
• Customer data governance to understand customers’ need
• BBVA Data Analytics Lab, allows data scientists to provide more
personalized offers or information
• High investment in UX, BBVA acquired Spring Studio a UX
company based in San Francisco
• Real time architecture implementation. To identify real interactions
from customers, to be translated into commercial events
Organizational Change
• Innovation first, BBVA has deployed an internal department to
deliver innovation to every solution
• Every project has to be developed by an Agile methodology
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BankiaSUCCESS STORIES
Technology Transformation (Agile Banking)
• Move to an omni-channel solution to deliver, what customers
need, faster
• Adopting a DevOps discipline to facilitate new functionalities
deployment
Human Centric Approach
• Analysis of the different type of users and deploy a fully adaptive
solution based on the user
• User Experience analysis before any development:
• Interaction Design
• Organizational Model
• Information Architecture
• Prototyping
Organizational Change
• New internal department to drive digital transformation within the
company
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BBVA SegurosSUCCESS STORIES
Technology Transformation (Agile Banking)
• Information architecture to facilitate navigation and search
functions
• Quick quote conceptualization to increase bookings
• Investment in data analytics
• Use of a CMS to improve the content maintenance
Human Centric Approach
• New customer area to meet its needs:
• Claim/incident tracking
• Billing history
• Search engine optimization
• Testing with real clients
Organizational Change
• New corporate model definition
• User eXperience and Design dedicated teams
• All the projects managed internally, close relationship
Development-Business-Providers
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WibeSUCCESS STORIES
Technology Transformation (Agile Banking)
• Architecture of channels and comprehensive technical leadership
defining the architecture of both: Front and Service Orientation
• Development of reusable components for Frontend and Backend
• Mobile apps evolution from hybrid to native, reducing the
maintenance
Human Centric Approach
• Extremely competitive time to market. Platform readiness in 5
months, covering both public and private areas
Organizational Change
• Development of channel platform into a 100% digitally oriented
World
• On-line positioning over off-line campaigns
Thank you
GFT
Manuel Lavín Delgado
Head Global em Digital da GFT
T +34 917 102 423
F +34 913 728 311