Banking Trends for 2016

2Copyright Capgemini 2013. All Rights Reserved

Presentation Title | Date | Financial Services

Banks are facing an increasing threat of

disruption

Profitable aspects of banking business are being targeted

Customer expectations are creating a need for innovation

Payment services are facing the highest level of disruption

Source: Capgemini Financial Services Analysis, 2015;



Banks are making investments to drive

innovation

Partnering/

Collaborating

Incubators/

Accelerators

Innovation

Labs

Investing in

FinTechs

Acquiring

FinTechs




To counter cyber threats, banks are investing

more in Security Systems

450

mn

Customers using

banking services

through biometrics by

end of 2015

40%Increase in cost of

managing cyber

security infrastructure

by 2025

$13.5

mn

Total average

annualized cost of

cyber crime in financial

services firms in 2015

Source: Capgemini Financial Services Analysis, 2015; 2015 Cost of Cyber Crime Study: Global, Ponemon Institute; Why Cyber Security Will Cost 40% More In 10 Yrs, CXOtoday, News Desk,June 12, 2015; Biometrics will be main banking identity

authorization method by 2020, says report, Justin Lee, Biometricupdate.com, June 2, 2015



Banks are increasingly using cloud services

for core business activities

$191

bn

The global cloud

market is estimated

to reach $191bn by

2020

70%

Percentage of cloud

initiatives of major

global banks

leveraging private

cloud (Dec 2014)

Scalability

Flexibility

Agility

Source: Capgemini Financial Services Analysis, 2015; Benchmark Your Enterprise Cloud Adoption, Forrester Research, Inc., Sophia I. Vargas, Dave Bartoletti with Glenn ODonnell, Michael Caputo, August 12, 2015; Cloud Heat Map in Banking, 2015,

Gartner, December 10, 2014



Banks will continue to leverage digital

technologies to enhance customer experience

Enhanced

Mobile Banking

Services

Analytics Driven

Personalized

Services

Advisory Role of

Physical

Branches

24%

Percentage of new

analytics initiatives

are focused on

customer

experience in 2015

Source: Capgemini Financial Services Analysis, 2015; Analytics Heat Map in Banking, Gartner, 2015



Banks are increasingly taking up legacy

systems transformation

Driving Agility Better Time to MarketCompetitive

Differentiation

80%

Percentage of banks

expected to replace

their core banking

systems within the

next five years

Source: Capgemini Financial Services Analysis, 2015; 80% of banks to replace core systems within five years, Elliott Holley, Banking Technology, 16 March 2015



Banks are exploring distributed ledger

technology as an opportunity

Efficiency

Speed

Transparency

$ 15-

20 bn

Distributed ledgers are

expected to reduce

banks infrastructure

costs by $15bn$20bn

per annum by 2022

Source: Capgemini Financial Services Analysis, 2015; The Fintech 2.0 Paper: rebooting financial services, Santander InnoVentures, Oliver Wyman, and Anthemis Group, 2015



Banks are working to fully integrate risk

management and compliance practices

$ 230 Billion Total Litigation Costs Paid by

U.S. and European Banks

(2009-2014)

Increased

Regulations

Increased Spending

on Automation

Enabling Employees

with Decision

Making Tools

Compliance

Procedures for

Third-Party Vendors

Source: Capgemini Financial Services Analysis, 2015; European banks face $52 billion in litigation costs: Morgan Stanley, Reuters.com, 13 Jan 2015



Banks are embracing advanced analytics in

addition to traditional business intelligence

solutions

Proportion of Overall

Analytics Initiatives by Banks

Traditional BI: 28%Advanced Analytics: 72%

Risk ManagementBusiness

StrategyFraud Analytics

Customer

Analytics

Source: Capgemini Financial Services Analysis, 2015; Analytics Heat Map in Banking, Gartner, 2015



Banks are focusing on financial inclusion and

awareness

Pressure on

Business Growth

Enhance Financial

Awareness

Enhance Customer

Engagement

Need for PFM and

Gamification


The information contained in this presentation is proprietary.

2013 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

Now with 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 2014 global revenues

of EUR 10.573 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on

Rightshore, its worldwide delivery model.

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Banking Trends for 2016

Economy & Finance

Transcript of Banking Trends for 2016