session 3 - Marc Lijour CRBC

RFi Group Global Retail Banking Conference Series – Canada

Opportunities in Digital Banking and FinTech

9th June 2016

Toronto Region Board of Trade, First Canadian Place

Canadian Retail Banking Conference 2016

2

SESSION THREE: INNOVATION, DIGITAL ADVICE & WINNING IN CUSTOMER LOYALTY

Innovation and Partnerships: Learning from core technologies used by start-ups and leading IT companies

Marc Lijour, Director, Savoir-faire Linux

Savoir-faire Linux | Marc Lijour 3

Innovation Catalyst

Savoir-faire Linux | Marc Lijour 13https://web.liferay.com/partners/service-partners

https://web.liferay.com/partners/service-partners

Savoir-faire Linux | Marc Lijour 15Credit: www.kewlwallpapers.com

Speed of Change

http://www.kewlwallpapers.com/wallpaper/High-Velocity-Cheetah/


Today's Challenges

› Speed of Innovation

› Customer Experience

› Omnichannel (Web & Mobile first)

› Security

› New talent

Digitization

Drivers


From IoT to Cloud

InfrastructureCLOUD ARCHITECTURE

IndustrialEMBEDDED ARCHITECTURE

EntrepriseAPPLICATION ARCHITECTURE

Agility


Meanwhile, in a country nearby...

In the US, FinTech investments showed the largest increase in 2015(183% vs 133% for healthcare in 2nd place). NVCA & PwC (January 15, 2016)

Global investments tripled in 2014. Accenture (2015)

3x

http://nvca.org/pressreleases/58-8-billion-in-venture-capital-invested-across-u-s-in-2015-according-to-the-moneytree-report-2/

http://www.fintechinnovationlablondon.co.uk/media/730274/Accenture-The-Future-of-Fintech-and-Banking-digitallydisrupted-or-reima-.pdf


Canada $1 B since 2010

US$9 B in 2014 alone

World$12 B in 2014

Toronto3rd largest FinTechcluster in N. America

(May 9, 2015)

http://www.economist.com/news/leaders/21650546-wave-startups-changing-financefor-better-fintech-revolution

http://www.omersventures.com/next-gen-financial-technologies.aspx

http://www.economist.com/news/leaders/21650546-wave-startups-changing-financefor-better-fintech-revolution


Remittances

Cutting prices by 5% can save up to $16B per year (World Bank)

1.2% (CAD MEX)→8 -12% (CAD MEX)→

● $582 bn in 2014 ($435 bn to developing countries)● Average cost: 7.53%● Mexico accounts for half of remittances

Fact Sheet

https://remittanceprices.worldbank.org/en


Lending

?

Goldman Sachs' 2015 report: Socialization of Finance

Crowdfunding is “potentially the most disruptive of all new models of finance.”

● Crowfunding could reach $96 bn per year in developing countries by 2025 (World Bank)● TAM = $1 Trillion (according to Foundation Capital -invested in Lending Club)● UK industry alone:

● raised over $7 bn (P2P Finance Association)● $3.9 bn in 2015 (86% of alternative finance market ; and 10x equity crowdfunding)

● Nearly half of humanity lives with less than $2 a day (UN)● 2.5 bn people are unbanked

Fact Sheet

China would have +1500 P2P platforms (Wangdaizhijia)

http://p2pfa.info/data

http://www.un.org/en/globalissues/briefingpapers/food/vitalstats.shtml


Digitization means Disruption


“Banks need to take on Amazon and Google, or die”

Francisco Gonzalez, Chief Executive of BBVA (2013, 2015)

“Half of the world's banks will disappear”

“Silicon Valley is coming”Jamie Dimon, CEO, JP Morgan Chase (April 8, 2015)

http://www.ft.com/intl/cms/s/bc70c9fe-4e1d-11e3-8fa5-00144feabdc0,Authorised=false.html?siteedition=intl&_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbc70c9fe-4e1d-11e3-8fa5-00144feabdc0.html%3Fsiteedition%3Dintl&_i_referer=&classification=conditional_standard&iab=barrier-app#axzz3ojXmfGVg

https://www.finextra.com/news/fullstory.aspx?newsitemid=26965

http://files.shareholder.com/downloads/ONE/15660259x0x820077/8af78e45-1d81-4363-931c-439d04312ebc/JPMC-AR2014-LetterToShareholders.pdf


A Napster moment?


A Napster moment?

Digital currencies Man-powered ATM

P2P Lending

Digital Autonomous Organizations (DAO)

Remittances

Mobile paymentSmart Contracts


Learning from the Internet

Credit to Paul Baran (1964), part of a RAND Institute study to create a robust military communication network (ARPANET).

http://www.ibiblio.org/pioneers/baran.html


Accenture's Pilars of Corporate Cultural Shift

› Built for change› Data driven› Embrace disruption› Digital risk awareness

#techvision2016

Pace ofChange

xn

“Openness, Collaboration and Investment are the critical themes that emerge for existing banking players”The Future of FinTech and BankingAccenture (2015)


The world is Open

https://www.blackducksoftware.com/future-of-open-source




Collaboration is key across Big IT


Collaboration is key across Industries

4th Industrial Revolution

|

“25% of the world's economy will bedigital by 2020.”

Accenture #techvision2016


Substitution Augmentation RedefinitionModification

Path to Digitization

Adapted from Dr. Ruben Puentedura, Ph.D. http://www.hippasus.com/rrpweblog/

Today's banking industry New, redesigned industry

http://www.hippasus.com/rrpweblog/






● Online banking● Web-based chat

● Omni-channel● Budget tracking

● Big data for lending● Roboadvisors● FX / Remittances● Tax preparation● ...

● FinTech Bank● Marketplace banking







● Online banking● Web-based chat

● FinTech Bank● Marketplace banking

Cooperationwith FinTech

PlatformPlay

(owning the customer)(Speed and Customer XP)

● Omni-channel● Budget tracking

● Big data for lending● Roboadvisors● FX / Remittances● Tax preparation● ...



Collaboration in Practice

Bank

M&A

FinTechWhite

Labelled

Center ofInnovationIncubation

FinTechPlatform

Academia

PublicSector

Community

FinTechSales

Channel

PureTech

Partner


WIN THE CUSTOMER WITH


Competing against Disruption with clear Focus

Substitute &Augment

ReduceCost

Modify &Redefine

All, butin order

|

We know how

session 3 - Marc Lijour CRBC

Documents

Transcript of session 3 - Marc Lijour CRBC