Digital transformation for financial institutions: Session 1

Digital transformation for
financial institutions
Training course
June 2019
Session 1: Financial inclusion and digital
financial services’ ecosystem
Digital transformation for financial institutions
June 2019
Session objectives and outline
Session objectives
Understand digital financial services and its role in financial inclusion
Appreciate the role of different players in the ecosystem and evolution so far
Session outline
Overview of digital financial services and its role in financial inclusion
Digital financial services’ ecosystem
Evolution of digital financial services
3 All rights reserved. This document is proprietary and confidential.

Overview of digital financial services
What is digital financial services?
Access to and use of formal financial products and services(including

transfers, payments, stored value, savings, credit, insurance and more) by the
end consumer through digital channels, leveraging technology enabled/
oriented processes.
Product
Credit Savings Remittances Insurance Mobile Money based

Payments Pensions
bonds
Process
Process efficiencies Client relationship Alternative Data and Credit Work flow management Marketing and
Authentication Transactions management Scoring on-boarding
Channel
ATMs/POS Terminal/ kiosk Agent networks Branch Internet Mobile Phone/Apps Staff

Exercise 1.1: What do you understand by digital financial services?
In buzz group with your neighbor:

Discuss what you understand by digital financial services?
Discuss the digital financial services initiatives that have been taken
by your respective financial institution.
Time: 5 minutes to discuss in groups

Digital financial services: Enablers to financial inclusion
User centric Design

DFS products need to meet the needs of the end user for it to make sense
1
Policy and regulation

2 Enabling regulation for DFS helps the market to flourish in a healthy way.
Marketing and distribution

3 Marketing and distribution help raise awareness and increase understanding of the
customers on the use and benefits of DFS
Technology
Technology is an enabler to digital financial services as it allows the users to
4 connect to financial inclusion and access services

Benefits of digital transformation
Financial institutions have seen rapid growth of number of customers, assets and transaction numbers. With
Portfolio growth the ease in online interactivity and payment solutions there is a faster and seamless growth in the financial
institution
Analytics support in many areas, including sales, product design, pricing and underwriting, and the design of
Refined decision making truly amazing customer experiences
On front-end transformation, beyond digital channels, digital tools can augment frontline servicing (for
Enabling straight-through example, with forms on tabs or handheld devices rather than paper forms). Process apps lead to paperless,
processing more efficient work flows
Compete through new products, Digitization can be leveraged to introduce specialized products such as mobile emergency loans. Improvements
better service and competitive in efficiency can also help reduce the cost of sale for most microcredit products, providing opportunities for
pricing more competitive pricing.
On automation, financial institutions can realize up to 40% cost reductions by deploying work-flow tools and self-
Saving on cost and improved service capabilities. Almost two-thirds of EBITDA comes from the impact of digital on the cost base and loss
earnings provisions rather than from revenue uplift, which is why a focus beyond front-end investments is critical

How to achieve full digital transformation?
Digital transformation is offering the right combination of: 1) digital solutions/tools, 2) delivered
digitally, 3) riding on digital technology, and 4) providing seamless user experience.
Automating and digitizing a

number of repetitive, low- Digitize Digitize product Financial institutions can look
at digitization for fostering
value, and low-risk processes
processes and business innovation across products
for example through process
apps models and business models
Technology can be used

Leveraging technology to
Digitize Digitize increase a financial
digitize the traditional
channels will be key in channels engagement and institution’s connectivity—not
just with customers but also
accelerating digital user experience with employees and suppliers
transformation especially
with the proliferation of apps

Potential opportunities and threats of digital transformation
Potential opportunities Potential threats

❑ Compete through new ❑ Innovative new offers by
products, better service competitors like FinTech who
and competitive pricing are new, agile and largely
❑ Increased revenue from unregulated. These
new products, distinctive competitors are
digital sales and using disintermediating the
data to cross sell traditional incumbents
❑ Lower operational costs ❑ With FinTech in the picture,
from discussions centre on just how
automation/digitization quickly and how far
and transaction migration transactions will be unbundled
❑ Increase outreach and and margins slashed
Improve portfolio quality ❑ Increased operational risk,
cyber risk like hacking, fraud
risk

Digital financial services - Ecosystem
Digital financial services’ ecosystem
Digital financial services

DFS providers ❑ Transaction account
❑ Banks ❑ Payment services
❑ MFIs ❑ Savings account, Investment
❑ MNOs services, and Loans
❑ FinTech ❑ Insurance services
❑ Supply chain services
❑ Invoice discounting
❑ Payroll services
Users
❑ Customers
❑ Merchants
❑ Businesses
❑ Government
❑ Non-profit groups
DFS providers support services Use cases

❑ Agents ❑ Buying
❑ Processors ❑ Paying bills
❑ Send/receive funds
❑ Borrowing
❑ Saving
❑ Insuring asset and risk

Digital financial services journey
Users and Interfaces Players

Digital Financial Ecosystem
Friends, family
and community
savings groups
Open APIs
Providers of
Digital Interface Formal Financial
(phones, internet, Services
terminals, POS etc.) Connected banking
Platforms
(pesalink in Kenya)
Customer
Government and
Social Services
Integrated Risk management
Platform
Cash-in Cash-out network Utility companies,

(Branch, ATM, agent network and enterprises and
merchants) Data Analytics merchants
Adapted from ‘A digital Pathway to financial inclusion’, Bill and Melinda Gates Foundation 2012

Evolution of digital financial services
Evolution of digital financial services so far
Service delivery
• End to end transaction
• Utilities, insurance and bill
payments
• Loan initiation and disbursal
Transactions • Real time person to person and
• Service requests person to merchant disbursement
• Origination requests • Integrated mobile payments
• Transaction requests • Loyalty programs
• Account blockage • Other value added services
Information • Authentication
• Sales information
Utility →
• Service information
• Branch locator
• Product information
• Alerts
• Transaction feedback
Complexity →

Exercise 1.2: Integrated ecosystem evolution
In three groups, please discuss:
Ways in which digitization can evolve processes, channel, technology,

product and people in the financial institution
Time: 10 minutes to discuss in groups and presentation

Process evolution
Digital Financial Services
Traditional Financial Services
• Rigid • More agile and versatile functionality

Characterised by
• Spreadsheet driven • Integration is possible
• Seamless on-boarding process

• Formal paperwork or interaction with a • Real time loan approval disbursement
Evolution Focus
financial institution’s representative • Digitally providing customer acquisition,
underwriting, collection process

Process agility – Digital approaches
• Lead management • Lead generation • Financial analysis • Loan repayment • Authentication

• Complaints and • E-KYC • Loan utilization • Bill payment
Front-end redressal • Facility application checks • Savings in/out
processes • Account opening • Targeted marketing • Facility renewals
• IVR/SMS responses
• Geo tagging
Client
Marketing and Appraisal and Controls and risk
relationship Transactions
on-boarding analysis management
management
Client Appraisal
Work flow Controls and risk
relationship and Transactions
management management
management analysis
• Lead management • Documentation • Credit scoring • Loan disbursement • Risk mapping –
Back-end • Segmentation and filing • Credit bureau • Loan repayment concentration,
processes • Targeted customer • Responsibility checks • Bill payment portfolio, single
service sharing • Financial analysis • Savings in/out borrower
• Automates offers • E-approvals • Loan utilization • Facility renewals • Control breach
for valuable • Schedules and checks alerts
customers reminders

Technology evolution
Digital Financial Services
Traditional Financial
Services
• Exponential in growth in traffic and

Characterised data
by • Limited versatility and capacity
• The rise of seamless data across
channels making it Omni channel
• Analytics – alternative credit

• Basic platforms for data analysis underwriting, collections strategy
Evolution
• Largely microcredit • Automation – rules engine, cashless
Focus • Financial inclusion disbursal and collections
• Digitization – workflows and e-sign

Technology evolution
Branches and Web and

Front End Apps
Call Centres Mobile
API API API

Value Added Functionalities
Middleware
Customer Intelligence
Back End Core Banking System

Delivery channel evolution
Smart ATM
Paybill, buy airtime,
Agents/in store POS deposit money,
Carry out transaction on ticketing
behalf of bank Mobile Apps
For remote transactions
and alerts
Credit centers
Hub and spoke Unstaffed center
Large branches in high Channels connected via video
traffic areas surrounded to remote office for
by small automated credit applications
branches
Internet/portal Banking
Video conferencing Connecting customers to
With expert specialist for financial institution
advice and consultation through secure web
portals
Touch screen walls

For financial education to
customers
• Product design – how easy or complex is the product to use

• Market dynamics – demographics, level of ecosystem development
Key
• Risk factors – level and need for technological and operational safeguards for the product
drivers
• Cost of channel - versus business objectives
• Strategic product evolution plans – future scaling, product value add development

Product evolution
Integrated
product stage
Product
diversification
stage
Basic product
stage
• Remote product offering to • Introduction of additional • Products sophistication,

Characterised by
mass market product lines to mass market targeted to segments
• Service awareness
• Consolidating the market with • Diversifying revenue lines
• Testing adoption and business
Evolution Focus additional mass market value • Meeting segmented lifestyle
case (stickiness,
propositions needs
competitiveness)
What activities would the providers be focused on in each of the product evolution stages?

Digitally enabled products
GET
Get Protect
▪ Digital: Remittance, Fundraising ▪ Digital: Freemiums, Wallets,
accounts Micro-insurance
▪ Formal: G2P SPEND ▪ Formal: Mandatory insurance
▪ Informal: Income, Wages, products
Remittances, Loans
PROTECT ▪ Informal: Social
savings/insurance
Spend USE CASES Save

▪ Digital: Mapped savings
▪ Digital: Merchant, Utility and Bill accounts, Group Savings,
Payment Wallets
▪ Formal: School Fees ▪ Formal: Banks, Non-Bank Formal
▪ Informal: Grocery, Medical, ▪ Informal: RoSCAs, SACCOs, MFIs
Lifestyle, School Fees
BORROW
INVEST
Borrow
▪ Digital: Digital credit by banks/ Invest
MNOs, Fintechs ▪ Digital: Mobile money based
▪ Formal: Banks, Non Bank Formal government bond for investment
▪ Informal: ROSCAs, SACCOs, MFIs SAVE ▪ Formal: Not applicable
▪ Informal: Income supplementing
and subsistence assets

Digitally-enabled products
Product Examples
Remittance (P2P,CICO,International remittances) MPesa
Fundraising Accounts M-Changa
Micro Insurance Linda Jamii
Merchant Payment Lipa na Mpesa
Utility and Bill Payment PayGo
Digital Credit KCB Mpesa, Mshwari, KwikAdvance
P2P Lending Zidisha
Pension Scheme Mbao
Group Savings M-Chama
Mobile-Money Based Government Bonds M-Akiba
School Fee Payments Lipa na Karo

Reflection…..
Having understood the journey of evolution, how do you see

DFS benefitting your financial institution?

Banking and financial services of the future
Singular goal is to make banking and financial services simpler through:
Using technology to
seamlessly match
Point A needs to solutions
Frictionless
security and
authentication
Fueled by big
data and Point B
cognitive Point C
learning

Session 2: Importance and relevance of digital
transformation for financial institutions
June 2019
Session objectives
Relevance and importance of digital transformation for financial institutions
Session outline
Relevance of digital financial services for financial institutions
Impact of digital transformation for financial institutions
Business case for financial institutions’ digital transformation

Relevance of digital financial services
for finance and banking
Exercise 2.1: To be or not to be a digital financial service provider
Plenary session discussion:

The value proposition for the clients and the financial institutions
and banks for digital transformation
Time: 10 minutes

Is traditional financial services industry facing existential crisis?
The traditional financial services industry is impacted by a confluence of factors and the emergence of
digital credit and FinTechs
Limited innovation Generic products that lack
from within the user-level personalization
industry
Lack of customer focus

amidst the significant
Complex and
cultural shift
inefficient financial
processes
Limited digital
adoption or digital
self-exclusion
Ineffective customer
Limited use of data relationship
analytics to refine management resulting
products and enhance in a high churn of
efficiency of processes performing clients
3
Digital transformation is impacting the entire financial sector
Digital money Digital invoices Digital Digital global

origination payments
▪ Drivers: ecommerce, ▪ Drivers: business need ▪ Drivers: market need, ▪ Drivers: global trade,
convenience, government and possibility, consumer demand, ecommerce, travel
action, transport, money government push, e- financial advice
transfer ▪ Examples: Earthport,
invoicing companies,
▪ Examples: CompareAsia, Payoneer, Remittly
▪ Examples: Ant Financial, factoring, supply chain
ComparaOnline,
PayTM, bKash, mPesa, finance
BankFacil, Kabbage
transferwise ▪ Examples: invoinet,
eFactor, FIT, Trulia
Digital loans Digital identity Digital cash Global capital

transfers markets
▪ Drivers: data,
▪ Drivers: digital adoption, ▪ Drivers: government ▪ Drivers: global returns,
automation, identity,
transactions, KYC efficiencies, policy, efficiency
convenience
requirements ▪ Examples: Net1, ▪ Examples: Zeroflows
▪ Examples Kreditech, ▪ Examples: India, PagaTodo, Fino
Kabbage, Moni, M- Pakistan, Kenya,
Shwari and so many Tanzania
more
Source: IFC studies
3
Traditional financial services industry needs to re-invent itself
For traditional financial services industry to remain relevant, it needs to transform digitally and
adopt technology. To do so, it needs to:
Reinvent its Cultural change and adopting innovation mindset
culture
Meet users’ Users expect affordable pricing, quick and easy recourse, understanding of
expectations the services, efficient processes, and human touch
Manage time Leverage relationships, data, innate customer awareness, and local
and space understanding to develop a high-tech and human touch model
transitions
Anchor on user User experience built on mimicking behaviours; intuitive services;

experience managing adoption bottlenecks; design thinking; and personalization
Manage Manage institutional risks (technology, partnerships, operational), and

emerging risks client-level risks (pricing, agent risks, fraud, recourse, and data privacy)
3
Impact of digital financial services
Enhanced products and services - opening accounts, Reduced Transactional cost - through
mobile top-ups, bill payments, savings, credit, and receive strategic partnerships
pension insurance and remittances
Simpler, faster access

Expanded product processes
suite Value to the
customer
Trust and risk issues
Opportunity to
innovate
Increased efficiency - disbursements ,
Value to the increased client convenience and
Increased loyalty financial security
institution
Reduced operational
costs Increased outreach
Reduced error rates
Source: Center for Financial Inclusion

Digital financial services for financial institutions
To exhaustively discuss DFS for financial institutions, we will look at it from 4 broad categories:
Product Process People Technology
• Increased innovation • KPIs –for DFS product • Institutional change • Technology Devices
(innovative products) and people offering management required –PoS, Mobile
• Increased product DFS product/service • Roles and • Communication
and service sales • Measurement of KPIs responsibilities of key Channels –STK, SMS,
• Speedier product • Monitoring and personnel in USSD, IVR, NFC
development Evaluation integrating DFS to • Platform–Front end
• More competitive • Audit financial institutions applications, Back
products developed end applications,
• KPIs around integrating
developing products applications,
• Authentication
modules –security
system
Source: Big Data, Small Credit, Omidyar Network

Microfinance Barometer, 2016
Microfinance goes Digital, Next Billion

Digital transformation into the future – Riding on key trends
Universal access to Wi-Fi Digital usage crossing generations

Internet of Things may to create pay- Mobile Internet use increasing
as-you-go mechanisms to create Evolving
Technology Digital culture spreading worldwide
financing for services customer
trends across industries
Full penetration of smartphones and
behaviors
tablets Emerging markets increasingly adopt
mobile banking
Convergence
Explosion of cloud services
Changing
branch
networks
Branches activity decreasing

Less traffic than on mobile
Fewer but bigger branches integrated in the customer
experience embedded with digital (flagship, showroom)
Source: Strategic Choices for Banks in the Digital Age, McKinsey Branches take up the role of specialized services
Going Digital: The Banking Transformation Road Map, A.T. Kearney

Digital transformation: Case of Equity Bank (1)
Brick and mortar banking Digital banking
1984-1994 1994-2004 2005-2010 2011-2015 2015-2024
Equity 3.0 expanded -

Digital disruption
Equity 3.0-Digitising
Equity 2.0 - Creating distribution
Equity 1.0- - Market-led wealth
Equity 0.0- approach with clients at
Equity Building the center
Society
• Listed on Nairobi Stock Exchange

• Licensed as commercial • Introduction of agent banking
• Provider of • Launch of Equity Investment Bank
bank • Restructured to Equity Group Holdings • Development of payments
mortgage financing • Launch of Equity insurance
• Helios invests $187m • Begins operations in South Sudan, integration platform
• Declared Agency
• Use of mobile banking Tanzania, Rwanda • Shift from agent assisted to
technically • Begins operations in South Sudan
units to take services to • Launch of Mobile Virtual Network self initiated transactions
insolvent in 1993 • Equity Group Foundation-Social
rural areas Operator (MVNO)-Equitel
impact arm of EGHL
Source:: Equity Bank Group Annual Reports from 2005-14, Equity Group
Digital transformation: Case of Equity Bank (2)
Equity Bank has the largest deployment of banking agents in Kenya. Some key facts and figures include:
Growth in customers and profits (2005-18) Transactions (2005-18, millions per annum)
513.0
28,500 Mobile
26,900
23,958
22,364 22,777
19,004 Branch ATM Agent Mobile-based E-Banking

346.0
17,419
12,834
13,200
9,045 11,400 11,800 227.4

9,658 10,040
8,407
7,838
5,022 5,278 7,151
5,908 Agency
2,378 4,371
500 1,102 3,296 ATM
1,840 94.3 Branch
1,014 70.0 80.0
556
54.0 65.0 E-banking
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 33.4 36.0 32.5 40.0
35.0 34.0 29.0
20.1 26.0 28.0
- 7.8- - - 0.1 0.8 1.8
2012 2013 2014 2015 2016 2017 2018
PBT (Mn. Ksh.) Customers (Thousands)
Shift from agent-assisted to self-initiated transactions
FY 2017 Digital ecosystem approach

FY 2018
Branch Branch Others
Others
4% 5% 3%
3% Save Loan Chama Merchant Biller PFM CFM IPM
ATM
ATM
5%
App Pay Net Biz API

4%
Agency
12%
Source:: Equity Bank Group Annual Reports from 2005-18, EquityAgency
Mobile (Equitel
Group
15%
Mobile
(Equitel and
App)
Equitel Online
and App) 72%
77%
Equity 3.0
Source:: Equity Bank Group Annual Reports from 2005-14, Equity Group
Business case for digital transformation
Business case for digital transformation
Enhanced customer base, customer engagement, product usage and

financial inclusion
Refined decision making
Operational efficiency
Client acquisition and diversification with value-added services
Cost reduction and improved earnings
Enhanced customer loyalty and retention
Additional revenues and greater savings mobilisation
Source: IFC case studies, 2017

There is a business case in digital transformation
Maximum annual cost to serve one customer* Customer growth

Emerging Markets, $ Actual IFC client, %
222%
80%
135
20
Traditional Bank Branch Digital

H1:2014 H2:2014 H1:2015 H2:2015 H1:2016 H2:2016
Cost-to-income ratios New sources of value

Traditional vs Challenger FIs including digital challengers, % Africa & Middle East, $
Cost-to-income ratio
$
differential
1,098
18%
$ 448
New deposits, trillion New loans, billion
Source: IFC case studies, 2017
There is a business case in digital transformation (contd..)
Potential opportunities
Innovative new offers by -13 +5 Increased revenue from innovative new

competitors offers and business models
Margin compression -16
Increased revenue from new products,

distinctive digital sales and using data to
+10 cross sell
+30 Lower operational costs from

automation/digitization and
transaction migration
Increased operational
risk -6
Total -35 +45
Source: McKinsey Studies, 2017; Impact from digital transformation, % of net profit
IFC’s 4-year longitudinal study reports:

Indirect income through savings mobilization remains one of the most important opportunities for income
Using agents can reduce the cost of doing a transaction by about 25 percent compared to branch
transactions
The agent networks in the study were not as efficient as their MNO counterparts, and tend to do fewer
transactions for fewer customers; however, they do have a much higher transaction value than initially
expected and their activity rates are higher than for MNOs
Considerable increase in share of the total customer base registered for the usage of agent banking
Innovative approaches combined with clever product and service offering can enlarge direct channel
revenues and boost the recognition of the DFS channel
Source: IFC studies

$x00,000
$x0,000
$x,000
$x00
$x0
Cashless
Traditional
branch Branch in
store ATM
Agent with
POS terminal Agent with
mobile No
agent
• Technology is fundamental to DFS and to achieve low and variable cost for distribution of
financial services
• However technology needs to have several critical attributes

Is the business case realized in a short span of time?
Our experience says that:

While institutions have managed to achieve greater outreach, improve operational efficiency, and
improve the customer experience, it takes time to realize the benefits of digital transformation
Remember that digital transformation is a journey, it is not an end goal in itself
A few myth to dispel:

Digital transformation solves all organizational problems
Digital transformation is “cool”. Every other organization is transforming; so we should also do so

Every process, product, system, and business model needs to be digitized
Technology for digital transformation should be disruptive and cutting-edge
Digital transformation yields results immediately

To achieve the business case objectives, the key considerations include
Digitally delivered financial services must reach scale to:

Reduce unit cost of digital transactions
Enable change of infrastructure and processes to drive new business and / or to reduce costs
Reaching scale is difficult, and even when it is reached, objectives may not be realized
because:
High operating costs of digital financial services (at least initially)
High touch model

Large fixed costs of branches
Source: OIUK studies

Case study: FINCA Tanzania
Early 2015: Low End 2015: Higher But, total unit costs increased: no
volume, high unit volumes, reduced unit increase in total # transactions, or
costs cost change of cost structure
2016 =
forecast
Source: FINCA Tanzania

Lessons from digital transformation
Cost efficiencies from digital channels are not immediate

Agent channel has lower unit costs than branches only when it achieves scale (up to 30% cheaper)
Digital channels will be more successful at high growth MFIs where the digital channel can increase
transaction volumes
MFIs with lower growth need to: reduce branch costs, or refocus branch activity on higher income sales
and transactions
In summary, digital transformation can and will bring increased benefits to MFIs, but the
journey may be harder and longer than expected!
Source: OIUK studies

Session 3: Strategic planning for digital
transformation
June 2019
Session objectives
Understand why transformation is necessary
Identify different DFS strategic options available for banks and microfinance institutions
Learn how to consider the various strategic choices and develop appropriate strategy
Session outline
Why digital transformation?
Strategic options and choices for digital transformation
Key consideration for strategic design for digital transformation

Opportunities for partnership, data analytics, and technology

Strategic planning for digital
transformation
Call out

What is the importance of DFS strategy for financial institution?
Time: 5 minutes

Elements of digital transformation strategy
Vision Three fundamental

questions to define
strategy
Digital
Strategy
Plan Action
Why do you What
How can you
need to opportunities are
transform?
transform? there?

Building a digital transformation strategy
Digital Transformation
Assess situational Develop an

How? Define Rational context and define Identify Actions implementation
objective Roadmap
Processes Products
What?
Channel (delivery and distribution
People
channel)
Questions to Why is this strategy What is the desired

What needs to be done to Which areas will be
make the strategy a affected? Who needs to
ask developed? outcome?
success? do what?

Strategic objectives for transformation
Why transform?
? Additional revenue
Financial institutions
must identify ? Improving operational efficiencies
strategic objectives
for digital
? Maximising customer value; expanding outreach
transformation that
fits with the
organization, driving ? Increase effectiveness of operations
them to invest in the
business and rally ? Competitive pressures
people to action
? Emerging segments, market opportunities
How does the transformation objectives align with strategy and business model?

Road map for digital transformation
Digital transformation - A generic

road map
Digital readiness
► To assess where the institution currently is with respect to the digital transformation
review
Digital strategies and

► Formulate a strategy to determine the future strategy and how does the institution get there
road maps
Digitizing cash ► Development and deployment of agent banking
Digital design of Digital design of Digital design of

products and services processes user experience
► Development and implementation of ► Development and implementation of ► Designing for specific user segments based
digital solutions digital processes on digital capacities and devices
Digital architecture
► Diagnostic based on existing situation and ► Financial technology which can facilitate ► Integration of systems to deliver the
digital design review the digital vision digital solutions

Exercise 3.1 Equity Bank’s digital transformation
Based on the review of the case study of Equity Bank, discuss how Equity Bank managed to use
technology to:
• Strategy design for digital transformation,
• Expand its scope to offer financial services to other segments than it traditionally served,
• Increase its scale and outreach,
• Enhance efficiencies of operations, and
• Manage risks effectively.
Time: 20 minutes

Strategizing digital transformation
Digital transformation entails focus across 6 areas
• Customer centric products and services delivered digitally

• Improved and proactive risk management by
• System based parameters to identify behavioural patterns
leveraging shared risk platform
• Analysis of buying patterns and product usage
• Strong risk monitoring and reporting culture
• Strong customer analytics
Customer
Centricity
Omni
Risk • Strategies Omni-channel
• Visible executive Channel
Management presence
management Presence
• Optimize all distribution and
sponsorship to digital
delivery channel
transformation
• Robust IT Optimized
infrastructure And
Organizational Re-engineered
• Aligned and strategic
Alignment Processes
partnerships to
deliver on the Customer
promises Engagement
• Efficient processes through end to end
digitization of processes
• Enhanced customer engagement and retention to increase wallet • Enhanced productivity and staff leverage
share
• Digital brand, enhanced reach to customers through use of multiple
channels

Opportunities for partnership, data
analytics, and technology
Why partner?
• High capital outlay

• Limited experience
Minimize Risk and • Product design
Exposure
• Technology/infrastructure
Leverage • Delivery channels
Competitive
Advantages • Economies of scale
• Regulatory compliance
Compliance

Partnering with FinTechs: Reasons and benefits
AXA is partnering with MicroEnsure to extend insurance

to new customer segments in emerging markets. Prior to
the partnership, AXA’s reach in emerging markets
Gaining access to extended only to the wealthiest 5 - 10% of customers
a new segment
ICICI Bank is a partnership with Stellar to build a
blockchain-enabled payments network. Stellar provides
ICICI Bank with an open-source online ledger, or
Creating new blockchain, designed to oversee the movement of money
offerings for
existing
customers
Janalakshmi Bank is working with EFL to extend credit
access to thin-file entrepreneurs in India. EFL is a U.S.-
based fintech that builds risk assessment models using
Data collection, psychometric data to assess creditworthiness among
use, and thin-file customers
management
Deepening
customer BBVA Bancomer in Mexico partnered with Juntos to
engagement and increase customer engagement and usage. Enabled by
product usage artificial intelligence, Juntos sends tailored text
messages to customers, reminding them to save and
become active users of bank services.

Leverage technology to drive financial services
Opening of platforms and application

programming interfaces (APIs) Use of Alternative Data
Horizontalization: Disaggregation of the User-level customization

vertical value chains and behavioural recognition
Session 4: Product innovation for digital
transformation
June 2019
Session objectives
Appreciate the benefit of understanding client/market
Incorporating market and client insights in product innovation
Examples of product innovation

Product evolution cycle
Session outline
Designing financial services with the client in mind
Market segmentation in product design and innovation
Product/service development approach

Innovations in product and service design
Product roll out map

Considerations in designing client-
centric financial services
Call out

What is your understanding of the term “customer centricity?”
What is the relevance of product innovation/ development to

financial institutions?
Time: 5 minutes

Relevance of product innovation for digital transformation
There exists significant opportunities for product level innovation as the existing products
Opportunities for are not sufficient, hence clients are forced to take up semi formal and informal products
innovation as formal financial products do not meet their needs adequately
Leverage existing Financial institutions can benefit from leveraging existing infrastructure and ecosystem
infrastructure and
ecosystem players players to deliver new products and services to clients
Financial institutions may use existing digital data trails to enrich their assessment of
Existing digital data client needs, profiles and segments to innovate products and services
trails
Clients seek to derive additional value from their financial service providers, and in many
Need for value add cases are willing to pay. This brings opportunities to enhance clients’ capabilities as a a
way of innovative services bundled with the products offered
Digital clubbed with an analysis of behavioural patterns may lead to hyper customization
Hyper customization of products and services on the go to meet the specific needs of clients

Attributes of client-centric digital products/ services
Attribute Features
Ubiquity Available to all in different locations
Simplicity Ease of use and interaction with the user interface
Security Must inspire confidence among clients and ensure they feel safe
Cost effective Must be competitively priced compared to alternatives
Immediacy Aspect of being real time/
Reliability Customers should be able to access services whenever required with the
platform being capable of delivering as expected
Scalability Innovations must be built to allow for scale up if it is to be sustainable

Developing client-centric digital products/ services
Address pain points rather than Through market research and customer surveys,
digitizing use cases establish pain points that digitisation can address for a
customer pool
Data
Insights
Customer Analytics
Embrace customer Centricity, Data Analytics
and Deliver on a Digital Platform
Digital
Products and services Time to change
Evolve with the changing customer needs

Product or service development cycle
Concept and
Research issue Market research prototype development Pilot test Roll out
Stage 1: Identifying Stage 2: Stage 3: Refining Stage 4: Pilot Step 5: Roll out
a research issue Understanding concept into the test and and operational
clients’ needs prototype. Testing the refinements to integration
product prototype products

Call out

How client-centric is your organization?
Time: 5 minutes

Customer-centricity
Financial institution Financial institution

focuses on long term thinks deeply about its
relationship and strives to 1 Inspired customers business and
make a connection with personal lives and
customers by providing creates new ways to
delightful experiences. add value before they
ask.
2 Engaged
Financial institution Financial institution

knows its customers, the
3 Driven regularly receives
products and services customer feedback and
they buy, and can works to improve
optimize marketing, sales customer satisfactions
Focussed through appropriate
and customer service 4
activities to generate product and service
more profit. offerings.

Marketing mix to develop product concepts
Post market research, the below marketing mix is useful in designing appropriate products:
People
Product How does the financial institution
The features of the loans or accounts
1. 5. provides service? Who is responsible?
How do they treat customers?
Place
2. 6. Processes
Where and how you access/get the
How long it takes to access services?
services – convenience. Does MFB/Bank
How easy or complicated the
ease access through alternative channel?
processes are?
Promotion
Physical Evidence
The way financial institution 7.
communicates its products/ services –
3. The appearance of product documents
and locations where services are
Does it appeal to target segment?
received
Positioning
Price Their values/what they believe in;
The cost of services.
4. 8.
their image. What is the client’s
perception of the institution?

Exercise 4.1 Big bang or evolutionary?
In groups of three, discuss:
Should the product development be a big bang or an evolutionary approach?
The graph below shows how Safaricom developed products for customers in Kenyan Markets
REVENUE
M-Shwari
Lipa na Mpesa
Lipa Karo na Mpesa
Send money home
TIME
Time: 10 minutes

Session 5: Process re-engineering for digital
transformation
June 2019
Session objectives
Evaluate the need to automate financial institution’s processes
Appreciate the benefits therein
Session outline
Why process re-engineering?
Digitizing and automating front-end processes
Digitizing and automating back-end processes

Why process re-engineering?
Call out

What do you understand by the term Process Re-engineering?
Time: 5 minutes

Business process re-engineering and digital transformation
Business Process Re-engineering (BPR) aims at cutting down enterprise costs and process redundancies
on a much broader scale. Reengineering attempts to restructure or wipe out redundancies, and remodel
processes differently
Front- and back-end processes such as customer registrations, loan applications, updates, data
collection/analysis, marketing and communication processes can be digitized
Process re-engineering serves as an entry point for FIs to provide digital services and products
Process re-engineering is not synonymous to digitization. However, some form of digitization goes a long
way to re-engineering processes

Exercise 5.1 Benefits of digitizing processes
In buzz group with your neighbor, discuss:

What are the benefits of digitizing Bank/MFI processes?
Would digitizing processes have an impact on productivity, efficiency, and

portfolio quality? If yes, how?
Be prepared to share your thoughts in a plenary session
Time: 5 minutes

Benefits of digitizing processes (Analysis by Artoo – Case of Ujjivan in India)
A customized software for remote

loan origination and digital field The software analyses the data on
application developed by Artoo for 800+ data points and verifies against
Ujjivan Ujjivan’s requirements
Data and KYC details Loan decisions relayed to

collection done on field the prospective borrower
using a tablet
Productivity Efficiency Origination Portfolio quality
❑ Productivity up by 51% ❑ Turn Around Time (TAT) is a ❑ Origination cost per customer ❑ Portfolio quality increases
❑ Error reduction less by 70% key differentiator in goes down by 60% considerably
❑ Data entry time less by 50% customer’s minds ❑ Improved productivity at all ❑ Chances of selection of bad
❑ Processes 1.5x as many ❑ TAT down by 75% as a result levels clients reduces
loans ❑ Real-time data availability ❑ Elimination of costs such as significantly
❑ Enables low-caliber field and fewer iterations courier and data entry vendor
staff to perform high- ❑ Borrower gets loan on time ❑ Profitability, scope of delivery
quality work of loans at lower interest rate

Exercise 5.2 Digitization case studies
In groups of 4, review the case studies.
Group 1 and 2, Case study 1: Sinapi Aba’s Transformation to a Deposit taking savings and loans company
Group 3 and 4, Case Study 2: Buusaa Gonofaa’s Transition from Credit only MFI
From the case studies, identify:
What was the motivation for digitization?
What digitization took place? Product/Process/Channel
What channel(s) was/were adopted?
What investments were required?
Which services are offered post digitization?
What challenges did they face in the journey?
What is the benefit to the institution?
Time: 10 minutes

Digitizing processes
Digitizing processes – What is required?
Back-end automation capability (MIS or core bank system)

Regular connectivity (Internet/mobile phone) with loan officers and branches
Clear definitions and descriptions of business processes

Investment in IT interfaces, tablet/mobiles/PDAs/POS-terminals for staff and cards
Training of field staff and to some extent clients
Strategic partnerships for process digitisation

Partnerships in digitizing processes
Type of Partner Role

Document management systems’
Automate document management. E.g. COSEKE
firms
Process automation firms Automate processes and work flows. E.g. Artoo
Provide the past credit history of a borrower. E.g.

Credit bureaus
Metropole, CIBIL
Predict repayment behaviors based on psychometric
Credit assessment companies
assessment. E.g. EFL

Digitizing processes
• Lead management • Lead generation • Financial analysis • Loan repayment • Authentication

• Complaints and • E-KYC • Loan utilization • Bill payment
Front-end redressal • Facility application checks • Savings in/out
processes • Account opening • Targeted marketing • Facility renewals
• IVR/SMS responses
• Geo tagging
Client
Marketing and Appraisal and Controls and risk
relationship Transactions
on-boarding analysis management
management
Client Appraisal
Work flow Controls and risk
relationship and Transactions
management management
management analysis
• Lead management • Documentation • Credit scoring • Loan disbursement • Risk mapping –
Back-end • Segmentation and filing • Credit bureau • Loan repayment concentration,
processes • Targeted customer • Responsibility checks • Bill payment portfolio, single
service sharing • Financial analysis • Savings in/out borrower
• Automates offers • E-approvals • Loan utilization • Facility renewals • Control breach
for valuable • Schedules and checks alerts
customers reminders

Use of digital field application for group loan – Case from India
GROUP FORMATION
AND APPLICATION
Visits prospective Takes images of Trains clients on

Fills application
group with a tablet KYC documents group loan aspects
Credit Officer
GROUP RECOGNITION
Visits trained group with a Conducts the group recognition Advises Credit Officer if the
tablet test group can be offered a loan
Manager
Group can be recognized or may be asked to go for another round of training
Informs Credit Informs client

LOAN APPROVAL
Views group loan

Approves loan Officer automatically on
application
automatically SMS/IVR
Manager
Paper less system, print out can be taken at any stage for required signatures
87 Source: Artoo Analysis All rights reserved. This document is proprietary and confidential.
Impact of digitization on group lending
Positives Negatives
Reduction of transaction cost and improved Field officers (FOs) feel they are losing touch with members
convenience- because of the lack of face-to-face contact
Gathering client data improves It has become harder to solicit character references from
Better avenues of assessing a client’s credit group members
worthiness
Distribution of account statements from house-to-house is
Digitization provides solutions around time-consuming for FOs, in lieu of writing in passbooks at
accounting, human errors and insecurity of
meetings
carrying cash to the financial institutions
Use of multi-authentication of mobile group The opportunity to inform members of changes in policy or
savings solutions minimizes the possibility of new services has reduced as group members do not meet
some personnel taking fraudulent advantage
of their positional powers that is common in Attendance or non attendance of group meetings often
manual paper based transactions serve as an early warning sign of a member intending to
leave without settling their obligations – this channel of
Introduction of digital loan disbursement and
collection of instalments from the group communication is gone
members which is convenient to group Meetings enabled a new FO to meet all group members at
members
once, but now new FOs need individual introductions
instead
Use of digital field application for individual loan – Case from India
Visits customers Takes images of Generates credit

APPLICATION
Fills application
with a tablet KYC documents bureau reports
Integrated with credit bureau to automate credit bureau reports in the application
Credit Officer
PRE-SCREENING
Checks with list of existing Advises Credit Officer if the

Assesses profile
and rejected clients client profile is suitable
Credit Scoring Module

Client can either be rejected, asked for more information or selected for credit appraisal
Collects all the

Views all data Visits clients with Appraises the
APPRAISAL
data from the

captured tab client
client
Credit Team Paper less system, print out can be taken at any stage for required signatures
Informs client
Views application Approves or
APPROVAL
Structures the loan automatically on

and appraisal rejects loan
SMS/IVR
Approving Authority
Paper less system, print out can be taken at any stage for required signatures
89 Source: Artoo Analysis All rights reserved. This document is proprietary and confidential.
Session 6: Delivery channel and distribution
design
June 2019
Session objectives
Understand the delivery channels and distribution strategic choices
Make sound decision on the way forward on delivery and distribution design
Session outline
Channel evolution
Distribution strategy design
Leveraging technology in delivery channel

Incorporating new digital channels to customer journey
Augmenting sales and marketing through use of digital means

Delivery channel and distribution
model design
Ways customers may connect with the institution
Smart ATM
Paybill, buy airtime,
deposit money, ticketing
Agents/in store POS
Carry out transaction on
behalf of bank Mobile Apps
For remote transactions and
alerts
Credit centers
Hub and spoke Unstaffed center
Large branches in high traffic
areas surrounded by small
Channels connected via video to
remote office for credit
automated branches applications
Internet/portal Banking
Video conferencing Connecting customers to
With expert specialist for financial institution through
advice and consultation secure web portals
Touch screen walls

For financial education to
customers

Varying complexity of channels from single to omni channel
Omni-
Single Channel Multi- Channel Cross -Channel
Channel
• Customer experiences • Customer sees multiple • Customer sees unified brand • Customer has a holistic
single touch point touch points acting through many touch points brand experience
• FI has single touch points independently • FI has a single view of customer • FI leverages unified view of
• Channel operations exist in but operate in functional silos customer
technical and functional
silos

What is driving omni-channel evolution? (1)
Evolution
A branch is the typical traditional channel. With the advancement in technology comes other distribution
channels. Some ride on delivery channels like USSD, SMS, App and portal
Other distribution channels include ATMs, internet banking, agency banking, extension/field services,
mobile banking and more recently electronic or mobile wallets
User preference
Customers are continually using more that one retail channel

What is driving omni-channel evolution? (2)
Financial institutions’ needs
Building an
Reduce cost of
effective
Cost reaching to Time consuming
distribution
customers
channel is time
consuming
Customers Convert from

Meet customer preferences are people-intensive
expectations changing People-Intensive business to
overtime to efficient means
enhance reach

Exercise 6.1: Distribution model design
What are the advantages and disadvantages of each of the distribution options shown below?
ATM/Web Mobile
Branch Field staff Agent device
interface device/Apps
Consider these options in terms of their fit to your

strategy and decide on which option you would use for
your institution’s distribution design and why?
Time: 10 minutes

Incorporating digital channels to
customer journey
Customer journey – What are the key stages?
>6
Transactions
1-5
Transactions
Regular User
Client habitually uses
the digital banking
service
Trial
Client tries the
service but
infrequently
Knowledge
Customer
knows the
Understanding steps to
Customer understands transact
how digital finance
Awareness: can be of use to them Regular Users
Client has heard
about digital finance 6 – 10 > 15
Unaware: transactions
10 – 15 transactions
transactions
and knows what it
Client has never
can offer
heard of digital
finance
Onboarding customers – Especially oral customers (1)
Interface design Metaphors of money

Include elements you
want users to learn Metaphors for people’s
(e.g. rupee symbol, money management
3+ digit numerals) and financial behavior,
thus enabling a new
generation of digital
products.
Create image
alternatives for Support 3+ digit
address book numerals with cash
entries equivalents that
users can easily
count
Alternative Financial Education (AFE)

AFE showcased that
Field-test oral icons complex products can
for easy and instant be explained to oral
comprehension Maximum of 5 core customer segments
elements per page. and that it is good for
Lots of white space! business.

Onboarding customers – Especially oral customers (2)
SMS based financial literacy Videos and animations
Hi! It's ARIFU. Reply with

a number to learn for
FREE how to:
1. Save
2. Form or join a savings
group
3. Grow your shares
4. Use Mpesa
5. Use Mpawa
6. Tell friends

Incorporating digital channels to customer journey
NFC application
Complex channels
Internet banking interface
In app
marketing Web portal
interface
Mobile app interface
USSD menus
Basic channels
IVR application
Customer authentication
SMS blast Registration SMS blast
Unaware/Nascent Regular usage/Maturity

Incorporating digital channels to customer journey
3. At this point the

4. This defines full
customers can handle NFC application
Complex channels
cycle for customers
complex channels
In app
marketing Web portal Internet banking interface
interface
Mobile app interface
1. Aim to start from

2. Upon regular usage,
this quadrant
incorporate simpler
incorporating simple
and available channels
channels USSD menus
Basic channels
IVR application
Customer authentication
SMS blast Registration SMS blast
Unaware/Nascent Regular usage/Maturity

Augmenting sales and marketing through use of digital means
Search engine optimization
Complex channels
Email newsletters
CRM
In-app mobile
marketing Personalized content marketing
Social media
marketing Online reviews ATM ads
Radio Mobile friendly websites

Market activation
Outbound calls
Basic channels
Phone calls
Sales meeting
Blogs
SMS blast SMS blast
TV and newspaper
Traditional sales/marketing Digital sales/marketing

Session 7: Risk management for digital
transformation
June 2019
Session objectives
Understand the potential risks for digital transformation for financial institutions
Risk mitigation mechanisms
Discuss lessons from success and failures in regards to risks for digital transformation
Session outline
Why manage risks?
Emerging risks from digital transformation
Risk management framework and approaches for digital transformation of financial institutions
Effective approaches to managing risks for financial institutions

Why manage risks?
Call out
With your partner:

What comes to mind when you see this picture? Share with your partner what you think (a minute a
piece) then share with your group what your partner thinks. Do you have a convergence of thoughts?
Why do you think this is?
Time: 5 minutes
Why manage risk?
Minimize impact of risk Maximize commercial opportunity Assurance for management/

materializing in uncertain areas shareholders
Enhance strategic decision making Lowers future cost of mitigation Understand investment cost
Risk is not to be feared, but to be understood so that it can be addressed.

Emerging risks from digital
transformation
Various risks related to digital transformation in financial institutions
Strategic risk Technology risk Partnership risk Operational risk Financial risk
Regulatory/
Credit decisioning Alternative data
legal risk Political risk Reputational risk
risk risk
Process automation Channel integration Agent management

Product risk Fraud risk
risk risk risk

Emerging risks from digital transformation in financial institutions
Customers Partners
Fraud Risk
Operational Risk, Impersonation, Identity theft, counterfeit, Extortion
Technology Risk
Operational risk, Transaction risk, IT risk, channel failure, user interface Reputation
“Risks” are by-
products of all
Agent Network Risk the other risks
Operational, Liquidity, Theft, Unavailability, Financial losses
Consumer Protection Risk

Data privacy, transparency, poor recourse
Regulatory Risk
Compliance, legal

Call out
In plenary:
What risks do you think your organisation is more likely to run into when going digital and why?
Time: 5 minutes

7Rs risk management framework
• Identification of all • Based on • Tolerate • Develop budgets to

types and subtypes of probability and apply to risk
risk events that may
• Treat
potential impact to • Transfer responses
occur and impact the
DFS implementation rank risks
• Terminate
Ranking or
Recognition of Responding to Resourcing
evaluation of
risks significant risks controls
risks
• Develop tactical • Report risk • Risk mapping –

risk responses performance and concentration,
status portfolio, single
borrower
• Control breach alerts
Reporting and Reviewing the risk

Reaction
monitoring risk management
planning framework
performance

Session 8: Implementing digital transformation
June 2019
Session objectives
Appreciate the digital transformation process in its entirety
Understand project and change management
Session outline
Project and change management
Internal organization and innovation to implement digital transformation
Project evaluation and Return on Investment

Challenges in implementing a digital transformation

Project and change management
Call out
In plenary, please discuss

What does it take to manage the transformation process? At what
stage do you know an organisation is ready for change?
Time: 10 minutes

Project and change management for digital transformation
Change management refers to a structured approach to moving an organization from the

current state to the desired future state i.e. in this scenario traditional to MFI/ Bank
leveraging varying levels of technology
Any change management process involves some form of resistance
Change has to be managed in a structured and controlled manner for the benefits to be
realized
Change management’s process is as follows:
Assess Plan Sustain
Prepare Implement

Call out
In plenary, please discuss

Which considerations are important for project and change
management for digital transformation in your financial
institution?
Time: 10 minutes

Key considerations for project and change management for digital transformation
Alignment to business strategies and objectives

Well articulated expectations of the benefits from transformation and change over both the short and long
term
Clearly defined and agreed upon measures and targets -KPIs

Strong leadership support and change management focus
Effective communication and active stakeholder management (well-defined roles and responsibilities is
the key)
Project and change to focus on improved business functionality and optimize business processes
Partner selection based on capacities, skills and experience of change management
Flexibility in approach
Robust monitoring and reporting protocols

Strong governance mechanism in place
Efficient management of any scope changes to prevent slippages

Engaging key stakeholders and defining the end-vision
Engaging the key stakeholders such as the board and management, policy makers, service providers such
as technology partners, channel partners, and all staff
Defining the end vision collaboratively to bring all stakeholders onboard
Communicate the benefits of digital transformation and its impact to all stakeholders
Addressing key issues such as
• Attaining organizational goals
• Optimizing cost of utilizing technology
• Shift in operations
• Handling anticipated risks
• Managing competition reaction –next steps post digitization
• Monitoring and evaluating progress
• Reporting

Forming project implementation team
A cross-departmental team accompanied by activity for each is formed to ensure technical
inputs and buy in from all major stakeholders
Skill areas Specific activity
• Manages the project

Project Manager • Responsible for reporting and outputs, convenes meetings, assigns tasks to team members, and
represents the team to top management
Channels Manager • Provide technical support on channel related issues in line with the financial institution’s strategy
Information • Setting up and resolving any IT related issues touching on implementation

Technology Manager • Training staff on ICT related aspects of the digitization
Finance Manager • Reviews financial reports to evaluate the viability of the digitization
Marketing Manager • Prepares marketing plan for digitization process and resulting products
HR/Training • Hiring and training staff in line with the digitization project
Operations
• Policies and procedures documentation
Management
Audit and Internal
• Monitoring the digitization process for risks and relevant mitigation strategy
control

Involving employees in change management
Why involve employees in change management?
They are agents of change
The elements of co-design and co-creation
Ownership of the change
Adopting new culture
Go between the institution and clients
How to involve employees in change management?

Communicate! Communicate!! Communicate!!
Challenge them
Link the present with the future
Personalize experience
Incentivize, provide monetary benefits
Celebrate change
Let staff participate to shape the outcome
Stages in digital transformation by financial institutions – Case of process automation
Norming stage
Adaptation and integration stage
Full-fledged digital institution

• FI embarks on digitizing basic • Automation in FI at advanced • The desired state - all
customers-facing activities e.g. loan levels automation is aligned to FI’s
origination process • FI centralizes planning for further digital vision
• Most back-end operations are still automation • There is transformation of the
manual entire range of processes
• FI sets up a department to
• FI allows departments to coordinate and regulates the • Digitization evident across the
implement limited independent several integrated units entire bank systems offering
digital initiatives core products
• The Automation department
• FI faces challenges in managing the
focusses on creating synergic value • Simultaneously digitization going
individual digital initiatives by
various departments for the entire organization forward to cater for new-age
customers
• FI opts for a coordinated approach
for collective bargaining edge
• The internal consolidation of
digitization efforts begins
• Results in overall value-addition to
customer processes

126

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Digital transformation for

Evolution of digital financial services

3 All rights reserved. This document is proprietary and confidential.

Access to and use of formal financial products and services(including

Credit Savings Remittances Insurance Mobile Money based

5 All rights reserved. This document is proprietary and confidential.

In buzz group with your neighbor:

Time: 5 minutes to discuss in groups

6 All rights reserved. This document is proprietary and confidential.

User centric Design

Policy and regulation

Marketing and distribution

7 All rights reserved. This document is proprietary and confidential.

8 All rights reserved. This document is proprietary and confidential.

Automating and digitizing a

Technology can be used

9 All rights reserved. This document is proprietary and confidential.

Potential opportunities Potential threats

10 All rights reserved. This document is proprietary and confidential.

Digital financial services

DFS providers support services Use cases

12 All rights reserved. This document is proprietary and confidential.

Users and Interfaces Players

Cash-in Cash-out network Utility companies,

13 All rights reserved. This document is proprietary and confidential.

15 All rights reserved. This document is proprietary and confidential.

In three groups, please discuss:

Ways in which digitization can evolve processes, channel, technology,

Time: 10 minutes to discuss in groups and presentation

16 All rights reserved. This document is proprietary and confidential.

Digital Financial Services

Traditional Financial Services

• Rigid • More agile and versatile functionality

• Seamless on-boarding process

17 All rights reserved. This document is proprietary and confidential.

• Lead management • Lead generation • Financial analysis • Loan repayment • Authentication

18 All rights reserved. This document is proprietary and confidential.

Digital Financial Services

• Exponential in growth in traffic and

• Analytics – alternative credit

19 All rights reserved. This document is proprietary and confidential.

Branches and Web and

API API API

Back End Core Banking System

20 All rights reserved. This document is proprietary and confidential.

Touch screen walls

• Product design – how easy or complex is the product to use

21 All rights reserved. This document is proprietary and confidential.

• Remote product offering to • Introduction of additional • Products sophistication,

22 All rights reserved. This document is proprietary and confidential.

Spend USE CASES Save

23 All rights reserved. This document is proprietary and confidential.

24 All rights reserved. This document is proprietary and confidential.

Having understood the journey of evolution, how do you see

25 All rights reserved. This document is proprietary and confidential.

Singular goal is to make banking and financial services simpler through:

26 All rights reserved. This document is proprietary and confidential.

Business case for financial institutions’ digital transformation

28 All rights reserved. This document is proprietary and confidential.

Plenary session discussion:

30 All rights reserved. This document is proprietary and confidential.

Lack of customer focus