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2016

Staying top of mind during the age of analytics

What well cover today:


1. The state of the industry
Mobile, branches, millennials

2. Insights from thought leaders


Credit cards, big data, blockchain

3. Core banking topics


Payments, lending, investments

Lets look at the state of the industry


Banking is at an inflection point.
The future holds big wins or
rapid failure depending on the
choices financial institutions
make today.

Silicon Valley is coming. There are hundreds of


startups with a lot of brains and money working on
various alternatives to traditional banking.

- Jamie Dimon, CEO of Chase

Fintech is
chomping
at the
fringes.

Investment
in fintech
has
ballooned

as the
financial
industry
consolidates.

The rise of passive investing threatens


investment bank revenue.

The rise of passive investing threatens


investment bank revenue.

Big changes are


still to come

Up to half of the world's banks will disappear


through the cracks opened up by digital disruption
of the industry.
- Francisco Gonzlez, Chairman and CEO of BBVA

Technology is changing how companies are


organized and run across all industries, and ours is
no different.
- Brian Moynihan, CEO of Bank of America

We could go the way that file transfer technology


changed music, allowing new businesses like
iTunes to emerge.
- Michael Harte, Chief Operations and
Technology Officer at Barclays

Who saw Uber coming on so quickly? ... Its a safe bet that the
thousands of cab drivers in big cities didnt have an inkling of
how fast Uber would disrupt their traditional business.
- KPMG

You probably never thought of Uber as an acquirer


of small business bank accounts, but if youre an
Uber driver and Uber can give you a debit card that
enables you to get paidthen

why would you go to
a bank branch to open an account instead?
- Brett King, author of Breaking Banks

Consumers seek easy solutions.

Mortgages at
a Click of a
Button
Quicken Loans Super Bowl ad for
mortgages at a click of a button

Financial institutions
are changing their
game plan

They know they need to focus on profit

Theyre investing less in branches

and more in digital.


$131 billion: Total IT
budgets in the retail
banking industry in
2015 a 4.3%
increase over 2014.
Ovum Research

Technology investment skyrocketed


from fourth priority in 2014 to first
priority in 2015.

- Temenos

Branches continue to be a burden

Branches continue to be a burden

Users want a
better digital
experience

38% of consumers have


reduced how often they bank
somewhere because of a
poor digital experience.
MX Consumer Survey

Consumers
are getting
increasingly
picky

What consumers crave from digital


1.
2.
3.
4.
5.
6.

Monitor all accounts in one place


Anywhere, anytime
Move money when and how they want it
Security
Make it easy, make it work
Being able to view and do (action it)
- Javelin Strategy & Research

The focus should be on advocacy

71% of consumers believe


their relationship with their
bank is only transactional.
- Accenture

Its clear that the best path forward is advocacy


adding real value that enriches lives and
overshadows any rival experience
that competitors provide.
- Javelin Research

What to look for


in 2016
1. Fintech + FI partnerships

We have a whole team of people helping fintech


companies be successful, and we think thats a big
area for growth for us for the coming years.
- Gary Becker, CEO Silicon Valley Bank

Throughout 2016 you will hear about banks


creating accelerator startup funds, co-investing with
young, ambitious entrepreneurs.
- David Horton, Head of Innovation at
Synechron

2016 will see more banks partnering with startups in


a quest to get to market faster than their legacy
systems currently allow.
Louise Long,Head of Human-Centered Design
at Nab Labs

What to look for


in 2016
2. Blockchain

The biggest idea in banking right now is


blockchain technology.

- Brad Leimer, Head of Innovation for


Santander Bank

Suits are replacing hoodies and ripped jeans at


blockchain conferences.
- Mark Buitenhek, Head of Transaction
Services at Dutch bank ING

You should be taking this technology as seriously


as you should have been taking the development of
the Internet in the early 1990s.
- Blythe Masters, CEO of Digital Asset Holdings

What to look for


in 2016
3. The Age of Analytics

We believe we are entering


the 5th era of banking
The Analytics Age

The Digital Age


The Casino Age
The Diplomatic Age
The Baronial Age

Big data is the future. Will banks crack the code?


Netflix, like Amazon, is a flywheel that keeps
spinning faster: As it gets more subscribers, it gets
more data and more money to fund more content,
which in turn helps it bring in more customers, and
on and on, ever faster.
- Farhad Manjoo, NYT Columnist

2016 will be the year when data and analytics finally


get a decent, well designed front-end.
- David Horton, Head of Innovation at
Synechron

Contextual data analytics will introduce more


intelligence into each customer contact, laying the
groundwork for augmented intelligence towards the
end of the decade.
- Chris Skinner, author of
Digital Bank

Remember when the question was: Where do you bank?


Not any longer. Now, its more likely: How do you bank?
- KPMG

mx.com