International Keynote presentation @ FST Media, Melbourne, Australia Future of Banking and Fintech (Sharing insights from my personal journey)

1. Future of Banking and Fintech1
Future of Banking and Fintech
Shailesh Grover, MD Research & Development
(Insights from my personal journey)
twitter: @sgr0ver

2. Future of Banking and Fintech2
What’s changing
Agenda
01
02
03
04
05
Why Incumbent banks
need innovation
Insights: Use Case #1
Insights: Use Case #2
Open Innovation

3. Future of Banking and Fintech3
“At the current churn rate, 75% of the S&P 500
companies will be removed from the index by 2027”
Yale professor Richard N. Foster, co-author of Creative Destruction

4. Future of Banking and Fintech4
49%
Less than half of the customers trust
the banks that they are currently with
58%
Do not believe that
banks have their
customers needs at
heart
51%
Just over half say their
bank makes managing
money simple
22%
More than one in five say that
their bank does not
understand their day to day
financial needs
Britons still have a very low opinion of banks, seven years
after the financial crisis of 2008
Customer dissatisfaction

5. Future of Banking and Fintech5
More and more people across the globe are using digital to
fulfil their day to day needs - including banking
Digital shift
82% 74% 33% 69%
Regularly fulfil their banking needs
digitally today
Preference
Would trust a digital only bank
Trust
Regularly visit a branch
Physical channel
Consider switching to a digital bank
Loyalty

6. Future of Banking and Fintech6
By 2025, 3 out of every 4 workers
globally will be a millennial
Millennial workforce
The millennials check their smartphones
43 times a day, on an average
Digital Natives
Communicate via social media, share
everything and show little loyalty
Social
By 2018, the millennial generation will
have the highest spending power
Spending Power
Comfortable with the security and convenience
of mobile payment, but confused by choice
Comfortable with mobile money
The future consumer has a very different set of
behaviour attributes that will inform the future of FS
Millennials driving the agenda

7. Future of Banking and Fintech7
Looking for 24x7 access, instant gratification, full
transparency and fee free products - all via their channel of
choice - MOBILE
Millennials changing behaviour and
expectations
Source: The Millennial Disruption Index

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“Banks have to be comfortable with being
uncomfortable”

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Merely changing the floor colours, introducing jeans and
putting a few game tables is not good enough to change the
culture
Corporate Innovation Theatre
Source: CB Insights

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Learning first hand about customer behaviour, needs
and wants
A day in the Customer’s life

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Focus on the experience the customer will go through
rather than just the product delivery
End-to-end Experience

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Use Case #1 Learnings

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Best Finance app with 4.5 customer ratings
Mobile Banking

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Offer digital knowledge, solutions, alternatives and support to colleagues,
customers & community groups. #DigitalEagles
Digital Eagles
Source: http://barclays.co.uk/digitaleagles

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Source: https://digitaldrivinglicence.barclays.co.uk

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Biggest, most active branch
Digital
Digitally Active Users Weekly logins Weekly payments & transfers
10m 31.3m £6.2b £42.6m
Weekly lending value
10% 31% 18% 50%YOY
Source: twitter.com

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Use Case #2 Learnings

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Customers faced a challenge of multiple Identification and
Verification methods across products and channels
Strategic ID&V

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Making customer Identity & Verification invisible and
frictionless
Innovation in Identity
Biometrics - finger vein, finger print,
facial, voice, ECG, etc.
Who you are
Devices - wearable, smartphone,
tablet, laptop, etc.
What you have
one unique piece of data that
unlocks what you need.
What you know

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Open Innovation

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“Large banks will fragment as they seek to protect the
profitable parts of their operations, leaving behind a zombie
core”, Anthony Jenkins
Fintech creating “value”

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Have critical mass in customer
volumes
Millions of customers
Have access to rich and powerful
data that includes transactions and
more
Information & Insights
Have deep pockets and assets
leverage
No dependency
Have a wealth of experience and
talent
Expertise
The banks have a clear upper hand if they leverage what
they have and partner to rapidly create and deliver value to
existing and new customers
Advantage: Incumbent banks
01 02 03 04

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1500 applications received from 77 countries for 3 London
cohorts
Rise London
Identity
Biometrics
Blockchain
Machine Learning
Prepaid Propositions
Digitally Pure Bank
Continuous Authentication
Data Analytics
Wealth Management
Gasification
Foreign Remittences
Human Resources
Internet of Things

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Multiple partner models evidencing customer stickiness and
value: Invest, Partner, Acquire
Strategic partnership to deliver
“value” to your customer
Source: CB Insights
The NHS has partnered with Tinder in a campaign to increase the
number of young people registered as organ donors.
UBER customers can pick the song they would like to listen to using
their Spotify before they start their ride.

25. Future of Banking and Fintech25
Accelerate innovation in partnership with Customers
and Business
Barclays LaunchPad
Available to anyone in the UK
Open development
Direct feedback on new digital
capabilities
Customer engagement
New technology lab and ring fenced
team within in partnership with the
business
Structure
Digital assets easily transferable
Simple connectivity

26. Future of Banking and Fintech26
Thank You
Shailesh Grover, MD Research & Development
twitter: @sgr0ver