The future is here today – how thechanging expectations are affectingbanking?

Warsaw, December 2015

What is DigitalDisruption?

New Technologychanges the way weinteract and facilitatesnew business models.

This gives two options tothe existing businesses:CHANGE or DIE

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Somecompanieswere not ableto adapt thechange…

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But some ofthem adaptedso well…

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.. and becamethe changeitself !

By comparison,Walmart and BestBuy changed theirprices roughly50,000 times in amonth.

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They haveinfluenced theway we thinkand behave

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Google Search Trends in Banking - 2014

.. and shapedthe future!

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We have aNew Economy,with NewRules!

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DigitalTechnologycreated twopeoplesegments insociety!

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DigitalImmigrantsand..

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Digital Nativesor Millennials!

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Digital Nativeseat, sleep andbreathe withtechnology!

1 in 3 people wouldrather give up sexthan their phone

95% of people usethe phone forsomething justbefore going to bed

Half of people checktheir phonesimmediately if theywake up during thenight

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Well.. notnecessarily allof them verybright but…

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..they still havesignificance inthe economy!

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Even if theyprotest thiseconomysometimes,they knowwhere thegood deal is!

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Technologybrought us “easyto use” devices.But…

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… using andunderstandingare two differentthings!

42% said they believed a "motherboard" was "the deck of a cruise ship." Amotherboard is usually a circuit board that holds many of the keycomponents of a computer.23% thought an "MP3" was a "Star Wars" robot. It is actually an audio file.18% identified "Blu-ray" as a marine animal. It is a disc format typicallyused to store high-definition videos.

42% said they believed a"motherboard" was "the deckof a cruise ship." Amotherboard is usually a circuitboard that holds many of thekey components of acomputer.

23% thought an "MP3" was a"Star Wars" robot. It is actuallyan audio file.

18% identified "Blu-ray" as amarine animal. It is a discformat typically used to storehigh-definition videos.

42% said theybelieved a"motherboard" was"the deck of a cruiseship."

23% thought an"MP3" was a "StarWars" robot.

18% identified "Blu-ray" as a marineanimal.

11% think gigabyteis an insect.

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One way oranothereveryone usesthetechnology.

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This is a funnyworld withmany nicesurprises!

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Together withNew Rules ofSuccess!

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There is also aBig Shift toMobile!

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In new,economyOpinions arehighly valuedand takenserious.

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One is clear:Business isNOT as usual!

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How about us,Banks andFinancialInstitutions?

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Here’s thechanginglandscape ofbanking!

THE STATE OF THE FINANCIAL SERVICES INDUSTRY2015, Oliver Wyman

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Should weconcern aboutour business ?

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Some banksrealized thechange and re-positionthemselves!

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For someothers thesituation ismorechallenging!

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Everyoneknowssomethingneeds to bedone. Butwhat?

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Europe’s banks are shrinking. What will take theirplace?

... but this is a time of huge opportunity in finance — aslong as you are something other than a bank.

Why banks arenot popularany more?

GlobalCommercial Banking Survey2014, EY

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How are wegoing todifferentiateourselves andadapt?

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NewTechnologies

Available

Change inBehaviours &Expectations

UpdatedRegulations

Cheaper tosetup Fintech

Startups

The change inthe FinancialLandscape?

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Change ofCustomerBehavior…

Device shift – from PCs tomobile/touch devices.

Communications shift – fromvoice to data and video

Content shift – from bundledto fragmented

From Newspapers, network TVstations, or big-box retailers -to Mobile Apps

Social shift – from growth tomonetization

Video shift – fromprogrammed to user-driven.

Retail shift – from channel toexperience

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Influenced theway of bankinghas been done.

Accenture DigitalBanking Consumer Survey 2014

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UnderstandingMillennials’Banking Styleis critical!

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DigitalBanking is akey to servethem.

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Are we readyforDigitalization?

”Bankingis changing…with or without thebanks”Oracle 2015

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What if, theexpectationsare not met?

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So we have newcompetition forserving them!

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Not all Fintechcompanies aresame!

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Here’s the newbattlefield!

THE DIGITAL DISRUPTIONBATTLEFIELD 2015, Oliver Wyman

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Innovationwould be ouronly chance tosurvive.

World Economic Forum,The Future of Financial Services 2015

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What needs tobe done onour side?

Banking2016,Accelerating growth andoptimizing costs in distribution andmarketingAccenture2015

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We should alsocloselymonitor thechangingTrends!

Financial services report and trends radarBrilliant Noise, 2015

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What it takesto be theWinner ?

( How Banking got agile, Accenture 2014)

More operationallyefficient business models

New customer segmentsand new markets

New services, newrevenue streams

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Over-confidence issomething weshould avoid!

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We have towin customertrust back!

PA Consulting, 2015

Balancing ServiceEfficiency andCustomer Value

Building Trustthroughtransparency

Creating a senseof Identity andbelonging

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We better dothis,otherwise…

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… there wouldbe no returnfrom where wewill get!

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“Facts do not cease to exist because theyare ignored.” Aldous Huxley

THANKS!