Banking on Experience

Head Digital Banking, CIMB

Kanags Surendran

Technology is no longer just for techies

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Technology is now all pervasive not just for geeks

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In fact, now you learn to swipe before you learn to even talk

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And we are quite committed

Processing power has grown exponentially

Cray 2 Super computer 1986

iPhone 42010

iWatch2014

2 2 1

= =

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What matters now is not what technology we have but what we can do with it

As the marginal return on more computing power (a la Moore’s law) continues to diminish, a new kind of design will matter more than Moore.

Source: @kpcb @johnmaeda @gigaom #DesignInTech

Smart phones was the inflexion point for this shift to experience

Technology enabled business models has lifted barriers to entry for most industries making experience key differentiating factor

TechnologyProduct

DevelopmentDistribution Marketing

Cloud StorageCloud InfraCloud Support

Open SourceAPI economy

Low cost bandwidth Cheaper Smart phones4G and Fiber

Digital ReachSocial Marketing

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Gaming industry did not evolve by just making the controllers sleek

Cartridges to virtual reality

Trickle Social Virtual

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Photography : Click, Process & Store to Click & Share

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Music was digitized, compressed, unbundled and is now on demand

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Banking in 15th century Medici era

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And banking now : Same branches more technology

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And all banks are in various spots on the curve on digital transformation

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We all understand the drivers of digital transformation

Personalization

Transparency

Self-service

Mobile first

Simplicity

Aesthetic

Holistic

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But is that the real point?

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It is “Experience”

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Experience matters so much because we are experiencing that much

A bad design now hurts not just once but every time a customer opens the app. That’s a lot of “ouches”

Source: @kpcb @johnmaeda @gigaom #DesignInTech

And competition for banking is addressing the implicit consumer demand

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Global investment in digital financial innovations has more than tripled during the last five years. 2014 saw private FinTech companies raise nearly $3 billion.

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Top 10 Investments in 2014 were made in disruptive solutions that go direct to consumers.

Source: StrategyEye

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Our competition has increased from 10-15 financial services providers to 250 plus startups who are “unbundling” finance

Source: Venture Scanner

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And big non financial players are not far behind

Source: CB Insights

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Not Digital Transformation but Experience Transformation

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We need to move up the new Maslow’s curve

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How do we Transform Experience

People

Design

Digital

Basics

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Think Back to Basics

Be Reliable

Know your customer

The small stuff

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2

3

Be Reliable : Anytime, Anywhere & Secure

Know your customer

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The small stuff : Look for the ketchup

Low

Ret

urn

s

Investment High

Low

Hig

hDon’t

bother

Delight customers

Transformation

But Seriously ?

Source: TED talk Rory Sutherland ww.ted.com/talks/rory_sutherland_sweat_the_small_stuff

Think Digital

Future Ready

Data

Two speed

1

2

3

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Future Ready Platforms : The API economy

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Analytics : Make sense of the 0s and 1s

STANDARD REPORTS: What happened?

AD-HOC REPORTS: How many and how often?

QUERY DRILLDOWN: Where exactly is the problem?

STATISTICAL ANALYSIS: Why is this happening?

PREDICTIVE MODELLING: What will happen next?

REAL-TIME TRIGGERS: What actions are needed?

FORECASTING: What if these trends continue?

OPTIMIZE: What is the best that can happen?

Imp

rove

d D

ecis

ion

Mak

ing

Improved Business Value

Commodity:Well-Defined Problem/Business Model, ProvenBest Practice Exists

Greenfield:First/Early MoverDomain

Emerging:Some Industry ExamplesExist

De

gre

e o

f In

no

vati

on

Propensity to Stage-gate FundingLOWHIGH

HIGH

HIGH

Enterprise Domain

Digital TransformationDomain

Digital DisruptionDomain

Two speed IT : Minimum Viable Products faster to market

Think Design

Design Lead

Design Culture

Service Design

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2

3

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Design First

Source: @kpcb @johnmaeda @gigaom #DesignInTech

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Design Culture : Start with the customer, prototype and test

Prototype and test X SPACE LAB: Design Lab & Usability testing

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Service Design : Look for failure points and negative scenarios

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Think People

Smart Creatives

Partner

Culture

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2

3

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People : Develop Smart Creatives

Smart Creatives

Source : How Google Works, Eric Schmidt & Jonathan Rosenberg, with Alan Eagle

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People : Partner, Adapt & Learn from Fintech

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People : Create a culture that reaches for the stars