1、WORLD FINTECH REPORT 2020 2 Preface 3 Executive summary 4 Banks must board the last train to relevancy the Open X express 6 BigTechs and challenger banks have opened a Pandoras box of customer expectations. Can banks compete? 6 Why collaboration counts: FinTechs specialized tools and expertise can e

2、mpower banks 7 Open banking was just the beginning 8 The last mile is merely the visible result of customer experience 12 But behind the scenes, middle- and back-office operations affect customer perception 12 Back-end transformation can be a bumpy ride avoid potholes with collaboration by design 14

3、 FinTechs offer innovative enhancements for middle and back offices 16 Structure is essential for bank/FinTech partnership effectiveness 19 The disappointing reality of many bank/FinTech partnerships 19 Effective collaboration requires people, business, and process maturity on both sides 21 Players

4、that collaborate at scale to industrialize innovation will shine within the Open X sharing economy 25 Appendix 28 Methodology 32 About Us 34 Acknowledgements 35 TABLE OF CONTENTS World FinTech Report 2020 Its now or never. ? inaugural World FinTech Report in 2017. Fast forward to the World FinTech R

5、eport 2020 and the imminent Open X, a multi-sectoral open platform era maximizing the eXperience, and the harsh reality is that FinTechs ? startups are struggling to retain and acquire new customers. ? BigTechs and agile challenger banks, consumer expectations are changing in real time. To keep pace

6、, incumbents must embrace Open X and become Inventive Banks, prepared to adopt specialized open ? No longer simply disruptors, FinTechs have matured to become respected, global players with robust ? formidable competitors or enabling allies. Most banks understand that a positive last-mile experience

7、 and an engaging front end are critical to keeping ? customer satisfaction are often neglected. Thats why, despite substantial front-end investment, many banks continue to fall short of delivering seamless and personalized customer experience. Bringing back-end operations up to speed can be an exten

8、ded journey. Our World FinTech Report 2020? proven methods for banks to join forces with mature FinTechs to map, prioritize, and innovatively enhance their most-critical open platform processes. Despite synergies and the win-win potential of bank/FinTech collaboration, the frustrating reality is tha

9、t ? ? ? Late-stage FinTechs (scaleups) can drive productivity and value based on their last-mile expertise, data management know-how, and mobile-only mentality. Inventive banks can leverage their reach, trust, and business expertise to optimize their assets and remain relevant to an increasingly div

10、erse customer base. This is especially important given the highly uncertain economic outlook caused by never- seen-before risks. Players with readiness to collaborate at scale and industrialize innovation are the most likely to prosper within the shared Open X ecosystem. We encourage a focus on busi

11、ness outcomes to help both banks and FinTechs move from proof of concept ?applied innovation or innovation industrialization. First movers will shape Open X roles, standards, and management. Anirban Bose Financial Services Strategic Business Unit CEO World Retail Banking Report 2019 Voice of the Cus

12、tomer Survey. 70% attracted by ? 68% seek ease of use 54% want faster service 39% pursue better features 39% want personalized products ? ? ? ? ? ? ? ? ? Laurent Herbillon Director, Open Innovation, BNP Paribas World FinTech Report 2019World FinTech Report 2020 ? ? ? ? ? ? ? Carlos Lpez-Moctezuma Gl

13、obal Head of Open Banking, BBVA Capitalizing on the growing demands for improved services, BigTechs and challenger banks are not wasting time when it comes to expanding their ? Through an open and evolutive platform, they have ? (FS) capabilities and now pose a tangible threat to established banks.

14、Many of these players broke into the market with a ? into lending, savings, wealth management, and ? ? growing their presence through investment in FinTechs globally. (For additional insights, see Figure A1 and A2 in Appendix). BigTechs and challenger banks have established their position playing on

15、 their strengths, leveraging the wealth of data through open and evolving platforms ? experience (Figure 2). Figure 2. BigTechs and challenger banks leverage high-impact capabilities Sources: Capgemini Financial Services Analysis, 2020; CB Insights, 2019. BigTech World Retail Banking Report, 2019; C

16、elent, 2019; The Financial Brand, 2019; Signicat, 2018. Poor employee experience Low scalability banking services have not grown to the superstar levels they expect and receive from a few other sectors. The lack of perceivable CX improvement may stem from banks bare-bones attention to ?. And, now, t

17、hese ignored behind-the-scenes processes are blunting the positive impact of front-end investments and collaboration (Figure 5). 12 World FinTech Report 2020 As data and technology proliferate, banks are transforming their business models to keep pace with the changing industry landscape and custome

18、r expectations. However, continued layering of processes to enable new business models onto ? investments that drive end-to-end optimization. Therefore, banks must funnel resources and attention ? functions with customers last-mile experience. ? on the front end. Yet, to succeed in the Open X ecosys

19、tem, banks must optimize and streamline their end-to-end value chain. Based on the size and scale of operation, a bank could have more than 300 to ?24 Manual, disconnected, paper-based, and siloed tasks often weigh down these procedures, and impacts new ? time. The result is fragmented CX. ? ? ? ? ?

20、 ? ? Carlos Lpez-Moctezuma Global Head of Open Banking, BBVA 23 Celent, “Global tech spending forecast, Banking edition 2019, Stephen Greer, Gareth Lodge, Juan Mazzini, and Eiichiro Yanagawa, March 28, 2019, ” The Financial Brand, “Consumers demanding improved digital banking customer engagement,” J

21、im Marous, August 12, 2019, ? customer-engagement-digital-banking-cx/; BACS, “The battle to on-board II: The European perspective on digital on-boarding for retail banks,” September 2018, https:/www.bacs.co.uk/documentlibrary/Current_Account_Switch_Service_discussion_paper_consumer_switching.pdf. 24

22、 ? ?. ? Complex business processes As a result of their traditional product-centric approach, incumbents often layer new models on top of old, which has led to ? Compliance-centric architecture In response to regulatory demands, typical bank IT architecture is complex and implemented intermittently

23、as ? ? Lack of agility ? ? waterfall methodologies (linear project management) that ? Out of the (business) loop Many IT transformation teams lack visibility to bank business ? ? 13 Back-end transformation can be a bumpy ride avoid potholes with collaboration by design In the Open X ecosystem, banks

24、 need data-driven and customer-centric partnerships to drive ? 25 VSD systematically accounts for human values throughout the design process through analyses of direct and indirect stakeholders, distinctions among designer values, values explicitly supported by the technology, and a commitment to pr

25、ogress (not perfection). University of Washington, Department of Computer Science http:/dmn.ca/embracing-journey-analytics/. Seek complementary strengths in collaborative partners Figure 6. Collaboration by design in three iterative steps: Identify, Prioritize, Collaborate Source: Capgemini Financia

26、l Services Analysis, 2020. Collaborate Identify Prioritize Flag potential friction by mapping processes, customer journeys, and ? ?and prioritize expectations, objectives ? ? ? ? ? ? ? ? Rasmus Jrborg, ? Collaboration by design is an approach that draws inspiration from value-sensitive design (VSD)

27、principles. It focuses on seamless CX by enhancing the most high-impact middle- and back-end processes (Figure 6).25 ? Phase 1 requires the bank to assess its current end-to-end processes to detect friction or bottlenecks. Some banks base digital initiatives on the customer lifecycle to map customer

28、 interactions. However, this approach doesnt allow for the impact ? A customer journey-led transformation is more realistic than a customer lifecycle approach. To connect and map disparate customer interactions, banks must comprehensively plan the journey itinerary (Figure 7). A data-centric journey

29、 map aligned with ? ? touchpoint. Moreover, journey mapping helps banks organize uncoordinated processes spread across various functional silos around a single end-to-end route. While customer journey mapping as a tool is widely used by banks, it is yet to achieve quality and integration maturity. F

30、or example, Bank of Montreal has a Process Center of Excellence that maps customer journeys and uses analytics to derive a data-centric customer route. The bank conducts data analysis on a vast number of customer journeys, which helps it evaluate various tasks and processes. This digital data highli

31、ghts customer intentions versus actual behavior.26 14 World FinTech Report 2020 Figure 7: Onboarding is one of many customer journeys to be mapped Onboarding request Data capture Customer onboarded Customer account set up KYC Customer JourneyInformation Exchange Customer Point of service Prospect ma

32、nagement Data management* Regulatory compliance DocumentationCorrespondence Issue credentials/ Master agreement * Data types: Customer reference data, party data, location data. Sources: Capgemini Financial Services Analysis, 2020; BIAN Standard v7.0. ? ? Phase 2 begins with prioritizing middle- and

33、 ? ? Moreover, banks can accept quick-wins or adopt a procedure that may be less impactful but easier ? Figure 8: Prioritizing processes to collaborate and transform the end-to-end customer journey Source: Capgemini Financial Services Analysis, 2020. CUSTOMER EXPERIENCE IMPACT HighLow OPERATIONAL EX

34、CELLENCE IMPACT HighLow CHANGE TO ENGAGE Focus on front-end processes to enhance customer experience COLLABORATE TO LEAD Overall front- and back-end improvement to transform end-to-end customer journey TRANSFORM TO PERFORM ? processes to boost operational ? LEGACY PROCESSES Manual/paper-based tasks

35、and functional silos can cripple traditional processes processes with the customer journey, banks can identify tactical issues such as paper-based and manual processes, overlapping and redundant processes, and high-cost processes. ? outcomes with its overall business strategy and 15 priorities. Emer

36、ging technologies (such as second generation of RPA, AI, machine learning, and NLP) can be leveraged to optimize or replace existing processes. ? envision and create a future-state customer journey that addresses tactical issues and aligns with business priorities. A future-ready enterprise, equally focused on improving CX and achieving operational excellence, can outperform competition and improve its bottom line by up to 16% over industry peers, ?27 ? As part of phase 3 (collaboration by design), incumbents boost their agility and responsi