Big Data & Analytics Anything But BAU in Cyrus Daruwala, Managing Director APJ 14 th FST

Size: px

Start display at page:

Download "Big Data & Analytics Anything But BAU in Cyrus Daruwala, Managing Director APJ 14 th FST"

Samuel Miles
6 years ago
Views:

1 Big Data & Analytics Anything But BAU in 2013 Cyrus Daruwala, Managing Director APJ 14 th FST

2 IDC Financial Insights Page 2

3 Strategic Focus - Innovation is Tops! Q: What are some of the strategic initiatives your bank is working on right now? Innovation strategies Customer insights and analytics IT security and fraud management Channel management (branch, ATM, mobile) Risk management Banking 2.0 innovation Compliance Core banking system renewal Trade and cash management Business process reengineering Social media in financial services Outsourcing Cloud computing IDC Financial Insights Page

4 Breakdown of Qualified Submissions N = approx. 1,000 over the 3 years IDC Financial Insights Page 4

Customer Centricity Through The Years 2006 2007 2008 2009 2010 2011 2012 1 Core Banking 1 Risk 1 Management 2 Channels New Themes 2 of Customer 2 Centricity 2 3

Mobile Everywhere Trade Services and Transaction Banking 7 Risk Customer Management Data and Management Compliance & Single Customer Innovation View in Retail Payments

5 Customer Centricity Through The Years Core Banking 1 Risk 1 Management 2 Channels New Themes 2 of Customer 2 Centricity 2 3 Profitability 3 and Performance Management Business 3 Process Reengineering and Core Banking Customer Centricity Payments New business technologies Compliance Mobile Everywhere Trade Services and Transaction Banking 7 Risk Customer Management Data and Management Compliance & Single Customer Innovation View in Retail Payments 8 9 Security and Fraud Management Business Process Reengineering Channels Alternative IT Delivery IT Governance 10 Selective Sourcing Fraud Management IDC Financial Insights Page 5

6 What are the Drivers behind this Customer Centricity? 1 5 Our agents, and customers are now more mobile 4 We want to be able to analyze our customers better and in a more granular fashion We are increasingly pitching to a customer segment of ONE 2 We should able to serve our customers faster IDC Financial Insights Page 6 3 We should understand that our customers are most likely active social media participants

Lifestyle-related information Behavioral data Demographics Geospatial information Online and social media

7 1 Analytics: Big Data is the New In Thing Volume Variety Data we are able to gather have exploded in quantity Data we are able to gather have exploded in type 10x growth in data stored between Transactional data Lifestyle-related information Behavioral data Demographics Geospatial information Online and social media interactions Mobile (smart-phone) usage trends Velocity We are able to process all these data much faster IDC Financial Insights Page 7

8 2 Speed Customer and Data Instantaneous Management Response Mandates to cut turn-around times We observe customer promise" programs to: Shorten waiting times, Cut queues, Serve customers in branches by a certain number of minutes, Open accounts within a certain time frame, or Approve credit quicker than usual IDC Financial Insights Page 8

from 2 days to 5 minutes Eight minute service pledge Loan approval in an hour

9 2 Examples we are Seeing in the Region UBank National Australia Bank Standard Chartered Singapore Citi Singapore RHB Easy Malaysia Reduced account opening time from 2 days to 5 minutes Eight minute service pledge Loan approval in an hour Personal loan approvals in ten minutes, including debit card issuance IDC Financial Insights Page 9

10 But it is in m-commerce where we see all the 5 themes come together!! IDC Financial Insights Page 10

11 Channel Strategies around Mobility Q: How would you rate your bank's current innovations around mobility? We are only just planning to implement/rollout mobility initiatives 21% We have implemented basic mobile banking functions but are looking at further enhancements 7% We have already seen success in a few areas around mobility 43% Mobilility is tightly integrated into our multichannel strategy. We are one of the best in the Singapore market 29% N = 14 IDC 0 respondents Financial Insights. Page 11 Source: Bankers Boardroom Survey, August 2012

12 Analytics On / To The Mobile! Locational Intelligence in Action UOB Singapore Mobile Augmented Reality in Action Commonwealth Bank of Australia IDC Financial Insights Page 12

13 Speed and Mobility Making Things Faster and Simpler: ANZ gomoney Making Things Faster and Simpler: Digital Check Deposits IDC Financial Insights Page 13

14 E.G of ANZ gomoney No.1 in the Apple itunes Stores within 6 hours after launch What about community aspects of mobile? No. 2 free App by end of launch day 1,000+ customers giving feedback within the first month 4 out of 5 average rating IDC Financial Insights Page 14

15 Facebook in Mobile Payments CBA Kaching IDC Financial Insights Page 15

16 Hyper-Personalization and Mobility Hyper-Personalization in Action Standard Chartered Breeze Hyper-Personalization in Action ANZ gomoney IDC Financial Insights Page 16

17 SO HOW DOES THE MALAYSIAN FSI BUY? AND HOW DO THEY VIEW THE THEIR VENDORS?? IDC Financial Insights Page 17

Vendor Selection Checklist Q. Aside from pricing/cost, what do you think are the top 3 factors that drive your organization's decision when selecting/switching to a new Core vendor/provider?

18 Vendor Selection Checklist Q. Aside from pricing/cost, what do you think are the top 3 factors that drive your organization's decision when selecting/switching to a new Core vendor/provider? Process Integration Capability Business process transformation knowledge Solutions, IT & Ops -business alignment Risk-reward sharing Outcome-based model pricing IT services delivery capabilities Business-outcome-based SLA Understanding your business/industry Security expertise GRC Strong & extensive partner ecosystem Network infrastructure Business consulting expertise Flexibility to meet special requirements CIO LoB IDC Financial Insights Page 18 0% 5% 10% 15% 20% 25%

transform business processes Lack of thought leadership in ICT strategy & roadmap Lack of required skill sets to effectively execute Lack of business unit

19 Why is All this Difficult?? Q. What are your top 3 challenges with finding the right Vendor / Partner Ineffective IT-business alignment Difficulty To Find a GLOCAL IT Partner Inability to transform business processes Lack of thought leadership in ICT strategy & roadmap Lack of required skill sets to effectively execute Lack of business unit stakeholders' buy-in Inability to adopt new technologies to drive competitive edge Difficulty Finding Process +IT+ Apps Executives Difficulty To Predict Cost & TCO & ROI Limited ICT budget 0% 5% 10% 15% 20% IDC Financial Insights Page 19 Source: IDC APeJ C-suite Barometer Survey, Feb 2011 (CIO/CTO=486)

20 They Chuck Products / Services, No Road Map Start here! Process 1 Process 2 Process 3 Sub-Processes Stakeholders Technology IDC Financial Insights Page 20

21 It Feels Like This in Every IT Presso & Every RFP!! They Bedazzled You during the RFP, but now you are Customer # 1,264 The Risk is even higher if you remove them / phase them out You ( even CIO s) are not Techies...u understand IT & business...but still Everybody s Blaming Everybody...and In the Middle of all this... Is Larry... IDC Financial Insights Page 21

22 So How Can You Find Your Star and Transform 1. Customer centricity & expansion 2. IT & Business process transformation 3. Operational efficiency & productivity Business Process Transformation Customer centricity & expansion Operational efficiency & productivity IDC Financial Insights Page 22

23 Help LOB / IT Find their Sweet Spot Deployment Cost + Reasonable Cost Business Risk Business Value Optimal Risk Greatest Business Value - None Modest Moderate Radical IDC Financial Insights Page 23

24 So.What Can You Use Tomorrow?? The is Very Little Crowd outside the CRO, CFO & COO s office, Go there!! Start Somewhere in the Business Process or in the LOB, not with IT. All Initiative must have GRC, Social Business & Future-proofing angle. IDC Financial Insights Page 24

25 Cyrus Daruwala Managing Director, Financial Insights, Asia Pacific Tel: IDC Financial Insights Page 25

How Will Your Bank Thrive?

How Will Your Bank Thrive? Pennsylvania Association of Community Bankers Annual Convention September 24, 2016 Timothy Reimink Managing Director Crowe Horwath LLP Session Description Some people wonder