SlideShare a Scribd company logo
1 of 13
Download to read offline
Commercial Banking Trends 2018
Capgemini, November 2017
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 2
Commercial Banking Trends 2018
 Banks Make Significant Investment in
Back-Office Digitization01
 Tech-Powered Marketplaces Connect
Borrowers and Lenders, Boost Lending Activity 02
 Banks Launch ‘Adoption-Ready’ Blockchain-
Based Solutions03  Banks Leverage Automation to Streamline
Operations 04
 Banks Provide Transparent, Convenient
Corporate Payments Services in Real Time05
 Banks Use Predictive Analytics for Credit
Scoring Institutions and Risk Management 06
 Banks Use APIs to Partner with FinTechs,
Meet Unique Needs of Corporate Customers07
 Banks Develop Agile and Open Systems to Enable
Non-Standardized Third-Party Integrations 08
 New Banking Industry Regulations Spur
Competition, Innovation09  Banks Migrate Data, Processes, and
Infrastructures to Hybrid Clouds 10
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 3
Banks Make Significant Investment in Back-Office
Digitization
Source: Capgemini Financial Services Analysis, 2017
Trade Finance
Improved Customer Experience
Cash and Liquidity Management
Integration of Digital Channels
International Trade
Quick Launch of Products and Services
Commercial Lending
Cost Savings
Key Commercial Banking Areas Being Digitized Benefits
Commercial Payments
Compliance and Reporting
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 4
Tech-Powered Marketplaces Connect Borrowers and
Lenders, Boost Lending Activity
Source: Capgemini Financial Services Analysis, 2017
Faster and Flexible Credit Access
Emergence of Advanced Technology
Advanced Use of Data Analytics Capability
Lower Cost and Higher Margins Associated with Online
Platforms
Drivers Implications For Banks
Increased Competition
Banks will Partner or Collaborate with Marketplace
Lenders
Opportunity to Invest for Higher Returns
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 5
Banks Launch ‘Adoption-Ready’ Blockchain-Based
Solutions
Source: Capgemini Financial Services Analysis, 2017
Key Features
Multiple Consortiums
Increased Investments
Enablers
New Platforms
Increased Adoption
Smart Contracts
Real Time Update and
Payments
Elimination of Intermediaries
Automatic Settlements
Transparent Processes
Reduced Risk of Default/Fraud
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 6
Banks Leverage Automation to Streamline Operations
Source: Capgemini Financial Services Analysis, 2017; “Robotic process automation (RPA) - The next revolution of Corporate Functions,” Capgemini Consulting, 2016
1:4
1 Robot replaces ~ 4
Employees
50-
90%
Savings on cost, with
the help of robots
when compared to
employees
3-6 Months, expected ROI
Faster Processes
Enhanced Customer Experience
Allows Employees to Focus on Other
Value Added Tasks
Reduction in Operational Costs
Magnified Efficiency
Seamless Interoperability
Benefits
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 7
Banks Provide Transparent, Convenient Corporate
Payments Services in Real Time
Source: Capgemini Financial Services Analysis, 2017
Drivers
Real-Time Payments
Flexibility Using Multiple Providers
Lower Costs Better Experience Across Channels
Security and Transparency
Ease of Return Processing
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 8
Banks Use Predictive Analytics for Credit Scoring
Institutions and Risk Management
Source: Capgemini Financial Services Analysis, 2017; "Big Data and Business Analytics Revenues Forecast to Reach $150.8 Billion This Year, Led by Banking and Manufacturing Investments, According to IDC",
IDC, March 14, 2017
11.9%
Expected CAGR of Worldwide
Big Data Analytics Spending
across industries from 2016-
2020E
13.3%
Expected CAGR of Worldwide
Big Data Analytics Spending in
Banking Industry from 2016-
2020E
Credit and Counterparty Risk Management
Fraud Detection, Prevention, and Mitigation
Regulatory Compliance
Applications of Risk Analytics in Banking
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 9
Banks Use APIs to Partner with FinTechs, Meet
Unique Needs of Corporate Customers
Source: Capgemini Financial Services Analysis, 2017; Celent, Inc.: “Open Banking APIs: Driving Developer Adoption,” Patricia Hines, Aug 29, 2017
Amplify Banks Reach
Increase Revenue
Stimulate Innovation
>275
New payment and
banking APIs published
by banks and FinTechs
from 2015 (Jan) to
2017 (Aug)
Drivers
Regulations
Faster Time to Market
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 10
Banks Develop Agile and Open Systems to Enable Non-
Standardized Third-Party Integrations
Source: Capgemini Financial Services Analysis, 2017
Drivers
Need for Greater Efficiency
Flexibility to Adapt to Industry Changes
Increased Adoption of Cloud
Increased Openness and Collaboration in the
Industry
Adoption of APIs
Focus Areas
Supporting Infrastructure
Executive Leadership Buy - In
Collaboration and Partnerships
Realigned IT Processes
Project Management Role and Responsibilities
People and Culture
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 11
New Banking Industry Regulations Spur Competition,
Innovation
Source: Capgemini Financial Services Analysis, 2017
Highly Concentrated Banking Industry
Regulators Push for a Level Playing Field
Need for Improvement in Quality, Variety, and Access of
Products and Services
Drivers Implications
FinTechs, Challenger Banks, and Neo Banks are Thriving
Customers Gain Improved Products and Services
Greater Competition
Banks Investing in Innovation
Banks Collaborating with FinTechs
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 12
Banks Migrate Data, Processes, and Infrastructure to
Hybrid Clouds
Source: Capgemini Financial Services Analysis, 2017
Cost Efficient
Seamlessly Scalable
Business Optimized
Hybrid Cloud Benefits
Reliable
Private Cloud Benefits Public Cloud Benefits
Stability Flexible
Secure Low cost
Adaptable Pay As You Go
Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved.
With more than 190,000 people, Capgemini is present in over 40 countries and
celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology
and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion.
Together with its clients, Capgemini creates and delivers business, technology and
digital solutions that fit their needs, enabling them to achieve innovation and
competitiveness. A deeply multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business Experience™, and draws on Rightshore®, its
worldwide delivery model.
About Capgemini
Learn more about us at
www.capgemini.com
This message contains information that may be privileged or confidential and is
the property of the Capgemini Group.
Copyright © 2017 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to
read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please
notify the sender immediately and delete all copies of this message.

More Related Content

More from Capgemini

Property & Casualty Insurance Top Trends 2021
Property & Casualty Insurance Top Trends 2021Property & Casualty Insurance Top Trends 2021
Property & Casualty Insurance Top Trends 2021Capgemini
 
Life Insurance Top Trends 2021
Life Insurance Top Trends 2021Life Insurance Top Trends 2021
Life Insurance Top Trends 2021Capgemini
 
Top Trends in Commercial Banking: 2021
Top Trends in Commercial Banking: 2021Top Trends in Commercial Banking: 2021
Top Trends in Commercial Banking: 2021Capgemini
 
Top Trends in Wealth Management: 2021
Top Trends in Wealth Management: 2021Top Trends in Wealth Management: 2021
Top Trends in Wealth Management: 2021Capgemini
 
Top Trends in Payments: 2021
Top Trends in Payments: 2021Top Trends in Payments: 2021
Top Trends in Payments: 2021Capgemini
 
Health Insurance Top Trends 2021
Health Insurance Top Trends 2021Health Insurance Top Trends 2021
Health Insurance Top Trends 2021Capgemini
 
Top Trends in Retail Banking: 2021
Top Trends in Retail Banking: 2021Top Trends in Retail Banking: 2021
Top Trends in Retail Banking: 2021Capgemini
 
Capgemini’s Connected Autonomous Planning
Capgemini’s Connected Autonomous PlanningCapgemini’s Connected Autonomous Planning
Capgemini’s Connected Autonomous PlanningCapgemini
 
Top Trends in Retail Banking: 2020
Top Trends in Retail Banking: 2020Top Trends in Retail Banking: 2020
Top Trends in Retail Banking: 2020Capgemini
 
Top Trends in Life Insurance: 2020
Top Trends in Life Insurance: 2020Top Trends in Life Insurance: 2020
Top Trends in Life Insurance: 2020Capgemini
 
Top Trends in Health Insurance: 2020
Top Trends in Health Insurance: 2020Top Trends in Health Insurance: 2020
Top Trends in Health Insurance: 2020Capgemini
 
Top Trends in Payments: 2020
Top Trends in Payments: 2020Top Trends in Payments: 2020
Top Trends in Payments: 2020Capgemini
 
Top Trends in Commercial Banking: 2020
Top Trends in Commercial Banking: 2020Top Trends in Commercial Banking: 2020
Top Trends in Commercial Banking: 2020Capgemini
 
Top Trends in Wealth Management 2020
Top Trends in Wealth Management 2020Top Trends in Wealth Management 2020
Top Trends in Wealth Management 2020Capgemini
 
How to get off the white elephant of physical and leverage the true benefits ...
How to get off the white elephant of physical and leverage the true benefits ...How to get off the white elephant of physical and leverage the true benefits ...
How to get off the white elephant of physical and leverage the true benefits ...Capgemini
 
Connected Autonomous Planning: a continuous touchless model enabling an agile...
Connected Autonomous Planning: a continuous touchless model enabling an agile...Connected Autonomous Planning: a continuous touchless model enabling an agile...
Connected Autonomous Planning: a continuous touchless model enabling an agile...Capgemini
 
Data Center of the Future: Designing a modernized, high performance computing...
Data Center of the Future: Designing a modernized, high performance computing...Data Center of the Future: Designing a modernized, high performance computing...
Data Center of the Future: Designing a modernized, high performance computing...Capgemini
 
Connected Storytelling
Connected StorytellingConnected Storytelling
Connected StorytellingCapgemini
 
NYDJ and Capgemini
NYDJ and CapgeminiNYDJ and Capgemini
NYDJ and CapgeminiCapgemini
 
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for Grocery
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for GroceryGrocery Fullforce Solution: Capgemini Unified Commerce Solution for Grocery
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for GroceryCapgemini
 

More from Capgemini (20)

Property & Casualty Insurance Top Trends 2021
Property & Casualty Insurance Top Trends 2021Property & Casualty Insurance Top Trends 2021
Property & Casualty Insurance Top Trends 2021
 
Life Insurance Top Trends 2021
Life Insurance Top Trends 2021Life Insurance Top Trends 2021
Life Insurance Top Trends 2021
 
Top Trends in Commercial Banking: 2021
Top Trends in Commercial Banking: 2021Top Trends in Commercial Banking: 2021
Top Trends in Commercial Banking: 2021
 
Top Trends in Wealth Management: 2021
Top Trends in Wealth Management: 2021Top Trends in Wealth Management: 2021
Top Trends in Wealth Management: 2021
 
Top Trends in Payments: 2021
Top Trends in Payments: 2021Top Trends in Payments: 2021
Top Trends in Payments: 2021
 
Health Insurance Top Trends 2021
Health Insurance Top Trends 2021Health Insurance Top Trends 2021
Health Insurance Top Trends 2021
 
Top Trends in Retail Banking: 2021
Top Trends in Retail Banking: 2021Top Trends in Retail Banking: 2021
Top Trends in Retail Banking: 2021
 
Capgemini’s Connected Autonomous Planning
Capgemini’s Connected Autonomous PlanningCapgemini’s Connected Autonomous Planning
Capgemini’s Connected Autonomous Planning
 
Top Trends in Retail Banking: 2020
Top Trends in Retail Banking: 2020Top Trends in Retail Banking: 2020
Top Trends in Retail Banking: 2020
 
Top Trends in Life Insurance: 2020
Top Trends in Life Insurance: 2020Top Trends in Life Insurance: 2020
Top Trends in Life Insurance: 2020
 
Top Trends in Health Insurance: 2020
Top Trends in Health Insurance: 2020Top Trends in Health Insurance: 2020
Top Trends in Health Insurance: 2020
 
Top Trends in Payments: 2020
Top Trends in Payments: 2020Top Trends in Payments: 2020
Top Trends in Payments: 2020
 
Top Trends in Commercial Banking: 2020
Top Trends in Commercial Banking: 2020Top Trends in Commercial Banking: 2020
Top Trends in Commercial Banking: 2020
 
Top Trends in Wealth Management 2020
Top Trends in Wealth Management 2020Top Trends in Wealth Management 2020
Top Trends in Wealth Management 2020
 
How to get off the white elephant of physical and leverage the true benefits ...
How to get off the white elephant of physical and leverage the true benefits ...How to get off the white elephant of physical and leverage the true benefits ...
How to get off the white elephant of physical and leverage the true benefits ...
 
Connected Autonomous Planning: a continuous touchless model enabling an agile...
Connected Autonomous Planning: a continuous touchless model enabling an agile...Connected Autonomous Planning: a continuous touchless model enabling an agile...
Connected Autonomous Planning: a continuous touchless model enabling an agile...
 
Data Center of the Future: Designing a modernized, high performance computing...
Data Center of the Future: Designing a modernized, high performance computing...Data Center of the Future: Designing a modernized, high performance computing...
Data Center of the Future: Designing a modernized, high performance computing...
 
Connected Storytelling
Connected StorytellingConnected Storytelling
Connected Storytelling
 
NYDJ and Capgemini
NYDJ and CapgeminiNYDJ and Capgemini
NYDJ and Capgemini
 
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for Grocery
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for GroceryGrocery Fullforce Solution: Capgemini Unified Commerce Solution for Grocery
Grocery Fullforce Solution: Capgemini Unified Commerce Solution for Grocery
 

Recently uploaded

MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfMichael Silva
 

Recently uploaded (20)

MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdf
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 

Top-10 Technology Trends in Commercial Banking: 2018

  • 1. Commercial Banking Trends 2018 Capgemini, November 2017
  • 2. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 2 Commercial Banking Trends 2018  Banks Make Significant Investment in Back-Office Digitization01  Tech-Powered Marketplaces Connect Borrowers and Lenders, Boost Lending Activity 02  Banks Launch ‘Adoption-Ready’ Blockchain- Based Solutions03  Banks Leverage Automation to Streamline Operations 04  Banks Provide Transparent, Convenient Corporate Payments Services in Real Time05  Banks Use Predictive Analytics for Credit Scoring Institutions and Risk Management 06  Banks Use APIs to Partner with FinTechs, Meet Unique Needs of Corporate Customers07  Banks Develop Agile and Open Systems to Enable Non-Standardized Third-Party Integrations 08  New Banking Industry Regulations Spur Competition, Innovation09  Banks Migrate Data, Processes, and Infrastructures to Hybrid Clouds 10
  • 3. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 3 Banks Make Significant Investment in Back-Office Digitization Source: Capgemini Financial Services Analysis, 2017 Trade Finance Improved Customer Experience Cash and Liquidity Management Integration of Digital Channels International Trade Quick Launch of Products and Services Commercial Lending Cost Savings Key Commercial Banking Areas Being Digitized Benefits Commercial Payments Compliance and Reporting
  • 4. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 4 Tech-Powered Marketplaces Connect Borrowers and Lenders, Boost Lending Activity Source: Capgemini Financial Services Analysis, 2017 Faster and Flexible Credit Access Emergence of Advanced Technology Advanced Use of Data Analytics Capability Lower Cost and Higher Margins Associated with Online Platforms Drivers Implications For Banks Increased Competition Banks will Partner or Collaborate with Marketplace Lenders Opportunity to Invest for Higher Returns
  • 5. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 5 Banks Launch ‘Adoption-Ready’ Blockchain-Based Solutions Source: Capgemini Financial Services Analysis, 2017 Key Features Multiple Consortiums Increased Investments Enablers New Platforms Increased Adoption Smart Contracts Real Time Update and Payments Elimination of Intermediaries Automatic Settlements Transparent Processes Reduced Risk of Default/Fraud
  • 6. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 6 Banks Leverage Automation to Streamline Operations Source: Capgemini Financial Services Analysis, 2017; “Robotic process automation (RPA) - The next revolution of Corporate Functions,” Capgemini Consulting, 2016 1:4 1 Robot replaces ~ 4 Employees 50- 90% Savings on cost, with the help of robots when compared to employees 3-6 Months, expected ROI Faster Processes Enhanced Customer Experience Allows Employees to Focus on Other Value Added Tasks Reduction in Operational Costs Magnified Efficiency Seamless Interoperability Benefits
  • 7. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 7 Banks Provide Transparent, Convenient Corporate Payments Services in Real Time Source: Capgemini Financial Services Analysis, 2017 Drivers Real-Time Payments Flexibility Using Multiple Providers Lower Costs Better Experience Across Channels Security and Transparency Ease of Return Processing
  • 8. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 8 Banks Use Predictive Analytics for Credit Scoring Institutions and Risk Management Source: Capgemini Financial Services Analysis, 2017; "Big Data and Business Analytics Revenues Forecast to Reach $150.8 Billion This Year, Led by Banking and Manufacturing Investments, According to IDC", IDC, March 14, 2017 11.9% Expected CAGR of Worldwide Big Data Analytics Spending across industries from 2016- 2020E 13.3% Expected CAGR of Worldwide Big Data Analytics Spending in Banking Industry from 2016- 2020E Credit and Counterparty Risk Management Fraud Detection, Prevention, and Mitigation Regulatory Compliance Applications of Risk Analytics in Banking
  • 9. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 9 Banks Use APIs to Partner with FinTechs, Meet Unique Needs of Corporate Customers Source: Capgemini Financial Services Analysis, 2017; Celent, Inc.: “Open Banking APIs: Driving Developer Adoption,” Patricia Hines, Aug 29, 2017 Amplify Banks Reach Increase Revenue Stimulate Innovation >275 New payment and banking APIs published by banks and FinTechs from 2015 (Jan) to 2017 (Aug) Drivers Regulations Faster Time to Market
  • 10. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 10 Banks Develop Agile and Open Systems to Enable Non- Standardized Third-Party Integrations Source: Capgemini Financial Services Analysis, 2017 Drivers Need for Greater Efficiency Flexibility to Adapt to Industry Changes Increased Adoption of Cloud Increased Openness and Collaboration in the Industry Adoption of APIs Focus Areas Supporting Infrastructure Executive Leadership Buy - In Collaboration and Partnerships Realigned IT Processes Project Management Role and Responsibilities People and Culture
  • 11. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 11 New Banking Industry Regulations Spur Competition, Innovation Source: Capgemini Financial Services Analysis, 2017 Highly Concentrated Banking Industry Regulators Push for a Level Playing Field Need for Improvement in Quality, Variety, and Access of Products and Services Drivers Implications FinTechs, Challenger Banks, and Neo Banks are Thriving Customers Gain Improved Products and Services Greater Competition Banks Investing in Innovation Banks Collaborating with FinTechs
  • 12. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. 12 Banks Migrate Data, Processes, and Infrastructure to Hybrid Clouds Source: Capgemini Financial Services Analysis, 2017 Cost Efficient Seamlessly Scalable Business Optimized Hybrid Cloud Benefits Reliable Private Cloud Benefits Public Cloud Benefits Stability Flexible Secure Low cost Adaptable Pay As You Go
  • 13. Commercial Banking Trends 2018 | November 2017 © 2017 Capgemini. All rights reserved. With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2017 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. This message is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message.