Integration of technologies for Business Transformation

Over the next three to five years, digital efforts will advance in areas as diverse as robo-investing, automation of consumer lending and clearing and settlement of cash and securities transactions

Institutions will need to balance the need for separate ‘change the bank’ transformation teams with the inevitability that digital will become the platform

The data is everywhere, and over the next five years, hyper-connectivity will give financial institutions the opportunity to use it

Big data analytics, sensor technology and the communicating networks that make up the Internet of Things will allow insurers to anticipate risks and customer demands with far greater precision than ever before

1. BEAT THE CURVE 2019, TEAM ALAB INDIAN INSTITUTE OF MANAGEMENT Ranchi CONTENTS Integration of technologies for Business Transformation 1 Value Drivers to create a superior customer experience 2 Creating technology driven solutions 3 ALEKHYA K || ABHISHEK ASHOK GAIKWAD

2. Consumers now compare financial institutions to digital leaders across all industries, as well as to their industry peers, and they are falling short Over the next three to five years, digital efforts will advance in areas as diverse as robo -investing, automation of consumer lending and clearing and settlement of cash and securities transactions Institutions will need to balance the need for separate ‘change the bank’ transformation teams with the inevitability that digital will become the platform The data is everywhere, and over the next five years, hyper-connectivity will give financial institutions the opportunity to use it Big data analytics, sensor technology and the communicating networks that make up the Internet of Things will allow insurers to anticipate risks and customer demands with far greater precision than ever before 1 2 3 4 The era of mass customisation Smarter service, smarter sales Rethinking the service architecture Thinking machines AI-based client advisors, where the AI engine is primed with the entire product manual, past call history, policy and procedures guidelines, and more, to provide context- based service to their customers. 1. Visualisation layer 2. Application layer 3. Analytics layer 4. Data lake layer financial institutions use cloud-based software-as-a-service (SaaS) applications for business processes that might be considered non-core, such as CRM, HR and financial accounting. They also turn to SaaS for ‘point solutions’ on the fringes of their operations, including security analytics and KYC verification ‘Change the bank’ becomes the bank 1. Integration of technologies for Business Transformation

3. Adopting an aggressive SaaS-based model The concept of service-oriented architecture can be used more broadly than ever, starting with how systems are linked. Cloud-based platforms will allow financial institutions to bring innovations to market quickly and test and adapt as they go. These developments provide many opportunities to reduce costs, through economies of scale and new application support models. Deploy robotics and AI-based automation Understand the natural limits of artificial intelligence Use the power of analytics to give a customer more

4. Architecture to connect to anything, anywhere The FinTech trends that we have discussed in this paper, from the cloud and peer-to-peer transactions to customer intelligence and cyber-security concerns, all rely on the rapid transmission and assimilation of data Here are just a few of the endpoints that will need to coexist and cooperate: Enterprise databases, data warehouses, applications and legacy systems & Cloud services Business-to-Business (B2B) connections, linking to comparable systems at partners and suppliers Business-to-Consumer (B2C) connections, linking to apps, wearables and mobile devices at an individual user level Bring-Your-Own-Device (BYOD) connections, using an enterprise mobility strategy to link to employees and contractors Third party ‘big data’ sources and IoT sensors

5. Scalable machine learning platforms to generate fraud alerts and mitigate cyber risk Real time Fraud Analytics Automation of the regulatory compliance, transactional testing, and dispute management to reduce manual work Robotic Process Automation Collect KYC data, automate account opening forms and identify customer needs promptly. Digital On-boarding Contactless mobile wallets & data partnerships with merchants lead to contextualized offers based on asking the right questions Personalized Customer engagement CFPB compliance and KYC/AML investments lead to better “voice of customer” measurement and customer experience Compliance Investments Real-time transaction graph analysis provides insights for merchants to manage cashflows, inventory and service levels Real-time transaction flow 2. VALUE DRIVERS TO CREATE SUPERIOR CUSTOMER EXPERIENCE

6. 2. VALUE DRIVERS TO CREATE SUPERIOR CUSTOMER EXPERIENCE Currently the digital transformation in the banking sector is happening through digitisation of individual channels such as payments, credit etc separately Each channel needs its own workflows and other supports, i.e the same functionality is created multiple times The end result distributed to channels that don’t relate to each other. A single channel for the entire customer journey acting as a central hub can better track every customer touch point central single channel platform for digital banking to create customer interactions across multi-stage touchpoints Deploying agile processes Hyper personalization

7. Establishing a Digital screen for self service with a representative for any help if needed Schedule a personal appointment with the bank representative for a virtual meeting Accessible video chartrooms to interact with bank representatives Document readers on the video meeting platforms for ready access of the rules and data 02 03 04 01 1.Digital Screen Extended hours of remote service through a virtual representative . 3. CREATING TECHNOLOGY DRIVEN SOLUTIONS A survey conducted by deloitte experts suggests that customers prefer extended service from the banking sector People visit banks for higher ticket services like availing loans and understanding serious transactions, However such transactions if also made virtual are more preferred A digital screen a solution for such customer needs 01 02 03 04

8. 2.Fusion Card A single electronic card solution for all customer transactions 80 % of the respondents say… Based on the 5 in-depth interviews conducted by us amongst the people of different age groups, for 80% of them the biggest fear is not having the right card while shopping “Different retailers offer discount on different cards, its too cumbersome to carry all” “We cannot memorize all card numbers, pins and it is difficult to open each card for specific transaction” “We have a lot of membership cards but never have it handy when needed” Digital information of multiple cards can be fed into the fusion card using the mobile app for scanning the card Basic details such as the credit limit, balance and current offers can be accessed through the mobile app A common pin is saved to access all the cards and a particular card is selected through the mini e-paper touch screen on the card and the pin is entered on the screen Transaction is completed by swiping the fusion card like any other card How does it work? The card works only in the Bluetooth range of the mobile where the app has been installed All transactions can be tracked through the common mobile app Partnered bank is informed immediately in case of any discrepancy in the transaction How is security ensured? The electronic card with an e-paper screen Micro portable card charger powered with battery A mobile app to support the transactions through the card All credit cards, debit cards and retail cards can be accessed What does the solution include? 3. CREATING TECHNOLOGY DRIVEN SOLUTIONS