With the proliferation of technology, banking customers are living in a connected world with their experience from other industries influencing their expectations from their financial services provider. This has led to an evolving customer-bank relationship necessitating banks to be more customer-centric by embedding themselves in customers’ lives to meet rising customer experience expectations. However, banks have been facing challenges in meeting customer expectations, as they are troubled with legacy challenges both in terms of technology and culture. This document aims to understand and analyze the trends in the banking industry that are expected to drive the dynamics of the banking ecosystem in the near future.

1. Banking Trends for 2017

2. 2Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banking Trends 2017
FinTech firms are Being
Considered as Partners
Rather than Competitors
Banks are Using Open
APIs to Monetize their
Digital Assets and Data
There is a New Shift in the
Banking Business Model
where Banks will be acting
as a Platform to many
FinTech Firms
Banks are Investing in
Cyber Security Systems
with the Increase in Cyber
Threats
Banks are Increasingly
Adapting Public Cloud
Services as it Provides
Flexibility and Agility
Banks are Testing Augmented
Reality to Provide Enhanced
Customer Experience
Banks are Working Together to
Identify and Understand the
Use Cases of Distributed
Ledger Technology
Banks are focusing on
Cognitive Banking to
provide them an Edge over
Competitors
Banks are looking to Increase
their Efficiency and
Productivity by Investing in
Robotic Process Automation
Banks are using Biometric
Authentication Tools to Combat
Identity Thefts and Fraud
Source: Capgemini Financial Services Analysis, 2016

3. 3Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are collaborating with the FinTechs to
drive innovation and meet evolving customer
expectations
59.3%
Banking executives
agree that FinTechs
are setting the bar
higher
77.8%
Banking executives
say that FinTechs
provide opportunity
to partnership
Incubators/
Accelerators
Investing in
FinTechs
Acquiring
FinTechs
Innovation
Labs
Partnering
Collaborating
Source: Capgemini Financial Services Analysis, 2016; World FinTech Report, Capgemini 2017

4. 4Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks using Open APIs with an aim to
monetize and improve customer experience
Monetize
Innovation
Agility
Cost Reduction
Source: Capgemini Financial Services Analysis, 2016

5. 5Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks as a platform will be a complete shift in
the banking business model
One stop shop for
customers
Ability to innovate
Minimal infrastructure
Technology expertise
Increase agility and
efficiency
Source: Capgemini Financial Services Analysis, 2016

6. 6Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Increasing data breaches compelling banks to
strengthen their security systems
25%
Respondents think
cyber risk is the top
threat in financial
services industry
$400
bn
Estimated cost to
business due to cyber
attacks in 2015
$2.1
bn
Is the estimated cost of
breaches in 2019
globally
$202
bn
Is the expected value of
market for cyber
security by 2020
Source: Capgemini Financial Services Analysis, 2016; SYSTEMIC RISK BAROMETER, DTCC, 2016; Cyber Crime Costs Projected To Reach $2 Trillion by 2019, Forbes, Jan 2016,
http://www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#6d85c2f3bb0c

7. 7Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are increasingly moving towards public
cloud-based banking infrastructure
19.4%
CAGR growth in IT
spending for public
cloud service from
2015 –2019E
$6.8
bn
IT spending for
public cloud services
for banking in 2015
Scalability
Flexibility
Agility
Source: Capgemini Financial Services Analysis, 2016; Worldwide Public Cloud Services Spending Forecast, IDC, Jan 2016

8. 8Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
More and more use cases emerge for the usage
of Augmented Reality applications
Source: Capgemini Financial Services Analysis, 2016; https://thefinancialbrand.com/39309/augmented-reality-place-bank-branches/
Enhancing Shopping
Experience
Education and
Recruitment
Virtual Branches and
Advisors
Location Based Services
Cross-sale Opportunities
Enhancing Banking
Experience

9. 9Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are exploring the feasibility of
distributed ledger technologies
Source: Capgemini Financial Services Analysis, 2016; https://www.ft.com/content/eb1f8256-7b4b-11e5-a1fe-567b37f80b64
Collaborative Projects
R3CEV
Hyperledger Project
Ripple (Payments)
Eliminating
Intermediaries
Enhanced
Security
Transparency
Reliable and
Error Free

10. 10Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Cognitive systems are finding application in
almost all banking areas
Source: Capgemini Financial Services Analysis, 2016; http://www.ipsoft.com/wp-content/themes/ipsoft_v2/images/v2/pdf/IPsoft_Tomorrow_AI_enabled_banking.pdf;
https://www.evry.com/globalassets/insight/bank2020/the-new-wave-of-artificial-intelligence---labs-whitepaper.pdf
Front
Office
Customer Facing AI -
Chat bots, Cognitive
Agents
Back
Office
Cognitive Advisors,
Robotic Process
Automation
Support
AI and Cognitive Enabled
Analytics
Complia
-nce
AI Enabled Expert
Systems

11. 11Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are looking increase their efficiency by
investing in Robotic Process Automation
Source: Capgemini Financial Services Analysis, 2016; http://ayehu.com/role-robotic-process-automation-banking-industry/
Increased
Efficiency
Lower
Operational Costs
Productivity
Improvement
Shorter
Processing Time

12. 12Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are using biometric authentication to
combat identity thefts and fraud
Source: Capgemini Financial Services Analysis, 2016; Technology Insight for Biometric Authentication, Gartner, 2016; https://letstalkpayments.com/7-trends-in-biometric-technology-as-it-applies-to-fintech/
$112 bn
Amount identity
thieves have stolen
from US consumers in
past 6 years
80%
Firms will change their
fingerprint biometric
method to combination
with behavioral by end
of 2019
Biological Traits
Behavioral Traits
Combat Identity
Theft and Fraud

13. About Capgemini
Now with 180,000 people in over 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2014 global revenues
of EUR 10.573 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.
Rightshore® is a trademark belonging to Capgemini
The information contained in this presentation is proprietary.
© 2015 Capgemini. All rights reserved.
www.capgemini.com