The document summarizes trends in lending and leasing for 2017. Key points include: 1) Firms are consolidating lending platforms and leveraging new technologies like machine learning to optimize credit risk analysis and streamline operations. 2) Lending firms are transforming operations through business process improvement and automation to drive operational efficiency. 3) Banks are collaborating with FinTech firms to innovate and meet customer expectations, especially millennials, who are pushing digital transformation.

1. Lending and Leasing
Trends for 2017

2. 2Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are consolidating their lending channel
platforms to streamline operations
Information in Real-
Time
Cross-selling
Products
Decrease operational
costs
Seamless Connected
Experience
Source: Capgemini Financial Services Analysis, 2016
Enhance Operational
Efficiency

3. 3Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are leveraging new technologies to
optimize their credit risk analysis
Optimize Pricing
Personalized
Products
Decrease
Processing Time
Dynamic Credit
Management
Source: Capgemini Financial Services Analysis, 2016

4. 4Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Lending firms are transforming their operations
for better efficiency
Business Process
Improvement
Effective
Monitoring
Automation
79%
Mortgage lenders
Agree/Somewhat Agree
that industry is
innovating to drive
operational efficiency
2%
Businesses operational
expenses for online
lenders of outstanding
loans compared to 5-7%
for traditional lenders
Source: Capgemini Financial Services Analysis, 2016; Mortgage Lender Sentiment Survey, Fannie Mae, Published July 2016; The path to profitable growth in retail lending, Nucleus Software, Accessed on
Nov 2016 at http://blog.nucleussoftware.com/uncategorized/the-path-to-profitable-growth-in-retail-lending/

5. 5Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Firms are developing direct lending models in
order to deliver positive results
Source: Capgemini Financial Services Analysis, 2016; Preqin Global Private Debt Report, 2016; Asset managers pour billions into direct lending”, Financial Times, accessed on November 2016 at
https://www.ft.com/content/23bc5496-a026-11e5-beba-5e33e2b79e46
Diversifying Money
Supply
Increased Supply
of Capital
Predictable Yield
$18.8
bn
In 2015, Europe focused
direct lending funds raised
$18.8bn in aggregate
capital, a 48% increase
from $12.7bn in 2014
$41.0
bn
In Dec 2015, European-
based fund managers had
$41bn ready to deploy in
direct lending deals,
twice as much as in 2012

6. 6Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Banks are collaborating with FinTech firms to
nurture innovation and meet customer expectations
Diversify Portfolio
Innovation
Reaching Unbanked
and Under-Banked
Segments
Higher Return on
Equity
$19.0
bn
FinTech investments
have increased from
$1.8 bn in 2010 to
$19 bn in 2015
Source: Capgemini Financial Services Analysis, 2016; Digital Disruption, How FinTech is Forcing Banking to a Tipping Point, CITI, Mar 2016

7. 7Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Regulations are picking up pace in the online
marketplace lending
Higher Rates Charged by
Online Lenders
Remoteness and
Anonymity of Online
Transactions
Unconventional Ways to
Assess Creditworthiness
of Borrowers
Variety of Assortment of
Credit Products Adds on
Complexity
Source: Capgemini Financial Services Analysis, 2016

8. 8Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Expectations of millennials are pushing
forward digital transformation agenda
Collaborative Projects
R3CEV Hyperledger Project Ripple (Payments)
91% of millennials use
smart phones to access their
account
92% of millennials would
make a banking choice based
on digital services
Source: Capgemini Financial Services Analysis, 2016; Millennials’ are driving the digital transformation of the banking sector, BBVA, July 2016; Here’s where mortgage companies should invest in tech to reach
Millennials, Mortgage coach, June 2016, https://mortgagecoach.com/heres-where-mortgage-companies-should-invest-in-tech-to-reach-millennials/

9. 9Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Increase in digitization enhances cyber
security concerns
Source: Capgemini Financial Services Analysis, 2016; Cyber Security Market - Global Forecast to 2021, Markets and Markets, 2016; Data breach statistics H12016, Gemalto, 2016; Cyber security: making banking
safer, The Banker, Jan 2016; Cybersecurity Information Sharing Act of 2015, https://www.congress.gov/bill/114th-congress/senate-bill/754
Preventive Regulations
New Authentication
Methods
Partnership with
Specialized Vendors
Specific Roles such as
Chief Information Security
Officer
$202
bn
Estimated size of
cyber security
market in 2021

10. 10Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Streamlining of lending processes by
leveraging smart contract, blockchain, and IOT
Source: Capgemini Financial Services Analysis, 2016
Faster Contract
Execution
Lower
Transaction Cost
Transparency
Better
Compliance
Better Collateral
Management

11. 11Copyright © Capgemini 2016. All Rights Reserved
Presentation Title | Date | Financial Services
Open marketplaces are gaining prominence
Source: Capgemini Financial Services Analysis, 2016
Faster Access to Credit
Increased Access to
Credit
Emergence of New
Business Models
Reduction in Cost of
Operations and Lending

12. 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