Transcript Presentation Title

Emerging Trends Radar for
Financial Services
Kristin Moyer
Industry Advisory Services:
Banking & Investment Services
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
The Most Important Emerging
Technology Trend in 2012:
From Siloes…
…To a Nexus of Forces
NEXUS
Key Issues
•
What is the financial services outlook for 2012?
•
What is the emerging trend radar for financial
services?
•
How can Deloitte increase financial services
revenue in 2012?
Banking & Investment Services CEOs are
Gloomy About 2012 Prospects
IT Spend Forecast, Total Spend, 2011-2013 ($USD Millions)
$500,000
$400,000
$300,000
$200,000
$100,000
$0
$424,847
$117,443
2011
$120,964
2012
$455,866
$126,574
Total Spend
Professional Svcs
2013
IT Spend Forecast, Growth, 2011-2013 (%)
8.00%
6.00%
$436,622
5.65%
6.17%
4.41% 4.64%
4.00%
Total Spend
Professional Svcs
2.77% 3.00%
2.00%
0.00%
2011
2012
2013
Source: Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2009-2015, 4Q11 Update
Life and P&C Insurance CEOs are Not as
Gloomy, but more Conservative in 2012
IT Spend Forecast, Total Spend, 2011-2013 ($USD Millions)
$200,000
$172,873
$179,799
$187,669
$150,000
$100,000
$43,470
$50,000
$45,252
$47,379
Total Spend
Professional Svcs
$0
2011
2012
2013
IT Spend Forecast, Growth, 2011-2013 (%)
8.00%
6.38%
6.99%
6.00%
3.99% 4.10%
4.00%
4.39% 4.70%
Total Spend
Professional Svcs
2.00%
0.00%
2011
2012
2013
Source: Forecast: Enterprise IT Spending for the Insurance Market, Worldwide, 2009-2015, 4Q11 Update
Financial Services CEO 2012 Business
Priorities
Business Priorities
Ranking of Business
Priorities from CxOs
All
North
America
EMEA
<$10
Billion
>$10
Billion
Increasing enterprise growth
1
1
4
1
1
Reducing enterprise costs
2
4
1
4=
2
Implementing finance and controls
3
3
2
8=
3
Improve governance, compliance, risk and
security
4
2
3
8=
4
Expanding into new markets/geographies
5
5
5=
2=
5
Consolidating, standardizing and streamlining
operations
6
7
10=
4=
9=
Customer focus
7
10=
5=
10=
7
Increase profitability
8
10=
7=
13=
6
Implement enterprise strategy
9
8=
12=
2=
13=
Execute mergers and acquisitions, and
partnerships
10
12
7=
12
8
Implement new and improved technology
11
6
15
7
11=
Talent management and development
12
8=
14
13=
9=
Improve efficiency
13
13=
12=
4=
15
Attracting and retaining customers
14
13=
7=
10=
13=
Improving business processes
15
15
10=
13=
11=
N = 130
CEOs/CFOs are Using a Different Play
Book than CIOs in 2012
Business Priorities
Ranking of Business Priorities
From CEO/CFO and Financial Services
CIO Surveys
CEO/CFO
CIOs
Increasing enterprise growth
1
1
Reducing enterprise costs
2
3
Implementing finance and controls
3
10
Improve governance, compliance, risk and security
4
8
Expanding into new markets/geographies
5
13
Consolidating, standardizing and streamlining
operations
6
15
Customer focus
7
-
Increase profitability
8
-
Implement enterprise strategy
9
17
Execute mergers and acquisitions, and partnerships
10
23
Implement new and improved technology
11
20
Talent management and development
12
18/19
Improve efficiency
13
6
Attracting and retaining customers
14
2
Improving business processes
15
11
Emerging Trend Radar Screen for
Financial Services
more than
10 years
Technology
Societal
Extreme
Individualization
P2P Insurance,
Banking
Business
Employee-less Financial
Institution
(Artificial Intelligence)
5 to 10
years
Payment
Services Hub
Application
PaaS
Radical
Transparency
Hyperdigitization
Customer-level
P&L
E7 FI Assets Eclipse G7
2 to 5
years
Customer Control
(“My ‘Bank’
Card”)
Application-less
Financial
Institution
Complementary
Currencies more
Important than Fiat
Currencies
Big
Data
Component-based
Core Applications
Open Development
Platforms
FS-specific
Social Commerce
App Stores
PFM
Mobile
less than 2 years
to mainstream Context-Aware
adoption
Computing
Value Added
Services Revenue
Model
Cloud Financial
Services
Re-engineering
Profitability
Micro-products
Incorporate Personal Financial
Management in all Products and Services
Next Two Years
Wells Fargo: My Spending Report
Experiment with Open Development
Platforms to Pursue New Opportunities
Next Two Years
Use FI App Stores to Rapidly Deploy New
Products and Services
Next Two Years
Your Mobile Strategy is a Ticking Time
Bomb
Next Two Years
Your financial institution may have a mobile
banking/insurance strategy and mobile
payments strategy
But without an enterprise mobile financial
services strategy…
Your firm doesn't have a strategy to drive real
revenue-leveraging mobility
Create Context-Aware Experiences
Complex
Customer
Technology
Environment
Customer Location
Next Two Years
Customer Location : physical, social and virtual location and
context, their identity or role at that time.
Customer Technology Environment : choice, and
availability (physical, battery life, etc ), operational
competence, for both the technology and network
Customer Need : customer objective, intent or desired
outcome for their financial services need
Simple
Consumers
Unbanked/
Underbanked
Merchants
SMBs
Commercial
Customers
Sales and
Marketing
Account
Services
Security
Transaction al
Services
Business
Intelligence
13
Customer
Need
Complex
Deliver Services at the Nexus of Mobile,
Social, Cloud and Information
Next Two Years
The Internet of Everything is Here…
= connected asset
everything
= URL
information
physical
objects
people
= WWW &
web services
systems
virtual entities
places
= Profile
w/ social
graph
= Activity stream and
check in
Case Example: SFpark — Smart Parking
Meters
Next Two Years
Source: SFpark
Case Example – ICICI Bank
Five Things Deloitte Can Do to Increase
Financial Services Revenue in 2012
Financial institutions use IT to thrive amidst turmoil in 2012 if they:
• Help CIOs close the disconnect with CEOs/CFOs
• Avoid wasted IT investments
• Develop an enterprise mobile financial services strategy
• Create context-aware financial services experiences
• Harness the opportunities (and address the challenges!) at the
nexus of cloud, mobile, social and information
Competitive Landscape for Deloitte’s Five
Opportunities (Discussion Draft)
Accenture
CapGemini
Deloitte
E&Y
IBM
KPMG
PwC
CIO
disconnect
Strong business
consulting
capabilities
Solid business
consulting
capabilities
Strategy a
strength
Business-led,
IT-enabled
approach
Not as strong
reaching CIO
buyers
Needs to
improve traction
at CxO level
People, change
and business
effectiveness are
strengths
Not as strong
with IT
Strategy a
strength
People, change
are strengths
CxO
relationships
Avoid
wasted IT
investment
Strong with EA
Strong business
ops improvement
Core banking
offering
Could use a
stronger market
understanding
Solid business
ops improvement
Technology
services are a
strength
Strong business
ops
improvement
Solid business
ops
improvement
Weak EA
IT strategy a
strength
Strong EA
capabilities
Strong business
ops
improvement
Not as strong
with EA
Solid business
ops
improvement
capabilities
Solid business
ops
improvement
Not as strong
with EA or
technology
overall
Enterprise
mobile
strategy
Strong – views
mobile as one of
the top strategic
growth engines of
company
Acquired
Backelite (mobile
apps, etc.)
Building a Mobile
Direct Store
Delivery solution
Strong –
acquired
Ubermind
Has mobile FS
experience
Lacks
compelling
offering
Strong – has
experience with
mobile banking
and payments
Lacks
compelling
offering
Lacks
compelling
offering
Contextaware
computing
Channel
experience
through core
banking
Moderate frontoffice capabilities
Potential here
given strengths
in mobile and
nexus
Weak mobile
capabilities
Strong
technology skills
and R&D will be
a plus here
Weak mobile
capabilities
Weak mobile
capabilities
Nexus –
cloud,
social,
mobile,
information
Fairly strong with
analytics;
integrating its
Interactive
business into its
business
consulting group
would be powerful
Could use more
investment in
digital capabilities
– but fairly
pervasive use of
analytics
Very strong with
BI services
Some SaaS
offerings
Already
pursuing nexus
as market
opportunity
Should invest
more in BI, but
has acquired
two firms
recently in this
area that should
help
Very strong with
BI services,
cloud
Lacks a focused
and integrated
approach for
digital offerings
Has programs
on how cloud
computing
enables new
business models
BI services could
be improved
Fragmented
approach to
digital business
BI services could
be improved
(recent
investments
should help)
Emerging Trends Radar for
Financial Services
Kristin Moyer
Email: [email protected]
Phone: +1.303.384.0131
To schedule a client inquiry, please contact:
Email: [email protected]
Phone: +1.203.316.1122 or 44 1784 26 7997
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.