Digital disruption in Finance

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  • Digital Transformation

    Digital Disruption

    in finance

    June 2015

    jo@dearmedia.be / @jcaudron / +32 475 43 80 98

    mailto:jo@caudron.com

  • AllDigitalNow

    we are a digital consulting company

    founded in 2009 we work for large European

    clients

    we have a strong vision on the impact of digital and act accordingly

    we are advisors, writers, coaches and entrepreneurs

  • @jcaudron

  • Digital disruption is real. Expect a smack in the face

  • who is your

  • Waves of Digital Disruption

    1995+ Music Photography Video Rental

    2010+ Print Media TV Travel HR

    2015+ Finance Healthcare Automotive Retail Education Telco

    2020+ All Safe havens will be subject to digital disruption

  • @jcaudron

    Disruption

    Modeling

    Transformation

    You have a choice

  • @jcaudron

    What can we learn?

  • The Glass House

    Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

  • Transparency, trust, authenticity,

    Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House

    google.com/trends/

    https://www.google.com/trends/

  • Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House

  • Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House Accountability

  • Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House

    Bi-directional

  • Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House Simple, remember these guys

    simple.com Humanization

    Transparency

    https://www.simple.com/

  • Transparency

    Accountability

    Proximity

    Responsiveness

    Bi-directional

    Humanization

    Authenticity

    The Glass House New transparent technologies like the Blockchain

    blockchain.info

    https://blockchain.info/

  • Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    The Package

  • Angry Birds Twitter, Facebook

    Newspaper Website

    CNN online / app

    Blogs

    Vertical sites and specialties portals

    Yelo App Boxee

    Spotify

    Sporza.be

    LinkedIn, Monster, ...

    eBay

    Pinterest, blogs

    Weather Pro (iPhone)

    Traffic: Waze + iCoyote (iPhone)

    YouTube

    Twitter, Facebook

    RSS

    Breaking news

    In-depth analysis

    Services

    Weather

    Classifieds

    Jobs

    Sports

    TVFun

    Specials

    Discovery

    culture

    Trends & Lifestyle

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    The Package Unbundling

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    Unbundling of banks

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    PayPals simple and social payments app

    venmo.com

    https://venmo.com/

  • Personalized pricingThe Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability metromile.com

    https://www.metromile.com/

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    Rebundling of health insurance with personalized lifestyle improvements

    zoomcare.com/health-insurance

    https://www.zoomcare.com/health-insurance

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    Subscriptions & packages in healthcare insurance

    hioscar.com

    https://www.hioscar.com/

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    Exquise user experience

    m.gobank.com

    https://m.gobank.com/

  • The Package

    Monolithic vs. atomic

    APPification

    Long Tail

    Personalized

    Experience

    Speed

    Price

    (Self-)service

    Scalability

    Scalability

  • The Frog

    Bypassing

    Virtualization

    Fragmentation of touchpoints

  • Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog Bypassing

  • Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog Other industries are getting into finance

  • Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog Bypassing of overdrafts through better rates and no waiting times

    koalaboox.com

    http://www.koalaboox.com/

  • Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog Bypassing of stockbrokers

    robinhood.com

    https://www.robinhood.com/

  • Bypassing money transfer fees

    Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog

    transferwise.com

    https://transferwise.com/

  • The People bypassing banks, Bitcoin is for real

    Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog

    goabra.com

    https://www.goabra.com/

  • Bypassing

    Virtualization

    Fragmentation of touchpoints

    The Frog Bypassing of money transfer companies

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper Product simplification will allow for new gatekeepers

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper New generations want new gatekeepers

    millennialdisruptionindex.com

    http://www.millennialdisruptionindex.com/

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper FinTech investments tripled in 1 year

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper They are afraid, are you?

    shareholder.com/downloads/ONE/JPMC-AR2014-LetterToShareholders.pdf

    http://files.shareholder.com/downloads/ONE/15660259x0x820077/8af78e45-1d81-4363-931c-439d04312ebc/JPMC-AR2014-LetterToShareholders.pdf

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper New gatekeepers

    etoro.com

    http://www.etoro.com/

  • New gatekeepers in retirement spending

    myabaris.com

    New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper

    https://www.myabaris.com/

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper Rebundling all methods and channels into one experience

    adyen.com

    braintreepayments.com

    https://www.adyen.com/https://www.braintreepayments.com/

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper Apps integrate payments through stripe, not banks

    stripe.com

    https://stripe.com/

  • New gatekeepers

    Recommendations

    Good is good enough

    Ambassadorship

    The Gatekeeper Good is good enough

    Pay, track, save, loan.

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    PLACE OnlinePoS HybridOmnichannel

    (digital entering PoS)

    (all functions go digital too)

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

    The rise of mobile

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

    27% of global transactions on mobile devices

    adyen.com/home/about-adyen/press-releases/mobile-payments-index-april-2015

    https://www.adyen.com/home/about-adyen/press-releases/mobile-payments-index-april-2015

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

    Empowered Self, Utility, Instant Gratification

    moven.com

    https://www.moven.com/

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

    Utility for better driving behaviour

    axa.com.my/1741/en/useful-links/axa-drive/axa-drive

    http://www.axa.com.my/1741/en/useful-links/axa-drive/axa-drive

  • The Traveller

    Place

    Utility

    Empowered self

    Instant gratification

    New way of working

    Contextual awareness

    Real-time

    KBC wants to keep some offices open at night and during weekends - New way of working

  • The Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

  • The Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    The sharing economy

    audiunite.com/se/service/en_unite.html= 200 euro per maand per persoon

    https://www.audiunite.com/se/service/en_unite.html

  • CrowdfundingThe Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    Civic crowdfunding

    bron: frankwatching

    http://www.frankwatching.com/archive/2014/10/13/hoe-civic-crowdfunding-onze-wereld-gaat-veranderen/

  • Peer-to-peer lending with better ratesThe Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    lendingclub.com

    https://www.lendingclub.com/

  • Guess who are partnering with the Lending Club?The Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    lendingclub.com

    https://www.lendingclub.com/

  • Insurance based on your networkThe Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    friendsurance.com

    inspeer.me

    http://www.friendsurance.com/https://www.inspeer.me/

  • Community for student loans and support

    commonbond.co

    The Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    https://commonbond.co/

  • Group buying your insuranceThe Participant

    Community

    Gamification

    Collaboration

    The power of the crowd

    Sharing economy

    boughtbymany.com

    heyguevara.com

    https://boughtbymany.com/https://heyguevara.com/home

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Internet of Things

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Contactless payments

    This is about data, not money.

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Financial management on your wrist

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Wearables will change our lifestyle

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Credit & insurance through smart device monitoring?

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    The future of car insurance?

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Data, Data, Data!

    finextra.com/news/fullstory.aspx?newsitemid=27366

    http://www.finextra.com/news/fullstory.aspx?newsitemid=27366

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Smart contracts

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    Programmable banks are coming

    programmableweb.com/api/fidor

    http://www.programmableweb.com/api/fidor

  • The Cyborg

    Internet of Things

    Wearables

    Quantified self

    Robotics

    Data

    Monitoring

    New industries for insurance

    bitgo.com

    coverdrone.com

    https://www.bitgo.com/https://www.coverdrone.com/

  • So, back to Digital Transformation

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • Glass House

    Package

    Frog

    GatekeeperTraveller

    Participant

    CyborgTHE WHEEL OF CHANGE

    Use the wheel to:

    Spot and understand thedynamics of digital

    disruption

    Analyse the impact on your industry and business

    Create a future vision and write a transformation strategy for your company

    Build a roadmap that gets you there.

    Sold in 28 countries

  • @jcaudron

    Its no longer about digital, its about business

    Corporate (comm)Strategy

    Digital Strategy

    CompanyStrategy

    Digital World

  • @jcaudron@jcaudronDigital Transformation Modeling

    From ... ... to

    The Business

    Digital (at the sideline)

    Digital in the core

  • @jcaudron@jcaudronDigital Transformation Modeling

    From ... ... to

    The BusinessDigital (at

    the sideline)

    From ...

    The Business

    Digital (at the sideline)

  • @jcaudron@jcaudronDigital Transformation Modeling

    From ... ... to

    The BusinessDigital (at

    the sideline)

    Digital in the core

    From ...

    The Business

    Digital (at the sideline)

    Digital in the core

    Digital in the core

    Digital in the core

  • @jcaudron@jcaudronDigital Transformation Modeling

    From ... ... to

    The BusinessDigital (at

    the sideline)

    Digital in the core

    From ...

    The Business

    Digital (at the sideline)

    Digital in the core

    Digital in the core

    Digital in the core

  • @jcaudron@jcaudronDigital Transformation

    TV

    Rad

    io

    Prin

    t

    Billb

    oard

    s

    DM

    Dig

    ital C

    hann

    els

    From ... ... to

    Sale

    s

    Mar

    ketin

    g &

    Com

    mun

    icat

    ion

    Serv

    ice

    & S

    uppo

    rt

    HR IT

    PR &

    Ext

    erna

    l Com

    mun

    .

    R&

    D &

    Ent

    erpr

    ise

    2.0

    Digital Transformation

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • If you can't understand the new world of digital, fire yourself.

    Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the

    board of directors. If the board has a low digital IQ, the company

    will have a low digital IQ

    George ColonyCEO Forrester Research

    So, where are you? How digital is your

    company?

    Digital Leadership Assessment

  • The ideal situation

    CEOIdeally your CEO is the digital lead

    CIO COO CbsOSalesMkt

  • Outside world

    Digital Network

    Digital Officers

    DIGITAL OFFICE

    You need Digital Leadership, on all levels

    CIO COO CbsOSalesMkt

    CDO

    Virtual Digital Leadership Team Digital Leads

    Board of Directors

    Shareholders

    CEO

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • The Classics The Converted The Digital The Ruptured

    (mentally) older generation that will not go digital soon

    no longer open to changes brought by digital

    they make you stretch the traditional business as long as possible

    slowly getting involved with digital and embracing it.

    they expect the digital services to be a translation of the traditional services.

    most of the digital investments today are focused here, but this is mainly fixing the basics

    still knows the old business models and logic, but that is already adopting a new behaviour and new business models and services.

    first adopters of entirely new business models (cfr. Netflix, Uber, ). Invest in this too

    raised with new concepts, with no recollection of the old models

    use a broad variety of business models and technologies

    digital natives, the children that grow up with tablets, apps and everything on-demand.

    Traditional modelTraditional channels

    Traditional modelsDigital channels

    New modelsDigital channels Everything new

    Incumbents (you) Challengers (them)

  • Different types of innovation

    The Factory The Guesthouse The Garage

    Incremental innovation Development of need to have

    digitals projects and technology

    Working on the existing foundation of the company

    Follows general procedures and regulations

    Slow

    Change projects Small and dedicated project-teams, focused

    on in-house innovation

    Limited independency: they are an (internal) supplier of the factory

    Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture

    Breakthrough innovation Small dedicated teams focused on innovation Autonomous operations and decisions Possibly separate entities Focused on agile and rapid development and roll-

    out of ideas in a stand-alone model

    These can be grass-root internal initiatives or acquisition of interesting targets

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • @jcaudronDigital Transformation

    From ... ... toFrom ...

  • Create your own Digital Transformation vision and plan1

    Create Digital Leadership2

    Innovate in the right place(s)3

    Build the Transformation Fleet4

    Change the culture5

  • @jcaudron

    1. The customer always

    decides

  • @jcaudron

    2. All things you do must start from a

    superior experience

  • @jcaudron

    3. From now on, you are an agile and flexible company

  • @jcaudron

    4. You live in a world

    of uncertainty

  • @jcaudron

    5. Always play on the offense instead of

    the defense

  • @jcaudron

    6. Dont be afraid to cannibalize

    your own business

  • @jcaudron

    7. Never, ever, disrespect

    new or small players

  • @jcaudron

    Never, ever, disrespect new or small players

    The customer always decidesAll things you do must start from a superior experience

    From now on, you are an agile and flexible companyYou live in a world of uncertainty

    Always play on the offense instead of the defense

    Dont be afraid to cannibalize your own business

    How far away is this from YOUR business reality?

  • 7 Key Take-Aways

  • @jcaudron

    Disruption is real, deal with it!

    Disruption

    Modeling

    Transformation

    1. Disruption is happening anyway, often without

    your knowing

  • @jcaudron

    Disruption is real, deal with it!

    Disruption

    Modeling

    Transformation

    2. There are methods to understand the

    impact and plan for the future

  • @jcaudron

    Disruption is real, deal with it!

    Disruption

    Modeling

    Transformation

    3. You can take transformation in your own hands, but you will have to start NOW, in order to stay in the drivers seat!

  • @jcaudron

    4. Youll need digital leadership throughout the entire

    organization

  • @jcaudron

    5. You will need to embrace new culture, policies, rules, methodologies, technology,

    processes, attitude,

  • @jcaudron

    6. Youre no longer too big to fail

  • 7. still looking for n7

  • 7. still looking for n7

    Thank you!

    jo@Dearmedia.be@jcaudron00 32 475 43 80 98

    mailto:jo@Dearmedia.be

  • AllDigitalNow

    we are a digital consulting company

    founded in 2009 we work for large European

    clients

    we have a strong vision on the impact of digital and act accordingly

    we are advisors, writers, coaches and entrepreneurs

  • AllDigitalNow

    Our Vision: AllDigitalNow

    All businesses will have to do things in

    a digital way because thats what their

    clients want.

    Even non-digital companies will see

    their business be impacted by those

    who are digital (clients, competitors,

    partners, digital challengers, ).

    There is no way around this, the time

    of not believing is over.

  • AllDigitalNow

    We make companies understand the long

    term impact of digital on their business, what

    this means for their future and how they can

    take digital transformation in their own

    hands.

    We create business strategy, concepts and

    plans for online, mobile, social,

    We are advisors. We do our job in a

    bootstrapped way, mixing high-end strategic

    thinking with pragmatic implementation,

    through thought leadership and

    entrepreneurship.

    AllDigitalNow1

    2

    3

  • Out Now!

    www.digitaltransformationbook.com Available in Dutch and English

    http://www.digitaltransformationbook.com

  • Functional design, wireframing, RFP,

    Social Media set-up, policy, roles, tools, training

    Ambassadorship

    Content Marketing

    Strategy

    Architecture

    Digital Strategy & Concept Development

    Digital Transformation Modeling

    Step 1: Impact, Vision and Ideas

    Step 2: Trendmapping

    Step 3: Digital Transformation

    DearMedia, Digital Strategy & Transformation

  • Digital Transformation

    Dealing with

    Digital Disruption

    June 2015

    jo@dearmedia.be / @jcaudron / +32 475 43 80 98

    mailto:jo@caudron.com