Copyright © SAS Institute Inc. All rights reserved. Building the Strongest Business Model Case studies on Bank & Fintech & SAS in new ecosystem Irene Xu Principal Industry Consultant, Global Banking Practice
Copyright © SAS Inst itute Inc. A l l r ights reserved.
Building the Strongest Business ModelCase studies on Bank & Fintech & SAS in new ecosystem
Irene XuPrincipal Industry Consultant, Global Banking Practice
Copyright © SAS Inst itute Inc. A l l r ights reserved.
BANKING CHALLENGES
ENVIRONMENTALCHALLENGES
ROLE OFANALYTICS
BANK OFTOMORROW
DIGITAL TRANSFORMATION
TRENDS
OPENBANKING
BECOMETRULY DIGITAL
FINTECHFRIENDS
ARTIFICIALINTELLIGENCE
REDUCE LEGACY/COSTS BY CLOUD
REGULATION
Working for today and building for tomorrow
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We believe banking as we know it is “disappearing”.
The financial ecosystem is radically changing, and the survivors will be hyper-intelligent, AI-driven marketplaces built on personalized and trusted customer experiences.
Remaining relevant is critical.
SAS unlocks banking’s vast potential and delivers proven value on your journey to transform.
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The Biggest Threat of all
Source: Citi GPS, <<Bank of the Future>> Mar 2018
Traditional banking is being challenged not by small FinTech startups, but by
established Tech Giants because of ……
Large & captive user base
Low online acquisition cost
Big data customer insights
Internet banking license
Inherent issues within incumbent Banks:Own lots of data, but tends to be siloed, not easy to access, due to regulatory constraint, poor tech stacks, internal structure with product-focused
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The Future of Banking
Source: Citi GPS, <<Bank of the Future>> Mar 2018
The future of banking is an increasingly converged ecosystem where financial services are provided by banks and by platform companies with roots in e-commerce/social media.
How to Stay Relevant?
They have to become FasterThey have to become SmarterThey have to become More efficient
AI & Automation
Big Tech
Core Banking & Cloud
Digital Assets
ABC of Digital Disruption in Finance
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If you want to go fast, go alone.
Bank & Fintech & SAS in CollaborationGuiding principles
If you want to go far, go
together.
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Collaboration: a win-win-win situation
Risk Management
Infrastructure
Regulations
Customer Trust
Economies of Scale
Brand Name
Capital
Banks
Agility
Innovation
Cost Reduction
Customer Experience
New Products
Data Handling
FintechFirms
Bank & Fintech & SAS in Collaboration
SAS
Artificial Intelligence
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Unlocking the strategic value of partnershipsBank & Fintech & SAS in Collaboration
Source: https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.htmlhttps://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm
SAS & ThreatMetrix
can help financial institutions mature
their fraud prevention ability from transaction-centric to identity-
centric.
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Use Case One: ING Smart Working Capital Assistant (SWAC)Bank & Fintech & SAS in Collaboration
Source: https://www.ing.nl/nieuws/nieuws_en_persberichten/2018/juli/ing_introduceert_kunstmatige_intelligentie_applicatie_voor_werkkapitaalbeheer_bedrijfsklanten.html
• SWAC is a web application provided to ING’s Working Capital Solutions customers (mostly SME customers)
• Predict whether a debtor of a SME customer will be able to pay their debt in next 90 days
• Forecast the cash flow from the receipts in the upcoming period
• Various notifications related to the existing financial health of the client
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Use Case Two: SAS and ThreatMetrix® on Identity IntelligenceBank & Fintech & SAS in Collaboration
Source: https://www.tmcnet.com/usubmit/-sas-threatmetrix-team-up-fight-identity-fraud-/2018/10/22/8837874.htm
SAS and ThreatMetrix team up help creditors better establish the “WHO” behind online credit applications.
• By 2020, Digital business will account for 25% of the world’s economy
• Traditional forms of customer authentication are insufficient
• The unfavorable impact to customer experience due to high false positive and slow in verification
• Account opening as most vulnerable stage of customer journey. 1 in 9 new online account applications fraudulent
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Building the strongest business model for future successBank & Fintech & SAS in Collaboration
Technology is becoming a USPData is the Gold Mine
Competitive advantage lies in Trusted Analytics
Transforming a world of data into a world of intelligence.
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INCREASED REVENUEPer Customer
IN-STEP WITH REGULATORSFit for the Future
COMPETITIVE COST BASE
Improved Performance
Outcomes
CUSTOMER INSIGHT DRIVEN
OPEN APIs 3rd PARTY USE OF DATA COMPLIANCE
The Digitalized Bank
Analytics Drives the Bank of Tomorrow
INFRASTRUCTUREIN CLOUD
AUTOMATEDPROCESSES
ARTIFICIAL INTELLIGENCE
REAL-TIME DECISIONING
Enablers
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What does it take to build an analytical organizationAnalytics Drives the Bank of Tomorrow
Source: Gartner Top 10 Data and Analytics trend 2019, https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo
Augmented analytics, continuous intelligence and explainable artificial intelligence (AI) are among the top trends in data and analytics technology identified by Gartner in 2019
Banks globally demand data and analytics talents – some build war chest to acquire technology talents, others invest in technology venture or incubator
Advanced analytics/AI seen as competitive advantages that enable banks to improve customer experience, enhance sales & revenue, reduce losses and business costs, etc
Focus on Digital Transformation must be sponsored by senior leadership in the bank, who demand data-driven approach for decision making as integral part of the business strategy
Data/ Analytics
Technology
Talent Development
Executive Sponsorship
Business Adoption
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What does it take to build an analytical organizationAnalytics Drives the Bank of Tomorrow
Augmented Analytics
Augmented Data Management
Continuous IntelligenceDecision automation
Decision support
NLP/Conversational Analytics
Natural language processing
Visualization
Explainable AI
Data FabricEDW, Data lake
Source: Gartner Top 10 Data and Analytics trend 2019, https://www.gartner.com/en/newsroom/press-releases/2019-02-18-gartner-identifies-top-10-data-and-analytics-technolo
Data/ Analytics
Technology
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What does it take to build an analytical organizationAnalytics Drives the Bank of Tomorrow
Business Adoption
•Business domain knowledge (industry specific, business-driven)•Customer engagement, life-time
value• 3P: product, process, profitability•Analytics operationalization•Business effectiveness &
measurement•Analytics innovation through
continuous test & learn
• Your text here
Executive Sponsorship
•Direct access to senior leadership management, seat at the table•Command Data-driven decision
making process•Be integral part of business strategic
formation• Part of governance council with
Approval authority• P&L accountability•Dare to challenge the status quo
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Starting your analytics journeyAnalytics Drives the Bank of Tomorrow
Impactful Repeatable Sustainable
✓ Short project within 6-12 months, to build AI/analytics solution led by internal teams, could be possibly leveraging external AI/analytics resource to accelerate
✓ Project should be technically feasible, having trusted analytics advisor do due diligence prior to kickoff will increase your conviction in its feasibility & execution
✓ A clearly defined and measurable objectives that create business value
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What to expect a 3-Year Analytics JourneyAnalytics Drives the Bank of Tomorrow
Common Data Platform
Analytics Capabilities
Channel Integration & Automation
Real-time Decision Making
Business Optimization
Year 1
Year 2 & 3
Formation of Business/Customer
Information Strategy
Visual Data Mining & Machine Learning
(including open source)
OMNI-Channel Marketing through
use of APIs
Contextual Marketing, Real-time Scoring,
Fraud Detection
Customer Journey Optimization, Credit
Optimization
sas.com
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Irene XuPrincipal Industry Consultant, Global Banking Practice