Industries in Transition:

A Framework for Data-centric

Innovations in Banking

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The banking industry, like many others, is going through
a time of uncertainty with many pressing challenges: 54 %
Customers who would
rising competition from non-traditional competitors, provide their personal data
growing regulatory and compliance requirements, legacy in return for relevant offers

modernization, high customer churn.

The effects of these challenges include: 55 %
• Personal Data: 54% of customers would provide their personal data in return for Boost in banking revenue
relevant offers expected in 2020 from new
opportunities created by
• Open, API-enabled Services: A 55% boost in banking revenue is expected in open API-enabled services
2020 from new opportunities created by open API-enabled services
• Real-time Offers: 54% of consumers expect banks to deliver contextual real-
time offers based on their location
• Rising Startups: $4.7 trillion in annual revenue is being diverted from traditional
54 %
Consumers expecting
financial services companies to fintech startups banks to deliver contextual
real-time offers based on
This ebook captures emerging trends in banking and proposes a strategy for their location
addressing current challenges while continuing to innovate and evolve.

$4.7
Trillion in annual revenue
being diverted from
traditional financial
services companies to
fintech startups

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The Banking Industry: In Transition
Current industry trends and challenges are sculpting the banking
services landscape in unprecedented ways. Leaders have had to
implement and innovate in the following ways:

Modernized Digital Core: Personalization at Scale: Automated Monitoring

Competing with digital-
only banks requires financial
institutions to optimize
operations and transition
to an automated and
cloud-native ecosystem for
improved time to market
and agility.
The goal is to create
engaging experiences by
driving 1:1 personalization for
customers in real time using
the intelligence acquired
across customer data points.
and Alerting:
Banking services are a
critical part of the fabric of
society, and ensuring optimal
performance with real-time
notifications of any significant
event is a necessity.

Detecting Anomalies for Building New Business Agility for Compliance:

Fraud and Abuse:
Growing complexity in
core banking systems and
processes has meant that
detecting and adjudicating
fraud and claims is difficult
and labor intensive.
Models and Ecosystems:
API-enabled partnerships to
realize new revenue streams,
and the growth of neobanks,
have provided both an
opportunity and a threat for
traditional banks.
Evolving regulations mandate
an ecosystem that can
adapt seamlessly to changes
with minimal disruption to
core processes.

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Banking Industry Outlook
Disruptive Technologies:
Neobanks and fintechs can
adopt disruptive technologies
such as API interoperability
and agility while keeping
customer acquisition costs to
a tenth of that of traditional
banks. These disruptors are
forcing financial institutions
to innovate and both
compete and partner with
fintechs to succeed.
An Open Ecosystem:
Embracing an open
ecosystem allows for secure
and accessible services that
can provide better partner
engagement, compliance,
and customer experiences.
Actionable Intelligence:
Monitoring core banking
systems, which are growing
in complexity, is critical for
understanding performance
across asset classes. It
allows for real-time visibility
into critical services such
as loan origination, trade,
hedge accounting, collateral
management, and others.
A Compliance Data
Strategy:
With regulations growing
in complexity, compliance
requires the right data
strategy. Banks that
implement simplified data
accessibility and governance
can gain a clear advantage
while dealing with changes
in policy.
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Digital Success Drivers
Customer Experience:
In certain high growth
markets, 80% of customers
expect their banking
services to be available on
digital channels, making it
imperative that a consistent
and engaging experience
is delivered across
every channel.
Modern Architecture:
Most institutions have
embarked on a cloud journey,
however, it is critical to drive
this transition by modernizing
core banking systems
to a more cloud-native
architecture that involves
adopting new technologies.
Talent Gaps:
The inability to find required
talent for driving change
makes it challenging to
innovate at the pace financial
institutions want to grow.
Process Automation:
Process automation
significantly reduces the
time needed to complete
manual tasks and reduces
costs. Driven by AI, process
automation has become an
important investment.
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Digital Banking Imperatives
To ensure continued relevance and sustainable growth,
companies in the banking industry must invest in
high-potential growth areas, market-leading customer
experiences, deeper customer insights, and world-class
data security. Only then will organizations achieve:
• Technology, disruption, competition, and
resiliency: Compete in every segment of banking,
including retail payments, consumer, and
commercial lending
• Synergy across engagements: Continue to
strengthen synergy across products, the business,
and borders to bring the best portfolio to
all clients
• Smarter work and better outcomes: Build
a strong foundation and continue to evolve,
simplify, and streamline the business to drive
value, efficiency, and return on investment

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Banking Transformation Framework
The banking industry is among the most data intensive.
In the coming years, competitiveness in this industry
will be redefined by the degree of efficiency in
capturing, unifying, and using insights from enterprise
data—for expanding market reach and driving new
revenue opportunities.
At TIBCO, we view transformation through the
framework of Customer Intimacy, Operational
Excellence, and Business Reinvention.

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Customer Intimacy:
The ability to deliver 1:1 personalization
across services has proved to increase NPS
scores 4X. The key to customer intimacy and
long-term value derives from commanding
disparate data and applying insights.

Common use cases include:

Customer Journey
Management

Cross-channel Experience

Proactive Customer Service

Next Best Offer

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Operational Excellence:
Three critical areas constituting operational
excellence are leaner overhead, reduced
organizational complexity, and maximized
percentage of FTEs. The key is to leverage
outcome-based analytics that helps
streamline processes, detect anomalies, and
automate decisions without bias.

Common use cases include:

Risk Management

Trade Surveillance

Fraud Management

Anomaly Detection

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Business Reinvention:
Shrinking margins and rising competition
from fintechs and digital disruptors have
pushed banks to reinvent core processes
and embrace E2E and other business models
such as digital payments, open banking, and
process automation.

Common use cases include:

New Channel Engagement

Cloud Adoption

Intelligent Bundling
and Pricing

Open Banking

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Banking Customer Success Story
“Open Banking is the future, and we created the open
banking platform of the future with TIBCO.”

—Diogo Rodrigues, Head of Digital Transformation, SIBS

Challenges
• Build competitive advantage and prepare for
future requirements, such as the PSD2 regulation
• Create differentiated customer experience with
unique API infrastructure

Solution
• SIBS built a revolutionary open-banking platform
from scratch using the TIBCO platform to
change the way users and institutions in Portugal
do business.

Benefits
• Created a marketplace where banks and other
third parties can find new services and share their
apps with millions of customers
• 24 financial institutions enrolled in the open
banking platform

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Banking Customer Success Story

“We now have the ability to know when the customer

comes in, what they’ve done previously across
multiple channels and can leverage that to continue
the conversation.”

—Gayle Ramsay, Vice President of Customer Analytics

Challenges
Inconsistent customer experience across channels made
it impossible to react to changing customer behaviors
and provide relevant offers in real time.

Solution
The TIBCO integration platform connects diverse
systems, customer attributes, and interactions, and
delivers powerful data virtualizations to customer service.

Benefits
• 30 to 50% reduction in time to market
• Just-right scaling & business success
• 3× greater offer acceptance

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Redefine Banking and Differentiate
Digital technology is forcing banking and financial services companies to redefine
how they market and sell to consumers. Digital is a must, both online and offline,
and only some banking service providers are starting to get that. It is now about
adding value at the front end of the business to drive new revenues by ultimately
differentiating your brand and products.
To learn more about how to embrace digital innovation with more agility, drive
efficiency, and diversify your portfolio, check out tibco.com/solutions/banking.

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