Future of Business Banking
Global Deloitte Perspective
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The Digital Wave of Disruption
Deloitte believes that the wave of digitization re-shaping the SME & BB market is starting to impact the mid and large corporate segment today
Digital disruption across segments
Key observations – BB/ SME
Level of digital / automation maturity
High
S T R O N G F O C U S O N C U S TO M E R N E E D S &
EXPERIENCE
S I M P L E , TA R G E T E D P R O P O S I T I O N S
T H I R D PA R T I E S L E V E R A G E D F O R S P E E D &
ACCURACY
Key
ROLE OF DELIVERING PERSONAL SERVICE
RE-IMAGINED
Current level of digital maturity
Low
Projected level of digital maturity
M O D E R N , D I G I TA L T E C H N O L O G Y S TA C K
BASED ON MICROSERVICES & CLOUD
Wave of digital disruption
Non Banking
Retail
Banking
BB / SME
Segment
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Mid-Corp
Large Corp
Digital SME Banking – The ‘New Norm’
Our research and insights from a number of institutions globally shows that most banks are tackling the customer needs of SME businesses with similar digital solutions
The Global Market
So what does this mean?
And how do you differentiate?
There are some regional differences but broadly, most banks are
either delivering, or planning to launch propositions with very similar
characteristics:
If most players are tackling the same customer needs of SMEs
with Digital-First, Digital-Only or Challenger offerings, they are
delivering similar solutions consisting of:
If most institutions are delivering similar propositions and
capabilities, it comes down to traditional levers to drive
competition and differentiation in the market
Digitally-enabled / mobile-only
Competition
•
Quick, easy onboarding in a matter of minutes
•
STP lending up to £300k with fulfilment in < 24 hours
•
Smart Current Accounts with transaction categorization,
money management features, insights and notifications
•
Accounting and Tax integration
•
Invoicing, receipt capture and expense management
•
Intelligent self-service
•
Easy integration with other business management solutions
from 3rd parties and fintech
Account opening in minutes
Digital lending origination
Core banking product-set
Beyond-banking features & services
Integrated servicing
Transparent / subscription pricing
Attractive incentives
Available nationwide
And don’t take our word for it, 3 out of 5 of the large UK banks
are launching new Digital Business Banks and the other 2 are
building new CX and proposition enhancements
Low
Differentiation lever
Speed to market
Impact on competitive position
CX & Proposition
Customer experience
Branding
Pricing and risk appetite
Service Model
High
Iconic branding
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KEY: Overlap with other
banks propositions
Largely the same
No overlap
What's happening in the UK market
LARGE, COMPLEX COMMERCIAL
CLIENTS (Big 5 UK Banks)
Incumbents Response)
SMALL, SIMPLE CLIENTS (Challengers &
Both challengers and incumbents are focusing on building or transforming their commercial offerings; we have insight into the similarities and differences in approach and how they are
thinking about this from an SME and Mid-Large Corporate customer perspective
Full launch of business banking offer for smaller clients including current account,
overdrafts to £150k, automated lending decisions to £250k. Commitment to
deliver 52 new products & services for SMEs, 48 new partners integrated into their
marketplace and subscription based suite of business management tools
Digital-only tool specifically focussed at selfemployed people to help them manage their
business finances (bookkeeping, invoicing &
tax)
New challenger proposition
targeted at startups and
sole traders (account, prepaid card and invoice &
receipt management
A
Transforming key customer
journeys, underpinned by major
investment in data capability
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Beta launch of full service, mobile-first digital
challenger proposition for SMEs. Current
accounts, credit cards, auto-decisioned lending,
insights, notifications and an ecosystem of
partners; all build on a modern, cloud-based
digital platform
Combination of Tide mobile-app and Clearbank solutions offering business customers registration services
(company, tax etc.), cashflow optimisation, credit card acceptance and a number of other features including
integration to accounting, payroll, money pots and improved payment capabilities
New full-service SME proposition funded through
BCR covering current account, credit cards, full
scale lending, FX, trade and digital tools to help
customers run their business
Limited release business banking account
with money pots, accounting integration,
insights and payment capabilities
B
Re-engineering the Customer
Journeys; extensive
automation, AI analytics
C
D
New core banking platform
to enable enhanced
products and services
Optimise core products and
propositions integrating best of
breed platforms
SME offering focussed on core
banking products, built on an
entirely new technology stack
(modern cloud-based core
banking) and integrated with
existing branches
E
Modernising product platforms,
and pushing digitisation to
more complex customer needs
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The Alpha Platform
We have built a Digital Banking Accelerator that we call the Alpha Platform. The objective of the accelerator is to provide a number of key
building blocks that are required to deliver a modern Digital Banking platform and a customer proposition built on top. Alpha can reduce
delivery effort by about 50% to launch a new customer proposition to an Alpha community within three months.
WHAT IS THIS
A Technology Platform
Alpha‘s core technology platform is a set of pre-integrated cloudnative technology components covering core tech platform
capabilities like integration, security, operability, scalability and
engineering.
Functional Accelerators
We have built the platform to contain loosely coupled functional
modules to accelerate delivery, with the ability to switch out certain
products with minimum need for reintegration
The Vault
We have a delivery approach and methodology that sits around Alpha
including the know-how of how to run your business on a modern
technology platform
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WHAT ARE THE BENEFITS
Focus on your USP
Alpha deals with the challenges below the waterline; this allows you to focus on
launching customer propositions and new financial products
Speed to market
Accelerated time to market by launching an Alpha release to customers in
production within three months and constantly iterating towards a MVP
Cost to deliver & run
Technology innovation and modern tooling reduces development and run costs by
leveraging the cloud and open-source technologies
Quality by design
Bank-grade cyber security built to be regulatory compliant and protect data. A
battle hardened platform in use at other banks
6
The Technology Platform
Pre-integrated, ready to install cloud-native accelerators leveraging modern
architecture to provide a comprehensive delivery capability that supports modern
engineering practices and integration back to legacy systems.
Integration
Operability
Designing with modularity and flexibility to enable
continuous improvement and launch of new
propositions
A low cost, lean and efficient operational capability
operating in real-time.
Data Catalogue
Real-time & event driven
API Gateway
Microservices
Workflow
Content Management
Platform
monitoring
App usage
monitoring
Customer
notifications
Risk & Reg
reporting
Business
reporting
Security and Compliance
Scalability
Applying ”security-by-design” to meet financial institutions
standards for privacy, integrity and regulatory compliance
Building from a set of common components, which
support scalability of customers journeys, data and
users
User: I&AM and entitlement
management
Container deployment, scaling and
management
Platform: Cloud and container
security
Cloud infrastructure
Build and Release
Driving agility throughout the end-to-end SDLC.
DevOps tools and processes
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Functional Accelerators
…
Onboarding
Cards and Payments
Multi-director and Retail onboarding process supported
by OnFido for KYC checks
Modern payment and cards platforms
Virtual and physical card issuing
Services with the core of customer and employee journeys ready to to be configured to
your business context, products, brand and proposition. Loosely coupled and
exchangeable Fintech providers to support journey requirements through nonproprietary API adapters.
Know your customer checks
Payments
Multi director workflow management
Rule based compliance checks
Artificial Intelligence
Transforming the customer experience through new data,
insight and customised experiences
Core Banking
Core systems integrated to provide financial products, reporting
and ledger integration
Categorisation
Insights
Orchestration
SaaS banking engine
Open Banking account aggregation
Other banking modules
Data
Leveraging an easily integrated industry standard extendible
data architecture
Search and analyse data efficiently
Real-time data streaming
Lending
Customer Engagement Platform
End to end management of the lending journey as a service
with distinct module offerings
A platform to manage the employee's interaction
with the customer
Decision Making incorporating Risk and Fraud
Customer Servicing Cases
Loan Activation and eSignature technology
Chat channel for customer communications
Loan Management System
Loan servicing and communication
720 degree view of the customer
Customer Notifications
Native push
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SMS
The Vault
…
The Vault is a collection of artefacts which can be used to imagine, deliver and run your
new customer propositions on the Alpha platform.
Technical Designs
Delivery
Methodology
Deloitte’s Agile methodology to Imagine, Deliver and Run
the bank of tomorrow
Documentation
Suite of existing requirements for
building standard Digital components
and APIs documented
Agile PMO and Reporting
Integrated tools to provide detailed Agile delivery metrics
Platform & Application
Architecture
Tooling
Best of breed tools and team communication guidance
Physical, Security &
Data Architectures
Research & Personas
Based on field research a set of documented personas and
associated qualitative and quantitate research
IT Operations
Existing IT operations at the Bank can be integrated into
the AWS native CloudWatch logs, metrics an d events to
leverage existing tools and processes. Or use the set of preintegrated Alpha tools
Business Operations
Increased levels of customer self service and straight through
processing is giving Banking Operations functions an
opportunity to reinvent itself, digital-first.
Digital First Operations & Operating Models
Event Management and IT Operations Control
Service Blueprint Templates
Access Management
Operations User Story Templates
Facilities Management
Enterprise Agility Frameworks
Problem and Technical Management
Application, Incident and Request Management
Integration with existing IT Operational tooling
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