Banking Transformation: Digital Core Redefines the Future

2. WEBINARDigital Core Banking Redefines Banking Transformation Jost Hoppermann, Vice President, Principal Analyst May 31, 2016. Call in at 10:55 a.m. Eastern time

4. Agenda • Obstacles for banking platform transformation • The current state of application landscapes in banks • Introducing digital core banking • Outlook

5. Agenda • Obstacles for banking platform transformation • The current state of application landscapes in banks • Introducing digital core banking • Outlook

6. Banks need state-of-the-art digital banking to remain competitive.

7. 81%

8. 10% -11%

9. The Potemkin effect in banking

10. Personal view

11. Ancient core solutions

12. Risk

14. Lock-in

15. Agenda • Obstacles for banking platform transformation • The current state of application landscapes in banks • Introducing digital core banking • Outlook

16. Modern business technology applications are systems of systems Systems of engagement Cards management Core banking Lending Mobile banking Payments Systems of insight Systems of automation Systemsofrecord

17. A banking platform architecture . . . with traditional core banking Mobile banking Omnichannel banking “Middleware” (ESB, BPM, rules engine) SoE Traditional core banking (with hard-wired business logic and data stores) SoR Data warehouses and data marts

18. Agenda • Obstacles for banking platform transformation • The current state of application landscapes in banks • Introducing digital core banking • Outlook

19. Digital core banking is evolving B2x(APIs) UX layer Aggregation layer The new “core” Banking entity layer Data maintenance layer Traditional core banking Short-term data stores Long-term datastores

20. A banking platform architecture . . . with traditional core banking . . . with digital core banking Mobile banking Omnichannel banking UX layer B2x (APIs) “Middleware” (ESB, BPM, rules engine) Aggregation layer SoE Digital core banking Traditional core banking (with hard-wired business logic and data stores) Data maintenance layer Banking entity layer SoR Short-term data stores Data warehouses and data marts Long-term datastores

21. Agenda • Obstacles for banking platform transformation • The current state of application landscapes in banks • Introducing digital core banking • Outlook

22. Outlook Drive transformation via digital core banking. Expect digital core banking to redefine the banking platform market.

23. Selected Forrester research • “Assess Your Banking Platform’s Readiness For Banking Of The Future” Forrester report • “Banking Of The Future: How Banks Will Use Digital Capabilities To Remain Competitive” Forrester report • “Brief: Achieve Market Differentiation With Omnichannel Banking” Forrester report • “Brief: Emerging Technologies In Financial Services” Forrester report • “Case Study: Avoid Vendor Lock-In On Your Way To Digital Banking” Forrester report

24. Selected Forrester research • “Choose The Right Mobile Banking Solution” Forrester report • “Customer Experience In Banking Needs More Than Just Channels” Forrester report • “Global Banking Platform Deals Survey 2016: New Customer Dynamics Reshape The Industry” Forrester report • “Ready Your Bank For Its Move From Legacy IT To Business Technology” Forrester report • “Use APIs And Components To Prepare For The Banking Industry’s Increasing Pace” Forrester report

25. Jost Hoppermann +49 (6)99 592 9837 jhoppermann@forrester.com