1 / 40

Bank on Entrepreneurial Innovations in the digital age

Explore the importance of innovations and entrepreneurship for banks in the digital age. Discover how organizations can adopt entrepreneurial innovations to achieve continuous improvement and sustainable growth. Learn about the challenges faced by banks in today's globalized and technologically advanced world.

ycasey
Download Presentation

Bank on Entrepreneurial Innovations in the digital age

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Nayana D.P. DehigamaMBA Sri JDoctoral Candidate, AIT-ThailandFounder Chairman / Managing DirectorEpic Technology Group Bank on Entrepreneurial Innovations in the digital age

  2. Why Innovations & Entrepreneurship are important for Banks?

  3. Two states that organizations function: Growing Dying

  4. The Virtuous Cycle of Survival Entrepreneurship

  5. ‘Innovation’ Adopting change for continuous improvement/growth - Nayana Dehigama

  6. Three Facets of Innovation Product Process Business

  7. Where should Innovations be adopted?

  8. “ENTREPRENEURSHIP” ? What is….

  9. “ENTREPRENEURSHIP” in Organizations Ability to introduce “Innovations” in response to perceived opportunities (Profits/Growth) -Nayana Dehigama

  10. “Entrepreneurial Innovations” Innovating for Sustainable Growth -Nayana Dehigama

  11. Innovations for Sustainable GrowthTwo Essentials The Starting Point

  12. VISIONING &FUTURING

  13. Let’s look at what is happening around us…

  14. Global shift in Consumer Behavior

  15. People will prefer to communicate than to commute Dr. Arthur C Clarke

  16. 3 Billion internet users globally - ITU 7 Billion mobile cellular subscriptions&3.6 Billion from Asia Pacific– ITU

  17. By 2018, more than 50 %of online users will use a Tablet or Smartphonefor all online activities- Gartner

  18. Speed of Change 2x more smartphones in 4 years Number of subscriptions 2x more connected devices by 2020  - PWC

  19. Tipping Point Market share of smart connected devices, 2012-2013 16.5% 13.0% 13.9% 15.1% 15.9% 16.3% 16.7% 14.6% 20.2% 11.8% 28.7% 15.3% 2012 2013 2014 2015 2016 2017 More PCs than tablets More tablets than PCs  - PWC  - PWC

  20. 2013 Pope Francis Election 2005 Pope Benedict Election

  21. Brick & Mortar branches diminishing Big banks in many markets have reduced branch density. Branch-density trend of top retail banks, 2006-111 % - 11.3 - 5.9 - 5.6 - 2.3 - 1.7 1.0 6.6 1 Average of major banks1 additions and subtractions to branch networks, excluding effects of M&A Source: Banks1 public disclosures; McKinsey analysis

  22. Customers are leaving branches for Internet and Mobile Banking. Monthly usage frequency Developed Asia (HK1, Singapore) Emerging Asia (China, India) • Two “Firsts” • First ever drop in branch usage since 1998 • First ever data showing that Developed Asia consumers use new channels (internet/ mobile) more than traditional channels (telephone and branch) 1.93 1.89 1.44 1.35 -29% -26% Branch 0.50 2.35 3.20 0.38 +36% +39% Internet & mobile 2007 2011 2007 2011 1 Hong Kong SOURCE: 2007 and 2011 McKinsey Personal Financial Services surveys

  23. Asia-Pacific’s cash intensive economies will see strong growth in cashless transactions. Share of cash in number of transactions Growth in cashless transactions, %, 2010 2010 – 2015, % 23 India 99.7 99.5 23 Indonesia 98.0 27 China 97.1 20 Thailand 92.5 9 Malaysia 82.9 5 Taiwan 76.8 12 Japan 65.6 9 Korea 65.2 Singapore 9 63.1 Australia 9 55.1 Hong Kong 5 SOURCE: McKinsey Global Payments Map Is there a hidden opportunity here ?

  24. Core IT Technologies Driving Technological Change Social Networks Simulation & Scenario Modelling Mobile Payments Big Data Mining & Analysis Data Visualization Public Cloud Infrastructure 3D Printing Robotics Geo-location Pervasive Computing Enterprise Social Networking Private Cloud Gamification M2M Crowdsourcing Automation Crowdfunding Cyber Security  - PWC

  25. The Golden Opportunities SL Government has launched an aggressive strategy to establish country-wide Digital Infrastructure (FTTH/B based GPON, LTE/4G, Google-Loon)

  26. Mobile Phone Penetration in Sri Lanka • Total Penetration: 99.2 % • Smart Phones : 24% current (expected 85% in 5 years)

  27. The Golden Opportunities Every Mobile Phone today provides a mean for Banks to reach the user and get the user engaged in business cost effectively. Every Mobile Phone User is a walking opportunity for Banks to do seamless business and earn profit.

  28. Future of Banking in the Digitally Connected World

  29. Legal and Contractual Services Contact Center Bank Sales Agents (Product Marketing and Customer Enrollment) Agent Banks Regulations & Compliance BC/DR Security and Privacy Policies Core Banking System Big DataAnalysis Cash-less Society E Wallets Bank Service Agents External Service Providers (Cards Associations, Payment Gateways ) Products/Services Portfolio Customer Experience Data Storage CTS Customers- Scattered over a large geography KYC/ Authentication Un-attended Service Kiosk / ATM Software as a Service Vault

  30. Mini Bank Branch that offers Banking Services

  31. Can you ever imagine a bank with 40,000 branches and 40,000 ATMs in Sri Lanka?

  32. Challengesfor today’s Bank

  33. Challenges for today’s Bank • Globalization • Sophisticated Customer Demands / Trends • Regulations • Downward pressure on ROE • Technological Advancement • Disruptive Technologies • Cost Containment • Managing Generation Gaps

  34. The most critical challenge in the short run • Striking the right balance between physical and digital channels World Retail Banking Report - 2014

  35. FUTURE OF BANKING IN THE DIGITAL SPACE • Future banks should be ‘universal’ and ‘multitalented’ • An innovative multichannel infrastructure is a must • Real-time Video Interaction with clients, agents, advisors • Innovations for customer experience : “Test drive” of banking products & services • Comprehensive “Mobile Wallet” – Pay at anywhere anytime to anybody • Connect with Gen Y – Gen Z using games and social networks • Content monetization: - Micro level revenue themes such as music, e-book download, gaming, movies, ticketing • Personalization of corporate banking services

  36. Who will survive and thrive in the Digital Age? Remember, it is not the biggest or the most intelligent who can survive, but The one who can quickly respond/adapt to changes, identify pockets of niche opportunities with demand and exploit them through innovative means before the competitor, while securing ‘reasonable/substantial profits’.

  37. What will make you a winner? It is not the greatest product that will make you a “WINNER”……. but the INNOVATION(Product, Process, Business) that addresses the ‘changing customer needs’ in the market

  38. Thank You! nayana@epiclanka. com October 30, 2015

More Related