1. Driving Forces of Digital Transition in Banking

• General Purpose Technology: What is GPT (General Purpose Technology), why is ICT (Information Communication Tech) GPT?
• Exponential Market Pressure: The interaction of Matcalf’s Law with Moore’s Law and the exponential business consequences.
• New Players in the Banking Ecosystem: GAFA, BAT, Tech Giants, FinTech Startups, MNOs, Challenger Banks and more
• Opinion Leaders in Digital Banking: Brett King, Chris Skinner, Jim Marous, Klaus Schwab, Pierre Nanterme, Susanne Chishti

2. Cloud Banking Best Practices

• AWS in Banking: The case study of Moven from New York and Capital One from Virginia
• World Bank Group: Cloud Computing Overview – The White Paper which boosted Cloud Banking
• Key Concepts: SaaS, PaaS, IaaS, Private, Community, Public, Hybrid, Platformification, Multitenancy
• Security: MIT Study, Ransomware, AI as Weapon, The Bunker
• Case Studies: Oak North from London, nCino from North Carolina

3. DLT in the Back Office and Beyond

• Legacy IT Systems: The case study of HSBC Bank from London
• Blockchain and DLT in Banking: Central counterparties versus Distributed Ledger Technologies, Origins in Nakamoto Whitepaper
• Core Use-cases of Blockchain in Banking: interbank payments, securities clearing, trade finance, mortgages, compliance, guarantees and syndicated loans
• Smart Contracts: Back Office of the Future, New Legal Department

4. Efficiency Innovation: AI is Coming to the Back Office

• Three Types of Corporate Innovation: Christensen in the Harvard Business Review – Efficiency, Sustainability, Disruption
• Case Studies: DBS Bank from Singapore, DuCo from London
• AI in HR: Real Time Employee Performance Monitoring by GS
• Big Data in Back office: Risk Management, Mass Customization, Design and Data, GDPR, Data as Asset, Implicit Networks
• Future of Banking Software: Backbase from Netherlands, Boost AI from Norway, Strands from Barcelona

5. Open Banking

• Three Classic and Three Structural Forms of API Banking: Closed, Open, Partner, Front to Back, PSD2, Platformification
• PSD2: Why and how the ‘Payments Services Directive 2’ changes the structure of banking in Europe and beyond, what is ‘XS2A’
• Market-driven Open Banking: Money Dashboard and Bud from UK, Varo, Digit and Max from USA, eWise from Switzerland
• Risks and Winning Strategies: Commoditization, Detaching the Interface from the Banking License, Fraud, One Password Paradigm, Coopetition

6. Digital Identity The Missing piece of the Puzzle

• Onboarding: Why the lack of digital identity hurts banks
• AML and KYC: Is this really an issue
• Biometrics: The technical solution is more than ready, the question is not ‘if’, but ‘when’ and ‘which version’
• Digital Signature and the Paperless Bank: Dream or reality, Cost-cutting versus Quality of service, ZKP – Zero Knowledge Proof
• Case Studies: Estonia and the E-Stonia Project, Aadhaar and India the 4 Digitally Excellent Banks, ID Now from Germany

7. Future of Channels, Products and Clients

• Channels: Online, Smartphone, Smartwatch, Conversational AI, AR, VR, Smart Lenses and beyond, Five stages of Channel-Evolution
• Products: The Payments Revolution, 4Ps of Product Development
• Clients: Millennials, Period of Peak Profitability, Digital Lock-In Effect, Employees of the Future, The Social Aspects of Personal Finance, PFM
• Roboadvisors: Nio from Germany; Singular Intelligence, Nutmeg and MoneyFarm from UK; Acorns, Betterment and Wealthsimple from USA
• Group Exercise: Creation of a Digital Bank – Three Key Layers of Value Proposition

8. Summary

• Concepts
• Tools
• Trends
• ‘To-Do’s
• Resources

9. Evaluation

1. Strategic Overview: The Intense Challenge

• 30 Areas of Financial Technology: Understanding the complexity, depth and dynamism of the FinTech Revolution
• Strategic Shift: ICT is GPT, Metcalf’s Law, Moore’s Law, Banking Innovation Paradox, Red Queen Effect, Information Cascades
• New Players in Old Ecosystem: GAFA, BAT, Tech Giants, FinTech Startups, MNOs, Challenger Banks and more
• The New Face of Competition: How competition shifts to ‘coopetition’ (competition and cooperation) in digital economy

2. The Top Three Banking Innovation Strategies

• The Christensen Strategy: The three types of corporate innovation – efficiency, sustaining, disruptive. The 5 + 2 signs of disruption.
• The Ambidextrous Organization Strategy: Business as Usual vs Emerging Business within one organization – ahead of the market
• The Toyota Innovation Strategy: How DJD (Dual Job Descriptions) and IC (Innovation Committee) create advantages
• Global Best Practices Implementing Top Three Strategies : Barclays Bank, HSBC Bank, ANZ Bank

3. Secondary Banking Innovation Strategies

• The TRIZ Strategy: Digital Convergence Experts, Monitoring other industries, the lessons from 40 000 patents, cross industry hiring
• The SCRUM Strategy: “organizational knowledge creation bringing about innovation continuously, incrementally and spirally”
• The PHASE-GATE Strategy: The traditional way of corporate innovation – why is it outdated, how to run innovation projects
• The Eight Mistakes to Avoid: Description of Successful Innovation

4. Open Banking Strategies – Application Programming Interfaces

• Third Parties in Banking: Interface, UX, UI, Aggregation, XS2A
• PSD2: Payments Services Directive 2, what is it and why are bankers afraid
• Beyond PSD2: Money Dashboard and Bud from UK, Varo, Digit and Max from USA, eWise from Switzerland
• Three Classic and Three Structural Forms of API Banking: Closed, Open, Partner, Front to Back, PSD2, Platformification
• Winning Strategies: The Chameleon Strategy, The One Password Paradigm, The Coopetitive Strategy, The Aggregator of Aggregators

5. Corporate Venture Capital

• Traditional Venture Capital in FinTech: Success stories and defining investments, Risks and failures, Top VCs in FinTech
• CVC: What is Corporate Venture Capital, What is the ‘Triple Bottom-line Theory’, The lack of good exit strategies, Overpriced assets
• Best Practices of CVC by Banks: Citibank from USA, Axa from France, BBVA and Santander from Spain, HSBC from UK, Nomura from Japan
• Group Exercise: Designing and defining a CVC fund

6. Innovation Labs, Intrapreneurship, Accelerators and Incubators

• Non Branch Labs: Wells Fargo, Citigroup, Deutsche Bank, Capital One
• Branch Labs: Allied Irish Bank, ASB Bank, Chase Bank, BBVA Bank
• Non Bank Labs: VISA, Accenture, Vancity Credit Union
• Intrapreneurship: Entrepreneurial spirit inside corporations, from Google to banks, Barclays and beyond
• Accelerators and Incubators: Barclays Rise, Startup Bootcamp, The Culture Problem, SWIFT Innoventures, SuperCharger Alliance, F10, Carolina FinTech Hub, Bank of England Accelerator, Wells Fargo, Milan FinTech District, Level 39, Station F

7. Pretotyping, Participative Innovation Techniques, WL Partnerships

• Pretotyping: The new product development technique, The 4Ps of product development (Preto, Proto, Pilot, PoC)
• Theory of Participative Techniques: Loyalty, Functional, Emotional and Participative Benefits, Examples by FinTech Startups, Reviews
• Practice of Participative Innovation: Crowdsourcing, Crowdstorming, Hackathon, Digital Ambassador, Online Opinion Leader, Social Listening
• White label Partnerships: Video Banking by mBank vs Video Banking by Barclays, Superwallet by FINANTEQ, Dynamic Queue Management, etc
• Group Exercise: Creating Apple Bank – Bank Steve Jobs would create

8. Summary

• Concepts
• Tools
• Trends
• ‘To-Do’s
• Resources

1. Driving Forces of Digital Transition in Banking

• General Purpose Technology: What is GPT (General Purpose Technology), why is ICT (Information Communication Tech) GPT?
• Exponential Market Pressure: The interaction of Matcalf’s Law with Moore’s Law and the exponential business consequences.
• New Players in the Banking Ecosystem: GAFA, BAT, Tech Giants, FinTech Startups, MNOs, Challenger Banks and more
• 30 Areas of FinTech: 20 000 startups with USD 200 billion funding, exponential growth, mounting risks and vulnerabilities

2. Channel Transition 1: From Bricks to Clicks?

• 5 Classic Stages of Channel Transition: F2F, Bricks to Clicks, Multichannel, Omnichannel, Optichannel
• The Future of Branch: World Bank Global Branch Survey results, alternative branch concepts, future of branch vs branch of future
• The Underhill Rule: Who is Paco Underhill and how did he solve a counterintuitive problem in banking
• Digital Tipping Point: Digital banking as a continuum, Definition of digital banking, The endgame as a question mark
• Case Studies: DBS Bank from Singapore, Idea Bank from Poland

3. Channel Transition 2: Screen size transition, channels of future

• Smartphone as Primary Channel: Smartphone as an aggregator beyond banking, 20 core functions of smartphone in banking
• Short Term Beyond the Smartphone: Smartwatch, Voice, Wearables, Biometrics, AR (augmented Reality)
• Long Term Beyond the Smartphone: Smart Contact Lenses, VR (Virtual Reality) MR (Mixed Reality), Transhumanism
• Classics Renewed: Website, Facebook, YouTube, AI Chat

4. Client Transformation: From Baby Boomers to Millennials

• Period of Peak Profitability: The three decades of top profitability derived from Millennials, formal definition of Millennials
• The Instant Generation’: A shift in time-perception and the dramatic consequences for banking
• ‘Digital Lock-In Effect’: Why and how Millennials are digitally disloyal, how to create lock-in and participative benefits
• ‘The Gaming Generation’: How design and visual interfaces become primarily important in banking, PFM, UI, UX, CX, Video

5. Digital Marketing

• Crowdsourcing: Participative techniques in digital market research and product development, Crowdstorming
• Market Timing: What to innovate, when to roll it out, the Roger Scale of market timing, the 4Ps of digital product development
• Innovation Narrative: Providing depth and credibility for banking transition, Best practice example: Barclays Innovation Narrative
• Digital CSR: How to link digital transition to Corporate Social Responsibility, Best practice examples: NFC Digital Charity Boxes, Barclays Intrapreneurship Program, BKT Bank Cross Industry Degree

6. Shift of Paradigm in Online Lending: Risks and Rewards

• 16 Forms of Online Lending: Safe and unsafe versions, Pockets of risk
• Crowdfunding: Top Global Sites, Case Study: Santander, Funding Circle
• P2P Lending: Due diligence, Workout, Social Media Credit Scoring, Case Study of Zopa and Friendly Score from the UK
• Marketplace Lending as an Asset Class: From Kabbage in the USA to 1000 Sites in China, Where are the regulators, Securitization at large
• Risk Model: 12 Key Risks associated with Marketplace Lending, The ‘KOMODO DRAGON’ Model

7. Investments, Savings, Aggregators and Payments of the Future

• Investments: Major trends in Roboadvisory services, pros, cons, hybrid model, legal aspects, the concept of ‘singularity’ explained
• Savings: Automatic Savings – the case study of Digit and Google Ventures from the USA; BankMe from Canada
• Aggregators: The rise of third parties in banking, Open Banking, PSD2, APIs, The One Password Paradigm
• Payments Innovations 1: Apple Pay, Samsung Pay, Google Pay, Self Pay, Loop Pay, Amazon Go in Seattle, VR Pay in China
• Payments Innovations 2: Super Wallet by FINANTEQ from Poland, Digital Wallets as Disruptors, The Three Generations of E-Wallets

8. Summary 

• Concepts
• Tools
• Trends
• ‘To-Do’s
• Resources

1. Payment Services Directive: The History

• SEPA vs PSD vs EBA: Who is who on the map?
• Key Dates: 06/2013, 10/2015, 01/2016, 01/2018
• RTS: Understanding Regulatory Technical Standards
• XS2A: The 4 characters which may change banking in the EU
• TPP: Who will be the Third Party Providers?
• PISPs and AISPs vs ASPSPs: How to visualize the new roles?
• Group Exercise: THE THIRD PARTY PROVIDER ROLE-PLAY

2. The Major Stake-Holders

• PCI: How will VISA, MC and others in Payments Card Industry play?
• Banks: Will banking be commoditized or the opposite?
• MNOs: How can Mobile Network Operators eat the dinner of banks?
• GAFA: Tech Giants in banking? Credible threat or phantasy?
• FinTech Companies: 15 000 start-ups ready to disrupt banks?
• Group Exercise: GOOGLE, APPLE, VODAFONE GAME

3. How big is PSD2 for banks? How to prioritize it?

• OBS: The scope of data banks are obliged to make accessible
• Strong Authentication and Secure Communication: Key aspects
• The Role of the UK vs Brexit: Negotiating power on key aspects
• The Open Banking Framework: Importance beyond the UK
• Scope: 28 EU: yes, 23 European non-EU: partly; Exporting PSD2
• Impact on FinTech Valuations: Is there a true ‘PSD2 Premium’?
• Group Exercise: EXPLAINING PSD2 TO A CEO

4. Risks and Responsibilities Related to PSD2

• SCA: Will it protect anyone? 2 Factor Authentication
• Risk of Fraud: The bank pays. Is this the ‘level playing-field’?
• Digital 9/11: If, when, how, why, who, how to stay safe?
• AML, KYC: How inefficient is the current regulation, why?
• Blockchain, Real Time Data for Regulators: When will it come?
• Risks vs Customer Experience: Merchant’s perspective matters
• Group Exercise: MERCHANT’S DILEMMA

5. From PSD2 to API

• Case Study: Moven from New York – How API banking works in practice?
• 3 Key Types of API Banking: Front to Back, PSD2, Platformification
• 3 General Types of APIs: Closed APIs, Partner APIs, Public APIs
• Digital Banking in General: The definition, the situation, the next step
• Premium Segments, MSMEs, Corporates: Is the challenge contained?
• Group Exercise: FINANCIAL SUPERMARKETS versus PLATFORMIFICATION – overlooking 30 years of banking strategy

6. Millennials: The API Banking Generation

• Visualization: Visual, video, portrait, colours, UI, UX
• Time: 5 seconds versus 5 minutes, the real-time generation
• Channels: Transaction – Smartphone, Communication – Social Media
• Customer Loyalty: Digital Loyalty, Digital Brand-History, Lock-in-Effect
• Millennials as Bankers: The new generation of colleagues, opportunity
• Group Exercise: SEGNEMTING THE MILLENNIALS

7. The New Role of Competition and Cooperation

• ICT is GPT: Is the transformation of banking unstoppable? Why?
• The Post-Industrial Paradigm of Competition: Coopetition, Frenemies
• Banking Innovation Paradox: Banks have to run as fast as they can?
• Group Exercise: DESIGNING A DIGITAL-ONLY BANK – THE THREE KEY LAYERS OF THE VALUE-PROPOSITION, THE CHANNEL OF THE FUTURE (phone-app, watch, chat, AR)
• Case Studies: The BankImport API, The Kiva API, The iZettle API, The OANDA API, The Crowd Valley API, The GoCardless API
• How to Come up With a Successful API Programme?

8. Summary

• Concepts
• Tools
• Trends
• ‘To-Do’s
• Resources