WEBINAR Digital Core Banking Redefines Banking Transformation Jost

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

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

Agenda › Obstacles for banking platform transformation › The current state of application landscapes in banks › Introducing digital core banking › Outlook © 2016 Forrester Research, Inc. Reproduction Prohibited 4

Agenda › Obstacles for banking platform transformation › The current state of application landscapes in banks › Introducing digital core banking › Outlook © 2016 Forrester Research, Inc. Reproduction Prohibited 5

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

81%

10% -11%

The Potemkin effect in banking

Personal view

Ancient core solutions

Risk

Lock-in

Agenda › Obstacles for banking platform transformation › The current state of application landscapes in banks › Introducing digital core banking › Outlook © 2016 Forrester Research, Inc. Reproduction Prohibited 15

Modern business technology applications are systems of systems Systems of engagement en ym Pa t en em ag an sm rd Ca ts ing nk ing ba nd Le re nk ba Co e il ob M Systems of insight Systems of automation © 2016 Forrester Research, Inc. Reproduction Prohibited Systems of record 16

A banking platform architecture. . . with traditional core banking Mobile banking “Middleware” (ESB, BPM, rules engine) So. R So. E Omnichannel banking Data warehouses and data marts © 2016 Forrester Research, Inc. Reproduction Prohibited 17

Agenda › Obstacles for banking platform transformation › The current state of application landscapes in banks › Introducing digital core banking › Outlook © 2016 Forrester Research, Inc. Reproduction Prohibited 18

Digital core banking is evolving UX layer Aggregation layer Banking entity layer Data maintenance layer Short-term data stores Traditional core banking The new “core” B 2 x (APIs) Long-term data stores © 2016 Forrester Research, Inc. Reproduction Prohibited 19

A banking platform architecture So. E Omnichannel banking Mobile banking “Middleware” (ESB, BPM, rules engine) So. R Traditional core banking (with hard-wired business logic and data stores) . . . with digital core banking UX layer B 2 x (APIs) Aggregation layer Banking entity layer Data maintenance layer Digital core banking . . . with traditional core banking Short-term data stores Data warehouses and data marts © 2016 Forrester Research, Inc. Reproduction Prohibited Long-term data stores 20

Agenda › Obstacles for banking platform transformation › The current state of application landscapes in banks › Introducing digital core banking › Outlook © 2016 Forrester Research, Inc. Reproduction Prohibited 21

Outlook › Drive transformation via digital core banking. › Expect digital core banking to

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 © 2015 Forrester Research, Inc. Reproduction Prohibited 23

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 © 2015 Forrester Research, Inc. Reproduction Prohibited 24

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