aps ASSURANCE PROGRAMME SOLUTIONS

CHANGE & TRANSFORMATION SPECIALISTS FOR THE FINANCIAL SERVICES INDUSTRY

Digital Transformation & Innovation

March 2019 APS: Disruption has happened across the board with no signs of stopping

Digital spend continues to Startups and FinTechs Everyone (end increase continue to proliferate everything) is constantly connected

• c. $2trillion will be spent on • There are now more than 8,000 • 80% of us check the phone Digital Transformation in 2019 - Fintech companies globally – within 15 mins of waking and more than half of this will be on 4000 of these in the UK and US 90% keep it within 3ft of us - day Workplace initiatives and Op (INSEAD) and night (IDC) Model transformation (IDC) • In the UK $1.8bn (£1.3bn) of • Approximately 40m messages/ • Within investment management cash went into Fintechs in 2017, minute sent on What’s App 68% are planning to invest more a rise of more than 150 per cent (WhatsApp) into their websites with 49% on 2016 and a bigger increase • 6.4 billion connected things in planning to spend the same as than either the US or China. 2016, up 30 percent from 2015 on security issues (Kurtosys) with an estimated 20.8 billion by 2020 (Gartner)

2 APS: 4 key trends are driving Organisations to innovate

Changing Customer Expectations Today’s customers have completely different expectations set by ‘’ companies -- they want Flexible Technology and Data access wherever they are, Increased and improved whenever they want and on connectivity of data whatever device (or channel); facilitates real time analytics combined with simplicity, based on accurate data, transparency, engaging and while Cloud and SaaS relevant content; and a greater solutions can enable Asset say over how their money is Managers to build flexible managed. and scalable infrastructure all of which form the basis of Cost and Margin Pressures £ Digital, Machine Learning and AI offerings. Costs and challenges associated Digital with scaling legacy systems is driving many firms to review their operating models. Regulatory Emerging Competitors – and partners changes including RDR, FATCA, New entrants are defining the new MiFID II and GDPR have put even standards for client experience and more pressure on firms to capture, challenging the status quo with innovative retain and retrieve data driving up business models while large incumbents the costs of compliance while are launching their propositions forcing downward pressure on fees others to follow or risk being left behind. continues from both regulators, low As fintechs adapt their business models cost ETFs and disruptors yesterday’s competitor becomes today’s potential partner

3 APS: AI and Machine Learning has been dubbed as the “fourth industrial revolution”…

Simple: back office robotic automation, Complex: advanced recommendation engines analytics and self- and voice recognition teaching AI

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4 APS: …Opportunities exist for Organisations to harvest the potential

Perform simple tasks in an automated way, without need for human input

Make decisions in a reasoned, impartial way – Analyse more information, Improve removing emotional more quickly than a efficiency response human could process

Free up time to spend speaking to clients, Enhance improving the quality of Use predictive analytics to service identify and avoid Lower risk client potentially costly risks experience Anticipate and proactively respond to client needs

Remove human error in investment and Interact with existing and operational processes potential clients in a more targeted way

5 APS: Power has shifted to those who own the customer experience

Sources of Dominance Age of Age of Age of Age of the Manufacturing Distribution Information Customer

1900 - 1960s 1960 - 1990s 1990 - 2010s 2010 - 2020s

Dominant Companies

6 APS: FinTechs are disrupting the the market – primarily around CX and Price

Sign Up Speed of Minimum Fee Execution Investment Transparency 4-5 minutes 5 clicks $0 0 clicks

The time it takes The number of The minimum The number of to open a clicks to send investment to clicks to view the Betterment or money through open an advisory fees Wealthfront --versus account at charged by most account 15 clicks through Betterment Robo Advisors

7 APS: As FinTechs proliferate and disrupt the market… they can also be potential partners

DEs ig n ED BY POWERED BY PIERRE DREUX Fintech Landscape • 82% of incumbent Financial Banking & Payment (356) Investments (108) Financing (196) Insurance (82) Services organisations expect to Banking (54) P2P Lending (49)

Banking Reinsurance (6) Mobile Investment P&C Platforms Virtual Banking (9) - Expenses Related Platforms P2P - Business Lending (22) Insurance (22) Banking (23) P2P Lending - Consumer (27) FiservCapital Banking FiservCapital FIS Q2ebanking D3 Banking YellowPepper Simple Lendstar Banking Up Zenbanx Qapital ecoPayz (22) (23) (10) Solutions increase FinTech partnerships in the

Seed MX Cobiscorp Avaloq BML Istisharat Craft Silicon IDEALINVENT Five Degrees Unwired Technisys Compte-Nickel NUMBER26 Cachet Boom Financial Koho Fidor Bank Monese mBank Atom Bank Starling Mondo Nation Financial Auxmoney Yooli Pret d’Union China Rapid SocietyOne Lending Works Aflunt a Meili Jinrong Finexkap Funding Lendio Jimubox Lendix LENDOPOLIS Able Finance Linxo SecondMarket Founders Circle Capital UNIQA Munich ReSCOR Nationwide Pet Embrace Pet Trupanion Insurance next 12 months* Diasoft Mambu Path Solutions Zafin D+H Centralway Temenos Raisin GmbH NextBank Holvi Etronika Osper Branch SureCash Nubank Peppermint Chime RocketBank Loot Pocopay Cashboard Numbrs Project Innovation Harmoney Smava LendKey PPDai Bondora Faircent Lending Club Prosper InstaPartners Rong360m P2Binvestor Mintos Renrendai StreetShares Technologies Meniga Zebit Squirrel Archer PrimeRevenue eShares Analyze Re Swiss Re Gen Re Petplan Pet FIGO Pet OneAssist Insurance Insurance

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Payment Billing (20) Perfio Money MoneyBrilliant Stockpile Axial Market Asset Match Wallets (26) Platform (59) Dashboard TIO InforcePRO Captricity Apixio First Data Global Bango WePay Direct Lending (88) Corporation Payments

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Aye Finance Growth Street Capital on Tap Advanced NeoGrowth Phoenix Hanhua Borro Applied Data Wonga Oakam Microcred Fair Finance Merchant Credit Finance Financial Finance Hepstar Personal Finance - Online Payments (24) POS Payments (55) Investment (16) bayzat Finanzchef24 Bidu Vanare SigFig incumbent organisations site Invoicing (20)

Mobile/Product PayPal Venmo Zipmark Ant Financial Flypay ERPLY Leaf POS Merchant Revel Systems Square SecureNet Payfira Dream MyCheck Easypolicy TopCheck Policybazaar Customer Payment Payments Real Estate Lending (15) Insurance (4) Betterment Acorns Aspiration Personal Ewise Yomoni Marie Quantier Capital

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Alipay Nochex GoCardless Red Dot payleven Powa SumUp Vend Worldline orderbird ePaisa QFPay Coiney iBoxPay Miura Systems Recurly InvoiNet Vendorin MineralTree Payment Real Estate Investment (13) BIMA PolicyGenius Goji Hixme

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Reward Based Donation Based Equity Based

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API/Connectivity (26) Platforms (23) Crypto currencies (23) Security (43) Compliance & Scoring (19) to new circumstances and make

FX /Trading Crypto currencies Scoring (9) Compliance API o(12) Connectivity (14) (5) (18) Biometrics (8) Authentication (35) (23) (10) mFino Marqeta FAMOCO TrueMotion Pepperstone Super Calastone Wikifolio Darwinex Simplex Kraken CoinbaseUphold Bitnet Mirror Jewel ThetaRayGemalto Riskified Oberthur Cardinal Feedzai Jumio Mitek Systems Aire Cognia FundApps derivatives Exchange Technologies Paymentech Technologies Commerce changes accordingly. Incumbents

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Business Tools (99) Blockchain (12) Data & Analytics (81) is a nightmare because they lack

HR Payroll Accounting Analytics/ BI Real Estate Financial Software (23) ERP CRM PSA (20) Blockchain Risk Management Algorithms (18) (36) News/Research (11) (38) Platform (9) (12) (11) (6) nCino TradAir Openmarket Procurify Dopay Mpay Zenefit Candis FirstBest Freee Receipt BankXero Actian1010Data Context iMoney Group Captricity Kensho MapR Metric Insights Relevant Technologies Technologies the culture, know-how, and they

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8 APS: Transformation requires developing excellence across 4 building blocks

Customer at the heart Data at the core An obsessive customer-centric Harnessing structured and mindset and approach to deliver unstructured data from within seamless, omni-channel the organisation as well as experiences (to bother external and external sources to develop internal customers) building in insights and drive customer- regular dialogue with customers for centric propositions, Machine feedback and product innovation Learning and AI solutions

Simple, Flexible & A Culture of Innovation Scalable Architecture

An entrepreneurial culture and Shift from legacy systems to flexible open environment where ideas are rapidly architecture, Cloud/ SaaS, digital trialled and tested before progressing to ecosystems and API integrations (including implementation and iterative FinTechs and other 3rd parties) to support improvement the Digital vision

9 APS: Starting from the customer and business needs to deliver the solution

Articulate Business Goals Customer Priorities, Review Current State Define Business Define and Iterate Customer Journeys (As-Is and To-Be) Determine Opportunities Requirements, Benefits Assess Experience Gaps & Required Capabilities & Roadmap

1. Business Priorities & Design 4. Moets of Tuth Aalysis 7. Treatments & Opportunities 10. Sketches and storyboards Principles

Customer Focus Groups

Desktop research and Analytics deep-dive 11. Visual and Front- staff (Guiding rules for defining to be customer (identify the best tools to offer e.g. front-end UX designs interviews journeys and strategic KPIs – align to business functionalities, triggers, digital capabilities) goals)

2. Target Segments, Goals and 5. As-Is/To-Be Experience 8. Target State Capabilities 12. User Stories, Process Flow, Personas Assessment Business Re’ts & Wireframes

Future State – Change of Circumstance

Correspondence Explain Explain Receive reflects No Details correct? End requirement requirement confirmation requested

Customer change

Yes

Establish scope Offer customer Action and close and type of Enter change Confirm effective Identify & verify Submit change confirmation via lead (book CROSS SELL change including primary date to apply customer of circumstance channel of appointment / PROCESS (address, phone contact details change choice cross sell) # etc) Branch Manufacturing

Generate Generate Apply change confirmation to Scan CHIP and Trigger and store appointment in across products customer via PIN card cross sell lead diary (if selected channel of applicable) choice Systems Wireframes Target Processes

Omni-Channel Journeys to highlight moments of 5. Implement (high-level across the operating model pain and delight e’ts HL Re’ts and architecture)

3. Architecture Review & Diagnostic 6. Experience Analysis 9. Prioritization Map 13. Roadmap & KPis

(prioritised journeys, quick wins and big wins)

(pinpoint the differentiators/ must haves vs. KPIs (customer & business); (identifies the service gaps and greatest nice to haves? Score features on customer ways to measure; set baselines opportunities to impact customer experience) impact, delivery complexity and cost) and targets APS: Supporting your Digital transformation from vision to implementation

Future Visioning Rapid Prototyping Digital Operating Model Delivery Support

Future Visioning Rapid Prototyping & Digital Operating Model Delivery Support Proof of Concepts

Workshop with Senior Development of customer centric Development of a target state Digital Project management and Leadership and key ideas into low and high fidelity operating model and supporting business analysis and testing stakeholders to review industry prototypes and the evolution of processes to establish best in class support to ensure the solution best practice, explore the ‘art of these through to proof of digital capabilities. Definition of a is delivered in a way that the possible’ and define future concepts to rapidly deliver supporting transformation plan to maximises user adoption and state vision move from current to end-state minimum viable products (MVPs) improves business outcomes. to assess the viability of ideas

EXAMPLE DELIVERABLES EXAMPLE DELIVERABLES EXAMPLE DELIVERABLES EXAMPLE DELIVERABLES

• Visioning Workshop write-up • As-is operating model review • Initial digital prototype created • Visual and UX Designs • Themed requirements summary • Operating model definition • Technical development of MVP and • Project structure documentation • Differentiation / segmentation analysis ongoing stakeholder & QA testing • Process design / re-engineering • User Stories • Best practice & trends analysis Two-week live testing with real • Quick win and long term transition plan • • Testing plan and documentation • Customer Personas and Journeys stakeholders • Tech landscape/ architecture • Training documentation

APS: Digital is moving towards a more holistic approach

APS Digital will help clients achieve a more connected and integrated business.

Manual Electronic Automated Connected Integrated

Fund Management

Separate specialised fund Paper ledgers & trade tickets Generic tools management tools Connected fund management tools Sales & Marketing

All interaction in person Main interaction in person Targeted approach 1:1

Data Management Machine Learning Physical paper records Electronic records Golden source records

Risk & Compliance Dynamic Sample based Sample based monitoring manual reviews Exception based electronic reviews investigations

Relationship Management Information Asset Manager led information Annual updates Client-led information on-demand given demanded

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APS are Change & Transformation Specialists in the Financial Services industry. Resourcing

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Our mission is to break the compromises that Professional Services organisations face when using Consultancies, by Change & Transformation being a trusted partner to deliver system integration Specialists for in the rapidly changing landscape of innovation, moving to the cloud, digital delivery and platform Financial Services delivery across Financial Services. APS C O M P A N Y VIDEO

Since our creation, our passion for delivering business success for our clients has driven our vision, UNITED KINGDOM: ASSURANCE PROGRAMME SOLUTIONS our company and every member of our APS CONTACT US: Consulting team, priding ourselves on delivering APS OFFICE NUMBER: +44 2380 302490 OR EMAIL: [email protected] projects on time, budget and to the institutional WWW.APSOLUTIONSUK.COM quality expected.

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