Driving Digital Transformation

Dennis Khoo

Description

Traditional banks are facing unprecedented disruption from challenger banks today. So why aren't more of them launching challenger banks of their own? Well, two high-profile examples - JP Morgan's Finn and RBS's Bo - were launched with much fanfare, but both shuttered after less than a year. In light of this, the success of TMRW digital bank by UOB, launched in Thailand in 2019 and Indonesia in 2020, is astonishing. Dr Dennis Khoo, who created TMRW, shares with us the thinking behind the design of this revolutionary undertaking. At every step of the way, he and his team went against established paradigms and bucked conventional wisdom to build ASEAN's first digital bank. Filled with visionary analysis and on-the-ground guidance, Driving Digital Transformation demonstrates how this success can be replicated across all industries. For any leader or organisation starting on a major digital initiative, this book is a must-read. "What makes this playbook particularly valuable is that it is written by Dennis Khoo, one of the sharpest minds in the industry." - Mary Huen, CEO, Standard Chartered Hong Kong

Sujets

• Banking
• Economie gestion
• Bank

Informations

• Publié par: Marshall Cavendish International
• Date de parution: 23 août 2021
• Nombre de lectures: 1
• EAN13: 9789815009194
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

2021 allDigitalfuture LLP
Published in 2021 by Marshall Cavendish Business An imprint of Marshall Cavendish International

All rights reserved
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Marshall Cavendish is a registered trademark of Times Publishing Limited
National Library Board, Singapore Cataloguing in Publication Data Name(s): Khoo, Dennis, 1963- Title: Driving digital transformation : lessons from building the first ASEAN digital bank / Dennis Khoo. Description: Singapore : Marshall Cavendish Business, 2021. | Includes bibliographical references. Identifier(s): e-ISBN: 978 981 5009 19 4 Subject(s): LCSH: Internet banking--Southeast Asia. | Financial services industry-- Technological innovations--Southeast Asia. Classification: DDC 332.1202854678--dc23
Printed in Singapore
Contents
Foreword
Preface
Acknowledgements
Chapter 1: The journey to TMRW
Chapter 2: What the future holds
2.1 The future of banking
2.2 Difference between digital banking and digital bank
2.3 Disruptive Innovation vs Sustaining Innovation
2.4 Challenges facing legacy incumbent banks
2.5 Experience starts with engagement
2.6 What should legacy banks do?
Chapter 3: First, get the basics right
3.1 Is building a digital bank just about technology?
3.2 What s role of design in an experience business?
3.3 Start with the solution or the problem?
3.4 SME vs consumer banking as beachhead segments?
3.5 Data and its role in a digital bank
3.6 Alternative credit scoring and its role
3.7 Designing a seamless onboarding experience
3.8 Core banking and its evolution
3.9 What do we do with product?
Chapter 4: Building a digital bank
4.1 Designing it right
4.2 Selecting and understanding your segment
4.3 The path to profit
4.4 The role of service in a digital bank
4.5 How to differentiate?
4.6 Learning as a differentiator
4.7 Fostering an innovative culture
4.8 Talent: What to look for in key hires?
4.9 Ecosystem (its misuse) and partnerships
4.10 Biggest obstacles you will face
Chapter 5: The allDigitalfuture Playbook : A step-by-step guide for any digital transformation
5.1 Customer dimension
5.1.1 Segment and gaps
5.1.2 Insights, experience and process
5.2 Business dimension
5.2.1 Differentiation
5.2.2 Path to profit
5.2.3 Scaling
5.2.4 Core competence
5.3 Capabilities
5.3.1 Design
5.3.2 Methodology
5.3.3 Data
5.3.4 Technology
5.3.5 Ecosystem
5.3.6 New disciplines
5.4 People leadership
5.4.1 Mission-Values
5.4.2 Leadership
5.4.3 Talent gap
5.4.4 Structure
Chapter 6: Beyond banking
References
About the Author
List of Figures
1. TMRW s markets by highest potential
2. TMRW s ambition and new capabilities
3. TMRW s vision: The world s most engaging bank for millennials
4. TMRW Indonesia since launch in August 2020
5. What has TMRW achieved since launch
6. TMRW app sign-in, main and account services screenshots
7. Author receiving the 2019 Global Finance Award
8. Evolution of consumer banking
9. Charging the Apple wireless mouse
10. The future of retail banking
11. Vertical and horizontal integration in computing
12. Vertical and horizontal integration in financial services
13. How digital banks compete
14. Nokia/Apple handset revenue 2010-2012
15. Leading digital banks in the world
16. Sample of digital banks launched by incumbents
17. Unbanked, underbanked and banked in Southeast Asia
18. Satmetrix NICE 2018 average NPS by industry report
19. 2018 current account NPS in the UK
20. Legacy banks biggest threat
21. What should legacy banks do?
22. Cost advantage of next-gen bank vs legacy banks
23. Screenshots of TMRW Thailand
24. Start with the problem vs start with the solution
25. TMRW s ATGIE flywheel model
26. Algorithms commonly used in credit scoring
27. First to fourth generation of core banking
28. TMRW savings game
29. Design challenges in digital banks
30. Proposed method to get from concept to code
31. Normal spacebar vs shortened spacebar
32. Understanding Design Thinking, Lean, and Agile by Jonny Schneider
33. Propensity to switch banks
34. Example of deep-linking screens within conversations
35. Tia s dual language capabilities
36. How to differentiate?
37. Launching a new TMRW brand
38. How to properly accept failure
39. Recommended assessment and hiring process
40. Solution vs transaction ecosystem
41. TMRW partnership model
42. The first digital camera
43. Circular Interactions cause severe complexity
44. The allDigitalfuture Playbook
45. Dimensions, elements and considerations
46. Designed for customers
47. Most attractive ASEAN markets for digital bank
48. CVP creation checklist
49. How will you know if you have a great insight?
50. Double-diamond method
51. Design Thinking approach
52. A sample of the biggest failures in innovation
53. Customer dimension template
54. Customer and business dimension interaction
55. Interaction within and between the 4 dimensions
56. Designing for business
57. Ten types of innovation by Doblin
58. Ten types of innovation in TMRW
59. TMRW kiosk at BTS station in Bangkok
60. Size vs adoption matrix
61. Three-stage path-to-profit model
62. Core competence gap
63. Desirable, viable and feasible
64. Customer, business and capability dimension interaction
65. New capabilities needed
66. The business value of design
67. Business designer vs management consultant
68. Business innovation designer
69. The top 6 key design considerations in TMRW
70. Sample design consideration cascade
71. Design Thinking, Lean and Agile
72. A pictorial checklist for scrum
73. How to operationalise the software factory
74. Four key considerations for leveraging data
75. Designing your data management lifecycle
76. 6 key design principles to embed data security into your company s core
77. Build, customise and configure analysis
78. Sample architecture diagram
79. Designing for modularity and scalability
80. Example of an ecosystem mapping exercise for a solution ecosystem
81. Airbnb platform business model canvas
82. Six-step evaluation of transaction ecosystem feasibility
83. All dimension interactions
84. The people leadership dimension
85. Sample vision, mission, values and behaviour statements
86. Deepavali celebrations in October 2019
87. One-pager to get to know us better
88. How to design a balanced scorecard for a digital bank
89. Co-ordination vs depth
90. Innovation requires people, process and leadership
91. The innovation landscape map by Gary P. Pisano
92. Creating a high-performance environment
93. Linear vs systems thinking
94. Traits that enable systems thinking
95. The balanced leader using the Harrison paradox graphs
96. 360-degree feedback in the open
97. Cost and reporting alignment to TMRW across various units
98. How to inspire and attract talent
99. Important core attributes
100. Employee motivation vs company processes
101. The digital revolution
102. Years to reach a valuation of $1B or more
103. Types of digital transformation
104. Accenture s disruptability index by industry
105. Boston Dynamics robot improvements over time
106. Digital transformation complexity vs coverage
Foreword
I read Driving Digital Transformation and found it to be an excellent guide for anyone looking to build a digital bank. Dennis belief in the virtual bank business model is commendable and as someone who has seen the banking industry over decades and experienced all the changes, I find the content extremely credible.
A comprehensive and structured playbook to build a digital bank was lacking in the industry, but thanks to Dennis passion to share his experience on paper, I see this as a tremendous benefit to those who apply the principles, not only for incumbents starting on their journey but traditional bankers as well. This book will push the industry forward, so thank you, Dennis, for this contribution.
While reading the book, I would often pause to reflect on my own journey building a digital bank while being the CEO of a traditional bank. This unique perspective let me appreciate both the courage of virtual bankers bringing an idea to life, and the boldness of traditional bankers for always adapting to a rapidly changing industry with innovative solutions. A traditional bank has a franchise value and a proven track record, while a virtual bank as a concept is a lot harder to justify. So, I would often get asked why we were building a digital bank when we already had a successful and established traditional bank. I would always respond, Why not? And this Why not? mindset is ne