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STRATEGIC TECHNOLOGY MANAGEMENT
“Leveraging Technology to Achieve the Bank's Business Strategy”
Kevin F. StreffProfessor of Cybersecurity
Dakota State University Madison, SD
August 9, 2018
STRATEGIC TECHNOLOGY MANAGEMENT
“Leveraging Technology to Achieve the Bank's Business Strategy”
Exercise 1
Kevin F. Streff Managing Partner
SBS CyberSecurity, LLC Madison, SD
[email protected] 605-270-0790
August 9, 2018
STRATEGIC TECHNOLOGY MANAGEMENT
“Leveraging Technology to Achieve the Bank's Business Strategy”
Sample Project List
Kevin F. Streff Managing Partner
SBS CyberSecurity, LLC Madison, SD
[email protected] 605-270-0790
August 9, 2018
Strategic Technology Management
Dr. Kevin Streff
2018 University of Wisconsin Graduate School of Banking
What technologies are changing business?What technologies are changing banking?How can you formalize your strategy as it relates to these technologies?
Two Key Points1. Technology
explosion in banks is just beginning
2. Cybersecurity in America and banks is a more pressing issue than ever before
3
Technology “Laws”Moore’s LawKryder’s Law
Gilder’s LawMetcalfe’s Law
What type of bank are you?
Technology is Breaking Down Geographic Barriers and Providing Quality Products/Services Without the Need of Physical Infrastructure
Technology is Changing Business ModelsEducation:Capella UniversityUniversity of PhoenixLSUeLearningChange
Technology is Changing Business Models
MedicalMDLiveCare, RingADoc and Zipnosis“waiting room or living room…your choice”https://www.asme.org/engineering-
topics/articles/robotics/robo-doctor-will-see-you-now
Self serviceAutomationRemote service
Visual Communications Takes video conferencing to a new level with
programs like SKYPE, FaceTime, and others giving us video communication on phones, tablets, and home televisions.
Will be integrated with current video conferencing systems, fueling this as a main relationship-building tool for businesses of all sizes.
TIP: Visual communication may become popular for customer service during mobile banking experiences
Gamification of Awareness, Training and Education Will fuel a fast moving hard trend of using
advanced videos, simulations and skill-based learning systems that are self-diagnostic, interactive, game-like, and competitive, all focused on giving the user an immersive experience.
TIP: Use Videos instead of words WordsVideosGames
IoT and Insurance
If a sensor can tell your insurance company when, where and how you drive then your car insurance will be able to offer insurance for actual usage and risk.
If you are willing to wear sensors on your body then life and health insurance can be personalized.
Data Analytics
Business Intelligence
Provides historical, current, and predictive views of business operationsData aggregation from unrelated
systems (i.e., core, loan, CRM, financial systems, Google Analytics)
Interactive data visualization and analyzation in real-time
Customized dashboard, reports, queriesMobile features
Dashboards
AI – Machine Learning https://www.technologyreview.com/vide
o/609388/ais-language-problem/
Self Service While consumers have embraced digital
technologies to varying degrees, digital has become more important to consumers across the board.
Some consumers have completely “gone digital”—20 percent of bank customers are digital-only users.
www.sbscyber.com
17
Payment Systems The most widely recognized changes
have been innovations in payment technology.
Industry leaders such as Apple and Google have introduced services which take some aspects of consumer banking away from established institutions and put it into the hands of the tech world.
Similar trends are continuing in the lending space, with small, disruptive firms such as SmartBiz and FundBox eating into the market share of larger lenders.
• Automation and AI will encompass new processes that were previously handled manually by human employees at their desks.
• 2018 will see the greater prevalence of ‘robo-advisers’ – automated financial consultants able to give tips on investment portfolios and advise bank customers.
• A number of large players have already embraced robo-adviser automation to enable their customers to make better investment decisions, including investment heavyweights BlackRock and Vanguard.
• A report by ATKearney stated that fund managers which do not implement robotic advisers potentially could lose up to $90bn annually to firms that have made the leap to automation.
Robo-Advisors
Video Banking• Seeing a development in banking customer
service which seeks to bring the human element back to the client/bank relationship.
• More banks are exploring video banking, which means that customers are able to have a virtual meeting with their adviser online.
• This has the potential to overhaul existing call center models, and will hopefully enable customers to build stronger relationships with their banks.
Does our existing IT infrastructure have the ability to support the new innovations it takes to compete in tomorrow’s marketplace?
Agile Architectures• This means that banks can more easily
integrate new technology like the blockchain or new payment technologies into their existing product offerings.
• With so many new, smaller and agile players in the marketplace, the ability to quickly put new technology to work is key.
• Time to market is an imperative as the early adoption of a new technology is often the differentiating factor for consumers when choosing who to bank with.
Agile Architecture• Banks Will Enhance Services with External
APIs• Banks have made use of application
programming interfaces for years, but APIs — the software middlemen that connect applications, including mobile apps, to back-end office IT systems — will increasingly be used to enable new services. APIs provide the gateway for innovative, contextual solutions that would be difficult to offer without open banking.
Agile Architecture• Mobile banking will become more frictionless• Mobile banking will continue to accelerate
past standard banking in customer preference as their digital, user and customer experiences become more enriched and data-informed
• This will include consumer-to-business frictionless digital banking, consumer-to-consumer one-click payments, new cryptocurrency opportunities, password-free biometrics, locational services and offers, and conversational interfaces.
What is Cyber Security?Protecting
ConfidentialityIntegrity Availability
WhereNetworksVendorsCustomersBuildingsEndpointsPartnersFacilitatorsAggregatorswww.sbscybe
r.com
7
8/2/2018
Introducing and Managing Game Changing Technologies
1. Technology explosion in banks is just beginning
2. Cybersecurity in banks is a more pressing issue than ever before
• Where do you stand?• Is this an opportunity or threat?• Mobile banking is commodity, but
what about your bank’s IoT strategy?• Is technology a strength of your bank?• Have you invested in the security
necessary to support these electronic delivery systems?
Strategic Planning Exercise
Conduct Exercise
“The edge soon becomes the center with a new edge emerging”
Streff, 2018
