When it comes to fintech, investment banks might need to move away from only financing and acquisitions, and turn toward partnerships and collaborations. Learn more: https://www.accenture.com/us-en/insight-investment-bank-challenge-08-innovation-fintech?c=fs_cmfy17sldshr_10000008&n=smc_0517

1. 08TOP 10
CHALLENGES

2. CHALLENGE 08 - Top 10 Challenges for Investment Banks
CHALLENGE 08
GETTING INNOVATION
RIGHT
TOP 10 CHALLENGES FOR
INVESTMENT BANKS 2017
#IBTOP10
2

3. CHALLENGE 08 - Top 10 Challenges for Investment Banks
GETTING INNOVATION
RIGHT
3
01
02
03
04
05
06
07
08
09
10 GETTING FIT
AUTOMATION
LOCATION
STRATEGY
DIGITAL
TALENT
CLIENT EXPERIENCE
JOURNEY
TO CLOUD
INNOVATION
RESEARCH
FUNCTION
BLOCKCHAIN
PRUNING FOR GROWTH

4. CHALLENGE 08 - Top 10 Challenges for Investment Banks 4
Investment banks have a history of innovation…
DATA-CENTER VIRTUALIZATION
IN-MEMORY COMPUTING
ALGORITHMIC TRADING
…and early adoption of new technologies:
ASSET-BACKED SECURITIES
DERIVATIVES
STRUCTURED PRODUCTS

5. CHALLENGE 08 - Top 10 Challenges for Investment Banks 5
GETTING INNOVATION
RIGHT
Now, financial technology, or fintech, has
become the next frontier.
Between 2010 and 2015:
$47Billion $2.6Billion $700Million
was invested in
fintech startups
globally
was invested in
capital markets
fintechs
was invested in
trading fintech
Source: Accenture analysis on CB Insights data

6. CHALLENGE 08 - Top 10 Challenges for Investment Banks
PLATFORMS
New ways of growing/doing
business
6
GETTING INNOVATION
RIGHT
Technology trends to watch
BLOCKCHAIN
Impact on centralized business
models
CLOUD
Agility, cost, security,
compliance
SOCIAL MEDIA
Business intelligence and customer
interaction
DIGITAL SECURITY
CxO/board’s journey in the
extended ecosystem
BANKING APIS
Time to market, partner
integration
INTELLIGENT
AUTOMATION
New co-worker for the digital
age
ADVANCED
ANALYTICS
Customer insights to the
next level
INTERNET OF
THINGS
A door to the customers’
value chain

7. CHALLENGE 08 - Top 10 Challenges for Investment Banks 7
GETTING INNOVATION
RIGHT
Investment banks are responding to fintech
with four main strategies:
VENTURE
INVESTMENTS
STARTUP
ACQUISITIONS
IN-HOUSE
INNOVATIONS
COLLABORATIONS
01 02
03 04

8. CHALLENGE 08 - Top 10 Challenges for Investment Banks 8
GETTING INNOVATION
RIGHT
Of these four strategies, collaborations via joint innovations
and incubation programs are growing in popularity.
How do you currently collaborate, or plan to collaborate, in the next three
years with startups/entrepreneurs on innovation?
26%
38%
34%
36%
36%
19%
4%
7%
Base: Financial Institution respondents in G20 countries who currently collaborate with startups
Joint innovation to develop
new products and services
Accelerators/incubators
Corporate venture investment
Vendor relationship
Now In three years

9. 9
GETTING INNOVATION
RIGHT
A case study in fintech tourism
Investment bank A: The proactive innovator
The chief digital officer sets an innovation strategy.
Key groups (investment, IT, HR, etc.) rally behind the CDO,
establishing an action plan that identifies industry utilities they will:
LEAD PARTICIPATE IN AVOID
Collaboration could facilitate sustainable growth and
positive business results
CHALLENGE 08 - Top 10 Challenges for Investment Banks

10. CHALLENGE 08 - Top 10 Challenges for Investment Banks 10
GETTING INNOVATION
RIGHT
A case study in fintech tourism
Investment bank B: The laissez-faire approach
A standalone fintech fund
invests in companies that
participate in its own contest.
Operations lacks a
coherent strategy for
industry utilities.
IT believes that cloud
computing is a fad and a low
profile is necessary to avoid
regulatory scrutiny.
New recruits are not
aware of the bank’s
activities.
Lack of organization could force the bank to play
catch-up in the next two to five years.

11. 11
GETTING INNOVATION
RIGHT
Five common fintech challenges facing investment banks
Fintech tourism
(focusing on fintech
instead of benefit-
driven innovation)
Finding funding
for fintech
Tracking the
proliferation of
fintech startups
Getting fintech
solutions to work in
an enterprise model
Interfacing with
legacy systems
CHALLENGE 08 - Top 10 Challenges for Investment Banks

12. CHALLENGE 08 - Top 10 Challenges for Investment Banks
GETTING INNOVATION
RIGHT
12
Four steps to avoid the fintech money pit
01
Develop a cohesive innovation architecture.
Designate a chief digital officer to set a
comprehensive strategy and build a framework that
relies on collaboration from all innovation sources.

13. CHALLENGE 08 - Top 10 Challenges for Investment Banks
GETTING INNOVATION
RIGHT
13
Four steps to avoid the fintech money pit
02
Establish a sound fintech strategy.
Make a sound fintech strategy an element of
the overall innovation architecture to drive
inspiration and benefit across all departments.

14. CHALLENGE 08 - Top 10 Challenges for Investment Banks
GETTING INNOVATION
RIGHT
14
Four steps to avoid the fintech money pit
03
Combine various technologies.
Instead of viewing each innovation in
a vacuum, consider a more holistic
adoption strategy.

15. CHALLENGE 08 - Top 10 Challenges for Investment Banks
GETTING INNOVATION
RIGHT
15
Four steps to avoid the fintech money pit
04
Build partnerships across industries.
Collaborate with digitally savvy startups
to build platform advances without costly
build-outs.

16. 16
GETTING INNOVATION
RIGHT
CHALLENGE 08 - Top 10 Challenges for Investment Banks
Instead of constantly throwing
money at the hottest, latest startups,
banking leaders need to
find a way to adopt
fintech in a
meaningful way.

17. CHALLENGE 08 - Top 10 Challenges for Investment Banks
TAKE THE
NEXT STEP
17
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