Bill Gates’ quote, “Banking is necessary, but banks are not,” showcases the opportunity for financial services digital transformation. The next transition from industry 4.0 to 5.0 will impact all sectors, including banking. It will combine information technology and automation, based on artificial intelligence, person-robot collaboration, and sustainability. It is time to analyze this transformation in banking deeply, so that the sector can adequately change to the ‘New Normal’ and a wholly modified banking model can be properly embedded in the business.
This book presents a conceptual model of banking 5.0, detailing its implementation in processes, platforms, people, and partnerships of financial services organizations companies. The last part of the book is then dedicated to future developments. Of interest to academics, researchers, and professionals in banking, financial technology, and financial services, this book also includes business cases in financial services.
Author(s): Bernardo Nicoletti
Series: Palgrave Studies in Financial Services Technology
Publisher: Palgrave Macmillan
Year: 2021
Language: English
Pages: 565
City: Cham
Foreword
Contents
Acronyms, Abbreviations, and Currencies
List of Figures
List of Tables
1 Introduction
2 Industry 5.0 and Banking 5.0
Introduction
Banking 5.0
First Industrial Revolution: Banking 1.0
Second Industrial Revolution: Banking 2.0
Third Industrial Revolution: Banking 3.0
Fourth Industrial Revolution: Banking 4.0
Fifth Industrial Revolution: Banking 5.0
Business Model
Business Model Architecture
Business Models Philosophy
Value Propositions
Customer Proximity
Customer Partitions
Place or Accesses
Platforms and Resources
Essential Processes and Activities
Partnerships and Collaboration
Pricing and Revenues
Payments for Costs and Investments
Protection
Business Model and Banking 5.0
Benefits and Challenges of Business Model
Conclusions
3 Business Model Philosophy in Banking 5.0
Introduction
Digital Transformation
Digital Transformation Architecture
Digital Transformation in Banking 5.0
Benefits and Challenges of the Digital Transformations
Innovation Roadmaps
Roadmap for a Digital Transformation
Critical Success Factors
Critical Success Factors for Industry 5.0
Collaboration
Confidence
Creativity
Competence
Content
Customization
Cognition
Conservation
Contribution
Significant Challenges
Innovation Acceptance Model
Conclusions
4 Proposition of Value and Fintech Organizations in Banking 5.0
Introduction
Banking 5.0 and Value Network
Value Network Architecture
Value Network in Banking 5.0
Benefits and Challenges in Value Network
New Banking Business Models
Challenger Banks
Neobanks
Digital Payment Instruments
Fintech Organizations
Fintech Architecture
Fintech and Banking 5.0
Evolution of Fintech Organizations
Collaboration Between Fintech Organizations and Traditional Financial Institutions
Benefits and Challenges of Fintech
New Products to Add Value
New Banking Products for Cost Leadership
New Banking Products for Differentiation
Open Banking
Instant Payments
Digital Wallet or e-Wallet
Request to Pay
P2P Banking
Other Services
Sustainability
Sustainability Architecture
Sustainability in Banking 5.0
Benefits and Challenges of Sustainability
Conclusions
5 Artificial Intelligence in Support of Customer Proximity in Banking 5.0
Introduction
Value Proposition and Customer Proximity
Customer Proximity Architecture
Customer Proximity in Banking 5.0
Benefits and Challenges of Customer Proximity
Customer Relationships Management
Architecture of Customer Relationship Management
Customer Relationship Management in Banking 5.0
Customer Delight Management
Customer Contact Management
Customer Profitability Management
Benefits and Challenges of Customer Relationship Management
Conclusions
6 Customer Partition in Banking 5.0
Introduction
Customer Partition
Millennials and Generation Z
Segmentation with AI
Robo Advisors
Robo-Advisor Architecture
Robo-Advisors in Banking 5.0
Benefits and Challenges of Robo-Advisors
Conclusions
7 Place or Accesses in Banking 5.0
Introduction
Banking 5.0 and Distribution
Distribution Models Architecture
Distribution Models in Banking 5.0
Distribution Models Challenges and Benefits
Customer Proximity Center
Customer Proximity Center Architecture
Customer Proximity Center in Banking 5.0
Persons
Processes
Structure
Platforms
Benefits and Challenges of a Customer Proximity Center
Conclusions
8 Platforms for Banking 5.0
Introduction
Platforms
Architecture for the Platforms
Platforms in Banking 5.0
Benefits and Challenges of Banking 5.0 Platforms
ABN Amro
Artificial Intelligence
Artificial Intelligence Architecture
The Five Waves of Artificial Intelligence
Artificial Intelligence in Banking 5.0
Benefits and Challenges of Artificial Intelligence
Components of Artificial Intelligence
Machine Learning
Cognitive Solutions
Natural Language Processing
Neural Networks
Rule-Based Reasoning or Expert Systems
Computer Vision
Big Data Analytics
Conclusions
9 Processes in Banking 5.0
Introduction
Basic Banking Processes
Development Process
Digital Marketing
Onboarding Process
Other Processes
Design Thinking
Design Thinking Method
Design Thinking in Banking 5.0
Benefits and Challenges of Design Thinking
Lean and Digitize Banking 5.0
Conclusions
10 Persons in Banking 5.0
Introduction
New Working Models
Remote Working
Person Contribution to Banking 5.0
New Competencies
Leadership in Banking
New Competencies in Banking 5.0
Risk Scorer
Machine Learning Engineer
Data Scientist
Process Architect
Technologist
Banking in Team
Persons and Organization
Processes
Platforms
Protection or Security
Education 5.0
Robotic Process Automation
Robotic Process Automation Architecture
Human–Machine Collaboration
Robotic Process Automation in Banking 5.0
Benefits and Challenges of Robotic Process Automation
Conclusions
11 Partnerships in Banking 5.0
Introduction
Uber
Banking 5.0 and Partnerships
Ecosystems
Intermediaries for Banking
Conclusions
12 Artificial Intelligence and Pricing in Banking 5.0
Introduction
Revenue in Banking
Pricing 5.0
Pricing Architecture
Information Collection
Risk Analysis
Credit Rating
Decision
Pricing
Implementation
Monitoring of Risks and Lessons Learned
Pricing in Banking 5.0
Benefits and Challenges of Pricing
Conclusions
13 Payments for Costs and Investments in Banking 5.0
Introduction
Contracts Life Cycle Management
Smart Contracts Architecture
Smart Contracts in Banking 5.0
Benefits and Challenges of Smart Contracts
Conclusions
14 Protection of Banking 5.0
Introduction
Cyber Security
Cyber Security Architecture
Cyber Security in Banking 5.0
Benefits and Challenges of Cyber Security
Regulation Compliance
Regulations
Data Privacy
PSD2
Money Laundering
AI Regulations
Regtech
Resilient Solutions
Conclusions
15 Future of Banking 5.0
Introduction
Scenarios
Future Business Model Components
Proposition of Value
Proximity
Partition
Place
Platforms
Platforms Development
Multi-Sided Platforms
Multi-Sided Platforms Architecture
Multi-Sided Platforms in Banking 5.0
Benefits and Challenges of Multi-Sided Platforms
Processes
Persons
Partnerships
Bigtech
Bigtech Organizations Architecture
Bigtech Organizations and Banking 5.0
Benefits and Challenges of Bigtech Organizations
Conclusions
16 Conclusions
Glossary
References
Sitography (Accessed 20 March 2021)
Web Places of Banking Cases (Accessed 20 March 2021)
Index
