With Millennials coming of age it is even more important than ever for Financial Institutions to provide a strong digital experience. In order to deliver that Financial Institutions need to become Digital Masters - accelerating their digital business, turn data into insights, transform the customer experience and embrace the mobile mind shift. Capgemini’s Trends in Transformation powered by HPE is your Jedi Master. Are you ready to become a Digital Master? Join us to start your journey. Presented at HPE Discover Las Vegas 2016.

1. Becoming a Digital
Master
Christian Cole, Capgemini

2. Capgemini operates globally supporting the leading brands in
multiple industries
$ 13.2 Billion in revenue, around 180,000 people worldwide
Headcount by region
UK & Ireland 12K
Nordic Countries
5K
North America
16K
Southern Europe & Latin
America
16K
Asia Pacific 110K
Benelux 11K
Central Europe
11K
France
23K
Global
Headcount
~180,000
Recognized by industry experts for excellence
Positioned as a Leader in Digital Strategy Consulting Services by Kennedy Consulting
Ranked #1 in client satisfaction score in a Forrester scorecard that rates U.S. clients’
providers
Ranked #1 IT Outsourcer Worldwide by Black Book of Outsourcing
Partnership with MIT for digital transformation
Consistently rated as a top testing provider by Gartner, IDC, Ovum and Nelson Hall
Telecom, Media &
Entertainment
12%
22%
5%22%
8%
17%
14%
Customer Products,
Retail, Distribution &
Transportation
Manufacturing,
Automotive & Life
Sciences
Energy, Utilities
& Chemicals
Financial
Services
Others
Public Sector
Revenue by industry
Our Services
~50,000 Application Development Professionals
~17,500 Testing Professionals
~70,000 Application Maintenance Professionals
We partner with our clients to drive end-to-end solutions
Business Strategy – Derive strategies through innovation and insights
Transformation – Define and win the course forward
Execution – Integrated goals to drive higher level of predictability
Operations – Industrialized operation and governance
4

3. Financial Services is foundational with market leading breadth
and depth of think, build, and run service offerings
Our Core Strength – Domain CoE’s
Property & Casualty
Life & Pensions
Cards & Payments
Core Banking
Risk & Compliance
Capital Markets
Channels
Key Differentiators:
The Collaborative
Business Experience™
Domain Led Solutions
Rightshore®: Global
Talent, One Team Model
*Ranked by revenue; Forbes ‘The Global 2000’ for 2013; **Ranked by the Leasing Monitor 100
Over 900 financial services clients including:
− 9 of the top 15 banks*
− 6 of the top 10 consumer finance companies*
− 13 of the top 15 insurance companies*
− 13 of the top 15 asset finance companies**
− 10 of the top 15 investment banks
− Wealth management
− Trade lifecycle management
− Asset management
− Risk/compliance
− Payment hubs
− SEPA
− Cards issuing platform consolidation
− Mobile, Pay2SaaS, Prepaid
− Digital transformation
− Mobility & client/agent front ends
− Business process
management
− Core banking package implementation
− Mortgage & loans
− Integrated front office solutions − Policy transformation
 Basel
 Fraud
− Finance and risk integration
− Stress testing (CICAR)
− Commercial insurance risk
analytics (CIRA)
− Claims transformation
− Policy processing & underwriting
− Insurance Connect
Clients
− Banking
− Capital Markets
− Risk Mgmt & Compliance
Financial Services Domain
− Payments & Cards
− Insurance
Financial Services is Capgemini’s largest sector with €2.3bn 2014 revenue
5
Capgemini Revenue from FS (€Bn)
1.4
1.6
2.0 2.0
2.2 2.3
2009 2010 2011 2012 2013 2014
0.0
0.5
1.0
1.5
2.0
2.5
Domain and Partner Awards
− Named Top 25 Enterprise Technology Vendor by American Banker’s Financial
Insights every year since 2005
− Client solution winner in The Banker Technology annual awards
− Winner of Multiple Pegasystems Partner Excellence Awards
− Microsoft Service Partner of the Year and Cloud Innovation Partner
− Oracle Specialized Partner of the Year for Infrastructure
− SAP Pinnacle Award for BPO and BPaaS Provider of the Year
− Salesforce.com Global Marketing Cloud Award for Innovation

4. … with a long history of leading research in financial services
www.worldpaymentsreport.
com
www.worldinsurancereport.
com
www.worldretailbankingreport
com
www.worldwealthreport.
com
World Retail Banking
Report
World Wealth Report World Insurance Report World Payments Report
Asia-Pacific
Wealth Report
U.S. Wealth
Report
6

5. Capgemini is a leader in thought leadership
Trends in
Payments &
Cards:
Acquirers
Insurance All
Channel
Experience
Trends in
Insurance
Channels
Trends in
Insurance:
Front Office
Innovating through
Smart Payment
Analytics
Ready2Series:
Payment Service
Bureau
Trends in Retail
Banking
Channels:
Opportunities in
a Changing
Landscape
Core Banking
Transformati
on:
Measuring
the Value
Ready2Series:
Online
Payments
The Future
of Bank
Branches
Core Banking
Transformation
with
FLEXCUBE®
Thought Leadership (Expert Connect)
&
MIT + Capgemini Research
Regulatory Changes
in the Investment
Banking Industry
Data
Governance
for Financial
Institutions
Global
Trends in
Capital
Markets:
Buy-Side
&Sell-Side
Regulatory
Changes
in the Investment
Banking Industry
1234 123456 12345
Banking
Capital
Markets
Insurance
Payments
& Cards
Background
− Capgemini partnered with MIT in order to highlight specific areas for
capability development, and Identify key opportunities for investment
− Our research, with over 400 companies worldwide, shows how those
organizations that have succeeded in delivering a fundamental
transformation of their business through digital technologies benefit
from a considerable ‘Digital Advantage’ and demonstrate significantly
better financial performance than their peers
Key Outputs
− According to 78% of respondents, achieving digital transformation will
become critical to their organizations within the next two years
− However, 63% said the pace of technology change in their
organization is too slow
− The most frequently cited obstacle to digital transformation was “lack
of urgency.”
− Only 38% of respondents said that digital transformation was a
permanent fixture on their CEO’s agenda
− Where CEOs have shared their vision for digital transformation, 93%
of employees feel that it is the right thing for the organization. But, a
mere 36% of CEOs have shared such a vision
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6. Financial Service Trends
The financial services industry today is in a state of flux with multiple technology, regulatory and demographic factors cutting
across the length and breadth of the value chain. These factors are impacting the way financial service firms conduct their
business, as the traditional methods are not enough to meet increased customer experience expectations and improve
profitability.
The key trends in the financial services industry are
largely driven by technological disruption
Financial firms are transforming their core systems to become lean,
agile, and achieve better strategic positioning, risk management and
compliance
Customers expectations are being more demanding for consistency
across all channels
Firms are leveraging Analytics and Big Data for faster processing and to
eliminate fraud
Non-traditional firms are entering the industry with partnerships,
alliances, joint-ventures and acquisitions
Financial service firms will increase focus on leveraging Agile
deployment to improve their speed to market
8

7. Financial Services is facing an unprecedented and
disproportionate rate of change
Customers Preferences
− Gen Y has low faith in traditional banks – social & digital
− Integration of social and banking services
− Want deeper integration into ‘Daily Life’ (Banking no longer a detour) – Facebook
payments, Starbucks Wallet)
− Value Added – Advisory, insight (Next Best Action?)
− Voice Opinions – (NPS – Net promoter Score)
Regulatory Pressures
− Severe Penalties (BofA – $17bn RMBS, BNPP-$8.97b,
$3.4bn for FX Fixing)
− Financial Conduct
− Capital (Basel III)
− Pricing (e.g. Interchange fee)
− Non-Bank Access (e.g. PSP licensing)
− Break up ‘Too Big to Fail’ Banks (UK)
− Proposed – XS2A (Banks to give access to customer
accounts to non-banks)
Technology Change
− SMAC enabled Digital dimension
− Mobile : mPoS (Square, SumUp), HCE (BBVA), Location
enabled, Wallet (MasterPass, Softcard)
− Omni channel experience
− Cloud : costs and
− Biometrics (authentication, access) – fingerprint, voice
(nuance)
− Blockchain technology : Bitcoin/Ripple – Crypto-currencies
− Cost pressures – decrease BAU cost
− Cloud based banks and banking services
New Entrants (Non-Banks, Challengers)
− New Direct Banks (Challengers)
− Monetizing their ‘franchises’ – Telcos (T-Mobile), Apple Pay, Paypal
− Integrated propositions (P2P Lending e.g Virgin money, Zopa, P2P
FX – Kantox, midpoint)
− Reach new clients – Unbanked – mPesa
Favoring
customers
Shaking up
the old rules
Enabling
Change
Power to
Customers
9

8. Digital World – New norm of connected people and things…
1,820TB of Data created
# Source: World Economic Forum
*Source: Gartner
168 Million+ emails sent 98,000+ tweets
11Million instant messages
217 new mobile web users
25 Billion Connected
"Things" in use in 2020*
3,5 Billion Cars
13,2 Billion consumer devices
695,000 status updates
698,445 Google searches
2.5 Billion social
network users in 2018
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9. Customers demand a more personalized banking experience
69%
Of consumers would provide
personal information in exchange
for more tailored financial advice
Majority of consumers
want a personalized
banking experience
42%
United
States
43%
Germany
Australia
40%
Global
37%
China
35%
United
Kingdom
1. Invests in your financial wellbeing
2. Provides a plan to help you reach your
financial goals
3. Finds new ways to improve how you
conduct your business
4. Rewards you for being a loyal
customer
5. Finds ways to save you money
73%
advice on increasing
their savings
77%
Identify theft
security
67%
financial
education
73%
assessment of
financial status
Customer experience
Barometer: banking
Percentage of respondents who rated
their experience as either a 9 or 10 of 10
The Top 5 Engagement drivers for
Banking customers
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10. Growing changes in technology will have a substantial impact on both customers and insurers
Insurance firms are leveraging big data and predictive
analytics to create a more personalized insurance experience
Progressive led the movement into driver informatics
with its Snapshot device, which transmits data
about when customers drive, how often they drive, and
how hard they brake
In the new digital age, the insurance industry is
undergoing a significant transformation.
Nearly 40% of
customers cited positive
experiences with
insurance agents…
…while less than 30%
cited positive experiences
with digital channels
like mobile and social
media
Disruptions are occurring over the full spectrum of Financial
Services
IBM’s latest big data study found that 74% of
insurance companies surveyed report that the use of
big data and analytics is creating a competitive
advantage for their organizations, compared with
63% of cross-industry respondents
Digital channels are dragging down customer experience
levels around the world
Agent
39.4%
Internet-
PC
31.1%
Broker
30.7%
Phone
29.2%
Bank
29.1%
Internet-
Mobile
28.9%
Social
Media
21.0%
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11. Financial Service clients are becoming younger and more
mobile
The mobile phone
insurance market will be
worth $48 Billion by 2020
Across every
category,
millennials
show the most
willingness to
explore mobile
frontiers
92.4% Are banking via their
mobile app
If their bank has a mobile
app, consumers are willing
to try it
78.5%
Are using their
mobile app often
$48 B
Millennials are mobile trailblazers
13

12. Financial Service Firms are implementing a digital customer
centric strategy
Create seamless omni-
channel experience
Integrate multiple channels to
allow seamless transactions
and ensure consistent look
and navigation from one
channel to another
Transform a branch’s role from
transacting to advising
Branches are expected to undergo
a significant change, with more
space being allocated to
advisory and self-service functions
Utilize analytics and modeling
Leverage richer analytics-driven
insights to enable a more
personalized approach in
underwriting for insurance firms
Digitize the back-office
Focus on automating back
offices which will lead to
improvements in costs, productivity
and customer service
61% of bankers consider a customer
centric business model to be very
important
41% of executives said that they had
implemented or will implement within 1
year at least one program similar to
retailers
Note: 1- Sample size n=560 clients from leading financial institutions across 17 market; 2- sample size n=78 senior
marketing executives at leading banks
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Leverage mobile services
Focus on interactive mobile services as
mobile banking is displacing online banking
Develop a digital workplace
Drives employee engagement, productivity
and enhances customer responsiveness

13. Predictive analytics is deeply embedded in today’s financial
service businesses
Predictive analytics goes mainstream
Current plans for implementing predictive marketing
analytics systems
61% Implemented/expending
implementation
37% Interested/planning
to implement
2% Not interested
68% of organizations who use predictive
analytics have realized a competitive
advantage
What impact can predictive analytics have on
your organization?
86% assert that predictive analytics will have a
major positive impact on their organization
With nearly one-third indicating it
could be transformative in enabling
them to do things they could not do
before5
What data in your organization can predictive analytics tap
to help you discover new trends and opportunities
The top 5 sources of data tapped for predictive analytics:
15

14. The Cost of Poor Data Quality
Estimated annual cost of data quality problems for
U.S. businesses – Data Warehousing Institute
lost per MINUTE in the U.S. due to poor
data quality – DWI
Companies that have
identified significant costs
from poor data
Companies that have delayed
or cancelled new IT systems
due to poor data
Companies that are confident
in their data quality
Companies that are confident
in the data that is given to
them by external sources
85%
50%
33%
15%
Survey results from
“The Costs of Poor
Data Quality” by
Gartner
of benefits targeted in
the annual capital
budget are never
realized because of
poor data -Gartner
of operating revenue is lost due to
poor data quality
-Total Information Quality Mgmt
of CPOs identify poor data
quality as a key barrier to
implementing their systems
– Deloitte
of CPOs identify poor data
integration as a key barrier to
implementing their systems
of procurement professionals said that data
quality was extremely important or crucial to
achieving their procurement objectives
of overall labor productivity is
effected by poor data quality
– Gartner
of helpdesk calls come in
based on master data errors.
16

15. Analytics, big data, and the digital revolution “The Big Picture”
17

16. Drivers for security in Digital Transformation
Are organization’ Information Security functions
mature to support a secure Digital
Transformation?
How Tech Companies Prepare for Cyber
AttacksProtection of
customer data
Prevention of
system/process outage
Protection of
personal data
Protection of
assets and IP
Strengthening
competitiveness
Support for
business goals
Enabler for digital
transformation
Safeguard for
reputation
Increase of
efficiency/construction
infrastructure
protection
Compliance Legal requirements
Drivers for Information Security
98% of small and mid-size technology and
healthcare companies are maintaining or increasing
resources devoted to cybersecurity this year, preparing
for when, not if, cyber attacks occur
50% Are increasing their spend, and investing in
active response, not infrastructure.
18

17. Infrastructure Trends
− Traditional Applications
− Price/Performance Plan Driven
− Long Cycle Times
2015 – DevOps World
− Next Gen Applications
− Agility
− Containerization
− Customer Experience
− Continuous Process Based
− Day/Week Cycles
− Software-Defined Network
− Modular Data Center/thousands of
containers
− Energy efficient/renewable energy
− IoT driving interconnections across
service providers
− Self-orchestrating infrastructure
19
2010 – IT owned Data Center
2020 – Hyperconveged
Data Center

18. Financial Service Infrastructure considerations to implement
today
Integration – Integrate the latest services and technology with your existing business and IT systems, without wholesale change. Unlock data by creating an API
layer over your existing systems of record. Orchestrate services so that they work as a coordinated whole. Reuse pre-implemented Enterprise Integration
Patterns; i.e. pub/sub, orchestration, etc…
API Management – Securely expose your APIs for partners and customers to consume. Accelerate your mobile strategy. Rationalize duplicate IT systems.
Centralized publishing, advertising and governance of RESTful & SOAP APIs. Analyze & improve your APIs. Monetize & control your APIs with billing and rate
limiting.App App
Identity Access & Management – Central administration of identity and access management across your organization, e.g.. customers/citizens, employees,
external businesses. Provide registration, authentication and authorization across on premise and SaaS services. Multi-factor Authentication. Federated Login to
services underpinned by protocols like oAuth.
Service Management – Provide a single view of your IT landscape. Display technical and business metrics on clear dashboards. Real-time monitoring and
querying of behavior and transactions. Proactive, not reactive approach to detecting and fixing faults with your live service.
Automated Provisioning – Treat infrastructure as code by using scripting, virtual machines and containerization to automatically provision infrastructure and
deployments. Enable the release of new features into production on a regular basis. Move your organization from continuous integration to continuous delivery to
continuous deployment. Couple this accelerator with the ALM accelerator and enable a DevOps culture within your business.
Application Lifecycle Management – Automate and visualize the build-test-release cycle into a well understood pipeline of activities. Govern multiple
suppliers. Project and task management. Project and agile team reporting. Requirements management. Collaboration tools to enable clients and suppliers to
work together. Configuration management tooling to provide source code, artifact and release management functions. Continuous integration tooling.
ALM
App
20

19. The disruptive impact of Digital Transformation on QA and
Testing
20152012 2013 2014
How QA and Testing are focused on delivering high quality, secure user experiences, with
assured business outcomes
Digital transformation has pushed strong recognition of QA and Testing
Growth in IT spend allocated to QA and Testing to meet the
urgent need to catch up with the fast-changing world
The proportion of IT spend allocated to QA and Testing is
predicted to rise to
21

20. The pace of Digital Transformation will accelerate through 2020
Technology trends
− Internet of Things
− DevOps
− Predictive analytics
− Explosion of cloud services
− Mobile
Evolving customer behavior
− Digital usage crossing generations
− Mobile internet use increasing
− Digital culture spreading
worldwide across industries
− Emerging markets increasingly
adopt mobile banking
Changing FS Landscape
− Security has become #1 priority
− Increased use of analytics
− Financial service firms fully
integrated in the customer
experience embedded with digital
(flagship, showroom)
22

21. The level of capabilities and depth of transformation determine
how fast you can go
Slow
Fast
Faster
Fastest
Speed&Agility
You
are
here?
What are we doing
− Full DevOps
− Full function PaaS in production
− Containerization & commodity VMs
− Microservices
− Monolithic code trunk
− Cloud throughout
What does it look like
− Near real-time app development
− Real-time customer & business
feedback
− Automated or 1-click deployments
− Integrated dev and
ops teams
What are we doing
− Agile methodology
− Continuous Integration to Continuous
Delivery
− PaaS like production environment
− Partial use of containers and
microservices
− Cloud in pre-production environments
What does it look like
− Significant automation in build, test &
deploy
− Extensive app behavior &
performance feedback
− Cross-functional software delivery
teams
What are we doing
− Deployment & build automation
− Infra as code
− Cloud in dev and test
What does it look like
− Click to build and deploy
− App health monitoring
− Minimize operational bottlenecks
23

22. Transformation Roadmap
20162014 20202012
CEO and
top executives
push digital
momentum
− Personify the digital culture at the leadership level
− Develop client-centric culture
− Value “client-first” communication
− Train for digital
− Develop a tech-savvy culture
− Develop community and intranet
− Communicate and train on delivered now services and demos
Generate momentum Building the foundation Develop a digital value proposition
Build
an agile
operating model
Agile IT and
Operations
Marketing
Branches
− Smart and agile
middleware
− Integrated architecture
− Seamless teaming with
business
− Customer journey focus
− Data model harmonization − API − Selective
outsourcing
− Test and learn
− End-to-end, digitally
optimized processes
− Solution-driven approach
− Open eco-system
− Full deployment of new
services
− Improved customer
experience
Shift to a digital
culture
Leaders
define
operations
and IT
strategy for
digital
Transformation road map
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23. Get more information
25
Session #BB8331 – Business Case Calculator for DevOps Initiatives –Leading Credit card
services provider
Date: Tuesday June 7 – 4:30pm – 5:30pm
Session #BB8404 – Emerging trends in testing – preliminary research findings from the World
Quality Report
Date: Wednesday June 8 – 1:00pm – 2:00pm
Session #10134 – Failing and Failing fast in AppDev – how do we keep up in AppSec?
Date: Wednesday June 8 – 2:30pm – 3:30pm
Session #BB8468 – Get ready to Modernize the Core
Date: Thursday June 9 – 12:00pm – 1:00pm
Attend these sessions:
www.capgemini.com
Twitter: @Capgmini
LinkedIn: Capgemini
Facebook:Capgemini
Follow us on Social Media:

24. Thank You
Christian Cole Christian.cole@Capgemini.com
Morris Ungar Morris.a.ungar@Capgemini.com
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