The digital transformation of the banking industry and how ... · The banking business is under...

The digital transformation of the banking industry and how lawyers work is affectedEva de Falck, General Counsel

Swedbank

© Swedbank

We are a full-service bank

with four home markets

© Swedbank

50%SALES THAT ARE

COMPLETED

DIGITALLY

80%DIGITAL CUSTOMER

SATISFACTION

1bnDIGITAL

INTERACTIONS

4mDIGITALLY ACTIVE

CUSTOMERS

High digital

penetration with

even greater

potential

© Swedbank

Leadership is changing

Legal managers might

not be the most skilled

specialists, rather the

ones who are truly

interested in leading

other people

4

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Gender and equality is becoming increasingly important

5

Not only is it important

to meet a diversified

customer base with a

diversified law firm

management; gender

equality will also be

important in

procurement processes

© Swedbank

(R)evolutions

6

Mechanical

Production

Industry 0.0 Industry 1.0 Industry 2.0

Mechanical

machinesAssembly line

No machinesLine 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - Human

Enterprise Interconnected

1784 1870

© Swedbank

(R)evolutions

7

Mechanical

ProductionInformation

Industry 0.0 Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0

Mechanical

machinesAssembly line

Algorithmic

machines

Artificial

intelligence

No machinesLine 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - Human

Line 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - Human

Enterprise Interconnected Enterprise Interconnected

1784 1870 1969 Today

© Swedbank

(R)evolutions

8

Mechanical

ProductionInformation Creativity

Industry 0.0 Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Industry 5.0 Industry 6.0 Human 0.0

Mechanical

machinesAssembly line

Algorithmic

machines

Artificial

intelligence? ?

No machinesLine 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - Human

Line 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - Human

Line 1 – Human

Line 2 - Machine

Line 1 – Machine

Line 2 - HumanNo human

Enterprise Interconnected Enterprise Interconnected Enterprise Interconnected

1784 1870 1969 Today

In line to be disruptedDisrupted Under disruption

Media

Travel

ICT & TelCoRetail

Finance

Manufacturing

Healthcare

Transportation

Energy &

Resources

Source: BCG analysis

We are here

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Customer behaviour can change quickly

20172015 20162011 201420132012

BALTICS - INTERNET BANK

BALTICS - MOBILE APP

SWEDEN - INTERNET BANK

SWEDEN - MOBILE APP

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The banking business is under transformation

The customer chooses

where she wants to meet

the bank, with high

demands on information

security in all channels

12

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There are new competitors, and it’s moving very fast

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Regulations = Challenges/obstacles

14

Buzz words = Opportunities

Data Driven Sales

Data Aggregation

Open Banking

Robo-Advice

AI

Blockchain technology

Transparency

Data Aggregation

Digital Wallet

API

Algorithms

Digital On-Boarding

Online mortgage GDPR

Consent

PSD2

GL11

KYC

AML4

GL12

PAD

Screen-scraping

Cyber security

Customer trust

Bank-ID fraud

GDPR breach

Privacy

Reputational Risks

© Swedbank

There are a number of challenges for lawyers in the new landscape

One of them is to be

able to articulate a clear

risk appetite

15

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The way lawyers support business is evolving

We are expected to

provide clear opinions

using language adapted

to the receiver

16

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Should we look upon the rapid development of robotics and AI as a threat to our profession? Or will they be useful tools in a regulated environment?

17