Disruptive innovation in financial services: A blueprint for digital

A Blueprint for Digital IdentityThe Role of Financial Institutions in Building Digital IdentityAn Industry Project of the Financial Services Community | Prepared in collaboration with DeloittePart of the Future of Financial Services Series • August 2016 2WORLD ECONOMIC FORUM | 2016Foreword ContactFor feedback or questions, please contact:R. Jesse McWaters, Lead Authorjesse.mcwaters@weforum.org+1 (212) 703‐6633Consistent with the World Economic Forum’s mission of applying a multi‐stakeholder approach to address issues of global impact, the creation of this report involved extensive outreach and dialogue with the financial services community, innovation community,technology community, academia and the public sector. The dialogue included numerous interviews and interactive sessions to discuss the insights and opportunities for collaborative action.We extend sincere thanks to the industry and subject matter experts who contributed their unique insights to this report. In particular, the members of the Project’s Steering Committee and Working Group, who are introduced in the following pages, played an invaluable role as experts and patient mentors.We are also very grateful for the generous commitment and support to Deloitte Consulting LLP in the U.S., an entity within the Deloitte1 network, in its capacity as the official professional services advisor to the World Economic Forum for this project.1Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Acknowledgements 3WORLD ECONOMIC FORUM | 2016 4WORLD ECONOMIC FORUM | 2016AcknowledgementsMembers of the Steering CommitteeThe following senior leaders of global financial institutions have provided guidance, oversight and thought leadership to the “Disruptive Innovation in Financial Services” project as its Steering Committee:Jason HarrisChief Executive Officer, International Property and Casualty, XL GroupMichael HarteChief Technology Officer and Chief Operations Officer, BarclaysAxel LehmannChief Operating Officer, UBSAnju PatwardhanChief Innovation Officer, Standard Chartered BankDavid PuthChief Executive Officer,CLS GroupWilliam SheedyGlobal Executive, Corporate Strategy, M&A, Government Relations, VisaDietter WemmerChief Financial Officer, AllianzBob ContriVice Chairman, Deloitte & Touche LLPDavid Craig President, Risk and Financial,Thomson ReutersJohn Flint Chief Executive Officer, Retail Banking and Wealth Management, HSBCKim Hammond Chief Operating Officer,Deutsche Bank 5WORLD ECONOMIC FORUM | 2016AcknowledgementsMembers of the Working GroupThe project team would also like to acknowledge the following executives of global financial institutions who helped define the project framework and shape strategic analyses as its Working Group:Victor MatarranzDirector of Strategy & Chief of Staff to the CEO, SantanderNeil MummVP Corporate Strategy, VisaMax NeukirchenGroup Head of Strategy, JP Morgan ChaseChristine O’ConnellGlobal Head of Strategy &Business Development, Thomson ReutersRobert PalatnickManaging Director and Chief Technology Architect, DTCCKosta PericDeputy Director Financial Services for the Poor, Bill and Melinda Gates FoundationJustin PinkhamSVP and Group Head, Payments Innovation, MasterCardBob ReanySVP and Group Head, Identity Solutions, MasterCardPeter RutlandSenior Managing Director, CVC Capital PartnersNicolas de SkowronskiChief of Staff,Bank Julius BaerHuw Van SteenisManaging Director and Head of Financial Services Research, Morgan StanleyColin TeichholtzPartner & Co‐Head of Fixed Income Trading, Pine River CapitalFabien VandenreydtHead of Markets Management, Innotribe & the SWIFT Institute, SWIFTTom BrownPartner, Paul HastingsLena Mass‐Cresnik, PhDHead of Innovation, Strategic Product Management, BlackRockChristof EdelGlobal Head of Trading