2. WEBINAR Forrester Futurology Episode III: Trends For 2016 And Beyond
Banking, Peter Wannemacher, Senior Analyst
Cybersecurity, John Kindervag, VP, Principal Analyst
Blockchain, Martha Bennett, Principal Analyst
September 26, Call in at 12:55 p.m. Eastern time

3. The Future Of Banking
Peter Wannemacher, Senior Analyst

4. For more than a century, banks have remained largely unchanged in their business models, revenue streams, org structures, and their role in people’s lives.

5. For the past 20 years, banks have done a solid job – but most are still doing the same old stuff through new channels.

6. But banks face a potentially bleak future…

7. Disintermediation yields commoditization

8. Bank brands’ relevance is at stake
Source: Starbucks iPhone app

9. Inaction will lead to a dark future for most
BANKS THAT FAIL TO TAKE ACTION NOW WILL BECOME “DUMB MONEY PIPES”
Utility
relationships
Platform
relationships
Lifestyle-Enhancing
relationships

10. Winning = 20+ years of sustained growth
Customer obsession
Embedded innovation and disciplined iteration
Real-time data, analytics, and action
Digital core banking and foundational digital initiatives
“Nudges” and digital money management
Context-driven personalization for each customer
Predictive banking
AI-enabled financial advice

11. Success will be built on ecosystems
Bear in mind: Ecosystems only work when one entity creates value from other entities’ unwanted waste.

12. Disruptors are building ecosystems
WINNING IN THE AGE OF THE CUSTOMER MEANS BUILDING ECOSYSTEMS…

13. Disruptors are building ecosystems
…AS WEALTHFRONT HAS DONE, ENABLING IT TO HIT $1B FASTER THAN SCHWAB

14. Banking will fracture
BANK BRANDS WILL FIND DIFFERENT WAYS TO ENABLE FINANCIAL WELL BEING (AND STAY RELEVANT IN PEOPLES’ LIVES)

15. Different brands will find their own paths
FORRESTER HAS IDENTIFIED AT LEAST NINE MODELS FOR BREAKTHROUGH
Personal financial coaches
Digital product manufacturers
Data brokerages
Ultra-efficient utility providers
Subscription-based advisors
Lifestyle-enhancing brands
Platforms for HNW clients
Specialists for business banking
Curators of a dynamic financial ecosystem of value

16. “We’ve been wrong about what our job is in medicine… we think our job is to ensure health and survival. But really it is larger than that. It is to enable well-being.”
- Atul Gawande

17. Banks: Get ready to reinvent yourselves
What role will you play in customers’ lives?
Keeping bank brand relevant means thinking about where you fit in each customer’s life.
How might your business model evolve?
Operating models, revenue streams, service models, & digital strategy will need to be reinvented in the age of the customer.
Where does your bank fit in a customer’s financial ecosystem?
Obsess over customers’ needs to build ecosystems of value.

18. You don’t need to see the future to win
EMPLOY INNOVATION-BY-ITERATION, NOT INNOVATION-BY-PROGNOSTICATION
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19. “The honest answer is this: The bank of the future might not be a bank at all.”
- Bank executive

20. Peter Wannemacher
@P_Wannemacher

21. Zero Trust Is The Future Of Cybersecurity
John Kindervag, Vice President and Principal Analyst

23. For 43% of these companies, cyberattacks occurred more than once.
Breaches happen…
Sensitive data was compromised or breached for 50% of firms in the past 12 months.
For 43% of these companies, cyberattacks occurred more than once.
Base: 189 director+ security decision-makers in the US in firms with more than 100 employees
Source: Forrester's Global Business Technographics Security Survey, 2016 (Note: Not showing “Don’t know”)

24. Cloud, virtualization, SDN, and BYOD are changing your network

25. 20th century networking is a mess!
Core
Distribution
Access
IPS FW
WAF
DAM
WLAN GW
WCF
NAC
DB ENC
Edge
VPN
DLP

26. Expense in depth
Source: “Forrester's Targeted-Attack Hierarchy Of Needs: Assess Your Core Capabilities” Forrester report

27. Trust but verify.

28. Which one goes to the internet?
Untrusted
Trusted

29. Zero Trust
Untrusted

30. Core concepts of Zero Trust
All resources are accessed in a secure manner regardless of location.
Access control is on a “need-to-know” basis and is strictly enforced.
Verify and never trust.
Inspect and log all traffic.
The network is designed from the inside out.

31. Zero Trust is . . .
A new model of information security that identifies the fundamental problem as a broken trust model where users and traffic inside the network are trusted, and those external to the network are untrusted.
Image source: Wikimedia Commons (

32. Zero Trust is the answer!

33. Zero Trust: scalable and segmented
WL MCAP
DB MCAP
User MCAP
CHD MCAP
APPS MCAP
WAF
MGMT server
SIM
NAV
WWW
DAN
MCAP
WWW MCAP

34. Augment hierarchal networks with Zero Trust
IPS
Server farm
WWW farm
DB farm
WAN
WAF
DAM
CHD MCAP
MGMT server
WL MCAP
User MCAP
SIM
NAV
DAN MCAP

35. Zero Trust network architecture is SDN- and fabric-friendlyVM VM VM VM
Hypervisor
Hypervisor
vSwitch
vSwitch
Open vSwitch VM VM VM
vSwitch VM
vSwitch

36. Extend Zero Trust to the cloud

37. Y Prevention is dead? Intrusion Breach Prevention Detection

38. Zero Trust Is designed to stop malware propagation and data exfil
All traffic in a Zero Trust Network is fully inspected by a segmentation gateway during each transaction
Physical segmentation gateway (PSG)
Virtual segmentation gateway (VSG)

39. Rep. Jason Chaffetz on Zero Trust:
“Zero Trust would have profoundly limited the attacker’s ability to move within OPM’s network and access such sensitive data.”
Source: Adopting a zero trust cyber model in government (

40. Summary The current network is a mess Breaches are rampant
Zero Trust is cloud- and fabric-friendly
Zero Trust is the future of cybersecurity
Untrusted

41. John Kindervag
@Kindervag

42. Blockchain: Technology Revolution Or Magical Thinking?
Martha Bennett, Principal Analyst

43. Defining “blockchain”
A blockchain is a store of records which is:
Write once, append only
Cryptographically secured
Distributed and wholly or partially replicated
There are two main types:
Permissionless – anybody can participate, no vetting
Permissioned – participants are known and validated

44. There’s no such thing as the blockchain
Source: Executive Q&A: Breaking Down Blockchain In Six Questions Forrester report

45. The promise of blockchain
Cheaper, faster, more efficient processes
Elimination of fraud – any type of fraud
Irrefutable proof of provenance and ownership
Transparent government
A legal identity for everybody
World democracy

46. Investment is proof of … what exactly?

47. Blockchain-ready?

48. Blockchain-ready? X ü

49. The “smart contract” myth
“Forget vague notions of trust – code is law on these new transactional platforms”*
“Smart contracts” are code – they do exactly what they’ve been programmed to do
Code isn’t law – the law is law
Just because it’s on blockchain doesn’t mean it’s legal
Source of by-line:
* Byline in recent TechRadar areport

50. Always bear in mind that:
For most blockchain use cases put forward today, the real issue isn’t technology, but market structure
Ultimately, blockchain is all about governance
Transparency versus privacy and confidentiality
Exception handling (erroneous transactions, fraud, technology failures)
One of the biggest challenges is the interface between the “world of atoms” and the blockchain

51. Blockchain has some growing up to do
Image source:

52. Distributed computing: We need a new approach

53. Reimagine your industry and your company
Amara’s Law: We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.

54. Martha Bennett
@martha_bennett
Blog: