Over the last few months, we increasingly hear the term exponential organisations, but what does exponential really mean? Exponential refers to the way in which new technologies, also called exponential technologies, such as mobile computing, cloud computing, artificial intelligence, blockchain, internet of things, augmented or virtual reality, are contributing to the exponential growth of organisations, mainly through the generation of new business models. For those asking about the term exponential banking, the answer is yes, the term already exists, and we are seeing how banks and insurance companies are being impacted positively by exponential technologies. The rapid evolution and increase in computational power, the reduction of technology cost, the vast amount of data that we generate and the ability that we have nowadays to process all this data, are composing the perfect groundwork to build exponential banks, exponential insurance companies. We know for sure that the trend is brand new but we are already seeing a lot of opportunities in front of us. At GFT we have identified four different pillars that will help financial institutions to move towards exponential banking. The first one is what we call augmented banking and it is to enhance customer experience in digital and physical channels through the combination of different technologies. Imagine that you like a car that is on the street, you take a picture of the car and you receive contextual information about this car. Like the price, where you can buy it, whether you can afford it, simulate insurance, you name it. The second use case is: you like a house that is for sale in your neighbourhood, you again take a picture and you receive a 3D model of the house. You can review each floor plan, you can simulate the mortgage, you can apply for that mortgage. The second pillar is what we call open banking, and it is much more than just regulation, PSD2 or GDPR. It’s about embracing openness at your very core to think about new business models, new monetisation models. Here the APIs will play a strategic role in this pillar. The third pillar is what we call cognitive banking. Machine learning, deep learning, natural language processing… everything related to AI will help us to either improve operational efficiency, to generate new products and services, or to improve the customer experience. One concrete example is what we call conversational interfaces: you can have an agent servicing your customer in your online or mobile banking app, every time that your customer needs for you to be there; and this is reducing costs and you will have happy customers. Win-win situation. Last but not least, we have the automation banking pillar, which is mainly merging robotic process automation and cognitive process automation to improve the operational efficiency of the bank. Here we have one project with a major financial institution that is basically processing tones of lawsuit documents automatically, which is reducing costs and we are reducing also the error produced by manual processing. Although 2020 is just two years away, the changes within the financial services industry are taking place at a lightning speed, and it is true that by 2020, the firms operating today will fall into two different categories: the adapter-survivors and the floundering relics. What will ultimately differentiate the survivors from the relics? Well, tomorrow’s survivors know that in order to thrive in the future marketplace they must embrace exponential technologies to accelerate their digital transformation and to increase their ability to react to market changes.