Banking in future by sarmad 03152232702 szabist karachi

1© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BANKING IN THE FUTURE

Name :Sarmad Samad

Reg :1356112

SZABIST KARACHI

E-Banking 2015

2© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BANKING CATHEGORIES NOT CHANGING BUT…

– Retail

– Private

– Corporate

• Big corporations

• Small & Medium companies

3© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

CUSTOMER PROFILES AND RELATION REQUIREMENTS ARE CHANGING

– Consumer as a customer

– Private banking customer, but still a consumer

– Professional as a customer, but still a consumer (Prosumer)

Latest user device technology (UI) and user advantages

required/expected in all profile interactivity.

Mobility and 24x7 access to full service is/will be a must

Bank of one will be a must

Is the IT/IS of our banks ready?

4© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

QUOTE FROM “THE MCKINSEY QUARTERLY”

–The “emerging affluent” segment—young,

educated, and consumption-oriented urban

professionals—could account for up to a third of all

retail-banking revenues in the coming three to five

years: • They are tech savvy, preferring online-banking and smartphone

applications; reluctant users of branches; and price conscious and

service oriented.

(February 2012, Miklós Dietz, Ádám Homonnay, and Irene Shvakman)

5© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

TRENDS IN RETAIL BANKING

– Regulation / Compliance

• IFRS9, Basel III

– Demographic change

• “Millenials”, Social Media

– Change in consumer behavior

• Customers take over control, “ROPO” & ”ROPO + Pay Mobile“

– New entrants into Banking “market“

• Telco‘s (Vodafone), Google, PayPal and Retailer (Tesco etc)

– New technologies

• iPads, Social Media, “e-Money“, NFC

6© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

IS THE BANKING FUNCTION READY FOR THE INTERACTION?

ATM

Permanent banking function:

•Shopping

•Business

•Leisure

•Day to day live

•Secure payments

•Trust in relation

Móvil

Web

Consumer

Corporate

Smartphone

Prosumer

Other Channels

7© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

MOBILITY

8© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

CAIXAMOBIL STORE & PUNTS ESTRELLAMOBILITY & CLIENT RETENTION IN THE 21ST CENTURY

Full blown apps banking suite for

iOS, BlackBerry, Android, Nokia, W indows Mobile

Gain & spend „ Estrella Points“

with every transaction

www.youtube.com/ watch?v=XTF0YkMLS4g

9© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

“READY TO ACCESS” “CUSTOMER SERVICE” WITH AND BY TWITTER

10© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BARCLAYS’ PICCADILLY

11© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BANKING 2.0: WILL EBAY, GOOGLE AND VODAFONE BE THE NEXT LEADERS IN RETAIL BANKING ?

12© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

NEW ENTRANTS – TELCO & RETAIL

• Insurance

• Credit cards

• Loans

• Savings

• Credit card

• Payment through phone bill

13© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

WHAT ARE BANKS DOING / NEED TO DO NEXT?

–Track behaviour

–Correlate with transaction

–Understand

–Predict and influence

–Adjust risk exposure

Continuously Listen and Analyze

"Our top business challenges are optimizing

customer relationships, optimizing financial functions, Reducing

business risk and ensuring regulatory compliance.

Our prioritization is around our customer and then revenue / profits."

C Level Executive

14© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

THE ESSENCE OF SOCIAL INTELLIGENCE

Engage

Under-stand

Listen

How can Banks improve the dialogue with their customers?

15© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

CAN THE BANKS USE SOCIAL AVAILABLE DATA?

– How do we engage in social networks as trusted friend?

– How do we acquire social unstructured content?

– How do understand social media content?

– How do we correlate social media content with bank’s operational data?

16© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

A day in the life of Mary

CUSTOMERS WILL SHARE DATA FOR BENEFIT

100 BP

50 BP

250 eBP

50 BP

100 BP

500 BP

300 eBP

100 BP

17© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

SHOPPING COMMUNITY

18© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BENEFITS FOR THE BANK

– Understand customers‘ buying pattern

– Sole source for integrated banking services

– High customer retention

– Actively engage to sell new services

– Marketing and upselling through consumers‘ communities

– Strong brand recognition

19© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BIG DATA (Sandbox metaphor)

(Unstructured data) & (Structured data)

ADDITIONAL NEEDS ON TOP OF CORE BANKING DATA

Operational Systems

(Product & customer Applications)

(Structured Information)

External Web ContentExternal

Social Media(Unstructured Information)

Internal Digital Content

Internal Social Media

(Unstructured Information)

BUSINESS SERVICES

EXTERNAL INTERFACES

ENTERPRISE SYSTEMS

INFORMATION MANAGEMENT

& DATA SERVICES

CORE BANKING OPERATIONS

CORPORATE

RETAIL

RISK MANAGEMENT & COMPLIANCE

WEALTH MANAGEMENT

TRADING

TREASURY & CASH MANAGEMENT

Business Analysis by

the business

executives.

Driving Analysis

Sentiment Analysis

collected from

employee feedback in

the Internal Social

Media.

Employee Knowledge

Business Intelligence

pattern analysis for

event detection on

customer behavior.

Business opportunity

identification.

Business enhancement

One-to-One Marketing

management.

Automation on

creation of customer

business proposals.

Personalization

Client profile

enrichment for loyalty

purposes.

Brand perception and

event predictive

analysis from Social

Media

Client knowledge