An insight on digital innovation in Banking

Stephen DuryManaging DirectorSME Markets & Business Development

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•Background

My background Speed of change Quantum of change Impact of change Influence of mobile technology Converging services and markets Areas of change in banking iZettle

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38 years 13 years 4 years 3 years

It took….It took…. To reach 50m usersTo reach 50m users

Within 10 years:

2 years 2 years 1 year

Payments initiated by mobile devices will outnumber transactions initiated by plastic cards

Estimated 50 billion devices will be connected to the web

Radio Television Internet iPod iPhone Facebook Android

SPEED OF CHANGE….

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THE CHALLENGE….

… MULTI CHANNEL CUSTOMER EXPERIENCE

BRANCHBRANCH

ONLINEONLINE MOBILEMOBILETELEPHONETELEPHONE

SOCIAL MEDIASOCIAL MEDIA

FACE TO FACEFACE TO FACE

ATMATM

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THE OPPORTUNITIES…

VALUEVALUE

CONNECTIONCONNECTION

PROXIMITYPROXIMITY

RELEVANCERELEVANCE

UNDERSTANDINGUNDERSTANDING

CUSTOMER EXPERIENCECUSTOMER EXPERIENCE

SPEEDSPEED

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GROWING INFLUENCE OF MOBILE…

Source: Portio Research, “Worldwide Mobile Handset Installed Base 2012 – 2016”; Frost & Sullivan, “NFC - When Will Be the Real Start?”, Edgar, Dunn & Co 2012

• Smartphone adoption is growing rapidly and estimated to be 75% in the UK by 2016

• NFC enabled smartphones offer seamless information transfer and are estimated to reach 863 million units by 2015, an increase of ~ 300% from 2013

• Online spend growth remains strong, but exponential growth is expected through mobile devices

• Mobile is showing rapid growth for access to day to day banking. Faster growth than any channel.

ESTIMATED SPEND BY PLATFORMNFC ENABLED DEVICESUK SMARTPHONE PENETRATION

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Retail, Transport, Ticketing

Banking/ Alerts NFC/ Remote Offers Payments Mobile Wallet

Mobile OS Mobile Wallet Marketing Apps Networking Offers

Mobile Prepaid Mobile Wallet Remittances App Markets NFC/ Private Label Remote Direct Bill

Mobile Checkout NFC/ Proximity BarCode/Text Pay Offers/ Promotions Shopping Apps/

Mobile Web

FinancialServices

Mobile

Social Media and online advertising

INTEGRATED EXPERIENCE

INCREASING CONVERGENCE….

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Areas of focus…

1. DIGITAL BANKING

• Enhanced Mobile• Integrated services• Simple ID&V• Visualise• Alerts• …

1. DIGITAL BANKING

• Enhanced Mobile• Integrated services• Simple ID&V• Visualise• Alerts• …

2. MEDIA MONITORING

• Brand insight• LinkedIn• YouTube• Customer understanding• Sharing insight•…

2. MEDIA MONITORING

• Brand insight• LinkedIn• YouTube• Customer understanding• Sharing insight•…

3. PAYMENTS

• Mobile POS• Mobile Wallet• Peer to Peer• NFC• Faster payments• QR codes• …

3. PAYMENTS

• Mobile POS• Mobile Wallet• Peer to Peer• NFC• Faster payments• QR codes• …

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INNOVATION…

1. DEVICE

2. SIGN UP SPEED

3. USER EXPERIENCE

4. ONLINE SERVICE

5. NO CONTRACT

INNOVATION…

1. DEVICE

2. SIGN UP SPEED

3. USER EXPERIENCE

4. ONLINE SERVICE

5. NO CONTRACT

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Closing thought…

1. Aggregate

1. Contextualise

1. Visualise