Visible Banking - Key trends in Online & Mobile Banking

Christophe Langlois, Visible-Banking.comNovembre 2008

Athenes, Novembre 2008Internet & Mobile

www.Visible-Banking.com

Online Financial Services Monitoring, Trendwatching, Measuring Social Media to Drive Customer Advocacy Value Added Services to Drive Retention Online Security: a Layered Approach Online Award 2008: Winner & Nominees The 4th Generation Internet Bank 7 Killer Apps for Web 2.0 Behind The

Firewall


Listen, Watch Trends, and Measure



Wells Fargo 2.0: Create Emotions



SNS Reaal 2.0: Customize & Reach



Useful Services, the Best Retention Tools



NyKredit: Winner, Online Award 2008

1st www.Visible-Banking.com


NyKredit’s WebDesk 2.0

• Dramatic increase of the conversion rate• Leads up to 500%• Sales up to 400%

Success Measures

• WebDesk Phase 1 -> Q1 2007• WebDesk Phase 2 -> Q2 2008

WebDesk 2.0



Swedbank’s 4th Gen. Internet Bank

• 98% of clients migrated voluntarily in only 2 months• Growth speed of online sales• Positive feedback from clients and employees

Success Measures

• Customer Base• Customer offers and personalization• Customer “comfortability”• Security

4 Key Areas



Bank Hapoalim’s PFM Budget Tool

• Drive Online Banking Adoption• Attract Business from Duo Customers

2 Key Benefits

“Why not make customers pay for Online Banking?”



Can You Spot the Difference?

Educate your customers: they need to act responsibly!



IB Security Framework: a Layered Approach



7 Killer Apps for Web 2.0 “BTF” Internal Monitoring and Intervention Systems Using Web 2.0 internally to “blow up” the company Merging of Internal apps & external collaborative

environments Step-By-Step replacement of current “dinosaur”

infrastructures Standardization of all user experiences (internal &

external) connecting everybody to everybody (when allowed)

Replacing many traditional “workflow and BPM tools” with Lite rule-based/knowledge-based apps

In merger and splitting-up programs and projects



Mobile Financial Services Mobile Financial Services Landscape mBanking: Opportunities & Challenges Education to Drive Adoption Blurred Frontier between Banks & Telcos Near-Field Communications Micro Finance Innovations from Google & Mastercard


Leveraging the mobile penetration rate There are over 3 billion mobile phones in the world,

but only 1,5 billion credit cards! Gives banks access to a growing subset of customers

40% of bank customers are interested in mobile services 25% of bank customers would consider switching banks for

mobile banking servicesSource: “Mobile Banking: Weighing the Lessons Learned,” Bank Systems & Technology (July 29, 2008)

mBanking is a new segment Only 50- 60% of mBanking users are also online banking

usersSource: Absa



Mobile Financial Services

mBanking - Ideal for balance enquiries, funds transfers, expense management, bill and credit card payments, stopping payments, mobile statements and loans.

Mobile Payments - Key challenges: Money laundering issues (especially cross-border) and the complex value chain (the total revenue stream is getting smaller, as charges reduce. Currently the banks’ margin is 0.3%)



Mobey Forum Challenges faced by the banking industry

Credit-crunch (mobile cuts costs) SEPA Increased regulation New entrants (eg PayPal) Business cases for cash replacement & mobile

payments

3 business models for a service provider Collaborative, Joint-Venture and Independent

Model



Mobile Banking Worldwide Expansion



Three Main Mobile Banking Technologies



mBanking: Opportunities & Challenges The key: mobile customer experience

functionality, quality and utility Consumers want mobile services that are

intuitive, easy to use, uncluttered, secure, integrated, trusted and customizable.

Potential barriers to adoption of mBanking Ease of use, Security, Convenience and cost

And the supply chain is complex with issues around collaboration and revenue sharing



Lloyds TSB’s SMS Text Alert Service

• Greater control• Ease-of-use• Increased awareness• More confident

Key Benefits

• Previous day’s closing balance• Last six transactions• Sent weekly or daily• Secure

4 Key Features



Universal Service with Rendering Engine



Education to Drive AdoptionThe benefits of Mobile Banking are not as obvious to your customers as you think



The Frontier is blurred btw Telcos&Banks

Banks / MVNOs Telcos / Banking LicenseJoint-Ventures



Solutions for Retail & Business Customers



Near-Field Communications (NFC) Key opportunities

Payment, transit, marketing loyalty, authentication Key issues

Availability of handsets and security

NFC is a key enabling technology Source: Mobey Forum

NFC payments using a mobile are quick & convenient and could replace cards, but it is still difficult to build a business case. Develop NFC on cards first.Source: Nordea



Successful Apps for NFC



NFC - Transit

Hong Kong Transit’s Octopus card uses NFC technology and was deployed very quickly. In Japan, there are 74million NFC chips in mobile phone.



Mobile contactless payments Drivers

1. cash replacement 2. fast & convenient

Challenges Business Models Schedule for contactless Standards for mobile contactlesswww.Visible-Banking.com


MicroFinance: Mob. Banking for the Unbanked Target

3 billion people leaving under US$ 2 Dispersed / far from infrastructure Limited education, illiteracy No formal identification and financial document Require a range of financial services Cultural bias or negative perception of banking

Key challenges, Clients adoption, Interoperability,

Liquidity/conversion to/from cash, Regulatory issueswww.Visible-Banking.com


Safaricom (2006): Mobile wallet for remittances, purchases, bill pay, store value• 2,500+ agent locations, Available to anyone, No joining or monthly fees, No minimum balance, Pay-as-you-go pricing• 2.5 mil registered clients in 2 yrs, Handles USD 1.5 mil daily

MicroFinance: Examples in BRIC & Africa

Banco Bradesco: Pension payments, utilities, loans, savings, purchases all enabled• 17,360 POS-equipped merchants acting as agents of largest bank• Banks reach all 5,561 municipalities• 12 mil accounts opened ’02-’06, 1.5 bil transactions via agents in 2006• Replaced branches as #1 service pt



Google’s Open Handset Alliance Mobile is a huge opportunity, but data are

price-elastic, and the high-cost of data discourages use

Source: http://code.google.com/android/index.html (Nov 2008)


http://code.google.com/android/index.html


MasterCard’s Unique Stadium Offering


Christophe Langlois, Visible-Banking.comNovembre 2008

Athenes, Novembre 2008Internet & Mobile

Economy & Finance

Visible Banking - Key trends in Online & Mobile Banking