Technology review 1/2013

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Technology review 1/2013

  1. 1.  Professor Janusz Filipiak – We Have to Stop Wasting Money  Brett King – Banking Visionary and His New Born  Handling a Life Insurance Underwriting Process  Personal Finance Management GAMIFICATION Are you ready to enter the game? no 1/2013 www.comarch.com Comarch Technology Review is a publication created by Comarch experts and specialists. It aims at assisting our customers and partners in obtaining in-depth information about market trends and developments, and technological possibilities of addressing the most important issues. Finance Edition
  2. 2. A comprehensive set of solutions for advisors and clients designed specifically to support banking and investment products. ASSET WEALTH MANAGEMENT assetmanagement.comarch.com
  3. 3. Finance Edition Professor Janusz Filipiak – We Have to Stop Wasting Money Brett King – Banking Visionary and His New Born Handling a Life Insurance Underwriting Process Personal Finance Management GAMIFICATION Are you ready to enter the game? no 1/2013 www.comarch.com Comarch Technology Review is a publication created by Comarch experts and specialists. It aims at assisting our customers and partners in obtaining in-depth information about market trends and developments, and the technological possibilities of addressing the most important issues. Finance Edition Sometimes it is called as a slate, maybe it’s because of its rectangular shape, rounded corners and its handy size… or maybe it’s because the tablet has become as ubiquitous in our homes and offices as roofing. The introduction of the tablet PC has revolutionized the market. The previous year has shown that the slate is more than a temporary fad fanned by bloggers and forums. Although numerous versions of the tablet have been making debuts since the 60s without success, this time it’s different. Today’s tablet is not just a gadget but a whole new way of accessing information and getting tasks done which is gradu- ally becoming indispensible in business. Today, IT companies are introducing more and more applications dedicated to mobile devices such as tablets. In this issue of Technology Review we bring you Comarch’s solutions for banks, insurance companies, entrepreneurs and salespeople. They are designed to make busi- ness and customer relations easier, fun and more secure, as you will find out from our experts’articles about mobile applications . You can run a business without mobile devices, you can built a roof without slates, but why would you want to? New, more economizing and simply better solutions are available, all you have to do is learn about them. We hope that this issue of Technology Review will be your guide. Technology Review Team Comarch TechnologyReview ISSN 1734-4212 Editor-in-Chief: Anna Lik Assistants: Antoni Sikora, Ines Dukat Layout DTP: Adam Dąbrowski Proofreader: Anna Lik Publisher: Comarch SA Al. Jana Pawła II 39a, 31-864 Kraków Tel. +48 12 64 61 000 Fax: +48 12 64 61 100 www.comarch.com Print: Skleniarz Printing House ul. J. Lea 118, 31-033 Kraków Circulation: 1 500 Technology Review is a free publication available by subscription. The articles published here can be copied and reproduced only with the knowledge and consent of the editors. The names of products and companies mentioned are trade marks and trade names of their producers. To subscribe to the electronic version or download previous issues, please visit: technologyreview.comarch.com Comarch’s offices in Poland: Krakow (HQ), Bielsko-Biala, Gdansk, Gliwice, Katowice, Lodz, Lublin, Poznan, Warsaw, Wroclaw Worldwide Offices: Austria | Vienna Belgium | Brussels France | Paris Germany | Berlin Luxembourg | Strassen Russia | Moscow Switzerland | Luzern Ukraine | Kiev UK | London Comarch Technology Review is a publication created by Comarch experts and specialists. It is created to assist our customers and partners in obtaining in-depth information about market trends and developments, and the technological possibilities of addressing the most important issues. PREFACE 3
  4. 4. 34. Foursquare – Let’s Play Geolocation Foursquare in its ideal version, such as the one in several cities in the US, is packed with useful information – reliable and varied. A checked-in user can submit a picture or post a comment-opinion. Thanks to Four- square, other users know, which restaurant serves bad salads, which has poor customer service, and which has no air-conditioning. Antoni Sikora 36. Interactive Customer Approach Interactive interfaces offer a new way of interaction with information and messages, encouraged by their innovative form. They trigger curiosity as well as desire to identify with the information and take part in it. Agnieszka Molęda 38. New Trends in Factoring Software Recent years have introduced many changes in the factoring industry − the way clients are served has changed as well as the approach to risk management. Business pro- cesses are constantly modified in response to the growing need for optimizing the fac- toring business. Finally, the invoice factoring software has changed and the way vendors run factoring software projects these days. Krystian Suchodolski 41. Gamification in Business – Brand New Motivation? Effectiveness of incentive programs, project management as well as call-centre and sales force activities can be enhanced by incorpo- rating mechanisms used in computer and video games. People have always exhibited the need for competition and cooperation: sooner or later a leader emerges within any group, while other members focus on devel- oping their skills and gaining new attributes. That is why the human brain reacts posi- tively to game-based tasks. Agnieszka Molęda 20. Comarch Smart Finance – Re-think Your Banking These days customers make product choices in a very smart way - they prefer instantly available quality products of high performance at reasonable price. Anna Płowiec-Wandas 23. Comarch eForms – Quick Friendly The Comarch eForms system is designed for building forms, web applications and enterprise portals. With its intuitive user interface and numerous available features it fully automates the processes of registra- tion, complaints, logistics and others that require interaction between a customer and a company. Tomasz Korczakowski 25. A Modern Mobile Approach to Investment Account Management Brokerage houses introduce mobile access to accounts not only for the active investors but also for those who place orders occa- sionally. Milan Popovic 27. Comarch for Delta Lloyd Life – Business Case Comarch announced that Delta Lloyd Life, a Belgian pension insurance expert and active player in the corporate and retail life insurance market, chose Comarch solutions to support the company in refining the medical acceptance process. Wojciech Pawlus 28. Comarch Personal Finance Management – Get Closer to Your Customers The Comarch Personal Finance Manage- ment innovation lies in simplicity. The cus- tomers can relax and relies on the system, which automatically reminds them about deadlines, payments and other important dates. Comarch Personal Finance Manage- ment is not only a tool to make saving and managing money more effective – it is a customer guide while planning the bud- get, which takes the initiative and requires minimum effort. Anna Płowiec-Wandas 30. Handling a Life Insurance Underwriting Process Comarch Underwriting is a solution that comprehensively supports all stages of the underwriting process – starting with a submission of the insurance application, through management of questionnaires and medical records, ending with decision- making and acceptance. The system sup- ports the underwriter in all kinds of deci- sions, e.g. on granting standard insurance conditions, adding loadings, or rejecting an application. Natalia Maszota In Focus TABLE OF CONTENTS4 Trends StrategiesSolutions Case Studies 8. Gamification − the New Black The introduction of internet and online games allowed millions of gamers to com- pete and fight for top ranking spots. The points and rankings became the way to increase their social value and gain admira- tion. Maintaining good scores and watching statuses became an everyday activity. Now, when Generation Y – people in their late 20s and early 30s took over the steering wheel in business, they still need this easy and quick comparison method – they need a game. Marcin Kwilosz 11. Brett King – Banking Visionary and His New Born For those who observe banking trends with scrutiny, Brett King’s name definitely rings a bell. However, if you do not recognize him, let me introduce you to Brett King – a per- son who first came up with the idea of Bank 2.0, the author of the book with the same tittle and the advisor of the largest US and worldwide financial institutions. Antoni Sikora 14. Mobile Bank 2.0 The smartphone becomes a personal assis- tant, whose role is to help in daily activities. Until recently, the customer contact with the bank was limited to visiting branches or log- ging in to the bank website. Smartphones have changed that model, allowing the bank to implicitly take part in the customer everyday activities. The banking applica- tion may itself initiate contact with the user, depending on the defined conditions, such as a change in the account balance, trans- actions performed via other channels (e.g., credit card), or a change of the user location. Łukasz Luzar 17. Professor Janusz Filipiak – We Have to Stop Wasting Money Innovative research is funded by govern- ment agencies. A colossal part of the money allocated is wasted. Despite of spending billions on research and development, the EU institutions do not have any devices or technological solutions to boast about. Simi- larly, in Poland, Polish Agency for Enterprise Development and other government agen- cies give away hundreds of millions of Polish zloty with no effect. Forbes 11/2012 (Polish edition)
  5. 5. Comarch will deploy internet and mobile applications for tablets and smartphones, which combine functionalities of online banking and personal finance in one powerful solution. The project for UniCredit Group is going to be the largest deployment of Comarch Smart Finance, a solution helping bank customers to save and invest money while keeping their focus on personal financial goals. Comarch Smart Finance analyzes customer financial behav- iors and predicts their monthly cash flow. Owing to such data, personal preferences can be recognized and the bank offer customized individually. Without unwelcome sales pitches, the customers can receive highly personalized product offers. The deployment of Comarch Smart Finance at UniCredit is a significant project because of the innovation it introduces. Nowadays, multichannel access and personal finance management are usually standard features of the online banking. Comarch Smart Finance goes further and reshapes online banking by providing the bank with the possibility to precisely address the needs of customers with relevant offers, explains Sławomir Gierek, Business Unit Director at Comarch. ING Bank Slaski launched a mobile banking application for corporate customers – ING BusinessMobile for iOS and Android platforms is based on the Comarch Mobile Banking solution. The system is designed primarily for corporate customers as it offers convenient and quick transaction authorization. In addition to the four-eye principle, it allows to create secure transactions on the basis of pre-defined and templates orders. Owing to integration with the ING BusinessOnLine internet banking system, a full synergy effect between solutions was achieved, ensuring comfort for the customers using both applications. Thanks to this solution, ING Bank Slaski customers are provided with the highest quality mobile access to banking products. The application shall be appreciated by corporate financial execu- tives as well as employees and owners of SME – signing salary packages or sending transfers to contractors can now be done instantly without opening a laptop, says MaciejWilczek, Business Solution Manager at Comarch. Ourbankwasfirstonthemarkettooffersucha solutiontocorporateclients.Itisa veryimportant partoftheINGBankSlaskimobileoffer,which,thankstocooperationwithComarch,alreadycov- ers all customer segments: retail, SME and corporate banking,comments AdamWalendziewski, Electronic Banking Product Department Manager at ING Bank Slaski. The solution ensures a very high level of security, owing to an integrated MobileID token that supportsthesystemduringinitialization,loginandtransactionsigning.Accesstovariousbanking products and functions are guarded by an access right module adapted to the mobile channel. Theapplicationisdesignedtoensuremaximumsafetyatmaximumcomfort.Forexample,thanks toQRcodesgeneratedbyComarchMobileID,whichguaranteessecurityoftheentiremobilesolu- tion, a simple screen scan allows to cryptographically link a specific device with the bank, says Tomasz Sniezynski, IT Security Consulting Director at Comarch. Alior Bank implemented the Comarch solution providing access to new channels of mobile banking for smartphones and tablets users it is a completely new qual- ity of customer communication with the bank that takes advantage of all capabilities of modern mobile devices. Comarch Smart Finance is an innovative mobile banking solution, which keeps up with the latest trends in banking 2.0 and multichannel banking. Smartphones are no longer just a mobile channel to access the bank account they begin to play the role of a per- sonal financial assistant. The key to success is an intuitive and user-friendly interface that encourages interaction with the bank, and the ability to easily expand the functionality with the use of typical smartphone features such as user location and instant messages, says Lukasz Luzar, mobile banking expert at Comarch, supporting the implementation of Comarch Smart Finance in Alior Bank. Not so long ago, mobile banking was associated with non-intuitive applications difficult to install and used only in necessity. Smartphones and tablets re-defined the customer- bank interaction with new features that PCs cannot provide. Together with Comarch, we have created a mobile financial management system thinking about our customer com- fort. The application offers friendly graphics, an intuitive interface and broad function- ality, which will be developed further in the near future. Access to all operations is much easier, no matter if the customer uses a tablet or a smartphone, says Krzysztof Suchan, project manager at Alior Bank. Comarch Internet Mobile Applications in UniCredit Italy Comarch New Mobile Solution at ING Bank Slaski Comarch and Alior Bank Present a New Quality of Mobile Banking! NEWS 5 Comarch is once again featured in a report by Gartner – the world leading information technology research and advisory company. Comarch was classified among 13 major insurance sales compensation incentive tool vendors worldwide. The MarketScope for Insurance Incentive Compensation Management report published on December 20th 2012 includes a description of the Comarch Commission Incentive solution. The increasing demand for sales result information is a growing challenge for today sales net- works. Both sales managers and intermediaries are interested in fast up-to-date efficiency data. Comarch Commission Incentive provides an information portal for sales staff, managers and intermediaries. It is based on the calculation engine supported by an easy to use algorithm con- figuration tool for commission, points goals calculations. Algorithms can be created and modi- fied by users that can use numerous mathematical, logical and business functions available in the solution. Moreover, the solution can also be used for calculation of compensation reserves accruals and provides sub-ledger for financial settlements with sales networks, explains Maciej Slosarczyk, Consulting Director at Comarch. Comarch Commission Incentive Featured by Gartner
  6. 6. News6 NEWS Comarch announced that Delta Lloyd Life, a Belgian pension insurance expert and active player in the corporate and retail life insurance market chose the Comarch Underwriting and Comarch Insurance Claims solutions to support the company in refining the medical acceptance process. Delta Lloyd Life decided to cooperate with Comarch mostly because of the process-orienta- tion of the solutions and their ability to offer a global view of the customer. Cooperation with Comarch will allow us to optimize the underwriting process, which will result in more effective and accurate underwriting decision making. The main goal of the project is to improve the customer outcomes, service and overall satisfaction levels throughout all lines of business – pension, group and retail insurance, says Anne Romagnoli, Chief IT Officer at Delta Lloyd Life. The cutting-edge technology based on SOA principles applied in Comarch Underwriting and Comarch Insurance Claims enables the solution to fit into the existing IT environment at Delta Lloyd Life as the best-of-breed component in the medical acceptance area, underlines Anne Romagnoli, Chief IT Officer at Delta Lloyd Life. We are confident that our market-proven solutions will allow Delta Lloyd Life to meet its business objectives. It is a common goal for both sides as we see ourselves as long term partners for our customers.TheprojectwithDeltaLloydLifeisanimportantsteptostrengthenComarch’sposition in Benelux – the region that lies in our strategic interests’, adds Wojciech Pawlus, Sales Director for Benelux Region, Comarch. TheComarchapplicationoffersnotonlyrichfunctionalityintermsofunderwritingandclaimspro- cesses.Oursolutionsarebasedona commontechnologyframeworkwhichincorporatestheComarch BusinessProcessManagementtool.TheBPMcomponentallowsforflexibleconfigurationofthepro- cesstobestreflectthecustomeroperations.Moreover,ComarchBPMenablesmanagerstomonitor the user work and their efficiency as well as providing the MI reporting, which allows for spotting bottlenecks and process optimization, explains Ewa Jasiecka, Managing Director, Comarch UK. Comarch for Delta Lloyd Life The video footage about Comarch Smart Finance was recorded for one of the most important conferences in the UK banking – BBA Annual Meeting.The event orga- nizer – British Bankers’Association brings together the largest banks in the UK. This year’s event, which took place on October 17th in London, welcomed decision makers of major European banks. The recording entitled Comarch Smart Finance – Finance for the Future presents an innova- tive electronic banking solution dedicated to laptop, tablet and smartphone users.The solu- tion facilitates the household budget management, presenting forecasts of revenues and expenses, as well as acting as an investment advisor. ‘Comarch Smart Finance is a new product, but it already attracts the interest of our cli- ents. It does not offer the accounting approach – it presents data in a user-friendly way with no use of complicated financial terms, says Anna Plowiec-Wandas, Business Solution Manager at Comarch. ‘Our solution represents nothing more than the next step in bank- ing evolution. Banks that implement our solution are able to offer their customers lots of new and attractive features, including personal finance management. The system calcu- lates the amount of money the user has in fact, shows whether they have enough money until the next payday, presents and forecasts expenses, and suggest ways of saving and investments. Comarch Smart Finance acts as a financial advisor – on the basis of forecasts it shows the user how to manage their money. In other words, the user is provided with a personal advisor that helps optimize spending and increase savings. Customers of any financial institution expect simplicity and intuitiveness of the banking application. They want friendly services and products they can understand. They want access to be easy and intuitive. We provide everything in one comprehensive solution – Comarch Smart Finance. We have created a mobile financial management system designed for user comfort. Our solution offers a friendly graphics, intuitive interface and broad functionality. Access to all operations is easy no matter if the bank customer uses a laptop, tablet or smartphone’, underlines Anna Plowiec-Wandas. Comarch Smart Finance − Finance for the Future is available on ourYouTube channel: Comarch- Finance. Comarch Smart Finance Video for British Bankers’Association Comarch is teaming up with SIX Financial Information to provide clients with comprehensive and high quality reference and market data. SIX Financial Information, a premium provider of global financial information, is partnering with Comarch, a leading Central Eastern European (CEE) vendor of IT solutions to investment companies.This new partnership enables clients in the CEE region to benefit from best-in-class data usage models.The resulting comprehensive coverage ensures the financial information needs of all stakeholders are met efficiently and with ease of use supporting investment pro- cesses, fund administration, as well as investment advisory and reporting. Comarch supports dozens of investment companies, which find access to market data critical for continuity of operations, risk management and reporting obligations. Addi- tionally, depending on the business area, customers need both real-time data and static information available at the end of the day. These data relate to different asset classes and include numerous types of information and markets. SIX Financial Information meets abovementioned requirements by providing data in a normalized stream, underlines Grze- gorz Prosowicz, Business Development Manager at Comarch responsible for Capital Markets. We are keen to further develop this strategic relationship with Comarch – a company with vast experience in the CEE region. With our initiative in Germany, Austria, Poland and the growing CEE financial markets, we can provide client-oriented service by combining a local presence with global reach. This cooperation enables us to strengthen and expand our market share in this region and reach a growing number of clients, says Michael Frank, Managing Director of SIX Financial Information Deutschland. SIX Financial Information is a leading global provider of data services and solutions for finan- cial and insurance firms, corporations and the media. Aggregated in real-time from over 1,500 worldwide sources, SIX’s financial information is comprised of corporate actions, pricing, ref- erence and market data for over 11 million instruments and is unique in terms of information depth, breadth and structure. With offices in 23 countries, SIX combines the advantages of local expertise with global reach to offer comprehensive data services for investment advi- sory, portfolio management, financial analysis and securities administration professionals. Financial Information is one of four business areas of SIX which offers global premium services in securities trading, clearing and settlement, payment transactions, and finan- cial information. Comarch and SIX Financial Information Announce Cooperation
  7. 7. NEWS 7 Comarch is featured in the Celent report: Client ReportingTools Update 2012: An Overview of the European Market among 13 major client reporting tool vendors in Europe. The solution described in the Celent report is Comarch Client Reporting Communication. The tool allows for generating reports of the highest complexity, including the value, profit- ability and risk of client pension-investment products based on investment funds, equities and other financial instruments. It combines the following processes: managing a large database, report distribution and publication according to the policy of a given financial institution. The solution covers: »» generating reports: predefined or constructed by the user, based on components linked with the analyses of the investment portfolio presenting its effectiveness and risks, as well as the structure and dynamic with regards to chosen benchmarks with additional comments and explanations made by analysts and managers »» various methods of report distribution: including via web-portal available to clients and mobile devices »» a database dedicated to reporting on the investment portfolio, supported by the best practices as well as business intelligence solutions »» integration of market, transactional and portfolio data as well as operations carried out on investment fund registers. Comarch solutions were already mentioned in earlier Celent reports: Comarch Nonlife Insur- ance was presented in the Policy Administration The System for General Insurers in Europe 2011 report, Comarch Life Insurance was featured in the EMEA Policy Administration The System 2011: Life and Pension ABCD Vendor View report, and Comarch Insurance Claims in Claims Systems Vendors: European General Insurance 2012. ING Bank Slaski has expanded its INGWeb Service with the possibility of sending transfers.The service is an implementation of the Comarch Host to Host Banking solu- tion, which provides the bank clients with much faster and more efficient information exchange between their ERP /financial-accounting systems and the bank systems. Comarch Host to Host Banking allows to download bank statements several times a day and enter them automatically into the ERP system.That speeds up communication between the bank and the client.The solution significantly simplifies the process of sending orders by the ING Bank clients. Payment orders are signed in the ERP system (single authorization point) and transferred directly from the ERP system to the main banking system without any inter- mediary. Such a solution improves security, speed and comfort of the transaction execution. The solution is based on the following standards: »» ISO20022 - a common platform for messaging system in the standard XML syntax devel- oped by International Organization for Standardization (ISO) for the financial sector »» Recommendation of Polish Banks Association of March 29th 2011 on adoption of the standard financial data exchange between the client and the bank, and the bank and the client on the Polish market »» Comarch recommendations in areas not defined in the above regulations. OneofthemainbenefitsofusingtheINGWebServiceistimesaving.Thetransmissionoffinancial data is performed quicker as the processing is simplified through constant access to documents and online data exchange. It can significantly increase the efficiency of accounting processes in the companies of our customers, says Adam Walendziewski, responsible for electronic bank- ing services for corporate clients at ING Bank Slaski. It is worth mentioning that the use of the Comarch Host to Host Banking solution by the bank clients does not entail any significant cost increase. The client employees continue working in their ERP system and they use it to communicate with the bank. In 2012 Erste Bank Ukraine launched internet-banking for retail customers developed by Comarch. Erste Bank Ukraine is the first bank in Ukraine implementing the system of the leading Polish vendor. The Erste Bank Ukraine internet-banking operates in the real time mode, which is the most important feature of the system. Transactions within the bank are processed on the 24/7 basis, therefore money can be used at once both within ErsteWeb as well as for card pay- ments. Transaction to other bank can be created anytime but the funds are transferred and available only within the bank operational hours. Moreover, Comarch internet-banking provides for communicational function through the secure channel.Within the first release the internal mailbox system was implemented enabling customers to immediately contact with the bank’s Infocentre employees, as well as messages and sms system. Within the next release a range of other operations and additional options will appear and the communicative options will be enhanced. While choosing the internet-banking system, we studied the best European practices and were looking for a vendor that offered a comfortable user-friendly solution adaptable to Ukrainian market demands. Comarch system provides an opportunity to implement Erste Group’s best experience, is well-integrated with the bank’s IT-infrastructure and contains a set of necessary functions for creating new products that fully meet our customers requirements. Another impor- tant reason to choose Comarch was the fact that the company had their office in Ukraine, com- ments Andriy Begunov, Director of Process Organization and IT Implementation Division at Erste Bank Ukraine. The internet-banking implementation for Erste Bank Ukraine is the second project of that kind for Comarch abroad and the first one in Ukraine. The project was a success mainly due to similarity of Ukrainian and Polish markets and, as a result, minimal culture differences. Strong support from the bank was another success factor for us. We worked as one team with common goals in this project. The bank was open to our ideas, and did everything necessary to implement the project in time. What is remarkable, all project processes and tools in Erste Bank Ukraine are set in accordance to Western European banks. The IT-solutions are efficiently implemented in companies with such corporate culture, says Damian Grela, Project Coordinator at Comarch. Comarch Reporting Tools Featured in Celent Report Comarch Host to Host Banking for ING Bank Slaski Erste Bank Ukraine Implemented Comarch Internet Banking
  8. 8. News8 NEWS The introduction of internet and online games allowed millions of gamers to compete and fight for top ranking spots. The points and rankings became the way to increase their social value and gain admiration. Maintain- ing good scores and watching statuses became an everyday activity. Now, when Generation Y – people in their late 20s and early 30s took over the steering wheel in business, they still need this easy and quick comparison method – they need a game. Gamification − the New Black 8 In Focus
  9. 9. NEWS 9 The basic idea of points and statuses has been used in loyalty programs for years WE may not notice that, but we are surrounded by games − not only our children play games − more and more adults play games in their free time. However, more interesting is the fact that games began to enter our everyday life. The range of games in our lives is very broad. Our cars challenge us with eco-fuel indicators to drive more effi- ciently − the reward is saving money on fuel. We use check-ins via Foursquare or Facebook to gain some statuses. Stockholm introduced a speed lottery − instead of ticketing speeding drivers, the camera takes pictures of drivers who drive under the speed limit. The law-abiding drivers participate in a lottery and win prizes. Some companies use games to evaluate poten- tial employees. US Military uses a video game called America’s Army as a key recruiting tool. Scared? It is just the beginning… Games become more and more popular and trendy so their influence on our lives gradually increases. As Brian Burke says in his Gartner report: Gamification Primer: Life Becomes a Game: ‘Gamification is an emerging business and societal trend with an extraordinarily broad reach across innovation, marketing, train- ing, employee performance, health and social change. Although its impact remains uncertain, gamification’s potential to change human behavior makes it a trend to watch’ (Brian Burke, Gamifi- cation Primer: Life Becomes a Game, Gartner.com, 2011). Other Gartner report: Innovation Insight: Gamification Adds Fun and Innovation to Inspire Engagement predicts‘60% of midsize- to-large organizations deploying at least one gamified applica- tion by 2021’. What is Gamification? Wikipedia explains that‘Gamification is the use of game design techniques, game thinking and game mechanics to enhance non-game contexts. Typically gamification applies to non-game applications and processes in order to encourage people to adopt them or to influence how they are used. Gamification works by making technology more involving, by encouraging users to engage in desired behaviors, by showing a path to mastery and autonomy, by helping to solve problems and not being a dis- traction, and by taking advantage of a human psychological aptitude for game engagement. The technique can encourage people to perform tasks that they consider boring, such as com- pleting surveys, shopping, filling in tax forms, or reading web sites.’ Being The Best Why is it so popular? Let’s have a look at gamification from two perspectives. First is the endless pursuit for approval. People as social beings always want to show their value and they search for approval of others.The praise can be gained thanks to success, achieve- ment or knowledge.We can easily see that on social networks – most of photos published there are taken on holidays in exotic places. People want to show their value and achievements. Second is Generation Y and their adventures with computer games. These people have been playing games since child- hood. The introduction of internet and online games allowed millions of gamers to compete and fight for top ranking spots. The points and rankings became the way to increase their social value and gain admiration. Maintaining good scores and watch- 9in Focus
  10. 10. ing statuses became an everyday activity. Now, when Gener- ation Y − people in their late 20s and early 30s took over the steering wheel in business, they still need this easy and quick comparison method – they need a game. Taking Loyalty Management to Next Level The concept of a game mechanism in business is not new. The basic idea of points and statuses has been used in loyalty programs for years. Most of us heard about or participated in a Miles and More program or keep a fuel card in a wallet. Loy- alty programs are usually based on a simple formula − no par- ticipation, no prizes. The gamification is more about thrill and engagement − we play, we gain badges, statuses, points, and people see how good we are. Both gamification and loyalty programs reward participants for their activity. However, the way for loyalty rewards can be long and winding − what we get back is usually a drop in the ocean comparing to our expenses, whereas gamification brings almost instant rewards. The key advantages of a gamification-based service process according to Gartner are: »» acceleration of feedback − in a real world, feedback is rather slow e.g. annual performance assessment – gamification increases the feedback frequency and maintains engage- ment »» clear goals and rules - in a real world goals are often blurred and rules might be applied selectively – gamification pro- vides clear goals and well-defined rules to make players feel empowered and motivated »» compelling narrative – in a real world activities are rarely attractive – gamification builds a narrative that engages players to achieve goals »» challenging but achievable tasks – in a real world challenges are everywhere, however they are usually long-term and complex – gamification provides many short-term and achievable goals to maintain engagement »» credits – in a real world statuses and achievements are not well visible, so they are often downplayed – gamification provides explicit statuses to acknowledge achievements and increase recognition. Game Flow One of the key aspects of gamification is a game flow, i.e. the right game level for the right player. The game flow should ensure that the game is equally interesting and awarding for both a person who has just entered a game and for an experi- enced player. That should be achieved by well-defined game mechanisms including points, badges and challenges set for gaining each status. Players be able to compare themselves to other competitors at the same level. Since most of players are engaged in social networks the game should inspire the efficient team work. Time for World of Finance Gamification works for numerous activities, so why not to chal- lenge employees of banks and other financial institutions in order to change the way of their behavior and increase their level of productivity? Comarch introduced the gamification ad-on to the CAFE Plat- form. Comarch Front End (CAFE) is a multichannel platform for servicing customers according to the CRM strategy. The CAFE Platform includes the following modules: CRM, Contact Cen- ter, Customer Service (products and transactions), Campaign Management and Analytics, which are responsible for a whole customer lifecycle service process. The gamification ad-on includes functionality that allows for the successful gamification launch.There are three types of rewards: badges, status points and activity points. Each employee can access a ‘My Achievements’ page, where they can see their results, check out the task progress and learn about requirements of new challenges. They can also easily compare results with others, thanks to the online rankings and progress notifications. All types of employees are involved in the game: »» advisors compete within the team, branch, city and region »» contact center agents compete within the team and with employees of the same skills or performing the same tasks (sales, help desk etc.) »» supervisors compete with each other based on their team results »» managers compete with each other based on their branch results. Points are awarded for numerous types of activities: »» selling products »» cross selling/up-selling opportunities »» co-operation points (leads generated by call center, sales in branch) »» number of actions (tasks, contacts, applications) »» customer acquisition »» quality of service (based on surveys) »» work experience in years »» participation in e-learning trainings »» adding content to the wiki. Some extra points can be awarded for completing challenges. There are daily, weekly and monthly challenges available in the application. Thanks to the rule engine, the bank or a financial institution can change game priorities and rules to make them more consistent with their strategy, e.g. more points for selling promoted products. It is worth underlying that Comarch provides not only the tool, but can also provide the whole game concept. Various studies show that gamification gives exceptional results in many areas of our activity and it is one of the cheapest ways of challenging the productivity. Additionally, it gives a com- petitive advantage in the battle for the employee satisfaction and loyalty. Gamification simply makes our work more attrac- tive, interesting and engaging, so why not to implement it? Marcin Kwilosz E-mail: Marcin.Kwilosz@comarch.com Position: Senior Solution Manager Comarch SA 10 In Focus
  11. 11. For those who observe banking trends with scru- tiny, Brett King’s name definitely rings a bell. How- ever, if you do not recognize him, let me intro- duce you to Brett King – a person who first came up with the idea of Bank 2.0, the author of the book of the same tittle and the advisor of the largest US and worldwide financial institutions. Brett King – Banking Visionary and His New Born 11in Focus
  12. 12. KING’S book was first published in 2010 and it reverberated throughout the banking world. The reviewers shouted: Audacious, provocative and sometimes controversial, Brett King redefines the paradigm of consumer banking. The author claimed that the internet banking era forced banks to adapt to a new situation and a complete change in the perception of customers and their behavior. People older than generation X associate the word bank(ing) mostly with an institution. Whereas, for a younger generation, it is not a place but an activity that they perform in order to pay for a service or a prod- uct. Sounds reasonably… thinking about connecting with friends and relatives, we no longer think about a phone booth or a post office, but about a cellphone or internet. I remember religious education at my primary school. The priest used to teach us that the Church is not the building but the Community. Banking today is no longer a building either – it is a community that plays more important role than ever before; hence the bank is able to collect a huge number of information that constitutes, if processed cor- rectly, a valuable source of knowledge about the customer. The community that interests King the most is the internet community with emphasis on the strongest social media player – Facebook. Banks are still a bit unsure of Facebook, whereas market- ing specialists have already learnt how to preach on the importance of social media during executives meetings, and they keep repeating: every company needs a Facebook profile’ or ‘if you are not on Facebook, you do not exist. As a consequence, every bank decides to set its flag on the Facebook no man’s land, claiming proudly that social media are an important part of their marketing strategy. We could discuss for ages the way banks cope with social media, and wonder whether a marketing manager should be fired if the company does not have a Facebook profile, but it is a completely different story. Going back to Brett King and his Bank 2.0 – King’s approach to social media is much more complex. He sees big advertising potential in social media, but this is not the only advantage – he considers Facebook to be a huge knowledge base that can be very useful for banking. By linking a Facebook account to a bank account, the bank receives information about social activ- ity of the customer. King claims that thanks to this knowl- edge, the bank can assess and verify the customer much more effectively than with the use of traditional methods like the mother’s maiden name or the ID number. Tracking the customer social activity may also enrich the knowledge of their financial situation. In materials that I had access to, King does not spend much time evaluating this subject, but I personally see big potential in a use of apps like e.g. Four- square (it can also be linked to a Facebook profile) – you can read more on that in my article on page 36). However, KYC (Know Your Customer) is not enough. King claims that customers with the most complex social networks will be awarded by their banks with special benefits as potential trend-setters as they can help the bank attract new clients by their posts and comments. What else distinguishes Brett King’s approach to function- ality offered by internet banks today? King underlines that nowadays, those who perceive banking as an activity not as an institution do not find very important the fact whether the bank owns a banking license or not. If the service pro- vider allows the customer to make immediate and secure transactions, then no one cares if the bank has headquar- ters with marble stairs and 50 offices around the city. Who needs a branch if there is no need to visit it since all can be done on the phone? Everything on the phone – this customer wish still remains unfulfilled, however King thinks that we are much closer to make it happen than anyone expects. In 2015 most ATMs in US should be equipped with NFC (Near Field Communi- cation). This technology is already available in new smart- phones like Samsung Galaxy S III, Blackberry Bold 9900 or Nokia Lumia 820. In Poland some mobile phone providers (e.g.T-Mobile) offer mobile payments via NFC to their cus- tomers. A smartphone (a banking card, or a sticker provided by the bank) with the NFC technology allows to make con- tactless payments. Transactions are made by placing the phone close to the card reader in a shop or to ATM. Mobility allows us to use services wherever we are – not only in places where services used to be offered traditionally. We ‘carry’ all services with ourselves, we decide when and where we want to use them. We are a bit like those console action heroes, who go around with all equipment on their arms and decide with one click to change a weapon from bazooka to a shotgun or a knife. In a real world, instead of I remember religious education at my primary school. The priest used to teach us that the Church is not the building but the Community. Banking today is no longer a building either – it is a community that plays more important role than ever before; hence the bank is able to collect a huge number of information that constitutes, if processed correctly, a valuable source of knowledge about the customer. As a consequence, every bank decides to set its flag on the Facebook no man’s land, claiming proudly that social media are an important part of their marketing strategy. 12 In Focus
  13. 13. juggling weapons we juggle mobile apps, and we choose the one we need in a given moment. How to get to that place? – I use my smartphone navigation app. I do not have a valid ticket for the city transport – I get my ticket online within seconds with the use of a QR code. I want to have things under control and know how much money I have spent on fuel this month, or learn when I spent the most on tiny pleasures – I use ifin24 app (Comarch Personal Finance Management). An increasing number of smartphones and cheap or even free mobile apps in App Store and Google Play allow us to perform different activities much easier and quicker. Brett Kings has high expectations of mobile devices. The visionary is so sure about the power of smartphones that he does not only advise his clients on investing in mobile tech- nology, but also launches his own financial activity called Movenbank. Brett King estimates that 30 000 customers is enough to bring him profits under condition that each customer performs one transaction daily. Movenbank as an institution based solely on mobility (no payment or bank cards) requires ATMs with NFC. In US such cash-machines are already available in New York, Austin and San Francisco. It is estimated that by the end of 2014, 50% of US retailers will be equipped with NFC readers. What will be the situation in Europe? Which banks will manage to adapt to changes, and which will be left behind? Time will tell. In one of his interviews King says with irony that paper money will never disappear because of alcohol, prostitution and gambling. However, if there are only these three reasons left to use paper money, then banks can invest hard in mobile tech- nologies and move on with the mobile expansion on the market to win aware and demanding customers. Antoni Sikora E-mail: Antoni.Sikora@comarch.com Position: Marketing Manager Comarch SA In one of his interviews King says with irony that paper money will never disappear because of alcohol, prostitution and gambling. We are a bit like those console action heroes who go around with all equipment on their arms and decide with one click to change a weapon from bazooka to a shotgun or a knife. In a real world, instead of juggling weapons we juggle mobile apps, and we choose the one we need in a given moment. 13in Focus
  14. 14. Mobile Bank 2.0 The smartphone becomes a personal assistant, whose role is to help in daily activities. Until recently, the customer contact with the bank was limited to visiting branches or logging in to the bank website. Smartphones have changed that model, allowing the bank to implicitly take part in the customer everyday activities. The banking application may itself initiate contact with the user, depending on the defined conditions, such as a change in the account balance, transactions performed via other channels (e.g., credit card), or a change of the user location. 14 In Focus
  15. 15. UNTIL recently, it seemed that the smartphone would only serve as an expensive mo- bile e-mail reader and gadget, attractive mainly for teenag- ers. It turns out, however, that the device well serves more serious purposes. For more and more people the smartphone became an indispensable device at home, at work or on the go. Why cannot we do without a smartphone? Maybe because the smartphone has started to act as our personal assistant. The Essentials – Remote Access to a Banking Account Speaking about mobile banking, we mostly think of remote access to the banking account via mobile phone. Smart- phones do not offer new technologies in this area, but thanks to the great possibilities of graphical presentation and inter- action, they provide unmatched comfort. Navigating the banking system using a smartphone is simply enjoy- able. Another important advantage is the speed of the smartphone itself, and increasingly better data transfer speed. Not so long ago, retriev- ing data from the banking system through a phone took a long time. Moreover, it was expensive and annoying. Currently, the login process takes only a few sec- onds. High usability applications designed specifically for smartphones take advantage of opportunities offered both by the touch screen and keyboard. This means that even the cumbersome login pro- cess becomes bearable. The latest mobile banking solutions offer alternative methods of authentication, such as a gesture login (so-called pattern-lock). Logging in using this method does not require remembering the PIN or password. It only takes swiping a finger across the screen and linking the dots in a previously defined way. A pattern created by the move- ment of the finger is a safe and relatively easy to remember authentication method. Personal Assistant in Your Pocket The smartphone becomes a personal assistant, whose role is to help in daily activities. Until recently, the customer contact with the bank was limited to visiting branches or logging in to the bank website. Smartphones have changed that model, allowing the bank to implicitly take part in the cus- tomer everyday activities. The bank- ing application may itself initiate con- tact with the user, depending on the defined conditions, such as a change in the account balance, transactions performed via other channels (e.g. credit card), or a change of the user location. Opportunities offered by smartfones are wide – we can imagine a scenario, when the bank after noticing a customer credit card payment at the gas station, is able to send a notification that a local station offers bet- ter prices and a discount program. In the near future, we can imagine other services offered by the bank such as instant legal advisory, medical advice or plumber service – all within the reach of the thumb. Personal Finance Management In the area of ​​personal finance management, the smartphone can effectively support planning of household expenses and act as a personal financial advisor to help the user make deci- sions related to balancing the family budget. Modern banking systems allow for automatic categorization of expenses and provide reports and analyses of monthly expenses. Access to this information via smartphone provides numerous benefits: users can check the current account balance before making expenses, they do not have to wait to manually enter cash expenses on their PC. The systematic input of transaction data is crucial in the management of household expenses – other- wise, after some time, the user can come across budget holes, the source of which is no longer clear or possible to remem- ber. A pocket financial advisor in the form of a smartphone allows users to define limits for all categories of expenses, which helps to maintain financial discipline in the household budget. The smartphone also supports verification of the available resources and control of the long-term plans, thus giving the bank a unique opportunity to offer the customer personalized financial products or additional recommenda- tions on improving their financial situation. For example, the bank can offer a cash loan that can be granted instantly thanks to the previously performed scoring. Electronic Wallet Mobile payments have been around for a while but so far they have not been popularized in a business model that would offer a satisfactory level of comfort. Smartphones, in particu- lar those equipped with the NFC technology, may be game changing. With contactless technology and applications pro- vided by the bank in cooperation with card operators or tele- com providers, the smartphone can function as a proximity card. At the current rate of technology development, the usual plastic cards may go down in history faster than expected. VISA now estimates that by 2020 more than half of the payment transactions will be carried out via smartphone. It should be noted however, that a mobile e-wallet with a contactless pay- ment (NFC) option can be implemented in a number of busi- ness models, including those without the bank participation. Therefore, it is important for the banks to get involved in the early stage of this technology implementation. Authorization of Transactions Authorization with the use of codes or text messages is cur- rently one of the most reliable ways to ensure the security of internet transactions. From the bank point of view, this transaction authorization method is, however, a significant In Focus 1515in Focus
  16. 16. disadvantage as the bank has to cover the fixed costs of its maintenance dependent on the user activity. The opti- mal solution is to introduce a token associated with a native mobile application or with one of the modules constituting the mobile banking system. In order to perform an operation via computer or smartphone, the user enters PIN and gener- ates a one-time password or authorizes the transaction with a unique digital signature. As a result, the bank does not bear the cost of each authorized transaction. Notifications Two-way communication between the bank and the customer through a device that fits in a pocket provides a number of opportunities for interaction depending on the current context of user actions. Messages are displayed in the notification bar used to provide information on incoming text or e-mail mes- sages. Thus, no message can be ignored by the user. How- ever, this feature should be used very cautiously, because the annoyed user may uninstall the application instead of switch- ing the function off in the smartphone settings. Therefore, the default settings should include only critical event messages with the possibility of extending the scope of received noti- fications by the user. Native Application vs. Mobile Website The bank may assume that a mobile website meets all needs of the customer. However, a great advantage of native appli- cations for smartphones is that they work in the background, ensuring two-way communication between the customer and the bank. In addition, a native mobile app can use addi- tional features of the smartphone, such as the camera, accel- erometer or access to a phone book. Functionalities available only in native applications include a mobile wallet, invoice scanning, support for QR codes, video communication with a personal advisor and notifications. From the bank point of view, native applications are also easier to distribute via stan- dard distribution channels i.e. the application stores familiar to all smartphone users. What is next? When it comes to the use of smartphones in the coming years, the priority seems to be introduction of the possibility of contactless NFC mobile transactions integrated with a bank account via mobile banking applications. We can also expect further development of the multi-channel banking concept based on the existing channels of communication and inter- action with the bank, such as the video channel, which allows advisors to present the offer to their customers and reply to all related queries. Furthermore, the interaction between the bank and its customers is going to move to new chan- nels using devices that so far have not been associated with banking, e.g. Smart TV. The combination of the online banking and smartphone bank access becomes a viable alternative for the bank branches or even credit cards. The smartphone provides information, enables remote operations and begins to act as an advisor. Users can easily compare and purchase financial products regardless of time and place. The mobile banking channel makes shopping easier by helping customers find the most suitable offer and make accurate financial decisions. The devel- opment of mobile banking, however, cannot be seen as an evolution of the online banking. Mobile banking is a parallel, complementary channel, which offers new possibilities for user-friendly, simplified banking and focuses on the features that the user may need on the go. For more advanced bank- ing operations requiring more attention, the main channel will still be the online banking accessed via computer. Mobile banking can succeed provided that it is simple and user-friendly, offers useful features for a selected segment of customers and puts the limited screen possibilities to the best use without causing much discomfort to the user. This way, not only does the bank obtain an additional service channel, but also strengthens its presence in the customer life, serv- ing as an advisor who calls for actions or decisions related to personal finance. Marcin Kwilosz E-mail: Marcin.Kwilosz@comarch.com Position: Mobile Banking Solution Manager Comarch SA 16 In Focus
  17. 17. We Have to Stop Wasting Money Billions of euros for innovation flowing to universities, startups, business incubators and technology parks are mostly spent in vain. Instead, they should be flowing to Polish medium and large companies. 17in Focus
  18. 18. IN today's world, achieving innovation in a tradition- al sense, like the discovery of a light bulb, is only possible as a result of progress in basic research: in physics, chemistry, molecular biology or mathematics. Recent inventions such as the transistor, the laser, the com- puter, or use of the atom for energy production were made​​ in the 50s. Since then, we have experienced incremental or evolutionary innovation. Basic research is funded to a much lesser extent than in the past. Now, innovations are the result of the work of hundreds of thousands of scientists and engi- neers focused on developing improved versions of technol- ogies and devices. A mobile phone and internet were not inventions. Groups of engineers worked on these solutions for decades, improving a telephone and a computer with the use of the semiconductor technology. The best proof is the fact that inventors of the internet and the mobile phone are not known by name. Innovative research is funded by government agencies. Huge amount of the money allocated is wasted. Despite of spending billions on research and development, the EU institutions do not have any devices or technological solu- tions to boast about. Similarly, in Poland, Polish Agency for Enterprise Development and other government agencies give away hundreds of millions of Polish zloty with no effect. The prevailing opinion is that a significant part of the money for innovation should go to universities. The history of sci- ence and technology shows that innovations do not come from universities. Most of the money goes there, because in Brussels and Warsaw the professors were chosen to be responsible for its distribution. The problem is that the pub- licly funded institutes and universities are not responsible for anything, they do not share the stress associated with creating something new. A professor does not spend their own money, they expect that after completing one project they will get another one. There is nobody to evaluate the value and usefulness of their work. Moving away from basic research is a global problem. My experience from working in the world's leading laborato- ries in France, Australia, Canada, and visits to the U.S. is that at least since the 80s research has been commercialized to a large extent. In the early 80s, I conducted research on the development of telecommunications networks at indus- trial laboratories in Paris. In the second half of the decade, I developed algorithms for Telecom Australia at the univer- sity in Australia in the applied mathematics department. At that time my colleagues, prominent theorists from American laboratories began complaining that they had to take indus- trial internships. Global competition resulted in the confusion of roles. The main stream of money directed to universities is spent on developing technological solutions for imme- diate implementation. In order to achieve real innovation, universities should conduct preceding research. The point is not to cut funding for higher education institutions, but to restore their primary mission, which is to conduct research. In order to defend the thesis that funds are directed to uni- versities, business incubators, companies created by profes- sors or startups are promoted. Incubators and cooperation between universities and the industry within technology parks are just the pretext to raise money. The objectives of creating incubators are vague, and it is impossible to settle the responsibility for the money spent. They are in fact allo- cated to ­administrative structures. Comarch in Krakow operates in a technology park. As a result of a complaint lodged by the voivode of the Lesser Poland, the regional administrative court overruled the resolution of the park zoning plan, which means that the launch of any new investment takes at least a year longer. For many years, we have not been able to elicit the proper labeling of the route to the company, which employs nearly 2000 people. In Germany, the routes to company buildings are labeled like those of museums and memorials. Now, district councilors want to change the name of the street where our offices are located. We point out, that the costs associated with that change would be so high and even difficult to estimate, and we do not only talk about printing new marketing materials. The Comarch address is in the databases of over one mil- lion potential customers and partners. Councilors do not understand the importance of a global address database for the entrepreneur. The perception of IT companies in Poland by the decision makers is distorted by an outdated social stereotype of an intellectual: a truly wise person cannot be rich, so they must be a poor loser in order to be supported. Due to these prob- lems, Polish technology parks for the last couple of years have mostly attracted investors like real estate developers or mul- tinational corporations in need of cheap labor. Many professors raise research funds at university and then start their own companies based on the research results. As a rule, there is nothing wrong with that.That is how Comarch and numerous American companies started. However, this only makes sense if after an incubation period, the duties associated with being a professor and a business person are separated. The professor has to give up his or her job at the university and take care of business or sell the business. The situation of holding both positions at the same time is harm- ful for the company and the quality of research. It results in wasting talents and enthusiasm of gifted young people.They are attracted to companies launched by professors by the promise that they would participate in interesting research. Instead they end up doing commercial projects, and there is no one left to do science. In the beginnings of Comarch, the idea was to establish a university-related company to help young scholars earn extra money but it quickly became clear that we need to make a choice. Professor Janusz Filipiak Comarch SA Founder CEO 18 In Focus
  19. 19. There is a bizarre phenomenon in Comarch branch offices in the West: university units want to implement commer- cially innovative solutions developed by our company. Not only would no reasonable entrepreneur use such services, but also a university cannot provide commercial services. Just as with the supply of goods, there must be a defined contractual liability to provide the possibility for claim com- pensation in case of delays or defects. It is hard to imagine such a business model. Unfortunately, these expectations show how far technical universities are moving away from their core tasks. In addition to the belief that universities can be the leaders of innovation, in Poland there is an assumption that another important source of innovation are startups. A lot of money was granted to new companies, whose sole asset was a busi- ness plan included in the grant application. It turned out that they operated as long as the EU money lasted, and I am not talking about cases where the conscious or subconscious intention was to extort funding. In the mature and competi- tive economies introducing new products to the market takes time. Achieving the self-financing phase of an investment takes about seven years, a company has to make substantial investments in marketing and obtain full compliance with the requirements of the market. A company must have access to a wide sales network, which is all but impossible for a single product on a mature market. Comarch has experienced this at the outset. We generated an innovative, on a global scale, EasyNet (software for managing computer networks), but we were too small to effectively commercialize it. In a world where hundreds of thousands of people in doz- ens of countries work on innovations, the same idea can be implemented in many laboratories. In the evolutionary model of innovation it is not possible for an individual to invent something completely unique. The winner will be the one with better access to the market, a bigger sales net- work and more money for marketing. A corporation may be slower in the development of an innovative solution, but it will leave the startup far behind when it comes to its com- mercialization. In the global economy, manufacturing of the product on a large scale requires complex cooperation. The produc- tion of an attractive looking case for a device can cost mil- lions, much more than the electronics inside. In the example of iPhone, the case, usability and attractive graphics of the applications often prove to be more important than tech- nological innovation. Whereas in the EU grants for startups, the funds are provided to produce a technical solution and no one wonders who and how will introduce this innova- tion to the market. Comarch is considering the acquisition of a startup founded with EU grants. However, we do not want to buy the technol- ogy. We are only half a year behind with the development of a very similar solution financed form our own funds, so it would be very easy to make up for the time gap. What we buy is a team of very enthusiastic people with knowledge which is valuable to us. How many startups and small busi- nesses fueled by EU grants can the Polish industry buy? Unfortunately, not many. We come to the question of how the Polish medium and large companies, such as Comarch, are financed from pub- lic funds. Unfortunately, very poorly. In 2011-2012, Comarch applied to Polish institutions 34 times for EU funding of research and development. I can hardly believe it myself, but none of the applications were accepted, while in most of national rankings Comarch is considered to be the most inno- vative Polish company. For the past two years we have spent 100 million PLN annually from our own funds on research and development. Each year, Comarch sells Polish technological innovation to the biggest corporations for nearly 100 million euros, so it is difficult to believe that all of our fund applica- tions did not meet the criteria of innovation. The situation of German entrepreneurs is very different. Recently, the Bavarian government assigned about one bil- lion euros for research and development to the largest com- panies in the state, including BMW. Our German company, Comarch AG, is also a beneficiary – we have received nearly 2 million euros to build a data center in Dresden from the government of Saxony. Without any networking. In Poland, as a justification for the rejection of one of our requests , we were told that Comarch has a large profit, and it can fund its own research. In light of these facts, the recently announced EU grant program in Poland, under which companies have to pay extra to universities to carry out research and devel- opment, seems ill-considered. In the absence of visible results of EU programs, awarding enormous research and development grants for small busi- nesses, university units and startups without effects, the principles of fund allocation need to be changed. A much larger stream of funds should be directed to the medium and large private Polish companies, where the money is spent effectively, and the benefits for the whole economy will be invaluable. The article was published in Forbes 11/2012 (Polish edition) 19in Focus
  20. 20. These days customers make product choices in a very smart way - they prefer instantly available quality products of high performance at reasonable price. Customer Means Who? We know that the ultimate objective of any bank is to attract more and more customers and gain their loyalty. Bankers agree that products are no longer the main draw for customers as all banks have similar offers. If not prod- ucts, then what? If the bank knows little about its cus- tomers and ignores their needs introducing products without paying attention to that, it will not survive long on the market. The bank should observe the customer behavior and take into account their shifting demands. However, nowadays banks are reluctant to use their customer data. In some cases, its volume and segrega- tion pose impediments. In others, banks believe (erro- neously in most cases) that regulatory bodies prevent them from exploring it. Surprisingly for banks‘some 70% ofcustomerswouldbehappytodisclosepersonalinforma- tion if it improved the level of service and products they were offered’(Ernst Young Global Consumer Banking Survey 2012). Therefore, if the bank wants to survive, it must think about the customer behavior and their needs. Comarch Smart Finance – Re-think Your Banking 20 In Focus
  21. 21. Awareness These days customers make product choices in a very smart way – they prefer instantly available quality products of high performance at reasonable price. Additionally, those belong- ing to Generation Y are more demanding than others. For last few years banking customers have significantly changed. Researches show that customers become less loyal to their banks, increasingly choosy and better informed. They focus on the best answer to their needs and they do not settle for the first solution offered by their financial services provider. Moreover, the key question is how customers buy product. Internet and the real world provide numerous possibilities to get information on the product details, prices, reviews and recommendations – be it a friend in the restaurant, the shop staff, a review on the internet forum or a post on Facebook. Due to the growth of mobile internet and camera equipped-devices that just need a QR or bar code to pro- vide full information on products, creating new offers gets more complex. Customers listen to each other more than to their banks or financial advisors.‘Globally, 71% seek advice on banking products and services from friends, family or col- leagues, and 65% use financial comparison sites to find the best deals’ (Ernst Young Global Consumer Banking Survey 2012). It means that customers become disloyal. ‘The overall pro- portion of customers planning to change banks has increased from 7% to 12% since 2011’ (Ernst Young Global Consumer Banking Survey 2012). Banks should look to the future – Gen- eration Y emerges as a key customer segment. To establish positive and lasting relationship with this group, banks must revisit many of their strategies, particularly those concerning channels, marketing and products. First, they must develop a deep understanding of values that drive the consumer needs and preferences. Nowadays, banks need to better understand the lifestyle of their customers and step into their shoes. Intelligent Banking Millions of people around the world log into their internet bank at least once a week to check their balance and overall financial situation. Consciously or not, they make calculations how much they can spend. Gartner emphasizes: ‘Today’s Per- sonal Finance Management functionality focuses on delivering the customer’s current and past transactions in an organized analysis (by category, payment type or date range). However, this data usually has no connection to the customer’s future’ (Add Social Capabilities to Online Personal Financial Manage- ment to Keep Customers – Gartner Report). Comarch decided to help customers and give them ‘money-to-spend indicator’. The Comarch Personal Finance Management key feature pres- ents the customer with the amount of money available until the end of the month calculated on the basis of expenses, all fixed costs according to the transaction history, plans, sched- uled payments and income. Depending on the calculation result (surplus/shortage), the system suggests taking actions to improve the customer finances. Support Bank customers are rarely accountants, therefore they often need a helping hand. Banks should help customers make the best decision for reaching their financial goals. ‘Nearly eight in ten users say that Personal Finance Management gives them greater control over their financial lives’(Aite Group, LLC, 2010). In response to the customer needs, Comarch Personal Finance Management offers powerful tools allowing bank customers to take control of their personal finances. It visualizes their financial lives and helps them to be smart with money, i.e. save towards goals, cut unnecessary spending and achieve their financial objectives. Comarch Personal Finance Management aggregates the customer data concerning accounts, invest- ments, loans and credit cards from various financial institu- tions. It analyzes that information and presents it to the user in a comprehensible way with the use of a web browser or a smartphone application and the internet connection. Personalization Customers want their banks to know them well and treat them individually. They value personalized products and ser- vices. Therefore, banks need to employ more programmatic approach to personalize the customer experience. The cus- tomer expects the bank to take into account every informa- tion they provide, and make use of it while interacting with them, e.g. while presenting offers. If a customer rejects the cross-selling offer from a bank advisor, they should not get the same one by email shortly after. Customers should not be treated as new ones every time they interact with the bank. The customer behavior is a perfect source of knowledge about their needs and preferences that should be used by the bank to communicate in a more efficient way. For example, if the bank notices that the customer habitually overdraws the cur- rent account, it should offer the overdraft protection product. On the contrary, if the bank notices that the customer habitu- ally keeps a large amount of money on the current account, it should offer the high-yield saving products. Moreover, the customer personalization should be based on demograph- ics and statistics. Customers are ready to provide the bank with more personal information as long as they receive bet- ter-tailored offers. By incorporating a variety of external data sources, banks can gain more understanding of the customer backgrounds, interests and goals, and serve them in a better way. If the bank knows that the customer is in early 40s, owns a house and a car, and has children, it should be aware that this customer is unlikely interested in any loan products. Such a customer might be probably interested in deposit products, e.g. a savings account or a mutual fund for children education. If the bank explores all channels and business lines, then it is able to present the customer with relevant cross-selling offers. Comarch Personal Finance Management is a natural channel for personalized product offers and advice. Combining per- sonal data with customer transaction habits provides the bank with a powerful knowledge base – a starting point for person- alized conversation with the customer. Owing to the backend event-triggered business logic, the customer receives the right 21Solutions Case Study
  22. 22. offer in the right time instead of getting the annoying spam. Personalized products and services mean a higher conversion rate for banks and a higher satisfaction level of their customers. Customer Speaks The number of people using internet before making any pur- chase decision is increasing rapidly. For example, before buy- ing a car, they do a lot of research – read reviews, ratings and pricelists at different websites. Thanks to various portals, social media like Facebook and Twitter as well as other specialized networks, bank customers can learn about financial products and services offered on their market and select the provid- ers and delivery channels matching their needs and lifestyle. However, banks should listen to their customers. If the cus- tomer complains, there might be a problem with the bank product or service. Complaints allow the bank to learn about its business and help to solve the problems. Bearing in mind customer complaints shows respect to customers and wish to improve. Besides, it provides customers with a sense of security making them less likely to go to competitors. Therefore, banks should allow their customers to have a voice on their product design and delivery. Mobile Routine ‘Consumerusageofmobiledevicesischanging,withmoreconsum- ers using smartphones. Consumer use of smartphones increased sharplyin2011,from33.5%inthesecondquarterto39%byNovem- ber 2011’ (comScore report: 2011 State of Online and Mobile Banking,February2012).Today bank customers expect to access their accounts and money anywhere and anytime regardless of a service channel. What they appreciate most is the speed and operation simplicity. According to Gartner, customers use multiple devices and access points to get personal information e.g. financial data. Therefore, finance management offered by the bank must be channel-neutral (Gartner report: Add Social Capabilities to Online Personal Financial Management to Keep Customers by Stessa B. Cohen). New customers do not see any distinction between where they do their banking and where they live their lives. They want the bank to be available any- time and everywhere on all devices. No matter where they are (at work, at home or at a friend’s house), they want to view all their financial information in one place. Comarch Smart Finance Mobile offers the most popular personal Internet banking ser- vice in a smartphone-friendly format, granting them full control of their money. They can make money transfers on holidays, manage their accounts on the bus, pay their bills between meetings, and check their balances before shopping. Comarch Smart Finance Mobile allows the users to keep track of their money in a more comfortable way no matter where they are. User-friendly Experience The bank customers search for products and services with a very critical eye. They expect high quality, inspiring design and above all fulfilling their personal needs. Comarch has adopted new technologies to provide the users with the best experience of the touch-friendly layouts and lightweight, fast-loading pages, optimizing the channel for both regular browsers and touch mobile devices. The users are provided with a well-designed screen interface ensuring fewer mouse clicks and the immediate bank system response. Re-thinking Personal Finance Comarch Smart Finance is the answer to changing needs and behaviors of people who use new mobile technologies on a daily basis. Comarch Smart Finance offer a new approach to finances: »» it reminds the user about upcoming payments and shows their financial situation at the end of the month, giving advice how to improve it »» it helps the user to be smart with the money showing how to save towards goals, pay the bills, cut unnecessary spending, and achieve their financial objectives, providing the possi- bility of sharing their financial objectives on social networks and access to their money anytime anywhere »» it offers simple and user-friendly banking far from a traditional accounting approach to finances, providing all necessary information in an easy and comprehensive way »» it guarantees maximum effect with minimum effort as it takes a little time and energy to monitor personal finances with its convenient tools and automated tasks »» it provides unlimited access to the bank anytime anywhere thanks to the mobile latest technology »» it has smart interface design since Comarch attaches great importance to look feel of the solution – even though it offers the rich functionality and numerous tools, it is still intuitive, easy and friendly to use. Anna Płowiec-Wandas E-mail: Anna.Plowiec-Wandas@comarch.com Position: Business Solution Manager Comarch SA 22 Solutions Case Study
  23. 23. »» Clear visual editor helps you design, build and run a form with just a few mouse moves (drag drop) − even complex forms can be deployed in a few hours. »» Using Comarch eForms does not require technical expertise − an intuitive user interface makes creat- ing complex forms easy. »» Owing to a SOA architecture, data from many dis- tributed sources and systems are integrated into a single user desktop. The Comarch eForms system is designed for building forms, web applications and enterprise portals. With its intuitive user interface and numerous available features it fully automates the processes of registration, complaints, logistics and others that require interaction between a customer and a company. Comarch eForms – Quick Friendly 23Solutions Case Study
  24. 24. Tomasz Korczakowski E-mail: Tomasz.Korczakowski@comarch.com Position: Business Solution Manager Comarch SA eForms Editor The core of the system is a module for designing electronic forms. A large library of components allows to design even the most complex forms, as well as to easy define and efficiently process business rules. Automatic Forms Comarch eFroms is equipped with a decision engine and a rule processing mechanism. Algorithms for decision-making, exter- nal data retrieval and data correctness verification are fully con- trolled by the system and available to the business administra- tor. Mechanisms used in the application prevent errors thanks to data entry verification. All necessary calculations are avail- able in a real time. Search Engines An integral part of the system is a module responsible for brows- ing the data stored in it. To define the search engine the same components are used as in the case of eForms. The applied approach allows to build any search engine in an efficient and intuitive way.The engine can be embedded in the system, pro- viding access to the collected information, allowing its report- ing and supporting export to external systems. Monitoring Module Owing to the module of data monitoring, operations in multiple systems can be easily synchronised. The user can also imme- diately respond to unexpected events, create and distribute reports. The module enables flexible scheduling of tasks with the help of an unlimited number of calendars. The user can define holidays and with the support of the decision engine perform even the most complex calculations. Statuses of tasks are reported to the system administrator. Key Features of the System: »» easy and intuitive interface allowing business administrators to create screens available to users »» eForms repository − all data entered into the system are archived and accessible for authorized users »» eForms versioning support − successive versions of the same forms »» electronic attachments support − electronic attachments in various formats, e.g. Word, Excel, PDF, TIFF, JPG »» organizational structure support − possibility of transfer- ring eForms to a person or a department within a defined organizational structure »» administrator full control – management of system param- eters, user privileges, creation and configuration of forms, dictionaries, printouts and processes »» library of actions – a predefined library for creating sequences of actions to be performed in response to the system events (e.g. after clicking Save, the system performs a sequence of operations, i.e. validates the accuracy of data, saves data, and sends notifications by email) »» multilanguage support – supporting the user interface in different languages simultaneously. 24 Solutions Case Study
  25. 25. Market Demands A number of investment accounts opened by banks and brokerage houses in Poland continues to grow. According to the Polish National Depository for Securi- ties (NDS), in 2012 it amounted to more than one and a half million. This value can be overstated since only a quarter of investments accounts appears to be active. For brokerages, which make profits on transactions, the key issue is to activate customers. Taking into account the increasing popularity of mobile devices, their avail- ability and interactivity, it is not surprising that they are in the center of attention of financial institutions as a tool for attracting customers. The analysts of Gartner, Pyramid Research, Flurry and GfK Polonia predict a further increase in sales of smart- phones, both in the world and in Poland. According to Flurry, smartphones become the main channel of access to information − the time spent on mobile appli- cations gradually increases as compared to the one spent with a traditional browser.The analysis of banking applications carried out by experts of Janmedia Interac- tive presents huge disparities in their usability and func- tionality. The report shows that the user expectations come down to the ability to quickly and seamlessly perform the most common operations and access to various features of the application, while maintaining a high level of user-friendliness. The Comarch Mobile Investments application meets all these requirements. Brokerage houses introduce mobile access to accounts not only for the active investors but also for those who place orders occasionally. AModernMobileApproach to Investment Account Management 25Solutions Case Study
  26. 26. Customer Needs Every day, brokerage customers check the information about the companies and instruments that interest them. Broker- age houses introduce mobile access to accounts not only for the active investors, but also for those who occasionally place orders or check their investment status. Mobile browsing of the current stock prices and placing orders at any place and time is an important complement to desktop transactional and analytical systems. A mobile application, which presents com- prehensive information is often more useful than a traditional one − it requires only a mobile device. However, to meet the growing demands of users, such a solution must be continually developed in accordance with the latest technological trends. It must leverage all capabilities of the device, such as a touchable screen, gestures or the accelerometer. With the current capa- bilities of mobile devices and data transfer decreasing prices, there is nothing in the way of mobile applications for investors to become as popular as desktop applications. Comarch Mobile Investments The Comarch Mobile Investments application for iPhone with the iOS operating system is a solution designed according to current market trends. A modern smartphone app providing mobile access to brokerage services fully meets the expecta- tions of investors. Comarch Mobile Investments integrates with Comarch Smart Finance − the mobile banking solution. Thus, the synergy effect guarantees even greater range of features. The application provides an encrypted connection to ensure the highest level of data transfer security. Systems created by developers without the brokerage participation often do not enjoy the confidence of banks and brokerage houses since they might provide the developer with passwords to accounts. In this case, users make transactions in the application on their own risk. Comarch Mobile Investments is a combination of innovation, usability and ease of operation. It offers a compre- hensive functional package, combining investment account operation data with financial market dynamic information.The solution provides users with unlimited access to investment accounts and stock prices as well as the ability to place orders from anywhere in the world 24/7. In addition, users can cre- ate their own watchlists with different views − sheet orders, boxes and boxes with charts.The application can be used any- where, at home, at work, on the road, even with data roaming on. Moreover, the application has an ergonomic and intuitive user interface specific to iPhone. ‘That was a real challenge for us to make a mobile device present extensive and advanced infor- mation, as well as provide access to the system transactional part, in which the orders are executed’, emphasizes Łukasz Grędecki, Director of Comarch Production Center in Lodz. ‘The solution was developed by the team led by Marcin Góralski, who was also the main analyst. Technological aspects were monitored by an experienced designer Kacper Wołyński. Thanks to the coopera- tion with Comarch Business Development Center and one of the leading Polish brokerage houses, the current version of Comarch Mobile Investments takes into account recommendations and suggestions of all experts, optimally combining a design theory and brokerage experience’.’ Comarch Mobile Investments includes an extremely impor- tant aspect of multi-market support. The solution can be used for transactions on Warsaw Stock Exchange including Catalyst and NewConnect markets with easy transition to the transac- tional part. The Comarch mobile application meets two most important expectations of customers − it is equipped with an extensive and rich informational part, and supports the pos- sibility of switching to orders. Owing to the new technology, the application provides: »» access to main information on selected securities »» quick access to charts, statistics and a technical analyses »» quick defining of notifications on selected securities »» quick access to press-releases related to selected securities »» quick navigation within own watchlists »» quick order placing both in a simplified and complex forms. The Comarch Mobile Investments solution offers numerous advantages and is a perfect complement to Comarch Internet Investments.The next stage of the application development is a version for smartphones with the Android operating system. As a recognized brand among software providers for the finan- cial sector, for many years Comarch has focused on innovation, while ensuring the highest level of customer satisfaction and fulfilling customer expectations. Advantages of Comarch Mobile Investments: »» availability − unlimited access to the investment account and stock prices along with the possibility of trans- actions performed anywhere 24/7 with a mobile phone or PDA/smartphone and wireless internet access »» mobility − ideal for active investors operating on the go »» trust − data encryption ensuring security and protection »» enhanced functionality − the possibility of transferring any website functionality to the mobile channel »» ease of use − an ergonomic and intuitive user interface, no special hardware requirements for users. Milan Popovic E-mail: Milan.Popovic@comarch.com Position: Business Solution Manager Comarch SA 26 Solutions Case Study
  27. 27. Wojciech Pawlus E-mail: Wojciech.Pawlus@comarch.com Position: Sales Director Comarch AG Business Case Delta Lloyd Life has decided to cooperate with Comarch mostly because of the process-orientation of the solutions and their ability to offer a global view of the customer. ‘Cooperation with Comarch will allow us to optimize the under- writing process, which will result in more effective and accurate underwriting decision making. The main goal of the project is to improve the customer outcomes, service and overall satis- faction levels throughout all lines of business – pension, group and retail insurance’, says Anne Romagnoli, Chief IT Officer at Delta Lloyd Life. ‘The cutting-edge technology based on SOA principles applied in ComarchUnderwritingandComarchInsuranceClaimsenablesthe solution to fit into the existing IT environment at Delta Lloyd Life as the best-of-breed component in the medical acceptance area’, underlines Anne Romagnoli, Chief IT Officer at Delta Lloyd Life. ‘We are confident that our market-proven solutions will allow Delta Lloyd Life to meet its business objectives. It is a common goal for both sides as we see ourselves as long term partners for our customers. The project with Delta Lloyd Life is an important step to strengthen Comarch’s position in Benelux – the region that lies in our strategic interests’, adds Wojciech Pawlus, Sales Direc- tor, Benelux Region, Comarch. ‘The Comarch application offers not only rich functionality in terms of underwriting and claims processes. Our solutions are based on a common technology framework which incorporates the Comarch Business Process Management tool. The BPM com- ponent allows for flexible configuration of the process to best reflect the customer operations.  Moreover, Comarch BPM enables managers to monitor the user work and their efficiency as well as providing the MI reporting, which allows for spotting bottlenecks and process optimization, explains Ewa Jasiecka, Managing Director, Comarch UK. Delta Lloyd Life is a leading Belgian insurance company offering life insurance to corporations and individuals. The company was founded in 2001 as a result of merger between CGU Life, OHRA Leven and Norwich Union. After the merge with Swiss Life Belgium in 2008, Delta Lloyd Life has become a true expert in the ‘pension’ segment while strengthening its position in the Non-Life market under the name Zelia. Delta Lloyd Life is also the organizer of the Pension Ambas- sador Award. Delta Lloyd Life NV is headquartered in Brussels, Belgium. The company operates as a subsidiary of Delta Lloyd Group that is listed on NYSE Euronext Amsterdam and operates primarily in the Netherlands, Belgium and Germany. Comarch announced that Delta Lloyd Life, a Belgian pension insurance expert and active player in the corporate and retail life insurance market, chose Comarch solutions to support the company in refining the medical acceptance process. Comarch for Delta Lloyd Life 27Solutions Case Study
  28. 28. The Comarch Personal Finance Management innovation lies in simplicity.The customers can relax and relies on the system, which automatically reminds them about deadlines, payments and other important dates. Comarch Personal Finance Management is not only a tool to make saving and managing money more effective – it is a customer guide for planning the budget, which takes the initiative and requires minimum effort. Comarch Personal Finance Management – Get Closer to Your Customers ‘Simplicity is about subtracting the obvious and adding the meaningful’ – John Maeda, The Laws of Simplicity: Design, Technology, Business, Life IN times when the economic situation changes very quickly, the role of an innovative financial institution is not only to follow their customer habits but to create trends. Customers appreciate visionaries, forward-thinkers and those who strive for new solu- tions. Following and analyzing consumer trends allow to forecast their evolving expectations for coming years. The best way to get to the customers is to follow their habits, everyday behavior, and recognize their daily rou- tines. The annual report Consumers Convergence, released by KPMG in 2011, tracks trends in the consumer behavior and indicates the direction of future changes.The results show that consumers would consequently turn to mobile devices to support their daily routine. Even though the personal data security remains the main concern among mobile devices users, 56% of respondents would choose financial institutions as the most reliable to deliver their services via mobile. This outcome predicts increasing popularity of the financial software and applications dedicated to financial institution customers. To be successful in attracting new customers and retaining old ones, financial institutions should always be a step ahead of them. Moreover, they should be eas- ily accessible and flexible. These days, as the market competition is fierce, loyal customers are valued more than ever. When the economic situation is unstable, people tend to keep their funds and capital safe and controlled. To meet their needs, Comarch has devel- oped a tool that enables tracking and monitoring the customer payments and expenses. Moreover, it gives them reliable estimations of their future cash 28 Solutions Case Study

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