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Communiqué is the quarterly journal of HCL’s Financial Services Division. It presents insights, commentaries and ideas impacting the financial services industry worldwide. Communiqué connects you with some of the world’s leading thinkers and subject matter experts on an interactive platform so that you can stay updated on the technology and trends that impact your business.

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  • 1. 1 Issue 3 | May – July 2012
  • 2. Foreword T he financial services industry was amongst the first to embrace technology. Today, regulatory requirements and customer demands are forcing it related to mobility is growing at a perplexing pace. An entire practice called Mobile Financial Services (MFS) has sprung up. It isn’t as if no one knows what to do; to stay ahead of the curve. Strangely, despite being it’s just that the options available are so vast and varied an early adopter, the industry has been cautious of that few are able to understand where to begin and new technology. This is because of the considerable what the mobility roadmap should look like. investments the industry has locked in legacy systems. From the years I’ve spent in the industry, with literally But mobility is changing this inherent industry trait. an insider’s view to developments, I’d say that a good Financial services providers are arming their employees place to start is by forgetting the fact that mobile and representatives with mobile devices to ensure phones are for communication. Think of them as they have anytime, anywhere access to customer data, tools that can reduce cycle times. When you shrink portfolios and products; they have access to tools that process time, the most striking effect is on customer help service customers instantly, craft personalized satisfaction. Think of them as tools that can access offers in an instant; and then use the same device for data that is sitting in remote locations, making your their reporting. business more responsive and ensuring you make smarter decisions. These two aspects should be the Customers of financial services, on the other hand, corner stone of any mobile strategy. want to go beyond the convenience of receiving a brochure of an offer on their mobiles. They want to There are other questions: Which apps to develop? access their portfolios, trade, complete payments, make What platforms to adopt? Which part of the remittances and manage their finances better. Over the organization should be “mobilized” first? How should last decade, thanks to consumer push, words such as security be managed? How much customization is mPayments, mWallet, mBanking and person-to-person good for me? All these are secondary questions and mobile payments have become popular. And before you will eventually find answers. know it, Near Field Communication is here, ready to However amidst this mobility turmoil, a word of further change the way financial transactions happen. caution would not be out of place. Everyone is excited There is growing interest in SMEs and the unbanked about smart phones and tablets. They should be. These as a business segment that has so far remained off the devices are the future. But right now, as you read this, radar. But, cheap, convenient, mobile-based self-service feature phone ownership outnumbers smartphones processes are changing the entire financial services 2:1. Don’t forget to make sure your mobile strategy landscape. includes all customers. When you look at the numbers – I won’t provide any Rahul Singh here since this issue of Communiqué is already bristling President, Financial Services & Business Services with data on mobile trends – practically everything HCL Technologies Ltd.Issue 3 | May – July 2012 2 1 Issue 3 | May – July 2012
  • 3. Mobile Banking: An Opportunity for Entrants 06 Celent’s Senior Vice President, Banking, Bart Narter defines the components of mobile banking, shows examples of non bank players successfully entering mobile banking and explains where the dynamics of mobile banking have great possibilities of disruption. SME Mobile Banking: A Revolution Just Around the Corner 11 SMEs want mobile-based banking that helps them run their business smarter. This spells a new opportunity that can unlock services that generate revenue streams. What are the key elements of an approach for developing services aimed at SMEs? By Sudarshan PT and Ravi Raghavan Aiming at transformational solutions 18 App development in the mobile space is a phenomenon that no insurance business can hope to avoid. The problem is of choices. By Vishal Mair and Anand Syril On-boarding the Mobile Channel in the context of multi-channel 25 integration The Mobile Channel has the potential to revolutionize customer experience in Retail Banking, provided banks approach “going mobile” in a strategic and structured manner. By Sudarshan PT Business Intelligence Comes of Age 32 The broad experience of SAP suggests that Mobile Business Intelligence is finally a reality. SAP’s Venkatesh Vaidyanathan and Viswanathan Ramakrishnan discuss the challenges and the solutions to deploying Mobile BI. Different Facets of Mobility: Capital Markets 38 HCL’s experience with customers provides important pointers for your own mobile IN S IDE initiative. By Ajay Banwari The HTML5 Revolution 42 HTML5 has a major impact on business models related to mobile content and mobile apps. In this Q&A Ganesh Venkatraman, Global Technology Director, HCL, provides insights for the Financial Services industry that is already responding to the new development. MERLIN: Nerve Centre of Mobility Innovation 46 HCL, in collaboration with EDB (Economic Development Board) Singapore has recently set up a regional mobile innovation lab called MERLIN. This lab provides Enterprise Customers with access to cutting-edge mobile innovation concepts. By Subbaraman Ramaswamy Analytics for premium mobile services 48 As we move into a 24X7, anytime, anywhere lifestyle, the need to deliver sophisticated, decision-enabling content will become more urgent. How does analytics help? By Balachandran Ponnusamy 61 Preparing for the Tablet Invasion An analysis of how financial services should look at their tablet adoption roadmap. By Arun KatiyarIssue 3 | May – JUNE 2012 may - July 2 3 Issue 3 | May – July 2012
  • 4. From the Editor’s DeskO n a weekend in March, I read with growing interest a report called Mobile Consumerization Trends &Perceptions IT Executive and CEO Survey prepared by Palm OS found its way into a smart phone. Words like BlackBerry were just on the horizon. Android, iOS, Bada, MeeGo, etc didn’t even exist.Decisive Analytics for Trend Micro (February 2012). Helping us find our way through the mobile mazeIt spoke at length about the Bring Your Own Device is the invaluable practical experience of our experts.(BYOD) trend – which really is about people like you We are delighted that Celent’s Senior Vice President,and me getting our smart phones and tablets to work Banking, Bart Narter found the time to contribute andbecause we have fallen in love with our gizmos and bring the sweeping view that he has of developmentsdon’t want to use anything else. Everyone out there is related to mobility. He explains in this issue why he“embracing” BYOD; getting “impacted” by BYOD; thinks mobility has great possibilities of disruption.“strategizing” around BYOD and generally, it would Our own Senior Solutions Consultant Sudarshan PTappear, is totally consumed by BYOD. They are writes about on-boarding the mobile channel in theromanced by the fact that their consumers (who are also context of multi-channel integration. This is a crucialthe ones fuelling the BYOD trend) are totally wedded to subject. For financial institutions, it is not just adoptingtheir mobile devices. a new technology, but integrating it with the numerousBusinesses are eager to leverage the trend and yet don’t other channels that hold the key to customer delight.know how to go about it or its actual impact. The We have two insightful contributions -- one onDecisive Analytics report reflected the chaos around mobile business intelligence from SAP’s VenkateshBYOD and mobility in general. Introducing its findings, Vaidyanathan and Viswanathan Ramakrishnan andthe report said, “The introduction of employee owned the second on the choices for app developmentdevices may impact costs associated with supporting before insurance companies by Associate ManagerBYOD, with some companies finding that overall costs Anand Syril and Senior Manager Vishal Mair frommay either increase or actually decrease with the advent our Business Solutions Group. Global Technologyof BYOD…” Is there any other way costs can go other Director Ganesh Venkatraman provides us an insightthan up and down? Which only tells you how perplexing into the kind of revolution HTML5 will bring to thethe problem is. mobile landscape. There is quite a bit more in this issue and I’ll leave you to explore it.At Communiqué we decided to examine mobility andbring perspective to what it is doing to the financial But, before I sign off, I’d like you to think aboutservices business. Or belief is that where mobility this: you are mobile, your friends are mobile, youris concerned, businesses are not even scratching the colleagues are mobile and your customers are mobile.surface. Some of this is because no enterprise wants to Do you believe your company is equally mobile? Makerush into a technology, make investments and then find sure it is.that the technology has changed. I mean, 10 years ago,if you had asked people in large technology companiesto list mobile operating systems the list would have Subramaniam Baskaran Global Headstarted and ended with “Symbian.” Sure, there was Business Solutions Group - Financial ServicesPalm OS, but that was a PDA. It was only in 2001 that HCL Technologies Ltd 5 Issue 3 | May – July 2012
  • 5. Mobile banking can be broken down payments. There are at least three into five categories, using the mobile subcategories: phone or smartphone as: A. Money transfer services, which 1. A media channel. Leading marketers include domestic P2P and other Mobile Banking: have found creative uses of a transfers, bill payments, and mobile device to promote the international remittances. B. Mobile commerce, which includes An Opportunity overall brand or specific products. various mechanisms allowing 2. As a channel for banking (account) purchase of physical and digital for Entrants services. Just like online banking, goods and services from remote delivery of mobile banking is no merchants through a mobile longer an option for a financial phone. institution. Celent includes both information and transaction services C. Retail point of sale, sometimes as part of the definition of mobile referred to as proximity banking. payments, which includes paying via mobile for purchases from 3. a traditional payment As brick-and-mortar retailers. Near instrument acceptance device - Field Communication (NFC) mobile point of sale (POS). In is the technology receiving this category Celent includes the most attention, but there check Remote Deposit Capture are alternatives, such as Quick applications (mobile RDC) and Response (QR) codes or even various services that turn a mobile remote payment methods. phone into a POS terminal enabling card acceptance (e.g., 5. As a repository of “wallet Square). Although these may services” (non payment service). look like payment transactions, Mobile phones can receive and Celent views them as acceptance store coupons, act as a ticket for innovations for traditional transportation or events, and payment instruments and does perhaps even be used to confirm not consider them to be mobile the owner’s ID. Celent’s view is payments. that many of these applications 4. a payment initiation or As will be critical in reshaping the approval device, enabling mobile retail landscape and driving adoption of mobile payments. ... channel for ... payment acceptance banking services (‘point of sale)’ device • Mobile banking • Enabling mobile transactions merchants to accept non- M cash payment obile banking can mean many things to many people. Here Celent defines the components ... sales and of mobile banking, shows examples of non bank marketing Mobile phone medium players successfully entering mobile banking and as a... • Cross sell, explains where the dynamics of mobile banking have upsell, location based sales great possibilities of disruption. Celent’s Senior Vice ... payment initiation ... recipient of President, Banking, Bart Narter believes that there Bart NARTER device payments/ value token/ are real opportunities for disruption in banking via Senior Vice President, Banking • Remote and proximity authorisation PIN payments - buying • Receiving payment mobile, but not in all areas and all markets. Celent physical/ digital goods messages, loyalty points, sending remittances coupons, vouchers, etc.Issue 3 | May – July 2012 6 7 Issue 3 | May – July 2012
  • 6. Nonbank Players: mPesa In Kenya banks were not a viable competitor. Most branches and ATMs Nonbank Players: Japan So what happened here is that large traditional credit card companies’ were in the capital, and the number of branches was miniscule compared to payees, from Japan Rail, to 7/11, to clout in the nascent market forThe classic example of a non bank the number of Safaricom/ mPesa agents that could provide cash in/ cash Japan is a unique market. Celent Aeon, decided to set up their own mobile transactions.” It would appearentering the financial services arena out services. There are about 440 Post Bank branches and 540 commercial observes that nonbanks have payments brands, extending their that we have a new, thinner mPesa, the money movement bank branches across all of Kenya. This compares to 14,800 mPesa stores come to dominate the contactless/ POS to merchants outside the core mobile payment market in Japan. business. The United States has a number ofprogram from Safaricom in Kenya. across the country, giving much broader coverage for mPesa, by an order of very efficient and effective paymentSafaricom is the leading mobile Contactless cards are quite popular magnitude. Nonbank Players: Isis mechanisms, including credit cards for alternative payments, and mostnetwork operator in Kenya and is a on the American Express, Visa, mobile phones in Japan can support Isis was hoping to revolutionizesubsidiary of Vodafone. In this case, and MasterCard networks. Debit the loading of these cards into the the payments industry with a newmPesa became the country’s leading mPesa Has More Locations Than All Banks Combined cards can run on these networks as phone. The interesting bit is that payment brand backed by the threemoney transfer service, representing (Vertical Axis: Locations) well as the ATM networks such as largest mobile carriers: Verizonalmost 4% of GDP. Star, NYCE, etc. To summarize, in banks missed the boat in Japan, Wireless, AT&T, and T-Mobile. developed markets plastic works, and non banks dominate the Isis represented over 85% share, and it works just fine. It will be hard contactless/ mobile payment more than Safaricom in Kenya. Yet to displace an entrenched payments business. The top five brands it crashed and burned. In The Wall network without its cooperation. The (Edy, Suica, WAON, DCMX, and Street Journal, we see the headline case for mobile NFC in developed Nanaco) are all non bank payment “Pay-by-Phone Dialed Back -- markets was always a bit shaky. brands. Carriers Scrap Plans for Their Own Network, Look to Big Credit Card Isis has been having a serious rethink. Companies.” What happened? While mPesa can work in Kenya, According to the Journal, “The it can’t work in most developed biggest U.S. wireless carriers are countries with well-developed scaling back a joint venture for payment infrastructure. The mobile payments that they originally competition is just too great.Source: Celent Source: Central Bank of Kenya, Safaricom, KPSB hoped would compete with Visa Inc. and MasterCard Inc., reaffirming themPesa also became a P2P payment Safaricom had between 75% and 80% market share meaning that, for oneprovider, but the reality is that many person to pay another person via mPesa/ Safaricom, it was very likely that Source: Celentsmall businesses in Kenya use mPesa the recipient would be part of the network. In few other instances does onefor business payments and payment find a Mobile Network Operator (MNO) with market share above 60%. The most popular bank-led paymentacceptance. Vodafone has tried to replicate this success in other African countries where brand, JCB, is the Japanese credit it has operations, but the market share of mobile was never as high as it was in card scheme, and is an also-ranSafaricom was able to launch a Kenya, and the payment business never took off to the extent it did in Kenya. compared to the top contactless/successful P2P payment network for mobile payment brands.a number of reasons: Finally, the regulators did not imagine that mPesa would become as big as it did. It allowed mPesa to move forward uninhibited. Edy is a joint venture of NTT1. Lack of bank competition. Docomo (Japan’s largest MNO)2. Large customer base. Other regulators (and banks) that have seen the example of mPesa are and Sony Rakuten, comparable to unlikely to give such free rein to mobile network operators. This doesn’t Suica is an initiative3. Lack of restrictive regulation. mean that MNOs won’t be able to enter the market. It means that they will of Japan Rail, which operates bothThe most important reason is that need to have all the regulation and compliance systems that their banking intra- and intercity train lines. WAONSafaricom had two networks: one competitors must use. is from Aeon, a large Japaneseof customers, and one of agents retailer and mall operator. DCMXthat could provide cash in/ cash is from NTT Docomo. Nanaco isout services. Payments are all about In this case mPesa became a P2P payment network and evolved into a retail from the 7/11 chain of conveniencenetworks. POS device, as more and more merchants accepted mPesa and P2P evolved stores. Each of these players brought to C2B, all via the mPesa network. a network of payers and merchants.Issue 3 | May – July 2012 8 9 Issue 3 | May – July 2012
  • 7. Telcos will continue to do telecom, The lessons to be gained Further reading:and banks will continue to dopayments, especially in the developedworld. There are many models for non bank organizations moving into • Making Sense of Mobile Financial Services: A Proposed Taxonomy, SME Mobile Banking: A Revolution September 2011 (http://www. the banking world. mPesa is theMobile-Only Banks por ts/making- paragon of an MNO moving into sense-mobile-financial-services-In mature markets, Internet-onlybanks have been able to gain share the vacuum left by banks, becoming a preferred way to move money proposed-taxonomy) Just Around the Cornerby offering higher savings rates due and make payments in Kenya. In • The View from the Mobile NFCto the lower cost of not having to Japan, various retailers have created Finish Line: Bank Economics insupport a branch network. ING a payment brand first for themselves, a Mature Mobile NFC Payments and later allowed other merchants World, September 2009 (http://Direct, Charles Schwab Bank, USAA, and Ally Bank (formerly to join the network. They generally mobile-nfc-finish-line)GMAC) are four excellent examples had sufficient pull (e.g., Japan Rail,of branchless banks that have 7/11) that consumers would wantsuccessfully gathered deposits. These to carry the payment mode in a card About the author:four alone have gathered over US$ or mobile wallet. Yet in a developed200 billion in deposits1 in the US. market, Isis has not had success due Bart Narter is Senior Vice to successful entrenched payment President, Banking, Celent.Analogous to this would be a mobile- methods and no new compelling Narter’s areas of expertiseonly bank, although it probably value proposition. Direct banks include technologies affectingmakes sense to have both mobile have had success in many markets, retail financial services, withand Internet in developed markets. and mobile-only banks would be an a particular emphasis onBret King, the author of Bank 2.0, extension of that business model. mobile banking, core bankingis looking to start movenbank, a MNOs won’t be taking over the systems, and service-orientedmobile-only bank based on the architecture. He has been widely role of banks in developed markets,same premise. This would be the quoted in the press, including where payment networks are alreadytraditional banking functionality. The New York Times, Financial entrenched. Times, The Wall Street Journal, and Dow Jones. Narter received his MBA from Stanford University and his BA from Vanderbilt University. About Celent: Celent ( is a research and consulting firm focused on the application of information technology in the S MEs want mobile-based banking that helps them run their businesses smarter. This spells a new opportunity that Ravi Raghavan Senior Solutions Consultant HCL Technologies Ltd global financial services industry. can unlock services that generate revenue Celent’s team of analysts are streams. Trends indicate that this could be   industry verticals: banking, organized by financial services the new growth area for banks. Will banks security & investments and rise to address the needs of this under insurance. served sector? What are the key elements of an approach for developing services aimed Sudarshan PT at SMEs? Senior Solutions Consultant 1 HCL Technologies Ltd Source: FDIC, June 30, 2011Issue 3 | May – July 2012 10 11 Issue 3 | May – July 2012
  • 8. Small and Medium Enterprises (SME) are major contributors to a nation’s the acceptance of mobile based 3. The Payment Push: 4. The Unbanked: Customer sub-segment: Just as theGDP. In G7 countries, SMEs contribute about 53% of the GDP. In the case banking services more attractive and needs of mass-market retail banking The robust growth expectations on For developed and developingof countries belonging to the European Union the contribution is 49% of consumable. customers differ from those of ultra the mobile payments space (The economies, small businesses havethe GDP. In spite of the importance of SMEs, banks have not focused on the high net worth individuals, so too will 2. The Cost & Revenue Factor: very limited/ no access to formalSME segment. However banks of late are recognizing the uniqueness of the value of global m-payments reached the needs of SME customers differ financial services. The banks haveSME segment and the need for differentiated servicing of SME customers. The relatively lower cost of providing €62 billion in 2010, & is expected limited information on the small based on the sub segment they belong services through mobile makes it that to grow aggressively at a sustainedIn this context, SME customers are showing a willingness to subscribe to business owner and have a natural to. Thus, a small sole proprietorship much more a compelling proposition annual rate of 52.3% from 2009 toSME mobile banking services. A 2011 survey by Aite Group found that 30% disinclination to provide access business will probably not require too for banks, as the average cost of 2013, putting global m-paymentsof companies with revenues less than US$ 2 million would be ready to use to formal bank services. Mobile many sophisticated mobile banking servicing a transaction is the lowest at €223 billion– World Paymentsmobile banking services. banking is identified as a solution features, whereas a larger business on the mobile channel. Report 2011 from Capgemini, RBS for unlocking the entrepreneurial may require more advanced featuresLet’s now look into some of the key drivers for SME mobile banking (see & EFMA) is another fillip to mobile Figure 2 provides a comparison of potential of the informal sector. related to cash management andFigure 1): based SME banking services. In an average transaction cost across fact many banks such as J.P Morgan This potential of SME mobile multi user management. Therefore, banking channels. It is noted that Chase, Citi and Bank of America are banking can be unleashed in the it is imperative for a Bank to the average cost of a transaction is providing their customers the ability following manner: appropriately sub-segment its SME the lowest among channels for the to transfer money from account to mobile channel a) Development of electronic customer base and then map mobile account through mobile (B2B). banking features to the different sub- alternative (air time) to cash Additionally the emergence of the segments. b) SMEs can build a transaction smart phone as a mobile point of history by transacting Suitability of features: All features sale (POS) enabler has the potential electronically (with a link to a and functions that are available to provide greater value to the mobile bank account) to SME customers via the online SME banking proposition. c) The transaction history created banking channel need not be made Square, the mobile payments startup, can facilitate SMEs in building available to them on the mobile recently introduced the Square their book keeping records channel. Similarly, there could be Register App that can replace the (through a mobile based book another set of features which are Figure 2: Bank Channel Cost Comparison expensive card readers at small keeping and inventory system) not available on the online channel, business shops. The Square Register yet could be deemed necessary to be Source: Fiserv/M-COM d) The transaction history and book app (which can be deployed on an offered via the mobile channel for keeping records can potentially This way banks can move routine iPad) can be used for processing SME customers. The decision on a open the doors of the SMEs to banking transactions to the mobile credit and debit card payments. It formal banking services suitable feature mix will be governed comes with a free detailed analytics channel while retaining operations “The number of unbanked or under by a number of factors including system for business owners and more which require personal interactions integration with Card Case, Square’s banked mobile subscribers around mobile strategy, levels of self service in the branch. In other words SME consumer-facing app that allows the world is projected to reach 2 mobile banking provides banks people to pay with their smartphones billion by 2012” (Beyond Payments the opportunity to strike the most just by being in the vicinity of a –Next Generation Mobile Banking optimized balance between assisted Square-using business. Card Case for the Masses – Oliver Wyman)Figure 1: Key Drivers for SME Mobile Banking service and cost-effective self- uses GPS tracking to detect when What are the drivers that are service. a customer is near a store and letsAmong the drivers, the following the luxury of a huge workforce storeowners automatically charge influencing the evolution of theare providing the primary thrust: taking care of different aspects of For long monetization of mobile them without having to swipe a credit functional components of SME business operations. In most cases offerings has been a pipe dream for card. Over a period of time banks mobile banking?1. Business Convenience: the average SME is multi-tasking and can play the role of an acquirer for banks. The icing on the cake is the playing multiple roles in managing SME Mobile BankingThe ability to manage banking needs potential for monetizing services these types of Mobile POS services. and operating their business. This functionality – the driverson the go makes great business being offered on mobile to SME makes it imperative that the SME has Brett King, the author of Bank 2.0sense for a SME. It provides them customers. An Aite Group Small– The decision on the type of features the facility to take of care of their has predicted that “Within the nextimmense business convenience as Business Survey, Aug 2011 indicated 3 years our phone will become the and functionalities to be offered by athey would rather focus and spend banking needs at a place and time of that more than one third of SME’s payment device of choice for paying Bank as a part of its mobile solutiongreater time on managing their their convenience. (interviewed as part of the survey) SMEs who work in the service to a SME is driven by the followingbusiness operations than spending New age mobility devices such showed a willingness to pay for value arena.” key factors:time at the branch of a bank. SMEs, as the smart phones and tablets added services on mobile.unlike corporates, do not have have emerged just in time to makeIssue 3 | May – July 2012 12 13 Issue 3 | May – July 2012
  • 9. desired, level of sophistication of in house technology team that staff to service SME customers As the adoption of mobile devicescustomer base etc. understands and has executed referred to as “Staff App”. It is to be (including tablets) increases, and mobile banking. Again, as specialist noted that while referring to “App” traditional limitations such as limitedMobile device capabilities: As the online and Mobile Banking solutions we are referring to the entire range real estate of mobile phones arefeatures of mobile devices keep emerge for the SME segment, Banks of mobile solutions across SMS, overcome, SME customers willevolving rapidly, designing a solution will need to keep abreast of such WAP (Wireless Application Protocol look to adopt the Mobile channelthat leverages these features, while offerings as opposed to trying to – mobile browser) and Smart app for increasingly advanced Bankingtaking cognizance of the limitations retro fit existing solutions aimed modes of delivery. services.of the same becomes a challenge. either at retail or corporate customer approach. As a result, a number of by the SME segment. The AiteFurther, mobile devices include Further, it is seen that the geography segments. Banks are looking to launch tailored Group survey indicates that less thanmobile phones and tablets, both SME segment specific solutions and also determines uptake of Mobilewith distinct sets of features and 20% of small businesses currently SME Mobile Banking offerings. Banking services – for example,capabilities. Banks will need to bank through a mobile device. Spectrum Further, due to the nature of the However, the survey also indicates uptake of Mobile Banking servicesforge strong relationships with for all customer segments in the SME segment, a single broad based that the scenario is changing andmobile device companies and Singapore and Australia markets is solution may not serve the needs of more than one-third of those SMEsindustry forums, thereby gaining surveyed would even be willing to significantly higher when compared all the understanding of current and pay for a mobile-based SME Banking to the US market.roadmap features of mobile devices. Banks will need to understand their offering.. own SME sub segments and then It is vital for Banks to plan theMobile Security: Security is another devise a solution(s) depending on the delivery of their SME Mobilefactor that will determine the scope needs of the sub-segments. SME Mobile Banking – Banking offering in phases andof the functionalities that can be possible features and roll provide tangible, benefits oriented The SME Mobile Banking continuumoffered by banks and subscribed to extends between Personal/ Retail out phases functionality in every the bank’s SME customers. Mobile Banking and Corporate Banking, The preference of SME customerssecurity has to be contemplated from with functional complexity increasing for specific Banking services through As an example, Figure 5 showcasesmultiple factors both functionally and as one moves from the Retail end of the Mobile channel as highlighted in a phase wise approach which a Banktechnologically. For instance: from the spectrum towards the Corporate the Aite Group survey, is shown in can take to launch its SME Mobilea functional perspective the levels end of the spectrum. Figure 4. Banking service.of mobile authorization of mobile Banks may decide to adopt a “horsespayments might vary based on the size for courses” strategy and implementof businesses necessitating different a tiered SME Mobile solution thatlevels of security. For a bigger sized includes:SME there might be multiple levels Q. How interested is your business in performingeach of the • A “Personal ++” solution forof payment authorization while a following transaction types via a mobile device? (n=308) smaller SME customers whosmaller SME might necessitate a Figure 3 require only a few additionalsingle level authorization. features over and above PersonalAdditionally the mode of delivery Figure 3: The list of services in Mobile Banking SME Mobile Bankingservices, text messaging, the mobile the diagram under customer app functionality – • A “Corporate” offering for largerbrowser and smart apps call for and staff app are just a sample of the approach SMEs with more sophisticateddifferent levels of security raising the services being offered and not a operations and needsconcerns for banks on the need comprehensive list of services being The approach that Banks take to offering Mobile Banking services to • A hybrid solution which may startto arrive at an optimal balance offered in this space. off as “Personal ++” but has thebetween customer experience and SME customers is heavily dependent Figure 3 depicts the spectrum on how Banks approach the SME flexibility to scale up and moveauthentication and validation. towards Corporate Mobile Banking of mobile banking solutions in segments itself. Traditionally, BanksMobile application vendor products: the SME space. Overall, mobile have classified SME customers either An Aite Group Small BusinessBanks need to understand the banking applications for the SME under the Retail business or under the survey, August 2011 indicates thatcompetitive landscape of mobile segment fall into two categories Corporate business and therein lies Banks are at the nascent stage ofapplication vendors and product – Applications used by end SME the challenge faced by a number of rolling out SME focused Mobilecompanies. Such an understanding Banks today. Banks are beginning to Banking services. This is also a customers referred to as “Customer realize that SME customers are being reflection of the level of adoption ofwill need to be augmented by an App” and applications used by Bank Figure 4 sub optimally served because of this mobile devices for banking servicesIssue 3 | May – July 2012 14 15 Issue 3 | May – July 2012
  • 10. Further, in the context of the • Financial Analysis As is evident, the real value of global economic meltdown and the • Budgeting “BFM” will be as a value add to the considerable “push” from Central core SME Mobile Banking solution. Banks to focus on the SME sector, • E-invoicing the value of such a solution gains There is immense potential for • My Business Companion (advisory prominence. videos and discussion forums) Banks to tap into the SME customer segment with differentiated mobile Such a solution will also enable There is a plan to incorporate propositions. Buoyed by the Banks to “give back” to society as additional features including willingness of SME customers to one of the key challenges faced by dashboard reporting, integration of adopt mobile solutions, and, more SMEs is efficient management of personal and business finance views, importantly pay for some of the their finances. expense tracking, B2B transaction services, Banks are gearing up to links etc. launch innovative SME segment In its current avatar, the key features of “BFM” are: A few relevant “BFM” screen shots focused mobile banking solutions. It are shown below. is safe to say that an SME Mobile Increasing levels of self service Banking revolution is just aroundFigure 5 the corner!Each of the phases has been given a SME Mobile Banking – “Mobile Financial Management” istheme, and the set of functions and “Appization” “Business Financial Managementfeatures in each phase is illustrative (BFM)” – HCL has developedand not meant to be exhaustive. In the smart phone and tablet era, “BFM” as a proof of concept About the authorS: developing and deploying specialized value add app for the SME BankingThe broad theme in this case is a Sudarshan PT: Sudarshan “apps” seems to be the order of market.“Personal ++” based approach. the day. PT is a Senior Solutions “BFM” is an “app” aimed at enabling Consultant at HCL with overFurther, Banks may want to segregate In the context of SME Banking SMEs to manage their finances better 11 years of experience in the ITthe delivery of transactions such as too, Banks can look to develop specific value add “apps” which by virtue of rich functionalities industry, focusing on the BFSpayments into “payment approvals” will differentiate their SME Mobile for financial analysis, business domain. He has broad rangingand “payment initiations”, with Banking offering in an increasingly networking, e-invoicing and advisory experience covering programapproval related transactions being services. commoditized marketplace. Such management, business analysisdelivered first and then followed later “apps” can either be deployed & consulting, product ideationby initiation. This is because payment An Aite Group Small Business independently or integrated with the & implementation and solutionapproval requires less time and is survey, 2011 showed the following as core SME Mobile Banking offering. architecting in the Bankingmore convenient to do on the mobile “significant” pain points for SMEs, An example of such an “app” which thereby validating the possible need channels, CRM, lending, Corechannel as compared to payment falls within the broad category of for such a solution. banking, Central bank reportinginitiation that involves more steps in and credit data managementthe process and may be cumbersome complete on a mobile phone. Ravi Raghavan: Ravi RaghavanThe other aspect to note is that Q. Percent stating“challenging” to“extremely chalenging” is a Senior Solutions ConsultantBanks may decide to develop and at HCL with over 12 years ofdeploy differentiated apps for mobile business-systems experiencephones and for tablet devices. This is in the IT Industry in Bankingprimarily because of the differences and Financial Services businessin “real estate” and capabilities of in areas such as Bankingtablets vis-à-vis mobile phones. Channels, Lending, FinancialHence, for example, an app launched Infrastructure, Central bankfor a mobile phone may only include reporting Data Management/payment approvals, while an app for Warehousing.the tablet may incorporate paymentinitiation as well.Issue 3 | May – July 2012 16 17 Issue 3 | May – July 2012
  • 11. The big prediction is that mobile phones will outrun the world population by 2014. No wonder mobility has everyone scrambling to see how they can Aiming at be part of the mobile revolution. The proof points for the growth in usage of mobile devices – smartphones, tablets, e-readers and PDAs, collectively called connected devices – is all around. Across the world, says a recent transformational study by comScore (NASDAQ: SCOR) a leader in measuring the digital world, the trend is of mobile devices becoming a gateway to web (see Figure solutions 1). The shift in device consumption means that businesses must seek to understand their audiences better and align their product, price, marketing, servicing and support strategies accordingly. Non-Computer Traffic for Selected Markets Singapore accounts for more than 11% of non-computer traffic on the web. It is indicative of a trend sweeping the world Figure 1. Source: comScore, Device Essentials, Dec-2011 The irony is that today, if an insurer releases an app for homeowner’s quote, the app will go unnoticed in an already flooded market as an “also ran” in the mobility space. Research by Neilsen in 2011 showed that mobile subscribers spent four hours and 20 minutes watching video on their mobiles representing a 20% increase from Q2 20101. At the start of the millennium, A pp development in the mobile space is a phenomenon that no insurance business can Vishal Mair Senior Manager, Business Solutions Group – Insurance HCL Technologies Ltd user interfaces for such content were built based on the assumptions of screen size and browser versions. The advent of mobility brings a new dimension of compatibility. The buck doesn’t stop here, but extends to the business as well. A Google survey shows that compared to desktop-based advertising (online), hope to avoid. The problem is of mobile can deliver an 80% increase on click-through rates and a 43% higher choices: should the strategy be to conversion rates at a 15% lower cost per action (CPA). Given the evidence, follow the leader? Or should the an m-business strategy becomes quintessential to success for an organization. approach be to look forward and create fresh ways to meet customer Mobility indirectly enables the organization to scale up on operational efficiency. When an organization enables an application on the mobile needs? The solution is to have a transformational approach. Anand Syril platform, it resorts to STP for simplification of business process, 3rd party Associate Manager, Business Solutions Group – Insurance HCL Technologies Ltd 1 medium-19737/nielsen-monthly-time-spend-videojpg/Issue 3 | May – July 2012 18 19 Issue 3 | May – July 2012
  • 12. data interchange for minimal data It has been observed that customer experience as well as ease point throughout the policy life by customer and representative of Some examples of mobileentry and near real time data updates, of doing business. providing user-friendly and easy insurance carrier. These solutions development by major insurancewhich in turn improve operational PC insurers have a higher ways of dealing with transactions. will also lead to better customer carriers provide insights into theefficiency. adoption rate and are looking for Improving Customer Examples include mobile solutions experience. shape of things to come in the near IT vendors for development of Experience for FNOL, bill payment, Point of future.Mobility: Several steps mobility solutions. In comparison, Customer Experience is expected Sales (iPad). Management Dashboards: Mobilityahead of online many Life and Annuities customers to be a key focus area and would Solutions on iPad have made it • Metlife solutions for Brokers: have just initiated the mobility Multi-channel Integration: The simpler for senior management The solution focuses on the sales strongly influence revenue growth of journey and are looking for partners focus of multi-channel integrations of insurance companies to view part of the lifecycle and enables insurance companies. Key mobility in defining the mobility roadmap is to create a ‘Wow!’ factor by enterprise performance. Also, brokers to look at Metlife products initiatives identified by insurance ile? Mob sines s enabling seamless transition from analytics on mobile has made it before meeting the customer. Why oing bu nce companies to boost their growth are: fd erie one channel (e.g. web portal, chat, easier for the management team to This enables brokers in providing eo xp and prioritization of the business Eas tomer E phone etc) to another (e.g. smart take decisions on their strategies. accurate and detailed information Cus Mobility Brand Value: Considering the focus areas. phones, iPad). For example, during to the customer and improves the growth in the usage of smart phones, mobility solutions designed a conversation with customer or Examples: Mobility in Life ease of doing business. Online A Celenet report says that 12% and Annuity Insurance of the top 100 life/ annuity/ with excellent GUIs have resulted in prospect through mobility channel, Call Center/ health insurers in North America better lead generation for insurance insurer should be able to provide Mobility for Life and Annuity Service Representative companies. Majority of the mobility a personalized service leveraging Variable Annuity Educator have implemented applications Insurance is still evolving and on mobile devices for their sales solutions provide information, social media and information shared insurance companies are focusing on force. Of those, the majority of the aligned to the insurer’s product previously through other channels. coming up with a long-term strategy applications are non-transactional. offering, which can improve the to increase customer experience and Mobile applications for life insurance ‘pull’ factor and brand ‘recall’. Ease of doing business improve ease of doing business.Figure 2 producers were categorized by Mobility has armed various Value Added Services: This is Based on analysis of multiple carriers, transactional (the producer can stakeholders in the insurance industry one of the dominant trends where the focus of the US Life and AnnuityBut the question that CxOs must input data and have it transmitted with advanced tools available ‘any insurers are developing mobility industry is on value added apps andanswer is, “How quickly can I to the company network), marketing time’ and at ‘any location’. Key solutions such as Financial Need Sales Force Automation (see Figureensure that online and mobility don’t (brochure ware and videos), or mobility initiatives identified by Analysis, agent locator supported by 3 for current focus areas for Life andcontinue to function in silos within informational (training materials, insurance companies to improve augmented reality, property related Annuity Insurance)the organization.” email access, or calendars). Although ease of doing business are: information and also giving them mobile applications are not fully Mobility in Life and Annuity an option to connect with customer Sales force Automation: Mobility implemented in their businesses, Insurance service for further information. The solutions on smart phones and tabletsMobility: Driving Customer nearly 50% are investigating their next step would involve integrating have enabled agents to manage leads,Experience and ease of use. Priorities and development areas this into a ‘multi-channel’ solution. view product information, scheduledoing business The key focus areas of insurance follow-up appointments on the road Customer Convenience: The focusInsurance carriers have already companies in developing mobility while traveling between customer of these initiatives is to increaseembarked on the mobility journey. solutions include improving meetings. The next step is to ensure customer experience at every touchThe adoption levels are higher in US that agents can make a personalizedcompared to Europe and APAC and pitch for the customer leveragingare expected to grow at a significant social media and mobility solutions.rate across the globe. This is visible Face-to-Face Customer Interactions:through the increase in the requests There is a high focus for understandingreceived by HCL from insurance the needs of the customers andcompanies, including Property suggesting the right set of products.and Casualty Insurance (General Mobility solutions enable agents/Insurance) and Life and Annuity sales teams to walk-through productInsurance for development of details, along with the customer,mobility solutions. at any location as well as facilitates instant video conference between Figure 3Issue 3 | May – July 2012 20 21 Issue 3 | May – July 2012
  • 13. Prudential solution for End Customers: The application focuses on Some examples of mobile Allstate Insurance for End Customers: The solution for end customer addresses the complete life cycle - Sales,marketing (branding). It enables customers to understand their retirement development by major insurance Policy and Billing as well as Claims.needs and create a ‘pull’ towards Prudential products. carriers provide insights into the shape of things to come in the near Retirement Income Calculator future. Integrated Mobility Solutions Progressive Insurance solution for End Customers: The solution for end customer addresses the complete life cycle - Sales, Policy and Billing as well as Claims. Quote, Claim and Agent Locator Don’t play “follow the leader” Table 1 shows the traditional approach Vs a transformational approach that insurers can resort to, in Mobile opportunities for insurers are growing. A majorityExamples: Mobility in the Property Casualty Insurance of the insurers have played a catch-up strategy trying to order to create a differentiation in the market. Let’s take replicate the early adopters. However, this is a narrow a simple instance in policy servicing: the traditional focusProperty Casualty Insurers have a higher level of maturity in creating a strategic approach. To create a compelling mobile value of an insurer, who is embarking on a mobility journeymobility strategy compared to Life and Annuity carriers. The key focus area proposition, insurers have to redefine the customer for policy servicing, would be on solutions such as ‘alertsfor PC insurers are customer centric solutions, while Life and Annuity experience and define a mutually reinforcing relationship for policy renewal’, ‘policy modifications’ etc. Whereasinsurers have a higher focus on mobility solutions for agents, employees and between insurer and consumer. a transformational approach would be to proactivelybrokers. monitor a driver’s performance (auto insurance) and Insurers currently are focused on using mobility as a complementary channel to their existing online presence. provide statistics comparing him/ her against safeMany of the top US insurers provide single integrated solutions across the But to create a difference and not to get lost in the ~10mn drivers and the rewards available in the form of premiumlifecycle - Sales, Policy and Billing, Claims - of the customer (see Figure 4 for apps world, it is important to sensitize the customers/ discounts for safe driving.current focus areas for PC Insurance) prospects. To be transformational, insurers can use theMobility in Property Casualty Insurance Mobile Channel as a source of information to provide Mobility Strategy Approach Vs Apps User value added services. The proximity to the consumerPriorities and development areas through mobility has to be leveraged to invoke interest among consumers. For instance, creating a mobile simulation game to understand the needs and views of customers before launching a new product. Value Chain Traditional Transformational Product • Ideation Simulation/Game driven Development • Small sample size driven Co-development of product features Sales • Emotion based and need based Distribution • Inside out approach Reactive • Customers are Less price sensitive, as suggestions are behavior based Policy • Proactive behavior analysis for • Reactive – problem focused Servicing improved NPS, cross-sell/up-sell, • Limited relationship opportunity customer life time value • Mass announcements (eg. Claims Catastrophe) Management • Claims initiation tracking • Accelerated claims settlement (eg. mcheck) Customer • Basic Consumer details Insight • Limited Research details • Behavioral emotional insightsFigure 4 Table 1 Figure 5Issue 3 | May – July 2012 22 23 Issue 3 | May – July 2012
  • 14. By plotting the mobility solutionson the Approach Vs Apps User (see On-boarding the Mobilefigure 5) it is clear to see the solutionsthat fall under the emerging areasi.e. transformational. A solutionthat is transformational and has theconsumer as the major influencer Channel in the context ofwill find it positioned in the top rightquadrant or the “forward looking”quadrant. Mobility solutions thatimprove consumer convenience arepositioned in the top left quadrant. multi-channel integrationThe bottom half is focused on “easeof doing business” for the insurer.For instance, automakers can lookat integrating mobile and in-carsystem for seamless interaction, About the author:which could help in vehicle tracking improve efficiency and effectivenessand understanding driving behavior. of agency force and enhance Anand Syril: Anand Syril isSuch integrations with appropriate customer experience. The insurer is Associate Manager, Businessexternal entities can help in capturing looking at providing customers and Solutions Group – Insurance,behavioral/ emotional details and agents with near real time access HCL Technologies Ltd. Anandcreate customer inclusivity. to information in order to improve has 5+ years of rich experience experience, help the agents andA closer look at the traditional and in the IT industry focused customers interact with underwriterstransformational approach will through video chat and also provide on insurance. He holds anshow that the strategy is not limited interactive product suggestions MBA from SP Jain Center ofto mobile, but can be extended to based on customer preferences. Management and is LOMAonline presence as well. For instance, product ideation throughcrowd sourcing or simulation based Some interesting transformational Vishal Mair: Vishal Mair apps in the insurance space is Senior Manager, Businessdevelopment can be extended to webas well through social media. Insurer App Solutions Group – Insurance, HCL Technologies Ltd.The “transformational” approachwill make insurers revisit their online State Farm Driving log maintenance, Vishal’s responsibilities include Driver experience videos understanding insurance marketeStrategy and their mStrategy. Most scores; initiatingof the insurers have the mobile trends, pre-sales as well as and tracking claims;strategy complementing the online, documenting witness; identifying new propositionswhereas a concomitant strategy for driving tips; discount for for HCL customers. Prior tomobile and online is required for a positive driving behavior joining HCL, he has worked intransformational approach. the US and India for Global 500 Generali Real time traffic updates T (Italy) insurance customers focusing on he Mobile Channel has the potential to revolutionizeHCL: App-solutely Positive managing business requirements Liberty Roadside assistance customer experience in Retail Banking, provided banksHCL is assisting insurers position for IT implementation as well Mutual simulator game; voice approach “going mobile” in a strategic and structured manner.themselves in the transformational notes; submitting policy as improving collaborationquadrant. HCL is currently involved between business and IT teams. Further, the approach must have cross channel consistency documentin the development of mobility His qualifications include MBA at its core. The task can be overwhelming, but failure would Sudarshan PTsolutions for a leading Life and GEICO “How To” instructions from XLRI and ‘Associate mean increased customer dissatisfaction – something that no Senior Solutions ConsultantAnnuity insurer with more than 3.8 for auto HCL Technologies Ltd in Insurance Services’ from bank can risk.million policyholders. The insurer AXA Shoot Point damage, AICPCU-IIA (USA).has embarked on a mobile strategy to pre-declare claimIssue 3 | May – July 2012 24 25 Issue 3 | May – July 2012
  • 15. As global economies try to emerge There are multiple interlinked customer experience is “Channels”. its proliferation is the Mobile Channelfrom the shadows of recession, factors that play a part in the delivery Further, the delivery of sales and (includes phones and tablets). Thewhat seems certain is the dent of superior customer experience. service transactions in a consistent growth is so fast that a bank inin consumer confidence and the These factors require dynamic and manner across multiple channels,general wane of optimism among flexible technology architecture to such as Branch, ATM, Online and Japan has become the world’s firstglobal consumers. According to an sustain ubiquitous and “always on” Call Centers, even while adopting mobile only bank – it started outEY Global Consumer Banking “Excellent” category (score 85). Research by American Banker customer interactions and seamless and inducting newer channels such in 2008 and had added 1 millionSurvey, conducted in 2011, 44% of The banking industry had an average (Figure 2) shows that each year straight through processing in a real as mobile and social media is of customers by 2010, a CAGR ofcustomers said that their confidence Customer Experience Index score banks falling in the top quartile of time environment. paramount importance. nearly 1000%!in the Banking industry has declined. of 70 and came in 6th in a list of customer satisfaction scores can 13 industries. It also merits mention expect approximately US$ 43 million Amongst the most crucial The channel which has beenCustomer experience brings in components in delivering superior receiving increasing attention due toa sustainable differentiator in an that though retail topped the charts in additional purchases and avoid upatmosphere of low confidence, with the highest average Customer to US$ 51 million in lost business.and is thus the tune being chanted Experience score, the individual Those in the bottom quartile ofby organizations across the world. company top spot was secured by customer satisfaction scores can Business Case: The Mobile Channel in a multi channel contextOrganizations will try to retain and the US based diversified Financial suffer up to US$ 148 million inacquire customers as well as win Services company USAA! lost revenue and failed opportunitytheir confidence, since customer combined. This is a US$ 242 million What is Customer difference between customerexperience is a factor that is seen Experience in Retail Bankingas “controllable” in light of other satisfaction leaders and laggards. and why is it so important?“extraneous” factors such as Why is delivering consistentlyeconomy and government policy. Customer experience may be great service so important? defined as “The quality and natureA great vehicle that has cropped up of every interaction that a customerin recent years to enhance customer or prospect has with the bank, asexperience is “mobile” technology. measured by defined metrics, and asThe multitude of smartphones and supported by the enabling pillars oftablets with touch technologies, appropriate strategy, organization,has taken customer experience to a architecture and processes”whole new level that is limited onlyby imagination! Figure 1 highlights some of the pressures being faced by banksWith so much hype surrounding the worldwide and how customerMobile Channel, the biggest mistake experience is emerging as a key leverthat banks can make is to rush into Figure 2: Why Customer Experience matters in to deliver competitive advantage. Retail Banking (Source: American Banker)on-boarding the Mobile Channelwithout a strategic assessment,especially in the context of customerexperience and multi channelintegration.Customer Experience inRetail BankingA recent Forrester CustomerExperience Index report showed thatit is becoming increasingly difficultto please customers. Out of a baseof 160 large North American brandsscored, only 3% had a customer Figure 1: The Retail Banking Customer Experience contextexperience index score in theIssue 3 | May – July 2012 26 27 Issue 3 | May – July 2012
  • 16. The Mobile Channel (see Business • What kind of user experience is relevant and need to be understood services to be offered via mobile” point of contact for the customer. need to view the introduction ofCase: The Mobile Channel in a multi expected? from a banking “possibilities” could be a linked activity. There are aspects that banks must the Mobile Channel from a holisticchannel context) is fast emerging as a perspective. This will set the tone and consider while re-structuring their viewpoint and how it would needvital cog in a successful multi channel • What functions and features context for a grounded yet forward Agility Flexibility: Banks which Organizations and Processes for the support of non-electronicstrategy. And expectations are high should we offer? looking mobile strategy and will help have put together a strategy and then mobile banking: channel organization and processtoo – as per an EFMA-McKinsey decide on aspects such as “Triple taken an inordinate period of time to counterparts. • What security considerations should deliver will find their plans becoming An “inside-out” view: The MobileMobile Banking Survey 2011, we make? play” (SMS, WAP and Mobile App.).70% of the respondents “Strongly infeasible or antiquated in the wake of Channel need not necessitate a Architecture agreed” that Mobile Banking will • Can we increase market share Understanding the business drivers ever changing customer preferences radically different organization Functionalityfundamentally change Retail Banking and revenue through a mobile and the business case: This requires and technology innovation. The key structure. For example, if the bank an “outside-in” view, wherein the is to inject a degree of agility and is already structured in a customer This facet acts as the “connector”within the next 5-10 years. offering? between Business and Technology. bank understands its customer flexibility in mobile strategies. centric, multi channel orientedSo, what is the framework a bank • How do we cater to the multiplicity segments, customer preferences and manner, then the on-boarding of the The key aspects that are coveredcan employ to ensure that the on- of device types? competitive pressures in the context Innovation: For banks to be Mobile Channel can be viewed as an within this include:boarding of the Mobile Channel is of mobility and channel integration. successful in mobility, they must extension of the direct online/web • How can the mobile complement imbibe the culture of innovation and Business Reference Architecture:treated as a strategic initiative and A clear business case and possible channel while incorporating required Business Reference Architectureis attuned to the larger schemes the other channels? ROI scenarios need to be formalized be able to ride the mobile technology adjustments to job descriptions wave. The opportunities arising from provides a template response to keyof multi channel integration and • How can we measure customer to understand the “real” need and and service flows for “mobile only business drivers as well as target statecustomer experience? benefits of going mobile. Banks the mobile revolution seem limitless. features”. The bank needs an “inside- experience in a Mobile Channel However, an Apple or a Samsung mobile requirements. For example, context? must be willing to wait it out to get out” view for this, to understand its the bank would need to define theThe “S-O-A-P” framework the desired results – a myopic view can only provide the device – it is left own strengths and to decide where to the banks to leverage the inherent spaces within which its MobileWith the need for a seamless • How can we differentiate ourselves of ROI will not work in mobile it needs to leverage the expertise of Channel play will be. This would in an increasingly commoditized banking. capabilities of the device to bring partners and vendors.experience across channels, banks value to the customers. If banks fail include areas such as Mobile Banking,might be tempted to offer all services market? Mobile payments, Value added Alignment to an overall customer to realize this they may be trumped Organization Champion: The mobileon all channels. Needless to say, • How can we maintain experience strategy backed by a vision: by rapidly evolving non-traditional initiative must have a champion, who, services, Mobile campaigns, Mobilethis is not feasible and is also not interoperability and seamless A bank’s mobile strategy needs to be rivals such as Google and Paypal! ideally should be in Top/ Senior POS etc. For the incorporation ofrequired. What is more pertinent is integration with other channels? aligned with its overall multi channel Management from Business (with a the Mobile Channel, the existingto understand the context and need approach and customer experience Strengthen industry ties and leverage Technology counterpart) and who Business Reference Architecturefor a mobile channel and customize • Will reduced costs necessarily lead philosophy. Mobility needs to be developments: The mobile banking will need to be tweaked, in order can influence execution both directlyservices for it while ensuring cross- to higher profits? viewed as a strategic differentiator. ecosystem is significantly different to model Mobile Channel business and consistency. from traditional banking models. The What are the key business “Executable” strategy: Identifying ecosystem includes other participants Don’t forget the non-electronicThe “S-O-A-P” (Strategy-Organization facets of a mobile banking strategic themes supported by such as payment networks, non- channels: Amidst all the hypeProcess-Architecture Functionality- strategy? interlinked activity clusters will help traditional mobile only banks, mobile surrounding the Mobile Channel, itPlan) framework captures the interlinked bridge the gap between mobile network operators, mobile device is important for banks not to forgetfacets required to successfully on-board A good understanding of Mobile device capabilities: Factors such as strategy and execution. As an manufacturers and new generation that the Mobile Channel should bethe Mobile Channel: example, “Highest degree of self organizations such as Google and a part of a multi channel ecosystem. Mobile device features, real estate,Strategy technology components, roadmaps, service” could be a mobile strategy Paypal. Banks must acknowledge this Cross channel harmony in terms of market players and portability are all theme, and “All feasible information complex matrix and decide which organization structure and processesBanks are going through a period players they can partner with and is to be promoted. For example,of uncertainty in building a mobile whom they should compete against. a service that is being introducedstrategy. This is due to the rapid pace on the Mobile Channel, might onlyof change in mobile technology and Organization Process form a part of a larger service andinnovation. Banks have realized that customers subsequent steps in the process will choose interaction channels might need to be completed in aBanks are faced with a plethora branch. Similarly, a sales lead mightof questions with no seemingly for different services, and, in the “customer in control” context, there arise from the Branch Channel butstraightforward answer when choosing could get converted via the Mobileto go mobile: is no single channel organization which can claim to be a single Channel. These examples stress theIssue 3 | May – July 2012 28 29 Issue 3 | May – July 2012
  • 17. requirements, while retaining the usability, defined response times and • Extensibility of web/ online Security: Security is of utmostchannel integration flavor. It is matching competitor banks’ mobile reference architecture importance to increase adoptioncrucial for the Business Reference application functionalities. of the Mobile Channel in banking.Architecture to be forward looking, • Reference for to-be-supported non- Some of the key security concernswhile leveraging existing reference Listed below are some key features functional requirements (multiple revolve around:architecture features. of a mobile reference architecture: mobile platforms, OS, NFC and service types such as SMS, WAP and • Device ownership and securityTechnology Reference Architecture: • Addresses current requirements Apps).This represents the technology while being scalable for future • Network and access securityresponse to the business context of requirements Functions: Banks must decide the matrix of functions they intend to • Application securityMobile Channel introduction and is • Appropriate mobile securitytypically aligned with the Business offer via the Mobile Channel. This • Fraud framework to ensure customer must be done in the context of multiReference Architecture to encompass protectionthe following: channel service delivery and driven • Customer awareness and • Aligned to overarching enterprise by the mobile strategy as well as knowledge• An end to end view of the business and technology reference • A detailed action plan that considers may seem a daunting task, the sheer architecture The Technology Reference conceptual design framework architectures. While it is difficult dependencies and constraints in volumes in the uptake of mobile • Support for near real time to hazard a guess on how exactly Architecture should consider the context of existing channel devices and abundant possibilities• A view of the mobile channel in the capabilities mobile functionality will pan out in security implications arising from delivery and “business as usual” associated with mobile banking will context of other bank architecture the future, it is clear that there will current and forward looking business ensure that banks leave no stone components • Ecosystem (internal bank systems, requirements and appropriately • Have sufficient checkpoints/ unturned in succeeding at this game! be “mobile only” features and other operators, payment networks etc) address the same, thereby laying the controls to ensure that there• A link between business architecture features which could be integrated integration platform for technology design and is constant resonance with the and technology realization with other delivery channels (see product evaluation. market place thereby avoiding • Support for multi language, Figure 3: Retail Banking Mobile efforts spent on antiquated ideas• A reference point to model and currency, brand and entities Features – Maturity vs. Integration). Plan design detailed functional and • A holistic technology delivery plan process flows/requirements As with any strategic initiative, is vital – this will include, among a detailed execution plan is as other aspects, the establishment of• A basis to consider and evaluate important (if not more important) a focus group within the bank, and, solution options than the strategy itself. It is critical the selection of a suitable productThe evolution of a reference that the mobile banking initiative and implementation partner in linearchitecture involving the Mobile be treated as a “business change” with the business requirementsChannel is a very involved exercise program as opposed to being treated and to augment the bank’s own About the author:and needs to be approached as a technology change program. team where requireddiligently as it sets the framework Some key aspects to be considered Sudarshan PT is a Senior and incorporated in the mobile • Ensure that the plan is metrics Solutions Consultant at HCLwithin which the delivery of services banking plan are: oriented – apart from program with over 11 years of experiencevia the Mobile Channel will occur. delivery metrics, care should be in the IT industry, focusing onThis involves decomposition of • Governance structure with senior/ taken to incorporate business the BFS domain. He has broadthe business pain points/ mobile top level ownership and steering metrics to measure the success ranging experience coveringrequirements and translation of the committee representation from of mobile banking, in the context program management, businesssame into technology requirements/ Business and Technology of larger organization strategies/ analysis consulting, productresponses. For example, let us • Detailed communication and themes such as a migration to ideation implementationassume that one of the business socialization plan covering internal self service, improved channel and solution architecting inrequirements at a multi channel and external stakeholders integration and customer the Banking channels, CRM,level is to ensure revenue protection experience lending, Core banking, Centraland customer retention. Thecorresponding mobile technology • Phased approach - ensure feature bank reporting and credit data bundles are delivered to customers Banks have quite a few aspects torequirements/implications could consider in the evolving mobile management areas.include ease of introducing new in increments and at regular time Figure 3: Retail Banking Mobile Features – Maturity vs. Integration intervals banking space. While going mobilefeatures, platform scalability, intuitiveIssue 3 | May – July 2012 30 31 Issue 3 | May – July 2012
  • 18. Mobile Business Intelligence access to BI within 6-12 months”. (BI) – Then and Now Clearly, that did not happen. The Mobile BI has been around for a user interfaces were too clunky and long time. Starting in the late-1990s, connection speeds were too slow. the first SMS-enabled telephones Interest in mobile BI did grow became mainstream in Europe, slowly over the decade, notably as with basic broadcasting of the latest RIM Blackberry devices became figures available in your BI system ubiquitous; but it took the wide (by email, pager, etc.). By the end availability of 3G wireless and of the decade, the first phones with modern smartphones/tablets to WAP browsers were used to provide provide truly usable interfaces. interactive BI, quickly followed by Finally, a decade and a half after the connected PDAs with basic HTML first tentative steps, everybody seems browsers. to agree that 2012 is the year that Mobile Business Intelligence (BI) Here’s what SAP BusinessObjects will really take off. looked like on a Compaq PDA running Windows Pocket IE in 2001 When we started researching the Mobile BI phenomenon over a year ago, we knew we were on to Business something important, but it wasn’t obvious where the journey would take us. Intelligence To be clear, we believe that we are in the midst of a profound shift toward Mobile BI (and mobile computing). Comes of Age We believe this paradigm shift will affect everyone and have as much impact as the Internet did, over time. The latest feedback from our customers and partners shows strong evidence that Mobile BI is T he broad experience of changing the way people perceive BI. SAP suggests that Mobile Although current adoption, plans and perceptions may vary, the Mobile BI Business Intelligence is finally a revolution is a global phenomenon reality. There is ample evidence - across all geographies, industries, that businesses are seeing better Venkatesh Vaidyanathan functions and organization sizes. options and adoption could be VP of Product Management SAP Labs India Pvt Ltd There are now more choices for faster. There is also recognition of organizations than in the past. More the challenges ahead along with and better mobile platform options possible solutions. As experts, The arrival of all these new mobile have emerged – with an abundance SAP’s Venkatesh Vaidyanathan and devices was supposed to usher in of new tablets. And SAP and other a new dawn of mobile analytics. A Viswanathan Ramakrishnan discuss software vendors have invested survey carried out in 2001 indicated the challenges and the solutions to Viswanathan Ramakrishnan “5-25% of companies already heavily in mobile strategy, offering deploying Mobile BI. Product Manager for Mobile Analytics a much more complete menu of SAP Labs India Pvt Ltd provide or will provide wireless mobile options.Issue 3 | May – July 2012 32 33 Issue 3 | May – July 2012
  • 19. breaches remains at the forefront of and let any user get personalized Get Analysis and Critical enable users to update information. industry challenges. information from their mobile Alerts on the Go By triggering actions from your device of choice. Management and mobile device based on calls, text Nevertheless, the Internet is an apt information workers can stay up-to- SAP BusinessObjects Mobile allows messages, or e-mail messages, you analogy. How do we work differently date – helping to shorten sales cycles your remote workforce to view can enable quick decision making. For now than before the Internet and increase customer satisfaction. metrics and documents from SAP example, you can be alerted through “revolution”? What we take for BusinessObjects Web Intelligence® your mobile device that a certain KPI granted is our ability to effortlessly With SAP BusinessObjects Mobile, or SAP Crystal Reports® software has exceeded a threshold, get secure find, create and share information users can quickly search for and directly on their wireless devices and authentication for your access to the and to readily collaborate with others find the information they need –Barriers to Rollout Android. The advantage is optimal in real time. The same BI content corporate network, and view the – but was impossible before it. drilling down and interacting with ease-of-use and access to the you work with every day on the details related to the event. You then familiar reports and KPIs andNot every organization is hitting the capabilities of the mobile device. Likewise, what will be the true impact desktop is rendered and optimized choose to take action on this event. taking immediate action. Becausefast-forward button with Mobile BI. The disadvantage is the cost and of Mobile BI? Will information and specifically for handheld devices. the software fully leverages theHere are the main concerns that we complexity of supporting multiple insight follow us wherever we go and This means even new business users The software has intuitive, smart SAP BusinessObjects BI platformhave heard from our customers: platforms and different user whenever we need it? Will it change can access, navigate, and analyze search functionality that lets you for security and other services, interfaces. the way that we work, our ability to familiar reports with no special find the information you need byDeployment Challenges: you can trust that the transmitted respond more quickly and to align training required. The software uses keyword and can give you complete HTML 5: This involves accessing information remains secure andSecurity and administration: towards a common purpose? This skillful visual interfaces to render the access to your enterprise information Mobile BI through a Web browser. that the software can be centrallyOrganizations are concerned about notion of pervasiveness has always reports and critical KPIs you need – all through your mobile device. The advantage is that you do not managed and getting outside the organization, been the mission of BI, which may in a clear, understandable format. You can use SAP BusinessObjects worry about the device being used Business users can quickly drill downand the administration overhead now finally be realized with the Web Intelligence or SAP Crystal to access the data – at least in through charts and tables to viewgenerated by managing BI on a catalyst of mobile computing. Reports to configure everything theory. In reality, the disadvantage detailed reports and can interactplethora of mobile devices. A is that browser-based interfaces are you need to see on your device. For So what should organizations do with metrics and analytics to quicklymobile device management (MDM) generally far behind what is possible example, you can change prompts with this information? To quote retrieve information.platform like Sybase Afaria is key to using the native features. There are and notifications as well as customize Pasteur, “Luck favors the prepared”.successful deployment. high expectations that the proposed By setting alerts to time-critical reporting to meet your specific needs In this spirit, we must all prepare HTML5 standard will help – but for and embrace Mobile BI, or risk events based on KPI thresholds, and business role.Expectations-setting: An easyinterface does not always mean that it has not yet reached maturity as getting left behind. newly published reports or changes inthe data users want is readily available. things stand today. existing report data can be managed Deploy Quickly and SafelyNew opportunities mean new Introducing SAP Business by exception. SAP BusinessObjects Hybrid solution: Hybrid solutions Mobile sends necessary alerts to your SAP BusinessObjects Mobile can berequirements. Having the right data are enabled through mobile Objects Mobile deployed in days and the applicationfoundations with a robust, standard mobile device when action from enterprise platforms such as the downloaded in minutes onto a mobile  BI platform in place makes it easier SAP® BusinessObjects™ Mobile you is required, and the software Sybase Unwired Platform. You software is designed to deliver this provides you with access to powerful device. Users can be up and runningto react quickly to user expectations. create applications once, and then kind of critical information to your analytics – irrespective of whether quickly because you can reuse yourPlatform choices: This is generate different versions of the professionals, regardless of where you are online or not. Reports can be existing BI assets, such as metadataperhaps the biggest factor delaying application optimized for different they are located. By allowing your pushed onto the device or pulled by and security and administrationwidespread deployment. Just like the mobile platforms, including HTML. workforce to access key business the user, and they are stored on the policies. More important, you canoperating system wars of last few It’s an insurance measure against the intelligence data from the mobile device for ready access. So even if reuse the reports already builtdecades (remember IBM OS/2?), turbulent real-life world of changing devices they are already familiar you are on a flight and not connected with SAP BusinessObjects Webthere’s no one obvious platform to mobile platforms, but there is some with, the software helps you stay to a network, you can still review Intelligence and SAP Crystalstandardize on for rolling out mobile upfront investment. competitive in today’s globalized, your company’s critical BI data and Reports. The software is optimizedapplications. There are three main However, there are significant 24x7 business environment. stay productive. for viewing these reports, whichstrategies, all with pros and cons: risks and challenges along the way. reduces report development time. A proverbial “moving target” of View and Execute on Key Act on Decisions from YourTechnology Choices: In addition, ownership costs hardware and software standards Information from Your Mobile DeviceNative application: Many companies presents difficulties to both Mobile Device are reduced because SAP  prefer to write native mobile SAP BusinessObjects Mobile is a two- BusinessObjects Mobile uses your customers and suppliers alike. And, SAP BusinessObjects Mobile allowsapplications directly for iOS or the risk of privacy and security way application that can be set up to existing security methodologies – organizations to take BI on the roadIssue 3 | May – July 2012 34 35 Issue 3 | May – July 2012
  • 20. extending the trust and reliability Next Steps to knowledge workers whereverof the SAP BusinessObjects BI they are.” About the author:platform to the mobile environment. Gartner predicts that “by 2013, 15% Venkatesh Vaidyanathan is of BI deployments will combine BI, • According to Gartner, “by 2013, the VP of Product ManagementThis makes centrally managed and collaboration and social software into 33 percent of BI functionality at SAP for the Businessdeployed mobile content available decision-making environments”. In will be consumed via handheld Analytics team in Bangalore.24x7, while preserving high data other words, Mobile BI will become devices.” He has worked in the Businessquality and full audit control. You Intelligence area for the past 5 part of an “orchestrated” experience • A survey by analyst Howardcan transmit all content over the years, and works with teams towireless connection securely and that combines accessing data with Dresner indicates that BI has create new products in the BIefficiently using preconfigured acting on it. already become the third most domain. He is responsible forsettings to help improve the speed in-demand enterprise mobile the teams creating new productsof installation, with no additional 2012 Is the Year of Mobile BI application, behind only email and in Mobile and Predictivemanagement software required. It personal information management Analysis domain. Venkatesh has    can work with your existing mobile Here’s a taste of the mountain of apps such as calendars, and 68 a Master Degree in Computerdevice enterprise software to install research data that’s been generated percent of those surveyed rated Science from NIT Surathkal,remotely across your mobile user about Mobile BI in the last few Mobile BI as “critical” or “very and has been involved with In Memory and Mobility product development relatedbase in an integrated and manageable months: important,” up from 52 percent away. With Mobile BI and SAP HANA the possibilities are endless. to business intelligence, cluster year earlier. computing, high-performance Things that were not possible even on a desktop are now possible in the • Boris Evelson of Forrester says • A recent survey by Information computing and diagnosticsGain the Benefits of mobile devices because of the innovation in In-Memory technologies and Mobile BI will go mainstream this domains for over 20 years.a Connected, Mobile Mobility. year. “One needs to make decisions Week showed that 25 percentWorkforce when and where they need to be of organizations are planning to Viswanathan Ramakrishnan • User can instantly predict market trends and customer needs by analyzing made. Not ‘when I get back to the implement some form of BI this is a product manager for MobileSAP BusinessObjects Mobile puts volumes of data in memory Analytics at SAP. He has been office,’ which may be too late.” year.critical BI into the hands of the in the Business Intelligencebusiness users who need and can • Provide exactly the right offers and service levels to every customer because He also says that “professionals • Sixty-one percent of the domain for over 10 years, and isact on the information. It takes you have the information now in your hand must start evaluating and participants in a TDWI survey an expert on the SAP Businessyour organization to a new level of • Have continuously updated windows into future sales showing changes in prototyping Mobile BI platforms said that they expect users to Objects suite of products. Thepurpose and action. As a result, you real time and applications to make sure spend more time accessing BI SAP Mobile BI products havecan: that all key business processes and from mobile devices in the next 12 risen to the top of the charts• Make more informed decisions SAP and the Partner Network relevant information are available months. under his leadership. faster with immediate access to online and offline information SAP is not just focusing on delivering technology platform and industry specific applications, but is also closely working with several implementations• Improve customer relationships partners like HCL in making the world run better together. by providing sales and field reps with customer-centric data that can help them answer customers’ Hundreds of Apps Thousands of Apps questions promptly and accelerate issue resolution People Productivity Industry SAP-Built• Boost productivity by enabling 30+ Apps Lines of Business workers outside of the office to Process continue to work effectively People Productivity• Keep business processes running Process Analytics smoothly by monitoring KPIs Partner-Built 100+ Apps Analytics• Lower total cost of ownership through reuse of deployed BI Consumer Consumer reports and leveraging the security Today Planned and deployment functionality of your deployed BI platformIssue 3 | May – July 2012 36 37 Issue 3 | May – July 2012
  • 21. Mobile applications, content and and portfolio managers need to be Different Facets of services are the flavor of the season in the Financial Services industry. connected as well as their customers (if not better). The demand for Mobility: Studies have shown that currently customers spend over 7% of their enterprise mobile solutions is being led by consumer dynamics. Capital Markets time on mobiles in FS as compared to other channels. The numbers Almost all the Top 10 capital market this engagement translates to are firms have initiated to provide M quite large. eBay expects Gross research on mobile apps along obile services are growing. There appears to be Merchandize Value to surpass US$ with offline briefcase sections and no logical starting point to mobile development video. Each one is keen to ensure 8 billion as their customers make – and there really isn’t an end point. But, it is important mobile purchases in 20121. PayPal innovative use of mobile display for players in the capital markets to explore what their expects to see US$ 7 billion in space for information related to customers want, map it to the kind of device on which mobile payment volume in 20122. scrips, financial market research, and they are most likely to use the service and build it out. The Yankee Group predicts that analyst reports. Asset management HCL’s experience with customers provides important mobile transactions will grow from firms are provisioning their pointers for your own mobile initiative. US$ 241 billion in 2011 to over US$ customers with apps that provide 1 trillion by 2015, a CAGR of 56 %3. data to customers on malls, property, Berg Insight estimates that US$ 16 supermarkets and other assets under billion worth of international money their management. These include transfers will be received with mobile apps that identify property scanned phones in 2015. Similarly, US$ by a mobile camera, then using image 5.5 billion worth of international recognition and GPS location to Ajay Banwari remittances will be sent using provide data on the property. Manager, Business Solutions Group - mobile phones in 20154. And these Financial Services numbers don’t even consider the Mobility is bringing about disruption HCL Technologies Ltd in KYC form processing and pay- ease and convenience being offered by tablets that will further make real- ins for leading wealth managers like time mobile banking, insurance and Fidelity. Checks can be scanned on trading an area for innovation and a mobile and mailed for clearance, considerable transformation. reducing turn around time and reduced courier costs. Advisors are Users want to extract the most from being provided with applications to their devices. They also want to access portfolio performance charts ensure they have anytime-anywhere with detailed graphics while they are access to their investments and with customers to generate more the information that affects those meaningful interactions. investments. Naturally, where the two vectors bisect, the demand USAA recently reported that its for mobile apps and services in suite of mobile tools was used 127% capital markets is visibly strong. An more by members in 2011 than in outcome of this is advisors, analysts 2010 (for insights into how USAA 1 John Donahoe: “eBay Mobile GMV will surpass $8 Billion in 2012”, 2 PayPal Doubles Mobile Predictions for 2012 to $7 Billion, 2012-to-7-billion/ 3 Yankee Group Sees Global Mobile Transactions Exceeding $1 Trillion by 2015, 4 Mobile Money in Emerging Markets, download/?file=bi-mm1-ps.pdfIssue 3 | May – July 2012 38 39 Issue 3 | May – July 2012
  • 22. has leveraged HCL for mobile development, see ‘The HTML5 Revolution’ help investors and bankers traverse • Leverage other delivery channelselsewhere in this issue). The specific tool charting the highest rate of growth information with ease (see screen to create synergies with the self-was a banking app, USAA Deposit@Mobile, which recorded a 150% increase shot below). service model and utilize the fullin usage over 2010, with roughly 7.7 million checks totaling US$ 4.3 billion spectrum of device capabilitiesdeposited via the app. The company also saw a spike in apps that helpconsumers shop for a new vehicle and auto insurance, which was used some • Develop smart integration models2.5 million times5. that offer new segmentation and personalization capabilities for true one-to-one customer outreach based on customer preferences Mobility is about innovation There is a set of ideas that no player in the capital markets space can afford to ignore (and these have been discussed at length in this article). However, mobile services • HCL has developed a mutual fund HCL has been working with industry services for customers must span are in their infancy. There is room for application for Android phones leaders in financial services to design live information, decision-making experimentation and innovation. The that enables investors to track their and develop applications for mobile data, historic data and the ability to road to the future is being forged. investments through real-time (example: an app that transfers money initiate and close transactions. If Companies that create the roadmap NAV data rendered as charts. between two people/ entities using you are creating a roadmap for your and stay ahead of the curve will likely the latest Bump technology) that organization in the mobile space, also reap the benefits first. are delivered as Proof of Concepts ensure that the following are covered: Lessons from mobile to get a larger buy in. The goal is to enable our customers to capture an • Developing online trading front solutions and About the author:A flurry of activity – the with minimal infrastructure implementation untouched market segment. endshurry in Capital Markets to and application costs. The user Ajay Banwari is an alumnusgo mobile interface has been designed With HCL’s center of excellence in • Product distribution and exchange of IIIT Allahabad and FMS- The deep experience we are and engineered using HCL’s UI key operating systems like Android, solutions Delhi with over seven years gaining with creating solutions andHCL’s experience in the area is a Transformation framework. Apple OS etc, the Eli Lilly-HCL of experience in Telecom and implementations for companies • Pre-trade and Post Trade Riskreflection of the changes taking co-innovation lab in Singapore, and Financial Services put together. specializing in mobile trading and Management and Order Routingplace. The mobile implementations • HCL developed a mobile mortgage the ability to leverage our fast UI Before joining HCL, he was transactions points to one clear fact: Systemsfor HCL customers have been varied, app for a leading bank that transformation framework, we have heading the technology division customers want to revamp their webwith several projects pointing to the helped it reach a large segment 120 ready-to-use solutions/ IPs/ • Streaming technologies for real for one of the largest brokerage engine so that there is no separatefact that the FS industry is in a hurry of customers. The app enables tools and accelerators in the area of time quotes house in South India. Prior to core API written for mobile explore the possibilities and make customer to get mortgage eligibility mobility. this he worked with Wipro as athe best use of the emerging mobile with applicable interest rates. The Our team of experts with HTML5 • Collection and distribution of solution architect for data feedchannel: app also provides demographic experience has been enabling clients The HCL experience is crucial to fundamental company data design and implementation for a and sociological insights into the to engineer their application logic creating services rapidly and getting market data provider.• HCL has worked on devising First them into the market. The range of • Data warehousing of more than neighborhood of the property. The using HTML5 with a wrapper Notice of Loss (FNOL) and a 500 Gigabytes of data app saw over 10,000 downloads ensuring that apps don’t have to detailed evaluation project on test within a week of launch. be written for every device, OS tool assessment with a leading and form factor (for more details, insurer. • HCL has been working to develop see ‘The HTML5 Revolution’ tablet applications to provide real• HCL has developed a stock watch elsewhere in this issue). In addition, time market and research reports application that takes markets using HTML5, development and for an investment banker. The app to end customers on the move deployment times for our customers also has a simple dashboard to have come down.5 USAA Mobile App Usage Soars, 3 | May – July 2012 40 41 Issue 3 | May – July 2012
  • 23. Q: What is the current market Q: Will this be hype? Or will it scenario with respect to HTML5? change the web? The HTML5 Ganesh Venkatraman: The market GV: The largest growth in web usage is quite large, especially when it today is via the mobile. Naturally, comes to mobile development. HTML5 is going to make a big Revolution There are many frameworks being difference to mobile users. developed that support the idea It has taken a long time for HTML5 to of “Write once deploy anywhere”. come. Right now the major browsers So content providers don’t have to such as Google Chrome, Mozilla develop native applications for each Firefox, Opera and Apple Safari have device. started supporting HTML5 features. Q: What has been your experience Internet Explorer is catching up. The distance between desktop and with HTML5? the browser-based applications is GV: I initiated working with HTML5 shrinking. HTML5 makes it possible. about a year ago with one of our Q: Can you give examples of mobile key accounts, USAA. I have been development? personally training people across BFSI and beyond. We have a team GV: We have used HTML5 for point H TML5 unifies web development across devices. For example, an application developed using HTML5 of people, who are primarily mobile developers and architects, who are working in HTML5. Together of sale systems being developed for GELS, POCs for Prudential, LBG, Axa, Old Mutual and several others. and related technologies, can be easily we have done several eye-opener maintained with a single source code for Q: Is there anything in the industry sessions on this topic. today that can compare with addressing multiple devices such as tablets, Q: How does this get into the FS HTML5? If so, what and by whom? laptops, desktops, mobiles. Naturally, browser vendors are gravitating towards space? What will the usage be in the GV: Nothing at this point of time supporting HTML5. With HTML5, FS space? Do you have any clients compares to HTML5. Earlier, Flash content providers don’t have to spend that have shown an interest? How was the common platform for time and money creating apps for every was the POC developed? developing rich Internet applications OS, device and screen size. HTML5 has a GV: As I mentioned, USAA has that can run on mobile devices major impact on business models related already been experimenting with supporting Flash. However, Adobe to mobile content and mobile apps. is dropping the idea of supporting HTML5. We are developing great Think of it like this: if a smart browser Flash and iOS doesn’t support Flash. Eastern Singapore’s point of sale can personalize, customize and localize This is forcing a common solution in system completely in HTML5. There content, why develop a smart app? In the form of HTML5. In fact, Adobe are many POCs in the mobility and this QA Ganesh Venkatraman, Global released an HTML5 development Web space that use HTML5. tool last year called Adobe Edge that Technology Director, HCL, provides insights for the Financial Services industry Just consider the Canvas capabilities could be a solution to Apple’s Flash that is already responding to the new of HTML5 that enable very cool and problem. development. powerful visual representations and Q: What are the major features of effects. The FS space can benefit a lot HTML5? from the effortless rendering of data as graphs and charts (and games). GV: There are new tags that simplify HTML5 has many such features that the actual development. For example, can be leveraged by FS. Ganesh venkatraman Global Technology Director HCL Technologies LtdIssue 3 | May – July 2012 42 43 Issue 3 | May – July 2012
  • 24. Q: Mobility is betting on HTML5, Q: Is there a defined methodology More concrete strategies will need how far it is true? for migration? to focus on features such as offline, local storage etc. GV: There is no doubt about GV: Actually yes. There is an this. Webkit being the common advantage with HTML5. The Q: One last question. Any suggestion denominator for the rendering, browsers understand a page as on approaching skill development in the support for mobility, including HTML5 only by looking at the HTML5? tablets, is increasing. Currently Safari declaration tag !DOCTYPE. GV: There are three categories of is being supported in iPhone, iPad Replacing the existing declaration people that need to be trained on and laptop/ desktop environments. with the new tag is relatively easy HTML5 – developers, designers and Similarly the default browsers in instead of planning a complete testers. With the introduction of Android are already supporting migration. Another advantage is that new tags such as x-webkit-speech, most of the HTML5 features from even though the declaration says developers need to think more in the basic Webkit kernel. Javascript that the content should be treated terms mash-up as well as effective engines make the developer’s life as HTML5, the older versions really usage of the features. So, the first simpler by offering frameworks for ignore this declaration and they don’t group to focus is developers followed mobile devices. Without changing complain either. The next step is to by designers. This group needs to the architecture, the websites can identify the features that need to go understand the nuances of HTML5 load on all types of devices and and its power. With the help of CSS3 into the application. For example, render the same content making and the Javascript engines, it is very all form fields etc can be migrated. easy to develop complex UI screens. the user experience similar. Again, the migration can happen Testing them would require some Web applications can also be even page-by-page as nothing affects special knowledge on the underlying stored as local applications and the sequence and no two pages in technologies. So, training the testers be accessed without the direct use HTML are dependent on each other. will also be don’t need to use Javascript be a great boost for media-dense of the browsers (currentlycode for mundane activities such content providers. The features such iOS only).as “editable content”, “email as video-preload will help addressverification”, “number-only entries” performance issues. Q: Should businesses plan foretc. Local storage and offline access About the author: Developers will enjoy the clutter migration? Is there a business benefitare two other important features. free code where most of the form to it? Ganesh Venkatraman is thePlaying audio and video files without validations, formatting etc are Global Technology Directora third party plugin, voice to text already built into the browsers that GV: Regardless of the immediate at HCL. He has 21 years offor input fields, regex support in supports HTML5. In other words, benefit in adopting HTML5, the experience in IT and has playedvalidations are other features that development time can also come point is that it is inevitable. It’s not roles in the areas of Enterpriseneed to be mentioned. But, of special down. “Should I adopt HTML5?” The solution architecture, Systemsinterest to the FS space is the fact that correct question is, “When should I integration, Service OrientedHTML5 has many improvements in Architecture and currentlyform handling. adopt HTML5?” handles technology solutions Local storage will divert some of the and emerging technologiesQ: What are the business impacts Businesses have to be prepared mundane calculations to client side such as mobility for bankingdue to HTML5? to leverage the new platform. It is with the help of Javascript. Coupled and insurance in HCL. HeGV: As mentioned earlier, the plug- with the offline feature, HTML5 essential to create a roadmap for was instrumental in setting upin dependencies are shrinking with based systems will greatly improve HTML5 adoption now, especially for the mobility group and thethe introduction of HTML5. Mainly, the availability even in remote places new application development. innovation labs for support for HTML5 will where Internet connectivity is scarce.Issue 3 | May – July 2012 44 45 Issue 3 | May – July 2012
  • 25. Singapore continues to build upon its reputation as the Asian hub for MERLIN: Information and Communication Technology (ICT). Singapore encourages innovation today by Nerve Centre of providing a conducive environment for knowledge growth and by extending strong Government Mobility Innovation support towards innovative ventures. This is one of the key drivers for HCL’s decision to establish its global enterprise mobility lab in Singapore. to global market, MERLIN lab is mobility solutions as well as The Singapore Government’s ideally positioned to deliver superior operations and management. Economic Development Board consumer experience oriented IPs, (EDB) together with our Vice- apps and solutions to enterprises. This lab promotes a ‘Co-Innovation Chairman and CEO Vineet Nayar model’ through which the lab can inaugurated the Global Enterprise Since inception, MERLIN Lab serve as a sandpit of innovation for Mobile Laboratory called MERLIN has started becoming an asset for businesses; providing access to best (acronym for Mobility Experiences customers who are keen on building brains and leveraging the partnership Ready to Lead business Innovation) a mobile presence. Because the eco-system to offer differentiated to spearhead HCL’s global research Lab focuses on incubating and mobility solutions. Solutions for a and development efforts towards integrating mobility together with wide gamut of industry verticals enterprise mobile solutions. other disruptive technologies like Big and specific financial sector areas Data, Cloud, Social Listening etc., it like retail banking, private wealth Located in HCL Singapore’s offers groundbreaking concepts and management, corporate banking and Jurong facility, MERLIN lab solutions for industry verticals such capital markets are focused here. has been designed to exploit the as Financial Services, healthcare etc. Driving some of the Global mobility advantages of being in a vibrant initiatives for HCL’s FS customers, nation like Singapore. With a strong More than 160 CxOs have visited MERLIN lab provides a test bed talent acquisition process, the lab the lab that now boasts of 45 for enterprises to explore latest today boasts of a multicultural, POCs. Visitors are invariably struck technologies in the field of mobility. multilingual talent base from some by the cool concepts that are being of the best universities across the developed by the young team at region to build on EDB’s vision of MERLIN. a lively and innovation led mobile ecosystem. Not surprisingly, the S The Singapore Government and About the author: ingapore has established itself as the hub of Information lab has employees from over nine HCL strongly believe that for Subbaraman Ramaswamy Communication Technology given its tech-savviness nationalities enabling it to tap into a excellence in enterprise mobile heads Enterprise Mobility and an environment that encourages and fosters innovation variety of cultures and talent pools. applications strong leadership in for HCL APAC-MEA. With coupled with entrepreneurial thinking and a strong mechanism By leveraging its mobility framework/ product engineering, a laser-focus over 18 years of experience for IP protection. HCL, in collaboration with EDB (Economic accelerators to help organizations on consumer experience and an in the industry, he has been Development Board), has recently set up a regional mobile create their mobility strategies and entrepreneurial ecosystem of clients, responsible for setting up the innovation lab called MERLIN (Mobility Experiences Ready business cases, MERLIN lab offers partners and developers that sustains Global Mobility and Innovation to Lead Business Innovation). This lab provides Enterprise a unique value proposition to its the innovation momentum are Lab for HCL in Singapore. He Customers with access to cutting-edge mobile innovation customers. Coupled with strong necessary. Setup with this vision, focuses on driving the adoption concepts that can be leveraged to gain competitive advantage product engineering DNA in micro- MERLIN lab today has helped of disruptive technologies in Ramaswamy Subbaraman HCL create a niche environment through differentiation. Since inception this lab has been Regional Sales Director, Head of verticals like Banking, Healthcare, enterprises across the region. Co-Innovation Enterprise Mobility Travel Transport, Retail, Media that supports the development garnering attention from customers, analysts and CEOs (APAC-MEA), HCL Technologies Ltd. and implementation of enterprise Entertainment and exposure worldwide.Issue 3 | May – July 2012 46 47 Issue 3 | May – July 2012
  • 26. A book was meant to be a few Analytics for Research and analytics with hundred pages in size. A desktop was a difference: the customer meant to offer endless possibilities view premium mobile to research, create, refine, store, consume and distribute content. But Current methods of disseminating mobile devices, it would appear, are financial information are based services meant for the quick consumption on traditional time frames – say of customized content. The form every day or every week. However, factor is ideal for brief interactions investors have far more sophisticated that are required for immediate needs than the general reports that A s we move into a 24X7, anytime, anywhere lifestyle, the need to deliver sophisticated, decision-enabling content will become more urgent. decision-making: limited screen size, multi-media enabled, incredible portability, powerful computing the industry has been delivering so far. Mobility solutions can change that. The shift is quite dramatic: Mobile devices are handy for the delivery of such capability, always connected. In the 1. Customers get reports that are content that needs to be brief and easy to act on. investment world, where split second customized Analysts will find themselves gravitating towards decisions can make a difference, they creating content specifically for mobile devices, open up new avenues for investment 2. Customers get reports that are in helping their clients make quick trading decisions banks to service their customers. real-time based on customized reports. There is no need for investment 3. Customers get reports and bankers to send massive financial notifications based on customizable reports for their customers to and pre-set parameters digest. Retail customer needs for information are very different. Retail 4. Customers can access a variety investor would just like to have the of tools anywhere, anytime to investment opinion, comparisons enhance decision-making through Balachandran Ponnusamy with opinions from various sources, interactive reports Practice Leader - SAP Business Objects,HCL AXON current market performance, highlights 5. Customers can seek advice of HCL Technologies. and probably the reliability of the peer group through social apps specific analysts report. Based on the before taking a decision historic performance of a research analyst, retail investors would like to 6. Customers can respond to reports access reports generated by a specific in real time analyst. Hence the information 7. Customers can get instant requirement of a retail investor is confirmation of their actions very specific and limited in nature. 8. Customers can access historical Now, based on actual market reports anywhere, anytime conditions, investment analysts can create reports that are tailored to meet The other side of the the needs of each of their customers customer’s view – like a tear sheet. When a customer needs assistance in addition to the The implications of this shift report, the same device can be used are severe on analysts and the to chat with the analyst for real-time applications they use to service their inputs and take decisions. In fact, the customers. Not only must their decision can also be executed over systems be integrated with a variety the same mobile device. of data sources, but they shouldIssue 3 | May – July 2012 48 49 Issue 3 | May – July 2012
  • 27. often result in improving customer Preparing relationships and brand preference. Mobility for Research for the Analysts HCL’s InvesIT, an investment research product does offer features of research consumption through and iPad. These are independent iPhone Tablet Invasion services/ components that can be integrated with the existing research applications of the bank. Authoring research through a mobile application is also in the roadmap ofhave access to their analytical tools workflow of the analyst, it changes InvesIT that will soon be available toanytime, anywhere. Much of the the very relationship the analyst has customers.reporting and analysis would have with the customer. Mobility has changed the way theto be automated, but when it comes world accesses information. Whento live chats, the analyst must be Customer experience, customer retention and efficient customer banks launched mobile applicationsavailable. a few years ago, it was mostly for management are the key words inMobile application can capture today’s banking industry. Banks are account checking and simple servicesonly the investment opinion of an increasingly looking for innovative like ordering a checkbook. At theanalyst as text and auto create the mechanism to meet their customer’s time, this was considered a premiumresearch reports based on a pre- needs. As Steve Jobs said “You service by banks. Today, it is all aboutdefined template. For quicker access cannot ask customers what they data and analytics in real time forthrough the hand held device, the want”. Its banks that need to innovate decision, tables, graphs and charts and ensure the information reachescan be pre-processed once a day customers on time, every time.upon receiving the data on ‘marketclose’. Research analysts also can Mobility for tradingbe provided with the option to decisionchoose the basic components that Applications that are available inwill form the building blocks for smart phones are very handy for athe final report. A preview option About the author: retail investor. A trading applicationwill enable the analyst to decide along with the investment research Balachandran Ponnusamyif he would like to add or remove application will aid investors in is part of HCL AXON, takingsome of the basic components. The care of Business Objects T making a quick and an informedresearch submission and subsequent Practice leadership. He has over ablets are growing in usage. Their decision. Some of these mobileapprovals can be made available applications do exist today. But the two decades of experience in prices are coming down. The growththrough the mobile applications for market for research and analytics IT with technical expertise in in apps for tablets is making the devicesquicker access. applications currently is young and designing and implementing more flexible. And, best of all, consumersFundamentally, the core focus of largely unexplored. Given that they end-to-end Analytics and want financial services on their tablets. hold the potential to deliver what Business Intelligence solutions. What better reason than consumeran analyst moves from creating and customers need, they could be He has worked in various demand to adopt tablets as a channel? Andistributing reports with a fixedperiodicity to dynamically responding significant in terms of improving geographies including US, UK analysis of how financial services should Arun Katiyar customer satisfaction. Meaningful, and South Africa. Content and Communicationto markets and customers. This look at their tablet adoption roadmap. Consultantdoesn’t just change the tools and the well thought out self-help toolsIssue 3 | May – July 2012 50 51 Issue 3 | May – July 2012
  • 28. in Germany that has increased Market Preference for Apps want a device that can be used productivity by 25%, reduced Consider the apps that you use or would like to use on your mobile phone and tablet to enter data and make queries administrative duties and improved computer. On which device would you like to use the following apps?* easily. The larger-than-smartphone risk management. Clearly employees Tablet Computer Mobile Phone Both tablets allow this (stubby fingers can be major beneficiaries. Those don’t matter). who use tablets will have an edge Games 19% 13% 68% 03 The growing number of apps over those who don’t – their productivity will improve even Social Networks 20% 13% 67% for tablets is making them more further as more apps are created Music 12% 25% 63% flexible. with tablet-centric touch-tap-pinch- drag-and-drop functionality. On the Banking/Finance 34% 11% 55% 04 Tablets need lower intervention from the IT department (notice customer side, an app developed for Videos/ Movies 42% 07% 51% how easy it is to install apps on a RBS Global Banking and Markets (GBM) on the PlayBook platform Reading 50% 06% 44% tablet). offers customers personalized fixed *Of those interested in the app who have a tablet or plan to get one in the next 12 months 05 The long battery life of a tablet isIf anything is headed north, it is are favorable for financial service better suited for mobile workers income, commodity and currencytablet sales. There was an over 260% (see: Top 10 Reasons for Tablet Source: Opportunity Calling: The Future of Mobile Communications –Take Two, October 31, 2011, than that of a laptop. (FICC) research and strategy. The Oracle, Oracle report: in tablet sales in 2011 (63 Adoption). Not surprisingly, a study app was a result of direct client future-mobile-521589.pdfmillion units) over 2010 sales figures. released by Infinity Research in 06 Content is easier to consume on demand for the service on a tablet a tablet than on a smartphoneThat is understandable. After almost January 2012 said, “Enterprise and (for details of tablet apps developed Financial Service providers certainly Tablets are headed towards becominga decade of trying to make a mark, business tablet adoption is occurring need to focus on building tablet powerful devices for information (no more squinting). by HCL for its Financial Servicestablets had begun to make waves in numerous market verticals such customers see “Different Facets of capabilities. These capabilities must creation, number crunching and 07 Using a tablet for most functionsin 2010. It was an “early adopter” as the Education, Healthcare, Retail, first centre on richness of content efficiency improvement. Tablets are can reduce the usage of paper (a Mobility: Capital Markets” elsewheremarket with the base sales figure Industrial, Government, Financial and engaging interactivity. In not scaled down laptops or larger in this issue) major green concern for today’sat a mere 17.6 million units. But in Services, Hospitality, Technology, addition, customers should be able smartphones. They are a distinctly enterprises).September 2011, a Gartner report Legal, and Energy sectors. In 2011, to seamlessly move from one device new device that calls for special The opportunity in appsforecasted that tablet sales would the Financial Services sector was the to the other, without disruption in attention as they bridge the gap 08 Tablets use less space than ahit 326.3 million units by 20151. leading enterprise market adopter, Tablets are likely to take over the the experience. between mobility and usability. desktop for training; they are far purchasing 3.37 million tablets.”2 Financial Services industry both more convenient for conductingSuddenly, the tablet space is buzzing. within the enterprise as well as in In the near future, Financial Services Top 10 Reasons for Tablet surveys, etc. The uptake of tablets for the customer facing processes. A studyAfter a busy year in tablets in 2011 -- will reduce the billions of dollars they Adoption Financial Services sector would have 09 Tablets can be used in crampedthe March 11 disaster in Japan meant done by Oracle in October 2011 waste on paper. Amongst the more been much higher (for business use), A number of reasons can be environments (screen re-orientationthat sales were affected as the supply (Opportunity Calling: The Future of popular usage will be the capability but for security worries, says Sunil attributed to the pace of tablet is a killer feature).of some components were hit, some Mobile Communications –Take Two) to do away with checkbooks and Lalvani, Director, Enterprise Sales, adoption, especially in the workplaceoperating systems went in for a said that 16% of all mobile customers paper bills as tablets are used as 10 Tablets cost as much or less than Research in Motion (RIM) India, - primary amongst which is themajor overhaul, sourcing bottlenecks own a tablet while 41% plan to buy scanning devices to shoot images smartphones (and are becoming the markers of the PlayBook. “The coolness factor. But there are otherfor growth were ironed out by Financial Services sector requires one in the next 12 months. That’s a of checks, send them over by email cheaper everyday).manufacturers – 2012 seems to be large number of tablets that will go and have them cleared. Companies reasons and these could soon eclipse higher levels of security especially the smartphone as the device ofprimed for a major tablet makeover. since certain applications (field into use in a very short time span. like PayPal already allow customersWith Amazon’s Kindle Fire tagged at to upload images of checks shot on choice: force, dashboards etc) could contain About the author:a mere $199, a tablet war is expected confidential information,” he told While tablets become a part of their cameras, phones and tablets. 01 Organizations that were wary ofto drive prices south. Can there be Communique. But the good news everyday lifestyle, the Oracle The images are processed just like allowing employees to use their Arun Katiyar is a content andbetter news? is that field-centric apps are rapidly study appears to point at Financial physical checks. smartphones are going easier communication consultant growing for the Financial Services Services being amongst the biggest on tablets as they more closely with a focus on technologyTablet adoption in the industry. On the enterprise side, tablets will companies. He is a published early beneficiaries approximate laptops.Financial Services industry be used by insurance businesses to author with HarperCollins and RIM, for example, has developed scan/ shoot documents, bills etc 02 An increasingly mobile workforceThe demand for tablets is being has extensive media experience an enterprise tablet solution for (see table “Market Preference for and send them for processing and needs a device that can do moredriven by a variety of factors that spanning music, print, radio, the Volkswagen Financial Services Apps”). archival, rather than use copiers or than display email or deliver a Internet and mobile phones. send physical documents (that add few numbers by plugging into an to shipping costs). enterprise dashboard. Employees 1 2Issue 3 | May – July 2012 52 53 Issue 3 | May – July 2012
  • 29. “All rights including without limitation to copyrights, trademarks and other intellectual property rights are reserved with HCL Technologies Limited and all the data, information or material provided herein is proprietary to HCL Technologies Limited. No part of the data, information or material provided herein should be reproduced or stored or transmitted in any manner whatsoever without prior written consent from HCL Technologies Limited. All third party trademarks, service marks, logos, etc., referred herein, remain property of their respective owners” Editor: Subramaniam Baskaran Editorial Team: Nimmi Sebastian Arun Katiyar Ganesh Nerur Sambamurthy Siddhartha Basu Jose Elengical Design Team: Imran Khaan Jayarajan MR Visit us at For information on reprinting articles and all other correspondence, please email at communiqué or contact the editorial team at: Editor Communiqué, HCL Technologies, ‘The Senate’, #33A, Ulsoor Road, Bangalore – 560042, Karnataka (India) © 2012 HCL Technologies Ltd. All rights reservedIssue 3 | May – July 2012 56 Issue 3 | May – July 2012
  • 30. HCL FS Communique HCL FS Communique @FS_CommuniqueIssue 3 | May – July 2012