Taking Corporate Banking Mobile


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In light of global explosive growth in mobile banking and the financial services sector's dominant position in enterprise adoption of mobile, this presentation provides advice for optimizing the corporate mobile banking experience and discusses the compelling benefits of mobile.


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  • But before we go there, I’d like to take a little walk down memory lane. Because I am a firm believer that history repeats itself and that certainly applies to the evolution of corporate electronic banking technology for better or for worse. Now before I add text to this slide, I just want to make the following disclaimer: all buildings appearing in this presentation are fictional. Any resemblance to actual buildings – living or dead – is purely coincidental. In about 1991, a bank IT executive in this fictional building told a cash management product manager that she should forget about investing in a leading edge windows based electronic banking system. About 9 years later, in this fictional building a cash management product executive told a software consultant that no corporate clients would be willing to use the public internet for electronic banking. And in this final fictional building, just a few months ago, a Director of Treasury Management for a real life bank told a reporter that there is virtually no demand for mobile banking among his midsize or large corporate clients. I think you get my drift. With every innovation in channels, you can find the naysayers that insist that things are going to stay the same. So much for sustainable innovation.
  • From Celent: Adoption of corporate mobile banking solutions has clearly been slowmoving. It’s still going to be an uphill climb to bring more banks onboard. Even with the additional realizations, it’s still a question ofmatching up client demands, IT budgets, and product prioritizations.Today, only 10 of the top 25 US banks offer some form of corporatemobile banking solution. If the list is narrowed down to the top 10banks, the figures are more encouraging—eight of the top 10 bankshave solutions in place. Based on Celent’s analysis, we expect this figureto inch up to 12 of the top 25 in 2012, and to 15 banks in 2013.
  • Harris poll – Jan 2011 - While 30 percent of the 2,300-plus adults polled in a late-January survey admitted to using their smartphones to transfer sensitive data, 48 percent of tablet owners said the same. Additionally, 20 percent of tablet owners said they transfer sensitive data for business use, while 42 percent said the data was personal. Among smartphone owners, 26 percent said they transferred personal data, while 14 percent said the data was for professional use.
  • RDC:Wells Fargo recently announced its CEO Mobile Deposit service for corporate banking customers. Wells Fargo touts benefits such as improving cash flow through expedited deposits and an extended deposit deadline.
  • Taking Corporate Banking Mobile

    1. 1. Taking Corporate Banking Mobile7 June, 2013 Confidential 1John TupperSenior Principal Solution ConsultantUSAOur software underpins electronic paymentsthroughout retail and wholesale banking,and commerce, all the time, without fail.Yasuyuki Endoh, Senior Engineer, Japan
    2. 2. Agenda• Introduction• History of mobile banking• Moving from consumer to corporate banking• Industry adoption and growth in mobile banking• Optimizing the corporate banking mobile experience• Understanding what makes a corporate mobile offering successful• Corporate and employee benefits of mobile• Q&A07 June 2013 Confidential 2
    3. 3. Historical Perspective on Mobile Banking7 June, 2013 Confidential 3
    4. 4. History Repeats Itself“Our clients aren’t willingto use the public Internetfor electronic banking.”–A Cash ManagementExecutive,circa 2000 “…sees virtually nodemand for mobilebanking among midsizeor large corporateclients.”–Director of TreasuryManagement forIberia Bank quoted onCFO.com, November 2010–A Bank TechnologyExecutive,circa 1991“That Windows thing isjust a fad; our corporateclients will never adopt it.”7 June, 2013 Confidential 4
    5. 5. The explosive growth in mobile banking began withconsumers7 June, 2013 Confidential 5
    6. 6. Consumer mobile payment adoption is globalSource: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 201213%15%21%21%23%28%30%30%35%37%45%45%48%64%66%FranceCanadaGermanyAustraliaU.K.ItalySwedenU.S.AVERAGEBrazilSingaporeU.A.E.South AfricaIndiaChinaPercentage of Consumers That Used Mobile Phone toMake a Payment in the Last Six Months7 June, 2013 Confidential 6
    7. 7. Industries Are Adopting Tablets at Different SpeedsSource: Good TechnologiesPercentage of Enterprises Adopting iPad by Industry (2010)36.8%11.4%10.5%8.8%8.3%4.4%3.9%3.1%2.6%2.2% 2.2%5.7%Financial ServicesHigh TechHealthcareLegalGovernment/PublicWholesale/RetailBusiness/Prof ServicesEntertainmentEnergy/UtilitiesCommunicationsManufacturingOther7 June, 2013 Confidential 7
    8. 8. Executive Device Preferences Are Changing RapidlySource: “The Untethered Executive: Business Information in the Age of Mobility,” Forbes Insights87%82%76%31%27%15%LaptopcomputerSmartphoneDesktopcomputerNetbookcomputerInternet-enabled tabletWAP phonePercentage of executivesreporting current use ofdevices for business purposesPercentage of responses tostatement “I will use a tablet morefrequently than a computer withinthe next three years”28%37%10%20%5%Strongly agreeAgreeDont knowDisagreeStrongly disagree7 June, 2013 Confidential 82011
    9. 9. Enterprise Adoption of Mobile by SectorThe Financial Services Sector Dominates Enterprise UsageSource: Good Technology7 June, 2013 Confidential 9
    10. 10. The Ascent of Corporate MobileSource: “Corporate Mobile Banking: Revolutionizing Cash Management”, Celent, Dec 20117 June, 2013 Confidential 10
    11. 11. Strategic Opportunities for BanksMobile Banking• Using a mobilephone to access abank account andmake payments• Banks shouldactively invest andexpand this channelnow, in particular forcorporate treasurersMobile Commerce• Using a mobilephone to buyproducts• Driven by e-commercecompanies lookingto uplift theirproduct sales andgenerate revenuefrom advertising• Banks shouldpartner with thesecompanies to learnand offer theirfinancial services aspart of that shoppingexperienceMobile Money Transfer(Mobile Person-to-Person or P2P)• Basic paymentservice to theun/underbanked indeveloping countries• Banks shouldconsider boldermoves – partnerwith telco or launchtheir own globalmobile moneytransfer serviceSource: “Mobile Payments: Three Winning Strategies for Banks,” SWIFT White Paper7 June, 2013 Confidential 11
    12. 12. Optimizing the corporate bankingmobile experience7 June, 2013 Confidential 12
    13. 13. Need to updatemy cash flowforecastLet me see if that$30M paymentarrived in ouraccount in TaipeiSecurity alerts foroff-hours activity?I’ll have to the checkapproval status fortoday’s sweep.I’m running solate — good thingI can approvethese wires beforecutoff withoutgoing back tomy officeA Day in the Life of a Corporate Treasurer7 June, 2013 Confidential 13
    14. 14. Key Features for a Multichannel Corporate BankingSolutionSource: TowerGroup7 June, 2013 Confidential 14Features DescriptionData consistency Make balance information consistent acrosschannelsCurrent-day transaction data Make transactions available to all channels atsame timeTransaction initiation Perform initiation on appropriate channels,including business to bank (B2Bank)Transaction approval Approve transaction on any channel, regardless ofhow they are initiatedException resolution Provide exception resolution on all channelsSecurity administration Manage security functions on a cross-channelbasisEntitlement management Enable administrators to entitle users online for allchannelsClient-level preferences Allow preferences to be set online for all channelsAccount management/onboarding Provide ability to view and approve eBAM or otheronboarding requests, regardless of how initiated
    15. 15. Mobile Offering Should Consider Advances in OnlineChannelTechnology advances have enabled a virtually unlimited numberof customized user experiences• Dashboards• Portlets• Personalization• SOA• Enhanced branding andpackaging• “Super-user” customization ofreports and workflows that canbe extended to the client• AnalyticsSource: TowerGroup7 June, 2013 Confidential 15
    16. 16. Tailor the Experience to Maximize Value to the UserDevice considerations• How easy is it to perform data entry?• How much data can be presented on the screen at once?• Does the device have a touch screen?• How easy is it to multitask?• How do you optimize workflow to minimize “clicks”?7 June, 2013 Confidential 16
    17. 17. Do Not Reinvent the Wheel to Support AdditionalChannelsLeverage:• Existing entitlementsframework• Existing interfaces• Enterprise (i.e., consumer)mobile infrastructure• Security investments(where it makes sense)7 June, 2013 Confidential 17
    18. 18. Address Security with Both Channel-AppropriateSolutions and Cross-Channel Solutions• Most early-to-market smartphone solutions arerelying on the same authentication methods inuse for online portals• Physical tokens are not the most practical solution• Reliance on one-time password (OTP)-generating tokens provedto be vulnerable even before the recent breach into the RSASecurID servers• Recent Zeus attacks on BlackBerry and Androiddevices demonstrate additional vulnerabilities• Distribution of applications through app storesincreases potential for introduction of malware• Tendency of tablet users to transfer sensitivebusiness data at higher rates than those usingsmartphones is a concern that needs to beaddressed7 June, 2013 Confidential 18
    19. 19. Assessing the Options/Things to ConsiderAccess channels• Web/Browser-based• Native Application• SMS TextDevice Support• Android, Blackberry, iOS, etc.Security• Authentication /Tokens• Transaction monitoringFeatures• Remote Deposit Capture (RDC)• Entitlements• ApprovalsCost07 June 2013 Confidential 19
    20. 20. A Fully Realized Corporate Mobile Offering Rich Feature Set Broad DeviceSupport LeveragedInfrastructure Layered Security EnterpriseEntitlements Real Time andConsistent Data Unique Offerings toDrive Loyalty7 June, 2013 Confidential 20
    21. 21. Corporate and employee benefitsof mobile7 June, 2013 Confidential 21
    22. 22. Benefits of Mobile Banking to Your Customer BaseCorporate‒ Continuity of job performance‒ Anytime, anywhere access‒ Anytime, anywhere visibility‒ Uninterrupted customer support‒ Simplified operations‒ Enhanced User SecurityEmployee‒ Continuity of tasks‒ Time management‒ Anytime, anywhere access‒ Job satisfaction‒ Location Based Services‒ One Click Access to Support7 June, 2013 Confidential 22
    23. 23. Questions7 June, 2013 Confidential 23
    24. 24. Speaker InformationJohn TupperSenior Principal Solutions ConsultantACI Worldwide, Inc.john.tupper@aciworldwide.com+1-704-423-8737Visit ACI @ SIBOSHall 2Stand #2A0707 June 2013 Confidential 24