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ING Belgium setting the standard now and in the future


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ING Belgium, setting the standard now and in the future.
Combined presentation of Mr. Lieven Haesaert, General Manager Direct Channels, ING Belgium and Dr. Ian Pearson, Futurologist, Futurizon at the Mobile Banking press event on November 26, 2014.
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ING Belgium setting the standard now and in the future

  1. 1. Mobile banking press event November 26th, 2014 Mr. Lieven Haesaert, General Manager Direct Channels, ING Belgium Dr. Ian Pearson, Futurologist, Futurizon ING Belgium: Setting the standard, now and in the future
  2. 2. The state of mobile banking - an ING view - Lieven Haesaert, General Manager Direct Channels I
  3. 3. Customers want to manage their money in an easy way, anytime, anywhere.
  4. 4. 4 Banking is a primary reason to use the internet 80% of all Belgians connects at least once a week to the internet… while the European average is 72%1. 58% of all Belgians uses the internet to do online banking… while the European average is 42%1. 47% of all Belgians uses the internet to communicate on social networks… while the European average is 43%1. 1.Source: FOD Economie (2014). Barometer van de informatiemaatschappij. vs.
  5. 5. 5 Smart mobile devices are now widely adopted… Share of Belgians owning smartphones and tablets1 Share of Belgians intending to purchase a smartphone or tablet1 24% of Belgians owns both a smartphone and a tablet 30% 19% 46% 38% 0% 10% 20% 30% 40% 50% Dec ‘12 Feb ‘14 13% 20% 17% 21% 0% 10% 20% 30% 40% 50% 1.GfK: Multi Screen & Mobility Survey (February 2014)
  6. 6. … and so is mobile banking 27% of Belgian internet users uses mobile banking1 Including both men and women1 Including all age groups1 6 24% 30% 0% 20% 40% 60% 20% 24% 32% 37% 30% 0% 20% 40% 60% 18-24y 55+ y 1.ING International Study (May 2014). Financial empowerment in the Digital Age. 25-34y 35-44y 45-54y 27%
  7. 7. The mobile app has become the most frequented online channel Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 7 Online banking sessions on PC, smartphone and tablet1 (Q1 2011 – Q3 2014) 1.Source: ING Belgium. 57% Number of online banking sessions
  8. 8. Customers log in almost every day on their smartphone 8 1.Source: ING Belgium. Average number of logins per week1 (average week for an active user) 0 1 2 3 4 5 6 7 1 to 2 times 2 to 3 times >5 times
  9. 9. 9 Tablet banking has created a new banking moment 1.Source: ING Belgium. ING online banking usage throughout the day (weekdays, relative distribution per channel) 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Normalized number of visits
  10. 10. Where do Belgians log in the most when abroad1? (summer period 2014) France The Netherlands Spain Morocco Turkey France Spain The Netherlands Italy USA 1 2 3 4 5 1 2 3 4 5 Mobile banking everywhere 10 1.Source: ING Belgium. Share of sessions from abroad in an average week1 (October 2014) 5% October 10% Summer 6% October 11% Summer
  11. 11. 11 For mobile bankers, contact with the branch stays as important… Which of the following types of banking do you use and how often…1 1.ING International Study (May 2014). Financial empowerment in the Digital Age.
  12. 12. 12 … and they are very eager to give feedback « J'adore l'application sur tablette ! Bravo ! Mais ça serait intéressant de pouvoir modifier les types d'achats dans 'Mon budget'. Par exemple: j'ai été acheté quelques bricoles dans une épicerie et ça me dans 'Divers'. Quand je vais dans une enseigne alimentaire bien connu, ça met logiquement dans 'Famille' » - M.S. (3/05/2014 ) « Bravo!! Outil très intelligent et facile d utilisation. Meilleur gestion du budget et meilleur vue sur la gestion au quotidien. Vraiment bravo! » - B.N. 02/11/2014 Bien, mais dommage qu'il ne soit pas possible d'avoir accès aux investissements - R.D. (21/08/2014 ) “App werkt zeer goed. Zeer gebruiksvriendelijk en overzichtelijk. Heel eenvoudig en in 'no time' te installeren. Prima ! Bedankt !” - P.P.(10/07/2014 ) •Source: ING Belgium; Feedback given through the feedback form on the tablet app. > 5.000 feedbacks received in the last 6 months = key input for the evolution of our channels
  13. 13. Our customers ask for easy and relevant banking solutions.
  14. 14. 14 2014: More functionalities, still easy to use… 2011 2014
  15. 15. Total sample (n = 539) Total sample (n = 449) Total sample (n = 668) •Top 2 = sum of respondents who answered “very easy” or “rather easy”. Customer effort score correlates with NPS and Satisfaction score 92% 89% 78% “Easiness” of ING Direct Channels (Customer Survey 2014, ING Belgium) … confirmed by our ‘Customer Effort Scores’ 15
  16. 16. Almost 1 in 2 simple products bought online 16 •Source: ING Belgium.
  17. 17. 17 Savings accounts (Lion Deposit & Lion Premium) Credit Card (Visa Classic) Current account (Lion Account) Travel insurance (Lion Assistance) Make An Appointment An increasing product offering on mobile …
  18. 18. 18 Coming soon: Subscribe to an ING pension savings plan on mobile in 3 clicks … and launching a new one 1 2 3
  19. 19. 19 Anywhere, also for our business customers 2 3 4 Coming soon: “Second signature” on mobile 1 Robert Schumann R.S. Architecture R.S. Architecture Robert Schumann
  20. 20. 20 What customers value most in mobile banking Since using mobile banking …1 1.ING International Study (May 2014). Financial empowerment in the Digital Age. Customers want intelligent tools for money management1 41% of mobile bankers would use automatic categorisation of their spend on clothes, meals out, etc.1 63% of respondents keep a household budget.1
  21. 21. 21 Therefore we launched the budget module in the tablet app
  22. 22. 22 1.PFM Insight Series: Edition 4, MAPA research, June 2014, the Financial Brand June 2014 2.Source: ING Belgium. “In terms of iPad app developments ING (BE) stands out as one of the fresher examples of added PFM functionality over the last 12 months. 1” - MAPA independent global research More than 750.000 downloads Overview of average ratings in the App Store & Google Play Store since the launch of our apps2 (iOS & Android consolidated) Our Smartbanking apps have been downloaded more than 750.000 times since the launch in June 2011 2.
  23. 23. Dr Ian Pearson Future of mobile banking
  24. 24. Part 1: short term trends •Always on – coverage, data rate, battery life, ease of use •Instant gratification – what you want, where you are, now •Eurostat: Half of EU internet access is via mobiles •Originally phone, email, social nets, news, reading, games, music •Now photos, searching, ordering, payment, ticketing, fulfilment •Services are becoming commoditised •Many users own phones, tablets and laptops, need common feel •Users now assume suppliers know their location & preferences •and assume they can pay and ticket using mobile •Need more personalised experience to differentiate
  25. 25. Mobiles cover every area of the modern lifestyle. So must payments. Better mobile nets, devices and apps lead people to lead a more mobile anything/anywhere lifestyle.
  26. 26. Globally, 50% use mobiles
  27. 27. Virtuous circle for app, web & enterprise development Improving OS, interfaces & displays Ease of use Ubiquity Higher market visibility Easy & secure authentication & payments More willing entrepreneurs High speed data & location Result: growing use and richer lifestyles
  28. 28. Reorganisation and restructuring Much wider variety of ad-hoc business models with more freelancers, coops and virtual companies, each with custom apps and structures but all needing payments. As new and unfamiliar organisations grow quickly, and as people use their mobiles for more and more things, trust in the underlying authentication and payments systems becomes more important. Having a proven record is essential to success.
  29. 29. Trust-based services Context/ Location Reputation & Recommendations Certification Virtual companies Services Privacy/ Smart filters Custom overlays Sensor nets Interfaces Identity management Trust is the most essential ingredient for successful business Augmented reality Security Payments Brand assurance
  30. 30. TV IT Converging with other sectors via Internet of Things IT will converge with every technology area. Phones & tablets Games Mags Tracking Film Augmented reality Profiling E-ink Clothes Food Retail Cars Visors Health Thin, flexible & cheap displays will be scattered everywhere as well as assorted visors and all the usual phones and tablets Home & office devices
  31. 31. Accelerating lifestyle innovation Ease of use Accessibility Familiarity Mobiles are the obvious choice for most things most of the time. A virtuous circle of accessibility, familiarity and ease of use leads to more use and increased feeling of safety. Biometrics helps all three so may be a big driver. Banking is main driver for internet use. Managing your money effectively underpins living to the best of your resources.
  32. 32. Low stress mobile payments Secure Device and Network Intuitive payments mechanisms Simple secure apps Freedom of Lifestyle Peace People want to manage & spend their money anywhere, any time, on any device. Having an easy interface with easy biometric authentication and knowing it is still secure leads to peace of mind – and greater use! Encryption Biometrics Good design Trust yields use Without stress
  33. 33. Death of passwords •People can’t remember many tough passwords. Wearable devices are adding to a range of biometrics to replace passwords as primary means of authentication •Mobiles include near field comms for payments. Mobile is a security token itself but some now have fingerprint and face recognition. •Wristbands and rings are also being tried •Fingerprints, voice, gestures, signatures, iris… •Nothing is risk-free so there is always a trade-off between ease of use and security. Banks have to absorb tech risk.
  34. 34. Sponge nets, ad-hoc nets, fog… Direct inter-device networking may soon become an important alternative internet platform, diversifying choice of network on the move Wireless LAN link to web and between clusters Wireless links Laptops Tablets Smart phones Display devices Digital jewellery Beacons Street furniture Custom devices Smart clothing Active skin
  35. 35. AR – Enhancing the real world Hi-res, 3D content overlays for email, leisure, socialisation, navigation etc Dual appearance –Can blend games or TV or ads into real world lifestyles –You can choose how you appear in the broadcast virtual world –Everyone can see the world differently –Fight off aliens while your partner chooses an outfit Will further increase range of services that integrate online payments
  36. 36. ING: setting the standard for mobile banking now and in the future II
  37. 37. 37 We are proud of our track record in adopting trends 1985: First Self’Bank 1992: First PC banking platform 2007: First universal direct bank 2013: First budget module on tablet 2012: First in-app banking product sales 2014: First Private Banking app 2011: First mobile banking app
  38. 38. TREND 1 From a physical wallet to a virtual wallet
  39. 39. 39 That virtual wallet will be your ING banking app Coming soon: pay by mobile
  40. 40. From “Easy” to “Easier” TREND 2
  41. 41. 41 Biometrics offer the solution Willingness to adopt biometrics for banking1 (UK bank customers, 2014) 1.British survey commissioned by Intelligent Environments, 2014 79% 52% 33% 30% 29% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In favour of biometrics instead of passwords Fingerprint Eye Face Heartbeat Voice
  42. 42. 42 Where could fingerprint replace codes? 50% 52% 61% 0% 20% 40% 60% 80% 100% Fingerprint for credit card purchases Fingerprint to replace all internet passwords Fingerprint to unlock screen Interest levels in using fingerprint as alternative to codes1 1.Source: Ericsson Consumer Lab Analytical Platform (2013). Base: 5.000 iPhone/Android smartphone users in 10 major cities (worldwide), who use internet daily
  43. 43. 44 1 2 Fingerprint instead of codes
  44. 44. 45 1985: First Self’Bank 1992: First PC banking platform 2007: First universal direct bank 2013: First budget module on tablet 2012: First in-app banking product sales 2014: First Private Banking app 2011: First mobile banking app 2014: First Belgian bank to implement biometrics on mobile
  45. 45. Part 2: 5 year view
  46. 46. Miniaturisation: Even smart watches are only half way there Identification, security, payments Social status Digital image augmentation Communication, data distribution Sensing Medical monitoring, alarms Networking Decoration Tribal signalling Digital bubble Mobile website Miniaturisation will bring everyday IT down to wearable and jewellery size. Combinations of devices can monitor and relay a wide variety of data. Any form
  47. 47. Trust in Payments 2020 •73% worried about password & credit card theft •Electronic payments will use combinations of intuitive security mechanisms & biometrics such as fingerprints or voice recognition •Social tokens can also enhance trust: Handshake + voice recognition + gesture – e.g. “here is €20”. Signal travels between devices via the skin across handshake, with time, GPS location, both IDs, voiceprint. •Friendly, intuitive, no passwords, very secure
  48. 48. 49 Permanent layer Mid-term layer Ink layer Membrane layer Wearable layer The body becomes an IT platform Skin Epidermis Dermis Skin-based electronics can link blood chemistry and nerve signals to external computers and systems
  49. 49. Active skin progress so far Seoul National University - A flexible electronic skin patch has strain gauges to measure tremors, and heating elements to release drugs held inside nanoparticles Epidermal Electronic System, US, China, Singapore team Once basic sensors become available, there will be rush for software to interpret and use the data. Main market is medicine but IT interfacing and virtual biometrics will also feature.
  50. 50. Different situations, same care Friendly Context aware Personal Any provider can provide increasingly commoditised services. Differentiation in an age of advancing AI will come from having people who know and understand the customer, what they need in this situation, and how best to make it happen.
  51. 51. IoT 2020: Getting the Context Clouds, tags, mobiles and sensor networks Environment will be full of processors, tags, data stores, sensors, displays & communicators. Self organising to produce massive raw ground-up data pools with their own intelligence. Big data will be replaced by biomimetic smart systems. Creates ‘digital air’ context and AI channel between customer and suppliers Tag Store Store Store Tag Tag Tag Tag Store Processing Processing Processing Sensor Sensor Sensor Sensor Sensor Sensor Comms Comms Comms Display Display
  52. 52. Keeping customers on board Satisfy and develop Create awareness Grow markets Look for new demands Use social nets to monitor and cultivate customer trust Tapping needs Developing expectations Basic technology development People will only buy what they want, but they don’t know what they want till they are shown it!
  53. 53. Care economy businesses Value of physical/ intellectual Work as AI develops Value of Community & Personal contact time More face to face interaction, needing emotional and ‘human’ skills Trust will be a very key factor and requires better integration Companies need to work more closely with individuals & community
  54. 54. Sector winners and losers Centralised manufacturing High Street shops Knowledge based jobs Bricklaying/plumbing etc Administration Machine operation Traditional Companies Advisors Transaction processors IT Departments Green energy production Custom manufacturing Try-on outlets Human skill based jobs Personal services Lifestyle support services Caring Entertainment, sport, arts Law Modular prefab construction Virtual world design Advice/Counselling Freelancing Social organisations Health care Regulation
  55. 55. Survival priorities Brand integrity Business diversity Trustworthiness Social responsibility Foresight Bravery Agility & adaptability Think clouds Think virtual Focus on being human
  56. 56. Thank you
  57. 57. 58 Thank you for your attention, we welcome your questions