HeathWallace_Mobile_Whitepaper_2015

Mobile and Financial Services,
what’s coming?
Uncovering the mobile themes that could make a difference in financial services.
April 2015

Mobile and Financial Services, what’s coming?
2Copyright ©2015 HeathWallace Ltd. - a WPP company. All rights reserved.
HeathWallace is a global experience design company. Over the last 13 years it has
created user-centered digital solutions for some of the world’s leading brands. Its
mission is to align business objectives with design and technology opportunities
to make a positive difference for people and companies.
Earlier this year it was announced that HeathWallace will be one of 11 digital
agencies from around the world to form Mirum. Mirum is a new global agency
which provides HeathWallace with additional capabilities and resources to grow,
diversify and compete globally. HeathWallace will retain its brand in recognition of
its specialist focus and experience.
HeathWallace
Rory Yates
Global Director of Strategy
Having spent over 17 years in digital, serving his
time in a number of industry verticals. Rory’s
passion and experience is in transformational
change, and using digital to make a significant
positive impact on consumers, employees and the
bottom line.
Richard Ganpatsingh
Senior Technical Architect
Starting out as a Software Engineer Richard likes
technology with a purpose, solving real problems.
His breadth of technical understanding has
allowed him to lead a team of developers that get
the most out of platform technologies co-creating
with some of the biggest names in the industry
and our clients.
The Authors

Contents
1. Introduction
2. Key Themes
3. Technology & Enablement
4. Summary: What next?

Our recent focus has been on seminar
programmes and conversations looking at
underlying issues and opportunities, from
understanding when it’s appropriate to use
personal data, or what the internet of things
means for consumers and brands.
It’s wide ranging, and the innovations being
reviewed are likely to change industries and the
way people interact, perhaps more significantly
than those that have already come before them.
Some of the important industry segments and
trends we look at:
• Connected living
• Digital commerce / identity / security
• Health and wellness (connected health)
• Innovation & App development
• Marketing / Media
• Mobile Gaming
At HeathWallace the term ‘mobile’ doesn’t just cover the mobile phone; it covers
all mobile device and interaction types, as well as mobile communications. More
broadly it covers mobile technology, which spans from wearable devices through
to the connected car or home.
So we decided to start to document what brands
and businesses are doing to unlock the potential
of mobile innovations and what this means or
could mean for financial services companies.
This paper uncovers some of this potential, but
also looks at the technology that’s enabling this.
We wrote it to both serve our own purposes as
our work requires this, but also to help financial
service organisations start to make sense of what’s
coming next in mobile.
1. Introduction

Mobile technologies are playing their part in
our homes, for our health and increasingly in
how we interact with everyday objects. Mobile
permeates consumers lives far beyond the normal
paradigms of product and service interactions
and it’s transforming categories like healthcare,
allowing healthcare providers, physicians and
patients find a connected health paradigm which
is transforming health services.
Dealing with everyday care issues like weight
management to diabetes and even saving lives
in HIV. It’s a re-imagination through mobile
technology that is yet to be adopted to the same
extent in other industries like financial services,
but the signs of transformation in these other
markets are emerging.
Payments and transactions are being transformed,
and largely not by banks. Biometrics is starting to
have an impact in both enhancing security and
taking friction out of the authentication process,
offering marketing and CRM effectiveness benefits
yet to be identified and capitalised on.
Mobile continues to be transformational, and much of its potential has yet to be
unlocked. The mobile phone is a personal connected device that has become the
primary way consumers connect with the digital world. This year there is expected
to be more searches on mobile than on desktop (source: eMarketer), yet another
tipping point.
Services are now beginning to be re-imagined
in banking and insurance, bringing personalised
service experiences, better relationship
management and ultimately loyalty and reward
back on to the top of the corporate agenda, all in
a bid to thwart the emerging competitive threats,
ensuring that the service advantage potential is
being met, earning back trust and creating more
rewarding relationships with customers.
Mobile devices also supply and interact with lots of
consumer and personal data. It is possible to see
where your customers are, where they have been,
who they interact with, what they like to consume
the most in the digital and physical world and
much more.
So it’s about big data as well as simply putting
an experience on to their mobile. It’s about
personalisation with the expectation of hyper
personalised services being a fast emerging need.
This could make the next steps in mobile one with
both big challenges and huge potential for brands
and digital services, especially in financial services.
2. Key Themes

The internet of things (IoT) to most, means the idea that an object can have a
connection to the internet or an identity on it, typically to either make it smart,
its location known or even to allow it to exchange information (and do this with
other objects). We see the eco-system for IoT working in four distinct areas:
1. The objects
2. The Networks connecting them
3. The systems that process the data
4. The benefits, outputs or outcomes
2.1 Internet of Things (IoT)
The reasons the IoT is important to businesses is
varied, but typically fall across the following areas
(source: Strategy Analytics M2M Strategies advisory
service, McKinsey Global Institute, NYTimes.com):
• 40.2% is Business / manufacturing: supply
chains, robotic machinery, tracking inventory
• 30.3% is Health Care: health monitoring,
electronic record keeping
• 8.3% is Retail: Inventory tracking, anonymous
tracking of consumer choices
• 7.7% is Security: Biometric and facial
recognition locks
• 4.1% is Transportation: Self-parking cars, GPS
locators, performance tracking
The IoT industry has moved on a long way with
suppliers capable of simply giving a product an
extended digital signature (e.g. scan QR code to
access instructions), through to kitchens with
fridges that take pictures of what is inside once
they have been opened and then posting these on
the internet so you know what’s in your fridge.
The expected growth of this phenomenon is quite
impressive, here’s some statistics:
• 15Bn smart devices in 2015
• 200Bn by 2020 (source: IDC, Intel, UK)
• The total economic value-add from IoT across
industries will reach $1.9 trillion worldwide in
2020 (source: Gartner)
• Seventy-five percent of global business leaders
are exploring the economic opportunities of IoT,
according to a report from The Economist
The biggest use cases for IoT are in industrial
businesses where companies like GE who monitor
10m sensors across their operations, or FedEx
using sensors on their plane engines to capture
8000 points of data, all of which allows them to
process information and instruct tasks to happen
at the right time and in an efficient manner. This
use has an immediate benefit to those businesses,
and this then allows those companies to consider
large investments with direct available returns
more easily quantified.

• There is a lot of investment into IoT coming from
a range of businesses. LG’s smart home all the
way through to Bosch creating a power drill that
recognises the task and adjusts the torque.
• The industrial use of IoT has matured the fastest,
due to greater and more immediate economic
benefits of logistic management or more critical
information provision for decision-making.
• The lack of infrastructure or defined services in
IoT means that it is fragmented and each use of
IoT by a brand or company has to figure out all
four aspects of the IoT stack. SK Telecom offers
a platform called Mobius, the world’s first open
IoT platform based on the global IoT standard
named oneM2M.
• The cost per unit / transmission for IoT is hard to
determine and many first movers are expressing
concerns with scalability.
Some recent learning:
Personal Insurance
• Perhaps the easiest case, and one that has
already been explored is for car insurance with
‘pay-as-you-drive’ or ‘pay-as-you-go’ insurance
offerings (e.g. Norwich Union in 2006 launched
payasyoudriveinsurance.co.uk).
• For life and health policies the case can also be
made. If customers are willing to wear sensors or
allow their existing personal technology to share
information then experiences can be shaped
around this data.
• Travel insurance could simply involve sharing
your location, which triggers an alert from your
insurer to activate or deactivate your insurance.
• Home insurance might require a more intensive
set of developments, putting sensors in the
home to better detect or manage risks (e.g. your
water meter could talk to your alarm system
to reduce water damage). A good example
of a smart device operating in one function
but providing another is the recently Google
acquisition Nest. Which whilst controlling your
heating also detects smoke of carbon monoxide
switching your heating off if it needs to.
Retail/Transactional banking
• The literal interaction between banking could be
in the recognition of expensive goods like fridges
going wrong and the provision of finance for
repair or replacement.
• However, a more extended eco-system of data
determining the object someone is interacting
with potentially in pre-purchase phases could
also lead to the provision of smarter financial
service offerings.
• Banks need to provide an eco-system to
connect other outcomes to be able to offer
appropriate financial support. If a customers
health were in a certain position, providing them
with affiliated support or offering direct financial
support would be advantageous to the banks
relationship and role in that customer’s life.
So how does this relate to financial services?

Smart Watches are being talked about everywhere and they have dominated
a lot of recent conversation. It’s obvious that the once sci-fi fantasy has
become a reality. These will feature as another screen in our multi-screen and
continuously connected lives.
These watches provide an immediate interface able to alert you on various
things happening in your life, or based on the data your mobile intelligence
is providing. This could easily be applied to your financial life making it easier
to keep track and be conscious of what is happening.
2.2 The Smart Watch
Meaning we will need to stay close to the changes
this will bring in the way consumers interact with
the world. At this stage most provide limited utility,
beyond the link they create with smartphone and
for now it is centred on fitness and health. New
functionality we have seen recently looks at using
the smart watch as a key or even the device to
make payments. Ultimately their utility will open
up as brands and app developers start to provide
new services.
Whilst some are providing smart watches that
can operate independently of smart phones most
providers don’t believe this is what will happen.
These devices will be bought and largely engaged
They could also provide an easier way of
identifying yourself securely, and provide
an interface to loyalty rewards, guiding your
behaviour or prompting beneficial outcomes.
On the 5th November 2014 Nationwide announced
a smart-watch interface that allowed customers to
check their balances if they had already installed
their mobile banking app.
with in combination with smart phones / other
smart devices.
There is an on-going debate among digital
professionals about smart-watch adoption.
Rates are varied by market. A recent UK study by
YouGov predicts around 6.1m (13% of population)
smart-watches and fitness bands will have been
purchased by the end of 2015.
In the US, some see adoption at similar rates to
the iPad and achieving 33% adoption by 2017
(Business Insider). Whatever the case they are
already significant enough to be meaningful, and
their potential needs to be understood.
Lloyds bank announced on 13th February that it
would send its mobile banking customers offers
direct to their smart-watches.
Preceding its launch Citi bank has put the first
banking app onto the Apple watch allowing
customers to review basic account information,
getting them a mention in the Apple Watch launch
event, not bad PR.

Mobile payments have been a big topic for some time now, with examples
appearing back in 2000 with the MobileNOW! platform, also known as the
world’s first mobile payment solution for parking. It now spans all forms of
payment experiences, and for payment merchants this breaks down into four
key areas:
1. Remote mobile payments (buying through the device)
2. Mobile in-store (physical checkout)
3. Mobile PoS (smaller cheaper retailer devices)
4. Buy online and collect in-store (tying back the payment authority)
2.3 Payments
PayPal attribute $50bn through mobile and
declared a 50% growth on the previous year
(source: Hill Ferguson, PayPal). For Visa this figure
is more like $200bn (source: Michele Janes, Visa).
These are significant numbers and the expectation
of growth is so high, it becomes hard for these
businesses to predict volumes.
One thing that is clear from these providers is that
they are focused on customer experience, security
and trust. From a customer experience perspective
there are clear areas of the mobile payment or
checkout process that need to be addressed.
Niklas Adalberth founder and CEO of Klarna (a
mobile payment specialist) said in his session at
the Mobile World Congress (MWC15), that 50% of
eCommerce is over mobile devices, yet conversion
is 1/10th of that on the desktop (which is therefore
typically low anyway at around 2- 4%).
The potential left for mobile is still huge and
underlined by Ryan McInerney, President at Visa,
who reminded us that $11tr is still spent in cash
globally, and that only 1.2bn people are with
banks. There is some optimism that mobile will
help to bridge this gap, with 3.5bn smartphone
subscribers expected globally by 2019 (source:
Forrester Research World Mobile And Smartphone
Adoption Forecast, 2014 To 2019 Global).
Mobile Payment Applications
Payment via a mobile phone at physical checkouts
is big news with recent launches of Apple Pay,
Samsung Pay and Google Pay. Many observers talk
about Apple Pay as the big ‘game changer’, with
Visa highlighting the added security of your thumb
print as being a really important feature.
While Samsung Pay offers The Loop, which
allows mag strip readers to work with its solution,
essential in markets like the US where contactless
payments are yet to take-off. Google Wallet
differentiates itself from the other two by offering
an open API, which allows for offers and loyalty
programmes.

For insurers this will mean thinking about one of the most critical part of the
acquisition funnel (including up-sell & cross-sell) and ensuring the checkout
experiences are optimal for mobile, and that conversion rates are as good as
desktop at least.
For banks generally these changes have a greater
significance. Firstly, the transaction via card
used to mean that the bank and card provider
were present in each transaction (branding and
relationship benefit). Now that brand relationship
is reduced, as certain customers will simply
complete their purchase with Apple, Samsung or
Google’s help.
However, banks are increasingly adopting mobile
strategies and deploying applications, which in
partnership with a payment merchant could easily
also provide the payment facility to its customers.
Visa and MasterCard are both working in
partnership with banks and mobile providers, their
open approach means they can now bring learning
and expertise to subsequent developments.
Perhaps more important is the role of banks.
They are the organisation that hold and distribute
money, securely authorising payments and
providing the core capability that lets this happen
in the first place. They also hold one other
important set of information for consumers.
Their banking life combines day-to-day
transactional information along with other more
substantial payments, and if successful they
are the mortgage, loans, insurance, savings and
investments provider as well. This gives them the
opportunity to supply a more complete insight
into an individual’s financial life, giving them
the potential to provide even more utility to the
consumer and help them to understand their
transactional life in this wider context.
As payments become the tap of a card or phone,
and we loose the consciousness of cash, banks can
still provide us with the insight and understanding
we need to make sense of our spending habits.
Augmented with other data they can make us even
smarter about our decisions and general spending
behaviour, or even reward us for this.

The rise of mobile technologies has created a number of pressures on banking.
With consumer demand for mobile services and the rise of mobile ready
entrants, there are recent signs of both changes in large banks, and the
re-modelling of digital processing within them.
2.4 Retail Banking
BBVA (represented by CEO Francisco Gonzalez at
MWC15) recently bought Simple to help make their
bank mobile, they also bought US start up Dwolla
to make moving money easier. They are also
investing in their own capabilities, with their wallet
app being positioned as the most solid cloud
based wallet in the world. Behind it they have 450
employees in Spain alone.
All this makes it clear that they see the future of
banking in mobile and related technology. As for
their journey they see this clearly and feel that
they are turning a physical bank into a mobile
one. Francisco put it in simple terms; “Most banks
are what we call ‘Spaghetti banks’, they are either
building a variety of services or just a pretty front-
end, it’s a mess. You need a digital platform and
digital structures.”
His parting comment when asked about the future,
was that they currently only have 3000 employees
in digital out of 120,000, and in 5 years all of them
will have to work in digital. Samsung invested in
DocuSign at the end of 2014, and they are now
showcasing the progress they are making to bring
this technology to mobile devices.
Their work in Financial Services is starting to build
and they are looking at accelerating the processes
in banks where an authority has to be made, which
typically had to happen in a physical manner and
that they are making happen real-time on digital
devices, importantly mobile devices.
The obvious benefits are immediately in
efficiencies, reduced time and effort, but of course
this improves associated customer experiences
as well. The banking market has recognised the
significance of mobile for its future, but has only
started to address this properly recently.
At HeathWallace we see a lot more optimism in
the industry about banking organisations ability
to address this properly, and ground up change
is being discussed widely. We see acquisition and
investment in this space continuing to accelerate.

While obviously a directly related subject, but the number one take-out from
the BBVA CEO is that banks do need to start to reinvent themselves from
the bottom up, and making acquisitions to drive this is one way to achieve
technology adoption faster.
An important lesson from the show is that banks
need to start to be more present in the mobile
industry (felt by many of the vendors we spoke to).
To encourage and nurture conversations about
more pioneering solutions and alternative mobile
banking approaches (even incubating start-ups).
The consumer demand is there, and for retailers it
is already the device that helps fulfil the omni-
channel vision, helping bridge the gap between
research, selection and store review & collect
experiences.
The same can be true for banking where someone
might make a decision about their mortgage and
then enter into a final review and confirm phase
with their mobile device within a retail-banking
environment, while being helped through those
final stages by a mortgage advisor.
There are alternative solutions and approaches
being introduced into Financial Services to create
mobile experiences such as DocuSign. This creates
a digital signature with the authority of a ‘wet
signature’ and added security, which applied to
various banking and insurance experiences can
add benefit through efficiencies and in the quality
of the overall experience.
The examples discussed to date focus on areas of
large fund movement and approvals as opposed
to consumer experiences, but as these companies
start to work with banks these opportunities are
expected to open up.

Security has become one of the hottest topics, and mobile is both part of the
problem and the solution. Most new offerings are focused on protecting the
identity of the consumer or mobile handset owner, but some extend to the
phone being used to ensure the identity of the user in accessing services online
from biometrics to facial recognition, with solutions like Tue Key using people’s
facial math (the distance between your eyes and your nose), or the devices
they own.
2.5 Security
Other developments in security focused on
payments. The other aspect of rapid develop is
the need to better protect mobile devices, and the
networks that facilitate them. James Lyne from
Sophos demonstrated at MWC15 how vulnerable
mobile users are by taking the audience through
a hackers perspective. This involved showing
them the back doors hackers can use to access
our devices, effectively taking control of them,
accessing our pictures, even using our cameras
providing them useful surveillance i.e. they could
know we are not at home etc.
He also made the point that Android platform
alone has about 1.3m pieces of erroneous code
allowing for some of these back doors to be
opened. The emerging IoT world was also a
significant vulnerability, and that these devices
could all be communicated to and data extracted
from them. The upshot of all this is that they feel
the mobile world needs to learn the lessons of the
desktop world that has come before it, and this
view was widely shared.
BAE Systems offer a very different perspective as
they work with large financial services businesses
to provide fraud detection and prevention
services. They focus on the relationship between
people and systems effectively looking for unusual
activity. What was particularly interesting was their
perspective on how sophisticated and professional
fraud crime is. Fraudsters exploit market shifts,
and the mobile revolution has provided one of
these shifts. The exchange of opportunities and
technology flaws has opened up doors.
These criminals have four distinct types:
1. Opportunistic
2. Planned
3. Organised
4. Automated
There are increasing gains as you move up this
scale. Shylock is the name of a fraud attack on the
banking industry. It was a very complex operation.
Malware was downloaded onto machines, this
tracked bank access and then transferred money
into mule accounts. 17,000 accounts were
attacked, but it was all automated and all the
accounts were opened and automatically made to
look different from each other.
The answer to this isn’t simple. Chris Green
the MD of Financial Crime at BAE Systems has
described some of the things that are needed to
protect against this. Layers of defence are needed.
In banking they build systems that look at the
network of relationships to identify fraudulent
behaviour and mule accounts.
BAE layer on top cyber defences protecting the
perimeter, but also use analytics at this level
to detect behaviour shifts. Believing context is
significant, demonstrated in the UK insurance
industry where the sharing of data has been used
to reduce the capability of criminals, which is
having a beneficial impact.

We got to ask a panel of security experts at MWC15 the following: “If you are a
bank how can you proactively protect users and their devices better?”
The analogy of border security was used,
highlighting that it is one step behind e.g.
someone smuggles something in their shoes, so
we now have to take our shoes off. Attribution
modelling and behaviour shift detection is far
batter to pre-empt fraudulent activity. If banks
shared threat intelligence this would provide the
single biggest initiative with benefit.
They then discussed biometric alternatives
– agreeing that it’s not immediately better;
there are flaws in these systems, which present
lower security benefits than a lot of Windows
based security. Concluding that passwords will
be around a lot longer. Ultimately a proactive
approach to detecting fraudulent activity and the
protection of individuals and their personal data
remain the key areas.

At HeathWallace we wanted to find out how some businesses were innovating
and what this was achieving for them. Telefonica’s approach to innovation
centres on the idea that they must look outside their company for innovation.
And they are looking at ideas, projects and businesses through all phases of the
investment cycle, which they breakdown into three phases:
1. Encourage: creating an environment to energise a local economy,
by attracting and supporting talent.
2. Accelerate: providing tools and support to improve the value proposals
for their customers and partners.
3. Invest: Those projects with the greatest potential will have investment
promoted to them so they can scale their business.
2.6 Innovation
So far they have reviewed 30,000 projects and
invested $300m working with 62 top-level partners.
They launched openfuture.org and they had 200
projects created in 2 months with 7000 users. This
site provides a range of tools and content aimed
at helping people achieve their ideas or fulfil
their business goals; exposing them to greater
investment opportunities.
Crowdworking ‘El Gaiás’ is an environment
where people can work on ideas individually
or collectively, you enter a program to develop
towards investment and in this way it works like
a TechStars.
Wayra is a network of accelerators, they buy
options. If they are involved in this platform they
are interested in products that will be successful
in the future – not in the next year. It has pushed
through 447 start-ups so far.
Amerigo is a set of funds aimed at projects in
the expansion phase. Each Fund Manager works
independently, but working towards Telefonica’s
goals. Ana Segurado from Telefonica was keen
to make the point that they are looking to ramp
up this program significantly, looking at new
partnerships and of course a lot more ideas.
Orange describes a similar approach. Their
Technocentre runs through around 200
innovations a year, and their motivation is that
they would rather disrupt than be disrupted.
One of the steps they took to achieving this was
to train all of their employees in how to work
in an agile business and within an agile project
management methodology. They also trained
them on how to pitch an idea in less than 10
minutes to open up the fluidity of idea sharing
and so they could better capture great ideas when
forums were set up for this activity.
As well as their Technocentre they also have Lab
Explorers which is a place and process for them to
work with customers on create a prototype of an
idea with the intention to launch this.
They also have an open community where they
share ideas, and also attract ideas. Taking them
through the various stages of incubation to
fruition. Techonocentre have developed a 12 week

The lessons from those network operators
showing very mature innovation models are clear,
but also perhaps best aligned to their business
where pure technology innovation is at the heart of
their offering. Importantly they have the ability to
adopt and use innovations, making the business
case much easier to write. So perhaps the better
first step for banks to take, is in both finding new
ways to serve their customer better and innovating
to find better ways of getting changes made to
their offering as well.
start up programme for businesses near launch.
This is worldwide. And they are the Global Sponsor
of the Hello Tomorrow Challenge, which has
created a platform for meeting and exchanging
ideas, specifically aimed at closing the gap
between researchers, entrepreneurship and the
corporate world.
Luc Bretones (EVP of Technocentre and ) said that
all their recruitment in the past two years had been
designers – “people who make things fluid and
easy to use”.
Allied to this is the potential for banks to reach
out and engage innovators, providing them the
funding and networking opportunities they need
to achieve success whilst benefiting from both
the return generated and the application of these
ideas and services in their own organisation.
They focus on three key areas:
1. Agility
2. Design
3. Start-up
He also stated “Innovating is good, to make it well
known is better”. Suggesting that they need ideas
that will create a real impact, and feel that they
can help make this happen.
The financial services space is currently being disrupted by start-ups from
Simple through to Moven bank, all showing a new way to engage customers
focusing on their mobile and social lives to make their experiences better.

Tech titans such as Intel, Qualcomm and Cisco are increasingly engaging with
makers and creative engineers (pre-startup), looking to foster innovative ideas
that embrace their ecosystems in Mobile and the Internet of things (IoT).
3.0 Technology & Enablement
3.1 Open API’s and Innovation
Having missed out on Mobile, Intel wants to be a
key player in the emerging market of IoT, recently
announcing two sensor driven IoT platforms,
Edison and the Intel Curie Module. Curie is tiny
system on a chip, around the size of a button,
packed with sensors and able to connect via
Bluetooth to a smartphone app. Curie does all of
the challenging hardware stuff, enabling wearable
innovation through creative software and mobile
application development.
Platforms offering Open API’s are allowing for
greater innovation by allowing ideas to be mapped
through a range of existing technologies quickly
and easily. Participation or partnership with these
platforms reduces barriers to development and
creates new opportunities to think about what
is possible.
These new platforms allow financial services
organsations to tune into the potential of
application development and IoT sensor
utilisation quickly, by adopting things that are
already working on other services.
Intel has announced a number of initiatives with
different fashion, fitness and lifestyle brands.
However, the opportunity is there for the financial
services industry to be part of these strategic
partnerships, integrating with cloud services
through API’s of their own and fostering interest in
innovation through open competitions.
Partnering with companies providing eco-systems,
such as Intel, is the key to being in this space;
opening up opportunities beyond the next big
thing, who knows what could be derived from the
fusion of financial data with cutting edge hardware
and creative coding.

Mobile devices have always been hard to test. Lots of different devices,
screen sizes, operating systems and the interface of touch, swipe gesture and
increasingly biometric features, have meant that this process has been labour
intensive. Automation in the mobile space has been slow to take off, but lately
there have been some exciting developments.
3.2 Automated Mobile Testing
A range of providers at MWC15 were offering
new automated mobile testing solutions. These
solutions are trained to perform the required
actions on a device and then automate the
testing. Of particular interest was a product called
eggPlant Functional, from testPlant, who use
optical image recognition to identify UI elements
of the app to interact with, much the same way
a real user would visually identify what to press
when navigating the interface.
Once a device has been connected to eggPlant
via their eggOn VNC server, the screen is mirrored
within the eggPlant UI. A test journey can be built
up by identifying the app to launch and what areas
to tap, pinch, swipe, etc as part of that journey.
This process generates a simple to read test script,
which can be edited manually if necessary.
testPlant also offer a raft of other tools, such as a
Network simulator to test how your application
performs over varying mobile network conditions,
plugins for continuous integration and eggBox, a
complete test lab in a box for any set of devices
from mobiles to desktops. The mobile test kit has
started to come of age.

Facebook, LinkedIn and others are pursuing a multi-app strategy, breaking up
their core mobile app into a suite of more focused standalone apps.
Mantis Vision showed off their Aquila 3D tablet at MWC15, running the MV4D
platform to capture and model a 3D environment in real time.
3.3 Multi-App Strategy
3.4 Mobile 3D Capture
A key insight from the LinkedIn team - “Our multi-
app strategy is proving to be the right choice”.
Applying what they describe as the 3-second rule;
If a user takes more than 3 seconds to interact with
an app post launch, the app is doing too much.
They decided to split their core app into a suite of
seven apps, each performing a focused task.
Launch “LinkedIn Job Search” if you’re looking
for a Job, or “LinkedIn Pulse” if your following
news feeds. The LinkedIn team summed up this
approach as “Build a house with lots of rooms and
people get lost. Build a house with a small set of
rooms, they know what to do”.
The tablet projects structured light (an invisible
grid of light) onto a scene, which is then captured
by the camera, processing thousands of unique
reference points to create an accurate 3D model
of the scene.
Unable to resist the temptation to make an
impression, the demonstrator swept the tablet
around his face creating an instant 3D model of his
head. This could then be rotated with the swipe of
a finger or sent for 3D printing.
Breaking an app into many parts can happen in
stages. Job functionality and Pulse are still part of
the core Linkedin app, whilst the standalone apps
focus on providing more utility and usability to the
user. Enabling this shift need to be completed in
an elegant way. Fragmenting the way services are
accessed doesn’t mean fragmenting how they are
delivered, and how the collective whole stands
together e.g. how a user is engaging across them.
This 3D depth sensing is expected to become a
popular feature in the next generation of mobile
phones, opening the technology to interesting
new consumer focused applications, such as
personalised clothing based on your 3D profile.
Mantis Vision are also exploring secure 3D facial
authentication, of interest for the financial
services industry, rolling in a future where access
to physical or digital spaces are authenticated by
scanning your face on your mobile.

The eco-system needs to mature. Providers are entering the market with
scalable offerings for connectivity, and others are offering development
platform capabilities. These worlds need to connect, and the average cost
per sensor / data transmission, plus the operability across markets needs
to scale for consumer related initiatives to start to make a real impact. For
now investment needs to be made in creating and developing ideas based
on connecting objects with each other and people, as well as making data
exchanging sensors out of objects, and applying this to financial services.
They are flooding into the market with varying expectations on adoption.
Whatever your prediction they are unlikely not to be significant in some
way. Largely at this stage they lack utility, with the Apple watch providing
the greatest levels of benefit, as we see more utility coming from app
developments, we also envisage a greater adoption of these devices. The
relative cost of applying services to these devices is low and financial services
companies have already started to release services to capitalise on this.
The next wave of payment via mobile phone offerings are upon us, and many
believe that they are game changing and they will tip the hype into adoption.
Banks need to get involved and re-connect other services to get back in front of
the transaction.
4. Summary: What next?
Internet of Things (IoT)
The Smart Watch
Payments

The consumer pressure for mobile services is high and new entrants are
starting to present a threat to traditional banks. Banks are reacting and
changing, and there are signs of significant shifts in banking platforms and
strategies. Acquisition and investment into this next phase is beginning to
rise, and this will continue.
Mobile technologies offer the opportunity to make experiences more secure
(i.e. biometrics) and improve the experience as well, reducing the friction
involved in authentication. Banks are exploring this in internal processing and
consumer authentication. The mobile phone and mobile networks also present
a security threat, and currently, individuals aren’t doing enough to protect
themselves, the phone and platform businesses aren’t either. Financial services
companies need to consider how they can use mobile technologies to enhance
security, and also what they can do to continue to protect the customer
when using mobile service. This needs to include their use of other devices,
applications and services.
The learning from the network operators shows that innovation done well
requires a significant investment and operational commitment. There is a real
opportunity to invite other people and businesses into this process by offering
them a platform, where they get the support needed to take their ideas to the
next stage. The ROI model for these programmes can be both through the
direct application of the ideas to the business, and either through its sale or
through its business success. Financial services companies are uniquely placed
to offer businesses an environment where they are supported through a greater
understanding of what their financial options are, and the partnership with
TechStars creating the Barclays Accelerator programme is an early sign of this
approach starting to be adopted.
Banking
Security
Innovation

United Kingdom
Kelly Harris
5-9 Merchants Place
Reading
RG1 1DT
kelly.harris@heathwallace.com
www.heathwallace.com
Hong Kong
Courtney Terrey
19/F, ACE Tower, Windsor House
311 Gloucester Road
Causeway Bay
courtney.terrey@heathwallace.com
Enquiries:
Copyright ©2015 HeathWallace Ltd. - a WPP company. All rights reserved.

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