Digital Directionschecking out the mobile banking journeys aheadVlerick Alumni Finance SectionQuinten Fraai, General Manager Direct Channels
Mobile. Payments. Banking. It all hangs together. “All rich devices will be connected and will know everything about you so they can provide you with useful information” Bill Gates
The relevance of payments. And banks.Payments and transactions are one of the key lubricants of today’s economies.Banks play a pivotal role in providing these lubricants to the economy; They provide the transactional systems for these lubricants to flow freely; the banking infrastructure They have the means to guarantee the smooth operation of this system; providing deposit, lending and transactional solutions They are connected to every part of the economy to ensure stability of the flow; governments, institutionals, corporates, small businesses and retail customers They are tightly regulated to ensure the integrity of the flow; nationally [i.e. NBB] and internationally [i.e. Basel Accords]
The relevance of mobile for banking. The mobile channel is here to stay. Every global trend tells us that mobile internet traffic will increase and outweigh desktop internet usage in the years ahead. % of total internet desktop internet traffic traffic from mobile (projection 2014) India is already India there! Worldwide North America EuropeSource: statcounter
The relevance of mobile for banking. 29% of Belgian customers use mobile banking. 85% of them is happy with the mobile banking offer from their bank. 29% is user of mobile banking, 67% has never tried mobile banking, leaving 4% that tried and stopped using it. 84,7% is very satisfied or satisfied with the mobile banking offer.Source: Hedera Consulting Research “Mobile Banking in Belgium” 2012
The relevance of mobile for banking. 71% of Belgian customers don’t use mobile banking. Safety, possesion of a smartphone and ease of use are most frequently quoted as the reasons why people don’t use it yet. Of those that do not use mobile banking, only 23% has no interest at all, 77% are all potential mobile bankers These barriers • No need at this point in time, but will very likely start will disappear mobile banking in the future with the • Easier interfaces predicted • When NFC payments become possible smartphone • Communication towards clients on these features market growth • OS supportSource: Hedera Consulting Research “Mobile Banking in Belgium” 2012
SMARTPHONE Banking – what we see ahead.SMARTPHONE Banking- what we see ahead.- relevant things to reckon with.
SMARTPHONE & TABLET – what we see ahead. The way the device is used defines what you can offer on it. The smartphone is a typical “on the go” device.
SMARTPHONE Banking – what we see ahead. The smartphone will become the indispensable “Do I have everything with me?” device.
SMARTPHONE Banking – what we see ahead.In the near future we will start to use it for smallperson-2-person payments.
SMARTPHONE Banking – what we see ahead.Further down the road we will use it as our wallet,holding all our cards, and more.
SMARTPHONE Banking – what we see ahead. Banks will not be the only one offering wallet functionality.
SMARTPHONE Banking – what we see ahead. If simple selling is possible, smarter, non-intrusive, location based, tailored offers will have impact.
SMARTPHONE Banking – what we see ahead. Unfortunately these are not the only thingsscale up to “normal” cybercrimeUnfortunately E-fraud via smartphone will we will be focussing on…levels withing the next 3 years…
TAKE AWAYS1 Omni presence of mobile devices is a given. The smartphone will develop into the indispensable “do I have everything with me?” device offering more on the go functions2 The smartphone is rapidly establishing itself as a preferred channel to bank through.3 Mobile Payments is a logical extension of the mobile banking functionality as it is used today and banks are well positioned as a trusted partner to provide this.4 Mobile sales and mobile triggered sales may find fertile ground if offered non-intrusive and tailored.5 CyberCrime is is moving into the mobile channel fast. Keeping the channel clean and safe is of critical importance.