Successfully reported this slideshow.
APRIL 2012                                                                                                                ...
Enabling anAnytime,AnywhereWorldNew innovations are providing novel ways to enable an“always on” society: mobile, social, ...
The first commercial mobile service was                                                                  ing additional op...
economy with a mobile phone. That sounds                                                                 that our parents ...
provided by some MNOs. Also, the concept                                                                        Connectivi...
Mobile       (R)evolution                                                    Retail Banking industry analysts define      ...
T        echnically speaking, Mobile Banking is         composed of three mobile technologies:SMS (Short Messaging System)...
USE. Widespread in developing world,   Mobile                                                                             ...
doors                                                                                                opening the          ...
A         s part of an overall retail banking busi-          ness model, Mobile Banking offers thestickiest touchpoint for...
Call Centre                                                          $4.00                                                ...
In general,transformative                                                                                                T...
BANK-LED MODELThe banks offer strong capabilities in treasury, risk management, and fraud detection; and access to capital...
MNO-LED MODELThe MNOs offers their large customer base a easy to use financial transaction services with their own distrib...
3RD PARTY-LED MODEL3rd parties, usually technologically driven companies, have strong technology capabilities. However, th...
Half                                                                                                            full      ...
W             hen Mobile Banking technologies and              its components are “put together” theright way, according t...
RISKS        Like all goo                        d things in       to co m e h a                    life, succes          ...
Customer related                                                                                         wet towel around ...
globalsnapshots      What´s going on around the               world in mobile banking?                                    ...
GLOBAL                                                                                                                    ...
GLOBAL                                                                                                                    ...
GLOBAL                                                                                                                    ...
FINO (INDIA)FINO is an Financial Inclusion Solutions and Services company;                                                ...
MCBANK (PAKISTAN)MCB Mobile was launched in 2009, which was a joint collabora-                                            ...
M-PESA (KENIA-TANZANIA)Developed by Vodafone and deployed by their affiliate, Safari-                                     ...
G-CASH (PHILIPPINES)An internationally acclaimed micro payment service, G-Cash of-                                        ...
YELLOW BANKFounded in 2004, the Miami-based Company is the recipient of                                                   ...
WIZZIT (SOUTH AFRICA)Wizzit offers a secure and efficient payment mechanism to the                                        ...
Generally, banks have limited choice when     Mobile Banking      Technology                                              ...
FINACLE (INFOSYS)Finacle solutions address the core banking, e-banking, mobile banking, Islamic banking, treasury,wealth m...
Amongst mobile banking pundits, custom-builtnative apps are the holy grail, which allows                                  ...
GLOBAL                                                                                                                    ...
GLOBAL                                                                                                                    ...
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
BBVA Innovation Edge. Mobile Banking (English)
Upcoming SlideShare
Loading in …5
×

BBVA Innovation Edge. Mobile Banking (English)

13,789 views

Published on

What's going on around the world in mobile banking? Here, conceptual "pictures" of mobile banking practices around the world are presented, covering 12 countries in four continents. In this issue we sum up the best social business case study and we analyze future opportunities around it.

´BBVA InnovationEdge' is the first corporate multiplatform magazine focused on innovation. Each edition featuresarticles, analysis and huge information about a particular theme. The mainpurpose of the magazine is to express the new trends and the upcomingtechnologies that may impact to the financial industry.

Published in: Economy & Finance
  • Korean mobile banking system is far beyond its future already, isnot it strong enough? can it be stronger in the future? so than with what improvement? how can it be more innovative.. where is conceptual 'picture'of mobile banking. NFC? voice recognition? harddd......
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

BBVA Innovation Edge. Mobile Banking (English)

  1. 1. APRIL 2012 2Mobilebanking NEW EXPERIENCE IN THE POST PC ERA Mobile (R)evolution Opening the doors for our customers Global snapshots Forecasting for innovation Trending issues Technology trends Edge April 2012 | MOBILE BANKING Innovation page 1Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  2. 2. Enabling anAnytime,AnywhereWorldNew innovations are providing novel ways to enable an“always on” society: mobile, social, and cloud technologiesare being interwoven into the fabric of everyday lifecreating new value or offering new efficiencies. Themobile handheld device is becoming the touchpoint fora wide array of products and services, as mobile devicesare the “go to” gadgets for most consumers. Businesseswant to be well-positioned to take advantage of theopportunities, including financial services companies. Innovation Edge April 2012 | MOBILE BANKING page 2Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  3. 3. The first commercial mobile service was ing additional opportunities that mobile tech-launched 32 years ago in Japan, as NTT Do- nologies may offer, it’s clear that we are on ourCoMo began offering mobile communica- way to an anytime, anywhere economy. Withtions service to customers on December 1, the right business model, companies can1979. Today, we are on the cusp of pervasive, serve 6 billion customers using mobile tech-global connectivity, as mobile phones have nologies: for creating and maintaining “sticky”broken the 6 billion subscription mark in 2011 relationships with customers; and as the main(See the mobile penetration graphic below). channel for the delivery of the companies’ val-Although much of the technology “under the ue proposition in a customer-centric way.hood” has changed since the early days, in es- source: Communities Dominate Brands | Celebrating 30sence, mobile devices have transformed from Years of Mobile Phones, Thank You NTT of Japan. 2009.a simple phone to a personal computing and source: ITU (International Telecommunications Union) | Key Global Telecom Indicators for the World Tele-communication device in a handheld format. communication Service Sector. November 2011.While the world is still exploring and discover- Mobile penetration timeline2000 2005 2011719subscribersmobile million 2.21 billion mobile subscribers 6.16 billion mobile subscribersDEVELOPED COUNTRIES: DEVELOPED COUNTRIES: DEVELOPED COUNTRIES:469 million (65%) 990 million (45%) 1.64 billion (27%)DEVELOPING COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRIES250 million (35%) 1.22 billion (55%) 4.52 billion (73%) CONNECTIVITY mobile Mobile banking and other related products technologies. and services would not be possible if our (10’ tour) world wasn’t connected. Thanks to telecom- munication companies (referred to as Mobile Network Operators or MNOs), 6 billion peo- ple can potentially participate in the global Innovation Edge April 2012 | MOBILE BANKING page 3Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  4. 4. economy with a mobile phone. That sounds that our parents and grandparents envisionlike great news. However, the connectivity when they think about a mobile phone. Thenproviders are not a happy bunch these days. there are the smart devices, the ones that areThey are upset because they feel as though leading the way in the post-PC era. The smartthey weren’t allowed to extract maximum devices are sub-divided into tablets (such as thevalue from their investments in infrastruc- iPad and Galaxy Tab), smartphones (iPhone,ture. While Amazon, Facebook, Google, and Blackberry, Galaxy S, etc.), and handhelds (iPoda whole lot more were striking gold in the Touch, PSP, DS3, etc.). Essentially, they are pow-Internet, the connectivity providers were left erful computers in an ultra-compact format. Atstanding practically empty handed, relegated the end of the day, the customer will access any-to the “pipes only” business with unflattering time, anywhere products and services via thesemargins. Put that together with the ongo- devices. The device manufacturers will spur newing shrinkage of their traditional voice busi- capabilities and, in turn, will spark new businessnesses (both fixed-line and mobile), one can cases, such as NFC technology (Google’s Walletsee why the telecommunication companies is an early example).are strongly motivated to explore only thosebusiness models that make sense for them OS PLATFORMSin the mobile space. The telecommunication The aforementioned devices need an OScompanies are extremely important, as they (Operating System) platform to run. Currentlyare providers of access and bandwidth. If the there are several OSs in the market, such asconnectivity providers can’t make compel- Apple’s iOS, Google’s Android, RIM’s Blackber-ling business cases for the forthcoming ma- ry OS, Nokia’s Symbian, Nokia/Microsoft’s Win-jor upgrades, such as LTE (Long Term Evo- dows Phone, Samsung’s Bada, etc. For smart-lution, a next generation technology which phones and smart devices, Android and iOSprovides sufficient bandwidth for 2-way are clearly leading the pack.streaming of high-quality live videos); the re-ality of anytime, anywhere business models APP STORE PLATFORMSmay be delayed. Although the most popular and best-known app store platforms are offered by OS plat-DEVICES form providers (for example, Apple offers theThere are two main types of devices: “dumb” and App Store for iOS and Google offers the An-smart. The “dumb” devices are also known as droid Market for Android OS), there are also“featured phones.” They are the familiar phones other app store platforms, such as the ones Innovation Edge April 2012 | MOBILE BANKING page 4Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  5. 5. provided by some MNOs. Also, the concept Connectivityof app store platform is also evolving as we Wireless connection to the networkare noticing the emergence of enterprise KEY PLAYERS:apps and private apps store concepts. Mobile Network Operators (MNOs), such as Telefonica, ATT, Verizon, etcAPPS DevicesThe word, “Apps,” automatically provokes animage of these really cool buttons that we tap Handheld device manufacturerson our handheld devices to do things. Tech- KEY PLAYERS: Apple, Samsung, HTC, Nokia,nically, those apps are known as native apps. LG, Sony, Nintendo, etcThey are custom-built applications that run ona specific OS platform, often times written for OS platformsa specific device or set of devices. They offer a Operating System of smartphones,rich experience for the end-user as the device’s tablets, or other devicescapabilities are incorporated into the app, such KEY PLAYERS:as NFC, GPS, camera, etc. However, there is a Android, iOS, Blackberry, Windows phone, etcprice to pay for the richness: native apps mustbe developed per individual OS platform, which App Storecan quickly push up the costs of development. Virtual Store for app purchasesOn the other hand, there is another type of app KEY PLAYERS:(although lesser known): web-based apps. In Apple´s, Google´s Android, RIM´s App World, Nokia´s, etcessence, any “mobile enabled” site accessedvia a mobile browser can be considered a web- A Appsbased app. The advantage of this approach isthe “write once, publish many times” capability Native or web appsas web-based apps are device agnostic. Most KEY PLAYERS:people think that web-based apps are unflatter- App developersing but new developments such as HTML5 arequickly blurring the line between web-basedapps and native apps; and it may prove to be arobust and cost-efficient way to produce appsthat provide a rich user experience. Innovation Edge April 2012 | MOBILE BANKING page 5Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  6. 6. Mobile (R)evolution Retail Banking industry analysts define Mobile Banking as “platforms that enable customers to access financial services.” There are three main technologies employed in Mobile Banking: SMS, Mobile Browser, and Custom Applications; and collectively, they are referred to as “Triple Play.” In terms of business models, Mobile Banking offers banks new ways to relate to customers (acquisition & retention; and up/cross-selling opportunities) and a new channel (which also happens to be the most cost effective). Depending on geography and footprint, Mobile Banking can be “additive” or “transformative”; in other words, “One of Many” or “One and Only”. source: Juniper Research. White Paper: Banking on Mobile. 2009. Innovation Edge April 2012 | MOBILE BANKING page 6Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  7. 7. T echnically speaking, Mobile Banking is composed of three mobile technologies:SMS (Short Messaging System), Browsers,  Additive: Mobile Banking as One of Many. Mostly applicable in developed coun- tries or metropolitan areas in developingand Apps. Collectively, they are known as countries. Markets are highly competitive.triple play. These virtual customer relation- Generally, Mobile Banking is one of manyship touch-points and channels can be devel- channels and customer touchpoints andoped “by hand” by the bank or be purchased offers the highest convenience. Driven by“off the shelf” from Mobile Banking solutions Smartphone/Smart device adoption. Gen-providers. Most banks are going the “safe” erational issues are influential.route and adopting off the shelf solutions.In order to differentiate ourselves from our   Transformative: Mobile Banking as Onecompetitors, BBVA has chosen “the road less and Only. Mostly applicable in rural areastraveled” and we are doing it “by hand.” in developing countries and out of foot- print areas in developed countries. Mar-Functionally speaking, Mobile Banking is a kets need to be developed. Mobile Bank-customer relationship touchpoint and chan- ing enables (opens the doors to) previouslynel. In other words, it is one of many different unapproachable, new customer segmentstouchpoints and channels a bank may have. and offers access to banking products andHowever, it is the touchpoint and channel of services. Driven by inexpensive handsets.choice of an increasing number of retail bank- Generational issues are less influential.ing customers, especially Gen Y and Gen X.source: Business Model Generation source: BBVA | Money for All ( Internal Document). 2011. source: Juniper Research | White Paper: Bank- ing on the Mobile. January 2009.To clearly understand Mobile Banking and itsimplications, it may be best to think of it as“additive” or “transformative”. Innovation Edge April 2012 | MOBILE BANKING page 7Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  8. 8. USE. Widespread in developing world, Mobile many alert applications and some payment options in developed world. banking PROS. Can be used across platformstechnologies and carriers, smart and dumb phones, easy to use and fairly safe. CONS. Not permitted in some regions, some security concerns, reduced functionality. SMS Mobile Custom browser aplication USE. Widespread in developed world, USE. Gaining significant traction in particulary within regional and 2nd the developed world, used for mobile tier banks, mobile browsers connect banking, coupons and location based mobile users to an augmented inter- services. net banking site. PROS. Provides a rich user experi- PROS. Familiar to internet banking ence. More secure and stable. Retains customers, simple integration with ex- loyalty and offers cross-selling isting internet platforms, works across opportunities. devices and MNOs. CONS. Integration issues required CONS. Fairly common practice (no competitive for each device. Must be installed by advantage). Takes a number of steps to log in. customer. Can be more expensive to Adaption to small screen not always done well. deploy. Innovation Edge April 2012 | MOBILE BANKING page 8 Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not be reproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  9. 9. doors opening the for our customers Like many other industries, the retail financial services industry is in the midst of disruptive changes: mobile, social, and cloud technologies are reshaping industries and creating new ones. Something new seems to be on everybody’s minds: in the retail banking segment, the something new at the moment is Mobile Banking. Innovation Edge April 2012 | MOBILE BANKING page 9Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  10. 10. A s part of an overall retail banking busi- ness model, Mobile Banking offers thestickiest touchpoint for banking customers the experience of many has been that the mobile channel is an extra cost rather than a cost reduction opportunity.” Overall, the “val-and most economical transactional cost for ue creation opportunity … is neutral at best.”banks. It also paves the way for new value source: EFMA & McKinsey. The State and Future of Mobile Banking. p. 7. October 2011.propositions and new banking models. How-ever, as in other industries, new entrants are However, for individual banks, the report goesaggressively entering into the retail bank- on to say that there are three major opportunitying business and posing new challenges for areas in Mobile Banking:bank executives as they explore and seekout the right business model.  Ultra-convienient and innovative banking.source: Bank Technology News | Banks Seek Sticky Relationshipsfrom Mobile Apps. February 2012.  Digital Commerce.  Disrupting new markets.According to the 2011 EFMA & McKinsey re-port, “The State and Future of Mobile Bank- Once the overall strategy for Mobile Bankinging,” mobile banking for the retail bank seg- is formulated, each bank will have to integratement (as a whole) is a “zero-sum” game: “new the “additive” Mobile Banking into its retailrevenues have been largely captured by non- banking business model. For banks aimingbanks, most players have yet to reflect the to be shapers, they will have to resolve theconvenience of mobile in their pricing, and “transformative” aspects of the model. Strategy defines Opportunities Digital Disrupting Ultra convenient x x Commerce new marketsFollower 110100111001100100010 Mobile friendly website and basic application 00111010101001001000 1010101001110101010010Leader Multichannel to deliver ultimate convenience 110100111001100100010 Drive sales via mobile 00111010101001001000 1010101001110101010010 Reduce cost to serveShaper Grounbreaking services 110100111001100100010 00111010101001001000 Active partnerships 1010101001110101010010 First mover in unbanked and new markets Innovation Edge April 2012 | MOBILE BANKING page 10Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  11. 11. Call Centre $4.00 Additive Mobile Banking Additive Mobile Banking adds to the existing TRANSACTION COSTS BY business model has two main objectives: in- BANKING crease customer stickiness and reduce op- CHANNELBranch erating expenses by having a unified infra- $3.75 structure (for example, CCB). In general, the bank offers Mobile Banking as a complement with its other channels (please see the issue No 1 for more information regarding banking IVR channels). This model is prevalent in devel- $1.25 oped countries or metropolitan areas in de- veloping countries. ATM BENEFITS OF ADDITIVE MOBILE $0,85 BANKING INCLUDE: ONLINE  Migration of customer transaction $0,17 to the lowest cost channel. MOBILE $0,08  Adds to the customer-centric business model. source: Tower group. Fiserv. Mcom 2009  May help banks to generate new value propositions and revenue opportunities, such as mobile payments and cross-sell- ing/upselling opportunities. Innovation Edge April 2012 | MOBILE BANKING page 11Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  12. 12. In general,transformative Transformativemobile banking Mobile Bankingare prevalentin rural areas Business Modelsin developingcountries and out Transformative Mobile Banking creates newof footprint value for banks by providing access to newareas in developed Customer Segments, thus offering bankscountries. new sources of revenues. In other words, they can help banks go where it couldn’t go with existing business models (BM). Transfor- mative Mobile Banking aims to develop new customers (unbanked and underbanked)BANK-LED MODEL through the lowest-cost transaction channel via a “branchless” strategy. This model is ei- ther led by a bank, an MNO, a 3rd party (for example, a mobile payment provider), or as a joint venture between two or more par- ties. The concept of ecosystem is important here, as the banks’ skill and experience inMNO-LED MODEL ecosystem management will likely become a key skill to operate these BMs effectively. In general, transformative mobile banking are prevalent in rural areas in developing coun- tries and out of footprint areas in developed countries.3RD PARTY-LED MODEL Thus far, three main Transformative Mobile Banking Business Models have emerged: Bank-led models, Mobile Network Operator (MNO)-led models, and 3rd party-led models. Innovation Edge April 2012 | MOBILE BANKING page 12Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  13. 13. BANK-LED MODELThe banks offer strong capabilities in treasury, risk management, and fraud detection; and access to capital mar-kets and investment opportunities. However, in developing countries with a large share of population lackingfinancial sophistication, all the aforementioned strengths vanish. Traditional interest rate models do not applyto low-income customer base; the infrastructure is not cost effective; and unbanked customers are not alwaysaware (and may not even care) of the bank’s brand.FINO Bank (India) MCB Bank (Pakistan) Innovation Edge April 2012 | MOBILE BANKING page 13Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  14. 14. MNO-LED MODELThe MNOs offers their large customer base a easy to use financial transaction services with their own distributionmodel. MNOs can leverage their customers’ need to buy airtime citizens in developing countries have and facilitateperson to person remittances and bill payments to increase their ARPU (average revenue per user). M-Pesa (Kenya-Tanzania) G-Cash (Philippines) Innovation Edge April 2012 | MOBILE BANKING page 14Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  15. 15. 3RD PARTY-LED MODEL3rd parties, usually technologically driven companies, have strong technology capabilities. However, they lackthe bargaining power over larger banks and MNOs and certainly lacks the capillarity of an MNO’s distributionnetwork.Yellow Pepper (LatAm & Caribbean)Wizzit (South Africa) Innovation Edge April 2012 | MOBILE BANKING page 15Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  16. 16. Half full or Half Empty? Mobile Banking possibly can add to or even transform the retail banking business model by offering anytime, anywhere access to financial products and services. As banks explore the opportunities and benefits, they must be wary of the complications that also come with them. Innovation Edge April 2012 | MOBILE BANKING page 16Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  17. 17. W hen Mobile Banking technologies and its components are “put together” theright way, according to the EMFA & McKinseyreport, they can “collectively turn it into a uniquevalue proposition. … This effectively means thatbank customers can ‘meet’ their bank everyday, albeit remotely. These features plus a flexi- Some of the offers will result in the creation of new valueble cloud and ‘app’-based technology platform propositions for customersenables a more rapid development and inte- Percentage of banks currently offering these features:gration with third party products.” The benefits Information reportingof mobile devices are: 77% Alert messaging 73%  Anytime, anywhere availability Money transfers 64%  Unique IDs (and their use), specific Recurring bill payments 58% to each customer Check deposits  Simple to use, usually with rich User 55% p2p payments Experience 46%  Enablement of Location Bank location services 40% Based Services (LBS) Adding payees through a mobile application 35%  “Go to” devices for consumers Statementssource: EFMA and McKinsey & Co. | The State and Future of Mobile 34%Banking in Europe. October 2011. p. 5. Administrative functions 34% Funding cardsWith the aforementioned benefits of mobile 28% Mobile wallettechnologies, banks can offer value proposi- 27%tions. Personal financial management 25% Location based merchant offers or coupons 20% Click to call 18% NFC or proximity payments 17% Loyalty rewards 15% Coupon offers 12% Innovation Edge April 2012 | MOBILE BANKING page 17Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  18. 18. RISKS Like all goo d things in to co m e h a life, succes nd in hand s seems and Mobile with challe Banking is nge s cording to no exceptio a recent su n. Ac- by KPMG re rvey condu garding mo c te d age; securit bile bankin y, technolo g u s- and regulat gy adoption ion are the , cos t , lenges face biggest cha d by mobile l- first two ch banking. Th allenges ar e s u m e r co n c e related to e rn s a n d t h co n - lenges are e latter two provider re chal- lated conce source: KP MG | Moneti rn s .place in the z ing mobile: payment va How banks lue chain. J are preserv uly 2011. p. ing their 11. Innovation Edge April 2012 | MOBILE BANKING page 18Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  19. 19. Customer related wet towel around the warm fuzziness of mo- bile banking, stating that most mobile bankingconcerns “is it safe?” applications are used to check balances, rath-Security is the number one risk for banks and er than making payments (globally): “Nearlyis also a key barrier for consumer adoption. all the interactions on mobile so far have beenIt’s been noted by some industry observers checking balances, … “That doesn’t sound like athat the EFMA & McKinsey report fails to way to make money. ”Adding to this, regulation/mention security (at all). Nonetheless, both legislation is also perceived to shrink margins,mobile banking providers and customers making mobile banking a bitter pill to swallow. source: ITNews | Gartner casts shad-clearly place it at the top of the list. Mary Mo- ows on mobile banking. July 2011.nahan, adirector at Javelin Research, also ad-dresses the concern for security. She states, Specifically in developing markets, banks“The main reason consumers don’t move to need to also understand ecosystems andmobile banking is because of security con- manage it well to leverage the mobile bank-cerns, … Consumers want to know that their ing opportunities. Given this, inexperiencemobile interactions and transactions are en- and unclear management objectives relatedcrypted, and they want some assurance that to ecosystems may pose as risks or barriersthey will be reimbursed for losses associated for banks, such as not understanding thewith a mobile-banking breach.” importance of agents or the logic of MNOs’source: BankInfo Security | Mobile Banking: Consumer EducationNeeded. November 2011. business models.Also, customer education or awareness is a key In addition, especially in transformational mo-element for mass-adoption of mobile banking, bile banking, MNOs pose a risk in that theyboth in mature and emerging markets. need to find a business model that works. As mentioned earlier in the mobile technologyProvider related overview, while they can be valuable part- ners for mobile banking, they can place de-concerns: “Show me tours ahead by delaying anytime, anywherethe money!!!” capabilities.Gartner analyst, David Furlonger, during theBanktech Summit in Sydney wrapped a cold, Innovation Edge April 2012 | MOBILE BANKING page 19Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  20. 20. globalsnapshots What´s going on around the world in mobile banking? the BBVA Conceptual “pictures” of experience mobile banking practices are presented, covering 12 countries in 4 continents. Mobile World Innovation Edge April 2012 | MOBILE BANKING page 20Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  21. 21. GLOBAL SNAPSHOTS Mobile WorldACTIVOBANK (PORTUGAL) ANDMILLENIUM BCP (POLLAND)Recognized as the Best Mobile Bank-ing in Europe award by Global Fi-nance Magazine, ActivoBank and Mil- SCOTIABANK (CANADA)lenium BCP mobile banking solutions ScotiaBank is Canada’s most international bank, with global pres-are available via a native app for the ence across the Caribbian, Central America, Latin America, andAndroid and iOS devices, as well as Asia. ScotiaBank offers “triple play” mobile banking solutions:a light browser application for otherphones. The mobile banking solution “App Mobile Banking” allows customers to check accountsoffers customers standard banking (personal, small business, borrowing and investing), transfersolutions, such as account balance funds between Scotiabank accounts, pay bills, send and receiveand activity, payments, and card man- e-Transfers, send Western Union money transfers, and findagement. Additionally, the app offers nearby branch or ATM on smartphones (iOS and Android)branch and ATM location information, “Browser Mobile Banking” allows customers to check per-FX rates, information regarding up- sonal and small business accounts, pay bills, transfer fundscoming payments, simplified activa- between Scotiabank accounts, pay bills, send and receivetion, application update information, e-Transfers, send Western Union money transfers, andand other customer centric features. find nearby branch or ATM on WAP enabled phones. “Text Mobile Banking” allows customers check account bal- ances, view the last 5 transactions, and view credit card informa- tion (available credit, minimum payment, and due date) via SMS. Innovation Edge April 2012 | MOBILE BANKING page 21Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  22. 22. GLOBAL SNAPSHOTS Mobile World CITI MOBILE – CITIBANK Citibank’s portfolio of Mobile & Tablet Banking so- lutions is comprised of “Citi Text” (SMS), “Citi Mo- bile for Smartphones” (Mobile Browser), “Citi Mo- bile Apps” (Custom Applications), and “Citi Tablet Apps (Custom Applications); essentially, a triple play. Citi’s solutions support iPod, iPhone, iPad, Android devices, and Kindle Fire. Mobile banking solutions include from making account balance inquiries, transaction history, pay bills and track payments, deposit checks (RDC), see recent activi- ties, transfer money between accounts, perform p2p payments, and track rewards programs.CHASE MOBILE (JP MORGAN CHASE)Chase offers the complete combo: text, browser,and app based mobile banking solutions. The appoffers the most functionalities; as it enables custom-ers to check account balances and transactionhistory, pay bills and credit cards, transfer moneybetween accounts, make p2p payments, and de-posit checks remotely (RDC). Chase supports theiOS, Android, Kindle Fire, and Blackberry mobileoperating systems. Furthermore, the app offersa comprehensive contact directory (with auto-dial) and search for the nearest branch or ATM. Innovation Edge April 2012 | MOBILE BANKING page 22Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  23. 23. GLOBAL SNAPSHOTS Mobile WorldBANK OF AMERICAAs early as 2007, Bank of America (BofA) launched itsfirst mobile banking services. Today, there are more than9.5 million customers actively using mobile banking solu-tions; which includes a mobile website, text banking, andnative apps. Currently, BofA offers native apps for theiPhone, iPod Touch, iPad, Blackberry, Android, WindowsSmartphones, and (most recently) Kindle Fire operatingsystems (OS). Regardless of the OS, the BofA’s mobilebanking apps offers the same functionality, including ac-count overviews, bill pay, and fund transfers. According toBofA’s mobile channel executive, “customers can expectadditional features for its mobile apps in the coming year.” ICBC (CHINA) ICBC is the winner of two AppStore awards in China: Best iPhone Financial App of the Year and Best iPad Financial App of the Year. Aside from the standard fea- tures, such as account management, money transfer, and mobile phone recharge; it also offers value-added features, including foreign exchange, securities trading, investment funds services (it even makes recommenda- tions!!!), and allows users to buy and sell precious metals. Innovation Edge April 2012 | MOBILE BANKING page 23Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  24. 24. FINO (INDIA)FINO is an Financial Inclusion Solutions and Services company; GLOBALwhich is promoted by public and private sector banks (including SNAPSHOTS Mobile Worldthe ICICI Bank), insurance companies, and the International FinanceCorporation. They are headquartered in Mumbai, India. FINO hastwo main lines of business: Technology products and business cor-respondence services. As a technology provider, the company of-fers solutions which enable financial inclusion, micro-finance, andremittances. As a business correspondence services company,FINO offers its agent network to perform the “last mile” services for Transformativefinancial services companies. bank-led modelsFINO employs over 2,500 employess and has a solid agent net-work (which is 20,000 strong), spread across 239 offices. Theagents are equipped with GPRS enabled handheld biometricauthentication which reads the customers’ smart card informa-tion. By offering “doorstep” banking and other financial serviceswith cost-effective transactional costs, FINO is currently serving35 million customers across 24 states. The company purportsthat their customer acquisition rate is around 50,000 per day. Innovation Edge April 2012 | MOBILE BANKING page 24Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  25. 25. MCBANK (PAKISTAN)MCB Mobile was launched in 2009, which was a joint collabora- GLOBALtion between MCB Bank Limited and Fundamo. MCB Mobile was SNAPSHOTS Mobile Worlda pioneer by delivering a cost-effective banking solution outsideof their branch footprint area. MCB Mobile offers banking ser-vices to the underbanked and unbanked consumers who gen-erally have mobile phones. Customers of MCB Mobile can viewaccount balances, transaction history, pay bills, make payments,transfer funds between accounts, “top off” mobile phones. Transformative bank-led models Innovation Edge April 2012 | MOBILE BANKING page 25Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  26. 26. M-PESA (KENIA-TANZANIA)Developed by Vodafone and deployed by their affiliate, Safari- GLOBALcom, in Kenya; m-Pesa has been a Cinderella success story for SNAPSHOTS Mobile World“transformative” mobile banking led by an MNO, surpassing the14 million customers since its launch in 2007. Not bad for 5years of work.M-Pesa offers a wide range of financial services, including view-ing and managing account(s), paying bills, making payments,buying airtime, making deposits and withdraws (branchless Transformativebanking), and transferring funds. Additionally, M-Pesa also al- MNO-led modelslows customer to buy tickets (m-ticketing) and pay school fees.All of the features of M-Pesa is made available via a featuredphone. Swipe to see mo Innovation Edge April 2012 | MOBILE BANKING page 26Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  27. 27. G-CASH (PHILIPPINES)An internationally acclaimed micro payment service, G-Cash of- GLOBALfers banking services via SMS. G-Cash customers can transfer SNAPSHOTS Mobile Worldmoney, pay bills, buy airtime, and make payments via a networkof government agencies, utility companies, cooperatives, insur-ance companies, remittance companies, universities, and com-mercial establishments. Also, G-Cash customers can access theservice via basic mobile phones or the internet. Transformative MNO-led models Swipe to see mo Innovation Edge April 2012 | MOBILE BANKING page 27Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  28. 28. YELLOW BANKFounded in 2004, the Miami-based Company is the recipient of GLOBALthe first IFC (World Bank) equity investment in a mobile financial SNAPSHOTS Mobile Worldnetwork company in the Americas. With 3.6 million unique us-ers in nine countries, processing over 18 million monthly trans-actions, the firm has been selected by more than 40 banks andstrategic partners in the region.Yellow Pepper’s most promising product is its mobile wallet, aninnovative bank account that the user manages via simple text Transformativemessages from their mobile phone, never having to set foot on 3rd party-leda bank branch. According to Fast Company the company in Hai- modelsti had over 110,000 wallets with Digicel, a mobile phone carrierthat owns 32 networks from the Caribbean to the Pacific withover 11 million customers and Scotia Bank Haiti. With the fastgrowth of the service mobile wallets could number in the mil-lions as the service is expanded to other parts of Latin Americaproviding much needed financial inclusion to the bottom of thepyramid. Swipe to see mo Innovation Edge April 2012 | MOBILE BANKING page 28Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  29. 29. WIZZIT (SOUTH AFRICA)Wizzit offers a secure and efficient payment mechanism to the GLOBALunbanked and underbanked consumers in South Africa. The SNAPSHOTS Mobile Worldcompany offers mobile transactional services via a featuredphone (and now online). The services allows customers tomake p2p transfers, buy airtime, pay bills, make payments, andoffers a Maestro debit card. Wizzit was conceived in 2002 andlaunched in 2005. Along the way, the company had to discovercustomer needs, while making it affordable, and secure a bankpartner, a pretty impressive feat when considering that it is one Transformativeof “new to the world” innovation (no instructions were included). 3rd party-led models Swipe to see mo Innovation Edge April 2012 | MOBILE BANKING page 29Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  30. 30. Generally, banks have limited choice when Mobile Banking Technology deploying mobile banking technologies: DIY Platforms (Do It Yourself), Off the Shelf Products, or a mix Providers of the two. Below, leading providers of OTSFUNDAMOSouth Africa-based Fundamo, acquired by Visa inJune 2011, is a leading platform provider of mobilefinancial services for mobile network operatorsand financial institutions in developing economies.Fundamo has more than 50 active mobile financialservices deployments across more than 40 coun-tries, including 27 countries in Africa, Asia and theMiddle East. Fundamo’s deployments currently havea base of more than five million registered subscrib-ers and the potential to reach more than 180 mil-lion consumers with mobile financial services.The Fundamo Enterprise Edition mobile servicesplatform includes Mobile Banking (which deliversAdditive Banking and is typically for financial institu-tions wishing to provide mobile banking as an addi-tional electronic channel to access existing accounts)and Mobile Wallet (which delivers TransformationalBanking, typically for mobile network operatorsand financial institutions who want to address newmarket segments with a differentiated offering). Innovation Edge April 2012 | MOBILE BANKING page 30Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  31. 31. FINACLE (INFOSYS)Finacle solutions address the core banking, e-banking, mobile banking, Islamic banking, treasury,wealth management and CRM requirements ofretail, corporate and universal banks worldwide.Finacle mobile banking solution provides bank-ing services through SMS, GPRS/ 3G and USSD-enabled handsets, leveraging a single platform.The Mobile Banking and Payments module includesaccount management, deposits, funds transfer, billpayment, remote deposit capture, Forex, chequemanagement, ATM/ Branch locator, remittances,peer-to-peer payments, business-to-business pay-ments and contactless payments. The Mobile Fi-nancial Management module adds analysis tools,transaction tagging and product comparators. Valueadded services include mobile commerce, mobileticketing, mobile top-up for prepaid card, mobileadvertising, mobile remittances to charity causes, MONITISEmobile wallet, stock trading services, and mobile Monitise plc is a British technology company de-virtual financial advisory through video chat. livering mobile banking, payments and commerce solutions. As well as partnerships with most UK high street banks, Monitise provides services to over 250 financial institutions in the United States, has more than 6 million users worldwide, with live services in the UK, the US, India and Africa, and has a global partnership with Visa Inc to deliver its services to more than 1.9 billion card-holders. Monitise’s flagship product, Mobile Banking, enables a wide range of services including bank and credit card management, mobile top ups, transfers and payments. In addition, savings and lending prod- ucts can also be managed. It allows a variety of customer-configurable alerts, delivered either via SMS or smartphone ‘push’ notifications. It can also act as a secure interactive ‘CRM’ channel between the bank and their customers, enabling service and sales opportunities such as card activation, lost/ stolen card management and personalized offers. Innovation Edge April 2012 | MOBILE BANKING page 31Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  32. 32. Amongst mobile banking pundits, custom-builtnative apps are the holy grail, which allows GLOBALbanks to leverage the unique properties of SNAPSHOTSeach device to provide the highest level of The BBVApersonalized, customer experience without experiencehaving to depend on 3rd party providers.BBVA’s award winning mobile banking appsenables anytime, anywhere banking for ourcustomers, making a perfect fit with ourCustomer Centric Bank (CCB) framework:either as part of an integrated multi-channelstrategy (Additive banking: One of Many) or aspart of a branchless banking strategy(Transformative: One and Only). Windows iPhone Android phone 7 BlackBerry iPad See the screenshots in the next pages Innovation Edge April 2012 | MOBILE BANKING page 32Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  33. 33. GLOBAL SNAPSHOTS The BBVA experience iPad Innovation Edge April 2012 | MOBILE BANKING page 33Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012
  34. 34. GLOBAL SNAPSHOTS The BBVA experience iPad Innovation Edge April 2012 | MOBILE BANKING page 34Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. © copyright BBVA 2012

×