Lecture part of the IAB Digital MasterClass 2015 held under the guidence of New Bulgarian University and IAB Bulgaria. The lecture covers the digital in banking and more specifically in electronic channels in banking. The lecture concerns case study of Alpha Bank Bulgaria and the e-channels used by the bank.

1. February 2015
ELECTRONIC CHANNELS
IN BANKING
Nikolay Spasov
Business & Project Development Manager
Alpha Bank Bulgaria

2. Overview: Web & Banking
or how web world in banking has progressed in decade plus time...
• Static website
• Alternative publishing means
• Constrained budgets
• Every technocrats wish list
Pre Y2k
• Reactive websites
• Web as a add-on revenue model
2000-2004
• Interactive web portals
• Web as a Brand nurturing channel
2005-2007
• CRM / SCM Integration
• Usability best practice integrated
• Social interactivity web 2.0 initiated
• Multi-channel Deployed
2007-2013
• Customer experience framework
• Multi-technology stack
• Virtual world incorporated
• Channel Agnostic coverage
2014 +
2Source: TATA Consultancy Service - Internet Banking Channel, A Case For Comprehensive Usage

3. Overview: Evolution of Channels in Banking
or the way to transfer traditional banking in new era...
3Source: A Market Leader in Ovum's Decision Matrix – Digital Banking Trends in 2014 – Webinar Recap
SINGLE
CHANNEL
Customer and
bank have a single
touch point
BRANCH
CUSTOMER
MULTI -
CHANNEL
CUSTOMERS
Customer sees brand
through multiple touch points
with bank using siloed
communications
BRANCH WEB ADS
CUSTOMER
CROSS -
CHANNEL
BRANCH WEB ADS
Customer sees
unified brand through
many touch points.
Bank has single
customer view
OMNI -
CHANNEL
CUSTOMER
ADS MOBILEWEBBRANCH
Customer has holistic brand
experience.
Bank leverages unified view of
customer

4. Overview: Digital Era & Banking
where the focus is going...
4
Branch-generated revenue growth
is becoming more challenging
Transactions processing and customer
service are becoming increasingly
independent of the branch channel
Customer demographics are shifting,
making Generation Y and ethnic groups
vitally important.
Y
New technologies are gaining
widespread adoption, allowing
customer relationship management to
become channel independent.
WEB MOBILE
Source: Evolving Models of Retail Banking Distribution – Deloitte Center for Banking Solutions

5. e-Banking Definition
5
The automated delivery of new and traditional banking
products and services directly to customers through
electronic, interactive communication channels Internet
banking (or E-banking) means any user with a personal
computer and/or other mobile device and a browser can
get connected to her/his bank’s website to perform any of
the virtual banking functions
“
”
Source: Deloitte Center for Banking Solutions

6. e-Banking History
6
how it all started...
Since the early 1980s
banks are constantly
pursuing innovations
First internet banking is
brought to Nottingham
Building Society by Bank of
Scotland - HOMELINK
Online banking is built into
Microsoft Money software.
More than 100 000
households being accessing
bank accounts online
Stanford Credit Union
creates the firs online
banking website
Source: Online Banking Report – Dec 2013

7. e-Banking History
7
how it all started...
19 million US households
are accessing bank
accounts online
Yodlee creates the first
account aggregation
software
Rules & regulations for
remote authentication and
account access
Direct banks begin to offer
online service
Personal finance platforms
gain popularity
Source: Online Banking Report – Dec 2013

8. e-Banking History
how it all started...
Source: Online Banking Report – Dec 2013
Apple - iPhone
54 million US household
uses online banking
US banks initiate
consolidation of branches
1/3 of consumer experience
financial difficulties
40% of customers would
benefit form personal finance
management tool

9. e-Banking History
how it all started...
Online banking goes massive
E-services platforms
emerging
Mobile cross banking platforms
Source: Online Banking Report – Dec 2013

10. Why e-Banking?
10
demanding
ATM

11. e-Banking Varieties
11
Electronic Information Transfer System
(Passive e-Banking)
Fully Electronic Transactional System
(Active e-Banking)

12. e-Banking Benefits
12
for the bank...
GLOBAL
PRODUCT VARIETY
FLEXIBILITY
NO FIXED LOCATION
LARGE CUTOMER
DATABASE
PROFITABILITY
COST REDUCTION
BRANCH OPERATION
EFFECTIVNESS

13. e-Banking Benefits
13
for the customer...
AVAILABILITY
BALANCE INQUIRY
CURRENCY RATES
MONEY TRANSFERTRANSACTION HISTORY
LOW FEES
ANYWHERE
BANKING

14. % Of Users That Use Particular Channel
14
more than once in the past 30 days
Source: ComScore, Inc. , courtesy of comScore, Inc.

15. Top Channel Preference By Banking Channel
15Source: ComScore, Inc. , courtesy of comScore, Inc.

16. Top 10 Countries By e-Banking Penetration
16
for 2013 in %
Source: ComScore, Inc. , courtesy of comScore, Inc.

17. e-Banking Penetration Across Europe
17
for 2013 in %
Source: ComScore, Inc. , courtesy of comScore, Inc.

18. Where Are We?
18

19. How Often Do You Use e-Banking?
19Source: Customer Experience Research 2014 - Gartner

20. 3 Most Used Transaction Types
20Source: Customer Experience Research 2014 - Gartner

21. Digital Is Everywhere…In Banking
21
WEB PLATFORMS MICRO WEB SITESCORPORATE WEB SITES
INTERNAL WEB TOOLS
VIDEO CHANNELS
MOBILE WEB SITES APPS
SOCIAL PRODUCTS

22. Digital In Alpha Bank Bulgaria
22
CORPORATE WEB SITES
WEB PLATFORMS
MICRO WEB SITES
MOBILE WEB SITES
INTERNAL WEB TOOLS
APPS
VIDEO CHANNELS
PRODUCTS

23. HOUSING LOANS
To feel the coziness of your new home
CONSUMER LOANS
For everything that you may need
DEBIT AND CREDIT CARDS
To make the most of your shopping
SAVINGS
Safety for the future
SERVICES
For more convenient banking on the go
Alpha Bank Products & The Digital
23

24. Corporate Web Site
24

25. Corporate Web Site
25

26. Corporate Web Site
26

27. Corporate Web Site
27

28. Corporate Web Site
28

29. Corporate Web Site
29

30. Corporate Web Site
30

31. Corporate Web Site
31

32. Web Platform – Personal Loan Advisor
32

33. Web Platform – Personal Loan Advisor
33

34. Web Platform – Personal Loan Advisor
34

35. Web Platform – Personal Loan Advisor
35

36. Web Platform – Personal Loan Advisor
36

37. Web Platform – Personal Loan Advisor
37

38. Web Platform – Personal Loan Advisor
38

39. Micro Web Site – Alpha e-Services
39

40. Micro Web Site – Alpha e-Services
40

41. Micro Web Site – Alpha e-Services
41

42. Micro Web Site – Alpha e-Services
42

43. Micro Web Site – Alpha e-Services
43

44. Micro Web Site – Alpha e-Services
44

45. Micro Web Site – Alpha e-Services
45

46. Mobile Web Site – DYNAMIC & Ultima
46

47. Mobile Web Site – DYNAMIC & Ultima
47

48. Mobile Web Site – DYNAMIC & Ultima
48

49. Mobile Web Site – DYNAMIC & Ultima
49

50. Mobile Web Site – DYNAMIC & Ultima
50

51. Mobile Web Site – DYNAMIC & Ultima
51

52. Mobile Web Site – DYNAMIC & Ultima
52

53. Mobile Web Site – DYNAMIC & Ultima
53

54. 54
Internal Web Tools – Intranet

55. 55
Internal Web Tools – Intranet

56. 56
Internal Web Tools – Intranet

57. 57
Internal Web Tools – Intranet

58. 58
Internal Web Tools – Call Centers Web Tool

59. 59
Internal Web Tools – Call Centers Web Tool

60. 60
Internal Web Tools – Call Centers Web Tool

61. 61
Internal Web Tools – Alpha Sales Tool

62. 62
Internal Web Tools – Alpha Sales Tool

63. 63
Internal Web Tools – Alpha Sales Tool

64. 64
Internal Web Tools – Alpha Sales Tool

65. 65
Internal Web Tools – Alpha Sales Tool

66. 66
Internal Web Tools – Alpha Sales Tool

67. 67
Internal Web Tools – Alpha Sales Tool

68. APPS – Mobile Banking

69. 69
APPS – DYNAMIC App

70. 70
APPS – Emblematic Buildings

71. 71
APPS – Emblematic Buildings

72. 72
APPS – Emblematic Buildings

73. 73
APPS – Emblematic Buildings

74. 74
APPS – Emblematic Buildings

75. 75
APPS – Emblematic Buildings

76. 76
APPS – Emblematic Buildings

77. 77
YouTube Channel

78. 78
YouTube Channel

79. 79
YouTube Channel

80. 80
Social - Linkedin

81. 81
Social - Linkedin

82. 82
What is the first thing you reach in the morning?
Your bed partner, yourself or your phone?
Simon Bond
Chief Marketing Officer

83. 83
THANK YOU!