Mobile Banking 2011: Clairmail

Next
Genera*on
Mobile
Banking

©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

Agenda

•  Key Trends in Mobile
•  Benchmarks for Mobile Banking – Europe
•  Benchmarks for Mobile Banking – ROW
•  Channel Growth Considerations


Key
Trends
in
Mobile


Key Trends in Mobile Banking
•  La Caixa
http://www.youtube.com/watch?v=Gf5Qa89QAI8

4 ©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

Mobile
banking
dates
back
to
2001

2001
2002

Aug
2001
Apr
2002

Feb
2001
SEB
(Estonia)

La
Caixa
launches
HSBC

launches
SMS
launches
P2P

GPRS-‐based
payments
using

mobile
internet
alerts
and

no*ﬁca*ons
SMS

banking

Dec
2002

Santander
and

Jan
2002
BBVA
launch

Mar
2001

Nordea
launch
Mobipay

Bankinter

“always
on”
payments
scheme

launches
SMS

mobile
banking
in
in
Spain

alerts
and

Finland

no*ﬁca*ons

5

Mobile
banking
1.0
primarily
focused
on
extending
OLB

Mobile
•  No*ﬁca*ons
and
alerts

banking
•  Account
management

1.0
•  SMS-‐based
payments

6

Key
trends
in
mobile:
From
mobile
banking
1.0
to
next-‐
genera*on

Mobile
Distribu*on
Payment

banking
1.0
channel
method

Mobile

Standalone
Standalone
driving

channel
business
digital

strategy

7

Challenges
driving
this
mobile
banking
evolu*on

Technology

Customer

Regula*on

behavior

Growing

pressure
on

OPEX
and

margins

Mobile
centric
innova*on
focused

on
diﬀeren*a*ng
services

8

Benchmarks
for
Innova*on
-‐
Europe


Mobile
as
a
standalone
channel-‐
La
Caixa

10

Mobile
as
a
standalone
channel-‐
La
Caixa

11

Mobile
as
a
standalone
channel-‐
Akbank

•  SMS
and
Mobile
internet

managed
with
their
own
P&L,

and
embedded
within
a
more

tradi*onal
channel
structure

•  SMS
branch
genera*ng
over

$1
million/month
through

service
fees,
transac*on
fees,

and
mobile
speciﬁc
products

•  Mobile
internet
mone*zed

through
eﬃciency
gains;
low

value
transac*ons
migrated

from
more
expensive
channels

12

Mobile as a distribution channel- Danske Bank

•  Smartphone
prolifera*on
has

driven
adop*on
to
point

where
it
is
now
considered
a

“full
blown
channel”

•  Currently
broadening
depth

and
reach
of
mobile
services
to

include
instant
loans
and

mobile
brokerage

•  Features
enhancement

focused
on
introducing

biometrics
and
CRM-‐driven

oﬀers


Mobile
as
a
distribu*on
channel-‐
Akbank

•  Akbank
began
distribu*ng

loans
on
mobile
telephones
in

2005
through
their
WAP
portal

•  Distribu*on
has
evolved
to

include
smartphone
apps,
SMS

and
banner
ads
at
non-‐bank

mobile
internet
proper*es
and

applica*ons

•  Garan*Bank
and
YapiCredi,

among
others,
responded
by

incorpora*ng
similar
features

to
their
mobile
banking
service

14

Mobile
as
a
distribu*on
channel-‐
Bankinter

•  Relevant,
contextual
offers

pushed
to
the
mobile
phone

through
messaging
pladorm,

triggered
by
credit
card/debit

card
purchases

•  ≈
3%
opt-‐in
rate
for
most

successful
offers,
at
a

significantly
lower
distribu*on

cost
than
tradi*onal
channels

•  Most
successful
with
low

value,
high
margin
products

such
as
consumer
finance,

travel
insurance,
etc.

15

Mobile
as
a
standalone
business-‐
Bankinter

•  Bankinter
partnered
with
KPN
in

2007
to
distribute
SIM-‐cards
under

a
branded
reseller
agreement

•  ≈10%
of
addressable
market

currently
using
Bankinter
SIM
card

•  Ini*al
value
proposi*on
included

free
SMS
and
mobile
internet

banking
to
s*mulate
channel

adop*on
(3x
greater
among
MVNO

customers)

•  Began
pilo*ng
NFC
through
its
own

MVNO
using
a
SIM-‐based
solu*on

16

Mobile
as
a
payment
method-‐
La
Caixa

•  In
2010,
La
Caixa
coordinated
a

SIM-‐based
NFC
mobile

payment
trial
in
Spain,

enabling
customers
and

merchants
with
proper

infrastructure

•  Results
included
+30%
increase

in
transac*ons
and
+23%
in

billing
during
trial

•  Next
steps
included

commercial
rollout
which

began
in
May
2011

17

Mobile
driving
digital
strategy

•  New
business
areas
introduced
to
mobile,

star*ng
with
brokerage
and
business
banking

•  Augmented-‐reality
being
used
for
discovery

•  Tablet-‐speciﬁc
sites
and
applica*ons
centered

around
account
management
(PFM-‐like
features)

•  Biometrics
and
security
being
introduced

•  SmartTV
applica*ons
prototyped
and
launched

18

Mobile
driving
digital
strategy-‐
Banco
Sabadell

•  Currently
at
70%
SMS
and
14%

web
/
app
adop*on
(as
%
of
OLB);

targe*ng
30%
by
YE
2013

•  Increase
will
be
primarily
driven
by

broadened
device
reach
and

enhanced
mobile
features

•  Device
strategy
now
includes

tablets
and
Windows
Phone

•  Broadened
features
with

introduc*on
of
mobile
brokerage

apps
and
RDC

19

Benchmarks
for
Innova*on
-‐
ROW


Mobile as a standalone channel- Wells Fargo


Mobile as a distribution channel- Information
Check
Low

Cleared
Withdrawal

Balance

SallieMae
BMO
Bellco
CU


Mobile as a distribution channel- Product delivery


Mobile as a distribution channel- CBA

•  Commonwealth Bank of Australia offering
Augmented Reality application which helps
users identify properties for sale
•  All public information on a specific property
published through the app
•  Interested in the property? Apply for a loan with
the push of a button on an app
•  Similar initiatives for properties in Spain with
Bankinter; used cars by Huntington Bank in US


Mobile
driving
revenue-‐
Bank
of
America

Mobile as a payment method- US Bank

Enter
recipient’s
Debited
from
Payment

email
address
payor’s
account
received
via
ACH


Mobile Channel Growth Considerations

Summary: Key Trends in Mobile

•  Extension of OLB à Stand alone channel
•  Account access à Distribution of information
à Call-To-Action
•  Customer Servicing à Product Distribution

•  Cost of Business à Fee Generator, Fee Preservation
•  Retail à Cross line of business

•  Generic information à Contextual (location, transaction
history, client tier)

•  Banking à Payment method


Mobile is Exploding Across All Vectors
•  Access
–  Device proliferation
–  Access Channels
–  Enrollment

•  Features
–  Account Access
–  Bill Pay
–  Alerts
–  Check Deposit
–  Enrollment
–  CSR / Mgmt Reporting
–  P2P Payments
–  Mobile Wallet
–  NFC

•  Bank business lines and customer segments
–  Retail
–  Credit & Loans
–  Consumer Payments
–  Marketing
–  Fraud

Planning for Mobile Explosion: Our recommendations

•  Mobile banking is more than just “Apps”
•  Use an enterprise platform
–  Facilitate growth of mobile channel

–  Manage feature proliferation

•  Transaction-based, two-way messaging capability


Questions

•  Questions?

•  Contact info-
–  Twitter: @afontao
–  Blog: http://www.mobilefiblog.com/
–  Andres.Fontao@clairmail.com


Thank
You


Mobile Banking 2011: Clairmail

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