Banking in 2025 will see significant changes in technology that impact how customers interact with banks. Personalized high-touch service will still be important but will be enabled through new technologies like beacon tracking and virtual/augmented reality. Customers will have more direct self-service options through improved digital and mobile banking platforms as well as next generation ATMs and smart watches. Payment systems will increasingly integrate new technologies and see the rise of digital/mobile/contactless payments and peer-to-peer transfers. Banks will need to focus on better communication and creating truly trusted relationships through always-on conversations on customers' preferred channels to maintain relevance in this changing landscape.

1. REIMAGINE
BANKING IN 2025:BANKING IN 2025:
How Will IT Change the
Way We Do Banking?

2. Hello!
We are…We are…
Dandy Ramdani
Ersaly Aisyah
Friska Ariani
Yohannes Ekaputra

3. Banking Industry 2025
(Related to Technology Change)

4. High Touch Personalised
ServiceService

5. ⊸Update alternative shops or websites where you
could buy the same products more cheaply.
⊸It could suggest which account to use for a
transaction based on how much money you have.
⊸Or it could even point out that it is a week until
payday.
⊸
⊸
payday.
⊸Beacon technology which can alert staff when a
disabled customer enters the branch, so staff know
more about their specific needs immediately.

6. Indirect Self-service for the
Wider MarketWider Market

7. ⊸Cross-selling financial services –Prime
customers' interests and create awareness before
having that conversation.
⊸Customer experience –Customer engagement
with both bank employees and interactive media.
⊸Drive-through banking –Today's digital
⊸
⊸Drive-through banking –Today's digital
signage can be easily placed outdoors, providing a
reliable, dynamic way to keep drive-through
customers informed.

9. Banking Industry
Nowadays
(Related to Technology Change)

10. E-BankingE-Banking

11. ⊸ Developing Internet and mobile technologies provide innumerable
service innovations for consumers.
⊸ Diversifying services are increasingly important for companies trying
to create a competitive advantage in the market, retain their
customer base, and cut costs (Laukkanen, 2016).
⊸ The banking sector has followed the recent trends in mobile
communications by adopting wireless banking applications for
⊸
communications by adopting wireless banking applications for
financial transactions and bank account management (Luarn and Lin
2005, Zhou et al. 2010)
⊸ As the newest delivery channel established by retail and
microfinance banks in many developed and developing countries,
m-banking is likely to have significant effects on the market (Safeena
et al., 2012)

12. Smart (or Branchless) Banking

13. ⊸ Branchless banking is another way of providing high quality
banking services to customers with the use of the next-
generation ATMs (Kurila et al., 2016)
⊸ Branchless banking were introduced in 2013 by Citibank as
‘Citibank Express Machines’, and provide nearly all the
services of a conventional bank branch (Holley 2013)
⊸⊸ The next-generation ATMs are the forerunners of the smart
banking industry
⊸ Offer almost all of the banking services without physically
visiting a branch and without requiring any special mobile
devices and Internet access

14. Source: BBA, 2015

15. Source : PWC, 2015

16. Mobile Banking in Indonesia
Survey result from MEF, Global association for mobile content and commerce
source : https://dailysocial.id/post/mobile-

17. How Will IT Change the Way We Do
Banking in 2025?
Service
Improving
Consumer
ExperienceExperience
Direct Payment
Better
Communications

18. Impacts on Bank
Services
Improved IT-Based Service

19. Bank Services
Branchless Banking Digitized Branch

20. Data

21. Data

22. Bank Services
Next Generation ATM

23. Video from Diebold

24. Bank Services
Smart-watches In-car apps
Using voice functionality, drivers can
check their account balance and
transfer funds, as well as locating
nearby branches and ATMs.

25. Data
Source : Sensor Data Survey. EY, 2015

26. Data
Source : FinTech Survey. EY, 2014

27. Impacts on Bank’s
Brand Strategy
Improving Customer Experience

28. Evolution of Data Processing
- The Speed of data transfer
- The lower Cost
Main IssueMain Issue
- Personal Financial Management
- Sending of highly tailored alerts and advice directly to the
customer
Types of ServicesTypes of Services

29. Everyday Bank

30. Survey

31. iBeacon Technology

32. Designed to deliver continuous content based on the precise location of a customer within a
branch, allowing for highly relevant messaging or special offers on products to be sent to
smartphone users at the exact time and place they are most useful.
How it works?How it works?
iBeacon Technology
Customers must first install the mobile app of the bank they are visiting and opt-in for
personalized promotional alerts. By providing the bank access, the bank could track activities
performed both online and in the branch in the past to customize both mobile and in-person
communication the moment they step inside the branch.
How it works in Banking?How it works in Banking?

33. Survey ResultSurvey Result
Consumer Acceptance of In-Store
Alerts

34. Impacts on Payment
System
Integrating more IT on Payment
System

35. Why Payments Industry is Attractive to
Disrupters?
⊸ It is a massive industry, with $26 trillion in global transactions
and billions of dollars in fees.
⊸ Ineffiiencies abound in almost every step of the
process—legacy architecture and decades-old protocols
⊸
⊸
process—legacy architecture and decades-old protocols
create delays, risks, and headaches.
⊸ Customers cherish convenience, so any solution enhancing
this attribute without much additional cost will be favorably
received.

36. Innovations Have Been Unleashed
⊸Online payments
⊸Mobile payments
⊸Contactless payments
⊸
⊸
⊸
⊸Contactless payments
⊸Peer-to-peer
⊸Cross-border remitances
⊸Cryptocurrencies
⊸Blockchain Technologies

37. Online Payments

38. Data

39. Mobile Payments

40. Data

41. Data

42. Contactless Payments

43. Data

44. Peer-to-peer

45. Data

46. Cross-border remittances

47. Data

48. Data

49. Cryptocurrencies

50. Data

51. Blockchain

52. Data

53. Impacts onImpacts on
Communication
Better Communication

55. Main Issue
• Customers are looking for more services
• Communicating with customer is the key
to successto success
Types of service
• More personal customer service
• Solve problems on real-time basis

56. Better Communications
For banks,
having a
Being able to
have a
Creating
genuinely
trusteddialogue with
their customer
base has never
been so
important
conversation,
anywhere and at
any time, is
something that
is now taken for
granted
trusted
customer
relationships
will continue to
be a bigger
challenge for all
businesses

58. “Any time a customer comes to
contact with any aspect of acontact with any aspect of a
business, is an opportunity to form
an impression”
Jan Carlzon, CEO Scandinavian Airlines System Group

59. What Customers Want
ConvenienceConvenience
Banking users
value the ability to
solve problems on
real-time basis
Banking users
value the ability to
solve problems on
real-time basis
Keep the personal
touch alive while
using remote self-
service channels
Keep the personal
touch alive while
using remote self-
service channels
Customers are
looking for more
services
Customers are
looking for more
services

60. Innovations
⊸Virtual Reality Headset
▫Oculus Rift, Samsung VR, etc
▫Computer-generated environment in which a person is
immersed

61. ⊸Augmented Reality
▫ What happening in
banks at the
moment
▫ Information about
the banksthe banks
▫ What floor do you
have to go

62. • Robots customer service

63. ⊸Embracing social media
▫Company’s Twitter account can
tweet back to the customer with a
custom link that works only for that
customer.
• Video Chatting• Video Chatting
– A face-to-face video
banking with a branch
manager, relationship
manager or with a centralized
executive
– Video monitors on some of
their ATMs

64. Opportunity & Threat
Opportunity
⊸Technology
⊸High efficiency of time & money
⊸Simplify the customer
experience
⊸
Threat
⊸Non-financial services firms
entering banking and payments
with innovative products,
respected brands, and massive
⊸
⊸
⊸Simplify the customer
experience
⊸Consumers need and want
financial advice
⊸Communities of interest
⊸New Markets
⊸Demographics
respected brands, and massive
customer bases (esp. Tech-firms)
⊸More complexity of bank’s
operation environment
⊸Regulations
⊸Digital banking has not been
tested during recession

65. Thank You
Any questions?Any questions?