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121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Next Generation Mobile Banking in Emerging Markets

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121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Next Generation Mobile Banking in Emerging Markets

  1. 1. Next Generation MobileBanking in Emerging Markets Ian WhiteheadDirector Retail and Business Banking, Commonwealth Bank Indonesia Bali, October 8th, 2012
  2. 2. In the Past,We Had to bePhysicallyPresent toObtain aProduct/Service
  3. 3. AndNOW…
  4. 4. What has triggeredthe CHANGE in the last10 years?
  5. 5. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in Banking Mobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  6. 6. The Growing YoungAge, Middle ClassPopulation
  7. 7. “Already, the working age (ages 15-64) population in developing markets is more than three times larger than that in developed markets, and is expected to surge 20% to more than four billion by the year 2025.” United Nation Older78% <45 years old Younger
  8. 8. “By 2030, Asia will host 64% of the global middle class andaccount for over 40% of global middle-class consumption with Indonesia middle class market forecasted to triple to 150 million by 2015.”
  9. 9. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in Banking Mobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  10. 10. The Shift inConsumers’Behaviors
  11. 11. Emerging Market lead the fastest growth in Social Network among the world# 4 in the World for Facebook #1 in the World for the Number ofUsers.. Posted Tweets...Indonesia is now at 43.06M, No. of Twitter users in Indonesia aregrowing over 21,000% 19.5M The 5th in the world for Twitter accounts
  12. 12. Mobile Phone Subscription as per Q1, 2012 Indonesia has the largest mobile phone market in Asia, after China and India with 260 million subscribers (est. 2012)…..with over 107% penetration rate
  13. 13. In Indonesia, ownership of internet capable mobilephone more than double the PC or Laptop
  14. 14. Indonesia has the largest Smartphone market inSouth-East Asia with a 62% penetration rate
  15. 15. Smartphone users are active users of Shopping,Productivity and Banking & Finance applications…
  16. 16. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in Banking Mobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  17. 17. The Transformationin Banking…
  18. 18. Banking “channels” have evolved significantly over the past 10 years to accommodate changing customers’ needs Face to Face interaction LowHigh Bank Internet Mobile ATM Call Center Branches Banking Banking Interconnectability & HighLow Convenience
  19. 19. Banking “channels” have evolved……. 2000  2004; Branch, ATMs & the emergence of call centers Branch ATM Call Center Internet Banking Mobile Banking • Inquiry • Live 24 hours • Inquiry • Cash Deposit • Inquiry • Cash • Cash Withdrawal • Complaint Withdrawal2000-2004 • • • Transfer Time Deposit Mutual Funds • Transfer • Credit cards handling • Basic transactions • Inquiry • Transfer thru SKN/RTGS  payment owned • Bancassurance • Automated by the bank • Bill Payment IVR response • Time Deposit • Mutual Funds • Bill Payment Shifting to Electronic • Standing Order • Inquiry2005-2009 • Cash Deposit receipt • Cheque book order • Internal Transfer • Mobile ATM • Bill payment • Online statement2010-2012 Weekend Banking • Mobile Cash • Real time transfer • Transfer thru SWIFT • Real time transfer • Time Deposit • Mutual Funds • Cheque deposit • ATM & Branch locator Banks location at • Paperless ATM2013-2015 customer convenience receipt (send to • MFD Redemption • MFD Redemption i.e mall customers • Online form app • P2P payment email) • P2P payment • Exchange Stock trade • Exchange Stock trade • Cheque deposit • Cheque deposit • Online chat with bank • Online chat with bank reps. reps.
  20. 20. Banking “channels” have evolved significantly….. 2005  2009: + call centre capability & Internet Banking… Branch ATM Call Center Internet Banking Mobile Banking • Inquiry • Inquiry • Live 24 hours • Cash Deposit • Cash • Inquiry • Cash Withdrawal  Withdrawal • Complaint • Inquiry • Transfer2000-2004 • Transfer • Transfer thru SKN/RTGS • Time Deposit handling • Credit cards • Basic • Mutual Funds payment owned • Bancassurance transactions by the bank • Automated • Bill Payment IVR response • Time Deposit • Mutual Funds • Bill Payment • Standing Order • Inquiry Shifting to Electronic2005-2009 • Cash Deposit • Cheque book order • Internal Transfer receipt • Mobile ATM • Bill payment • Online statement2010-2012 Weekend Banking • Mobile Cash • Real time transfer • Transfer thru SWIFT • Real time transfer • Time Deposit • Mutual Funds • Cheque deposit • ATM & Branch locator Banks location at • Paperless ATM2013-2015 customer convenience receipt (send to • MFD Redemption • MFD Redemption i.e mall customers • Online form app • P2P payment email) • P2P payment • Exchange Stock trade • Exchange Stock trade • Cheque deposit • Cheque deposit • Online chat with bank • Online chat with bank reps. reps.
  21. 21. Banking “channels” have evolved significantly…. 2010  today…channel interoperability & mobile… Branch ATM Call Center Internet Banking Mobile Banking • Inquiry • Inquiry • Cash Deposit • Cash • Cash Withdrawal Withdrawal2000-2004 • • • Transfer Time Deposit Mutual Funds • Transfer • Credit cards • Inquiry • Transfer thru SKN/RTGS  payment owned • Bancassurance by the bank • Bill Payment • Time Deposit • Live 24 hours • Mutual Funds • Bill Payment Shifting to Electronic • Inquiry • Standing Order • Inquiry2005-2009 • Cash Deposit receipt • Complaint • Cheque book order • Internal Transfer • Mobile ATM handling • Bill payment • Basic • Online statement transactions • Real time transfer • Automated • Transfer thru SWIFT IVR response2010-2012 Weekend Banking • Mobile Cash • Real time transfer • Time Deposit • Mutual Funds • ATM & Branch locator • MFD Redemption • MFD Redemption • Cheque deposit • Online form app • P2P payment Banks location at • Paperless ATM • P2P payment • Exchange Stock trade2013-2015 customer convenience receipt (send to • Exchange Stock trade • Cheque deposit i.e mall customers • Cheque deposit • Online chat with bank email) • Online chat with bank reps. reps.
  22. 22. Banking “channels”; 2013  convergence, interoperability, social channels, real time and channel preferences… Branch ATM Call Center Internet Banking Mobile Banking • Inquiry • Inquiry • Cash Deposit • Cash • Cash Withdrawal Withdrawal2000-2004 • • • Transfer Time Deposit Mutual Funds • Transfer • Credit cards • Inquiry • Transfer thru SKN/RTGS  payment owned • Bancassurance by the bank • Bill Payment • Time Deposit • Live 24 hours • Mutual Funds • Bill Payment Shifting to Electronic • Inquiry • Standing Order • Inquiry2005-2009 • Cash Deposit receipt • Complaint • Cheque book order • Internal Transfer • Mobile ATM handling • Bill payment • Basic • Online statement2010-2012 Weekend Banking • Mobile Cash transactions • Real time transfer • Automated • Transfer thru SWIFT IVR response • Real time transfer • Time Deposit • Mutual Funds • ATM & Branch locator • Cheque deposit Banks location at • Paperless ATM • MFD Redemption • MFD Redemption2013-2015 customer convenience receipt (send to • Online form app • P2P payment i.e mall customers • P2P payment • Exchange Stock trade email) • Exchange Stock trade • Cheque deposit • Cheque deposit • Online chat with bank • Online chat with bank reps. reps.
  23. 23. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in BankingMobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  24. 24. Mobile BankingCapability
  25. 25. Mobile Banking inIndonesia
  26. 26. The number of Mobile Banking users in Indonesia isestimated at over 8 million... VALUE SERVICES • Bill Payment BASIC SERVICES • Purchasing • Balance Info • ATM & Branch locator • Account Movement • E-Commerce Payment • Internal Transfer • Foreign Exchange & Interest Rate info • Interbank Transfer • Transfer to e-wallet/e-saving • Mobile Cash. www.klikbca.com BCA’s key points:Mandiri’s key points: • One platform offers• Well established flexibility options to• Very easy user use either m-BCA (via interface SMS) or KlikBCA (via GPRS etc)
  27. 27. With significant capability and functionality growth, and upgrades being released....Permata’s key points:• Mobile Cash – similar www.commbank.co.id like Cash withdrawal without ATM card on Commonwealth any Bank Permata Bank’s key points: ATM. • Interbank Transfer (domestic & international using www.cimbniaga.com foreign currencies) • Mutual FundsNiaga’s key points: Purchase & inquiry,• Transactions using • Time Deposit OTP (One Time Placement & inquiry. Password) sent through SMS ~in progress
  28. 28. Mobile BankingOverseas
  29. 29. Mobile Banking Overseas Today www.danskebank.com www.usaa.com• Instant mobile payments, • Stop payment on a• Currency exchange check• Stock trade • Use money manager• Live account status to track spending info • Add money to• Quick access to prepaid cards contact info • Make cash advance• GPS –and map – deposits enabled ATM & branch search• Intuitive design..
  30. 30. Mobile Banking Overseas Today www.maybank.com home.ingdirect.com • Personalization• P2P Payment features• Investing in stock • Connection to bank’ market social media• Enables customer to platforms to flip their mobile to customers switch the application to social media such • Smart and fun add- as Twitter/Facebook ons like Instant Rewards
  31. 31. Mobile Banking Overseas Today www.commbank.com.au • Kaching: Bump payment and peer to peer payment • NetBank – enables customers to take care their day to day banking • CommSec – enables customer to buy & sell stocks on the go and instant access to market updates
  32. 32. Use of Mobile Banking in IndonesiaToday…
  33. 33. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in Banking Mobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  34. 34. How will itChange the WayConsumersBank ?
  35. 35. Customer expectation of Mobile Banking is becoming ‘value-centric’ Configuration & Real Time personalization capabilityInteroperability of existing & Security – consumer new channels, e.g. and new and industry capability (NFC, e-Wallets) and client (& data) driven communications. Anytime, Anywhere Integrated and banking seamless…
  36. 36. Content Page The Changing Demography & Population The Shift in Consumers’ Behaviors The Transformation in Banking Mobile Banking Capability The Way Consumers will Bank The Way Banks will Integrate Channels & Growth
  37. 37. Integrating theChannel andGrowth…
  38. 38. Integrating fast growing channels, a customer centricstrategy & consumer confidence …….how?Balancing:1. Ease of access, privacy and security…2. Customer demands and bandwidth (technical)..3. Innovation  explosive growth and the need for regulation…4. Industry reputation and consumer confidence5. Requires collaborative engagement; Industry + Regulatory + Consumer (all working in sync).
  39. 39. Ian WhiteheadDirector of Retail and Business Banking Commonwealth Bank Indonesia

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