How wearable tech could change insurance and banking industries in the near future?

How wearable tech could change insurance and banking industries in the near future?
How wearable tech could change insurance and banking industries in the near future? Yvon MOYSAN Saint Germain Consulting & IESEG School of Management DIALOGKONFERANSEN 2015 25th of August 2015
Internet of Things key metrics and major trends
Internet of Things: key metrics • In 2015  4.9 Billions Connected "Things" will be in use, up to 40% from 2014 (1). • By 2020  This number will reach 30 billions (1) (1): Source: Gartner (Nov.2014)
Customers expectations and fears • Smartwatches (1) and Fitness trackers (2) are considered as the most useful wearables • High price (54%), privacy (31%), look (13%), comfort (13%) and health risks (10%) are the main reasons not to buy wearable technology (1): Source: Forrester Research (2): Source: Deloitte (Oct. 2014 )
What are the industries that will be impacted most by IoT ?(1) • Home: heating, smoke detector… • Car: notification of crashes, speeding, safety alerts… • Health: scales, fitness tracker watch, smartwristband… • Insurance and Bank: authentication, promotions based on geolocation, personalized insurance premium… (1): Source: Gartner
Property, Car and Health… How wearable devices will impact insurance business model and services ? …
Some of the most innovative international wearable initiatives are related to: • Personalized Insurance premiums based on personal behavior rather than risk factors such as postcode, gender, and age or vehicle type. • Discounts, promotions by meeting specific activity goals or behaviors • Stronger security through remote surveillance and various sensors that detect fires, dangerous gases and intruders, with alerts sent directly to your smartphone • Immediate assistance in case of accident.
Motaquote & Tom Tom “We’ve dispensed with generalisations and said to our customers, if you believe you’re a good driver […] we’ll even give you the benefit up front” Nigel Lombard, Managing Director de Fair Pay Insurance Fair Pay Insurance rewards ‘good’ drivers and includes: • A TomTom navigation device and an Active Driver Feedback that alerts drivers (dangerous itinerary), and provides traffic information updated every two minute. • An active Driver Feedback that monitors driver behavior and habits and send alerts in case of non responsible driving. • Insurance premiums are based on driving ability and behavior rather than risk factors such as postcode, gender, and age or vehicle type.
Discovery Discovery Vitality makes living a healthier lifestyle easier by giving you the tools and savings to help you earn Vitality points and get healthy. Vitality: health insurance + fitness trackers (Adidas micoach, Polar, Garmin ou Fitbug) • Personalization is not based on the insurance premium but on discounts you receive on items related to health or leisure (airlines, hotels, press, sport article, gym etc.) • The customer can earn points with health check online and/or in a clinic, sport center (HIV test, mammogram, Vitality online fitness assessment etc.), by making healthy choices (flu vaccination, non smocker’s declaration, and by walking (fitness tracker)
Oscar Wearables Offered As Reward To Fit Clients • $400 annual gym reimbursement. • A free Misfit Flash tracker (60$) • An opportunity to earn up to $20 a month in Amazon.com credits by meeting specific activity goals “We will never link this to anything punitive, and it will never enter our review process.” Mario Schlosser, CEO, Oscar Health Insurance
BNP PARIBAS CARDIF ITALY Homebox Habit@t: one bow and a home insurance • One box delivered with:  A smoke detector  2 water leak detectors  A mobile app. • In cas of trouble, the box send a notification to the mobile of the customer.
BNP PARIBAS CARDIF ITALY https://www.youtube.com/watch?v=dbmo1oo743M
Allianz Swiss Allianz Helpbox • Accurate and fast rescue thanks to GPS integrated system. • Automatic emergency call in case of accident • Assistance in case of emergency or car breakdown thanks to manual emergency call.
Crédit Mutuel Arkéa Main features • In case of fall, accident etc., assistance call center is directly alerted when senior push on the low button of the smartwatch • The senior is automatically geo located • The senior can talk to the assistance customer support that received information regarding its geolocation • Assistance customer support can then call friends and family or medical assistance if required The 1st banking smartwatch assistance for seniors app focusing on Dec 2014 « This app as a solution is mainly based on the design of the smartwatch that allows an intuitive and simple usage ». Yvon Le Bihan, COO Arkéa Assistance
Smartwatch, smart wristband, oculus rift virtual headset, woolen glove or even power suit… What are the most innovative international wearable initiatives in the banking industry ? …
Some of the most innovative international wearable initiatives are related to: • Overall customer experience improvement in branches • Commercial assistance to personal bankers • Banking services (bank account balance, personal financial management, savings, stocks portfolio…) • More convenient payments without credit cards • Cash withdrawals with a mobile App
Barclays s Main features • The trial takes place in Sheffield • An application on customers' iPhones to notify staff members when a customer with a disability has entered the branch and if they require any extra assistance. Barclays introduce iBeacon technology to assist disabled customers with in-branch banking “Beacons are the latest in a long line of innovative initiatives from Barclays designed to make our customers lives easier, which is particularly important for people with non-visible disabilities – something our customers have told us is an issue.” Elaine Draper, Barclays director of accessibility and inclusion
“When our customers walk into a branch, on an opt-in basis we can identify who they are without them having to identify themselves. That recognition is important.” Westpac's chief digital officer Simon Pomeroy iBeacon as an opportunity to add another dimension to customer service Main features Westpac • Special offers and other incentives sent to customers when they are in or walk past a branch • Alerts staff that a customer has arrived for a pre-ordered item and can remind the customer that they are in a place that has an item on their digital shopping list. • Customers who want faster recognition can upload their photo onto the mobile application (iBeacon is an opt-in service)
3rd Most Promising Idea. EFMA Accenture Distribution et Marketing Awards. 15th october 2014 in Barcelona Crédit Mutuel Arkéa Main features • A mobile app for customers to be detected by the beacon sensor located into the branch • Alerts staff in real time that a customer has arrived and the reason of the meeting iBeacon technology to improve customer experience into the branch
Oculus Rift test at Wells Fargo’s Digital Labs • Customers could use an Oculus Rift virtual-reality headset to virtually walk into a bank branch and talk to a teller. Main features Wells Fargo « We’ll have to see how society reacts, when we see a trend, we want to be ready » Jim Smith, EVP virtual channels Google Glass test at Wells Fargo’s Digital Labs Main features • Personal bankers would be able to authenticate customers by facial recognition (customers opt-in required) and have access to their personal informations
To provide a transparent assistance in real time to personal bankers Banque Populaire A google Glass App for personal bankers Main features In progress • Alerts staff that a customer has arrived • Provide access to customer information in real-time to suggest the more adapted products & services to customer. • Camera is used to take pictures and register official documents (ID card). • Access to competitors credit rate (car loans) • Cross selling proposals will appear (e.g. car insurance after car loan)
“[…] in Israel the use of Samsung smartwatches is the most popular. It is expected that in the next two years, tens of thousands of Israelis will join the thousands of Israelis who are already using these watches.” Bank Leumi Bank Leumi "Leumi SmartWatch": The First Banking App in Israel tailored for the Smartwatch Main features • Up-to-date information on the bank account balance and credit card charges without having to log into its account. • Notification of a new checkbook waiting at the bank branch • Notification of a new credit card sent by post mail • Alert that the credit limit in the bank account has been exceeded.
A budgeting app on smartwatches • Real-time analysis of recent spending activity • The app's spending meter turns red, green or yellow depending on how much the customer has spent overall in the current month versus the previous month and vis-a-vis its budget. • For instance, as a customer walks out of Starbucks, he'll get an alert telling him how much he just spent and whether he's in good shape budget-wise or should start using the office Keurig. • NFC Payment • Impulse saving • Apple Iwatch App In progressMain features Moven "We've gone beyond PFM into day-to-day gamification of financial wellness.“ Moven's founder and CEO Brett King.
https://www.youtube.com/watch?v=ERZTzLHaDVc Moven
“We have decided to combine this uninteresting money saving process into something that all of us have to do every day: walk” Tamara Zuykova, project leader. May 2014 “Customers using the service are saving up to twice as much as the average and walking 1.5 times as far”. Alfa-Bank uses activity trackers to offer higher interest rates to customers who exercise Main features • Customers connect their activity tracker to their savings account online • With every step they take, money is transferred from their current account into a special savings account with a higher interest rate — currently 6%. • Users can choose how much money is transferred per metre walked, from 1 to 50 kopeks (0.01 €), and a maximum 25,000 metres per day (250 €). Alfa-Bank
http://vimeo.com/93142574 Alfa-Bank
“CaixaBank has become the world’s first bank to design an application for smartwatches (a watch device that synchronises with mobile phones)” Caixa bank Caixa Bank A Smartwatch app which allows users to follow the stock markets Main features • Stocks and indices from international markets follow up (IBEX35, Dow Jones, NASDAQ and Eurostoxx) • Recent price information for each stock and index • Fluctuations since the start of the market session. • To get more detailed information: • Selecting the stock on the smartwatch screen will automatically open stock market application on mobile, displaying full information Main features
Barclays ‘Just imagine a typical day in the near future. You leave the house, hop on the train and head to the gym. After your workout, you grab a coffee and go to the office. ‘The money or information you need for every stage of that journey will be integrated into a single device like bPay band” Barclaycard Bpayband, a smart wristband to pay Main features • 300 000 points of sales in the UK • Pre loaded with money (Visa or Mastercard) • Can be automatically topped up • Can be used for purchases of up to 20 £ (32 €) • Available for non Barclays customers • Free service. No commission
Royal Bank of Canada “We’re continuing to work to provide customers increased choice how they pay. Once their wristband is activated, they can leave their phone at home and securely buy a coffee with a tap of the wrist.” Jeremy Bornstein, head of mobile payments RBC A smart wristband for biometrically authenticated payments • The smart wristband uses the wearer’s unique heartbeat to verify that he or she is the real card holder. Main features • RBC expects that this device will be used as a unique identification device that could be a substitute for computer’s password, car’s keys and also a way to check in to hotels room. In progress
American Express The Jawbone UP4: it does everything the UP3 does, and you can buy things with it. Main features • The UP4 can act as an AmEx card at hundreds of thousands of NFC-enabled merchants in the US • The idea: add an AmEx card to the UP4 through Jawbone’s UP app. Then just tap the UP4 against an NFC-enabled card reader, and Purchase is made! • Fitness and health trackers: Bio impedance sensors, heart rate, hydration levels, track sleep (“light sleep” vs “deep sleep”) etc.
Heritage Bank A smart suit that lets you pay for things by flicking your wrist. « Power suit »: a smart suit to pay Main features • Made from Australian merino wool, the Japanese brand MJ Bale suit uses Visa's payWave system to connect to Heritage Bank's mobile wallet. • MJ Bale, working together with the Heritage bank, have made 11 prototype Power Suits. • Users can top up their mobile wallet with a balance from their bank's debit or credit card up to $1,000 and use it to pay for items up to $100.
Heritage Bank https://www.youtube.com/watch?v=JEuY-FHflZw
Barclays “In a survey of 2,000, shoppers voted gloves as the most "desired" wearable payment item. They were popular among shoppers who wanted an easier way to pay while laden with shopping bags. Rings and bracelets came second and third” Barclaycard Contactless glove to wave and pay Main features • Embedded with a contactless chip that can be used to pay for transactions of up to £20 • 300 000 points of sale in the UK
AKBANK Cash Withdrawal with iBeacon Main features • Customers simply launch the Akbank Direkt Mobile App, enter the amount they wish to withdraw, and walk up to an iBeacon- enabled Akbank ATM. • Once the app has detected the ATM, the customer simply presses the "1" key on the ATM keypad and the amount requested is delivered to the cash drawer. « Using their iPhone, Akbank customers can now withdraw money in a couple of seconds from our ATMs, which are iBeacon-enabled, without any need for their bank card or their reference code.». Orkun Oğuz, Executive Vice President in charge of Direct Banking at Akbank
(i) h , 111,...,81. . .wui•,uf you, .,.,an••nd pr•• Man-, W'ttf'M ffl H f wtth (8Mc.oR"" on "'"' r,... ,_ ....... li:. r.,,.,..... ,.,,...on•• ::!,/ .-,...,_...l»gt.A ltrt • 1ti• m ..«10"w'" 1,o .. ..,..."""
Extract from the survey: Internet of Things: International Banking and Insurance wearable apps - More than 150 slides - More than 70 initiatives analysed in more than 20 countries - For more information, visit our website: http://www.saintgermainconsulting.com/en/etudes Saint Germain Consulting Yvon MOYSAN yvon.moysan@saintgermainconsulting.com Tél: 06 62 84 71 00 www.saintgermainconsulting.com Questions and Answers ?

How wearable tech could change insurance and banking industries in the near future?

Check these out next

How wearable tech could change insurance and banking industries in the near future?

Recommended

More Related Content

Slideshows for you(17)

Similar to How wearable tech could change insurance and banking industries in the near future?(20)

More from YVON MOYSAN(10)

Recently uploaded(20)

How wearable tech could change insurance and banking industries in the near future?