Banking on wearables: how does it differ compare to mobile

banking ?

Yvon MOYSAN, Saint Germain Consulting & IESEG School of Management

EFMA Distribution Summit 201527th of March 2015

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 )

Banking on wearables: how does it differ compare to

mobile banking ?

Examples

“[…] 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: access to banking services in a more natural and convenient way

"Leumi SmartWatch": The First Banking App in Israel tailored for the Smartwatch

• 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.

Main features

Sept 2014

“Users will want to be able to interact with firms through many different devices

and as quickly and intuitively as possible.”

Pol Navarro, Sabadell's head of innovation

Banco Sabadell: access to banking services in a more natural and convenient way

The 1st worldwide Google Glass app in 2013

• Displays the nearest ATM

• Allows the viewing of accounts

• Supports 24/7 video conferencing.

• Bank’s APIs opened to other

shops in the Open Apps program

to provide new services

• Immediate check deposit app

(by tacking picture)

In progressMain features

Oct 2013

“[…]we visualize […] how these devices will change how we use services,

For example giving access to customer support by a more natural (using just voice) and convenient way. (Imagine

customer support, seeing the same screen as your customer without any additional software).

It also will enable something like “talking” to machines. It begins to seem possible to say to an ATM, wearing a

Google Glass, ‘Please, Give me money.’ ”

Xavier Marin, Digital Services Strategy at Banco Sabadell

Banco Sabadell: new customers behaviours like « talking » to machines

Oct 2013

http://www.youtube.com/watch?v=KZDA1B5ZwSg

Banco Sabadell: new customers behaviours like « talking » to machines

“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: synchronization of two devices depending on customer needs and expectations

A Smartwatch app which allows users to follow the stock markets

• 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

Feb 2014

Main features

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 Jan. 2015

Moven: Gamification of personal financial management

"We've gone beyond PFM into day-to-day gamification of

financial wellness.“ Moven's founder and CEO Brett King.

"These are things we want to learn out of this process. So far, the key thing a watch does better than any other device is deliver alerts.

Notification becomes the key mechanism for engagement“

Moven's founder and CEO Brett King.

Moven: Gamification of personal financial management

Are customers going to change when they use the watch versus the smart phone?

Will they look at notifications more on the watch than they do on the phone?

https://www.youtube.com/watch?v=ERZTzLHaDVc

Moven: Gamification of personal financial management

May 2014

Alfa-Bank: Gamification of savings

• 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 €).

Main features

Alfa-Bank uses activity trackers to offer higher interest rates to customers who exercise

“Customers using the service are saving up to twice as much

as the average and walking 1.5 times as far”.

“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.

http://vimeo.com/93142574

Alfa-Bank: Gamification of savings

Crédit Mutuel Arkéa: immediate assistance

• 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

Main features

The 1st banking smartwatch app focusing on

assistance for seniors

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

Crédit Mutuel Arkéa: immediate assistanceDec 2014

https://www.youtube.com/watch?v=-5YnKbOy20I

Wearables: how does it differ compare to mobile banking ?

• Access to banking services in a more natural and convenient way.

• New customer behaviours like “talking” to machines

• Synchronization of two devices depending on customer needs and expectations

• Gamification of personal financial management and savings

• Immediate assistance thanks to wearable design and geolocation feature

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 ?

Internet of Things: international Banking and Insurance wearable apps

• Glasses, watches, wristbands, virtual reality headset, iBeacon or even wearable suits… Which bank or insurer have already launched a wearable app and why? What are the features of these apps dedicated to customers or employees? What are customers’ needs and expectations? What are customers’ fears? What are primary customers’ uses ? What are the app features that banks and insurers have already abandoned? What are the future app features or devices that banks and insurers expect to focus on? What are the Internet of Things key figures and projected trends?

• This study includes more than 150 slides and covers the major wearables app that banks and insurers have developed so far. More than 70 of them are indeed analyzed. The objectives of the bank or the insurer are presented and illustrated by CEO or Digital Marketing Director verbatim, the main current and future features of the app and first customers’ feedbacks are detailed. In addition, the study includes several relevant links to press articles and videos illustrating the bank or insurer wearable app.

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For more information regarding this study, please send an e- mail to yvonmoysan@saintgermainconsulting.fr

PURCHASE ORDERPlease send it by e-mail to yvon.moysan@saintgermainconsulting.com or by mail to

Saint Germain Consulting Yvon MOYSAN 37, Rue Saint André des Arts 75006 Paris France

Internet of Things: international Banking and Insurance wearable apps. January 2015. (PDF version)

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