technology trends in banking: top 10 in 2012 and beyond · 2020-06-08 · trend 1: mobile banking...

Technology Trends in Banking:

Top 10 in 2012 and BeyondTop 10 in 2012 and Beyond

The Monkey ExperimentThe Monkey Experiment

The Monkey Experiment

Sometimes We Do Things JustSometimes We Do Things Just Because That Is How We Have

Al D ThAlways Done Them…

dTrend #1:Mobile Banking 2.0Mobile Banking 2.0

“There’s an App for That”

Trend 1: Mobile Banking 2.0

• 300m+ Mobile Banking Users Today; 530m+ by 2013 Worldwide

• 50m+ Mobile Banking Users in US50m Mobile Banking Users in US

• A technology that can be used to reach unbanked customers nationally and internationally

• Tablet Support – Browser or App?

• It’s own application and technology apart from Online Banking

• Mobile Banking 2 0 Features:• Mobile Banking 2.0 Features:– Sophisticated Alerts

– Mobile Payments

– Mobile Approvals: Loans, Wires, ACH, Payroll, Bill Pays, Etc

– Debit Card Management

– Person‐2‐Person Payments (P2P)y

– Electronic Wallet

– Opt‐in Location Based Marketing

Trend #2:Trend #2:Online Banking 3.0g

“This Is Not Your Dad’s Online“This Is Not Your Dad’s Online Banking App – More than

l llAccount Balance, Bill Pay and Transfers”

Trend 2: Online Banking 3.0Trend 2: Online Banking 3.0• PFM (Personal Financial Mgmt) – It’s Finally Here and It Works!Here and It Works!

• Target Marketing

• P2P Payments

• Google Like Searchg

• Sophisticated User Rights

• On Demand Features and Functions• On Demand Features and Functions

• Authorizations and Approvals

• Customer Behavior Modeling

• Tablet Support

Trend #3:Trend #3:Electronic Safe Deposit Boxf p

“Hello Dan Frank?“Hello, Dan Frank?...

ll hI Lost My Wallet At The Bar… Again”

Trend 3: Electronic SDBTrend 3: Electronic SDB

• Not for Hard Drive Storage Sorry No• Not for Hard Drive Storage – Sorry No iTunes Uploads – Sorry Tony

F C i i l D Will CC I f• For Critical Documents, Wills, CC Info, Personal Records, Savings Bonds and File M tManagement

• Available to Anyone Anywhere

• Accessible Anywhere

• Fee Income OpportunityFee Income Opportunity

Trend #4:Trend #4:Remote Deposit Capture

“Now Serving Everyone”Now Serving Everyone

Trend 4: RDCTrend 4: RDC• Like Mobile, Its Own Application

• Smaller, Cheaper Scanners

• Mobile Smartphone Support and AppsMobile Smartphone Support and Apps

• Integration with Online Banking

P li d P d d R l f• Policy and Procedures and Rules of Engagement Needed

• Fee Income Opportunity (US Bank)

• Fraud and Duplicate Check Controls

• Customer Support

Trend #5:Trend #5:BYOD

“No Mike Laingen Not ‘Bring“No Mike Laingen… Not ‘Bring Your Own Drink’…

‘Bring Your Own Device’”

Trend 5: BYODTrend 5: BYOD• 4000+ Makes and Models of Phones, iPads, Smartphones and Other Devices Available

• Employees will Use These Devices p yRegardless

• Support is a NightmareSupport is a Nightmare

• Key is to Have a Good Security Policy that is Universal for All DevicesUniversal for All Devices

• Limited Support for “Official Apps”

Trend #6:Trend #6:Mobile Commerce

“The Sky’s the Limit… Literally”The Sky s the Limit… Literally

Trend 6: Mobile Commerce• Users Using Mobile for Payments:

• 26% in US• 26% in US

• 46% Internationally

• TwitPay and FaceBook Credits• TwitPay and FaceBook Credits

• Electronic Wallet

• P2P Payments via Mobile #1 Mobile Transaction• P2P Payments via Mobile – #1 Mobile Transaction by 2014

• Opportunity to Reach Unbanked Customers• Opportunity to Reach Unbanked Customers, particularly internationally• First National Bank in South Africa has 700,000First National Bank in South Africa has 700,000 Mobile Users

Trend 6: Mobile Commerce• M‐Commerce:

• Every Second a Sale is Made on ebay via Mobile• Every Second, a Sale is Made on ebay via Mobile

• $119B by 2015

• M Ticketing• M‐Ticketing• Mobile Ticket Users to reach 750m by 2015

• M Coupons:• M‐Coupons:• Mobile Retail will Exceed $12B by 2014

• 4 5m Users in Japan Use E Coupons from• 4.5m Users in Japan Use E‐Coupons from McDonalds

Trend #7:Social Media

“The New Communication ”Medium”

Trend 7: Social MediaTrend 7: Social Media• Correspond with Customers

di l• Credit Approvals

• Targeted Marketing

• “Bring a Friend to the Bank”

• P2P and M‐Commerce Payments

• Referrals Could Affect Rates, Product Offerings and Promotions

• Sometimes a Faster Response than Email or Phone or Even Text

h f• Gen Y Requirement – The Heirs of Your Deposit Base

Trend #8:Social Media:

“Street Creditability”“Street Creditability”

“Alan Montgomery, Do You Know What Is On Your Facebook Page?What Is On Your Facebook Page?

You Are More Than A Credit Score”You Are More Than A Credit Score”

Trend 8: “Street Creditability”Trend 8: Street Creditability• What Twitter and Facebook Shows Says a Lot About a

CustomerCustomer• Blogs About Bills and Debts

• Blogs About Financial Woes & Windfalls

• Blogs About Comments Towards Banks, CC Companies, Utilities, Etc. – Positive and Negative

Wh O h S /C Ab h C• What Others Say/Comment About the Customer

• Actual Referral Ratios

• Utilities and Mobile Payment Histories• Utilities and Mobile Payment Histories

• “Street Creditability”

• Used for Both Credit Worthiness as Well as Rate• Used for Both Credit Worthiness as Well as Rate Adjustments

Trend #9:Mastering the Customer

ExperienceExperience

“Press 1 for Self‐Help”

Trend 9: Mastering theCustomer Experience

• We Have Trained Customers To: Pump Gas, Scan Groceries & Bag Goods (Costco and Sams Club)Scan Groceries, & Bag Goods (Costco and Sams Club)

• Self‐Service is the Name of the Game• Online and Mobile Self‐EnrollmentOnline and Mobile Self nrollment

• Password Need or Reset

• UserID Need or Reset

• Debit Card Management

• Authorizations and Approvals

• Gen Y Requirement• Gen Y Requirement

• Ease of Use Apps – All Channels

• Rapid Response and Availability When Needed –Rapid Response and Availability When Needed Live Person

• Security, Risk and Fraud Prevention

Trend #10:Behavior ModelingBehavior Modeling

“Are You Nuts! No I Did Not Want to ACH $15,000 FromMyWant to ACH $15,000 From My

Account at 3am!”

Trend 10: Behavior ModelingTrend 10: Behavior Modeling• Learns Customer Behavior Over Time and As New

Transactions are Done Along the WayTransactions are Done Along the Way

• Depending on the Transaction, Bank May:• Approve but Warn the CustomerApprove but Warn the Customer

• Approve but Warn the Back Office

• Put Transaction on Hold

• Stop and Reject Transaction Altogether

• Appropriate Alerts to the Customer

• Technology Available at All Channels:• Technology Available at All Channels:• Online

• Voice

• Mobile

• RDC

Th F f B kiThe Future of Banking

The Future of BankingThe Future of Banking• Mobile Will Be the Channel of Choice for everything

• Mobile Payments and Mobile Payment Systems Will Continue to Evolve and Be Enhanced

• Best of Breed Solutions Becoming Mainstream

• Regulations will Continue to Hammer All Banks

• Need to be Innovative for New Fee Opportunities pp(ie. Electronic SDB)

• Gen Y Are Heirs of Your Deposit BaseGen Y Are Heirs of Your Deposit Base

Questions

H Terrie CloudH. Terrie CloudVice President / Product Manager

O ‐ (704) 588‐4441 / C ‐ (704) 904‐5819 [email protected]

EXTRA SLIDES

Besides the US Treasury, what entity is more money printed forentity is more money printed for

each day?

Parker Brothers Monopoly Game

Questions

H Terrie CloudH. Terrie CloudVice President / Product Manager

O ‐ (704) 588‐4441 / C ‐ (704) 904‐5819 [email protected]