Journey of Mobility in

Finance Landscape26.03.2014, Istanbul

Kerem AbucMobile Financial Services

Digital Channels

Agenda

Life Before Digital Revolution

Digital Era

At the heart of Digital World: Mobile

A Typical Day in 2014

Mobile Financial Services

Mobile First

Mobile Payments Skyrocketed

Alternative Payment Methods

Strategies

Mobile 3.0

Digitalization

Before / After

Mobilization

Daily life impact

Mobilization

of

Finance

Digitalization

Before / After

Mobilization

Daily life impact

Mobilization

of

Finance

Life Before Digital Revolution

Banking was driven by;

• capital-deployed

• risk-management competencies

• branch coverage

Communications technology has

been changed drastically with the

digital era

Digital Era

1990

Digital born

2000

Spread to masses

2010

Digital Boom

The way of communication changed radically

• Way of listening to music (via Spotify in 2013)

4,5 B hours streamed

1,5 M times played in a single day – Get Lucky

• Way of reading

Lloyd’s List cease printing after 279 years

• Way of watching

100+ hours of video streamed in each minute via Youtube

Digital Era

1990

Digital born

2000

Spread to masses

2010

Digital Boom

The way of communication changed radically

• Way of listening to music (via Spotify in 2013)

4,5 B hours streamed

1,5 M times played in a single day – Get Lucky

• Way of reading

Lloyd’s List cease printing after 279 years

• Way of watching

100+ hours of video streamed in each minute via Youtube

Digital Era

• Way of banking

%50 US Adults bank online

%33 of bank users only use self-service channels in

Turkey

%80 of all financial transactions occur via digital channels

1990

Digital born

2000

Spread to masses

2010

Digital Boom

7.2B+world

population

3Binternet

userspenetration

by 2015

1,3B+facebook

MAU

241M+twitter

MAU

%96 mobile

penetration

%35internet

userspenetration

Digital Era - World

%30smartphon

e

penetration

%45facebookpenetratio

n

Digital Era - Turkey

76Mpopulation

%42Internet

userspenetration %93

mobile penetration

%30twitter

penetration

Digitalization

Before / After

Mobilization

Daily life impact

Mobilization

of

Finance

Mobile

• Simply defined as on the go

• Always on

• Convenient

• Immediate

2007 Gain strategic importance by Job’s reinvention

2010 Mobile became the primary platform

%93mobile

penetration

450Mwhatsapp

MAU

184Mtwitter

MAU945Mfacebook

MAU

2BSP usage

by 2015

%93mobile

penetration

450Mwhatsapp

MAU

184Mtwitter

MAU945Mfacebook

MAU

2BSP usage

by 2015

A Typical Day in 2014

Digitalization

Before / After

Mobilization

Daily life impact

Mobilization

of

Finance

Mobil Financial Services

SMS BankingMobile

BrowsersNative apps

Mobile first

• MAU in Turkey increased more than %100 in a year.

Why?

• Feel secure

• Ease of use

• Cost sensitivity

Mobile First

• Mobile is evolved

• Mobile first strategy is the new trend – Focused on the needs

• Mobile-only apps are sold for billions

Retail banking with a mobile first approach – Contextual Banking

Mobile First

Retail banking with a mobile first approach in Turkey– Contextual Banking

Mobile Payments Skyrocketed

• Electronic payments are increasing with

double-digit percentage

• M-payment is tripled in 3 years

• According to Mastercard, all payments will be

digital in 10 years

WHY?

• Penetration of smart phones

• Increase of Internet usage

• New technologies

Alternative Payment Methods

Paypal is the leading company - $27B in mobile payment volume in

2013, up almost 100% over 2012

PayPal revenues represented 41% of eBay Inc. revenues in 2013

Bitcoin, the crypto-currency

at the start of the year a single bitcoin could have been purchased for

around $12, a gain of 10,250% from the year’s high.

Strategies

Is it possible to implement the same method to

spread mobile financial services usage across

globe?

Frontier Markets

Unbanked population

Based on telecom services

Emerging Markets

Hybrid solutions

Developed Markets

Digital wallets

M-payments

Mobile 3.0

• Smartphones were the keys to Mobile 2.0

• Smart devices & internet of things represent Mobile

3.0

• Wearables & Living Services will change the users’

behavior

• People tend to make payments in different ways

Boondoggle

Winter Wake-Up

Nike - Fuel Band

Withings Body

Scale

Thank You

Kerem Abuc

abucov

keremabuc