Vlerick Alumni Finance Section

Digital Directionschecking out the mobile banking journeys ahead

Quinten Fraai, General Manager Direct Channels

“All rich devices will be connected and will know everything about you so they can

provide you with useful information” Bill Gates

Mobile. Payments. Banking. It all hangs together.

The relevance of payments. And banks.

Banks play a pivotal role in providing these lubricants to the economy;

They provide the transactional systems for these lubricants to flow freely; the banking infrastructure

They have the means to guarantee the smooth operation of this system; providing deposit, lending and transactional solutions

They are connected to every part of the economy to ensure stability of the flow; governments, institutionals, corporates, small businesses and retail customers

They are tightly regulated to ensure the integrity of the flow; nationally [i.e. NBB] and internationally [i.e. Basel Accords]

Payments and transactions are one of the key lubricants of today’s economies.

The relevance of mobile for banking.

The mobile channel is here to stay. Every global trend tells us that mobile

internet traffic will increase and outweigh desktop internet usage in the years

ahead. % of total internet traffic from mobile (projection 2014)

IndiaWorldwideNorth AmericaEurope

desktop internet traffic

India is already there!

Source: statcounter

The relevance of mobile for banking.

29% of Belgian customers use mobile banking. 85% of them is happy with the

mobile banking offer from their bank.

29% is user of mobile banking, 67% has never tried mobile banking, leaving 4% that tried and stopped using it.

84,7% is very satisfied or satisfied with the mobile banking offer.

Source: Hedera Consulting Research “Mobile Banking in Belgium” 2012

The relevance of mobile for banking.

71% of Belgian customers don’t use mobile banking. Safety, possesion of a

smartphone and ease of use are most frequently quoted as the reasons why

people don’t use it yet.

These barriers will disappear with the predicted smartphone market growth

• No need at this point in time, but will very likely start mobile banking in the future

• Easier interfaces• When NFC payments become possible• Communication towards clients on these

features• OS support

Of those that do not use mobile banking, only 23% has no interest at all, 77% are all potential mobile bankers

Source: Hedera Consulting Research “Mobile Banking in Belgium” 2012

SMARTPHONE Banking - what we see ahead. - relevant things to reckon with.

SMARTPHONE Banking – what we see ahead.

The way the device is used defines what you can offer on it.

SMARTPHONE & TABLET – what we see ahead.

The smartphone is a typical “on the go” device.

SMARTPHONE Banking – what we see ahead.

The smartphone will become the indispensable “Do I have everything with me?” device.

In the near future we will start to use it for small person-2-person payments.

SMARTPHONE Banking – what we see ahead.

Further down the road we will use it as our wallet, holding all our cards, and more.

SMARTPHONE Banking – what we see ahead.

Banks will not be the only one offering wallet functionality.

SMARTPHONE Banking – what we see ahead.

If simple selling is possible, smarter, non-intrusive, location based, tailored offers will have impact.

SMARTPHONE Banking – what we see ahead.

Unfortunately these are not the only things we will be focussing on…

SMARTPHONE Banking – what we see ahead.

Unfortunately E-fraud via smartphone will scale up to “normal” cybercrime

levels withing the next 3 years…

The smartphone is rapidly establishing itself as a preferred channel to bank through.

Mobile sales and mobile triggered sales may find fertile ground if offered non-intrusive and tailored.

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CyberCrime is is moving into the mobile channel fast. Keeping the channel clean and safe is of critical importance.

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Omni presence of mobile devices is a given. The smartphone will develop into the indispensable “do I have everything with me?” device offering more on the go functions

Mobile Payments is a logical extension of the mobile banking functionality as it is used today and banks are well positioned as a trusted partner to provide this.

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TAKE AWAYS

Thanks for your attention