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Global Trends Driving Corporate Mobile Banking Adoption IDC is predicting the worldwide smart connected device market will accelerate past 2B units by the end of 2015, attaining a market value of $735.1B Barriers to mobile payment success Tablet Units = Growing Faster Than PCs Ever Did... +52%, 2013 and Smart Phones growth at 53.6 %. Reaching 1.2 billion in 2014 Internet and mobile banking is now used for transactions worth £6.4 billion a week in UK alone – up from £5.8 billion last year. Majority of transactions are driven by Payment capabilities provided for Corporates and SME’s by Banks Global Banks including Deutsche Bank, Citibank, BOFA, Wells Fargo, Morgan Stanley, BNP, ING etc have come up with specific tablet and mobile app strategy for their corporate and SME clients Tablets and Smart Phones allow for providing context based audio visuals, location based services, tools and calculators, necessary workflows to be incorporated thereby making them easy to use anytime anywhere

Suresh - Mobile Banking (Corporate Banking Stream)

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6th BankTech Asia - Suresh's Presentation

Text of Suresh - Mobile Banking (Corporate Banking Stream)

  • 1. Global Trends Driving Corporate Mobile Banking AdoptionIDC is predicting the worldwide smart connected device market will accelerate past 2B units by the end of 2015, attaining a market value of $735.1BBarriers to mobile payment successTablet Units = Growing Faster Than PCs Ever Did... +52%, 2013 and Smart Phones growth at 53.6 %. Reaching 1.2 billion in 2014Internet and mobile banking is now used for transactions worth 6.4 billion a week in UK alone up from 5.8 billion last year. Majority of transactions are driven by Payment capabilities provided for Corporates and SMEs by BanksGlobal Banks including Deutsche Bank, Citibank, BOFA, Wells Fargo, Morgan Stanley, BNP, ING etc have come up with specific tablet and mobile app strategy for their corporate and SME clientsTablets and Smart Phones allow for providing context based audio visuals, location based services, tools and calculators, necessary workflows to be incorporated thereby making them easy to use anytime anywhere

2. Global Tablets Enterprise AdoptionMarket Competition TrendsA 50 percent market share for tablets will equate to around 285 million units shipped in 2014. By 2017, that figure will soar to 396 million devicesTablets running the Android operating system are likely to lead the way, accounting for 65 percent of all shipped tabletsCompetition and prices of tablets available in the market would give end consumers and affordable option thus increasing the market size.Enterprise adoption of tabletsForrester predicts 18 percent of tablet sales to come from businessesEnterprise tablets will make up around 12 percent of the 186 million tabletsBusiness adoption for internal and customer-facing purposes will drive tablets to become 18 percent all tablets in use by 2017Forrester also forecasts that the total installed base of tablets will reach 905 million by 2017, rising from 327 million tablets this year, to 654. million by 2015 and 795 million by 2016. By 2017, one in eight people in the world will own a tablet. 3. Corporate Mobile Banking Trends and ImplicationsImplicationsTrendsA global survey conducted by Fundtech and AiteGoup found that 65% of treasury executives are already interested in using tablet & mobile corporate banking services.For many corporate treasurers and financial officers, their mobile device is no longer their 'back-up' but the first tool they go for when they need to take care of corporate banking businessMoving from account snapshots to being able to initiate payments and approve wire transfersAction-oriented tools are heavily influenced by the explosion in the use of big screen tablets in BankingCorporate tablet and mobile banking deployment has increased from 1 in 2009 to estimated 15 in 2013 in top 25 US banks.Banks with CMB on their roadmap state that the main reasons for providing a CMB application are:addition of a new delivery channel,paradigm shift,competitive differentiation &revenue generationCMB users would prefer to have basic features like checking balances & transferring funds with high openness to use advanced functions like approving transactions and initiating payments. 4. Channel Integration & Cost Management have become importantImplicationsTrendsIn the last few years, there has been tremendous increase in the number of customers using mobiles, tablets & social media.Banks need to expand their service offerings to various direct channels.These channels need to be integrated with the older channels of banking.Corporate customers now want to bank through their smartphones & tablets. In fact they use a mix of all banking channels.Banks must provide a consistent look & feel throughout all the banking channels (Omni channel).Banks must Integrate the channels in order to provide a consistent experience.Expensive to maintain branchesRegulatory reforms like Basel III and IV will make funds more expensive for the bank.Direct Channels are more cost saving than other traditional channels like branches. So banks are now concentrating in developing and integrating the direct channels with the traditional.Banking products & services are becoming almost similar throughout the industry and achieving a differentiating point has become difficult for banks .The number of customers shifting banks have increasedMulti channel integration has become all the more important because banks are trying to earn competitive edge by improving the customer experience. 5. Global Trends in Corporate Banking Channels0%50%100%Inadequate Products & ServicesEase of acess to services (Channels)Interest rates and feesInsufficient geographc coverage /Insufficient turnaround timeFinancial WeaknessTop Reasons Cited by Banks for Lost Corporate BusinessTop Reasons Cited by Banks for Lost Corporate BusinessSource: Finextra / Pegasystems Corporate Banking Satisfaction Survey 2013Trends Multi-Channel:Multi Channel access is demanded by corporate clients of BanksTablets/smartphones are widely regarded as a game changer for Banks wanting to provide the best of services to their corporate clients User Experience:Ease of Access Primary reason for banks losing our corporate businessBanks are struggling to execute their portal vision of a unified cash/treasury management portal.Implications Multi-Channel:Creating applications compatible with tablets and mobile devices.Existing apps need to be elevated to the power and flexibility of the dashboard experience.Banks require a common framework for creation of device agnostic components accessible on varied devices. User Experience:Revamp user administration and entitlements online user experience.Implement Electronic Bank Account Management (EBAM). Large global banks have gone through pilots (e.g., RBS, Citi, JPMorgan, BNY Mellon).Consistent user experience should be the core around which the entire portal strategy needs to hinge upon.Critical to Categorize dashboard elements to strike a balance between usability and functionality.Workforcewho haverequested aTabletSeniormanagerswho havebeen issued atabletPersonaldevices usedirrespectiveof company'spolicy21%38%57%Tablet adoption within enterprisesGoogle, 51.70%Apple, 38.90%BlackBerry, 5.40%Microsoft, 3.20%Symbian, 0.50%GoogleAppleBlackBerryMicrosoftSymbianSource : Comtrade Feb 2013Market share (OS ) in Global market 6. Global Trends in Corporate Banking ChannelsTrends:Forecasting cash flows / liquidity remains to be a challengeRemote Cash Capture Solution Space Heating UpCash ManagementPaymentsTrend: Global Electronic Transaction Volumes Continue to Increase Creation & Approval of RTGS and SWIFT payments on mobileImplications:Reporting to providing value-added real-time analytics with the ability to aggregate, analyze, and parse data.Increasing adoption of RCC by banks is creating better value proposition for merchant.Software applications providing business intelligence to RCC clients leads to retention.Implications:Key initiatives for achieving real time commerce.Seamless mobile experience to enable approvals and reporting.Configurable reports and dashboards to keep track of payments. 7. Global Mobile Banking Trends in Corporate Banking33%29%26%31%26%28%Check BalancesPay BillsTransfer Funds ( Withinthe Bank)Currently UsingInteresting in UsingSmall Business Adoption of the Most Common Mobile CapabilitiesSource: Aite Group: August 2011 Small Business Mobile Banking: A Promising Opportunity19%17%15%14%12%33%32%23%26%32%Make Expedited PaymentsApprove Credit CardTransactionsApprove Payroll Batches/ ACHPaymentsApprove WiresView and make positive paydecisionsCurrently UsingInteresting in UsingSmall Business Interest in More Advanced Mobile CapabilitiesSource: Aite Group: August 2011 A Survey of 291 US Small Businesses42%39%33%25%19%Forecasting Cash FlowBeing able to borrow money orget a credit cardEffectively collect moneyowed/Accounts receivableTracking Cash FlowsEfficiently Processing Payroll% Stating "Challenging" or "extremely Challenging"Significant Pain-points for SMEsImplications Innovation DriversBanks can gain significantly by increase in market share by providing solutions to key pain points for the corporate & SMB users.Building solutions catering dynamic cash flow forecasting, access to easy short term capital and managing account receivables should be key factors driving innovation to gain market share. Capturing latent demandExpedited Payments & Credit card transaction approval has a strong latent demand focusing on these offerings should be key future initiativesPositive pay decisions can be a critical component to be used by SMB for Fraud management and can be a potential differentiating factor for mobile Banking.Transfer Funds, Pay bills & Transfer are must to have offerings for all mobile solutions considering their wide usageTrends Rate of AdoptionAn increasingly number of Small Business enterprises are considering Mobile offerings as an important element in Bank Selection.Corporates & Small Business enterprises primarily use Check Balances, Pay Bills & Transfer Funds Features and there is a strong latent demand among non users for these features as well.Among advanced features expedited payments is one of the key attractions. Business impact trendDynamic cash flow forecasting, account receivable management, short term capital access are key success factors for SMB mobile solutions. 8. Global Mobile Banking Trends in Corporate BankingSource: Aite Top 10 Trends in Wholesale Banking Jan 2013Will have rolled out or piloted, 45%Will not have rolled out or piloted, Percentage of top 100 Global Banks that will have rolled out or piloted Corporate Mobile Banking by Year end-2013CorporateFinancial Institutions Increased Productivity Continuity of Job Performance Anytime, anywhere access Stickiness of Relationship Innovation Revenue Opportunity$4$3.75$1.25$0.85$0.17$0.08BranchCall CenterIVRATMOnlineMobileTransaction Costs by ChannelChallengesBenefitsChanging Technology Customer Experience Consolidated global multi-bank reporting Cash position snapshot Approval Account Transfers Alerts Positive pay decisions Security Public Wi-Fi, Rogue apps, Jail breaking, BYODAccount InfoWire ApprovalACH ApprovalAccount TransfersLoan InfoPositive Pay ExceptionsWire InitiationACH InitiationsAdministrationRemote Deposit CaptureC2B Payment AlternativeCorporate Mobile BankingInnovative Customer ExperienceBusiness ConvenienceAdvent of TabletsThe Cost & Revenue FactorThe Payment PushDesired Corporate Mobile Features 9. Corporate Mobile Banking Possibilities for InnovationMobility SolutionsMobile paymentsMobile collections and disbursementsMobile solutions to forecast liquidityMobility Interface for initiating and approving transactionsBuild Integrated SolutionsProvide comprehensive solutions to customers across cash management, financial markets and Trade financeProvide on and Off-Balance sheet options to clientsImproved MIS and operation efficiencyEnhanced Analytical InformationProvide Information to customers based on profile e.g, trends , forecastsBring about transparency including transaction fees, Foreign exchange rates etcServing and advising clients about doing business within the new regulatory frameworkEnable banks to provide focused solutions based on Customer profile / Risk appetiteRisk management including country and exposure riskRegulatory ComplianceImproved Cash Flow management by effective ForecastingClient profile Specific Dash Board 10. A Day in the Life of a Corporate TreasurerBrian starts his day by checking the funds position through his tablet application. He then proceeds for his workout.7:00 amOn his way to office, Brian checks the status of his incoming remittances using the tablet application.9:30 amBrian is stuck in a meeting with a client at a restaurant. Thankfully, he has the tablet application through which he can approve the wires before the cut off time without going back to the office.2:00 pmBrian is about to leave home when he got the bank security alerts on his tablet. He returns to his deskto solve the issues before it gets late.7:00 pmAccount InformationCash flow managementAdministrationACH ApprovalWire ApprovalAccount TransfersWire InitiationBrian receives a notification, that his banks RM has suggested a video to him. It was on how cash flow management can be done better with the help of few tools suggested by the bank. He opens and sees the video.6:00 pmView Collateral selected by the RMA payment scheduled to come in on that day, does not happen and Brian calls the Bank to check on the same. Alternatively he transfers funds from his other account to honor his outgoing payments.11:30 amException alertsPayment FulfillmentContact managementAlerts & Notifications 11. A Day in the Life of a Small Business OwnerJulie, a bakery owner gets up and reaches her bakery. She then decides on the number of cupcakes and cakes theyre baking that day. She then checks her account balances and then transfers money from her checking account for petty cash requirements for the day using her iPad.5:30 amReport GenerationIntra Account transferOne of the bakerys employee goes out to buy few materials with a supplier. She transfers funds to the supplier using her blackberry application. The transaction comes to Julief or authorization. She authorizes it instantly from her approvals module on her iPhone. Julie also checks how much cash she will need today to pay to the suppliers and how much incoming cash she can expect during day.2:00 pmJulie looks at her e-mails again, files her invoices and checks for all the card bills that she has to pay and transport expenses of the previous week that she has to pay to her helpers. All this can be done easily using her iPhone or iPad.4:30 pmThis is the close of the day, so Julie does a remote deposit of all the checks she got today. She also checks if she has any exception items pending for his approval on Positive Pay.7:30 pmJulie has around 5 helpers. Today is the day to pay salary to them. So before the day starts, Julie releases her payroll instruction to the bank. She also paid the monthly installment for the loan that she had taken for buying the ovens. It was quite a simple one-touch process from his iPad.7:30 amPayroll ManagementPay Loan InstallmentDelivery person comes to do the pickup of the orders. Julie sends out the invoices with the deliveries which she has created on his iPad. The delivery person can see it on his Android phone and can get customer signatures against each delivery on the phone itself.11:30 amInvoice ManagementWorkflow managementCash Flow managementCard ManagementManage petty cashApprove reimbursementsRemote DepositPositive Pay 12. Corporate Mobile Banking SolutionCorporate mobile banking solution should allow banks to extend mobile applications to Corporates and Small and Medium Enterprises:Real time workflow approval and worklist management for approval of key transactions like funds transfers, Payments etcPositive Pay viewing and approving of exceptionsMoney transfers intrabank, domestic and internationalSolution HighlightsPayroll Management, Timesheet, Account Summary, Augmented Reality based Branch Location etcDashboardsPortletsPersonalizationSOAEnhanced branding and packagingCustomization of reports and workflowsAnalyticsFeaturesValue DifferentiatorsCorporates & Small BusinessTime & Effort Saving1.Smartphone based solution for SMBs2.Bank available on the goFinancial Control1.Payments, Positive Pay, RDC2.Workflow based approval systemValue Added Services1.Payroll Management2.Compensation Management3.Expense Claims4.Timesheets5.User ManagementOne stop shop for all financial needs1.Traditional banking2.Value added features3.SMB specific featuresBankCompetitive Differentiation1.Smartphone based solution for SMBs2.RDC on mobile3.ERP on mobileFee Based Revenue1.Payments, Positive Pay, RDC2.Per user charge/per module chargeCustomer Stickiness1.Value added services for SMBs2.SMB dedicated applicationsCustomer Insight1.Mobile analytics2.Cash Management3.Product analysis