27 Sep 2018
Banking in Digital Ecosystem
• Value of Total Retail Sales at HK$493 billion in 2014 to HK$446 billion in 2017
Technologies Reshape Retails Pattern
• Hong Kong consumers are shifting towards overseas online platforms
• Goods not delivered via physical retail stores; but from courier trucks or “Pick-up Centres”
• In Tsim Sha Tsui and Causeway, fewer local consumers and high-spending Mainland Visitors (2nd or 3rd tier cities instead of top tier city)
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Shanghai => Cashless Vs Hong Kong => Money Notes
Our Last Hope…
Technology Drives Our Life Changing
Graduated from The Chinese University of Hong Kong, worked in IBM
Established City Telecom in 1992 with 10 talents & start-up capital less than US$300,000, to provide alternative IDD services with callback technology
Listed in Hong Kong Stock Exchange Main Board in 1997 & NASDAQ in 1999
Built a city-wide optical fibre network, and become Hong Kong’s largest alternative & fastest growing residential broadband service provider up to 1 Gbps
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How HKTVmall Reforms HK Retailing?
Lower Delivery Cost High Rental Cost
Central Warehouse Distributed Stores
200 sq. ft. Pickup Store Thousands sq. ft. Mega/Dept Store
Wide Variety of Choices Limited Choices
Genuine Customers’ Comments Sales Talk
Users’ Choices Merchandiser’s Choices
AI Professional Advice Shop Sales
Fast & Easy to Expand Limited by Shop Location
Full Customer Profile Limited Information (Big data)
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Warehouse Operation
Traditional Retailing Man to Goods
New Retailing Goods to Man
Man Goods
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• For personal or business purposes : • Safe Place for Our Money – With trust from banks &
regulatory bodies
• Investment – Information from Internet is real-time and more transparent
• Loan & Fundraising – cloud funding, P2P financing, credit rating information & control
• Payment – From customers to suppliers, FPS from one record to any record, has it to be records from banks’ central servers?
The Functions of a “Bank”
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Deposit
Spending
Traditional Banking Vs FinTech
Spending
Deposit
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• Benchmarking : among banks or Alibaba?
• Mobile Device-Driven : Always stay inside the ecosystem
• Customer Engagement : Customers use our APPS 4-5 times a week, use IM hundreds time daily – how about your bank apps?
• The changing concept of BANK : API-enabled open banking ecosystem with stronger integration into customers’ digital lives – such as e-commerce, communications & transportation
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Artificial Intelligence
• Accurate & Reliable • Most Informative • Round-the-clock Availability
Customer Behaviour
• Accurate & Reliable • Most Informative • Round-the-clock
Availability
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• Bankers think… • They are helping and supporting business world • They have the resources : Financial & Trust
• However…
• “Bank”may be the victim that needs help in the vigorous development of technology?
• Will they or their functions being replaced by “Ali-Bank”, “WeChat Bank” or “Amazon Bank”?
How you see banks helping you as an “Online Merchant” Vs
How we see HKTVmall helping banks as an “Online Merchant”
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• Someone will be obsoleted soon……
• Pure knowledge transfer –
secondary school teachers
• Driving teachers
• Translators
• Doctors Offering Simple
Consultation
Moving Into Digital Ecosystem
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• If Banks Sell Insurance…
• Why Don’t Sell Travel SIM Card, or Coco-Cola?
Question
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THANK YOU