February 2015
ELECTRONIC CHANNELS IN BANKING Nikolay Spasov Business & Project Development Manager Alpha Bank Bulgaria
Overview: Web & Banking or how web world in banking has progressed in decade plus time...
• Static website • Alternative publishing means • Constrained budgets • Every technocrats wish list
Pre Y2k
• Reactive websites • Web as a add-on revenue model
2000-2004
• Interactive web portals • Web as a Brand nurturing channel
2005-2007
• CRM / SCM Integration • Usability best practice integrated • Social interactivity web 2.0 initiated • Multi-channel Deployed
2007-2013
• Customer experience framework • Multi-technology stack • Virtual world incorporated • Channel Agnostic coverage
2014 +
2 Source: TATA Consultancy Service - Internet Banking Channel, A Case For Comprehensive Usage
Overview: Evolution of Channels in Banking or the way to transfer traditional banking in new era...
3 Source: A Market Leader in Ovum's Decision Matrix – Digital Banking Trends in 2014 – Webinar Recap
SINGLE CHANNEL
Customer and bank have a single
touch point
BRANCH
CUSTOMER
MULTI - CHANNEL
CUSTOMERS
Customer sees brand through multiple touch points
with bank using siloed communications
BRANCH WEB ADS
CUSTOMER
CROSS - CHANNEL
BRANCH WEB ADS
Customer sees unified brand through many touch points.
Bank has single customer view
OMNI - CHANNEL
CUSTOMER
ADS MOBILE WEB BRANCH
Customer has holistic brand experience.
Bank leverages unified view of customer
Overview: Digital Era & Banking where the focus is going...
4
Branch-generated revenue growth is becoming more challenging
Transactions processing and customer service are becoming increasingly independent of the branch channel
Customer demographics are shifting, making Generation Y and ethnic groups vitally important.
YNew technologies are gaining widespread adoption, allowing customer relationship management to become channel independent.
WEB MOBILE
Source: Evolving Models of Retail Banking Distribution – Deloitte Center for Banking Solutions
e-Banking Definition
5
The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels Internet banking (or E-banking) means any user with a personal computer and/or other mobile device and a browser can get connected to her/his bank’s website to perform any of the virtual banking functions
“
”
Source: Deloitte Center for Banking Solutions
e-Banking History
6
how it all started...
Since the early 1980s banks are constantly pursuing innovations
First internet banking is brought to Nottingham
Building Society by Bank of Scotland - HOMELINK
Online banking is built into Microsoft Money software.
More than 100 000 households being accessing
bank accounts online
Stanford Credit Union creates the firs online
banking website
Source: Online Banking Report – Dec 2013
e-Banking History
7
how it all started...
19 million US households are accessing bank
accounts online
Yodlee creates the first account aggregation
software
Rules & regulations for remote authentication and
account access
Direct banks begin to offer online service
Personal finance platforms gain popularity
Source: Online Banking Report – Dec 2013
e-Banking History how it all started...
Source: Online Banking Report – Dec 2013
Apple - iPhone
54 million US household uses online banking
US banks initiate consolidation of branches
1/3 of consumer experience financial difficulties
40% of customers would benefit form personal finance
management tool
e-Banking History how it all started...
Online banking goes massive
E-services platforms emerging
Mobile cross banking platforms Source: Online Banking Report – Dec 2013
e-Banking Varieties
11
Electronic Information Transfer System (Passive e-Banking)
Fully Electronic Transactional System (Active e-Banking)
e-Banking Benefits
12
for the bank...
GLOBAL
PRODUCT VARIETY
FLEXIBILITY
NO FIXED LOCATION
LARGE CUTOMER DATABASE
PROFITABILITY
COST REDUCTION BRANCH OPERATION EFFECTIVNESS
e-Banking Benefits
13
for the customer...
AVAILABILITY
BALANCE INQUIRY
CURRENCY RATES
MONEY TRANSFER TRANSACTION HISTORY
LOW FEES
ANYWHERE BANKING
% Of Users That Use Particular Channel
14
more than once in the past 30 days
Source: ComScore, Inc. , courtesy of comScore, Inc.
Top 10 Countries By e-Banking Penetration
16
for 2013 in %
Source: ComScore, Inc. , courtesy of comScore, Inc.
e-Banking Penetration Across Europe
17
for 2013 in %
Source: ComScore, Inc. , courtesy of comScore, Inc.
Digital Is Everywhere…In Banking
21
WEB PLATFORMS MICRO WEB SITES CORPORATE WEB SITES
INTERNAL WEB TOOLS
VIDEO CHANNELS
MOBILE WEB SITES APPS
SOCIAL PRODUCTS
Digital In Alpha Bank Bulgaria
22
CORPORATE WEB SITES
WEB PLATFORMS
MICRO WEB SITES
MOBILE WEB SITES
INTERNAL WEB TOOLS
APPS
VIDEO CHANNELS
PRODUCTS
HOUSING LOANS To feel the coziness of your new home
CONSUMER LOANS For everything that you may need
DEBIT AND CREDIT CARDS To make the most of your shopping
SAVINGS Safety for the future
SERVICES For more convenient banking on the go
Alpha Bank Products & The Digital
23
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What is the first thing you reach in the morning? Your bed partner, yourself or your phone?
Simon Bond Chief Marketing Officer