How wearable tech could change insurance and banking industries in the near future?

How wearable tech could change insurance and banking industries in the near future?

Yvon MOYSANSaint Germain Consulting & IESEG School of Management

DIALOGKONFERANSEN 201525th of August 2015

Internet of Things

key metrics and major trends

Internet of Things: key metrics

• In 2015

4.9 Billions Connected "Things" will be in use, up to 40% from 2014 (1).

• By 2020 This number will reach 30

billions (1)

(1): Source: Gartner (Nov.2014)

Customers expectations and fears

• Smartwatches (1) and Fitnesstrackers (2) are considered as the

most useful wearables

• High price (54%), privacy (31%), look (13%), comfort (13%) and health risks (10%) are the main reasons not to buy wearable technology

(1): Source: Forrester Research (2): Source: Deloitte (Oct. 2014 )

What are the industries that will be impacted most by IoT ? (1)

• Home: heating, smoke detector…

• Car: notification of crashes, speeding, safety alerts…

• Health: scales, fitness tracker watch, smartwristband…

• Insurance and Bank: authentication, promotions based on geolocation, personalized insurance premium…

(1): Source: Gartner

Property, Car and Health…

How wearable devices will impact

insurance business model

and services ?

…

Some of the most innovative international wearable initiatives are related to:

• Personalized Insurance premiums based

on personal behavior rather than risk factors such

as postcode, gender, and age or vehicle type.

• Discounts, promotions by meeting specific activity goals or

behaviors

• Stronger security through remote surveillance and various

sensors that detect fires, dangerous gases and intruders, with

alerts sent directly to your smartphone

• Immediate assistance in case of accident.

Motaquote & Tom Tom

“We’ve dispensed with generalisations and said to our customers, if you

believe you’re a good driver […] we’ll even give you the benefit up front”

Nigel Lombard, Managing Director de Fair Pay Insurance

Fair Pay Insurance rewards ‘good’ drivers and includes:

• A TomTom navigation device and an Active Driver Feedback that alerts drivers (dangerous itinerary), and provides traffic information updated every two minute.

• An active Driver Feedback that monitors driver behavior and habits and send alerts in case of non responsible driving.

• Insurance premiums are based on driving ability and behavior rather than risk factors such as postcode, gender, and age or vehicle type.


• Personalized Insurance premiums based on personal

behavior rather than risk factors such as postcode, gender,

and age or vehicle type.

• Discounts, promotions by meeting specific

activity goals or behaviors





Discovery

Discovery Vitality makes living a healthier lifestyle

easier by giving you the tools and savings to help

you earn Vitality points and get healthy.

Vitality: health insurance + fitness trackers (Adidasmicoach, Polar, Garmin ou Fitbug)

• Personalization is not based on the insurancepremium but on discounts you receive on items related to health or leisure (airlines, hotels, press, sport article, gym etc.)

• The customer can earn points with health check online and/or in a clinic, sport center (HIV test, mammogram, Vitality online fitness assessment etc.), by making healthy choices (flu vaccination, non smocker’sdeclaration, and by walking (fitness tracker)

Oscar

Wearables Offered As Reward To Fit Clients

• $400 annual gym reimbursement.

• A free Misfit Flash tracker (60$)

• An opportunity to earn up to $20 a month in Amazon.com credits by meeting specific activity goals

“We will never link this to anything punitive,

and it will never enter our review process.”

Mario Schlosser, CEO, Oscar Health Insurance






behaviors

• Stronger security through remote surveillance and

various sensors that detect fires, dangerous gases and

intruders, with alerts sent directly to your smartphone


BNP PARIBAS CARDIF ITALY

Homebox Habit@t: one bow and a home insurance

• One box delivered with: A smoke detector

2 water leak detectors

A mobile app.

• In cas of trouble, the box send a notification to the mobile of the customer.

BNP PARIBAS CARDIF ITALY

https://www.youtube.com/watch?v=dbmo1oo743M






behaviors





Allianz Swiss

Allianz Helpbox

• Accurate and fast rescue thanks to GPS integrated system.

• Automatic emergency call in case of accident

• Assistance in case of emergency or car breakdown thanksto manual emergency call.

Crédit Mutuel Arkéa

Main features

• In case of fall, accident etc., assistance call center is directly alerted when

senior push on the low button of the smartwatch

• The senior is automatically geo located

• The senior can talk to the assistance customer support that received

information regarding its geolocation

• Assistance customer support can then call friends and family or

medical assistance if required

The 1st banking smartwatch

assistance for seniors

app focusing on

Dec 2014

« This app as a solution is mainly based on the

design of the smartwatch that allows an intuitive

and simple usage ».

Yvon Le Bihan, COO Arkéa Assistance

Smartwatch, smart wristband, oculus rift virtual headset, woolen glove or

even power suit…

What are the most innovative international wearable initiatives in

the banking industry ?

…


• Overall customer experience improvement in

branches

• Commercial assistance to personal bankers

• Banking services (bank account balance, personal financial management, savings, stocks portfolio…)

• More convenient payments without credit cards

• Cash withdrawals with a mobile App

Barclayss

Main features

• The trial takes place in Sheffield

• An application on customers' iPhones to notify staff members

when a customer with a disability has entered the branch

and if they require any extra assistance.

Barclays introduce iBeacon technology to assist disabled customers with in-branch banking

“Beacons are the latest in a long line of innovative initiatives from

Barclays designed to make our customers lives easier, which is

particularly important for people with non-visible disabilities –

something our customers have told us is an issue.”

Elaine Draper, Barclays director of accessibility and inclusion

“When our customers walk into a branch, on an opt-in basis

we can identify who they are without them having to

identify themselves. That recognition is important.”

Westpac's chief digital officer Simon Pomeroy

iBeacon as an opportunity to add another dimension to customer service

Main features

Westpac

• Special offers and other incentives sent to customers when they are

in or walk past a branch

• Alerts staff that a customer has arrived for a pre-ordered item and

can remind the customer that they are in a place that has an item on

their digital shopping list.

• Customers who want faster recognition can upload their photo onto

the mobile application (iBeacon is an opt-in service)


• Overall customer experience improvement in branches

• Commercial assistance to personalbankers




3rd Most Promising Idea. EFMA Accenture Distribution et Marketing Awards. 15th october 2014 in Barcelona

Crédit Mutuel Arkéa

Main features

• A mobile app for customers to be detected by the beacon

sensor located into the branch

• Alerts staff in real time that a customer has arrived and the

reason of the meeting

iBeacon technology to improve customer experience

into the branch

Oculus Rift test at Wells Fargo’s Digital Labs

• Customers could use an Oculus Rift virtual-reality headset to virtually walk

into a bank branch and talk to a teller.

Main features

Wells Fargo

« We’ll have to see how society reacts, when we see a trend, we

want to be ready »

Jim Smith, EVP virtual channels

Google Glass test at Wells Fargo’s Digital Labs

Main features

• Personal bankers would be able to authenticate customers by facial

recognition (customers opt-in required) and have access to their personal

informations

To provide a transparent assistance in real time to personal bankers

Banque Populaire

A google Glass App for personal bankers

Main features In progress

• Alerts staff that a customer has

arrived

• Provide access to customer

information in real-time to

suggest the more adapted

products & services to customer.

• Camera is used to take pictures

and register official

documents (ID card).

• Access to competitors credit

rate (car loans)

• Cross selling proposals will

appear (e.g. car insurance after

car loan)







“[…] in Israel the use of Samsung smartwatches is the most popular. It is

expected that in the next two years, tens of thousands of Israelis will join the

thousands of Israelis who are already using these watches.”

Bank Leumi

Bank Leumi

"Leumi SmartWatch": The First Banking App in Israel tailored for the Smartwatch

Main features

• Up-to-date information on the bank account balance and credit card

charges without having to log into its account.

• Notification of a new checkbook waiting at the bank branch

• Notification of a new credit card sent by post mail

• Alert that the credit limit in the bank account has been exceeded.

A budgeting app on smartwatches

• Real-time analysis of recent spending activity

• The app's spending meter turns red, green or

yellow depending on how much the customer

has spent overall in the current month versus

the previous month and vis-a-vis its budget.

• For instance, as a customer walks out of

Starbucks, he'll get an alert telling him how

much he just spent and whether he's in good

shape budget-wise or should start using the

office Keurig.

• NFC Payment

• Impulse saving

• Apple Iwatch App

In progressMain features

Moven

"We've gone beyond PFM into day-to-day gamification of

financial wellness.“ Moven's founder and CEO Brett King.

https://www.youtube.com/watch?v=ERZTzLHaDVc

Moven

http://www.youtube.com/watch?v=ERZTzLHaDVc

“We have decided to combine this uninteresting money saving

process into something that all of us have to do every day: walk”

Tamara Zuykova, project leader.

May 2014

“Customers using the service are saving up to twice as much

as the average and walking 1.5 times as far”.

Alfa-Bank uses activity trackers to offer higher interest rates to customers who exercise

Main features

• Customers connect their activity tracker to their savings account online

• With every step they take, money is transferred from their current account

into a special savings account with a higher interest rate — currently 6%.

• Users can choose how much money is transferred per metre walked, from 1

to 50 kopeks (0.01 €), and a maximum 25,000 metres per day (250 €).

Alfa-Bank

http://vimeo.com/93142574

Alfa-Bank

http://vimeo.com/93142574

“CaixaBank has become the world’s first bank to design an application for

smartwatches (a watch device that synchronises with mobile phones)”

Caixa bank

Caixa Bank

A Smartwatch app which allows users to follow the stock markets

Main features

• Stocks and indices from international markets follow up (IBEX35, Dow

Jones, NASDAQ and Eurostoxx)

• Recent price information for each stock and index

• Fluctuations since the start of the market session.

• To get more detailed information:

• Selecting the stock on the smartwatch screen will automatically

open stock market application on mobile, displaying full

information

Main features







Barclays

‘Just imagine a typical day in the near future. You leave the house, hop on the train

and head to the gym. After your workout, you grab a coffee and go to the office.

‘The money or information you need for every stage of that journey will be integrated

into a single device like bPay band”

Barclaycard

Bpayband, a smart wristband to pay

Main features

• 300 000 points of sales in the UK

• Pre loaded with money (Visa or Mastercard)

• Can be automatically topped up

• Can be used for purchases of up to 20 £ (32 €)

• Available for non Barclays customers

• Free service. No commission

Royal Bank of Canada

“We’re continuing to work to provide customers

increased choice how they pay. Once their wristband is

activated, they can leave their phone at home and

securely buy a coffee with a tap of the wrist.”

Jeremy Bornstein, head of mobile payments RBC

A smart wristband for biometrically authenticated payments

• The smart wristband uses

the wearer’s unique

heartbeat to verify that he

or she is the real card

holder.

Main features

• RBC expects that this device

will be used as a unique

identification device that could

be a substitute for computer’s

password, car’s keys and also

a way to check in to hotels

room.

In progress

American Express

The Jawbone UP4: it does everything the UP3 does, and you can buy things with it.

Main features

• The UP4 can act as an AmEx card at hundreds of

thousands of NFC-enabled merchants in the US

• The idea: add an AmEx card to the UP4 through

Jawbone’s UP app. Then just tap the UP4 against an

NFC-enabled card reader, and Purchase is made!

• Fitness and health trackers: Bio impedance sensors,

heart rate, hydration levels, track sleep (“light sleep” vs

“deep sleep”) etc.

Heritage Bank

A smart suit that lets you pay for things

by flicking your wrist.

« Power suit »: a smart suit to pay

Main features

• Made from Australian merino wool, the Japanese brand

MJ Bale suit uses Visa's payWave system to connect

to Heritage Bank's mobile wallet.

• MJ Bale, working together with the Heritage bank, have

made 11 prototype Power Suits.

• Users can top up their mobile wallet with a balance from

their bank's debit or credit card up to $1,000 and use it

to pay for items up to $100.

Heritage Bank

https://www.youtube.com/watch?v=JEuY-FHflZw

http://www.youtube.com/watch?v=JEuY-FHflZw

http://www.youtube.com/watch?v=JEuY-FHflZw

Barclays

“In a survey of 2,000, shoppers voted gloves as the most "desired" wearable payment

item. They were popular among shoppers who wanted an easier way to pay while laden

with shopping bags. Rings and bracelets came second and third”

Barclaycard

Contactless glove to wave and pay

Main features

• Embedded with a contactless chip that can be used

to pay for transactions of up to £20

• 300 000 points of sale in the UK







AKBANK

Cash Withdrawal with iBeacon

Main features

• Customers simply launch the Akbank Direkt Mobile App, enter the

amount they wish to withdraw, and walk up to an iBeacon-

enabled Akbank ATM.

• Once the app has detected the ATM, the customer simply presses

the "1" key on the ATM keypad and the amount requested is

delivered to the cash drawer.

« Using their iPhone, Akbank customers can now withdraw

money in a couple of seconds from our ATMs, which are

iBeacon-enabled, without any need for their bank card or

their reference code.».

Orkun Oğuz, Executive Vice President in charge of Direct

Banking at Akbank

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Extract from the survey:

Internet of Things:International Banking and Insurance wearable apps

- More than 150 slides- More than 70 initiatives analysed in more than 20 countries

- For more information, visit our website:http://www.saintgermainconsulting.com/en/etudes

Saint Germain Consulting

Yvon MOYSAN

[email protected]

Tél: 06 62 84 71 00

www.saintgermainconsulting.com

Questions and Answers ?

http://www.saintgermainconsulting.com/en/etudes

mailto:[email protected]

http://www.saintgermainconsulting.com/

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How wearable tech could change insurance and banking industries in the near future?