Digital Banking Innovation - "a Look of Tomorrow"
Post on 06-Jul-2015
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Digital InnovationRaja Teh Maimunah
Chief Executive OfficerHong Leong Islamic Bank
Chief Operating OfficerDigital Innovation & Transactional Banking | Hong Leong Bank
a look of tomorrow
Everything evolves with time…
The evolution of trade, money & banking
Monte de Paschi (founded in 1472) is the world’s oldest bank still in existence, and has now also adopted digital banking
The modern banking era traced back to the early Italian Renaissance period
Trading & banking date back to the ancient days of Assyria & Babylonia – circa 2000BC
Milestones in the modern banking era
<17th Century 18th Century 19th Century
Bank Debts
Birth of regulations and first central bank -
Amsterdam
Goldsmiths and promissory notes in
London, which gradually became bank notes.
Standardized printed notes with signatures
Clearing facilities, security investments, cheques and
draft protections
First overdraft facility introduced by The Bank of
Scotland
Fully printed notes which didn’t require signatures
Rapid growth due to Industrial Revolution
NYSE
Rosthschild & Baring saw their merchant banks
dominate the banking world
Methodologies & Institutionalization
20th Century 21st Century
US Federal Reserve
Charge Card (1928)
IMF & World Bank (1944).
Credit Card (1958)
ATM machines (1960s)
Home Banking – using keyboard, TV and telephone (1981)
E-banking and SMS banking (1990s)
Non-FIs enter the financial community (2001)
Global growth in Islamic Banking
iPhone (2007) = mobile banking applications
Merchant payments through mobile-generated QR codes
Mobile money transfers
Cardless ATM withdrawals
Globalization, Technology & Self-Serve
Needless to say, digital banking adoption has a lot to do with the global growth in internet speed, accessibility and devices
‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12
INTERNETPOPULATION 100m 1b
INTERNETSPEED
(Mbps)1.5 105 50 100 200
YEAR
SMARTPHONEUSERS 100m 500m
Malaysia:
39%tablet penetration
On average,2 smartphones for every 9 people on earth
Malaysia:
140%mobile phone penetration
Malaysia’s Penetration:
63%smartphone
39%tablet
Malaysia:
63% smartphone penetration
>2.6b
>1b
>500
20mins-1hr 5mins 10mins 5-10mins 1-3 days 5mins1min 20mins-1hr
1min 2mins
It’s all with two things in mind – CONVENIENCE & PRODUCTIVITY
Transferring Money Receiving Money
with mobile / digital banking…
Banks’ digital brands – a different business approach vs. its conventional peers
What we’re doing at
OverallStrategy
digitization
digital products
partnerships& merchants
marketing &social media
Enabling and expanding Connect’s online banking capabilities across various digital platforms, with emphasis on innovation in mobility.
Development of online banking products to replicate offline banking offerings. Some online products will have enhanced benefits.
Continuous communication through advertising to educate consumers on Connect and its services, as well as promotions and acquisition campaigns
to increase adoption.
Value Creation via expansion of reach, increased usability and ecosystem enrichment
Tailored - User interface is customized and responsive to devices for better user experience.Holistic – usable across all operating systems and browsers.
Peer-to-peer Mobile Money Transfer function that allows HLB Connect users to send money to a
phone number, no sharing of account details necessary.
Merchant payment function where customers can pay for their
purchases using their Connect Mobile app.
Connect Mobile app users can generate their own collection code
on their mobile phones to withdraw cash from ATMs without
using their ATM cards
Watch the video on YouTube.
Search “Pex Hong Leong Bank”
What does the future hold?
* Pwc research : Retail Banking 2020: Evolution or Revolution
Develop customer-centric business models, including social
banking & commerce
Optimisingdistribution
Simplifying frameworks &
operating models
Enabling innovation & fulfilling the capability
requirements to foster it
Proactively managing risks,
regulation & capital
thank you
terima kasih
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