1 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING IN THE FUTURE.

1© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

BANKING IN THE FUTURE

Dr. Juan JuanDistinguished TechnologistIberia sub region CTHP Enterprise Services

E-Banking Summit 2012March 6th, Budapest


BANKING CATHEGORIES NOT CHANGING BUT…– Retail

– Private

– Corporate• Big corporations

• Small & Medium companies


CUSTOMER PROFILES AND RELATION REQUIREMENTS ARE CHANGING– Consumer as a customer

– Private banking customer, but still a consumer

– Professional as a customer, but still a consumer (Prosumer)

Þ Latest user device technology (UI) and user advantages required/expected in all profile interactivity.

Þ Mobility and 24x7 access to full service is/will be a must

Þ Bank of one will be a must

Is the IT/IS of our banks ready?


QUOTE FROM “THE MCKINSEY QUARTERLY”

–The “emerging affluent” segment—young, educated, and consumption-oriented urban professionals—could account for up to a third of all retail-banking revenues in the coming three to five years: • They are tech savvy, preferring online-banking and smartphone applications; reluctant users of branches; and price conscious and service oriented.

(February 2012, Miklós Dietz, Ádám Homonnay, and Irene Shvakman)


TRENDS IN RETAIL BANKING

– Regulation / Compliance• IFRS9, Basel III

– Demographic change• “Millenials”, Social Media

– Change in consumer behavior• Customers take over control, “ROPO” & ”ROPO + Pay Mobile“

– New entrants into Banking “market“• Telco‘s (Vodafone), Google, PayPal and Retailer (Tesco etc)

– New technologies• iPads, Social Media, “e-Money“, NFC


IS THE BANKING FUNCTION READY FOR THE INTERACTION?

ATM

Permanent banking function:

• Shopping

• Business

• Leisure

• Day to day live

• Secure payments

• Trust in relation

Móvil

Web

Consumer

Corporate

Smartphone

Prosumer

Other Channels


MOBILITY


CAIXAMOBIL STORE & PUNTS ESTRELLAMOBILITY & CLIENT RETENTION IN THE 21ST CENTURY

Full blown apps banking suite foriOS, BlackBerry, Android, Nokia, Windows Mobile

Gain & spend „Estrella Points“with every transaction

www.youtube.com/ watch?v=XTF0YkMLS4g


“READY TO ACCESS” “CUSTOMER SERVICE” WITH AND BY TWITTER


BARCLAYS’ PICCADILLY


BANKING 2.0: WILL EBAY, GOOGLE AND VODAFONE BE THE NEXT LEADERS IN RETAIL BANKING ?


NEW ENTRANTS – TELCO & RETAIL

• Insurance

• Credit cards

• Loans

• Savings

• Credit card

• Payment through phone bill


WHAT ARE BANKS DOING / NEED TO DO NEXT?

–Track behaviour

–Correlate with transaction

–Understand

–Predict and influence

–Adjust risk exposure

Continuously Listen and Analyze

"Our top business challenges are

optimizing customer relationships,

optimizing financial functions, Reducing business risk and

ensuring regulatory compliance.

Our prioritization is around our

customer and then revenue / profits."

C Level Executive


THE ESSENCE OF SOCIAL INTELLIGENCE

Engage

Under-

stand

Listen

How can Banks improve the dialogue with their customers?


CAN THE BANKS USE SOCIAL AVAILABLE DATA?– How do we engage in social networks as trusted friend?

– How do we acquire social unstructured content?

– How do understand social media content?

– How do we correlate social media content with bank’s operational data?


A day in the life of MaryCUSTOMERS WILL SHARE DATA FOR BENEFIT

100

BP50 BP

250

eBP

50 BP

100

BP500 BP

300 eBP

100

BP


SHOPPING COMMUNITY


BENEFITS FOR THE BANK

– Understand customers‘ buying pattern

– Sole source for integrated banking services

– High customer retention

– Actively engage to sell new services

– Marketing and upselling through consumers‘ communities

– Strong brand recognition


BIG DATA (Sandbox metaphor)

(Unstructured data) & (Structured data)

ADDITIONAL NEEDS ON TOP OF CORE BANKING DATA

Operational Systems

(Product & customer Applications)

(Structured Information)

External Web ContentExternal

Social Media(Unstructured Information)

Internal Digital Content

Internal Social Media

(Unstructured Information)

BUSINESS SERVICES

EXTERNAL INTERFACES

ENTERPRISE SYSTEMS

INFORMATION MANAGEMENT

& DATA SERVICES

CORE BANKING OPERATIONS

CORPORATE

RETAIL

RISK MANAGEMENT & COMPLIANCE

WEALTH MANAGEMENT

TRADING

TREASURY & CASH MANAGEMENT

Business Analysis by the business executives.

Driving Analysis

Sentiment Analysis collected from employee feedback in the Internal Social Media.

Employee Knowledge Business Intelligence pattern analysis for event detection on customer behavior.

Business opportunity identification.

Business enhancement

One-to-One Marketing management.

Automation on creation of customer business proposals.

Personalization

Client profile enrichment for loyalty purposes.

Brand perception and event predictive analysis from Social Media

Client knowledge

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

1 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING IN THE FUTURE.

Documents

bp slide

social media change

mobility slide

century slide

nfc slide

budapest slide

twitter slide

demographic change millenials