Banking Forum 2015 · 2015-05-29 · Banking Forum 2015. Reinventing Client Relationships. Athens, 21 April 2015. ... presentation tools. Online presentation of Greek products. State-of-the-art

Banking Forum 2015

Reinventing Client Relationships

Athens, 21 April 2015

150417 BF Reinventing client relationships.pptx Global Transaction Banking 1

Payments are becoming a commodity service … Definition of commodity

Investopedia

The basic idea is that there is little differentiation between a commodity coming from one producer and

the same commodity from another producer - a barrel of oil is basically the same product, regardless of the

producer. Compare this to, say, electronics, where the quality and features of a given product will be completely

different depending on the producer. Some traditional examples of commodities include grains, gold, beef, oil and

natural gas. More recently, the definition has expanded to include financial products such as

foreign currencies and indexes. Technological advances have also led to new types of commodities being

exchanged in the marketplace: for example, cell phone minutes and bandwidth.

Wikipedia

Commoditization occurs as a goods or services market loses differentiation across its supply

base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently.


… but still constitute a significant revenue source for banks globally

Source: The Boston Consulting Group – Global Payments 2014


Banks are in a tough position to defend payment revenues

Regulators are effectively

•increasing banks’ operating expenses

•enforcing greater transparency

•putting pressure on fee margins

while clients are

•becoming more tech oriented

•asking for more

•enhancing their knowledge about products and services

and alternative providers are

•providing new tech-oriented services at fast pace

•expanding into more traditional banking territories

leaving Banks with the threat of

•profit margin compression

•volume reduction


Latest trends in payments focused on execution and channels

Instant, immediate or real time payments no matter how they are called they all mean irrevocable execution anytime 24/7/365, immediate credit in the payee’s account, and immediate transaction confirmation to the payer

Given the abundance of smartphones, banks are putting more emphasis on developing full fledged mobile banking applications that are not just a miniature version of their electronic banking platforms

Banks are moving from multichannel to omnichannel with the enhancement being that clients can initiate any given transaction or service on any channel (e.g. branch, ATM) and monitor its progress or even complete it through another (e.g. e-banking, mobile)

Mobile BankingMobile Banking

Omnichannel BankingOmnichannel Banking

Real innovation or just an improvement of existing services?Real innovation or just an improvement of existing services?

Instant PaymentsInstant Payments


Banks need to go beyond the mere offering of payments execution (1/3) Quotes from recent studies

The Boston Consulting Group – Global Payments 2014

Never in the history of the payments industry has there been such disruption and opportunity across regions.

Digital technologies will upset the competitive order and the role that payments play both in the operations of business and in the daily lives of consumers.

Payment players must see payments as a platform, not simply as a product.

Never in the history of the payments industry has there been such disruption and opportunity across regions.

Digital technologies will upset the competitive order and the role that payments play both in the operations of business and in the daily lives of consumers.

Payment players must see payments as a platform, not simply as a product.

Banks own rich reserves of raw behavioral data. Banks should leverage their data strengths to create new services along the full span of the consumer decision journey, reaching beyond payments transactions to manage the customer’s entire digital wallet (by, for example, optimizing loyalty awards and special offers, payments terms, and instruments).

If banks cling to the traditional, narrow view of the payments ecosystem, attackers will not only take the additional revenues described above, they will also enjoy prime access to the “digital trail,” including essential transaction information, and direct traffic to preferred service providers within the digital sphere.

Banks own rich reserves of raw behavioral data. Banks should leverage their data strengths to create new services along the full span of the consumer decision journey, reaching beyond payments transactions to manage the customer’s entire digital wallet (by, for example, optimizing loyalty awards and special offers, payments terms, and instruments).

If banks cling to the traditional, narrow view of the payments ecosystem, attackers will not only take the additional revenues described above, they will also enjoy prime access to the “digital trail,” including essential transaction information, and direct traffic to preferred service providers within the digital sphere.

McKinsey&Company – The digital battle that banks must win


Banks need to go beyond the mere offering of payments execution (2/3) Examples from the retail banking space

Source: Accenture


Banks need to go beyond the mere offering of payments execution (3/3) The example of Exportgate.gr

Eurobank went beyond the execution-oriented need of exporters to cover their underlying need to learn about different markets and to network with prospective clients, and created Exportgate.gr

Exportgate.gr is the first business networking platform that connects Greek exporters with importers from around the globe

https://www.youtube.com/watch?v=zV1aBWR057E


Backup


Exportgate.gr – The Pioneering Digital Portal for Exports

Exportgate is an initiative of Eurobank, in cooperation with the Panhellenic Exporters Association (PSE), the Greek International Business Association (SEVE), the Exporters Association of Crete (EAC), SEV Hellenic Federation of Enterprises and the main bilateral chambers of commerce in Greece. The initiative operates under the auspices of the Greek Ministry for Development & Competitiveness.

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More than 1500 Greek exporters connected to more than 3000 importers from 40 countries around the globe

3.000+ Companies from 40 countries are Exportgate.gr members

Promotes Greek companies to 800.000+ visitors from 110 countries

1.500+ Dynamic Greek Enterprises


Exporters get comprehensive support and tangible value from the portal

Insight

30.000 Market Reports on exports to international markets

Documents, Controls, Customs, Statistics for Exports to 180 countries worldwide

Online “Frequently Asked Questions” (FAQ) service

Know-How

Consultation from the “Ask the Experts” trade team

Financing alternatives

Online useful tools for exporting activities and calculators for estimating export costs

Networking

3.000 members from 40 countries

25.000 importers from USA, India, China

200 million company info and financial reports from Dun & Bradstreet (D&B)

Promotion

Extensive Promotion of Greek Companies to International Markets

State-of-the-art promotional and presentation tools

Online presentation of Greek products

State-of-the-art networking tools


Wrap up – Three key messages to take away

Payments are increasingly becoming a commodity leaving little room to compete on any grounds other than price

Incumbents revenues are at risk from high technology disruptors as well as regulation

Banks should react by leveraging their relationships with clients and by going beyond the traditional banking services to cover clients’ underlying needs

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