Simple bank is the way the world calls our customer centric bank. In this issue we sum up the best social business case study using simple bank and we analyze future opportunities around it.
'BBVA InnovationEdge' is the first corporate multiplatform magazine focused on innovation. Each edition featuresarticles, analysis and huge information about a particular theme. The mainpurpose of the magazine is to express the new trends and the upcomingtechnologies that may impact to the financial industry.
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trustShift happens and, in the business world, organizations are looking for new business model innovations to minimize risks and to maximize opportunities. The idea is clear: from pushing products to cultivating customers relationships.
“We are free to choose our future” November 11, 1989 East Berliners climb onto the Berlin Wall to celebrate the effective end of the city’s partition, 31st December 1989.
“We can find out anything that we don’t know already” June 3, 1996 Founder of Netscape James Clark speaks June 3, 1996 in Chicago, IL. Clark, who founded the Fortune 500 computer systems company Silicon Graphics, founded Netscape in April 1994 with Marc Andreessen which currently employs more than 2000 people in 17 countries.
“We can get stuff done anytime, anywhere” March 5, 2004 A traveler walks past an advertisement for Research In Motion’s BlackBerry handheld e-mail device March 5, 2004 at O’Hare International Airport in Chicago, Illinois. According to Don Morrison, chief operating officer of Research In Motion, the maker of the BlackBerry, the handheld e-mail devices are used by numerous government officials on Capitol Hill.
“We no longer need advice from an expert; we can tap into the wisdom of crowds” January 20, 2007 MySpace.com co-creators Tom Anderson (C) with producer Efren Ramirez (L) and Director/Producer Chris Barrett (R) from the film ‘After School’ poses for a portrait during the 2007 Sundance Film Festival on January 20, 2007 in Park City, Utah.
Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customer has taken the control, the banks of the future must help each customer to reach his individual goals.
In this inevitable change towards ‘customer centric’ banking, BBVA is leading. Major changes to the BBVA business model have already begun, with the renewal of the back-end systems platform and continue with several front-end projects. Banks like BNP Paribas, Citibank or HSBC are also addressing the concerns of the ‘customer-centric’ era of banking, and testing ways of creating a personal rapport with customers. The vision of most banks is to provide their customers with a seamless, fully integrated and uniform experience across all channels. Here is how they do it.”
BBVA s answerAt BBVA, we have been focusing on CCB since 2008; the bank has been hard at work to ensure that the efficiency side (the back-end) of the business model would be ready to offer a customer-centric banking business model. With the goal of offering complete back-end capabilities for the Customer-Centric Bank by 2013, BBVA has mapped out its infrastructure transformation.
BBVA ABIL ATM revolutionary banking machine. ABIL is a revolution regarding the traditional self-service. It has a large touch screen, direct access to all common operations and has a surface that allows support personal items to operate with greater comfort.
In BBVA Bancomer customers can access specialized advice and receive personal reassurance, at the same time flagships allow BBVA to buid out its brand, as well as offer customers day-to-day banking via the easy bank area of the branch.
Currently, the branch is the main touch point for retail banking and, as such, banks are continuing to invest in it. In general, the banks are utilizing flagships to increase the value of the brand and/or use them as testing grounds for new customer experience innovations.
Barclays, United KingdomInspired by retail flagships, such as Apple and Nike, Barclays opened its Piccadilly Circus flagship store at the end of 2008 and announced that they would open 50 more in the near future. Accord-ing to Barclays, their flagships are more accessible, comfortable, and “simpler for customers” in an attractive and engaging manner.
BNP Paribas, FranceLaunched in late 2010, BNP Paribas’ flagship aims to “Offer everyone a new experience, a site open to all; reinvent the relationship with clients and prospective customers, through open-ness and responsiveness, whether informing people directly or helping them to learn; turn the branch into a ‘lab’ promoting innovation and new features; and position BNP Paribas as a pio-neer of innovation.”
Citibank, USACitibank flagships offer hi-touch, specialist advisory services, and smart banking technologies to improve the experience for clients across all channels in core markets. With the collabora-tion with Eight, Inc (responsible for Apple Stores design), the first prototype store debuted in Singapore in 2008. Over 100 branch-level processes were reengineered. There are even four patents pending.”
CommBank, AustraliaOpened in March 2011, CommBank’s flagship aims to offer, “seamless service through state-of-the-art technology and flexible banking solutions, (their) goal is to solve any financial need (the customers) may have, all in one place.” Commenwealth Bank’s flagship offers: an online booking system, interactive touchscreens, NetBank kiosks, iPads and iPod Touches, a welcome concierge staff, experienced banking specialists, and a professional barista café.
Deutsche Bank, GermanyDeutsche Bank’s Q110 is future orientated, simple, and different. Opened in 2005, the flagship makes bank products more tangible: “customers shop for financial products in off-the-shelf boxes, like in a supermarket.” Q110 fosters innovation culture at Deutsche Bank by providing a “playground” for the bank personnel, who are periodically rotated.
HSBC, Hong KongOpened in 2008, HSBC’s flagship model was part of the bank’s HK$300 million commitment to revamp its retail presence. “People are shifting from the more traditional, transactional bank-ing - over the counter - to more sophisticated financial planning, . . . The next step will be find-ing out how to make use of this good experience to build customer relationship.” The efficient handling of basic transactions allows customers to “sit down” and discuss wealth manage-ment issues.
Raiffeisen Bank, SwitzerlandDesigned by world-renowned design firm NAU, “Raiffeisen’s flagship branch on Zurich’s Kreuz-platz dissolves traditional barriers between customer and employee, creating a new type of ‘open bank’, a space of encounter. Advanced technologies make banking infrastructure largely invisible. ... This lounge feels more like a high-end retail environment than a traditional bank in-terior.” The flagship opened its doors in early 2011.
Skandia, SwedenOpened in early 2011, “everything is aimed at creating the right experience for the client.” Skandia believes that “a committed and involved client is also a more loyal customer and can be a greater act as an ambassador for us.” “In today’s world of consumer power, finan-cial turmoil and demand for transparency even banks must be open and accessible: a place that can make people’s dreams and ideas come through.” The flagship opened in early 2011.
BRE, Poland (MultiBank)Established in 2001, MultiBank is a combination of traditional banking and modern banking, offering comprehensive services in the Financial Services Centers across the country. Multi-Bank’s strategy is to “continue to attract young and sophisticated clients and accompany them as their affluence increases over time remaining their bank partner for life.” As part of the bank’s plan, the IT infrastructure design is streamlined so that BRE can offer multiple services efficiently, by having a market leading open-architecture.
CheBanca, Italy Launched in 2008, CheBanca is both a physical and virtual branch. It’s an innovative model based on client’s emotions, with the goal of providing an ideal banking experience where the primary attributes such as security, transparency, convenience, disinterest (treated as equals), etc. Everything is geared towards the client: physical space, employees, user interfaces, and multi-channel integration; all orientated to satisfy the clients’ needs or wants.
GE Money Bank, Czech Republic GEMB is all about service, “providing easily accessible, simple, and beneficial products and ser-vices to retail and SME clients.” GEMB’s strategy creates a “we” relationship by accompanying clients to “do something” (task oriented) or to “ask something” (question oriented).
ASB Bank, New ZealandIn September 2010 ASB Bank opened its door to the world’s first virtual branch in Facebook. Custom-ers can log on to the service via Facebook and have real-time, secure conversations with ASB staff. The general manager of ASB, Anna Curzon, states, “Customers will be able to chat with our dedicated team about any issues - from home loan options, to simple savings tips, or how to access foreign cur-rency for an overseas trip. The Virtual Branch will be able to carry out the same services as our con-tact centre.” Initially, the virtual branch was launched to gauge customer interest.
Simple, USA“Imagine, for a moment, a bank that doesn’t suck. A bank that doesn’t gouge you with fees. A bank that doesn’t treat you like crap. A bank that cares about design, but gets out of your way. … A bank that’s building a platform for the future of personal finance.“ According to Simple, “while your money is FDIC-insured and held with our bank partner, we provide the tools and customer support you need to manage, understand, and automate your everyday spending and saving.
Bobber Interactive, USAWinner of FinovateSpring 2010 Best of Show award, Bobber “provides young adults an innova-tive FDIC‐insured payment and savings platform that combines social media and game psychol-ogy to drive user acquisition, engagement and loyalty. The company is targeting the 30 million Gen Y consumers. … Bobber will also drive opt‐in lead generation for financial institutions.” As of December 2011, Bobber Interactive is in Beta (invite only).
SmartyPig, USAOpened in 2008, SmartyPig was the first online banking application that combines Web 2.0 with social networking. SmartyPig allows customers to open goal-based savings accounts, earn a competitive interest rate, invite their friends and family members to help them reach their goals, and then get the most money for their money through cash incentive and smart spending pro-grams. … SmartyPig has been deemed “Bank 2.0” by leading American financial technology opinion makers for being the only true banking application that is social.”
banksBy 2020, most of the consumers will demand retail banking products and services specifically designed to meet or exceed their needs or desires (such as mobility, social, simplicity, transparency, etc.). The customer-centric banking experience may help the banks to explore new opportunities. Many financial institutions are trying to move towards it. Some are doing it in different ways, but, are they effective?
ers, it also invites competition; as they are only
one click away. It seems that a radical change
in paradigm is underway.
Reiterating the finding from EFMA’s Retail Fi-
nancial Services Strategic Insights and Best
Practices, “The vision of most banks is to
provide their customers with a seamless, ful-
ly integrated and uniform experience across
all channels. (However) many banks are still
years away from achieving this.”
Opportunities for Customer-Centric BanksThe customer-centric bank branches may
help the banks explore new areas of growth.
Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customers has taken the control, the banks of the future must help each customer to reach his individual goals.
In depthA list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the ‘Simple Bank’ report.
Books & publications
Business Model Generation framework. Alex Osterwalder, 2009
IBM | 2010 Chief Executive Officer Study
Booz Allen Hamilton | The Customer Centric Organization. 2004
Ernst & Young | A new era of customer expectation: Global Consumer Banking Survey 2011
PricewaterhouseCoopers | Getting to Know You: Building a Customer-Centric Business Mod-el for Retail Banks. 2011
Brett King, Bank 2.0 How customer behaviour and technology will change the future of finan-
Trending issues Technology trendsIn the following section, we outline the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issuesIn this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summa-ries were prepared by the editorial board. Further information is made available for each given topic.
Core banking platformInternet irruption causes so much data in the world and
its support is very expensive. There are some trends
searching new ways of save money and energy.
New formatsBased on design principles focused on customer insights,
New formats offers retail banking customers more
channels which are more granular and highly functional;
a consistent, simple, and collaborative universal user
Centros de datos que usan chips de teléfonos inteligentes No es ningún secreto que los centros de datos cada vez se enfrentan a mayores exigencias (hay que almacenar en algún sitio todos esos 800 millones de perfiles de Facebook). No es sorprendente que las compañías que operan estos almacenes estén preocupadas por los costes de uso de toda esa energía. En septiembre, Google anunció que sus operaciones globales usaban de forma continua 260 millones de megavatios de potencia, aproximadamente un cuarto de la energía generada por una planta de energía nuclear.
Virgin Money: What Making ‘Everyone Better Off’ Means at the Branch Level What does making “everyone better off” mean at the branch level to Virgin Money, which yesterday agreed to acquire Northern Rock from the British government for $1.18 billion? Rather, than describe it, we offer some images of Virgin Money’s current and future branches.
Mobile banking will continue to grow next year across a multiple fronts. Not only will more banks jump into mobile with optimized sites and application, but financial institutions will also build their existing mobile programs with a variety of new services.
Source: Mobile Comerce daily, December 30, 2011
Core banking platform
New formats
Mobile banking
Enterprise 2.0
Mobile payments
Social Media
Digital Marketing
Crowd finance
App ecosystem
New Gizmo era
New banking concepts
Join & enjoy
Smart cities + urban mobility
Health
BBVA y Bankia lanzan el pago con tarjeta sin firma ni pin BBVA y Bankia han lanzado un nuevo servicio conjunto que permitirá al cliente realizar pagos de hasta 20 euros con tarjeta sólo con acercarla a un lector y sin necesidad de firmar recibo ni teclear número pin, según anunciaron ambas entidades.
Google persuades Spanish bank BBVA to use the cloud The bank would use Google applications like email, calendar, docs, chat, video conferencing and other collaboration tools to “achieve a cultural change” and get “the whole company working together” across the 26 countries where BBVA is based.
Nuevos movimientos de la compañía líder de Internet con los que reorganizar su oferta de servicios online..
Source: Desarrolloweb.com, November 21, 2011
Core banking platform
New formats
Mobile banking
Enterprise 2.0
Mobile payments
Social Media
Digital Marketing
Crowd finance
App ecosystem
New Gizmo era
New banking concepts
Join & enjoy
Smart cities + urban mobility
Health
El móvil reemplazará al pago en efectivo en 2016, según PayPal. En 2016, utilizaremos nuestros teléfonos móviles como método de pago de bienes y servicios casi en mayor medida que las compras en efectivo, con cheques o tarjetas. Así al menos lo considera PayPal, que ha publicado un informe (Money: The Digital Tipping Point), llevado a cabo por Forrester, según el cual 45 millones de británicos utilizan ya un móvil y cerca de la mida de los 550 compradores móviles encuestados (49 por ciento) aseguran que se están planteando utilizar su terminal para comprar bienes y servicios al menos una vez cada tres meses..
Las aplicaciones sociales corporativas crecerán un 61% al año hasta 2016 Según un estudio de Forrester, esta industria generará 6.400 millones de dólares hasta 2016. Los medios sociales no se limitan únicamente a la actividad privada y de ocio, sino que es un paradigma TIC completamente válido para los entornos profesionales. En ese sentido, el mercado de las aplicaciones sociales para el mundo corporativo crecerá a un envidiable ritmo del 61% al año hasta 2016, año en que su volumen alcanzará los 6.400 millones de dólares.
The Brands With the Top Relationship Quality on Facebook
On Facebook, like in life, it’s not enough for someone to say he loves you. He has to prove it. In Fathom Analytics’ new Relationship Quality Index, the top-rated brands on Facebook tend to be the ones with the most likes. YouTube (48 million likes), MTV (29 million), Coca-Cola (36 million), Starbucks (26 million) and Disney (29 million) make up the top five. But because of other factors, such as engagement and emotion, those brands don’t fall in precise order of fan counts.
The crowfunding revolution kickstarts a new economic hope Inspired by the success of funds like Kickstarter in the US, the crowdfunding revolution in 2011 broke onto the shores of Europe and for a country like Ireland battling to reinvent itself and fight its way out of recession, the business model has achieved tremendous success in just one year.
At CES, Expect More Gadgets Telling You to Get Off the Couch If your resolutions for the new year include health and fitness goals, several new products showcased at the Consumer Electronics Show in January just might help you get there. Two of the 25 TechZones on the showroom floor at the Las Vegas Convention Center will be geared specifically toward digital health, with more than 171 exhibitors showcasing products as part of the Digital Health and Fitness category.
Source: Wall Street Journal Online (All Things), December 30, 2011
Movenbank: The world’s first cardless bank launches in alpha With Google Wallet, Square, PayPal and other initiatives emerging in the mobile payments space, it was only a matter of time before a dedicated mobile, cardless bank emerged. Movenbank, dubbed “the world’s first everyday cardless bank”, launched its Alpha site this weekend. It’s an exclusively online, new model of bank that uses social, mobile and gamification technology.
El museo del Louvre sustituirá progresivamente sus guías turísticas electrónicas por la consola. Para ello dispondrá de cinco mil unidades. El museo ha valorado su funcionalidad 3D y la doble pantalla para ofrecer a los visitantes una nueva manera de descubrir las obras que alberga la instalación. La consola propondrá una visita en tres dimensiones y ocho lenguas sin necesidad de emplear gafas para disfrutar del efecto tridimensional. El museo tiene prevista la inversión de un millón de euros para mejorar las aplicaciones móviles, para teléfonos y tabletas, del museo, que han sido descargadas tres millones de veces. El uso de la realidad aumentada figura en sus planes.
Source: EL PAÍS
Core banking platform
New formats
Mobile banking
Enterprise 2.0
Mobile payments
Social Media
Digital Marketing
Crowd finance
App ecosystem
New Gizmo era
New banking concepts
Join & enjoy
Smart cities + urban mobility
Health
El fin de los ‘video’juegos Philip Tan, investigador y director del laboratorio de videojuegos MIT-GAMBIT, cree que su uso cada vez mayor hará que los llamemos solo ‘juegos’.
Crean un sistema operativo para controlar las ciudades
Este novedoso software recoge toda la información de sensores colocados estratégicamente en las ciudades para saber en todo momento lo que está ocurriendo y dar avisos en caso de que algo no funcione.
Source: The Inquirer, 3 Octubre 2011
Core banking platform
New formats
Mobile banking
Enterprise 2.0
Mobile payments
Social Media
Digital Marketing
Crowd finance
App ecosystem
New Gizmo era
New banking concepts
Join & enjoy
Smart cities + urban mobility
Health
La internet de los objetos Twine es una cajita de sensores programable pensada para amantes del “do it yourself”, gente con ganas de experimentar y cierta mano para la tecnología. La gracia del dispositivo es que cuenta con una interfaz de Software muy sencilla. No hace falta saber programación para conseguir, por ejemplo, que envíe un SMS a nuestro teléfono cuando algo ocurre.
Source: The Inquirer, 3 Octubre 2011
La recarga inalámbrica para vehículos eléctricos ya es una realidad
Aquellos emprendedores digitales que quieren hacerse un hueco en los negocios on line aún tienen problemas para poner en marcha un proyecto.
La fiebre de las aplicaciones médicas móviles en Kenia
Este novedoso software recoge toda la información de sensores colocados estratégicamente en las ciudades para saber en todo momento lo que está ocurriendo y dar avisos en caso de que algo no funcione.
Source: TECHNOLOGY REVIEW
Esta caja envía tus datos médicos directamente a la nube Qualcomm aspira a integrar los aparatos domésticos de seguimiento sanitario y proporcionar una acceso más sencillo a los médicos. Una nueva plataforma de Qualcomm propone una sencilla caja que detecta las señales de aparatos de decenas de fabricantes distintos y los envía mediante una conexión móvil a una base de datos en la nube accesible tanto para el personal sanitario como para los pacientes.
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
The latest information available in the month
of October related to LTE/4G maintains this
technology trend as a priority for BBVA for
the medium term time frame. Operators are
beginning to take up LTE/4G.
Growth projections for handsets with em-
bedded LTE/4G are very bullish. For exam-
ple, according to In-Stat analyst Chris Kissel,
“There will be over 154 million LTE subscrip-
tions by 2015,” suggesting a CAGR of 79.3%
from 2011 subscriber base of 14.9 million.
He goes on to say, “Not only is the forecast
for the number of LTE/4G handsets moving
rapidly upward, so, too, is the total number
of cellular subscribers,” estimated to be 6.5
billion in 2015 globally.
Thus far, there are 26 carriers deployments
of LTE/4G worldwide. Interestingly, in 2011, 3
carriers will account for 47% of all subscrip-
tion in 2011: Verizon Wireless, MetroPCS, and
AT&T (all in the US). The 3 American carri-
ers will have 7 million of the 14.9 million sub-
scribers worldwide.
The demand for LTE/4G will be strongly
driven by the mobile video and the cloud,
as LTE/4G offers superior speeds (especially
while uploading).
LTE/4G, enabling high speed networking in your handLTE will redefine the office, making it increasingly mobile. From real-time group video conferences to connecting via mobile phone to applications that run in the cloud, employees can work from anywhere, changing the fundamental nature of the work environment.
IPv6, ready for the internet of everything?IPv6 is designed to solve problems of IPv4: we are running out of IP addresses and its hampering, among other things, technological progress. There isn’t enough IP addresses for all things to be connected. Benefits of IPv6 offers improvement in addressing and routing, security, address translation, administrative workload, and support of mobile devices.