Post on 08-May-2015
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1June 25 and 26
Hyatt Regency, Santa Clara, Calif.
Banking & Financial Services
2June 25 and 26
Hyatt Regency, Santa Clara, Calif.
Digitize Session: Mobile PaymentsKumar Rao, Head of Cards & Payments, TCS
3June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Forces of change leading to Digital Payments
Relevant Global Trends
Consumer Behavior/Expectations
Payments at a Cusp of Innovation
Regulatory Landscape
Globalisation / Global Standards
Competitive Pressures/Threats
Evolving Financial Crime
B2B Demands
Shift to Debit, Decline in Check, Cash Value Conscious, Need for convenience Service Expectations, Instant handling Recognition, Personalisation, Control
Mobile/NFC, Social Network, Location Intelligence Diverse form factors, Ubiquitous access Micro-payments, Virtual currencies, Prepaid cards Financial Supply Chain Management Promoting efficiency & competition Consumer protection , Transparency, Portability Interchange and Pricing regulations Data and Reporting standards
Demand for cross border payments Regional ACH systems Global message & security standards International Payments Framework
Alternate Payment Services Third party bill payment, mobile & P2P schemes Entry of non-traditional players (Retail, Telecom) Commoditization, Reducing barriers to switching
Ease of doing business, Seamless Integration Improving Efficiencies and Service Real-time, faster bulk payments Complete information with payments
Emerging technology risks Data and Identity theft opportunities Fraud rings, Increasing cross-border activity Money laundering, Stringent AML regulations
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Strategic Response ThemesAnalytics &
Insights/Big Data
Channels & Form Factors
Enterprise Fraud and Risk
Systems
Global Message Standards
Partner Ecosystem
Customer Loyalty and Retention
Open API/Software Platforms
Enterprise Risk and
Compliance
Tokenization & Encryption
Payments Hub
Cloud Services
New CSMs/Payment Schemes
B2B Integration Information based Services
Analytics for Test & Learn
Risk & Fraud Analytics
Behaviour based
Authentication
Faster Payments
Canonical Data Models
Insight driven Service
Excellence
Straight Through
Processing
4June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Industry Analysis – Mobile Payments
Mobile Devices purchases will exceed $1 Trillion by 2017Just above 2.5% of worldwide commerce theoretically addressable by mobile payments Source IDC Financial Insights
Faster and safer ways
Universal ‘everyone can use it for all types of payments’
Drivers in the Payments Landscape
Ease and convenienceCost Reduction – Eliminate
paper-based payments
Mobile device - The next best form of payments
Convenient‘simple, always
available, and least expensive’
Secure ‘as good as cash for
transfer of value’
Mobile for payments
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Search, see, experience, price check & buy
Location based offers & real time discounts
Multi factor authentication (OTP)
Real time access to account, reward points
Can carry multiple payment cards
Complete man to machine payments, effectively
Mobile for beyond
payments
5June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
View on Digital Payment Innovations
• Cloud Services • E-Wallets• Proxy Payment• Bill Payments• Mobile POS• M-RDC• Contextual Offers• 2D Barcodes for payments
• Open APIs and Software Platforms
• NFC based payments• Open Mobile Wallet• Offer redemption at POS• Location Aware Applications• PFM across Banks• Spend Advisor for best payment
• Closed Loop Mobile Wallets• QR / Color Code• Carrier Billing• Social Share of Card linked
Offers and purchase experience• Dynamic Card
• Alternate Digital Currency• Enhanced Authentication /
Biometrics• Speech Recognition• Wearable device authentication
Time Horizon
Adop
tion
6June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Mobile Payments – Industry Trends
Wallet Apps
Pre TXN Info
PaymentPost TXN
Value
• Open Wallets• Closed Loop• Retailer
Wallets• Carrier Billing• Virtual Wallets
• Offers and Coupons• Invoices and Bills• Calendared
Payments• Rewards
Information• Merchant APIs• Spend Advisor
• Contactless (NFC / QR) P2P, POS
• OTA P2P, m-Commerce, Bill Pay
• Dynamic Cards POS• M-POS Dongle, Camera scan• Remote Check deposit• Card Less ATM withdrawal
• Rewards Accrual / Redemption
• Offer Redemption• Receipts upload• Spend Analytics• Social share• Gift Cards
Value added services that enhance the experience and deliver benefits to the end user before, during and after the payment activity will be key to driving mobile payment adoption
7TCS Innovation Forum
June 25 and 26Hyatt Regency, Santa Clara, Calif.
Wallet Applications
m-CommercePayment
Physical POS Payment
e-CommercePayment
Remote P2P
Payment Credentials stored on : Cloud Device
1.0
1.5
1.5
1.5
Empty Hand
CardCard
Others
Merchant Customer Exchange
(MCX)
Apple Passbook
Microsoft Wallet Hub
Wallaby
Considerations
Authentication – In-band vs. Out-
of-band
Secure Element Management
Control of Customer ID
Card
8June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Mobile Payments – What’s in it for Banks ?
Advantage Banks –• Existing relationship with consumers and merchants• Customer trust with data protection• Ability to leverage and extend existing loyalty programs, redemptions and offers
Enhance Custome
r Experien
ce
Business Growth
Cost Efficienci
es
Marketing
Advantage
• Customer retention
• New Customer acquisition
• Improved cross selling
• Maintaining leadership position
• Get access to larger customer base
• Lower unit transaction cost
• Optimizing operational costs
• Significant incremental revenue generation from multiple new streams
9June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Key Questions to be addressed
What is the elusive secret sauce for success in mobile payments ?
Should Banks co-operate or compete with non-Traditional Wallet providers like Google, ISIS or MNOs ?
Panel DiscussionModerated by: Shashi Bhushan, TCS
Panelists Rich Clow, Global Head of Mobile Strategy, Products and Programs, Citi Global Consumer TechnologyKumar Rao, Head of Cards and Payments, TCS
June 25 and 26Hyatt Regency, Santa Clara, Calif.
Thank You
June 25 and 26Hyatt Regency, Santa Clara, Calif.
12June 25 and 26
Hyatt Regency, Santa Clara, Calif.
Analyze : Business Insights from
Big DataK Arumugam, Head of Big Data & Analytics Practice-BFS,
TCS
13June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
The digitization of the customer’s world iscreating new norms of interaction
Self Servic
e
Web
Mobile
Social
Needs
Risk Toleranc
e
Personal
Profile
Imp
licati
ons
Infrastructure
Data Management
Data Analytics
Visualization
14June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Big Data Adoption in BFS
Low-cost, high volume and performance Data Warehouse which can easily scale-out
Huge Cost Savings per TB as compared to EDW appliances
Massive parallel computing tool to divide and conquer workloads
Significantly reduced computation time for complex analytics from days to a few hours
Horizontal Use cases
• Log Analytics
• Click Stream Analytics.
• Social Analytics
Functional use cases
• Improved Fraud Prevention
• Churn Prediction• Improved
delinquency predictionn
• Campaign Management
• Multi Channel Customer Sentiment
• Product Strategy• Risk Monitoring
Complement existing Enterprise Data Warehouse
Data Transformation Platform, ETL -> EL-T
Warm Data Archival
Digital Asset Management
Customer Acquisition & Retention
Regulatory & Compliance
Risk & Finance
15June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Big Data Global Survey by TCS - Context
White space on Big Data
How much companies are investing in Big Data
Specifically, what they are doing with their Big Data investments – what activities in what business functions they were focusing on and saw the highest potential
What kinds of returns they are getting on their investments
How they have organized the people who process and analyze Big Data
Source: www.tcs.com/BigDataStudy
16June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Key Observations from Survey
Banks Are Spending heavily on Big Data and they plan to spend even more• Median 2012 Spending per Bank is around $19M• Twice the median Spending across 12 Industries• Predicted to be 28M per Bank by 2015
Unstructured Data is a large part of Big Data Mix and expected to grow• On an Average 26% Unstructured and 20% Semi Structured• Growing proportion of around 30% is coming from outside the enterprise
Where Banks are focusing their Big Data Investments ?• Two out of top 3 enterprise goals for Big Data is about their customers (Up Sell /
Cross Sell)• 47% of Big Data spending Priorities were related to Customer Acquisition and
Retention(17% Marketing, 16% Sales and 14% Customer Service.)
Source: www.tcs.com/BigDataStudy
17June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Key Observations from Survey - Contd..
The ROI on Big Data• 86 % had improved decision making using Big Data initiatives• Average ROI of around 44% in 2012
How are Banks organizing their Big Data Activities• Majority had centralized their Big Data activities• (32 % in IT , 34 % in Analytics group , 35% in embedded in business functions )
Greatest Challenges to Tapping Big Data are NOT Technological• Getting business units to share information across organizational silos• Determining what data to use for different decisioning• Business Case approval for Investments
Source: www.tcs.com/BigDataStudy
18June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Top 5 Innovations in BFS using Big Data
Customer 360 – Next Best Action• Reduce Customer Churn• Predicting customer’s need• Fostering cross sell / up-sell• Customer Profitability
AML / Fraud Detection• Credit card fraud – point of
compromise• Trade Surveillance – Rogue/ Circular
Trading• Complex Money Transfer Chain• Internal Fraud
Investment Banking / Wealth• Post Trade Analytics platform• FA Recommendation Engine• Price Optimization
Sentiment Analytics• Brand Loyalty / Analysis• Customer Sentiment• Customization of Product /
Offers
Active Management of Risk & Compliance• Aggregation of counter party
exposure• Manage and optimize portfolio
risk• Basel Process Optimization• Warm Data Archival
Using Big Data to Acquire and Retain Digital Banking Customers
June 25 and 26Hyatt Regency, Santa Clara, Calif.
20June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Role of Big Data in Customer Acquisition and Retention
Customer
Product Transactions
Web Intelligence
Social Media
Internal Text Data
What do they SearchPage NavigationWhich Product
BlogsTweetsPosting
Call CenterDirect ContactResearchLog Files
Big Data Analytics
Improved Customer Acquisition
Product Innovation
BetterCustomerRetention
Ability to find hidden meanings and relationships in data when it is combined from multiple sources in its raw form.
21June 25 and 26Hyatt Regency, Santa Clara, Calif.TCS Innovation
Forum
Sales and Marketing
Customer Acquisitio
n
Customer Service
Brand Reputatio
n
Customer Retentio
n
Product Innovatio
n
Top 6 ways Big Data can Help Customer Experience
Micro Segmentation Campaign Management
Leads to
Leads to Improved
Improved
Next Best Action Increase wallet Share
Customer Sentiment Brand /Product Sentiment
Loyalty Management Channel Strategy Churn Prediction
Product Customization
Panel DiscussionModerated by: Dr. Gautam Shroff, TCS
Panelists David Webb, Chief Information Officer, Equifax
K. Arumugam, Head of Big Data and Analytics Practice for BFS, TCS
June 25 and 26Hyatt Regency, Santa Clara, Calif.
SummaryQ&A
Thank You
June 25 and 26Hyatt Regency, Santa Clara, Calif.