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Industry Trends and Forecasts H. TERRIE CLOUD Vice President/Product Manager
Industry Trends and Forecasts
H. TERRIE CLOUD Vice President/Product Manager
Agenda
• Industry Trends and Forecasts
State of the Industry
Top 12 Industry Trends
The Future of Banking
State of the Industry
Industry Trends and Forecasts
What one product or service do we offer
that customers cannot get anywhere else?
Financial Institutions
Industry Trends and Forecasts
People need services …not banks.
Source
Current Industry Image
Tangel. A (2013, January 12) Finance, banking the least-trusted industries, survey finds LA Times. http://articles.latimes.com/2013/jan/21/business/la-fi-mo-finance-banking-the-least-trusted-industries-survey-finds-20130121.
46%
25%
0%5%
10%15%20%25%30%35%40%45%50%
2012 2011
Industry Trends and Forecasts
What is Your Wallet Share?
Average household has 16 financial services
Fee vs. interest income
Whole relationship vs. individual account
Industry Trends and Forecasts
Industry Trends and Forecasts
Top 12 Industry Trends
Trend 1 ─ Mobile Banking 2.0
Industry Trends and Forecasts
Over 50 million
users in U.S.
Over 300 million
users today
Over 600 million devices
Trend 1 ─ Mobile Banking 2.0
Industry Trends and Forecasts
Reach unbanked customers
Smartphone and tablet • To app or not to
app
Its own technology
Trend 1 ─ Mobile Banking 2.0 Features
Sophisticated alerts
Debit card management
Mobile approvals
Mobile payments
P2P
Electronic wallet
Opt-in, location-based marketing
Tablet support
Industry Trends and Forecasts
Customer-behavior modeling
Targeted marketing
On-demand features and functions
Tablet support
Trend 2 ─ Online Banking 3.0
Industry Trends and Forecasts
Personal financial management
Person-to-person payments
Authorizations and approvals
Google-like search
Sophisticated user rights
Trend 3 ─ Electronic Safe Deposit Box
Industry Trends and Forecasts
Critical documents storage
File management
Customer-created categories
Accessible by anyone, anywhere
Fee-income opportunity
Trend 4 ─ Remote Deposit Capture
Its own application
Accessible and affordable
Mobile support
Integration with online, mobile, and POD
X9.37 standardization
Fee-income opportunity
Policies and procedures
Fraud prevention and duplicate check controls
Industry Trends and Forecasts
Trend 5 ─ Mobile Photo Bill Pay
Use a mobile device
with a camera
Capture a
photo of a bill
Pay the bill
with one click
Revenue opportunity
Industry Trends and Forecasts
Trend 6 ─ Bring Your Own Device
Industry Trends and Forecasts
Over 4,000 devices
Employees will use regardless
Support is challenging
Limited support for official apps
Universal security policy
Password protection
Trend 7 ─ Mobile Commerce
Industry Trends and Forecasts
26%
46%
0%
10%
20%
30%
40%
50%
U.S. International
Mobile-payments usage
Trend 7 ─ Mobile Commerce
Electronic wallet
P2P payments
Pentagon, Starbucks, and Square
Industry Trends and Forecasts
Opportunity to reach unbanked customers (especially internationally) First National Bank (South Africa) has 700,000 mobile banking users
Trend 7 ─ Mobile Commerce
Commerce Every second a sale is made on
eBay® via mobile
$119 billion by 2015
Ticketing Users to reach
750 million by 2015
Coupons In Japan, 4.5 million use e-coupons from
McDonalds
$128 billion by 2014
Industry Trends and Forecasts
Trend 8 ─ Social Media 2.0
Industry Trends and Forecasts
Customer focused
Approvals
Targeted marketing
Referrals
Payments
Essential for Generation Y
Trend 9 ─ Bring Your Own ID
Device (something you HAVE)
PIN (something you BRING)
Personal attributes (something you ARE) • Palm and fingerprints • Voice and facial • IRIS scans • Mobile identity • GPS locale
Industry Trends and Forecasts
Trend 10 ─ Street Creditability
Industry Trends and Forecasts
Social media insights • Bills and debts • Financial woes and windfalls • Comments about financial
industry • Feedback from friends and
followers Actual referral ratios Utilities and mobile-payments history Credit worthiness and rate adjustments
Trend 11 ─ Mastering the Customer Experience
Self service is key • Online and mobile enrollment
• Login assistance
• Debit card management
• Authorizations and approvals
• Gen Y requirement
Easy to use apps
Rapid response and availability
Security and risk management
Fraud prevention
Industry Trends and Forecasts
Trend 12 ─ Behavior Modeling
Industry Trends and Forecasts
Continue to learn about customer behavior
Depending on the transaction, the institution may • Approve but warn the customer • Approve but warn the back office • Put on hold • Stop and reject • Alert the customer
Available through multiple channels
The Future of Banking
Industry Trends and Forecasts
The Future of Banking
Industry Trends and Forecasts
Channel of choice will be mobile
Mobile payments and systems will continue to evolve
Innovation will be vital for new fee opportunities
The Future of Banking
Best-of-breed solutions will
become mainstream
Regulations will continue to
impede financial institutions
Generation Y will be the
heirs of your deposit base
Industry Trends and Forecasts
Thank you! Questions?
H. Terrie Cloud Vice President/Product Manager
(704) 588-4441 (office) (704) 904-5819 (cell)
[email protected] www.cardinalsoftwareinc.com
Industry Trends and Forecasts
