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Top 8 Mobile Finance Trends 2015

Date post:14-Jul-2015
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  • Top 8 Mobile Finance Trends 2015

  • What will Apple Pay mean for the financial institutions? Who are the

    mobile innovators and disruptors of the financial industry? How will

    banks tackle mobile security threats in 2015? Whats the regulatory

    impact of new mobile technology such as wearables? How do

    financial institutions stay on top of mobile technology with an

    accelerated pace of innovation? How much longer will employees

    of financial firms be tied to a desktop? Weve asked customers and

    partners, spoken to industry experts and made our own conclusions

    and predictions to help financial organisations succeed in mobile

    in 2015.

  • 1. Customer First and User ExperienceThe main topics and focus when speaking to financial institutions is

    still regulatory challenges, cost reduction pressures, cyber security

    threats and reduced footfall to retail branches. Customers, whether

    they are consumers or businesses, always seem to be far down the

    priority list. Controllers, business analysts, lawyers and software

    engineers create and shape new products with limited or no

    involvement of the customers.

    When we recently showed a video to the CMO of a bank of the

    painstaking steps that a customer had to go through to sign up for

    an online account he stopped us in the middle and said, This is

    enough. We have to do something now.

  • What this means for you

    In the past banks have been pretty well protected from competition

    except a few success stories of Internet only banks. This is no more.

    With money going digital, branch offices becoming obsolete, start-ups

    disrupting loans, forex, payments and credit cards, traditional banks

    are facing real threats and challengers can grasp the opportunity.

    Forget about Mobile First if you dont like buzzwords and put the

    Customer First in your business. Give product managers and business

    managers real power to lead and develop products and customers

    experiences that put the Customer First. Tell the other departments

    that their goal is to support and not to obstruct this effort. Ask yourself

    about the honesty in having customers sign several pages of terms

    and conditions that they will never read. Start now!

    Forget about Mobile First if you dont like buzzwords

  • 2. Use Start-ups and Disruptors as InspirationFollowing on the Customer First trends, many of the start-ups in

    the fintech industry are now offering services that are directly in

    competition with the banks and not just provided to the banks. Recent

    success stories include Prosper and Lending Club in the loan space,

    Simple for improved banking, Mint (previously known as Check) for

    financial planning, TransferWise disrupting forex and Venmo in person-

    to-person transfers. Some get acquired while others continue to

    disrupt as independent companies.

  • What this means for you

    The financial industry is slower than most other industry due to the

    complexity, regulation and security requirements. Use this to your

    advantage to beat or leverage the start-ups before they disrupt your

    business or help your competitors get an advantage. Several of the

    trends outlined in this presentation can leverage the core ideas, or

    potentially technology, of these start-ups.

    Here are some of the start-ups that we believe have potential of

    disrupting or helping financial institutions disrupt the financial space

    in 2015 and beyond:

    Lenddo Using social media to score and underwrite small loans over

    a mostly mobile platform

    Ferratum Mobile/online only banking in Europe (Disclaimer: DMI client)

    Bionym Heartbeat authentication that can be used as an alternative

    or complement to passwords, secure ID devices and more to

    improve banking security

    MyMobileSecurity Personal security services and tools for bank

    customers

    Pindrop Pattern recognition to detect fraud

    Personetics Making personalised real-time recommendations to

    customers and bank retail staff based on big data

    Use this to beat the start-ups before they disrupt your business

  • 3. Omni-Channel BankingImagine if you could start completing an application for a new credit

    card from your mobile, continue from the tablet at home and when

    in need call customer service and have them help you fill out the

    blanks. Customers today expect their service providers to keep all

    data in one place and provide services based on this. However, the

    real experience is very different. Most registrations are still based

    on old fashion PDF printouts that have to be mailed to the bank. In

    fact, most banking processes are 20 years or older and were never

    designed for the web or mobile.

  • What this means for you

    Design services and user experiences that work the same way

    independent of channel and/or device. Ask customers what they

    do on the move, what they do at work or at home with access to a

    desktop/laptop, when they want to speak to customer service over

    the phone or in a retail branch and design your services based on

    this. Challenge and rethink processes and find ways to avoid barriers

    to entry such as tedious and annoying forms, 5 min videos that

    customers have to watch and papers, papers and more papers.

    Take the opportunity to redesign some of your core banking

    processes if they cannot support the user experience that customers

    expect and want.

    Take the opportunity to redesign processes to give your customers what they expect and want

  • 4. Banks Turning Into a Digital MarketplaceIn the past the bank branch office provided the opportunity for

    banks to sell everything from bank accounts, mortgages, forex and

    credit cards to pension plans, mutual fund savings and insurance.

    Now online and mobile banking have completely taken over. The

    smaller screen of mobile devices and quick bites of consumption

    (e.g. checking balance) means that the services recommended

    need to be relevant and spot on.

  • What this means for you

    Use the power of data to provide your customers with the services

    they want or need. If a customer is traveling a lot, offer them a travel

    insurance tailored for them; if a millennial has too much cash in their

    account, provide them with a first introduction to long-term savings,

    etc. Banks have amazing data at their hands although usage is

    restricted. Use it to serve your customers, because they expect it.

    Use data to serve your customers

  • 5. Help Protect Your CustomersAll the cyber security threats, hacks and data intrusions are causing

    concerns among customers. Is it safe to use my bank application

    over an open Wi-Fi network? Can other apps access the banking

    data on my phone? Can I use a device that is not my own to

    complete a personal banking transaction? Customers have no idea

    and the number of threats and media focus on this keeps increasing.

    The biggest barrier to customers signing up and using mobile

    banking is still security concerns.

  • What this means for you

    This is an opportunity for banks and not a threat. Be the bank

    that offers customers the assurance that its safe and help your

    customers stay safe. Provide them with the tools necessary to use

    the mobile safely on public Wi-Fi-networks, monitor for viruses and

    Trojan horse apps, understand the access rights of each application

    and tell them what third-party apps are safe to use.

    Be the bank that helps your customers stay safe

  • 6. Apple PayTo make it short Apple Pay was probably the most talked about

    and misunderstood disruption in finance in 2014. The impact so far

    in terms of retail payments have been minimum and will most likely

    continue to be so. The real disruption is that Apple customers no

    longer need to enter credit card details when buying goods and

    services through apps supporting Apple Pay.

    In addition to this we feel that a lot of retailers and service companies

    were a bit too fast to jump on the bandwagon in terms of supporting

    Apple Pay. Starbucks has proven that its possible for bigger retailers

    to go on their own and integrate payments and loyalty to drive long-

    term value.

  • What this means for you

    We love Apple Pay but make sure that you evaluate Apple Pay

    from a customer value perspective and the long-term impact on

    your business. How important is the data that Apple captures and

    doesnt share with you? Could you get customers to sign up

    directly with credit cards and other payment mechanisms with

    a small incentive and will this offer create greater value for your

    business in the long- term?

    Evaluate Apple Pay from a customer value perspective

  • 7. The Office is Going MobileBanks are typically the biggest property occupants in any downtown

    area and especially in the financial centers. Most financial services

    require a great share of the customer facing process and all of the

    administration work to be carried out in a bank office. This means

    that financial services sales staff frequently spends a day per week

    or more in the office when they would prefer to spend their time with

    customers. In addition to this, banks occupy prime real estate, which

    is

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