Innovation Edge. Mobile Banking (English)

APRIL 2012
Mobile banking
NEW EXPERIENCE IN THE POST PC ERA
Mobile (R)evolution Opening the doors for our customers Global snapshots Forecasting for innovation
Trending issues
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Innovation Technology trends Edge April 2012 | MOBILE BANKING
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Anytime, Anywhere World
Enabling an
New innovations are providing novel ways to enable an always on society: mobile, social, and cloud technologies are being interwoven into the fabric of everyday life creating new value or offering new efficiencies. The mobile handheld device is becoming the touchpoint for a wide array of products and services, as mobile devices are the go to gadgets for most consumers. Businesses want to be well-positioned to take advantage of the opportunities, including financial services companies.
Innovation Edge April 2012 | MOBILE BANKING
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The first commercial mobile service was launched 32 years ago in Japan, as NTT DoCoMo began offering mobile communications service to customers on December 1, 1979. Today, we are on the cusp of pervasive, global connectivity, as mobile phones have broken the 6 billion subscription mark in 2011 (See the mobile penetration graphic below). Although much of the technology under the hood has changed since the early days, in essence, mobile devices have transformed from a simple phone to a personal computing and communication device in a handheld format. While the world is still exploring and discover-
ing additional opportunities that mobile technologies may offer, its clear that we are on our way to an anytime, anywhere economy. With the right business model, companies can serve 6 billion customers using mobile technologies: for creating and maintaining sticky relationships with customers; and as the main channel for the delivery of the companies value proposition in a customer-centric way.
source: Communities Dominate Brands | Celebrating 30 Years of Mobile Phones, Thank You NTT of Japan. 2009. source: ITU (International Telecommunications Union) | Key Global Telecom Indicators for the World Telecommunication Service Sector. November 2011.
Mobile penetration timeline
2000
719subscribers million mobile
DEVELOPED COUNTRIES: 469 million (65%) DEVELOPING COUNTRIES 250 million (35%)
2005
2.21 billion mobile subscribers
DEVELOPED COUNTRIES: 990 million (45%) DEVELOPING COUNTRIES 1.22 billion (55%)
2011
6.16 billion mobile subscribers
DEVELOPED COUNTRIES: 1.64 billion (27%) DEVELOPING COUNTRIES 4.52 billion (73%)
CONNECTIVITY
mobile technologies. (10 tour)
Mobile banking and other related products and services would not be possible if our world wasnt connected. Thanks to telecommunication companies (referred to as Mobile Network Operators or MNOs), 6 billion people can potentially participate in the global
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economy with a mobile phone. That sounds like great news. However, the connectivity providers are not a happy bunch these days. They are upset because they feel as though they werent allowed to extract maximum value from their investments in infrastructure. While Amazon, Facebook, Google, and a whole lot more were striking gold in the Internet, the connectivity providers were left standing practically empty handed, relegated to the pipes only business with unflattering margins. Put that together with the ongoing shrinkage of their traditional voice businesses (both fixed-line and mobile), one can see why the telecommunication companies are strongly motivated to explore only those business models that make sense for them in the mobile space. The telecommunication companies are extremely important, as they are providers of access and bandwidth. If the connectivity providers cant make compelling business cases for the forthcoming major upgrades, such as LTE (Long Term Evolution, a next generation technology which provides sufficient bandwidth for 2-way streaming of high-quality live videos); the reality of anytime, anywhere business models may be delayed. DEVICES There are two main types of devices: dumb and smart. The dumb devices are also known as featured phones. They are the familiar phones
that our parents and grandparents envision when they think about a mobile phone. Then there are the smart devices, the ones that are leading the way in the post-PC era. The smart devices are sub-divided into tablets (such as the iPad and Galaxy Tab), smartphones (iPhone, Blackberry, Galaxy S, etc.), and handhelds (iPod Touch, PSP, DS3, etc.). Essentially, they are powerful computers in an ultra-compact format. At the end of the day, the customer will access anytime, anywhere products and services via these devices. The device manufacturers will spur new capabilities and, in turn, will spark new business cases, such as NFC technology (Googles Wallet is an early example). OS PLATFORMS The aforementioned devices need an OS (Operating System) platform to run. Currently there are several OSs in the market, such as Apples iOS, Googles Android, RIMs Blackberry OS, Nokias Symbian, Nokia/Microsofts Windows Phone, Samsungs Bada, etc. For smartphones and smart devices, Android and iOS are clearly leading the pack. APP STORE PLATFORMS Although the most popular and best-known app store platforms are offered by OS platform providers (for example, Apple offers the App Store for iOS and Google offers the Android Market for Android OS), there are also other app store platforms, such as the ones
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provided by some MNOs. Also, the concept of app store platform is also evolving as we are noticing the emergence of enterprise apps and private apps store concepts. APPS The word, Apps, automatically provokes an image of these really cool buttons that we tap on our handheld devices to do things. Technically, those apps are known as native apps. They are custom-built applications that run on a specific OS platform, often times written for a specific device or set of devices. They offer a rich experience for the end-user as the devices capabilities are incorporated into the app, such as NFC, GPS, camera, etc. However, there is a price to pay for the richness: native apps must be developed per individual OS platform, which can quickly push up the costs of development. On the other hand, there is another type of app (although lesser known): web-based apps. In essence, any mobile enabled site accessed via a mobile browser can be considered a webbased app. The advantage of this approach is the write once, publish many times capability as web-based apps are device agnostic. Most people think that web-based apps are unflattering but new developments such as HTML5 are quickly blurring the line between web-based apps and native apps; and it may prove to be a robust and cost-efficient way to produce apps that provide a rich user experience.
A
Connectivity
Wireless connection to the network
KEY PLAYERS:
Mobile Network Operators (MNOs), such as Telefonica, ATT, Verizon, etc
Devices
Handheld device manufacturers
KEY PLAYERS:
Apple, Samsung, HTC, Nokia, LG, Sony, Nintendo, etc
OS platforms
Operating System of smartphones, tablets, or other devices
KEY PLAYERS:
Android, iOS, Blackberry, Windows phone, etc
App Store
Virtual Store for app purchases
KEY PLAYERS:
Apples, Googles Android, RIMs App World, Nokias, etc
Apps
Native or web apps
KEY PLAYERS:
App developers
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(R)evolution
Mobile
Retail Banking industry analysts define Mobile Banking as platforms that enable customers to access financial services. There are three main technologies employed in Mobile Banking: SMS, Mobile Browser, and Custom Applications; and collectively, they are referred to as Triple Play. In terms of business models, Mobile Banking offers banks new ways to relate to customers (acquisition & retention; and up/cross-selling opportunities) and a new channel (which also happens to be the most cost effective). Depending on geography and footprint, Mobile Banking can be additive or transformative; in other words, One of Many or One and Only.
source: Juniper Research. White Paper: Banking on Mobile. 2009.
Innovation Edge April 2012 | MOBILE BANKING page 6
echnically speaking, Mobile Banking is composed of three mobile technologies:
Additive: Mobile Banking as One of Many. Mostly applicable in developed countries or metropolitan areas in developing countries. Markets are highly competitive. Generally, Mobile Banking is one of many channels and customer touchpoints and offers the highest convenience. Driven by Smartphone/Smart device adoption. Generational issues are influential. Transformative: Mobile Banking as One and Only. Mostly applicable in rural areas in developing countries and out of footprint areas in developed countries. Markets need to be developed. Mobile Banking enables (opens the doors to) previously unapproachable, new customer segments and offers access to banking products and services. Driven by inexpensive handsets. Generational issues are less influential.
source: BBVA | Money for All ( Internal Document). 2011. source: Juniper Research | White Paper: Banking on the Mobile. January 2009.
SMS (Short Messaging System), Browsers, and Apps. Collectively, they are known as triple play. These virtual customer relationship touch-points and channels can be developed by hand by the bank or be purchased off the shelf from Mobile Banking solutions providers. Most banks are going the safe route and adopting off the shelf solutions. In order to differentiate ourselves from our competitors, BBVA has chosen the road less traveled and we are doing it by hand. Functionally speaking, Mobile Banking is a customer relationship touchpoint and channel. In other words, it is one of many different touchpoints and channels a bank may have. However, it is the touchpoint and channel of choice of an increasing number of retail banking customers, especially Gen Y and Gen X.
source: Business Model Generation
To clearly understand Mobile Banking and its implications, it may be best to think of it as additive or transformative.
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Mobile banking technologies
USE. Widespread in developing world, many alert applications and some payment options in developed world. PROS. Can be used across platforms and carriers, smart and dumb phones, easy to use and fairly safe. CONS. Not permitted in some regions, some security concerns, reduced functionality.
SMS
Mobile browser
Custom aplication
USE. Widespread in developed world, particulary within regional and 2nd tier banks, mobile browsers connect mobile users to an augmented internet banking site. PROS. Familiar to internet banking customers, simple integration with existing internet platforms, works across devices and MNOs. CONS. Fairly common practice (no competitive advantage). Takes a number of steps to log in. Adaption to small screen not always done well.
USE. Gaining significant traction in the developed world, used for mobile banking, coupons and location based services. PROS. Provides a rich user experience. More secure and stable. Retains loyalty and offers cross-selling opportunities. CONS. Integration issues required for each device. Must be installed by customer. Can be more expensive to deploy.
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doors
opening the
for our customers
Like many other industries, the retail financial services industry is in the midst of disruptive changes: mobile, social, and cloud technologies are reshaping industries and creating new ones. Something new seems to be on everybodys minds: in the retail banking segment, the something new at the moment is Mobile Banking.
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s part of an overall retail banking business model, Mobile Banking offers the
the experience of many has been that the mobile channel is an extra cost rather than a cost reduction opportunity. Overall, the value creation opportunity is neutral at best.
source: EFMA & McKinsey. The State and Future of Mobile Banking. p. 7. October 2011.
stickiest touchpoint for banking customers and most economical transactional cost for banks. It also paves the way for new value propositions and new banking models. However, as in other industries, new entrants are aggressively entering into the retail banking business and posing new challenges for bank executives as they explore and seek out the right business model.
source: Bank Technology News | Banks Seek Sticky Relationships from Mobile Apps. February 2012.
However, for individual banks, the report goes on to say that there are three major opportunity areas in Mobile Banking: Ultra-convienient and innovative banking. Digital Commerce. Disrupting new markets.
According to the 2011 EFMA & McKinsey report, The State and Future of Mobile Banking, mobile banking for the retail bank segment (as a whole) is a zero-sum game: new revenues have been largely captured by nonbanks, most players have yet to reflect the convenience of mobile in their pricing, and Once the overall strategy for Mobile Banking is formulated, each bank will have to integrate the additive Mobile Banking into its retail banking business model. For banks aiming to be shapers, they will have to resolve the transformative aspects of the model.
Strategy defines Opportunities

Ultra convenient Digital Commerce Disrupting new markets
Follower
Mobile friendly website and basic application
110100111001100100010 00111010101001001000 1010101001110101010010
Leader
Multichannel to deliver ultimate convenience Drive sales via mobile Reduce cost to serve
110100111001100100010 00111010101001001000 1010101001110101010010
Shaper
Grounbreaking services Active partnerships First mover in unbanked and new markets
110100111001100100010 00111010101001001000 1010101001110101010010
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Call Centre $4.00
Additive Mobile Banking

Additive Mobile Banking adds to the existing business model has two main objectives: increase customer stickiness and reduce operating expenses by having a unified infrastructure (for example, CCB). In general, the bank offers Mobile Banking as a complement with its other channels (please see the issue No 1 for more information regarding banking
TRANSACTION COSTS BY BANKING CHANNEL
Branch $3.75
IVR $1.25 ATM $0,85

ONLINE
channels). This model is prevalent in developed countries or metropolitan areas in developing countries. BENEFITS OF ADDITIVE MOBILE BANKING INCLUDE:
$0,17
MOBILE
Migration of customer transaction to the lowest cost channel. Adds to the customer-centric business model.
$0,08
source: Tower group. Fiserv. Mcom 2009
May help banks to generate new value propositions and revenue opportunities, such as mobile payments and cross-selling/upselling opportunities.
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In general, transformative mobile banking are prevalent in rural areas in developing countries and out of footprint areas in developed countries.
Transformative Mobile Banking Business Models

Transformative Mobile Banking creates new value for banks by providing access to new Customer Segments, thus offering banks new sources of revenues. In other words, they can help banks go where it couldnt go with existing business models (BM). Transformative Mobile Banking aims to develop new customers (unbanked and underbanked) through the lowest-cost transaction channel via a branchless strategy. This model is either led by a bank, an MNO, a 3rd party (for example, a mobile payment provider), or as a joint venture between two or more parties. The concept of ecosystem is important here, as the banks skill and experience in
BANK-LED MODEL
MNO-LED MODEL
ecosystem management will likely become a key skill to operate these BMs effectively. In general, transformative mobile banking are prevalent in rural areas in developing countries and out of footprint areas in developed countries.
3RD PARTY-LED MODEL
Thus far, three main Transformative Mobile Banking Business Models have emerged: Bank-led models, Mobile Network Operator (MNO)-led models, and 3rd party-led models.
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BANK-LED MODEL The banks offer strong capabilities in treasury, risk management, and fraud detection; and access to capital markets and investment opportunities. However, in developing countries with a large share of population lacking financial sophistication, all the aforementioned strengths vanish. Traditional interest rate models do not apply to low-income customer base; the infrastructure is not cost effective; and unbanked customers are not always aware (and may not even care) of the banks brand.
FINO Bank (India)
MCB Bank (Pakistan)
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MNO-LED MODEL The MNOs offers their large customer base a easy to use financial transaction services with their own distribution model. MNOs can leverage their customers need to buy airtime citizens in developing countries have and facilitate person to person remittances and bill payments to increase their ARPU (average revenue per user).
M-Pesa (Kenya-Tanzania)
G-Cash (Philippines)
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3RD PARTY-LED MODEL 3rd parties, usually technologically driven companies, have strong technology capabilities. However, they lack the bargaining power over larger banks and MNOs and certainly lacks the capillarity of an MNOs distribution network.
Yellow Pepper (LatAm & Caribbean)
Wizzit (South Africa)
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Half
full or Half Empty?
Mobile Banking possibly can add to or even transform the retail banking business model by offering anytime, anywhere access to financial products and services. As banks explore the opportunities and benefits, they must be wary of the complications that also come with them.
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hen Mobile Banking technologies and its components are put together the
right way, according to the EMFA & McKinsey report, they can collectively turn it into a unique value proposition. This effectively means that bank customers can meet their bank every day, albeit remotely. These features plus a flexible cloud and app-based technology platform enables a more rapid development and integration with third party products. The benefits of mobile devices are: Anytime, anywhere availability Unique IDs (and their use), specific to each customer Simple to use, usually with rich User Experience Enablement of Location Based Services (LBS) Go to devices for consumers
source: EFMA and McKinsey & Co. | The State and Future of Mobile Banking in Europe. October 2011. p. 5.
Some of the offers will result in the creation of new value propositions for customers
Percentage of banks currently offering these features: Information reporting
77%
Alert messaging
73%
Money transfers
64%
Recurring bill payments

58%
Check deposits
55%
p2p payments
46%
Bank location services

40%
Adding payees through a mobile application

35%
Statements
34%
Administrative functions
34%
With the aforementioned benefits of mobile technologies, banks can offer value propositions.
Funding cards
28%
Mobile wallet
27%
Personal financial management

25%
Location based merchant offers or coupons

20%
Click to call
18%
NFC or proximity payments

17%
Loyalty rewards
15%
Coupon offers
12%
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RISKS
Like all goo d things in life, succes to co m e h a s seems nd in hand with challe and Mobile nge s Banking is no exceptio cording to n. Aca recent su rvey condu by KPMG re c te d garding mo bile bankin age; securit g u sy, technolo gy adoption and regulat , cos t , ion are the biggest cha lenges face ld by mobile banking. Th first two ch e allenges ar e related to s u m e r co n c co n e rn s a n d t h e latter two lenges are chalprovider re lated conce source: KP rn s . MG | Moneti z
payment va ing mobile: How banks are preserv lue chain. J ing their uly 2011. p. 11.
place in the
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Customer related concerns is it safe?

Security is the number one risk for banks and is also a key barrier for consumer adoption. Its been noted by some industry observers that the EFMA & McKinsey report fails to mention security (at all). Nonetheless, both mobile banking providers and customers clearly place it at the top of the list. Mary Monahan, adirector at Javelin Research, also addresses the concern for security. She states, The main reason consumers dont move to mobile banking is because of security concerns, Consumers want to know that their mobile interactions and transactions are encrypted, and they want some assurance that they will be reimbursed for losses associated with a mobile-banking breach.
source: BankInfo Security | Mobile Banking: Consumer Education Needed. November 2011.
wet towel around the warm fuzziness of mobile banking, stating that most mobile banking applications are used to check balances, rather than making payments (globally): Nearly all the interactions on mobile so far have been checking balances, That doesnt sound like a way to make money. Adding to this, regulation/ legislation is also perceived to shrink margins, making mobile banking a bitter pill to swallow.
source: ITNews | Gartner casts shadows on mobile banking. July 2011.
Specifically in developing markets, banks need to also understand ecosystems and manage it well to leverage the mobile banking opportunities. Given this, inexperience and unclear management objectives related to ecosystems may pose as risks or barriers for banks, such as not understanding the importance of agents or the logic of MNOs business models. In addition, especially in transformational mobile banking, MNOs pose a risk in that they need to find a business model that works. As mentioned earlier in the mobile technology overview, while they can be valuable partners for mobile banking, they can place detours ahead by delaying anytime, anywhere capabilities.
Also, customer education or awareness is a key element for mass-adoption of mobile banking, both in mature and emerging markets.
Provider related concerns: Show me the money!!!

Gartner analyst, David Furlonger, during the Banktech Summit in Sydney wrapped a cold,
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global
snapshots
Whats going on around the world in mobile banking? Conceptual pictures of mobile banking practices are presented, covering 12 countries in 4 continents.
the BBVA experience
Mobile World
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Mobile World
GLOBAL SNAPSHOTS
ACTIVOBANK (PORTUGAL) AND MILLENIUM BCP (POLLAND) Recognized as the Best Mobile Banking in Europe award by Global Finance Magazine, ActivoBank and Millenium BCP mobile banking solutions are available via a native app for the Android and iOS devices, as well as a light browser application for other phones. The mobile banking solution offers customers standard banking solutions, such as account balance and activity, payments, and card management. Additionally, the app offers branch and ATM location information, FX rates, information regarding upcoming payments, simplified activation, application update information, and other customer centric features.
SCOTIABANK (CANADA) ScotiaBank is Canadas most international bank, with global presence across the Caribbian, Central America, Latin America, and Asia. ScotiaBank offers triple play mobile banking solutions: App Mobile Banking allows customers to check accounts (personal, small business, borrowing and investing), transfer funds between Scotiabank accounts, pay bills, send and receive e-Transfers, send Western Union money transfers, and find nearby branch or ATM on smartphones (iOS and Android) Browser Mobile Banking allows customers to check personal and small business accounts, pay bills, transfer funds between Scotiabank accounts, pay bills, send and receive e-Transfers, send Western Union money transfers, and find nearby branch or ATM on WAP enabled phones. Text Mobile Banking allows customers check account balances, view the last 5 transactions, and view credit card information (available credit, minimum payment, and due date) via SMS.
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Mobile World
GLOBAL SNAPSHOTS
CITI MOBILE CITIBANK Citibanks portfolio of Mobile & Tablet Banking solutions is comprised of Citi Text (SMS), Citi Mobile for Smartphones (Mobile Browser), Citi Mobile Apps (Custom Applications), and Citi Tablet Apps (Custom Applications); essentially, a triple play. Citis solutions support iPod, iPhone, iPad, Android devices, and Kindle Fire. Mobile banking solutions include from making account balance inquiries, transaction history, pay bills and track payments, deposit checks (RDC), see recent activities, transfer money between accounts, perform p2p payments, and track rewards programs.
CHASE MOBILE (JP MORGAN CHASE) Chase offers the complete combo: text, browser, and app based mobile banking solutions. The app offers the most functionalities; as it enables customers to check account balances and transaction history, pay bills and credit cards, transfer money between accounts, make p2p payments, and deposit checks remotely (RDC). Chase supports the iOS, Android, Kindle Fire, and Blackberry mobile operating systems. Furthermore, the app offers a comprehensive contact directory (with autodial) and search for the nearest branch or ATM.
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Mobile World
GLOBAL SNAPSHOTS
BANK OF AMERICA As early as 2007, Bank of America (BofA) launched its first mobile banking services. Today, there are more than 9.5 million customers actively using mobile banking solutions; which includes a mobile website, text banking, and native apps. Currently, BofA offers native apps for the iPhone, iPod Touch, iPad, Blackberry, Android, Windows Smartphones, and (most recently) Kindle Fire operating systems (OS). Regardless of the OS, the BofAs mobile banking apps offers the same functionality, including account overviews, bill pay, and fund transfers. According to BofAs mobile channel executive, customers can expect additional features for its mobile apps in the coming year.
ICBC (CHINA) ICBC is the winner of two AppStore awards in China: Best iPhone Financial App of the Year and Best iPad Financial App of the Year. Aside from the standard features, such as account management, money transfer, and mobile phone recharge; it also offers value-added features, including foreign exchange, securities trading, investment funds services (it even makes recommendations!!!), and allows users to buy and sell precious metals.
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FINO (INDIA) FINO is an Financial Inclusion Solutions and Services company; which is promoted by public and private sector banks (including the ICICI Bank), insurance companies, and the International Finance Corporation. They are headquartered in Mumbai, India. FINO has two main lines of business: Technology products and business correspondence services. As a technology provider, the company offers solutions which enable financial inclusion, micro-finance, and remittances. As a business correspondence services company, FINO offers its agent network to perform the last mile services for financial services companies. FINO employs over 2,500 employess and has a solid agent network (which is 20,000 strong), spread across 239 offices. The agents are equipped with GPRS enabled handheld biometric authentication which reads the customers smart card information. By offering doorstep banking and other financial services with cost-effective transactional costs, FINO is currently serving 35 million customers across 24 states. The company purports that their customer acquisition rate is around 50,000 per day.
Mobile World
GLOBAL SNAPSHOTS
Transformative bank-led models
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MCBANK (PAKISTAN) MCB Mobile was launched in 2009, which was a joint collaboration between MCB Bank Limited and Fundamo. MCB Mobile was a pioneer by delivering a cost-effective banking solution outside of their branch footprint area. MCB Mobile offers banking services to the underbanked and unbanked consumers who generally have mobile phones. Customers of MCB Mobile can view account balances, transaction history, pay bills, make payments, transfer funds between accounts, top off mobile phones.
Mobile World
GLOBAL SNAPSHOTS
Transformative bank-led models
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M-PESA (KENIA-TANZANIA) Developed by Vodafone and deployed by their affiliate, Safaricom, in Kenya; m-Pesa has been a Cinderella success story for transformative mobile banking led by an MNO, surpassing the 14 million customers since its launch in 2007. Not bad for 5 years of work. M-Pesa offers a wide range of financial services, including viewing and managing account(s), paying bills, making payments, buying airtime, making deposits and withdraws (branchless banking), and transferring funds. Additionally, M-Pesa also allows customer to buy tickets (m-ticketing) and pay school fees. All of the features of M-Pesa is made available via a featured phone.
Mobile World
GLOBAL SNAPSHOTS
Transformative MNO-led models
Swipe to see mo
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G-CASH (PHILIPPINES) An internationally acclaimed micro payment service, G-Cash offers banking services via SMS. G-Cash customers can transfer money, pay bills, buy airtime, and make payments via a network of government agencies, utility companies, cooperatives, insurance companies, remittance companies, universities, and commercial establishments. Also, G-Cash customers can access the service via basic mobile phones or the internet.
Mobile World
GLOBAL SNAPSHOTS
Transformative MNO-led models
Swipe to see mo
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YELLOW BANK Founded in 2004, the Miami-based Company is the recipient of the first IFC (World Bank) equity investment in a mobile financial network company in the Americas. With 3.6 million unique users in nine countries, processing over 18 million monthly transactions, the firm has been selected by more than 40 banks and strategic partners in the region. Yellow Peppers most promising product is its mobile wallet, an innovative bank account that the user manages via simple text messages from their mobile phone, never having to set foot on a bank branch. According to Fast Company the company in Haiti had over 110,000 wallets with Digicel, a mobile phone carrier that owns 32 networks from the Caribbean to the Pacific with over 11 million customers and Scotia Bank Haiti. With the fast growth of the service mobile wallets could number in the millions as the service is expanded to other parts of Latin America providing much needed financial inclusion to the bottom of the pyramid.
Mobile World
GLOBAL SNAPSHOTS
Transformative 3rd party-led models
Swipe to see mo
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WIZZIT (SOUTH AFRICA) Wizzit offers a secure and efficient payment mechanism to the unbanked and underbanked consumers in South Africa. The company offers mobile transactional services via a featured phone (and now online). The services allows customers to make p2p transfers, buy airtime, pay bills, make payments, and offers a Maestro debit card. Wizzit was conceived in 2002 and launched in 2005. Along the way, the company had to discover customer needs, while making it affordable, and secure a bank partner, a pretty impressive feat when considering that it is one of new to the world innovation (no instructions were included).
Mobile World
GLOBAL SNAPSHOTS
Transformative 3rd party-led models
Swipe to see mo
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Mobile Banking Technology Platforms Providers
Generally, banks have limited choice when deploying mobile banking technologies: DIY (Do It Yourself), Off the Shelf Products, or a mix of the two. Below, leading providers of OTS
FUNDAMO South Africa-based Fundamo, acquired by Visa in June 2011, is a leading platform provider of mobile financial services for mobile network operators and financial institutions in developing economies. Fundamo has more than 50 active mobile financial services deployments across more than 40 countries, including 27 countries in Africa, Asia and the Middle East. Fundamos deployments currently have a base of more than five million registered subscribers and the potential to reach more than 180 million consumers with mobile financial services. The Fundamo Enterprise Edition mobile services platform includes Mobile Banking (which delivers Additive Banking and is typically for financial institutions wishing to provide mobile banking as an additional electronic channel to access existing accounts) and Mobile Wallet (which delivers Transformational Banking, typically for mobile network operators and financial institutions who want to address new market segments with a differentiated offering).
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FINACLE (INFOSYS) Finacle solutions address the core banking, ebanking, mobile banking, Islamic banking, treasury, wealth management and CRM requirements of retail, corporate and universal banks worldwide. Finacle mobile banking solution provides banking services through SMS, GPRS/ 3G and USSDenabled handsets, leveraging a single platform. The Mobile Banking and Payments module includes account management, deposits, funds transfer, bill payment, remote deposit capture, Forex, cheque management, ATM/ Branch locator, remittances, peer-to-peer payments, business-to-business payments and contactless payments. The Mobile Financial Management module adds analysis tools, transaction tagging and product comparators. Value added services include mobile commerce, mobile ticketing, mobile top-up for prepaid card, mobile advertising, mobile remittances to charity causes, mobile wallet, stock trading services, and mobile virtual financial advisory through video chat.
MONITISE Monitise plc is a British technology company delivering mobile banking, payments and commerce solutions. As well as partnerships with most UK high street banks, Monitise provides services to over 250 financial institutions in the United States, has more than 6 million users worldwide, with live services in the UK, the US, India and Africa, and has a global partnership with Visa Inc to deliver its services to more than 1.9 billion card-holders. Monitises flagship product, Mobile Banking, enables a wide range of services including bank and credit card management, mobile top ups, transfers and payments. In addition, savings and lending products can also be managed. It allows a variety of customer-configurable alerts, delivered either via SMS or smartphone push notifications. It can also act as a secure interactive CRM channel between the bank and their customers, enabling service and sales opportunities such as card activation, lost/ stolen card management and personalized offers.
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Amongst mobile banking pundits, custom-built native apps are the holy grail, which allows banks to leverage the unique properties of each device to provide the highest level of personalized, customer experience without having to depend on 3rd party providers. BBVAs award winning mobile banking apps enables anytime, anywhere banking for our customers, making a perfect fit with our Customer Centric Bank (CCB) framework: either as part of an integrated multi-channel strategy (Additive banking: One of Many) or as part of a branchless banking strategy (Transformative: One and Only).
GLOBAL SNAPSHOTS
The BBVA experience
iPhone
Android
Windows phone 7
BlackBerry
iPad
See the screenshots in the next pages
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GLOBAL SNAPSHOTS
The BBVA experience
iPad
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GLOBAL SNAPSHOTS
The BBVA experience
iPad
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GLOBAL SNAPSHOTS
The BBVA experience
iPad
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GLOBAL SNAPSHOTS
The BBVA experience
iPad
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GLOBAL SNAPSHOTS
The BBVA experience
iPhone
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GLOBAL SNAPSHOTS
The BBVA experience
Android
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Windows phone 7
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Blackberry
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Practice makes perfect, so the saying goes; and BBVA has been rather busy perfecting its mobile banking solutions. Backed by the CCB framework, BBVA provides customized native apps for all major OS platforms for its customers in developed markets. In the US, the market for mobile banking is fiercely competitive. In order to position ourselves as market leaders, BBVA aggressively pursued a strategy that provided the highest quality native apps for mobile devices, including smartphones and tablets (iPhones, Android devices, Blackberry, Windows Phone 7, iPhone, and the Blackberry Playbook). With the apps, customers can find see account information, RDC (remote deposit capture), check accounts in real-time, make transfers, and pay bills. Please visit the Trending Issues section of this months issue of Innovation Edge to see another BBVA first: opening an account with an app!!! In Spain and Portugal, BBVA went from zero to hero in no time. Prior to February 2011, we had 0 (zero) native apps for mobile banking and, just one year later, we now offer native mobile banking apps for 4 different OS platforms: iPhone, iPad, Android, and Blackberry (with Microsoft Windows Mobile in the works). Yes, a hero.
RECENT & FUTURE DEVELOPMENTS Along the way, BBVA picked many kudos from users and we were awarded the App of the Week honor for the week of November 3, 2011 in Apples App Store (Spain & Portugal). Also, BBVA published a geo-location app for the iPhone and Android OS, which helps customers to find the nearest branch or an ATM. In Chile, Contigo BBVA app supports local commerce deals: retail partners can use the app to promote specific campaigns, redeem coupons, and offer proximity based advertising. For the future, the BBVA Mobility Office is developing other mobile banking functionalities, such as the integration of fidelity cards, e-coupons, and NFC payments, allowing BBVA to offer new value propositions through the mobile channel. While most of our headlines related to mobile banking deal with the Additive: One of Many concepts, BBVA has also made contributions to Transformative: One and Only innovations. In Mexico, BBVA Bancomer introduced Cuenta Mvil Express which utilizes the mobile phone number as the bank account number. Only proper identification is needed
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to open an account. Due to its simplicity and practicalness, the launch of the product has been a resounding success (especially with the local media). In Peru, BBVA Continental launched native apps for the iPad and Blackberry in April 2011. Subsequently, a new ap-
BBVA has also published a geolocation app for the iPhone and Android platforms that allows customers to find the nearest branch or ATM.
plication was released to the market which further extends mobile banking capabilities. The launch of the pioneer service in Peru was received very well. There are other initiatives in Chile (Contigo Chile) and Argentina (BBVA Banco Francs) where the group introduced a location based offers where customers can find the best local deals.
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Innovation
A
s we seen, Mobile Banking is fast becoming key component in a highly complex and competitive retail banking environment: not only can it increase banks efficiency, it can also help banks create new value. As such, Mobile Banking should be an integral part of every banks retail banking business model. To sum things up, well start by referring to the recent EFMA/McKinsey report, The current state and future of mobile banking in Europe (2011): Mobile has the potential to revolutionize the customer experience in personal financial services, with non-bank organizations often leading the way. Banks expect mobile banking to transform the retail banking landscape, but admit that they are not acting or investing accordingly.
Forecasting for
BBVA is ready for the Mobile Banking (R)evolution and we are leading the way. The Customer Centric Bank (CCB) offers the overall framework of the business model in which Mobile Banking makes a perfect fit. For retail customers, our award winning Mobile Banking solutions offer BBVA customers anytime, anywhere banking; paves the way for personalized location based offers; and opens up possibilities for branchless banking, especially for customers in out of footprint markets.
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The unique characteristics of the mobile device present three distinct areas for proposition and marketing innovation: ultra convenient banking, digital commerce and the opening up of new markets and segments. The opportunities will create significant scope for individual players to win (and lose) market share but the overall impact on banking value creation will be at best neutral. Banks must shape, lead, or follow the market, they will only succeed if they make a conscious choice on which strategy to pursue and take concrete action accordingly.
source: EFMA and McKinsey & Co. | The State and Future of Mobile Banking in Europe. October 2011. p.1.
So few opportunities and many challenges lie ahead for banks as they grapple with Mobile Banking. Given the highly competitive dynamics of the market, no one can blame the banks as they play the wait-and-see game and seek to position themselves to be in the leader group without assuming too much risk. However, while the banks are busy neutralizing incremental advantages amongst themselves, new competitors are entering the market with new business models that create and capture value with Mobile Banking. What do you do when competitors compete with business models? Mobile Banking is transforming the retail banking landscape, all at once.
Transformative Mobile Banking

Transformative mobile banking, in general, is offered to the unbanked population in rural areas of developing countries. As such, it is related to the financial inclusion of the bottom of the pyramid segment of the worlds population. Thus far, very few initiatives have successful (in Africa and Asia-Pacific). However, the successes are credited to very specific attributes and may not be translated well into other areas, such as South America. However, there are some key considerations that might be worth considering: Banks and Mobile Network Operators must work together as partners. Distribution networks must include external agents, who provide footprint and significantly reduce costs of operating and maintaining distribution. Educating and offering support to agents are critical success factors. Country specific regulatory concerns must be adequately addressed. In some regions of the world, the rules of the game are not always clear. 3rd party technology providers may greatly speed up the rollout of mobile banking solutions.
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In depth
A 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

Bankable Frontier Associates , World Bank - Consultative Group to Assist the Poor (CGAP) | Branchless and Mobile Banking Solutions for the Poor: A Survey. January 2011. Centro de Innovacin BBVA | Innovation Edge 1. January 2012. EFMA and McKinsey & Co. | The State and Future of Mobile Banking in Europe. October 2011. Federal Reserve Board of Philadelphia (Julia Cheney) | An Examination of Mobile Banking and Mobile Payments: Building Adoption as Experience Goods? IDC | Business Strategy: 2011 Consumer Preferences Survey Results - Focus on Mobile Banking. January 2012. Ignacio Mas and Colin Mayer (Said Business School) | Savings as Forward Payments: Innovations on Mobile Money Platforms. September 2011. Javelin Research | 2012 Mobile Banking Vendor Scorecard: Mobile Banking Has Moved from a Nice-to-Have to a Must Have Channel. 2011. Juniper Research | White Paper: Banking on the Mobile. January 2009. KPMG | Monetizing mobile: How banks are preserving their place in the payment value chain. July 2011. Market Research | Mobile Banking: State of the Market and Future Opportunities. November 2011. Online Banking Report | Online & Mobile Banking Forecast: 2012 to 2021. January 2012. Vision Mobile | Mobile Platforms: The Clash of the Ecosystems. November 2011. Yankee Group | Telefnica Smells the Mobile Banking Coffee. February 2011.
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In depth
On the web
Aite Group | Fraud The Latest Threats. February 2012. Bank Technology News | Banks Seek Sticky Relationships from Mobile Apps. February 2012. BankInfo Security | Mobile Banking: Consumer Education Needed. November 2011. BankInfo Security | Mobile Banking: The New Risks. September 2011. Communities Dominate Brands | Celebrating 30 Years of Mobile Phones, Thank You NTT of Japan. 2009. GigaOM | The slow rise of the SoMoClo OS. February 2012. ITNews | Gartner casts shadows on mobile banking. July 2011. ITU (International Telecommunications Union) | Key Global Telecom Indicators for the World Telecommunication Service Sector. November 2011. TNS | Mobile Life: Global Telecoms Insight.
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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 issues
Technology trends
In the following section, we outline the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
also in this issue
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Trending issues
In 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 summaries were prepared by the editorial board. Further information is made available for each given topic.
Core banking platforms
Here you will find articles related to basic IT infrastructure which supports main banking processes, including technologies such as SOA, WOA, digital platforms, etc.
App ecosystem
There are 5 main components in the current Apps Ecosystem: connectivity, devices, OS platforms, app platforms, and apps; along with related products and services providers (MEAPs, Mobility as a Service providers etc.).
New formats
Based 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 interface; real-time intelligent processes; highly personalized solutions; and is open to social networks and the web. Examples of these new formats are provided here.
New Gizmo era

A combination of Smart Sensors and Robotics will give rise to the New Gizmo Era, ushering in a new age of efficiency and productivity. It is believed that by 2013 there will be a trillion interconnected devices with embedded Smart Sensors, and some with Robotics capabilities.
Mobile banking
Relevant news about mobile banking platforms (which enable customers to access financial services, such as transfers, bill payments, balance information and investment options) can be found here.
New banking concepts

Banks around the world continuously explore new approaches to strengthen customer relationships, both in the virtual and the physical worlds; including Virtual assistants, natural language search tools, new marketing tools, different segmentation (children, gen Y,) etc. This section will cover news along these lines.
Enterprise 2.0
Enterprise 2.0 is the integration of Web 2.0 technologies into business processes. Information regarding implementations of Enterprise 2.0, which generally involves a mix of social software and related collaborative technologies, can be found here.
Join & enjoy

Entertainment is an integral part of our lives. Not only do we want to live longer, but we also want a better, fuller life. In short, we want to enjoy our lives. Access to entertainment will become instantaneous instantaneous, both digitally and globally. Gamification could be one way to foster health education on prevention.Infotainment and social networks are already an established trend, and news abound.
Mobile payments
The process of using a hand-held device to pay for a product or service, either remotely or at a point-of-sale. Up to date information is provided.
Smart cities + urban mobility

Cities are continually growing and urban life is changing. In a Smart City, we find smart infrastructures with plenty of sensors, allowing agents (citizens, governments, and companies) to make better decisions based on real time information. The agents not only use RTI, but also contribute towards it. As a key agent, we will be exploring opportunities. An example of such change is the urban transportation system. The current system is unsustainable, and we foresee a future where we will be able to design a transport that fits the needs of the city and its citizens. This is achieved through changing vehicles physically and using information, integrated as an additional piece of the city transport.
Social Media
A group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 that allows the creation and exchange of user-generated content. Enabled by ubiquitously accessible and scalable communication techniques, social media is substantially changing communication between organizations and communities, as well as individuals.
Digital Marketing
Digital Marketing of brands use all forms of digital advertising channels to reach consumers, including social media, via a wide range of delivery mechanisms such as mobile phones, sms/ mms, display / banner ads, etc.
Health
Healthcare systems around the world will certainly go through a profound transformation. Financial pressures, along demographics and citizen expectations, will demand massive adoption of new technologies to maximize efficiencies and create new value. Read about it here,
Crowd finance
A process where small amounts are money raised for a definite purpose, Crowd finance sources funds collectively from individuals. In other words, the money comes from a wide range of individuals and not from a single entity. Read more about it here.
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Trending issues
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
An iBank App Store?!?!

The concept of the app store will revolutionize core banking solutions, according to Don Free, a Research Director at Gartner. Using an app store approach, you can break down the core banking system into smaller parts and drive significant innovations for the business. The app store approach allows you to access components without developing them. You can now change business processes without involving IT. With the growing popularity of handheld computing, this approach may help banks find new revenue streams without straying too much away from core competencies.
source: Don Free (Research Director) Gartner | February 2012
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Trending issues
Branch Today, Gone Tomorrow: The Case for the Death of Branch Banking
King sure knows how to share his ideas clearly and boldly: all bank branches will die (soon), Stop arguing that the branch is still critical to the average customer. Realize it is just one channel for them to choose from, and increasingly of minor importance in their day-to-day banking relationship. According to King, by 2015 the primary channel for day to day retail banking will be (in order of usage): Mobile, Web, ATM, Call Centers and Branches
source: Brett King, Branch Today, Gone Tomorrow | January 2012
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Trending issues
Solving the Gen Y puzzle: BBVA Compass First to Allow Mobile Enrollment from an iPhone
Younger customers are going straight to mobile and they are bypassing online banking altogether. In a groundbreaking move, BBVA Compasss new app allows customers to open a mobile banking account directly from their iPhone; providing a truly anytime, anywhere banking experience for customers. According to Alejandro Carriles, Executive VP and Director of Mobile and Online Strategies of BBVA Compass, we think were creating a groundbreaking user experience. At BBVA, mobile banking is not only an effective customer touchpoint but also a complete channel; accompanying clients during the each channel phase: awareness, evaluation, purchase, delivery, and after sales.
Source: Bank Technology News American Banker | March 5, 2012
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Trending issues
Be Social or Die!
The lifespan of organizations today, according Dachis (a social business), is about 15 years. Social business drives adaptation by solving real business problems; by offering a more effective way of doing talent management, supply chain collaboration, business agility, risk management, and more successful products to driving revenue. During a recent summit, a social business expert shared his success factors for social: Listen, analyze, and engage, continuously Integrate social into the flow of work Plan for change and the unexpected Turn on the network effect Remove barriers to participate Enable everyone to participate.
Source: Forbes | March 8, 2012
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Trending issues
Cha-Ching!!! There a whole lot of money in NFC!!!

Can you say $75 billion US Dollars? Thats the size of the NFC market for mobile payments in 2015, according to Juniper Research. Its no wonder big players are jumping into the pool for a chance to come out as a serious player in this seemingly lucrative market. Notable NFC projects include Google Wallet, Isis (a carrier-led joint venture between AT&T, T-Mobile and Verizon), and Visa PayWave..
Source: TechCrunch | March 8, 2012
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Trending issues
Move over CNN and make room for YouTube and Vimeo
For adults under the age of 30, social media is clearly the news source of choice, displacing traditional news media outlets. According to Pew Research, there is striking evidence that young adults and their elders at times have different news agendas and learn about news in different ways. The Internet was more than three times more important as a news-learning platform for young adults than traditional media such as television, newspapers, and radio. Since the release of Kony 2012 video, there have been more than 110 million views on sites such as YouTube and Vimeo. Also, social platforms, especially Twitter and Facebook, played critical roles in diffusing information about the Kony 2012 video.
Source: MSNBC | March 2012
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Trending issues
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
When youre ready to go social, Where do you go?

A recent survey indicates that social media marketing is expected to dominate this year: 81% of CMOs plan to associate revenues to investments in social media. But the question remains, where do you go? To help answer this question, CMO.com turned to 97th Floor, a SEO and social media firm. Heres the top 10: Twitter Facebook flickr LinkedIn YouTube Digg StumbleUpon Yahoo Reddit Del.icio.us
Source: CMO | February 10, 2012
A video sharing website where users can share and upload new videos
THE SOCIAL LANDSCAPE

GOOD! OK. BAD!
TRAFFIC TO YOUR SITE
Potential can be large, but promotion is an art form -promote your brand too heavily and turn o followers, yet don't promote enough and receive little attention.
THE CMOS GUIDE TO:
2010 IS THE YEAR CMOS WILL HEAVILY INVEST IN SOCIAL MEDIA. HERES A GUID HELP YOU UNDERSTAND HOW BEST TO LEVERAGE MAJOR SOCIAL MEDIA S
WEBSITE
A microblogging site that enables users to send tweets, or messages of 140 characters or less
CUSTOMER COMMUNICATION
Use keyword search monitoring through a program such as Hootsuite, TwitJump or Radian 6 to track what people are saying about you and your competitors.
BRAND EXPOSURE
O ers unique opportunities for Web site integration and to engage with customers in a viral way, helping your company stand out from the masses. Facebook brand pages are great for brand exposure. Jump-start your brand exposure through the ad platform, or hire a Facebook consultant to help you grow your brand presence.
SEO
Value to your site limited, but twee high in search res for ranking your and breaking new shortened URLs a benet.
A social networking site where users can add friend, send messsages and build their own prole
Great for engaging people who like your brand, want to share their opinions, and participate in giveaways and contests.
Trac is decent and on the rise thanks to share buttons and counters, but don't expect massive numbers of unique visitors to go to your site.
Little to no valu blogs picking up your posted link the time expend
An image and video hosting website where community members can share and comment on media
Unnecessary to spend too much time on this, though properly tagged photosets of company events can help customers put a face on the team behind your brand.
Participation in industry-related groups might get your photos, and thus your brand, viewed by people with similar interests, but numbers will be small.
Even if you get tens of thousands of visits to a photo hyperlinked with your URL, click-through rates are among the lowest around.
Heavily indexed engines, passing ranks. Also helps higher in Google building inbound
A social networking site for business professionals
Not the primary focus, but customer engagement opportunities are possible by answering industry-related questions, establishing yourself as an expert in the eld. Whether you seek to entertain, inform, or both, video is a powerful channel for quickly engaging your customers, responding to complaints, and demonstrating your socialmedia savvy. Not the site's primary strength, though occasionally an objective third-party writeup as a PR e ort, perhaps to counteract bad press or customer sentiment, can be promoted. Paid StumbleUpon trac can be a very targeted method of communicating, but whether you're reaching your existing customers is purely random and costly to determine.
E ective for personal branding and demonstrating your organization's professional prowess. Encouraging employees to maintain complete proles to strengthen your team's reputation is advisable.
Unlikely to drive any signicant trac to your site, though you never know who those few visits might be from -- perhaps a potential client or customer.
Very high page r guaranteed on t of search result for your compan individual emplo but that's about
One of the most powerful branding tools on the Web when you build your channel, promote via high-trac sites, and brand your videos.
Trac goes to the videos. If the goal is to get trac back to your site, then add a hyperlink in the video description, but don't expect trac to correlate closely with video views.
The grandfather of trac spikes, so become active in the community or nd someone who is. If your site is corporate, then consider launching an industry blog on a noncommercial Web domain to establish yourself as a thought leader.
Very good for bu back to your site rank high. Also a way for your bran exposure.
A social news site where users can discover and share content
Opportunities are huge, especially for promoting objective press/blog coverage of your brand. Make sure content doesn't read like an ad, or your site might be banned for being overly commercial. A paid campaign can be good for brand awareness, especially following e orts to get free, organic trac to your home page. Targeting is very accurate, but keep in mind you're paying 5 cents per visit ($50 CPM).
Very good becaus story doesn't bec then your page w indexed quickly. I does become pop likely the best sit getting linked to
A social news community where members discover and share webpages
Enables a diverse range of people to discover your content and share links via the su.pr link shortener on Twitter. Tagging helps, but you don't want the same people repeatedly giving you a thumbs-up.
Very good if you it to the top pag StumbledUpon's base enables ma nd and link to For vanity name prole pages ran
A social news site where community members can vote on stories
Editor-driven and moderated, so this shouldn't be your primary focus.
Noncommercial sites are heavily favored by moderators, so business sites should not waste time in this uphill battle.
Get in the moderators' good graces, and you have a chance to hit absolutely massive numbers -- but it's a long shot.
If you make the Yahoo, then you of backlinks, but unlikely unless y established bran
A social news community where users post links to the sites home page
The community is ckle, and anything perceived as spam will be destroyed. However, look deep into the categorized "subreddits" to unearth small niche communities, and you could get valuable feedback.
Unless you're a bacon company, don't try to build your brand here. You'll end up banned from the site without even realizing what happened.
If Reddit loves you, then trac is o en right up there with Digg and StumbleUpon. Be careful: Push too hard for votes from your friends and risk being banned, but don't push at all and you'll wind up with nothing.
Make the front many reputable up your story, ge able backlinks an trust to your site
A social bookmarking site used for sharing and storing bookmarked pages
Site is intended for people to bookmark content. You can see what people tag with your brand name, but communication with them is nonexistent.
Not enough ongoing brand recognition to make it worth your while unless you want to be known for providing reference content for later retrieval.
Not as big as it used to be, but informative, massive reference pieces bookmarked for later use can net you a few thousand recurring monthly visitors.
Pretty much ever the site helps: Wh is bookmarked, it back to your site. on the front page big category tag p trust, which will p your URL.
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Trending issues
Crowd sourcing goes plastic!?!?

MasterCard and Barclays US join forces to create Barclaycard Ring, the worlds first crowd-sourced credit card. The duo claims that it marks the herald of a new era in e-commerce and finance: card customers can negociate interest rates, rewards, and fees. The card offers an 8% interest rate with no annual or balance transfer fees. Additionally, the crowd will have visibility into the cards financial picture, influence management decisions, and have an opportunity to share revenues generated by the card. The Barclaycard Ring will be available to consumers this spring.
Source: Silicon Republic. December 30, 2011
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Trending issues
Facebook as an app ecosystem platform provider?

Facebook, during Mobile World Congress, touted their Pay Dialog mobile SDK; which allows mobile operators to work with app developers to integrate operator billing into their apps. Facebook already has partnerships with several telecommunications giants, such as AT&T, Deutsche Telecom, Orange, Telefonica, T-Mobile USA, Verizon, Vodafone, KDDI, SoftBank Mobile, etc. All this is part of Facebooks plan to push forward its Open Graph, drawing users away from locked-down platforms like iOS and giving them the opportunity to download apps that run freely on the Web and operate on any platform.
source: The Next Web- Social Media | February 27, 2012
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Trending issues
3 million iPads sold in 3 days

The first iPad took 28 days to sell 1 million units; the 2nd iPad sold 1 million during the first weekend; and the new iPad is off to a strong start: 3 million iPads sold in 3 days. At the flagship store in 5th Avenue (NY), 13,000 units were sold in the first 12 hours! Thats about 1,100 iPads per hour or 18 units per minute. That translates into revenues of $10,700 per minute at that location..
Source: Apple | March 19, 2012 and Motley Fool | March 21, 2012
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Trending issues
ATM is still going strong (& will get stronger)

ATMs are poised for future growth as there will be more transaction per person, more cash in circulation, and less branches (more ATMs); which would result in more total ATM revenue and profit for the banks. Specifically, according the ATM Future Tretnds Report 2012, by 2015, ATM transactions are expected to grow 66%.
Source: ATM Marketplace | March 1, 2012
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Trending issues
21st century culture: Games as Art

Theyve come a long way from the early days of video games (in the late 1970s), where a rudimentary two-dimensional ball that (were) batted back and forth provided hours of fun for timewasting teens. On March 16, 2012, the Smithsonian American Art Museum inaugurated the The Art of Video Games, the first major exhibition dedicated to this new art form. According to the museums curator, Chris Melissinos (formerly the Chief Gaming Officer at Sun Microsystems) I believe its societys duty and responsibility to protect and nurture this medium because it will be the next great medium for expression, thought, poetry and art forgenerations to come. Thats incredibly exciting, and this is just one small step toward that goal.
Source: BBC | March 16, 2012
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Trending issues
The End of Parking Woes?

Its the reality of urban life: 33% of the cars on the road are circling around city blocks, much like vultures, hoping to find parking space. Aside from the stress, the situation also adds to city pollution, traffic congestion, and accidents. Future promise: a smart city with networked sensors installed in a citys infrastructure helping drivers find the parking space, faster and smarter. A pilot project is underway in San Francisco, California which has magnetic sensors installed in street parking spaces, garages, and smart parking meters; the parking information is made available to the public via an app on smartphones.
Source: MIT Technology Review | January 25, 2012
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Trending issues
Socio-Economic Impact of mHealth

Telenor commissioned BCG to analyze the possible socio-economic impact of mHealth. Key findings of the study include: Everyone (almost everyone) will have access to a mobile infrastructure: 7.4 billion mobile subscriptions projected by 2015. The technology and bandwidth is sufficient, both simple and smart phones There are more than 500 mobile health projects being executed globally Elderly care costs can be reduced by 25% with mobile health projects Maternal and perinatal mortality can be reduced by 30% Twice as many rural patients can be reached by a doctor Tuberculosis treatment compliance can be improved by 30-70% By 2015, 30% of smartphone users are likely to use wellness apps Data collection and related costs can be reduced by 24% Among MDs, smartphone is the most popular technology since the stethoscope
Source: BCG/Telenor | February 28, 2012
page 62
Technology trends
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Someone Is Replaying Inside: SIRI

The dream of any artificial intelligence-based application is to understand and predict accurately the needs and preferences of the user, transforming intent into actions to perform tasks. Researchers and companies working on personalization technologies have been trying to address this issue for more than ten years. In order to do that, the system first would have to obtain information about the user, get behavior patterns and learn what will be the next best action that the user would need or would want to do. Sounds good, but we are still quite far from it.
o far we have Siri, the digital personal assistant that Apple has included in its
iPhone 4S launched on fall 2011. Siri performs actions under user requests, interacting by using voice recognition and natural language. It lets the user to ask questions, obtain information and perform actions using the native functionalities of the phone, that is send mails, make calls, check, schedule and change appointments in the agenda, etc.
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A LITTLE HISTORY... Siri appeared as a simple iPhone app in 2010. At that time there were some other similar but less advanced apps, like MyBantu or Zokem, also supposed to be personal assistants and recommendation services, but they finally came to nothing. However SIRI was a big thing. It is based on the DARPA funded SRI research project CALO (Cognitive Assistant that Learns and Organizes), the largest Artificial Intelligence project in U.S. history. With $150 million of DARPA investment, the CALO Project was focused on helping individuals manage an extensive amount of task related information (specifically emails) in an office assistant and generate actionable tasks for situations such as forming ad-hoc teams in military scenarios. When it was an app, it had also more than 30 different partners whose APIs can plug into when answering a request. These include services like OpenTable, MovieTickets.com, Eventful, StubHub, Taxi Magic, Rotten Tomatos, Bing, Google Maps and Yelp. Now, as part of the operational system of the iPhone 4S, it has acces only to Yelp, Wolfram Alfa, and Google. However, it is integrated with email, calls, sms, calendar, it learns from user actions: it may know for example who is important for you without need to tell, based on your actions with the phone. Siri gets better the more you use it, learning from the user,
their preferences and their frequent actions, adapting its response to them. BUT WHY IS (OR COULD BE) SIRI SO IMPORTANT? Because it could be the top of the iceberg of the future of the devices and its applications based on AI. The phone becomes sensor of the users and their environment: it utilizes information available on the users calendar, email system, address book, social network, enhances
page 64
it with geo-location based activity tracking and information declared explicitly by the user, and generates context dependent user profiles. At some point, Siri will have access to databases and will be able to search and obtain external information of third parties to enrich the context, and delegate to other apps to deliver services and perform tasks. IN THESE ARE APPLES PLANS FOR SIRI, WHAT IS THE CHALLENGE? As always, the challenge is the combination of big-data gathering and its analysis to predict the activity the user to deliver context and relevant information, the improvement of the semantic intent understanding, and the increase of the capability of apps and devices to talk to each other and talk back to the user. Now Apple has given the first step to deliver it to consumers, whos next, Microsoft? Google?
page 65
Work Smarter, (Not Harder) with Business Intelligence

Gartner defines Business Intelligence as, an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize business decisions and performance.(1) Or simply, it can be expressed as: Information Management + Analytics = Business Intelligence. With Social, Mobile, Cloud, and Big Data coming, companies should really think about BI.
The latest information related to Business Intelligence keeps this macro trend as a priority
Your business
for BBVA for the medium term time frame. BI initiatives can reduce cost, increase the quality and availability of information and analysis, and help user make better decisions.
Business Intelligence Your management Information technology
Corporate use of BI includes: financial analysis, business activity monitoring, forecasting, sales tracking, customer relationship management, operational process optimization, competitive analysis, corporate governance, product marketing, risk management, product development, and fraud detection. The Data Warehousing Institute says that using
page 66
mobile BI improves customer sales, service and support in a 65% and increase customer self-service benefits in 45%. Despite the challenging environment, BI is expected to continue to grow during 2012. International Data Corporation (IDC) states that the worldwide business intelligence tools market generated more than $4 billion in revenues in the second half of 2010. Driven my market demands, the BI platform mar-
The proliferation of tablets and mobile devices will lead to the development of mobile BI.
kets compound annual growth rate (CAGR) through 2015 is expected to be 8.1%, according to Gartner analyst James Richardson. The future direction of BI is heading towards social, mobile, and cloud. For example, the proliferation of tablets and mobile devices will lead to the development of mobile BI. According to the market study of, seniors managers using Dresner Advisory Services mobile BI exceed 82%, and middle managers 55%.
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BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.
CONTRIBUTORS TO THIS ISSUE
Reyes Bolumar Fernando Esteve Antonio Garca Eugenio Garca Rafael Hernndez Miguel Angel Iesta Manuel Jimenez Carmen Lpez Luz Martin Samuel Martn Manolo Moure Marcos Pastor Gerardo Ponte Jay Reinemann Alicia Snchez Marcelo Soria Maria Tena Luis Uguina Jose Manuel Villa Gustavo Vinacua Sang Gu Phil Yim
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Innovation Edge. Mobile Banking (English)

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APRIL 2012

Innovation Technology trends Edge April 2012 | MOBILE BANKING

Anytime, Anywhere World

Innovation Edge April 2012 | MOBILE BANKING

Mobile penetration timeline

mobile technologies. (10 tour)

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Mobile Network Operators (MNOs), such as Telefonica, ATT, Verizon, etc

Apple, Samsung, HTC, Nokia, LG, Sony, Nintendo, etc

Android, iOS, Blackberry, Windows phone, etc

Apples, Googles Android, RIMs App World, Nokias, etc

Innovation Edge April 2012 | MOBILE BANKING

echnically speaking, Mobile Banking is composed of three mobile technologies:

Innovation Edge April 2012 | MOBILE BANKING

Mobile banking technologies

Innovation Edge April 2012 | MOBILE BANKING

for our customers

Innovation Edge April 2012 | MOBILE BANKING

Strategy defines Opportunities

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Innovation Edge April 2012 | MOBILE BANKING

Call Centre $4.00

Additive Mobile Banking

TRANSACTION COSTS BY BANKING CHANNEL

IVR $1.25 ATM $0,85

source: Tower group. Fiserv. Mcom 2009

Innovation Edge April 2012 | MOBILE BANKING

Transformative Mobile Banking Business Models

3RD PARTY-LED MODEL

Innovation Edge April 2012 | MOBILE BANKING

FINO Bank (India)

MCB Bank (Pakistan)

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Yellow Pepper (LatAm & Caribbean)

Wizzit (South Africa)

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Recurring bill payments

Bank location services

Adding payees through a mobile application

Personal financial management

Location based merchant offers or coupons

NFC or proximity payments

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Customer related concerns is it safe?

Provider related concerns: Show me the money!!!

Innovation Edge April 2012 | MOBILE BANKING

the BBVA experience

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Innovation Edge April 2012 | MOBILE BANKING

Transformative bank-led models

Innovation Edge April 2012 | MOBILE BANKING

Transformative bank-led models

Innovation Edge April 2012 | MOBILE BANKING

Transformative MNO-led models

Innovation Edge April 2012 | MOBILE BANKING

Transformative MNO-led models

Innovation Edge April 2012 | MOBILE BANKING