bbva innovation edge. simple bank (english)

Innovation Edge January 2012 | SIMPLE BANK

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1JANUARY 2012

also in this issue Trending issues

Technology trends

Winning the customer´s trust

Customer centric, the new banking

Top experiences

New areas of growth

simplebank

The way the world calls our customer centric bank



newbanking is...

the secret of

The world has, is, and will probably continue to struggle

through a prolonged period of unparalleled and discontinuous

change. In order to address the shift, businesses and institutions

have been exploring new business/operating models. Some

industries are moving away from traditional “product-focused”

models and beginning to embrace “customer-centric” models

Customer-centric” business models blur the line between traditional

notions of value propositions, channels, and customer relationships. In

the new model, it seems that the Channels are seamlessly integrated and

offer an assortment of “touch points”. The customers, when choosing to

purchase and receive products, freely decide what kind of relationship

they want to maintain at any given moment, for any given reason.

simple



customer´sWinning the

trustShift happens and, in the business world, organizations are looking for new business model innovations to minimize risks and to maximize opportunities. The idea is clear: from pushing products to cultivating customers relationships.



Shift happens and it’s happening every-

where and all of the time. Some would

even say that we are in the midst of a Coper-

nican Revolution:

1989 The fall of the Berlin Wall. “We are

free to choose our future.”

1994 Netscape Navigator browser leads

the way. “We can find out anything that

we don’t know already.”

2002 Blackberry hits the streets. “We

can get stuff done anytime, anywhere.”

2003 MySpace provides our space. “We

no longer need advice from an expert; we

can tap into the wisdom of crowds.”

In the business world, the shift and its influ-

ence are evident as well. Disruptive changes

in technologies, customers, competitors, and

the environment are wreaking major havoc

in the business environment. The last three

Global CEO Studies published by IBM shed

some light on the CEOs’ perception of change.

Over the last six years, CEOs and leaders

worldwide noticed:

2006 The frecuency of change.

2008 The velocity of change.

2010 The complexity of change.

Shift in business models

In order to tackle the shift, business leaders

and organizations have been exploring new

business model innovations to minimize

risks and to maximize opportunities. As a

result of the aforementioned explorations,

there seems to a clear transition from “prod-

uct-focused” business models to “customer-

centric” business models.

Shift in Value Proposition

Traditionally, or from a “product-focused”

point of view, Customers Relationships and

Channels were used to distribute Value

Propositions (products) to a given Custom-

er Segment. In “customer-centric” business

models, it seems that the Channels are seam-

lessly integrated and offer an assortment of

“touch points”. The customers, when choos-

ing to purchase and receive products, freely

decide what kind of relationship they want

to maintain at any given moment, for any

given reason.



“We are free to choose our future” November 11, 1989 East Berliners climb onto the Berlin Wall to celebrate the effective end of the city’s partition, 31st December 1989.

The fall of the Berlin Wall1986

Confidential / Internal use only



“We can find out anything that we don’t know already” June 3, 1996 Founder of Netscape James Clark speaks June 3, 1996 in Chicago, IL. Clark, who founded the Fortune 500 computer systems company Silicon Graphics, founded Netscape in April 1994 with Marc Andreessen which currently employs more than 2000 people in 17 countries.

Netscape lead the way1994



“We can get stuff done anytime, anywhere” March 5, 2004 A traveler walks past an advertisement for Research In Motion’s BlackBerry handheld e-mail device March 5, 2004 at O’Hare International Airport in Chicago, Illinois. According to Don Morrison, chief operating officer of Research In Motion, the maker of the BlackBerry, the handheld e-mail devices are used by numerous government officials on Capitol Hill.

Blackberry hits the streets2002



“We no longer need advice from an expert; we can tap into the wisdom of crowds” January 20, 2007 MySpace.com co-creators Tom Anderson (C) with producer Efren Ramirez (L) and Director/Producer Chris Barrett (R) from the film ‘After School’ poses for a portrait during the 2007 Sundance Film Festival on January 20, 2007 in Park City, Utah.

2003MySpace provides our space



Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customer has taken the control, the banks of the future must help each customer to reach his individual goals.

customer centric,the

new banking

In the past, banks built customers’ trust by

ensuring them stability and solidity – by

promising to stay the same forever. But

the world is changing drastically. Custom-

ers want stability and flexibility; they want

banks that can guarantee their security and

respond to their individual needs. In a world

where the customer has taken control, the



banks of the future must become the guide

that helps each customer reach her individ-

ual goals. In the new world, value has less

to do with understanding money, and every-

thing to do with understanding people.

Currently in the retail-banking sector, the “shift”

is already underway. Many actors (including

traditional banks, “de novo” banks, and new

“non-bank” entrants) are exploring and/or ex-

ecuting new business models. According to

the EFMA report, Transforming Retail Banking

to Reflect the New Economic Environment,

many banks realize that the customer-centric

business models are the future of retail bank-

ing: “The vision of most banks is to provide

their customers with a seamless, fully integrat-

ed and uniform experience across all chan-

nels. (However) many banks are still years

away from achieving this.”

One of the main difficulties for the incumbent

banks is the “spaghetti” infrastructure of the

current operating model; which are separated

into silos, with redundancies in infrastructure

and services causing disparate experiences

for banking customers. A customer-centric

model would require an agile infrastructure,

which is designed with the customer as the

starting point for products, services, and in-

frastructure. This approach would provide a

consistent and unified customer experience

and, in turn, would allow the banks to capital-

ize growth opportunities, such as cross-selling

and upselling. Of course, “de novo” banks and

new entrants have a competitive advantage

in that they do not have to worry about di-

gesting the old “spaghetti”.

Given the new reality, the banks and other ac-

tors are responding to the “customer-centric”

era of banking. This report offers a closer look

at BBVA’s unique response to the shift towards

customer-centric banking; and also offers

some concrete examples of customer-centric

retail banking experience of other actors; fo-

cusing on Flagships, Mass Market Retail Bank-

ing, and Virtual Banking.



top experiences

worldwide

In this inevitable change towards ‘customer centric’ banking, BBVA is leading. Major changes to the BBVA business model have already begun, with the renewal of the back-end systems platform and continue with several front-end projects. Banks like BNP Paribas, Citibank or HSBC are also addressing the concerns of the ‘customer-centric’ era of banking, and testing ways of creating a personal rapport with customers. The vision of most banks is to provide their customers with a seamless, fully integrated and uniform experience across all channels. Here is how they do it.”



top experiences

worldwide 1

BBVA s answerAt BBVA, we have been focusing on CCB since 2008; the bank has been hard at work to ensure that the efficiency side (the back-end) of the business model would be ready to offer a customer-centric banking business model. With the goal of offering complete back-end capabilities for the Customer-Centric Bank by 2013, BBVA has mapped out its infrastructure transformation.



Each new technology delivers value, but

the benefit to our customers and to BBVA

builds exponentially as the technologies are

integrated:

Customer Oriented Service and Produc-

tivity (Commercial Scenarios; New Core

Banking; Digitalization; Operative Process-

es Redesign).

Customized Solution (New Core Banking;

Commercial and Risk Intelligence; Private

Cloud; MIS Electronic Financial Record).

Convenient and Seamless User Interface

(Commercial and Risk Intelligence; NICE;

Mobile Channel; Public Cloud; New Inter-

net).

Collaborative Relationship and Smart

Processes (MIS Electronic Financial Re-

cord; Collaborative Front End; New Inter-

net; Customer Processes Redesign; New

Branch Design)

Customer Centric Banking (New Branch

Design; “Lola” (Online Banking Virtual As-

sistant)

For the value side (the front-end) of the busi-

ness model, in putting customers at the cen-

ter of experiences that meet their distinctive

needs, BBVA is committed to three principles,

which guided in the design of the CCB model:

Accessible Distribution. “BBVA gives

me different ways to do my banking, any-

where, anytime.” Convenient, trustworthy,

and pervasive, channels give customers a

range of ways to fit banking easily into the

shape of their lives.

Transparent Solutions. “BBVA knows what

I need, and offers solutions that fit my life.”

In a web-based world dominated by social

networks, BBVA has access to enormous

amounts of customer data—and a rich op-

portunity to provide its clients with solutions

custom-made to suit their needs. Instead of

the expert, whose value comes from know-

ing more than his customers, the CCB will

be the tailor who knows his customers bet-

ter—and can recommend each of them

what fits best.

Human Understanding. “The people of

BBVA really listen to me. I can always get

the guidance I need to figure out how to

get where I want to go.” Instead of selling

to their customers, BBVA staff will work

closely with them—to help clients under-

stand what they really want from their fi-

nancial futures, and map out the steps

they’ll need to get there.



Easy bank

ABIL ATM

Flagship

Kiosk

Walking into de Easy Bank, the customer steps into a welcoming space where he can do what he needs to get done, on his own or with help from staff



Easy bank

ABIL ATM

Flagship

Kiosk

BBVA ABIL ATM revolutionary banking machine. ABIL is a revolution regarding the traditional self-service. It has a large touch screen, direct access to all common operations and has a surface that allows support personal items to operate with greater comfort.



Easy bank

ABIL ATM

Flagship

Kiosk

In BBVA Bancomer customers can access specialized advice and receive personal reassurance, at the same time flagships allow BBVA to buid out its brand, as well as offer customers day-to-day banking via the easy bank area of the branch.



Integrated to customer’s social networks

and activities

Easy bank

ABIL ATM

Flagship

Kiosk

These automated banking centers are avaliable to customers 24 hours a day offering a hassle-free way to do any of the everday transactions they need.



Based on customer insights and the three de-

sign principles, the BBVA CCB model offers:

More channels, more granular, and high-

ly functional

Consistent, simple, and collaborative uni-

versal user interface

Real time intelligent processes

Highly customized solutions based on

customer understanding

Open to social networks and the web

The BBVA Bank of the Future: Customer Centric Bank of 2020Customer needsBased on conversations and collaboration

with customers, BBVA discovered that there

are two forms of interaction with customers.

In other words, there are two kinds of finan-

cial needs: My Money (Getting Stuff Done)

and My Life (Financial Well Being).

My Money. Because everyday transac-

tions happen so frequently, they offer the

bank a chance to create an experience

for customers that weaves deeply into

the fabric of their ordinary lives. Examples

include: getting cash; making deposits,

changing address

My Life. Interestingly, customer modal-

ity changes as they move between these

different needs. The same customer who

cares most about convenience when she’s

performing everyday transactions want to

spend a great deal of time researching op-

tions when planning for the long-term. Ex-

amples include: Buying a home, planning

for retirement, saving for education

Touch pointsThrough a flexible network of virtual and

physical touch points, BBVA offers custom-

ers a wide range of connections to the ser-

vices they need, available when they need

them, in the ways that best fit their lives.

By dividing our current branch model into

a more granular set of components, we will

create an array of options that enable cus-

tomers to choose the banking experience

that feels most comfortable—thereby weav-

ing their relationship with BBVA more fully

into our customers’ daily lives.

At the same time, this modular approach en-



ables us to adapt our presence to the spe-

cific needs of different markets—for example,

to focus on low-cost, more automated chan-

nels in some regions; and a greater number

of flagship stores to serve various needs

such as offering specialized advice, reassur-

ance, brand building, marketing, client attrac-

tion and capture; as well as offer day-to-day

banking via the Easy Bank area of the bank.

Anchored to the internet, this flexible, modu-

lar array enables us to tailor our offerings to

the needs of different customers, while deliv-

ering bank services across a wide range of

regions effectively and efficiently.

Physical Touch Points

Flagship. Customers can access special-

ized advice and receive personal reas-

surance; at the same time flagships allow

BBVA to continue to build out its Brand, as

well as offer customers day-to-day bank-

ing via the Easy Bank area of the branch.

Easy Bank. Walking into the Easy Bank, the

customer steps into a welcoming space

where he can do what he needs to get done

– on his own, or with help from staff.

Kiosk. These automated banking cen-

ters are available to customers 24 hours a

day – offering a hassle-free way to do any

of the everyday transactions they need.

BBVA assistant is available to help.

Point of Sale Banking & Pocket Bank.

Customers can do basic banking trans-

actions while shopping, using the cashier

to perform ATM-like functions; and use

their phone to perform routine transac-

tions through local businesses – including

making deposits and getting cash. These

pocket banks extend BBVA reach to more

remote areas where customers cannot

easily get to a physical branch.

ATM. The new BBVA ATMs improve pri-

vacy, ease of use, and simplicity. All opera-

tions, including PIN entry, are completed

on a 19-inch touch screen that displays

only information relevant to the transac-

tion at hand. All cash, statements and re-

ceipts are handled in and out through a

single slot.

Virtual Touch Points

Computer & Web Enabled Phone (Inter-

net Banking). By computer and by phone,

BBVA’s customers get their banking done

by connecting through a simple, intuitive,

and familiar interface: The Internet Bank of

the Future (IBOF). Lola, the online banking

virtual assistant avatar, offers human-like

guidance whenever customers need it.



Remote Support. By phone, video confer-

ence, or in-person, customers can connect

with BBVA specialists for advice on topics

ranging from home buying to retirement

planning – or for help with simpler trans-

actions.

Enhaced value propositionBBVA has developed a new Value Proposition,

based on the following customer insights:

Bank the way they want to

Simple, easy and transparent relationship

Real time resolution

Complete control over their finances



Currently, the branch is the main touch point for retail banking and, as such, banks are continuing to invest in it. In general, the banks are utilizing flagships to increase the value of the brand and/or use them as testing grounds for new customer experience innovations.

top experiences

worldwide 2

in customer centricInnovative experiences

banking



Flagships

Barclays, United KingdomInspired by retail flagships, such as Apple and Nike, Barclays opened its Piccadilly Circus flagship store at the end of 2008 and announced that they would open 50 more in the near future. Accord-ing to Barclays, their flagships are more accessible, comfortable, and “simpler for customers” in an attractive and engaging manner.



Flagships

BNP Paribas, FranceLaunched in late 2010, BNP Paribas’ flagship aims to “Offer everyone a new experience, a site open to all; reinvent the relationship with clients and prospective customers, through open-ness and responsiveness, whether informing people directly or helping them to learn; turn the branch into a ‘lab’ promoting innovation and new features; and position BNP Paribas as a pio-neer of innovation.”



Flagships

Citibank, USACitibank flagships offer hi-touch, specialist advisory services, and smart banking technologies to improve the experience for clients across all channels in core markets. With the collabora-tion with Eight, Inc (responsible for Apple Stores design), the first prototype store debuted in Singapore in 2008. Over 100 branch-level processes were reengineered. There are even four patents pending.”



Flagships

CommBank, AustraliaOpened in March 2011, CommBank’s flagship aims to offer, “seamless service through state-of-the-art technology and flexible banking solutions, (their) goal is to solve any financial need (the customers) may have, all in one place.” Commenwealth Bank’s flagship offers: an online booking system, interactive touchscreens, NetBank kiosks, iPads and iPod Touches, a welcome concierge staff, experienced banking specialists, and a professional barista café.



Flagships

Deutsche Bank, GermanyDeutsche Bank’s Q110 is future orientated, simple, and different. Opened in 2005, the flagship makes bank products more tangible: “customers shop for financial products in off-the-shelf boxes, like in a supermarket.” Q110 fosters innovation culture at Deutsche Bank by providing a “playground” for the bank personnel, who are periodically rotated.



Flagships

HSBC, Hong KongOpened in 2008, HSBC’s flagship model was part of the bank’s HK$300 million commitment to revamp its retail presence. “People are shifting from the more traditional, transactional bank-ing - over the counter - to more sophisticated financial planning, . . . The next step will be find-ing out how to make use of this good experience to build customer relationship.” The efficient handling of basic transactions allows customers to “sit down” and discuss wealth manage-ment issues.



Flagships

Raiffeisen Bank, SwitzerlandDesigned by world-renowned design firm NAU, “Raiffeisen’s flagship branch on Zurich’s Kreuz-platz dissolves traditional barriers between customer and employee, creating a new type of ‘open bank’, a space of encounter. Advanced technologies make banking infrastructure largely invisible. ... This lounge feels more like a high-end retail environment than a traditional bank in-terior.” The flagship opened its doors in early 2011.



Skandia, SwedenOpened in early 2011, “everything is aimed at creating the right experience for the client.” Skandia believes that “a committed and involved client is also a more loyal customer and can be a greater act as an ambassador for us.” “In today’s world of consumer power, finan-cial turmoil and demand for transparency even banks must be open and accessible: a place that can make people’s dreams and ideas come through.” The flagship opened in early 2011.

Flagships



Mass market banking

BRE, Poland (MultiBank)Established in 2001, MultiBank is a combination of traditional banking and modern banking, offering comprehensive services in the Financial Services Centers across the country. Multi-Bank’s strategy is to “continue to attract young and sophisticated clients and accompany them as their affluence increases over time remaining their bank partner for life.” As part of the bank’s plan, the IT infrastructure design is streamlined so that BRE can offer multiple services efficiently, by having a market leading open-architecture.



CheBanca, Italy Launched in 2008, CheBanca is both a physical and virtual branch. It’s an innovative model based on client’s emotions, with the goal of providing an ideal banking experience where the primary attributes such as security, transparency, convenience, disinterest (treated as equals), etc. Everything is geared towards the client: physical space, employees, user interfaces, and multi-channel integration; all orientated to satisfy the clients’ needs or wants.

Mass market banking



GE Money Bank, Czech Republic GEMB is all about service, “providing easily accessible, simple, and beneficial products and ser-vices to retail and SME clients.” GEMB’s strategy creates a “we” relationship by accompanying clients to “do something” (task oriented) or to “ask something” (question oriented).

Mass market banking



Virtual banking

ASB Bank, New ZealandIn September 2010 ASB Bank opened its door to the world’s first virtual branch in Facebook. Custom-ers can log on to the service via Facebook and have real-time, secure conversations with ASB staff. The general manager of ASB, Anna Curzon, states, “Customers will be able to chat with our dedicated team about any issues - from home loan options, to simple savings tips, or how to access foreign cur-rency for an overseas trip. The Virtual Branch will be able to carry out the same services as our con-tact centre.” Initially, the virtual branch was launched to gauge customer interest.



Virtual banking

Simple, USA“Imagine, for a moment, a bank that doesn’t suck. A bank that doesn’t gouge you with fees. A bank that doesn’t treat you like crap. A bank that cares about design, but gets out of your way. … A bank that’s building a platform for the future of personal finance.“ According to Simple, “while your money is FDIC-insured and held with our bank partner, we provide the tools and customer support you need to manage, understand, and automate your everyday spending and saving.



Virtual bankingVirtual

banking

Bobber Interactive, USAWinner of FinovateSpring 2010 Best of Show award, Bobber “provides young adults an innova-tive FDIC‐insured payment and savings platform that combines social media and game psychol-ogy to drive user acquisition, engagement and loyalty. The company is targeting the 30 million Gen Y consumers. … Bobber will also drive opt‐in lead generation for financial institutions.” As of December 2011, Bobber Interactive is in Beta (invite only).



SmartyPig, USAOpened in 2008, SmartyPig was the first online banking application that combines Web 2.0 with social networking. SmartyPig allows customers to open goal-based savings accounts, earn a competitive interest rate, invite their friends and family members to help them reach their goals, and then get the most money for their money through cash incentive and smart spending pro-grams. … SmartyPig has been deemed “Bank 2.0” by leading American financial technology opinion makers for being the only true banking application that is social.”

Virtual bankingVirtual

banking



banksBy 2020, most of the consumers will demand retail banking products and services specifically designed to meet or exceed their needs or desires (such as mobility, social, simplicity, transparency, etc.). The customer-centric banking experience may help the banks to explore new opportunities. Many financial institutions are trying to move towards it. Some are doing it in different ways, but, are they effective?

36%

7%

57%

yes

planning

no

growth forthe new areas of

Have you ever changed your main bank?



US population by generation

GEN X BOOMERS GEN Y

34%

33%

32%Pe

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ang

e 20

10-2

020

-2%

2010 45%

2015 37%

2020 29%

Perc

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chan

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2010

-20

20 -1

6%

21%

30%

37%

Perc

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chan

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2010

-20

20 +

16%



The shift towards “customer-centric”

banking is manifesting itself in different

forms and flavors. The retail banks, both tra-

ditional and “de novo” types, seem to have a

preference for physical touch points, while

the new entrants prefer virtual touch points,

particularly mobile and internet.

Many banks and other financial institutions

are trying to move towards a “customer-cen-

tric” banking experience. Some are doing it

by offering eye-popping flagships; others are

offering simpler yet effective mass retail bank-

ing experience. Are they effective? As an ana-

lyst from Jack Morton summarizes, “But is the

physical remodeling of a bank branch to emu-

late an Apple Store, or the addition of more

financial advisers to a bank’s staff, really go-

ing to be enough to adequately redefine the

customer experience at a bank branch? Or

are these simply nothing more than stopgap

measures and speed bumps along the way to

branch obsolescence?

As for virtual banking, there are also some

major changes as well; customers can access

comprehensive banking services 24 hours, 7

days a week, and 365 days of the year. Though

virtual banking offers accessibility to custom-

ers, it also invites competition; as they are only

one click away. It seems that a radical change

in paradigm is underway.

Reiterating the finding from EFMA’s Retail Fi-

nancial Services Strategic Insights and Best

Practices, “The vision of most banks is to

provide their customers with a seamless, ful-

ly integrated and uniform experience across

all channels. (However) many banks are still

years away from achieving this.”

Opportunities for Customer-Centric BanksThe customer-centric bank branches may

help the banks explore new areas of growth.

Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customers has taken the control, the banks of the future must help each customer to reach his individual goals.



The flagships or the mass-market retail

branches can be “living labs;” a fertile testing

ground to explore new ways to doing busi-

ness, helping banks continue to develop and

deliver products that delight and “wow” the

customers. Also, the physical branches can

increase brand awareness and equity by of-

fering tangible and real-world experiences

of banking to customers.

Also, many pundits have talked about the

changing of the guards: the decline of the

boomers and the rise of Generation Y, with

Gen X going where the majority goes. In re-

gards to retail banking, a study conducted

Cisco’s Internet Business Solutions Group

(IBSG) in February 2010, suggests that by

offering value propositions that satisfies the

banking needs of younger customers (Gen

Y or Millennials), the banks may capture

around 5 to 10 percent of additional growth

by increasing the cross-selling ratios, offer-

ing targeted value propositions, and increas-

ing customer acquisition.

Gen Y is going to be the biggest customer

segment for retail banks by 2020 and they

will demand retail banking products and

services specifically designed to meet or

exceed their needs or desires (such as mo-

bility, social, simplicity, transparency, etc.).

Banks must correctly manage a smooth

transition from a traditional Boomer orien-

tated business of today to a Gen Y oriented

business of the future to ensure the surviv-

ability or sustainability of the retail business

by designing, developing, and executing a

sophisticated Customer-Centric banking

model.

Potential Bumps in the roadAs previously mentioned, retail banking

providers must make a smooth and (hope-

fully) profitable transition from 2011 to 2020.

Banking providers must correctly manage

the complete life cycle of the customers; but

must do so for three distinct generations and

all at once! Who said it would be easy? As

one member of EFMA succinctly expressed,

“instead of looking at the branch of the fu-

ture, banks should be looking at the future of

the branches.”

If the changing of the guards wasn’t com-

plex enough, new technologies will continue

to wreak havoc on some banking providers,

especially the traditional banks; as new tech-

nologies and applications (such as mobile,

social, cloud, and who knows what else) will

force the banks to react to consumers’ ex-

pectation. At the same time, the new tech-

nologies will provide “pick and shovels” to

both current and new competitors, making

it more difficult to “strike gold.”



In depthA list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the ‘Simple Bank’ report.

Books & publications

Business Model Generation framework. Alex Osterwalder, 2009

IBM | 2010 Chief Executive Officer Study

Booz Allen Hamilton | The Customer Centric Organization. 2004

Ernst & Young | A new era of customer expectation: Global Consumer Banking Survey 2011

PricewaterhouseCoopers | Getting to Know You: Building a Customer-Centric Business Mod-el for Retail Banks. 2011

Brett King, Bank 2.0 How customer behaviour and technology will change the future of finan-

cial services

“True Virtual Banking Has Arrived”. Online Banking Report, 198 (October 2011)



On the web

Barclays pilots Microsoft Surface in new flagship concept branch

Is It a Branch? Or a Store? It’s Deutsche Bank’s Q110

Branch experience for GE Money bank

Flagship sets sail

Raiffeisen Bank Zurich by NAU

Banking future vision

Citi - Japan Flagship Branch Prototype

Commonwealth Bank - Vision for 2013, we’re improving customer service

BBVA The Bank of the Future

CScout Trend: Q110 in Second Life

Crea International projected and developed the new concept for CheBanca!

Bobber Interactive, Winner of FinovateSpring 2010

What is Smartypig?

In depth



Trending issues Technology trendsIn the following section, we outline the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.

Summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.

also in this issue



Trending issuesIn this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summa-ries were prepared by the editorial board. Further information is made available for each given topic.

Core banking platformInternet irruption causes so much data in the world and

its support is very expensive. There are some trends

searching new ways of save money and energy.

New formatsBased on design principles focused on customer insights,

New formats offers retail banking customers more

channels which are more granular and highly functional;

a consistent, simple, and collaborative universal user

interface; real-time intelligent processes; highly personalized

solutions; and is open to social networks and the web.

Mobile bankingBanking industry is changing its appearance to the

customer to make their transactions easier. 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.

Enterprise 2.0Big companies are using 2.0 tools that makes

communications easier beyond email.

Mobile paymentsBig actors are launching new mobile payment solutions

that will be most important than cash in a nearly future.

Social MediaSocial Media are becoming more specialized in

different areas and users begin to use them as a new

communication channel.

Digital MarketingDigital 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.

Crowd financeDigital Marketing of brands use all forms of digital

advertising channels 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.

App ecosystemNomadic uses of information are driving a new plethora of

applications and a wealthy market.

New Gizmo eraThere are new amazing devices that will make us wiser and

healthier.

New banking conceptsBanks 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.

Join & enjoyGamification has become an important trending issue,

and “games” are not going to be just games anymore.

Companies are taking this trend and using it as an essential

tool.

Smart cities + urban mobilityDifferent companies from different industries are looking

for business models that let them be present in the near

future.

HealthNew tools will let us take our health control and manage it

in a easier way,



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

Centros de datos que usan chips de teléfonos inteligentes No es ningún secreto que los centros de datos cada vez se enfrentan a mayores exigencias (hay que almacenar en algún sitio todos esos 800 millones de perfiles de Facebook). No es sorprendente que las compañías que operan estos almacenes estén preocupadas por los costes de uso de toda esa energía. En septiembre, Google anunció que sus operaciones globales usaban de forma continua 260 millones de megavatios de potencia, aproximadamente un cuarto de la energía generada por una planta de energía nuclear.

Source: technologyreview | 14 noviembre 2011



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

Virgin Money: What Making ‘Everyone Better Off’ Means at the Branch Level What does making “everyone better off” mean at the branch level to Virgin Money, which yesterday agreed to acquire Northern Rock from the British government for $1.18 billion? Rather, than describe it, we offer some images of Virgin Money’s current and future branches.

Source: Bank Innovation. November 18, 2011



Trending issues

Mobile banking trends to watch out for in 2012

Mobile banking will continue to grow next year across a multiple fronts. Not only will more banks jump into mobile with optimized sites and application, but financial institutions will also build their existing mobile programs with a variety of new services.

Source: Mobile Comerce daily, December 30, 2011


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

BBVA y Bankia lanzan el pago con tarjeta sin firma ni pin BBVA y Bankia han lanzado un nuevo servicio conjunto que permitirá al cliente realizar pagos de hasta 20 euros con tarjeta sólo con acercarla a un lector y sin necesidad de firmar recibo ni teclear número pin, según anunciaron ambas entidades.

Source: EUROPA PRESS



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

Google persuades Spanish bank BBVA to use the cloud The bank would use Google applications like email, calendar, docs, chat, video conferencing and other collaboration tools to “achieve a cultural change” and get “the whole company working together” across the 26 countries where BBVA is based.

Source: BBC News, January 11, 2012



Trending issues

Adiós Google Checkout, hola Google Wallet

Nuevos movimientos de la compañía líder de Internet con los que reorganizar su oferta de servicios online..

Source: Desarrolloweb.com, November 21, 2011


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

El móvil reemplazará al pago en efectivo en 2016, según PayPal. En 2016, utilizaremos nuestros teléfonos móviles como método de pago de bienes y servicios casi en mayor medida que las compras en efectivo, con cheques o tarjetas. Así al menos lo considera PayPal, que ha publicado un informe (Money: The Digital Tipping Point), llevado a cabo por Forrester, según el cual 45 millones de británicos utilizan ya un móvil y cerca de la mida de los 550 compradores móviles encuestados (49 por ciento) aseguran que se están planteando utilizar su terminal para comprar bienes y servicios al menos una vez cada tres meses..

Source: IDG



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

Las aplicaciones sociales corporativas crecerán un 61% al año hasta 2016 Según un estudio de Forrester, esta industria generará 6.400 millones de dólares hasta 2016. Los medios sociales no se limitan únicamente a la actividad privada y de ocio, sino que es un paradigma TIC completamente válido para los entornos profesionales. En ese sentido, el mercado de las aplicaciones sociales para el mundo corporativo crecerá a un envidiable ritmo del 61% al año hasta 2016, año en que su volumen alcanzará los 6.400 millones de dólares.

Source: IDG



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


Join & enjoy


Health

The Brands With the Top Relationship Quality on Facebook

On Facebook, like in life, it’s not enough for someone to say he loves you. He has to prove it. In Fathom Analytics’ new Relationship Quality Index, the top-rated brands on Facebook tend to be the ones with the most likes. YouTube (48 million likes), MTV (29 million), Coca-Cola (36 million), Starbucks (26 million) and Disney (29 million) make up the top five. But because of other factors, such as engagement and emotion, those brands don’t fall in precise order of fan counts.

Source: IDG



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

The crowfunding revolution kickstarts a new economic hope Inspired by the success of funds like Kickstarter in the US, the crowdfunding revolution in 2011 broke onto the shores of Europe and for a country like Ireland battling to reinvent itself and fight its way out of recession, the business model has achieved tremendous success in just one year.

Source: Silicon Republic. December 30, 2011



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

Best iPhone Apps of 2011 For iPhone owners, 2011 brought a flood of new apps, but in many cases they struggled to outshine last year’s best.

Source: The New York Times, December 21, 2011



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

At CES, Expect More Gadgets Telling You to Get Off the Couch If your resolutions for the new year include health and fitness goals, several new products showcased at the Consumer Electronics Show in January just might help you get there. Two of the 25 TechZones on the showroom floor at the Las Vegas Convention Center will be geared specifically toward digital health, with more than 171 exhibitors showcasing products as part of the Digital Health and Fitness category.

Source: Wall Street Journal Online (All Things), December 30, 2011



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

Movenbank: The world’s first cardless bank launches in alpha With Google Wallet, Square, PayPal and other initiatives emerging in the mobile payments space, it was only a matter of time before a dedicated mobile, cardless bank emerged. Movenbank, dubbed “the world’s first everyday cardless bank”, launched its Alpha site this weekend. It’s an exclusively online, new model of bank that uses social, mobile and gamification technology.

Source: The Next Web Insider, October 2011



Trending issues

El Louvre usará la Nintendo 3DS como audioguía

El museo del Louvre sustituirá progresivamente sus guías turísticas electrónicas por la consola. Para ello dispondrá de cinco mil unidades. El museo ha valorado su funcionalidad 3D y la doble pantalla para ofrecer a los visitantes una nueva manera de descubrir las obras que alberga la instalación. La consola propondrá una visita en tres dimensiones y ocho lenguas sin necesidad de emplear gafas para disfrutar del efecto tridimensional. El museo tiene prevista la inversión de un millón de euros para mejorar las aplicaciones móviles, para teléfonos y tabletas, del museo, que han sido descargadas tres millones de veces. El uso de la realidad aumentada figura en sus planes.

Source: EL PAÍS


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

El fin de los ‘video’juegos Philip Tan, investigador y director del laboratorio de videojuegos MIT-GAMBIT, cree que su uso cada vez mayor hará que los llamemos solo ‘juegos’.

Source: Technologyreview. October 25, 2011



Trending issues

Crean un sistema operativo para controlar las ciudades

Este novedoso software recoge toda la información de sensores colocados estratégicamente en las ciudades para saber en todo momento lo que está ocurriendo y dar avisos en caso de que algo no funcione.

Source: The Inquirer, 3 Octubre 2011


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

La internet de los objetos Twine es una cajita de sensores programable pensada para amantes del “do it yourself”, gente con ganas de experimentar y cierta mano para la tecnología. La gracia del dispositivo es que cuenta con una interfaz de Software muy sencilla. No hace falta saber programación para conseguir, por ejemplo, que envíe un SMS a nuestro teléfono cuando algo ocurre.

Source: The Inquirer, 3 Octubre 2011

La recarga inalámbrica para vehículos eléctricos ya es una realidad

Aquellos emprendedores digitales que quieren hacerse un hueco en los negocios on line aún tienen problemas para poner en marcha un proyecto.

Source: eWeekEurope | 11 noviembre 2011



Trending issues


New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era


Join & enjoy


Health

La fiebre de las aplicaciones médicas móviles en Kenia

Este novedoso software recoge toda la información de sensores colocados estratégicamente en las ciudades para saber en todo momento lo que está ocurriendo y dar avisos en caso de que algo no funcione.

Source: TECHNOLOGY REVIEW

Esta caja envía tus datos médicos directamente a la nube Qualcomm aspira a integrar los aparatos domésticos de seguimiento sanitario y proporcionar una acceso más sencillo a los médicos. Una nueva plataforma de Qualcomm propone una sencilla caja que detecta las señales de aparatos de decenas de fabricantes distintos y los envía mediante una conexión móvil a una base de datos en la nube accesible tanto para el personal sanitario como para los pacientes.

Source: TECHNOLOGY REVIEW



The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.

The latest information available in the month

of October related to LTE/4G maintains this

technology trend as a priority for BBVA for

the medium term time frame. Operators are

beginning to take up LTE/4G.

Growth projections for handsets with em-

bedded LTE/4G are very bullish. For exam-

ple, according to In-Stat analyst Chris Kissel,

“There will be over 154 million LTE subscrip-

tions by 2015,” suggesting a CAGR of 79.3%

from 2011 subscriber base of 14.9 million.

He goes on to say, “Not only is the forecast

for the number of LTE/4G handsets moving

rapidly upward, so, too, is the total number

of cellular subscribers,” estimated to be 6.5

billion in 2015 globally.

Thus far, there are 26 carriers deployments

of LTE/4G worldwide. Interestingly, in 2011, 3

carriers will account for 47% of all subscrip-

tion in 2011: Verizon Wireless, MetroPCS, and

AT&T (all in the US). The 3 American carri-

ers will have 7 million of the 14.9 million sub-

scribers worldwide.

The demand for LTE/4G will be strongly

driven by the mobile video and the cloud,

as LTE/4G offers superior speeds (especially

while uploading).

LTE/4G, enabling high speed networking in your handLTE will redefine the office, making it increasingly mobile. From real-time group video conferences to connecting via mobile phone to applications that run in the cloud, employees can work from anywhere, changing the fundamental nature of the work environment.

g

Technology trends



IPv6, ready for the internet of everything?IPv6 is designed to solve problems of IPv4: we are running out of IP addresses and its hampering, among other things, technological progress. There isn’t enough IP addresses for all things to be connected. Benefits of IPv6 offers improvement in addressing and routing, security, address translation, administrative workload, and support of mobile devices.

g

Technology trends

IPv6 is designed to solve problems of IPv4:

we are running out of IP addresses and its

hampering, among other things, technologi-

cal progress. There isn’t enough IP address-

es for all things to be connected. Benefits of

IPv6 offers improvement in addressing and

routing, security, address translation, admin-

istrative workload, and support of mobile de-

vices. Also, IPv6 includes a set of possible

migration and translation plans from IPv4.

The latest information related to IPv6 keeps

this macro trend as a priority for BBVA for the

long term time frame. The survey conduct-

ed by Ipswitch, Inc in May 2011 concludes

that most companies’ networks are not yet

ready for the transition to IPv6: 67% of cor-

porate networks are not prepared to accom-

modate the IPv6 protocol and, the majority

of Internet networking equipment currently

sold supports only IPv4.

Despite its immaturity, no one doubts that IPv6

will be the successor to the currently used In-

ternet protocol IPv4. 24 hour tests were suc-

cessfully taken worldwide on June 8;(3) which



showed that IPv6 works without problems.

A Webzine survey conducted by Network

World (IDG Group) in July 2011 shows that in

the next 24 months 65% of companies plan

to introduce IPv6 for their internal networks,

and 70% of IT departments are planning to

update their websites to support IPv6.

The above data suggest signs of a begin-

ning of the transition from IPv4 to IPv6. How-

ever, the duration of this transitional period

(where both protocols coexist) is likely to

continue on for several years until it reaches

a full implementation of IPv6.

An mentionable IPv6 implementation proj-

ect is being developed by Orange Labs in

their Smart Cities Demo.


CONTRIBUTORS IN THIS ISSUE

Reyes Bolumar

Ángela Cobos

Iker Chinchetru

Antonio García

Eugenio García

Miguel Ángel Iñesta

Carmen López

Rigoberto Sáez

Alicia Sánchez

Marcelo Soria

María Tena

Gustavo Vinacua

Published by

BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.

Produced by Prodigioso Volcán

(www.prodigiosovolcan.com)

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