digital banking: a trend or a necessity ? 6 may 2015 · mylogo is member of erste group (this is...
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Digital Banking: a trend or a necessity ?
6 May 2015
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Global Social Statistics
TOTAL GLOBAL POPULATION
ACTIVE INTERNET
USERS
ACTIVE SOCIAL MEDIA USERS
UNIQUE ACTIVE MOBILE USERS
ACTIVE MOBILE SOCIAL
USERS
7.18 Billion URBAN POP 52%
2.5 Billion PENETRATION 41%
2.03 Billion PENETRATION 28%
3.61 Billion PENETRATION 50%
1.56 Billion PENETRATION 22%
Source: We are social Blog, Aug 2014
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Customer Behavior: Shift to Digital
1 – 2 Times per Year 5 – 6 Times per Year
3 – 5 Times per Month
7 – 10 Times per Month
20 – 30 Times per Month
Source: Disruption in Digital Banking, www.slideshare.com, Dec 2014
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Digital consumers represent a sizable population in most markets
2014 Digital-banking penetration*(2014)
“Digital consumers” represent more than 700 million customers across Asia
96% 96% 94% 93% 92% 83%
57% 44% 41% 36%
19% 18% 13%
*“Digital banking” penetration is defined as the number of users of internet or smartphone banking divided by total banking consumers in each country; only urban consumers are included“ SOURCE: McKinsey Asia Personal Financial Services Survey, 2014Digital
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What is now important for a digital customer?
VP of experience design at Singapore-based OCBC Bank believes that the ‘beauty imperative’ in financial services will begin to differentiate offerings. She believes beauty is also important in designing financial channels and products.
Simplicity Clarity
Responsive design
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Terminals Phone Banking
Branch Online
Banking
What Does Digital Stand for?
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Ana Botín, chairman at Santander, “The fact is, even young people like to go to a branch at least twice a year. That means you need quite a significant retail presence, which the tech companies don’t have,”
Lab Branch – “Learn About Banking” • Learning environment among digital self-service
technology • Remote advisor accessibility • Mobile device demos • Digital “avatar” welcoming customers
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Branch vs. Digital or Branch and Digital
Digital Technologies will not replace Branch but will definitely change it
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Strategic hot spots and important urban locations Limited product range for daily needs Modern self service devices Customer support in doing quick and simple transactions Multifunctional cash machines, but no cash desk Videoconference meeting room for advice on more complex range of products
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ERSTE Group - Service branch
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Is the local market prepared for the digital disruption?
http://www.internetworldstats.com/eu/ro.htm, www.internetlivestats.com/internet-users/
7,8mil
280k
1,6mil
782k
187k
54% 71% 77%
61% 58% 52% 50% 46% 47% 48%
Overall Romania Urban Romania Bucharest-Ilfov West North - West South -East Centre South (Muntenia) South West(Oltenia)
North - East
Households internet penetration
Sources: National Institute of Statistics (Population access to information and communication technology in 2014)
54% household with internet access
70% household with internet access in the urban area
90% household with internet access from banked population
Online banking active users bellow 10%
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Real challenge … how to move clients to digital channels
BCR Digital Banking
ecosystem
Internet Banking
Web Portal
Personal Finance
Manager
Self Service Terminals
Mobile Transactions
(USSD)
Personal Finance
Manager
(IOS/ Android)
eToken (IOS/
Android/ Windows)
Smartphone banking
(IOS/ Android)
Complete range & fully integrated digital
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Real challenge … how to move clients online
Next Step in digital banking evolution: Consaltancy & Sales. PFM feature is providing financial assistance through an automated 360 degree overview of the financial status to our PI customers
PFM is a financial education tool available in Click24 or standalone as app for IOS & Android, helping customers to:
View spending automatically categorized by transaction destination;
Efficiently administrate their budget, setting monthly targets;
Benefit from an advanced automatic prediction module for their expenses;
Rapidly and intuitively see displayed in different types of graphics their personal expenses and incomes;
Have an overview on their financial status (what they spent their money on, how much money they have / borrowed);
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Real challenge … how to move clients online
Invest in educating your clients
Educate bank personnel to better advise our customers