tc bank technology innovation indiana

TECHNOLOGYINNOVATIONSIN BANKING

MOBILE

GEN X & Y

FACEBOOK

GLOBALIZATION

DATA SECURITY

GOOGLE

LINKEDIN

SECOND LIFE

SMS

?

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While crystal-ball gazing is never the best way to formulate business strategy, an understanding of present trends and future

possibilities can help meet challenges. As banks change for the future, they need to prepare for a competitive marketplace by

transforming processes and infrastructure, and most importantly, their thinking. The bank of the future must have a networked IT

landscape, increased automation, niche products and better understanding of customer needs to succeed.

You can download today’s presentation at http://www.plantemoran.com/Industries/FinancialInstitutions/Banks/

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TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKING TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKING

Gen Y / Millennium Generation Just beginning to enter the workplace, The Millennial Generation (or

Gen Y) was born between 1977 and 1998. The 75 million members of this generation are being raised at the most child-centric time in our history. Perhaps it's because of the showers of attention and high expectations from parents that they display a great deal of self-confidence to the point of appearing cocky. As you might expect, this group is technically literate like no one else. Technology has always been part of their lives, whether it's computers and the Internet or cell phones

They are typically team-oriented, banding together to date and socialize rather than pairing off. They work well in groups, preferring this to individual endeavors. They're good multitaskers, having juggled sports, school, and social interests as children so expect them to work hard.

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Generation Y-ers, the oldest of whom are just in their mid-20s, will soon become the banking industry’s most sought-after customers. But attracting these customers is a marketing puzzle since they combine a comfort with technology with a continued reliance on branches and in-person interaction.

As far as bankers are concerned, Generation Y isn't quite ready for prime time. But they will be in another decade or so, and therein lies the dilemma: how to attract and service a client base that has lots of potential, but currently does little to bolster the institution's profitability.

Banks’ most loyal customers are their oldest customers, while Gens Y and X are the retail banking customers of the future. They’re also the least loyal and hardest to please, according to a recent Maritz® Poll.

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Gen Y / Millennium Generation

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…predicted that in 10 years, Google would be the fastest growing advertising media companies?

In 2007, the year-over-year growth of revenue on Google.com (US) — approximately $2 billion — was more than twice as much the growth of ad revenue in all of the next 5 offline media companies (i.e., Time Warner (TWX), Disney (DIS), Viacom (VIAB), CBS (CBS), and Clear Channel)

3rd Qtr 2008 - Google revenue up 18%: Google has posted a revenue of $5.70 billion for the quarter ended December 31, 2008. In a time when many forms of traditional media such as print are seeing a decline, Google is out performing many of its competitors . These results equate to an increase of 18% compared to the fourth quarter of 2007.

In 1998 Who Would Have . . .

stretch your minds on how current technology

will evolve …

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http://upload.wikimedia.org/wikipedia/en/b/b7/Google1998.png

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Technology Innovation

We all know about mobile banking, but the future holds much more than just checking balances and paying bills via mobile phones.

How can we stretch our imagination to predict technology trends beyond what we know now?

History shows us that the answer lies in today’s technology trends and the users using it

… or tracking your kids behaviors

Mobile Technology

Text Messaging

Social Networks

Millennium Generation

Google

Apple

Second Life

Data Security & ID Theft

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Innovation It doesn’t happen as a single event. It is a collection of events, issues, needs,

and opportunities. Cash -> Checks -> Credit Cards -> eMoney Mainframes -> PCs -> Servers -> Networks -> Internet -> Mobile Messengers -> Letters -> Phones -> e-Mail -> Text Messaging

Increasing pace and rate of change Adoption times are shrinking Took 38 years for radio to reach 50million users, Intenet got there in 5 years, mySpace got

there in two,.

Wild cards (i.e., Facebook) Need vs. Emotion

Just meeting a need doesn’t guarantee success. Understanding a consumer’s passion, frustration, ease, etc., can improve your adoption rates

In the beginning, it might not have an economic value

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Trend 1: Mobile Banking

Mobile Phone Technology By 2010, 35 percent of online banking

households will be using mobile banking, up from less than 1 percent in 2007

40 percent of Generation Y indicates that mobile financial services will be a factor in their choice of bank.(source: Celnet)

Text Messaging 76% of tweens use instant messaging as their

main method of staying in touch with friends online

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TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKING TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKINGMobile Technology – What’s Next

Coming Soon:

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Payments / eWallet

Confirmation

Location marketing

Text Alerts

Text your account for balance, transaction history, due dates, etc.

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Google Maps ATM / Branch locator

Mobile Technology – What’s Next

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Stretch your mind:

http://www.netbanker.com/WindowsLiveWriter/MasterCardLaunchesiPhoneATMFinderApp_EDFA/image_10.png





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Call your ATM


Patent 7,040,533 enables mobile devices to interact directly with an ATM and a bank system to allow a customer to order cash withdrawals from a mobile device.

Patent 7,207,477 enables mobile devices to be used in a checkout or bank environment to make payments using secure electronic checks.

Patent 7,201,313 enables a bank network to receive wireless communications from a mobile device, including a customer's bank account number and account cash value. This patent defines how a wireless device can "communicate" with a bank network to dispense cash and assess a customer's account for the value of the cash dispensed.

Patent 7,150,393 enables bank ATMs to communicate with mobile devices through a cellular network or other wireless methods. This application could also allow two or more customers to simultaneously conduct transactions with an ATM.

Patent 7,025,256 enables a user of a wireless device to interact with an ATM by using the wireless device's display and keypad instead of the display and keypad on the ATM.

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Stretch your mind:

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iPhone Apps going beyond mobile banking


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Stretch your mind:

SplashMoney ($9.99)SplashDataSplashMoney is another mobile checkbook that allows you to track different account types: checking, savings, credit card, cash, asset, liability, money market and line of credit. You can create a budget and track and analyze your spending with customizable reports and charts.

http://splashdata.com/splashmoney/support/iphone.htm

http://www.mint.com/glossary/?term=Liability

http://www.netbanker.com/WindowsLiveWriter/DayBankisBiggestSellerintheFinanceCatego_B301/image_2.png

http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=300238550&mt=8

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Trend 2: Social Networking

Facebook / MySpace Three times more credit unions have a

Facebook site than banks

LinkedIn, Tagged, Plaxo

In October, MasterCard and Citizens Bank had 293,000 and 960,000 unique visitors respectively and received 3,700 and 4,300 referrals directly from LinkedIn respectively.

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Social Networks — What’s Next

Coming Soon: Encourage employees to use

LinkedIn & Facebook / mySpace

LinkedIn Bank profile

Start a Facebook account for your institution

Actively participate in your local community Facebook site

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http://www.netbanker.com/WindowsLiveWriter/FirstBan.BankBranch9415inBeavercreekOhio_DE27/image_7.png

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Stretch your mind: Facebook Banking

MyMoney is an innovative banking application built on Facebook for Credit Unions. Fiserv developed MyMoney to enable Facebook users to search for and join a credit union and manage their funds via the familiar Facebook interface.Using MyMoney, they can view account balances, history and transfer funds right from their Facebook profile, with multiple layers of security protecting their data and accounts. Developed to reach younger members and potential members where they spend time online.

When a member adds MyMoney™ to their Facebook page, their friends will be notified and given the opportunity to also join your

credit union right then and there, giving you yet another way to reach this growing

audience.

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http://www.netbanker.com/WindowsLiveWriter/FiservsOnlineBankingAppforFacebook_B68A/image_2.png

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Stretch your mind: Blogging

Verity Credit Union started blogging in late 2004

Wells Fargo Blogs

Staci Schiller, Wells Fargo Education Financial Services: "Our goal is to serve customers when,

where and how they want to be served. People get their information in many different ways, and social

media offers us a new opportunity to have a dialogue with our customers, learn from them, and provide

information and advice on topics that are important to them. We're reaching new audiences in a personal way when our team members share their thoughts

and experiences on blogs."

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Stretch your mind: Twitter

Follow the bank / or key employees

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Twitter is a free social networking and micro-blogging service that enables its users to send

and read other users' updates known as tweets. Tweets are text-based posts of up to 140

characters in length which are displayed on the user's profile page and delivered to other users

who have subscribed to them (known as followers). Senders can restrict delivery to those

in their circle of friends or, by default, allow anybody to access them.

http://www.netbanker.com/WindowsLiveWriter/MergingOnlineandOfflineChannelsviaTwitte_104EA/image_2.png

http://www.netbanker.com/WindowsLiveWriter/BanksonTwitter_F4AB/image_2.png

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Stretch your mind: Social lending

Social lending sites connect individual lenders and borrowers through a peer-to-peer network that is streamlined, efficient, legally formatted, profitable, and most importantly - helpful. Social lending sites provide an opportunity to reduce loan rates and loan costs for borrowers and provide a rate of return for lenders which may beat investment alternatives.

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http://www.globefunder.com/

http://www.virginmoneyus.com/

http://www.communitylend.com/

http://www.prosper.com/prm.aspx?prm=1006&ReturnURL=https://www.prosper.com/account/common/register.aspx

http://www.lendingclub.com/

http://www.fynanz.com/

http://www.loanio.com/

http://www.greennote.com/

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Trend 3: Virtual Worlds

Second Life (abbreviated as SL) is a Virtual World developed by Linden Lab that launched on June 23, 2003 and is accessible via the Internet. A free client program called the Second Life Viewer enables its users, called Residents, to interact with each other through avatars. Residents can explore, meet other residents, socialize, participate in individual and group activities, and create and trade virtual property and services with one another, or travel throughout the world, which residents refer to as the grid.

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http://www.secondlife.com/join/?u=8ee96cdcd886410e83d4133c6475eb36

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Virtual World— What’s Next

Stretch your mind: Wells Fargo’s Stage Coach Island

Wells Fargo launched Stagecoach Island in 2006, originally within Second Life, and then spun it off on its own. It's a chance for Wells to give users a truly interactive experience with their brand and increase their relevance to Millenials, who may feel that banks don't understand them.

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TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKING TECHNOLOGY TRENDS IN BANKING • TECHNOLOGY TRENDS IN BANKINGTrend 4: Branch of the Future

As customers take to online banking and banks opt for technology solutions, one might be forgiven for thinking

that the branch is an endangered entity. Nothing could be farther from the truth. The branch will remain, albeit changed beyond recognition. The branch of the future

will become a retail outlet, a ‘store’ as it were, offering a range of financial products and advisory services. While customers will increasingly bank online, the reassurance

of face-to-face transactions is essential for certain customers and certain transactions.

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Umpqua Bank’s ApproachCertainly the message you would get if you were to visit the Umpqua branch in

Portland’s trendy Pearl District neighborhood seems only vaguely related to the mundane business of

certificates of deposit, checking accounts and loans. With free wi-fi access, Umpqua brand coffee, a

spacious seating area and flat-screen television monitors, the place has been

designed to suggest a stylish hotel lobby where you’re tempted to hang out (and, perhaps, read a tastefully printed brochure about certificates of deposit, checking accounts and loans). This and other Umpqua branches also serve as

the setting for things like sewing groups, yoga classes and movie nights. Actually, the word “branch” is not used

in Umpqua’s official internal terminology: the bank operates 127 “stores” in Oregon, California and

Washington. 21

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Umpqua Bank – In the neighborhood

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Umpqua Bank – Online Experience

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When Umpqua’s President and CEO first announced this program to his Board of Directors, there was resistance, so he guaranteed them fifteen million dollars in new deposits the first year. As he began to

see the program evolve, he raised his guarantee to thirty million dollars. The first week the store was open, it generated a record one

million dollars in deposits.

Nine months into the first year, Umpqua’s new store had a record fifty million dollars in deposits.

Umpqua Bank

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Generation X / Y / Millenniums

Connecting with them: Rates / Fees

Rewards Program

Referral Fees – Facebook referral program

Location / Convenience Internet Banking Mobile Banking Physical Location

Banking Counselor Person they can call upon Explain the various banking products

Education vs. Marketing

Branch Experience

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Communication Methods Facebook / LinkedIn Text Messaging Blogging

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What else . . .

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http://www.finovate.com/startup09/presenters.html

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BillMyParents….

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The service is primarily designed for kids to shop

online. They select what they want, then at checkout, redirect the bill to their

parents via an email alert to PC or mobile phone. Parents

login and complete the payment process at their

convenience using MasterCard, Visa, or

Discover Card

http://www.netbanker.com/WindowsLiveWriter/FromtheTwitterverseBillMyPar.comLaunches_AF40/image_2.png

Thank You!Raj Patel, Partner

Plante & Moran, PLLC

Raj Patel, Partner

248.223.3428

[email protected]

You can download today’s presentation at http://www.plantemoran.com/Industries/FinancialInstitutions/Banks/

tc bank technology innovation indiana

Economy & Finance

banking technology trends

banking industrys

retail banking customers

generation y isnt

generation yers

mobile technologyjust

billsvia mobile phones

gens y