CHALLENGES AND OPPORTUNITIES - Verdict · 2019-12-16 · NFC EnabledSmartphonesare Ubiquitous...

CHALLENGES AND OPPORTUNITIES

Presented by Bernardo Nicoletti, 11 November 2014

PREPAID AND BANKING

PRESENTATION TITLE GOES HERE

Agenda

Benefiting from new disruptive innovation (mobile, m-wallet, P2P) changing the

market landscape

Orchestrating products in the prepaid ecosystem


1914: Launch of the first credit

card by Western Union

Payments Trends

• Strong Interest in Young Generations, Underbanked and Unbanked

• Modernization of Payment Systems

• Payment Systems at the hearth of financial growth

•Joint Finance and Risk Management

• Growth fueled by New Channels

•Increased in e-Commerce activities

PRESENTATION TITLE GOES HERE3

•Increased in e-Commerce activities

• Large CAGR in Internet based Payments over last 5 years

•Mobile Banking & Payments

• Mobile Payments across the world expected to double in 2 years

Convergence of Financial Services and Digital Businesses

Convergence of Financial Services and Digital Businesses

Non-Cash Payments are Exploding

Especially Card Payments


Mobile Payment Users by Region (in 000)

80.00

100.00

120.00

140.00

Chart Title


Skinner, C. “Digital Bank”

0.00

20.00

40.00

60.00

W. Europe North America As/Pac EMEA Latin America

2009 2010 2011 2012 2013 2014 2015

Both Customers and Banks have New

and Emerging Payment Needs

• Responding to consumer

change in a value effective

way to fight

competition, coming also

Banks

• Ease of use for quick and

simple payments

• Possibility to make payments

whenever and wherever

Customers


competition, coming also

from other quarters

• Creating differentiation in the

minds of customers.

• Developing and managing

multi-channel strategies

• Managing credit lines and

cash flows

• Cost reduction

whenever and wherever

• Transparency and up to date

view on cash position and flow

• Convenience to take

advantage of the ubiquity of

smartphones – but need to be

reassured on their security

6 | Barclays Pingit for corporates |

September 2013

The Four Challenges in Payments: 4C

Co

mp

eti

tio

n

Compliance

Cu

stom

ers


Co

mp

eti

tio

n Cu

stom

ers

Computers

&

Technology

Evolve or Die

It is not the strongest of the species that survives, nor

the most intelligent that survives. It is the one that is the

most adaptable to change.”

Attributed to Charles Darwin


–Charles

Time of Disruptive Innovation

A disruptive innovation creates a new market and value network, and

eventually disrupts an existing market and value network (over a few years or

decades), displacing an earlier technology.


Innovation can be on:

• Products

• Processes

• Distribution

• Business Models

Innovation in Payment Systems

Mobile & NFC

Smart Cards

� Huge Untapped Market

� Quick and Convenient

� Capable of Displacing Cash

� Technology to play a major role

� Can provide ‘Top-of-Wallet’ status

� Suica in Japan & Octopus in HK

� Taking success of cards to the

next level

� One card does it all

� Safe and Secure

� Tool for Microfinance and Financial

Inclusion e.g. Rural Smart Cards in LatAm

� Witnessing unprecedented � Broadened product offering such as GiroPay, PC Pay, EPS etc.


M-Wallet

P2P Payments

� Increased time spending on these forums

� Extend Banking Services apart from marketing & Branding

� Large reach at minimal investment

� Apprehensions over security and

privacy

� Witnessing unprecedented

growth all over

� Comfort and Convenience

GiroPay, PC Pay, EPS etc.

� Enhanced security- virtual keyboard, virtual card, multi-facto authentication

Loyalty

Coupons Extended packaging

Mobile eCommerce

A Disruptive Innovation:

The "Mobile Payment Experience"


In-store

navigation

ATM/Branch Locations

Self-scanning &

Self-checkout

Shopping Lists

Payments

Advertising &

Promotions

Mobile Payments: A Disruptive Innovation

Type of Innovation Characteristics

Product Combines all types of use of the card

Process Combines different modes: biometrics, pictures, voice


Process Combines different modes: biometrics, pictures, voice

Distribution Everywhere and Everytime

Business Model Ecosystem in Parternship: Banks, Telco, Retail, etc.

7 billions phones vs. 2 billions of banking account

Remittance: a New Frontier

200

250

300

350

400

450

500

Chart TitleRemittance: in Billion of $


0

50

100

150

200

2011 2012 2013 2014

East Asia and Pacific Europe and Centrak Asia Latin America and Caribbean Middle East andNorth Africa South Asia Sub-Saharian Africa

7 billions phones vs. 2 billions of banking account

European mobile phones installed Global Mobile Data Traffic,

base, million1 Exabytes per Month2

675

750

825

10.8

NFC

Smartphone

0% 9%

3%

30% 32%

21%

4.2

6.9

Feature phone

NFC Enabled Smartphones are Ubiquitous


Feature phone 91% 67% 2.4

47% 1.3 0.6

2008 2012 2017 "Mobile connection speed to increase

Share in new device sales 6-fold with 4G impact by 2016"

Smartphone

NFC

18%

0%

64%

10%

83%

57%

"2011's mobile data traffic was eight

times the size of the entire global

Internet in 2000"

Technology Helps

Host Card Emulation (HCE) is the presentation

of a virtual and exact representation of a smart

card using only software.

NFC is now almost the standard in smartphones

With Host card

Without Host card


Biometrics is being introduced as a virtual and

effective “password”.

M-Wallet

The mobile wallet, or mWallet, digital wallet, or eWallet, refers to

a mobile technology that is used similarly to a real wallet.

It is a convenient solution for any business looking to allow customers to

purchase their products online with greater ease, therefore driving sales.


What can it hold other than payments?

• Bank account details

• Credit cards

• Gift coupons and reward certificates

• Loyalty cards

• Offers

Some Data and Trends

79% of consumers remain concerned with security of payment

information stored on a e-wallet (First Data Universal Commerce Tracker

Study, 2013)

‣ Identification of Drivers - 34% of overall respondents would use

a mobile wallet to originate payments (UK Study FC Business Intelligence LTD, 2013)– 46% for smart phone users

– 49% for 25-34 year olds




– 51% when incentive is offered

•A few solutions has established themselves in niches

•Expect:

•Consolidation of vendors in competition clusters

•New solutions that focus on the customer but that offer means of

payments alternative to cards.

•Mobile wallets will not exist as stand alone, payment only services

P2P

Person-to-person payments (P2P) allows customers to transfer funds online to

another individual via the Internet or a mobile phone

In the first method users, identified by their email, establish secure accounts

with a trusted third-party vendor.

Ex. Paypal, MyBank

In the second method, customers use an online interface or mobile application


In the second method, customers use an online interface or mobile application

to designate the amount of funds to be transferred.

Ex. Pingit by Barclays, Paym

A Successful Story: Barclays Pingit


Send now

Transfer

money using

only a phone

number

Launched

February

2012

Pay now

Settle a bill

or

invoice, easil

y and

instantly and

make Gift

Aid enabled

donations

Launched

May 2012

Buy now

A range of m-

commerce

solutions to pay

for goods and

services on the

go

Launched

September

201319 |

Barclays

Pingit for

corporates |

Transfer Now

Possibility to

transfer money

to India and

several other

countries (e.g.

Kenya)

Launched

2014

Innovation for the m-Generation

Simplify Add Value Consolidate and

Virtualize

ProductProduct ProcessProcess TechnologyTechnology


“Financial Services Organization can no longer let BPM pass...” Michael Hammer

ClienteProgettazione

ProduzioneComme

rcialeAssistenza tecnica

Processo

The Final Message To Beat Your

Competition> > Strive For Perfection

Continuous improvement

The policy of the Bonsai, small steps at a time


Bernardo Nicoletti

Transigma Emea, Director

Professor at the Master in procurement at the

University of Rome, Tor Vergata, Rome, Italy.

Consultant and Coach

Master Black Belt

MOBILE

BANKING

E v o l u t i o n o r R e v o l u t i o n ?

PALG

RAVE

STUDI

ES IN

FINAN

CE

TECH

NOLO

GY


[email protected]

+39 348 470 7016

Blog: www.leandigitize.com

B E R N A R D O N I C O L E T T I

THANK YOUPresented by Bernardo Nicoletti, 11th November 2014


CHALLENGES AND OPPORTUNITIES - Verdict · 2019-12-16 · NFC EnabledSmartphonesare Ubiquitous...

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Transcript of CHALLENGES AND OPPORTUNITIES - Verdict · 2019-12-16 · NFC EnabledSmartphonesare Ubiquitous...