Game of phones: disruption is comingconferences.lafferty.com/doc/D269332.pdfEstablished in 2007,...

Prepared by Optima ConsultancyOptima | The Payments Consultancy

Game of phones: disruption is comingThe International Cards and Payments ConferenceMark O’Keefe, 19th September 2017

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Optima | The Payments ConsultancyPrepared for Lafferty Councils | Proprietary and Confidential | 19th September 2017

This presentation may contain spoilers proceed with caution!

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About Optima Consultancy

Established in 2007, Optima Consultancy has grown as a specialist payments consultancy practice, based in Manchester, UK but working across the globe.

We have a deep understanding of the payment ecosystem and are fortunate to work with some of the biggest brands in the value chain, including issuers, acquirers, payment networks, PSPs, retailers and mobile operators.

Our experienced consultants and associate network deliver expert advice, tools and support.

Mark O’Keefe, DirectorFounding director of Optima Consultancy, operating across commercial finance, strategic change and business transformation. 20+ years in the payments industry and a fellow of the Chartered Institute of Management Accountants (CIMA). Experience with M&S Money and Capital One.

Core services

Scheme feesManagement information &

dashboards

Training & simulations

Regulatory compliance &

reporting solutions

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The battlefield of digital disruption…

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…with many players competing for the throne

Source: PWC, Who are you calling a challenger? 2017

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The current King/Queen: NatWest No.1 banking app 2017?

“it has become a valuable

resource to help me keep track of

my spending”

“This app has revolutionised

my life”

“This app is super useful”

“Easy to transfer

money to contacts

“Warns in advance if going

to be offline”

“Impressed with the emergency

get cash feature”

Voted for in the 2017 British Banking Awards (February)

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Some well thought out features? Addressing customer needs?

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A short-lived success? Innovation is a survival skill!

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

July '16 October '16 January '17 April '17 August '17

NatWest app rating past 12 months (IOS)

Source: Optima Mobile Study 2017

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How we actually want or need to request money?…with purpose in mind

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0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

StarlingBank

Barclays Lloyds RBS NatWest TSB Nationwide Mondo HSBC First Direct Santander

Mobile app rating (IOS) August 2017

Who poses the biggest threat? Challenger bank comes out top!

1 dayUpdated

2 wksUpdated

2 wksUpdated

1 wkUpdated

1 wkUpdated

2 wksUpdated

3 mthsUpdated

5 daysUpdated

2.5 wksUpdated

1 mthUpdated

3 mthsUpdated


“You as a customer should be interacting with a bank in the

same way you interact with the rest of your life”

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Check balance without logging inTouch ID log inManage overdraft limitApply for overdraftUpdate contact detailsLive chat in appView PINFreeze / unfreeze cardReport card lost or stolenPersonal financial management toolsTransaction / spend notificationsApply for an accountSecurity controls

Its about having the right ammunition: Customers are rating Starling Bank’s multiplicity of app features


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Starling Bank, competition for the dragons

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Video: Open an account via the app

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Video Identification

Order card & set PIN

Photo Identification

Process complete

Quickly gaining supporters: account opened in just 5 minutes!

Registration complete

02.30m 05.00mStart 00.43m 03.30m 04.04m 04.43m

Account opened

Opening account processRegistration App security

Mobile no. Text code Pass code

Enter personal details Address details Second address

entry added 20 secs

Choose pass code (45s) Video (32s) Passport (34s)

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HSBC: a consistent poor performer - a case of app-athy?

An unsurprising rating?

Let’s take a look…

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But wait…an exciting new feature…

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Video: HSBC Fast Balance – the dragon slayer!

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Video: HSBC “fast” balance in reality

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Video: Starling Bank

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Starling Bank has no “fast balance” feature but balance is available 11 seconds quicker than at HSBC!!

Balance in 17 seconds Balance in 6 seconds

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Need to do in months or weeks what has typically taken years!

HSBC Natwest Starling BankView balancesSet up balance alertsView transactionsSearch transactionsTransfer money between accountsCheck balance without logging inSMS alertsATM / Branch locatorTouch ID log inMobile payments i.e. supports Apple PayPay P2P via mobile numberSet up new payeeMake payments to existing payeesSet up standing ordersAmend / delete standing ordersDelete Direct DebitsView monthly statementsDownload statementsManage overdraft limitApply for overdraftApply for credit card / productsUpdate contact detailsCall customer services from within appLive chat in appView PINFreeze / unfreeze cardReport card lost or stolenSmartwatch appPersonal financial management toolsTransaction / spend notificationsPersonalised contentTell them your going abroadGet cash from ATM using phoneApply for an accountManage devicesSecurity controls

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Consumer driven? Is facial recognition a hygiene factor in China? Touch ID in UK?

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The rising force: Money management mobile apps

Mobile app Yolt works as a PFM dashboard aggregating the balances of customers’ various accounts and assisting them with analysing their spending patterns and payment obligations…

Can add up to 26 cards Created to give users predictive analysis

which can:– Identify spending habits– Set reminders– Count down days remaining until next pay

day– Integrate data into clear insights– Look for better deals for energy etc.– Avoid surprises thanks to predictive debts

Gearing up to get ahead of the game when it comes to PSD2:

“throughout the year well introduce new features, such as personalisation that creates bespoke offers to customers and personal notifications on spending…”

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Demonstration: living the dream?

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Beyond the wall: Now this is an ecosystem…

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WeChat users are surpassing internet users in China

590618 630 649 668 688

710

460500

530557

594620

656

235

355

438

500

806

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016

Internet users vs. WeChat users

China internet users China mobile internet users WeChat users

Source: Wechat key trends report 2017, Chinachannel.co

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Watch TV while double screening: moments, chat, games, articles

Off work: check moments

Lunch time: split the bill using WeChat go dutch feature

Return home: order food out get delivered home through WeChat

Rest time: shop online through WeChat, JingDong chat with friends

Break time:check moments, send messages to friends

09.00

Typical daily schedule for an engaged WeChat user

07.4507.00 08.30 10.00 12.00 12.45 17.00 18.00 20.00 22.30

Wake up: check moments

Arrive at work: use WeChat Pay to buy breakfast

Get ready for bed: chat with friends, receive lucky money

Commute: Read articles, play games

Start work: scroll through work related WeChat messages

Source: Wechat key trends report 2017, Chinachannel.co

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There may be an underestimated threat…

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The ultimate weapon: speed, UX and scale?

Source:: https://newsroom.fb.com/news/2017/04/get-paid-back-announcing-group-payments-in-messenger/

Keep track of who has paid

Specify reason for request

Split individually or equally

Send & receive payments

https://newsroom.fb.com/news/2017/04/get-paid-back-announcing-group-payments-in-messenger/

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What will be the series finale? A wake up call or too close to call it?

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Thank youMark O’Keefe+44 (0) 7801 845 [email protected]

mailto:[email protected]

Game of phones: disruption is comingconferences.lafferty.com/doc/D269332.pdfEstablished in 2007,...

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