Mobile Banking Presented by: Cindi Lieblich Vice President – Product Development First Data Corp.
Transcript of Mobile Banking Presented by: Cindi Lieblich Vice President – Product Development First Data Corp.
Mobile Banking
Presented by:Cindi Lieblich
Vice President – Product DevelopmentFirst Data Corp.
Agenda
• The Market
• The Models
• The Future of Mobile
The Market
Mobile phones are pervasive
– 254+ million mobile U.S. subscribers; 84% penetration
– 1 billion+ SMS messages exchanged per month (Aberdeen Group)
Consumers want mobile banking
– 73% of consumers want to see account balance information on mobile phones
– 61% of 25-34 year-olds would make purchases using mobile phones
– 53% of consumers want to see transaction history on mobile phones (Celent)
– 50% of 18-25 year-olds say mobile banking is important in choosing FI
– 49% of customers would use a mobile banking/payment application
Strong analyst forecasts for mobile banking
– 11 million U.S. households will use mobile banking by 2010; 32 million by 2016.
– By end of 2010, 30% of all online banking households will engage in mobile banking
– 204 million users will generate mobile payment transactions worth ~$22B by 2011.
Mobile Banking Demand
(CTIA)
(Celent)
((VISA)
(MQA Research)
(OnlineBanking Report)
(Juniper Research)))
(Celent)
(Celent)
Mobile Usage is Growing
Mobile Banking Affects Bank Selection
50% of Generation Y respondents say mobile banking is somewhat/very important in choosing their bank. (Celent)
Source: mFoundry research
Bank Customers Already Using Mobile
54+% of incoming calls to bank call centers made from mobile phones
Over half of incoming calls relate to basic account inquiries
Celent Predicts: Calls to bank call centers will be displaced by mobile banking
Smart Phone Users Dominate• Device characteristics improve usability
• Data Plans/Usage of other mobile applications
Active Online Banking User
Consumer Profile- Commuter, Shopper, Traveler
Mobile Banking User Profile
(CTIA)
(Celent)
(Aberdeen Group)
(Visa)
27% 18-24 years old37% 25-34 years old29% 35-44 years old
9
US Market Opportunity• Mobile banking has been successful in Europe and Asia• Similar adoption expected in the US:
Tower Group forecasts 16% adoption by 2012
US Mobile Banking Adoption Forecast Europe Mobile Banking Experience
mill
ions
of u
sers
The Models
Mobile Models
Mobile Model Deployment
• Available from any mobile device with Secure Sockets Layer (SSL) Internet access
• Streamlined Internet banking functions designed for mobile browser access– Balances– History– Transfers– Alerts– Bill Pay
Research In Motion, the RIM logo, BlackBerry, the BlackBerry logo and SureType are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries – these and other marks of Research In Motion Limited are used under license
WAP Model
Push Account Alerts
SMS Model
Pull Account Information
45%
35%
35%
33%
33%
32%
29%
24%
14%
9%
8%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Any unusual transaction that you specify (overseas transfer, large w ithdrawal)
Notification when a bill is due or has been paid
Changes to personal information (password, phone number, email and physical addresses)
Confirmation of a deposit
Notification when balances fall below a pre-set level
Change in credit rating
Notification when an account has been accessed online
Notification of transfers from or to account
Notification of application of credit
Addition or subtraction of registered users
Notification when dormant account is activated
Other, please specify
March 2007; n = 1,972Base: Online bankers
© 2007 Javelin Strategy & Research
Q21: If you were given the ability to receive alert messages on your immediate financial status, which of the following would be of value to you? (Select up to three)
Fraud-related alertsFinancial management alertsBoth
Mobile AlertsPerceived value of mobile alerts
Source: Javelin Strategy & Research, March 2007
Both
Financial management alerts
Fraud-related alerts
Download Application from institution’s website
Account Information View Balance View/Search Transactions
Transfers Bill payment One Time PIN for high risk
transactions Find a branch/ATM Virtual wallet (future)
Application Model
Download Application from institution’s website
Account Information View Balance View/Search Transactions
Transfers Bill payment One Time PIN for high risk
transactions Find a branch/ATM Virtual wallet (future)
Application Model
Mobile Vendors
VENDOR EXPERIENCE RANGES FROM 8 YEARS TO 6 MONTHS
Source: Company data as of November 2008, Aite Group
Mobile Models by Vendor
TEXT MESSAGING IS THE MOST COMMON COMPONENT OF MOBILE BANKING SOLUTIONS
Source: Company data as of November 2008, Aite Group
The Future of Mobile
The Future of MobileTrends
• IFM 2-way SMS Alerts• P2P Payments• Mobile Commerce/Virtual Wallet• Mobile Marketing
Mobile Alerts – Next Phase
• Interactive Financial Messaging (IFM)– Two way SMS alerts– Fraud Prevention tool– Out of Band
Authentication– Bill Pay, Cash
Management transaction approval
Mobile Alerts
Person to Person (P2P) Payments
Person-to-person transferspermit consumers to
conduct financial transactionswith their most trusted
relationships, friends and family.
Mobile Commerce TrendsFive trends are enabling mobile commerce to evolve
Technology for delivering data over a
wireless network has become sophisticated
Near field communications has become the
standard for payments
Consumers are viewing their
mobile device as more than a phone
Contactless POS readers and cards
are poised for critical mass
Mobile phone ownership is high
TrendsTrends
500K retail locations enabled
by 2008
Evolution of 3G networks enables
mCommerce
92% of adults use a mobile phone
84% of handsets are Internet ready
As opposed to bar code, Bluetooth,
etc.
Mobile Commerce: The Consumer View• Convenience
– Access to account information and funds via handset– According to Gartner, mobile banking can appeal to
customers whose lifestyles or occupations keep them away from the computer
• Speed– Faster checkout
• Value– Reduce the number of items a consumer must carry– Handset now replaces the wallet
• Security– McAfee finds that 72% of mobile consumers are
concerned about security1
– Mobile handset can provided added security features
1Mobile Payments World, Feb ’08,
Wireless Users
The Consumer Experience
1 2
The consumer can register their card
online and can enroll for automated reload
Consumer has a mobile device with an NFC chip,
enroll for the mobile wallet, and stores the partner card in their wallet or at home for
safe-keeping
Consumer uses the personal device with
the NFC chip to make purchases or reload at
a retail location
3
Mobile Marketing:
mMarketing may consist of a consumer choosing to receive a promotion while they are at the POS, in the subway, anywhere….
Mobile user taps phone to smart poster
to acquire coupon
Smart poster in the subway station
Text message (with permission) with offer
Taps phone
OfferReceived
OnMobilePhone
YOUR PHONE
The Future of Mobile CommerceEncompasses banking, payments, and marketing activities conducted over a mobile device
Mobile Banking and Account Services
Mobile Payments
Mobile Marketing
Balance inquiries, transaction history,
intra-account funds transfer, bill pay, etc.
Advertising, location-based promotions, loyalty, rewards, CRM, etc.
Purchase of goods or services remotely, via remittances or at the POS
using a mobile device
Lays the foundation of consumer acceptance
Improves business models,
convenience and secure solutions
Tightens FI and merchant
connections to their customers
The Mobile OpportunityWhat Customers Want
Help me stay in control of my
finances!
Keep it Secure!Keep it Secure!
Must be easy to use!
Must be easy to use!
I need low balance alerts and the ability to transfer money
The Mobile Opportunity What Customers Want
Can I afford it?
What is my Balance?
Have I been paid?
Questions?