ING Belgium: Setting the standard,
now and in the future
Mr. Lieven Haesaert, General Manager Direct Channels, ING Belgium
Dr. Ian Pearson, Futurologist, Futurizon
Mobile banking press event
November 26th, 2014
I
The state of mobile banking
- an ING view -
Lieven Haesaert, General Manager Direct Channels
Customers want to manage their
money in an easy way, anytime,
anywhere.
Banking is a primary reason to use the internet
80 %
of all Belgians
connects at least
once a week to the
internet… while the
European average is
72%1.
1.
58 % vs. 47 %
of all Belgians uses
the internet to do
online banking…
while the European
average is 42%1.
Source: FOD Economie (2014). Barometer van de informatiemaatschappij.
of all Belgians uses
the internet to
communicate on
social networks…
while the European
average is 43%1.
4
Smart mobile devices are now widely adopted…
Share of Belgians owning
smartphones and tablets1
Share of Belgians intending to purchase
a smartphone or tablet1
38%
21%
19%
20%
Feb ‘14
Dec ‘12
17%
46%
13%
30%
0%
10%
 24%
1.
20%
30%
40%
50%
0%
10%
20%
30%
40%
50%
of Belgians owns both a smartphone and a tablet
GfK: Multi Screen & Mobility Survey (February 2014)
5
… and so is mobile banking
27% of Belgian internet users
uses mobile banking1
Including both
men and women1
30%
24%
0%
20%
40%
60%
27%
Including all age
groups1
18-24y
30%
25-34y
37%
35-44y
32%
45-54y
55+ y
0%
1.
ING International Study (May 2014). Financial empowerment in the Digital Age.
24%
20%
20%
40%
60%
6
The mobile app has become the most frequented online
channel
Online banking sessions on PC, smartphone and tablet1
(Q1 2011 – Q3 2014)
Number of online banking sessions
57%
Q1
Q2
Q3
2011
1.
Source: ING Belgium.
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
7
Customers log in almost every day on their smartphone
Average number of logins per week1
(average week for an active user)
1 to 2 times
2 to 3 times
>5 times
0
1.
Source: ING Belgium.
1
2
3
4
5
6
7
8
Tablet banking has created a new banking moment
ING online banking usage throughout the day
1.
Source: ING Belgium.
23:00
22:00
21:00
20:00
19:00
18:00
17:00
16:00
15:00
14:00
13:00
12:00
11:00
10:00
9:00
8:00
7:00
6:00
5:00
4:00
3:00
2:00
1:00
0:00
Normalized number of visits
(weekdays, relative distribution per channel)
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Mobile banking everywhere
Share of sessions from
abroad in an average week1
Where do Belgians log in the
most when abroad1?
(October 2014)
(summer period 2014)
5%
10%
6%
11%
1.
Source: ING Belgium.
October
Summer
October
Summer
1
France
2
The Netherlands
3
Spain
4
Morocco
5
Turkey
1
France
2
Spain
3
The Netherlands
4
Italy
5
USA
10
For mobile bankers, contact with the branch stays as
important…
Which of the following types of banking do
you use and how often…1
1.
ING International Study (May 2014). Financial empowerment in the Digital Age.
11
… and they are very eager to give feedback
« J'adore l'application sur tablette ! Bravo !
Mais ça serait intéressant de pouvoir modifier
les types d'achats dans 'Mon budget'. Par
exemple: j'ai été acheté quelques bricoles dans
une épicerie et ça me dans 'Divers'. Quand je
vais dans une enseigne alimentaire bien connu,
ça met logiquement dans 'Famille' »
“App werkt zeer goed. Zeer
gebruiksvriendelijk en overzichtelijk.
Heel eenvoudig en in 'no time' te
installeren. Prima ! Bedankt !”
- M.S. (3/05/2014 )
- P.P.(10/07/2014 )
« Bravo!! Outil très intelligent et facile d
utilisation. Meilleur gestion du budget et
meilleur vue sur la gestion au quotidien.
Vraiment bravo! »
Bien, mais dommage qu'il ne soit pas possible
d'avoir accès aux investissements
- B.N. 02/11/2014
- R.D. (21/08/2014 )
> 5.000 feedbacks received in the last 6 months
= key input for the evolution of our channels
•
Source: ING Belgium; Feedback given through the feedback form on the tablet app.
12
Our customers ask for easy and
relevant banking solutions.
2014: More functionalities, still easy to use…
2011
2014
14
… confirmed by our ‘Customer Effort Scores’
“Easiness” of ING Direct Channels
(Customer Survey 2014, ING Belgium)
92%
Total sample
(n = 449)
89%
Total sample
(n = 668)
78%
Total sample
(n = 539)
•
Top 2 = sum of respondents who answered “very easy” or “rather easy”. Customer effort score correlates with NPS and Satisfaction score
15
Almost 1 in 2 simple products bought online
•
Source: ING Belgium.
16
An increasing product offering on mobile …
Savings
accounts
(Lion Deposit &
Lion Premium)
Travel
insurance
Credit Card
Current
account
(Lion Assistance)
(Visa Classic)
(Lion Account)
Make An
Appointment
17
… and launching a new one
Coming soon: Subscribe to an ING pension savings plan on mobile in 3 clicks
1
2
3
18
Anywhere, also for our business customers
1
Coming soon:
“Second signature” on mobile
2
3
4
Robert Schumann
R.S. Architecture
R.S. Architecture
Robert Schumann
19
What customers value most in mobile banking
Since using mobile banking …1
Customers want intelligent tools for
money management1
63% of respondents keep a
household budget.1
41% of mobile bankers would use
automatic categorisation of their
spend on clothes, meals out, etc.1
1.
ING International Study (May 2014). Financial empowerment in the Digital Age.
20
Therefore we launched the budget module in the tablet app
21
More than 750.000 downloads
“In terms of iPad app developments ING (BE)
stands out as one of the fresher
examples of added PFM functionality over
the last 12 months. 1”
Overview of average ratings in the App Store &
Google Play Store since the launch of our apps2
(iOS & Android consolidated)
- MAPA independent global research
Our Smartbanking apps have been downloaded
more than
750.000 times
since the
launch in June 2011 2.
1.
2.
PFM Insight Series: Edition 4, MAPA research, June 2014, the Financial Brand June 2014
Source: ING Belgium.
22
Dr Ian Pearson
Future of mobile banking
twitter.com/timeguide
www.futurizon.com
timeguide.wordpress.com
Part 1: short term trends
• Always on – coverage, data rate, battery life, ease of use
• Instant gratification – what you want, where you are, now
• Eurostat: Half of EU internet access is via mobiles
• Originally phone, email, social nets, news, reading, games, music
• Now photos, searching, ordering, payment, ticketing, fulfilment
• Services are becoming commoditised
• Many users own phones, tablets and laptops, need common feel
• Users now assume suppliers know their location & preferences
• and assume they can pay and ticket using mobile
• Need more personalised experience to differentiate
Mobiles cover every area of the
modern lifestyle. So must payments.
Better mobile nets,
devices and apps
lead people to lead
a more mobile
anything/anywhere
lifestyle.
Globally, 50% use mobiles
Virtuous circle for app, web &
enterprise development
Ease of use
Easy & secure
authentication
& payments
Ubiquity
More willing
entrepreneurs
Higher
High speed
market
data &
Improving OS, visibility
location
interfaces &
displays
Result: growing use and richer lifestyles
Reorganisation and restructuring
Much wider variety of ad-hoc business
models with more freelancers, coops and
virtual companies, each with custom apps
and structures but all needing payments.
As new and unfamiliar organisations grow quickly, and as people
use their mobiles for more and more things, trust in the
underlying authentication and payments systems becomes more
important. Having a proven record is essential to success.
Trust-based services
Payments
Security Context/
Location
Certification
Identity
management
Privacy/
Smart filters
Services
Virtual
companies
Augmented
reality
Custom overlays
Reputation &
Recommendations
Sensor nets
Interfaces
Brand assurance
Trust is the most essential ingredient for successful business
IT Converging with other sectors
via Internet of Things
Thin, flexible &
cheap displays
Retail
Phones
will be scattered
Tracking & tablets
everywhere as
TV
well as assorted
Augmented
visors and all
reality Profiling Visors
Health
Home & the usual
phones and
office
Food Games
Film
tablets
devices
Mags
Cars
E-ink
Clothes
IT will converge with every technology area.
Accelerating lifestyle innovation
Familiarity
Ease of use
Accessibility
Mobiles are the obvious choice for most things most of the time. A virtuous
circle of accessibility, familiarity and ease of use leads to more use and
increased feeling of safety. Biometrics helps all three so may be a big driver.
Banking is main driver for internet use. Managing your money effectively
underpins living to the best of your resources.
Low stress mobile payments
Without stress
Trust yields use
Good design
Peace
Freedom
of Lifestyle
Simple secure apps
Biometrics
Intuitive payments mechanisms
Encryption
Secure Device and Network
People want to manage & spend their money anywhere, any
time, on any device. Having an easy interface with easy
biometric authentication and knowing it is still secure leads to
peace of mind – and greater use!
Death of passwords
•
People can’t remember many tough passwords. Wearable
devices are adding to a range of biometrics to replace
passwords as primary means of authentication
•
Mobiles include near field comms for payments. Mobile is
a security token itself but some now have fingerprint and
face recognition.
•
Wristbands and rings are also being tried
•
Fingerprints, voice, gestures, signatures, iris…
•
Nothing is risk-free so there is always a trade-off between
ease of use and security. Banks have to absorb tech risk.
Sponge nets, ad-hoc nets, fog…
Laptops
Tablets
Smart phones
Wireless links
Display devices
Wireless LAN link
Digital jewellery
to web and
Beacons
between clusters
Street furniture
Custom devices
Smart clothing
Active skin
Direct inter-device networking may soon become an important
alternative internet platform, diversifying choice of network on
the move
AR – Enhancing the real world
 Hi-res, 3D content overlays for
email, leisure, socialisation,
navigation etc
 Dual appearance
– Can blend games or TV or ads
into real world lifestyles
– You can choose how you appear
in the broadcast virtual world
– Everyone can see the world
differently
– Fight off aliens while your partner
chooses an outfit
 Will further increase range of
services that integrate online
payments
II
ING: setting the standard for mobile
banking now and in the future
We are proud of our track record in adopting trends
1985: First Self’Bank
1992: First PC banking platform
2007: First universal direct bank
2011: First mobile banking app
2012: First in-app banking product sales
2013: First budget module on tablet
2014: First Private Banking app
37
TREND 1
From a physical wallet
to a virtual wallet
That virtual wallet will be your ING banking app
Coming soon: pay by mobile
39
TREND 2
From “Easy” to “Easier”
Biometrics offer the solution
Willingness to adopt biometrics for banking1
(UK bank customers, 2014)
100%
90%
80%
79%
70%
60%
52%
50%
40%
33%
30%
30%
29%
27%
Heartbeat
Voice
20%
10%
0%
In favour of
biometrics
instead of
passwords
1.
British survey commissioned by Intelligent Environments, 2014
Fingerprint
Eye
Face
41
Where could fingerprint replace codes?
Interest levels in using fingerprint as alternative to codes1
Fingerprint to unlock screen
61%
Fingerprint to replace all internet
passwords
52%
Fingerprint for credit card purchases
50%
0%
1.
20%
40%
60%
80%
100%
Source: Ericsson Consumer Lab Analytical Platform (2013). Base: 5.000 iPhone/Android smartphone users in 10 major cities (worldwide), who use internet daily
42
Fingerprint instead of codes
1
2
44
1985: First Self’Bank
1992: First PC banking platform
2007: First universal direct bank
2011: First mobile banking app
2012: First in-app banking product sales
2013: First budget module on tablet
2014: First Private Banking app
2014: First Belgian bank to implement biometrics on mobile
45
Part 2: 5 year view
Miniaturisation: Even smart
watches are only half way there
Social status
Medical
monitoring,
alarms
Communication,
data distribution
Sensing
Networking
Digital image
augmentation
Any
form
Digital bubble
Decoration
Mobile
Tribal signalling
website Identification,
security, payments
Miniaturisation will bring everyday IT down to wearable and jewellery size.
Combinations of devices can monitor and relay a wide variety of data.
Trust in Payments 2020
• 73% worried about password & credit card theft
• Electronic payments will use combinations of
intuitive security mechanisms & biometrics such as
fingerprints or voice recognition
• Social tokens can also enhance trust:
Handshake + voice recognition + gesture – e.g. “here
is €20”. Signal travels between devices via the skin
across handshake, with time, GPS location, both IDs,
voiceprint.
• Friendly, intuitive, no passwords, very secure
The body becomes an IT platform
Epidermis
Wearable layer
Membrane layer
Ink layer
Mid-term layer
Permanent layer Skin
Dermis
Skin-based electronics can link blood
chemistry and nerve signals to
external computers and systems
49
Active skin progress so far
Seoul National
University A flexible electronic
skin patch has strain
gauges to measure
tremors, and heating
elements to release
drugs held inside
nanoparticles
Epidermal Electronic
System, US, China,
Singapore team
Once basic sensors become available, there will be rush for software to interpret
and use the data. Main market is medicine but IT interfacing and virtual biometrics
will also feature.
Different situations, same care
Personal
Friendly
Context aware
Any provider can provide increasingly commoditised services.
Differentiation in an age of advancing AI will come from
having people who know and understand the customer, what
they need in this situation, and how best to make it happen.
IoT 2020: Getting the Context
Clouds, tags, mobiles and sensor networks
Comms
Store
Processing
Sensor
Sensor
Store
Sensor
Tag
Tag
Display
Tag
Processing
Display
Comms
Tag
Store
Sensor
Sensor
Comms
Tag
Sensor
Processing
Environment will be full of
processors, tags, data
stores, sensors, displays
& communicators. Self
organising to produce
massive raw ground-up
data pools with their own
intelligence. Big data will
be replaced by biomimetic
smart systems.
Creates ‘digital air’ context
and AI channel between
Store customer and suppliers
Keeping customers on board
Satisfy
and
develop
Create
awareness
People will only buy
what they want, but
they don’t know what
they want till they are
shown it!
Use social nets
to monitor and
cultivate
customer trust
Look for
new demands
Grow
markets
Tapping needs
Developing
expectations
Basic technology development
Care economy businesses
Value of
Community &
Personal
contact
Value of
physical/
intellectual
Work as AI
develops
time
More face to face interaction, needing emotional and ‘human’ skills
Trust will be a very key factor and requires better integration
Companies need to work more closely with individuals & community
Sector winners and losers
Centralised manufacturing
High Street shops
Knowledge based jobs
Bricklaying/plumbing etc
Administration
Machine operation
Traditional Companies
Advisors
Transaction processors
IT Departments
Green energy production
Custom manufacturing
Try-on outlets
Human skill based jobs
Personal services
Lifestyle support services
Caring
Entertainment, sport, arts
Law
Modular prefab construction
Virtual world design
Advice/Counselling
Freelancing
Social organisations
Health care
Regulation
Survival priorities
Trustworthiness
Brand integrity
Business diversity
Social responsibility
Foresight
Think clouds
Bravery
Agility & adaptability
Think virtual
Focus on being human
Thank you
idpearson@gmail.com
www.futurizon.com
twitter.com/timeguide
timeguide.wordpress.com
Thank you for your attention,
we welcome your questions
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