BANKING IN THE FUTURE Dr. Juan Juan Distinguished Technologist Iberia sub region CT HP Enterprise Services E-Banking Summit 2012 March 6th, Budapest 1 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING CATHEGORIES NOT CHANGING BUT… – Retail – Private – Corporate 2 • Big corporations • Small & Medium companies © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CUSTOMER PROFILES AND RELATION REQUIREMENTS ARE CHANGING – Consumer as a customer – Private banking customer, but still a consumer – Professional as a customer, but still a consumer (Prosumer) Latest user device technology (UI) and user advantages required/expected in all profile interactivity. Mobility and 24x7 access to full service is/will be a must Bank of one will be a must Is the IT/IS of our banks ready? 3 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 QUOTE FROM “THE MCKINSEY QUARTERLY” – The “emerging affluent” segment—young, educated, and consumption-oriented urban professionals—could account for up to a third of all retail-banking revenues in the coming three to five years: • They are tech savvy, preferring online-banking and smartphone applications; reluctant users of branches; and price conscious and service oriented. (February 2012, Miklós Dietz, Ádám Homonnay, and Irene Shvakman) 4 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 TRENDS IN RETAIL BANKING – Regulation / Compliance • IFRS9, Basel III – Demographic change • “Millenials”, Social Media – Change in consumer behavior • Customers take over control, “ROPO” & ”ROPO + Pay Mobile“ – New entrants into Banking “market“ • Telco‘s (Vodafone), Google, PayPal and Retailer (Tesco etc) – New technologies • 5 iPads, Social Media, “e-Money“, NFC © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 IS THE BANKING FUNCTION READY FOR THE INTERACTION? Móvil Permanent banking function: Consumer Smartphone •Shopping •Business •Leisure •Day to day live Web Corporate •Secure payments Prosumer •Trust in relation ATM Other Channels 6 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 MOBILITY 7 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CAIXAMOBIL STORE & PUNTS ESTRELLA MOBILITY & CLIENT RETENTION IN THE 21ST CENTURY Full blown apps banking suite for iOS, BlackBerry, Android, N okia, W indows Mobile 8 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Gain & spend „ Estrella Points“ with every transaction www.youtube.com/ watch?v=XTF0YkMLS4g 06/03/2012 “READY TO ACCESS” “CUSTOMER SERVICE” WITH AND BY TWITTER 9 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BARCLAYS’ PICCADILLY 10 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING 2.0: WILL EBAY, GOOGLE AND VODAFONE BE THE NEXT LEADERS IN RETAIL BANKING ? 11 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 NEW ENTRANTS – TELCO & RETAIL • Credit card • Payment through phone bill • Insurance • Credit cards • Loans • Savings 12 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 WHAT ARE BANKS DOING / NEED TO DO NEXT? –Track behaviour –Correlate with transaction –Understand –Predict and influence –Adjust risk exposure "Our top business challenges are optimizing customer relationships, optimizing financial functions, Reducing business risk and ensuring regulatory compliance. Our prioritization is around our customer and then revenue / profits." C Level Executive Continuously Listen and Analyze 13 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 THE ESSENCE OF SOCIAL INTELLIGENCE Listen Understand Engage How can Banks improve the dialogue with their customers? 14 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CAN THE BANKS USE SOCIAL AVAILABLE DATA? – How do we engage in social networks as trusted friend? – How do we acquire social unstructured content? – How do understand social media content? – How do we correlate social media content with bank’s operational data? 15 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CUSTOMERS WILL SHARE DATA FOR BENEFIT A day in the life of Mary 100 BP 50 BP 50 BP 250 eBP 100 BP 500 BP 100 BP 300 eBP 16 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 SHOPPING COMMUNITY 17 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BENEFITS FOR THE BANK – Understand customers‘ buying pattern – Sole source for integrated banking services – High customer retention – Actively engage to sell new services – Marketing and upselling through consumers‘ communities – Strong brand recognition 18 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 ADDITIONAL NEEDS ON TOP OF CORE BANKING DATA Driving Analysis Business Analysis by the business executives. Employee Knowledge Sentiment Analysis collected from employee feedback in the Internal Social Media. Business Business enhancement Intelligence pattern analysis for event detection on customer behavior. Personalization Client knowledge Client profile enrichment for loyalty purposes. One-to-One Marketing management. Automation on creation of customer business proposals. Business opportunity identification. Brand perception and event predictive analysis from Social Media BIG DATA (Sandbox metaphor) (Unstructured data) & (Structured data) External Web Content External Social Media (Unstructured Information) Internal Digital Content Operational Systems Internal Social Media (Product & customer Applications) (Unstructured Information) (Structured Information) BUSINESS SERVICES CORE BANKING OPERATIONS EXTERNAL INTERFACES 19 ENTERPRISE SYSTEMS INFORMATION MANAGEMENT & DATA SERVICES © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice CORPORATE WEALTH MANAGEMENT RETAIL TRADING RISK MANAGEMENT & COMPLIANCE TREASURY & CASH MANAGEMENT 06/03/2012