SlideShare une entreprise Scribd logo
1  sur  14
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/1Copyright The Asian Banker 2010. All rights reserved 1.2.0.082010Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/1
The Asian Banker - Infosys Research
Banks in Asia Pacific continue to increase their
investments in innovation in retail financial services
Banks will intensify the focus on innovation in customer relationship management,
payments and network distribution
For more data and topical analytics please visit www.theasianbanker.com/bankmetrics
Singapore, November 12th, 2010
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/2Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/2
Key discussion notes
 Key innovation periods in retail banking in Asia Pacific
 Key operational building blocks of successful innovative
banks in Asia Pacific
 Does your banks have a (formalised) innovation strategy?
 Areas of potential disruptive innovation affecting retail banking
in Asia Pacific
 Challenges in innovation in retail banking
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/3Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/3
Source: Asian Banker Research
Taiwan
Korea
Product Innovation Sales Innovation Market Share Innovation Customer Service Innovation
PressureonNetInterestMargins
Low
High
Strategy Turning Point
PlanningGap
Indonesia
Bangladesh
Singapore
Australia
Thailand / Malaysia
Hong Kong
India Private Banks
China
Sri Lanka
Vietnam
Philippines
With contracting margins, banks are moving towards
customer centricity and fee-based service delivery
Evolution in retail banking innovation in Asia Pacific
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/4Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/4
• Citibank (Singapore): Introduction of first ATM in Singapore (1980s)
• BRI (Indonesia): Introduction of micro financing as core business in Asia Pacific (1985)
• Citibank (Asia): Introduction of internet banking services and online financial planning site in Asia Pacific
• HSBC &Hang Seng (HK) Piloted the first real-time cash deposit machine in Hong Kong (1993)
• Citibank (Singapore): 1st unsecured revolving overdraft facility in Singapore (mid 1990s)
• Citibank (Asia Pacific): Making available the SET channel for Visa cardholders and merchants in Singapore (1998)
• Citibank (Japan): 1st ATM network with Japan Post and 24 hours availability in Japan(2000)
1980 – 2000
Forming Period
2001-2006
1st Innovation Wave
2007-Today
2nd Innovation Wave
• Japan Net Bank: Introduces internet only banking in Asia Pacific (2001)
• StanChart (Singapore): Roll out of „Mortgage One‟ (2002)
• ICBC (China): First to consolidate 1000 data centres in 1 in China (2002)
• Citibank (Singapore): Introduces an instant cash back features in Singapore(2003)
• E.SUN Bank (Taiwan) Introduces a relationship based mortgage proposition (2004)
• OCBC (Singapore): Introduces mobile phone banking in South East Asia (2005)
• MBF Cards (Malaysia) Roll out of the first „PayWave‟ contactless" card in the world (2004)
• SMBC (Japan): Introduces contactless small value payments, transportation and credit card payments for
mobile phone banking in Asia Pacific (2005)
• ADCB (UAE): Introduces an institution wide loyalty programme in Asia Pacific/EMEA (2007)
• StanChart (Singapore) Introduces as a first in Asia Pacific the „Pay-any-Card‟ service that allows customers to
pay their StandChart bills from any bank regardless of the card issuer (2010)
Innovation Period Bank Name Successful Strategic Innovation in Retail Banking in Asia Pacific
Source: Asian Banker Research
International banking groups have had great impact on the early
development of retail banking in Asia Pacific
Key innovation periods in retail banking in Asia Pacific
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/5Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/5
Teams
Culture of
Innovation
Clear Core
Business
Market
Competition
Internal
Competition
Department
Structure
Processes
Key Building
Blocks of
Successful
Innovative
Banks
•Teams that understand both the business and
technology side of banking
•Teams that are together for more than 10 years
Culture of testing and learning
Clear understanding about core business
Clear role of executives in customer value delivery
 Open markets that foster stiff competition
 Countries with low net interest margins
Empowerment
 System that encourages healthy competition
Team and individual based incentive systems
Low institutionalisation and flat hierarchies
Short communication paths
 Disciplined innovation processes
 Ability to bring pilots to mainstream market inception
Successful innovation requires banks to align key areas
Key operational building blocks of successful innovative banks in Asia Pacific
Source: Asian Banker Research
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/6Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/6
The crisis had no effects on the level of investment in
innovation in Asia Pacific as banks follow long term planning
strategy
59%
55%
74%
36% 45%
21%
5% 5%
0%
20%
40%
60%
80%
100%
Southeast Asia South Asia North Asia
PercentageofRespondents
Decrease No change Increase
Has your bank changed the level of investment for innovation in 2010?
Source: Asian Banker and Infosys Survey Results
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/7Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/7
Compared to other industries innovation strategies are rare in
Asia Pacific, and innovation happens often on an ad hoc basis
19%
15%
21%
0%
5%
10%
15%
20%
25%
Southeast Asia South Asia North Asia
PercentageofRespondents(%)
Does your banks have a (formalised) innovation strategy?
Source: Asian Banker and Infosys Survey Results
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/8Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/8
However primary goal behind innovation is growth, while
efficiency is rather a supplementary target gaining importance
in times of crisis
87%
80%
89%
0%
20%
40%
60%
80%
100%
Southeast Asia South Asia North Asia
PercentageofRespondents
How important is innovation for growth?
(Respondents ranking importance high or very high)
Source: Asian Banker and Infosys Survey Results
67%
81%
44%
0%
20%
40%
60%
80%
100%
Southeast Asia South Asia North Asia
PercentageofRespondents
How important is innovation for efficiency?
(Respondents ranking importance high or very high)
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/9Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/9
2.6 2.5
2.8
2.6
2.3 2.4
2.9
2.5
2.8 2.7
3.1
2.9
2.4
2.1
2.7
2.4
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
SoutheastAsia South Asia North Asia Asia Pacific
Innovationlevel(1isverylowand5isvery
high)
Products
Operations & Processes
Channels
CustomerRelationship Management(including customerexperience and service)
2.5 2.4 2.9 2.6 INNOVATION
INDEX
While channels and products are seen as the most innovative
areas today …
Self-perceived innovativeness across products, channels, operations and CRM
Source: Asian Banker and Infosys Survey Results
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/10Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/10
16%
14%
26%
31%
27% 27%
24%
28%
27%
29%
31%
30%
0%
10%
20%
30%
SoutheastAsia South Asia North Asia
PercentageofRespondents
Products
Operational Processes
Channels
Customer Relationship Management (including customer experience and service)
… customer relationship management is gaining momentum in
the years to come.
Focus areas of innovation in the next three years
Source: Asian Banker and Infosys Survey Results
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/11Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/11
• Swiped plastic cards will eventually be replaced by “NFC” wireless payment options
at POS terminals.
• Trials with using fingerprint technology have been unsuccessful so far, hence the
mobile phone is seen as the likely successor.
• A specific sector of customers have shown their willingness to pay fees for high-value
services, further encouraging a two-tier branch system.
• This new business model includes moving customers to alternative channels and
charging fees for each and every branch transaction.
Payments
Social media
Branch banking
• First institutions target to go beyond social media's usual purpose as marketing and
customer communication tools.
• Emerging P2P payments trend on social networks are a concern, as is the fear of
further disintermediation. (see box below)
• The mobile phone has the greatest potential to reach out to the unbanked and deliver
value-add services to existing clients.
• Customers have embraced mobile services such as microfinance options, P2P and
P2B payments, e-wallets, and remittances.
• Non-bank players are pushing into the retail financial services space, slowly eating up
market share traditionally dominated by banks.
• This includes P2P payments, lending via loan auction houses, and e-commerce and
e-money services including deposits with non-banks.
Mobile phone
Loyalty and rewards
Disintermediation
• Loyalty programmes will move away from product-bound rewards systems and
towards a relationship-based model
• Each transaction, purchased product or availed service will contribute to the client‟s
standing in the programme.
Source: Asian Banker Research
Areas of potential disruptive innovation affecting retail banking in Asia Pacific
Payments and mobile banking are regarded as potential
disruptive innovation areas
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/12Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/12
Managing employees and particularly the interface between
business and technology people is the key challenge
Southeast Asia South Asia North Asia
1. Managing the interface between
business and IT departments
1. Employees‟ behaviour 1. Managing the interface between
business and IT departments
2. Employees‟ behaviour 2. Managerial attitudes 2. Technology bottlenecks
3. Technology bottlenecks 3. Technology bottlenecks 3. Employees‟ behaviour
4. Managerial attitudes 4. Managing the interface between
business and IT departments
4. Managerial attitudes
5. HR if training and management is
insufficient
5. Lack of adequate technical
expertise
5. HR if training and management is
insufficient
6. Flexibility of IT systems 6. HR if training and management is
insufficient
6. Regulations and compliance
7. Huge level of hierarchy 7. Flexibility of IT systems 7. Flexibility of IT systems
8. Lack of adequate technical
expertise
8. Lack of support from IT vendors 8. Lack of adequate technical
expertise
9. Lack of support from IT vendors 9. Huge level of hierarchy 9. Lack of support from IT vendors
10. Regulations and compliance 10. Regulations and compliance 10. Huge level of hierarchy
Challenges in innovation in retail banking
Source: Asian Banker and Infosys Survey Results
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/13Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/13
Case Study Sample 1: Bank of the Philippine Islands (Philippines) – Building a mobile banking business
Bank of the Philippine Islands (BPI) launched internet-based mobile banking and opened up the mobile channel for
remittances to customers abroad. Also in 2009, BPI launched mobile commerce, a first in the Philippines, where customers
could order products and services and pay via the mobile phone at selected merchant partners.
Mobile phone services were expanded to include micro financing, micro savings and micro insurance to deliver branchless
banking to the hitherto unbanked in the Philippines. By successful identifying customers‟ unique payment and user patterns
on a mobile phone, it was able to improve its product and services offering. When a client enrols one of his accounts in
mobile banking; all his other accounts are automatically enrolled in the facility.
Another innovative feature is the handy bills payment stem with over 300 bills payment options ranging from utilities to clubs
and schools. BPI also rewards clients for their bill payment transactions. The latest innovation of BPI is the partnership with
fast-food giant Jollibee to allow overseas workers to send Jollibee package meals to family members back home. This
feature can be expanded to groceries, rentals, bill payments and transport usage and thus allow remittance senders to gain
control over the usage of their funds.
Case Study Sample 2: Citibank (Taiwan) – Taking a customer-centric approach in credit card management
Taiwan‟s credit card market went through two consecutive turbulent years following the 2006 credit crisis. Just when major
issuers resumed market activities in 2008, the market suffered a second blow when consumer retail sales
contracted as a result of high inflation and the lowest consumer confidence in the previous seven years. The market shrank
by 23% in terms of the number of plastic cards, revolving balances fell by 46% and consumer spending dropped 8%
compared with the beginning of 2006.
Citibank‟s solution was based on understanding customer concerns and focusing on the changing needs of clients. It
introduced a series of new functions at the height of the credit crisis when competitors were focused on controlling their
credit losses. A combination of new market features included 24h turnaround time in credit card issuance, instant SMS
reward redemptions, and a one-call solution approach to improve customer experiences. This enabled a number of best-in-
class achievements, such as leadership in revolving balance, in revenues, and in active cards, which grew from 65% in
Q1‟08 to 80% in July‟10. Sales per Cards in Force (CIF) grew from $161 in 2008 to $217 in July 2010, which is a
considerable 65% higher than the market average.
Case studies display best practice in the industry
Source: Asian Banker and Infosys Research
Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/14Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/14
These slides are part of a full report available for free
download
 The full report contains:
 A comprehensive overview over strategies, organisation, targets, challenges, and
the role of IT
 30 graphs based on survey findings and industry overview
 35 case studies showcasing best practice in innovation
• To download the full report, click here.

Contenu connexe

En vedette

Banking service usage in Thailand
Banking service usage in ThailandBanking service usage in Thailand
Banking service usage in ThailandDI Marketing
 
Adv pub retail_banking_in_asia_pacfic
Adv pub retail_banking_in_asia_pacficAdv pub retail_banking_in_asia_pacfic
Adv pub retail_banking_in_asia_pacficPrayukth K V
 
Top 10 Marketing Tricks for the Banking Industry
Top 10 Marketing Tricks for the Banking IndustryTop 10 Marketing Tricks for the Banking Industry
Top 10 Marketing Tricks for the Banking IndustryPrototype Interactive
 
Big Data in Banking (Data Science Thailand Meetup #2)
Big Data in Banking (Data Science Thailand Meetup #2)Big Data in Banking (Data Science Thailand Meetup #2)
Big Data in Banking (Data Science Thailand Meetup #2)Data Science Thailand
 
Citibank Asia-Pacific Credit Card Case
Citibank Asia-Pacific Credit Card CaseCitibank Asia-Pacific Credit Card Case
Citibank Asia-Pacific Credit Card CaseThan Rassadanukul
 
Challenges for the Future of Retail Banking
Challenges for the Future of Retail BankingChallenges for the Future of Retail Banking
Challenges for the Future of Retail BankingDesignit
 

En vedette (7)

Banking service usage in Thailand
Banking service usage in ThailandBanking service usage in Thailand
Banking service usage in Thailand
 
Adv pub retail_banking_in_asia_pacfic
Adv pub retail_banking_in_asia_pacficAdv pub retail_banking_in_asia_pacfic
Adv pub retail_banking_in_asia_pacfic
 
Top 10 Marketing Tricks for the Banking Industry
Top 10 Marketing Tricks for the Banking IndustryTop 10 Marketing Tricks for the Banking Industry
Top 10 Marketing Tricks for the Banking Industry
 
Citibank group7
Citibank group7Citibank group7
Citibank group7
 
Big Data in Banking (Data Science Thailand Meetup #2)
Big Data in Banking (Data Science Thailand Meetup #2)Big Data in Banking (Data Science Thailand Meetup #2)
Big Data in Banking (Data Science Thailand Meetup #2)
 
Citibank Asia-Pacific Credit Card Case
Citibank Asia-Pacific Credit Card CaseCitibank Asia-Pacific Credit Card Case
Citibank Asia-Pacific Credit Card Case
 
Challenges for the Future of Retail Banking
Challenges for the Future of Retail BankingChallenges for the Future of Retail Banking
Challenges for the Future of Retail Banking
 

Plus de Infosys Finacle

Finacle Webinar – Innovation in Retail Banking 2013
Finacle Webinar – Innovation in Retail Banking 2013Finacle Webinar – Innovation in Retail Banking 2013
Finacle Webinar – Innovation in Retail Banking 2013Infosys Finacle
 
Finacle - Banking & Technology Trends 2013 | Technology Innovations
Finacle - Banking & Technology Trends 2013 | Technology InnovationsFinacle - Banking & Technology Trends 2013 | Technology Innovations
Finacle - Banking & Technology Trends 2013 | Technology InnovationsInfosys Finacle
 
Finacle - New Banking Technology Advancement
Finacle - New Banking Technology Advancement Finacle - New Banking Technology Advancement
Finacle - New Banking Technology Advancement Infosys Finacle
 
Finacle - Bank Customer Service: Click or Dial versus Branch Banking
Finacle - Bank Customer Service: Click or Dial versus Branch BankingFinacle - Bank Customer Service: Click or Dial versus Branch Banking
Finacle - Bank Customer Service: Click or Dial versus Branch BankingInfosys Finacle
 
Finacle - Secure Coding Practices
Finacle - Secure Coding PracticesFinacle - Secure Coding Practices
Finacle - Secure Coding PracticesInfosys Finacle
 
Finacle Digital Commerce
Finacle Digital CommerceFinacle Digital Commerce
Finacle Digital CommerceInfosys Finacle
 
Finacle Thought Paper - Digital Wallet Success Strategy
Finacle Thought Paper - Digital Wallet Success StrategyFinacle Thought Paper - Digital Wallet Success Strategy
Finacle Thought Paper - Digital Wallet Success StrategyInfosys Finacle
 
Finacle - Agency Banking: New Frontiers In Financial Inclusion
Finacle - Agency Banking: New Frontiers In Financial InclusionFinacle - Agency Banking: New Frontiers In Financial Inclusion
Finacle - Agency Banking: New Frontiers In Financial InclusionInfosys Finacle
 
Thought Paper: Overview of Banking Applications
Thought Paper: Overview of Banking ApplicationsThought Paper: Overview of Banking Applications
Thought Paper: Overview of Banking ApplicationsInfosys Finacle
 
Perspective- Multi Channel Banking: A Five Point Strategy
Perspective- Multi Channel Banking: A Five Point Strategy Perspective- Multi Channel Banking: A Five Point Strategy
Perspective- Multi Channel Banking: A Five Point Strategy Infosys Finacle
 
Thought Paper:Four Strategies to Build the Smarter Bank
Thought Paper:Four Strategies to Build the Smarter BankThought Paper:Four Strategies to Build the Smarter Bank
Thought Paper:Four Strategies to Build the Smarter BankInfosys Finacle
 
Perspective: The rise and rise of emerging market banks
Perspective: The rise and rise of emerging market banksPerspective: The rise and rise of emerging market banks
Perspective: The rise and rise of emerging market banksInfosys Finacle
 
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Infosys Finacle
 
Perspective: Auditing norms for pki based applications
Perspective: Auditing norms for pki based applicationsPerspective: Auditing norms for pki based applications
Perspective: Auditing norms for pki based applicationsInfosys Finacle
 
Mobile Banking – A Transformation of Traditional Banking
Mobile Banking – A Transformation of Traditional BankingMobile Banking – A Transformation of Traditional Banking
Mobile Banking – A Transformation of Traditional BankingInfosys Finacle
 
Retail Banking: Making other Channels mobile
Retail Banking: Making other Channels mobileRetail Banking: Making other Channels mobile
Retail Banking: Making other Channels mobileInfosys Finacle
 
Social media and retail banking
Social media and retail bankingSocial media and retail banking
Social media and retail bankingInfosys Finacle
 
International remittances
International remittancesInternational remittances
International remittancesInfosys Finacle
 

Plus de Infosys Finacle (20)

Finacle Webinar – Innovation in Retail Banking 2013
Finacle Webinar – Innovation in Retail Banking 2013Finacle Webinar – Innovation in Retail Banking 2013
Finacle Webinar – Innovation in Retail Banking 2013
 
Finacle - Banking & Technology Trends 2013 | Technology Innovations
Finacle - Banking & Technology Trends 2013 | Technology InnovationsFinacle - Banking & Technology Trends 2013 | Technology Innovations
Finacle - Banking & Technology Trends 2013 | Technology Innovations
 
Finacle - New Banking Technology Advancement
Finacle - New Banking Technology Advancement Finacle - New Banking Technology Advancement
Finacle - New Banking Technology Advancement
 
Finacle - Bank Customer Service: Click or Dial versus Branch Banking
Finacle - Bank Customer Service: Click or Dial versus Branch BankingFinacle - Bank Customer Service: Click or Dial versus Branch Banking
Finacle - Bank Customer Service: Click or Dial versus Branch Banking
 
Finacle - Secure Coding Practices
Finacle - Secure Coding PracticesFinacle - Secure Coding Practices
Finacle - Secure Coding Practices
 
Finacle Digital Commerce
Finacle Digital CommerceFinacle Digital Commerce
Finacle Digital Commerce
 
Finacle Thought Paper - Digital Wallet Success Strategy
Finacle Thought Paper - Digital Wallet Success StrategyFinacle Thought Paper - Digital Wallet Success Strategy
Finacle Thought Paper - Digital Wallet Success Strategy
 
Finacle - Agency Banking: New Frontiers In Financial Inclusion
Finacle - Agency Banking: New Frontiers In Financial InclusionFinacle - Agency Banking: New Frontiers In Financial Inclusion
Finacle - Agency Banking: New Frontiers In Financial Inclusion
 
Thought Paper: Overview of Banking Applications
Thought Paper: Overview of Banking ApplicationsThought Paper: Overview of Banking Applications
Thought Paper: Overview of Banking Applications
 
Perspective- Multi Channel Banking: A Five Point Strategy
Perspective- Multi Channel Banking: A Five Point Strategy Perspective- Multi Channel Banking: A Five Point Strategy
Perspective- Multi Channel Banking: A Five Point Strategy
 
Thought Paper:Four Strategies to Build the Smarter Bank
Thought Paper:Four Strategies to Build the Smarter BankThought Paper:Four Strategies to Build the Smarter Bank
Thought Paper:Four Strategies to Build the Smarter Bank
 
Perspective: The rise and rise of emerging market banks
Perspective: The rise and rise of emerging market banksPerspective: The rise and rise of emerging market banks
Perspective: The rise and rise of emerging market banks
 
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks
Perspective: Needed, A Holistic Approach to Reputation Risk Management in Banks
 
Perspective: Auditing norms for pki based applications
Perspective: Auditing norms for pki based applicationsPerspective: Auditing norms for pki based applications
Perspective: Auditing norms for pki based applications
 
Mobile Banking – A Transformation of Traditional Banking
Mobile Banking – A Transformation of Traditional BankingMobile Banking – A Transformation of Traditional Banking
Mobile Banking – A Transformation of Traditional Banking
 
Retail Banking: Making other Channels mobile
Retail Banking: Making other Channels mobileRetail Banking: Making other Channels mobile
Retail Banking: Making other Channels mobile
 
Social media and retail banking
Social media and retail bankingSocial media and retail banking
Social media and retail banking
 
Branch of the future
Branch of the futureBranch of the future
Branch of the future
 
International remittances
International remittancesInternational remittances
International remittances
 
Agile banking managing
Agile banking managingAgile banking managing
Agile banking managing
 

Dernier

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Scrum Events & How to run them effectively
Scrum Events & How to run them effectivelyScrum Events & How to run them effectively
Scrum Events & How to run them effectivelyMarianna Nakou
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 

Dernier (20)

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Scrum Events & How to run them effectively
Scrum Events & How to run them effectivelyScrum Events & How to run them effectively
Scrum Events & How to run them effectively
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 

Finacle - Innovation in Retail banking Asia Pacific

  • 1. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/1Copyright The Asian Banker 2010. All rights reserved 1.2.0.082010Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/1 The Asian Banker - Infosys Research Banks in Asia Pacific continue to increase their investments in innovation in retail financial services Banks will intensify the focus on innovation in customer relationship management, payments and network distribution For more data and topical analytics please visit www.theasianbanker.com/bankmetrics Singapore, November 12th, 2010
  • 2. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/2Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/2 Key discussion notes  Key innovation periods in retail banking in Asia Pacific  Key operational building blocks of successful innovative banks in Asia Pacific  Does your banks have a (formalised) innovation strategy?  Areas of potential disruptive innovation affecting retail banking in Asia Pacific  Challenges in innovation in retail banking
  • 3. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/3Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/3 Source: Asian Banker Research Taiwan Korea Product Innovation Sales Innovation Market Share Innovation Customer Service Innovation PressureonNetInterestMargins Low High Strategy Turning Point PlanningGap Indonesia Bangladesh Singapore Australia Thailand / Malaysia Hong Kong India Private Banks China Sri Lanka Vietnam Philippines With contracting margins, banks are moving towards customer centricity and fee-based service delivery Evolution in retail banking innovation in Asia Pacific
  • 4. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/4Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/4 • Citibank (Singapore): Introduction of first ATM in Singapore (1980s) • BRI (Indonesia): Introduction of micro financing as core business in Asia Pacific (1985) • Citibank (Asia): Introduction of internet banking services and online financial planning site in Asia Pacific • HSBC &Hang Seng (HK) Piloted the first real-time cash deposit machine in Hong Kong (1993) • Citibank (Singapore): 1st unsecured revolving overdraft facility in Singapore (mid 1990s) • Citibank (Asia Pacific): Making available the SET channel for Visa cardholders and merchants in Singapore (1998) • Citibank (Japan): 1st ATM network with Japan Post and 24 hours availability in Japan(2000) 1980 – 2000 Forming Period 2001-2006 1st Innovation Wave 2007-Today 2nd Innovation Wave • Japan Net Bank: Introduces internet only banking in Asia Pacific (2001) • StanChart (Singapore): Roll out of „Mortgage One‟ (2002) • ICBC (China): First to consolidate 1000 data centres in 1 in China (2002) • Citibank (Singapore): Introduces an instant cash back features in Singapore(2003) • E.SUN Bank (Taiwan) Introduces a relationship based mortgage proposition (2004) • OCBC (Singapore): Introduces mobile phone banking in South East Asia (2005) • MBF Cards (Malaysia) Roll out of the first „PayWave‟ contactless" card in the world (2004) • SMBC (Japan): Introduces contactless small value payments, transportation and credit card payments for mobile phone banking in Asia Pacific (2005) • ADCB (UAE): Introduces an institution wide loyalty programme in Asia Pacific/EMEA (2007) • StanChart (Singapore) Introduces as a first in Asia Pacific the „Pay-any-Card‟ service that allows customers to pay their StandChart bills from any bank regardless of the card issuer (2010) Innovation Period Bank Name Successful Strategic Innovation in Retail Banking in Asia Pacific Source: Asian Banker Research International banking groups have had great impact on the early development of retail banking in Asia Pacific Key innovation periods in retail banking in Asia Pacific
  • 5. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/5Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/5 Teams Culture of Innovation Clear Core Business Market Competition Internal Competition Department Structure Processes Key Building Blocks of Successful Innovative Banks •Teams that understand both the business and technology side of banking •Teams that are together for more than 10 years Culture of testing and learning Clear understanding about core business Clear role of executives in customer value delivery  Open markets that foster stiff competition  Countries with low net interest margins Empowerment  System that encourages healthy competition Team and individual based incentive systems Low institutionalisation and flat hierarchies Short communication paths  Disciplined innovation processes  Ability to bring pilots to mainstream market inception Successful innovation requires banks to align key areas Key operational building blocks of successful innovative banks in Asia Pacific Source: Asian Banker Research
  • 6. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/6Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/6 The crisis had no effects on the level of investment in innovation in Asia Pacific as banks follow long term planning strategy 59% 55% 74% 36% 45% 21% 5% 5% 0% 20% 40% 60% 80% 100% Southeast Asia South Asia North Asia PercentageofRespondents Decrease No change Increase Has your bank changed the level of investment for innovation in 2010? Source: Asian Banker and Infosys Survey Results
  • 7. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/7Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/7 Compared to other industries innovation strategies are rare in Asia Pacific, and innovation happens often on an ad hoc basis 19% 15% 21% 0% 5% 10% 15% 20% 25% Southeast Asia South Asia North Asia PercentageofRespondents(%) Does your banks have a (formalised) innovation strategy? Source: Asian Banker and Infosys Survey Results
  • 8. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/8Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/8 However primary goal behind innovation is growth, while efficiency is rather a supplementary target gaining importance in times of crisis 87% 80% 89% 0% 20% 40% 60% 80% 100% Southeast Asia South Asia North Asia PercentageofRespondents How important is innovation for growth? (Respondents ranking importance high or very high) Source: Asian Banker and Infosys Survey Results 67% 81% 44% 0% 20% 40% 60% 80% 100% Southeast Asia South Asia North Asia PercentageofRespondents How important is innovation for efficiency? (Respondents ranking importance high or very high)
  • 9. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/9Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/9 2.6 2.5 2.8 2.6 2.3 2.4 2.9 2.5 2.8 2.7 3.1 2.9 2.4 2.1 2.7 2.4 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 SoutheastAsia South Asia North Asia Asia Pacific Innovationlevel(1isverylowand5isvery high) Products Operations & Processes Channels CustomerRelationship Management(including customerexperience and service) 2.5 2.4 2.9 2.6 INNOVATION INDEX While channels and products are seen as the most innovative areas today … Self-perceived innovativeness across products, channels, operations and CRM Source: Asian Banker and Infosys Survey Results
  • 10. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/10Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/10 16% 14% 26% 31% 27% 27% 24% 28% 27% 29% 31% 30% 0% 10% 20% 30% SoutheastAsia South Asia North Asia PercentageofRespondents Products Operational Processes Channels Customer Relationship Management (including customer experience and service) … customer relationship management is gaining momentum in the years to come. Focus areas of innovation in the next three years Source: Asian Banker and Infosys Survey Results
  • 11. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/11Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/11 • Swiped plastic cards will eventually be replaced by “NFC” wireless payment options at POS terminals. • Trials with using fingerprint technology have been unsuccessful so far, hence the mobile phone is seen as the likely successor. • A specific sector of customers have shown their willingness to pay fees for high-value services, further encouraging a two-tier branch system. • This new business model includes moving customers to alternative channels and charging fees for each and every branch transaction. Payments Social media Branch banking • First institutions target to go beyond social media's usual purpose as marketing and customer communication tools. • Emerging P2P payments trend on social networks are a concern, as is the fear of further disintermediation. (see box below) • The mobile phone has the greatest potential to reach out to the unbanked and deliver value-add services to existing clients. • Customers have embraced mobile services such as microfinance options, P2P and P2B payments, e-wallets, and remittances. • Non-bank players are pushing into the retail financial services space, slowly eating up market share traditionally dominated by banks. • This includes P2P payments, lending via loan auction houses, and e-commerce and e-money services including deposits with non-banks. Mobile phone Loyalty and rewards Disintermediation • Loyalty programmes will move away from product-bound rewards systems and towards a relationship-based model • Each transaction, purchased product or availed service will contribute to the client‟s standing in the programme. Source: Asian Banker Research Areas of potential disruptive innovation affecting retail banking in Asia Pacific Payments and mobile banking are regarded as potential disruptive innovation areas
  • 12. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/12Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/12 Managing employees and particularly the interface between business and technology people is the key challenge Southeast Asia South Asia North Asia 1. Managing the interface between business and IT departments 1. Employees‟ behaviour 1. Managing the interface between business and IT departments 2. Employees‟ behaviour 2. Managerial attitudes 2. Technology bottlenecks 3. Technology bottlenecks 3. Technology bottlenecks 3. Employees‟ behaviour 4. Managerial attitudes 4. Managing the interface between business and IT departments 4. Managerial attitudes 5. HR if training and management is insufficient 5. Lack of adequate technical expertise 5. HR if training and management is insufficient 6. Flexibility of IT systems 6. HR if training and management is insufficient 6. Regulations and compliance 7. Huge level of hierarchy 7. Flexibility of IT systems 7. Flexibility of IT systems 8. Lack of adequate technical expertise 8. Lack of support from IT vendors 8. Lack of adequate technical expertise 9. Lack of support from IT vendors 9. Huge level of hierarchy 9. Lack of support from IT vendors 10. Regulations and compliance 10. Regulations and compliance 10. Huge level of hierarchy Challenges in innovation in retail banking Source: Asian Banker and Infosys Survey Results
  • 13. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/13Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/13 Case Study Sample 1: Bank of the Philippine Islands (Philippines) – Building a mobile banking business Bank of the Philippine Islands (BPI) launched internet-based mobile banking and opened up the mobile channel for remittances to customers abroad. Also in 2009, BPI launched mobile commerce, a first in the Philippines, where customers could order products and services and pay via the mobile phone at selected merchant partners. Mobile phone services were expanded to include micro financing, micro savings and micro insurance to deliver branchless banking to the hitherto unbanked in the Philippines. By successful identifying customers‟ unique payment and user patterns on a mobile phone, it was able to improve its product and services offering. When a client enrols one of his accounts in mobile banking; all his other accounts are automatically enrolled in the facility. Another innovative feature is the handy bills payment stem with over 300 bills payment options ranging from utilities to clubs and schools. BPI also rewards clients for their bill payment transactions. The latest innovation of BPI is the partnership with fast-food giant Jollibee to allow overseas workers to send Jollibee package meals to family members back home. This feature can be expanded to groceries, rentals, bill payments and transport usage and thus allow remittance senders to gain control over the usage of their funds. Case Study Sample 2: Citibank (Taiwan) – Taking a customer-centric approach in credit card management Taiwan‟s credit card market went through two consecutive turbulent years following the 2006 credit crisis. Just when major issuers resumed market activities in 2008, the market suffered a second blow when consumer retail sales contracted as a result of high inflation and the lowest consumer confidence in the previous seven years. The market shrank by 23% in terms of the number of plastic cards, revolving balances fell by 46% and consumer spending dropped 8% compared with the beginning of 2006. Citibank‟s solution was based on understanding customer concerns and focusing on the changing needs of clients. It introduced a series of new functions at the height of the credit crisis when competitors were focused on controlling their credit losses. A combination of new market features included 24h turnaround time in credit card issuance, instant SMS reward redemptions, and a one-call solution approach to improve customer experiences. This enabled a number of best-in- class achievements, such as leadership in revolving balance, in revenues, and in active cards, which grew from 65% in Q1‟08 to 80% in July‟10. Sales per Cards in Force (CIF) grew from $161 in 2008 to $217 in July 2010, which is a considerable 65% higher than the market average. Case studies display best practice in the industry Source: Asian Banker and Infosys Research
  • 14. Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/14Copyright The Asian Banker and Infosys Technologies Ltd 2010. All rights reserved 1/14 These slides are part of a full report available for free download  The full report contains:  A comprehensive overview over strategies, organisation, targets, challenges, and the role of IT  30 graphs based on survey findings and industry overview  35 case studies showcasing best practice in innovation • To download the full report, click here.