Summary The number of banks in the US and in Germany halved between 1990 and 2012. Traditional banking is under pressure by at least 4 mega trends in banking: Increase of regulation, legacy technology, consolidation and changing customer behaviour. By 2016 the number of Internet capable mobile devices will reach more than 4 billion devices globally and smart phones are already used always and everywhere. The future is always here – it’s just not evenly distributed yet. You can see this if you take a look at digital natives, the usage of phones in Africa, Google wallet and Square. For banks it will become critical to position themselves in the world of customer experience much earlier. The MyPrivateBanking Mobile Applications Report 2011 gives banks on average a score of 35 out of 100 points. Major critiques are “only simple basis services”, “mainly useless information”, “available only for iPhone” and “security issues”. A look at current mobile banking offerings does not disprove the report. They are mainly static, text based and lack of visual experience. But you can think different about mobile banking. Actually you can build native apps for all platforms that are highly dynamic and provide an experience, e.g. by making use of augmented reality technology embedded in customers’ life. Banks may be able to win back the car loan business at the point of sale and embed mobile and tablet technologies in their sales processes. Commonwealth Bank of Australia’s “Kaching” and moven are examples of what can be done.

1. Mobile Banking
– much more than an iPhone App
www.FrankSchwab.de
by Frank Schwab

2. Number of US Banks (1990 to 2012)
Source: FDIC
6.000
7.000
8.000
9.000
10.000
11.000
12.000
13.000
14.000
15.000
16.000
1990 20122000

3. Number of German Banks (1990 to 2012)
Source: Deutsche Bundesbank
1990 20122000
0
5.000
4.000
3.000
1.000
2.000

4. Mega trends in Banking
Increase of
regulatory requirements
Legacy technology
Changing
customer behaviour
Consolidation

5. Traditional Banking

7. 2011 20162012 2013 2014 2015
662 M
4.03 B
Source: Cisco, 2012
Number of internet capable mobile devices

8. 72% Watching TV
Playing
Video Games
Listen to
music
Reading
newspapers
Reading
books
Internet
Smartphones are used always and everywhere
Sources: The Mobile Movement Study, Google/Ipsos OTX MediaCT, Apr 2011
Base: Smartphone Users (5013)
Q. In general, which of the following media-related acOviOes do you do while also using the Internet on your smartphone?

9. “The future is always
here
- it’s just not evenly
distributed yet.”
- William Gibson, Fiction Novelist

10. Digital Natives

11. Mobile payments

13. Square
1 billion US $ in
payments in 2012

14. For banks it will be critical
to position themselves
in the world of customer experience
much earlier

15. Source: MyPrivateBanking – Mobile Applications Report 2011
Mobile Banking: On average banks score 35 out of 100 points
Bank Max score = 100
Deutsche Bank 50
Caisse d´Epargne 50
Bradesco 49
DBS Bank 47
ING Group 47
Citibank 46
Société Générale 46
Uni Credit 45
Banco Bilbao 44
Credit Agricole 44

16. MyPrivateBanking – Mobile Applications Report 2011
Major critique
Only simple basis services Mainly useless information
Available only for iPhone Security issues

17. What can we observe?

18. Account overview
Money transfer
Branch finder
ATM finder
Text based
Static
Lack of visual
experience

19. What can we think of?

20. Dynamic
High visual
experience
Monthly expenses

21. 18 €
53 €
5 €
12 €
17 €
23 €
Augmented reality
Set budget for daily needs
Control your status with your iPhone

23. Traditional banks may try to win back the
car loan business at the point of sale
Car Dealer
Location based service

26. Best Practice: Commonwealth Bank of Australia

28. moven is betting BIG on a mobile future for banking
http://www.moven.com

29. Frank@FrankSchwab.de
Do you want to learn more?
http://www.FrankSchwab.de