The document discusses key trends in mobile banking and benchmarks for innovation in Europe and the rest of the world (ROW). It covers how some banks have made mobile a standalone channel or distribution channel, focusing on account access, payments, loans, and driving broader digital strategies. Specific examples highlighted include La Caixa making mobile a full channel in Europe, Akbank distributing loans via mobile banners, and Wells Fargo using mobile as a standalone channel in the ROW. The document analyzes how mobile banking is evolving from early notification services to a critical part of digital transformation.

1. Next
Genera*on
Mobile
Banking
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2. Agenda
• Key Trends in Mobile
• Benchmarks for Mobile Banking – Europe
• Benchmarks for Mobile Banking – ROW
• Channel Growth Considerations
©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

3. Key
Trends
in
Mobile
©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

4. Key Trends in Mobile Banking
• La Caixa
http://www.youtube.com/watch?v=Gf5Qa89QAI8
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5. Mobile
banking
dates
back
to
2001
2001
2002
Aug
2001
Apr
2002
Feb
2001
SEB
(Estonia)
La
Caixa
launches
HSBC
launches
SMS
launches
P2P
GPRS-­‐based
payments
using
mobile
internet
alerts
and
no*fica*ons
SMS
banking
Dec
2002
Santander
and
Jan
2002
BBVA
launch
Mar
2001
Nordea
launch
Mobipay
Bankinter
“always
on”
payments
scheme
launches
SMS
mobile
banking
in
in
Spain
alerts
and
Finland
no*fica*ons
5

6. Mobile
banking
1.0
primarily
focused
on
extending
OLB
Mobile
• No*fica*ons
and
alerts
banking
• Account
management
1.0
• SMS-­‐based
payments
6

7. Key
trends
in
mobile:
From
mobile
banking
1.0
to
next-­‐
genera*on
Mobile
Distribu*on
Payment
banking
1.0
channel
method
Mobile
Standalone
Standalone
driving
channel
business
digital
strategy
7

8. Challenges
driving
this
mobile
banking
evolu*on
Technology
Customer
Regula*on
behavior
Growing
pressure
on
OPEX
and
margins
Mobile
centric
innova*on
focused
on
differen*a*ng
services
8

9. Benchmarks
for
Innova*on
-­‐
Europe
©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

10. Mobile
as
a
standalone
channel-­‐
La
Caixa
10

11. Mobile
as
a
standalone
channel-­‐
La
Caixa
11

12. Mobile
as
a
standalone
channel-­‐
Akbank
• SMS
and
Mobile
internet
managed
with
their
own
P&L,
and
embedded
within
a
more
tradi*onal
channel
structure
• SMS
branch
genera*ng
over
$1
million/month
through
service
fees,
transac*on
fees,
and
mobile
specific
products
• Mobile
internet
mone*zed
through
efficiency
gains;
low
value
transac*ons
migrated
from
more
expensive
channels
12

13. Mobile as a distribution channel- Danske Bank
• Smartphone
prolifera*on
has
driven
adop*on
to
point
where
it
is
now
considered
a
“full
blown
channel”
• Currently
broadening
depth
and
reach
of
mobile
services
to
include
instant
loans
and
mobile
brokerage
• Features
enhancement
focused
on
introducing
biometrics
and
CRM-­‐driven
offers
13 ©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

14. Mobile
as
a
distribu*on
channel-­‐
Akbank
• Akbank
began
distribu*ng
loans
on
mobile
telephones
in
2005
through
their
WAP
portal
• Distribu*on
has
evolved
to
include
smartphone
apps,
SMS
and
banner
ads
at
non-­‐bank
mobile
internet
proper*es
and
applica*ons
• Garan*Bank
and
YapiCredi,
among
others,
responded
by
incorpora*ng
similar
features
to
their
mobile
banking
service
14

15. Mobile
as
a
distribu*on
channel-­‐
Bankinter
• Relevant,
contextual
offers
pushed
to
the
mobile
phone
through
messaging
pladorm,
triggered
by
credit
card/debit
card
purchases
• ≈
3%
opt-­‐in
rate
for
most
successful
offers,
at
a
significantly
lower
distribu*on
cost
than
tradi*onal
channels
• Most
successful
with
low
value,
high
margin
products
such
as
consumer
finance,
travel
insurance,
etc.
15

16. Mobile
as
a
standalone
business-­‐
Bankinter
• Bankinter
partnered
with
KPN
in
2007
to
distribute
SIM-­‐cards
under
a
branded
reseller
agreement
• ≈10%
of
addressable
market
currently
using
Bankinter
SIM
card
• Ini*al
value
proposi*on
included
free
SMS
and
mobile
internet
banking
to
s*mulate
channel
adop*on
(3x
greater
among
MVNO
customers)
• Began
pilo*ng
NFC
through
its
own
MVNO
using
a
SIM-­‐based
solu*on
16

17. Mobile
as
a
payment
method-­‐
La
Caixa
• In
2010,
La
Caixa
coordinated
a
SIM-­‐based
NFC
mobile
payment
trial
in
Spain,
enabling
customers
and
merchants
with
proper
infrastructure
• Results
included
+30%
increase
in
transac*ons
and
+23%
in
billing
during
trial
• Next
steps
included
commercial
rollout
which
began
in
May
2011
17

18. Mobile
driving
digital
strategy
• New
business
areas
introduced
to
mobile,
star*ng
with
brokerage
and
business
banking
• Augmented-­‐reality
being
used
for
discovery
• Tablet-­‐specific
sites
and
applica*ons
centered
around
account
management
(PFM-­‐like
features)
• Biometrics
and
security
being
introduced
• SmartTV
applica*ons
prototyped
and
launched
18

19. Mobile
driving
digital
strategy-­‐
Banco
Sabadell
• Currently
at
70%
SMS
and
14%
web
/
app
adop*on
(as
%
of
OLB);
targe*ng
30%
by
YE
2013
• Increase
will
be
primarily
driven
by
broadened
device
reach
and
enhanced
mobile
features
• Device
strategy
now
includes
tablets
and
Windows
Phone
• Broadened
features
with
introduc*on
of
mobile
brokerage
apps
and
RDC
19

20. Benchmarks
for
Innova*on
-­‐
ROW
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21. Mobile as a standalone channel- Wells Fargo
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22. Mobile as a distribution channel- Information
Check
Low
Cleared
Withdrawal
Balance
SallieMae
BMO
Bellco
CU
22 ©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

23. Mobile as a distribution channel- Product delivery
23 ©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

24. Mobile as a distribution channel- CBA
• Commonwealth Bank of Australia offering
Augmented Reality application which helps
users identify properties for sale
• All public information on a specific property
published through the app
• Interested in the property? Apply for a loan with
the push of a button on an app
• Similar initiatives for properties in Spain with
Bankinter; used cars by Huntington Bank in US
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25. Mobile
driving
revenue-­‐
Bank
of
America

26. Mobile as a payment method- US Bank
Enter
recipient’s
Debited
from
Payment
email
address
payor’s
account
received
via
ACH
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27. Mobile Channel Growth Considerations
©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

28. Summary: Key Trends in Mobile
• Extension of OLB à Stand alone channel
• Account access à Distribution of information
à Call-To-Action
• Customer Servicing à Product Distribution
• Cost of Business à Fee Generator, Fee Preservation
• Retail à Cross line of business
• Generic information à Contextual (location, transaction
history, client tier)
• Banking à Payment method
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29. Mobile is Exploding Across All Vectors
• Access
– Device proliferation
– Access Channels
– Enrollment
• Features
– Account Access
– Bill Pay
– Alerts
– Check Deposit
– Enrollment
– CSR / Mgmt Reporting
– P2P Payments
– Mobile Wallet
– NFC
• Bank business lines and customer segments
– Retail
– Credit & Loans
– Consumer Payments
– Marketing
– Fraud
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30. Planning for Mobile Explosion: Our recommendations
• Mobile banking is more than just “Apps”
• Use an enterprise platform
– Facilitate growth of mobile channel
– Manage feature proliferation
• Transaction-based, two-way messaging capability
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31. Questions
• Questions?
• Contact info-
– Twitter: @afontao
– Blog: http://www.mobilefiblog.com/
– Andres.Fontao@clairmail.com
31 ©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.

32. Thank
You
©2011 Clairmail Confidential. Contains Proprietary Information. Not for Distribution.