1. BANKING INNOVATIONS
Customers today can use their mobile
devices to gain instant access to news,
mail, photos, taxi services and more.
They expect the same degree of access
and convenience in banking—without
sacrificing safety. This expectation is
fundamentally transforming banking—
from branch functions to payments,
to lending and data deployment.
CONSUMERS EXPECT INSTANT AND
MOBILE ACCESS TO EVERYTHING
Customers want to track their investment portfolios
and make investment decisions on their mobile device.
INVESTMENTS
BANKING: WHAT CONSUMERS WANT
MAIL WEATHERNEWS
MUSIC MAPSCAMERA
Customers crave tools to help them manage budgets and
meet goals. An Accenture survey found that:
EASY CASH MANAGEMENT
EXAMPLES:
MINT automatically tracks spending and helps create budgets
› more than 10 million users
› consumer accounts at 1,800 financial institutions
MOVEN is a debit account that tracks your money and
offers “safe to spend” advice
50%
46%
67%
of bank customers and
of millennial bank customers want banks
to provide budgeting tools.
say their bank should proactively analyze their
spending and provide feedback.
APPLE retail stores account for 11.7%
of sales, but are still important because they:
Branches allow banks to connect with customers.
BRANCHES STILL MATTER
› PROMOTE the brand’s image
› PROVIDE live customer support if
something goes wrong
11.7%
There is a clear and growing demand for mobile banking services.
of mobile deposit users use it at least once a month
growth in 2013 for SIMPLE users, an
online-and-mobile-only “bank”
of PNC customers are primarily non-branched
MOBILE BANKING ON THE RISE
80%
47%
330%
HOW DO BANKS OFFER THE INSTANT AND MOBILE SERVICES CUSTOMERS WANT?
2. POINT OF SALE PEER-TO-PEER
TRANSACTIONS
APPLE PAY
contactless mobile payments via
phone/watch
1 MILLION
CARDS registered in first 72 hours
VENMO
allows instant money transfers between
mobile devices
$194 MILLION
IN PAYMENTS IN 2013
POPMONEY
vendor product allowing direct P2P transfers
from one bank to another
1,400+
FINANCIAL INSTITUTIONS
have integrated Popmoney into their
internal systems
NEW PAYMENTS SYSTEMS OFFER CUSTOMERS FASTER AND MORE CONVENIENT TRANSACTIONS
FASTER, EASIER PAYMENTS
47%
of retail Point of Sale terminals will be updated
with new technology by the end of 2015
SQUARE
› allows businesses to read a credit
card from a phone/tablet
› offers businesses customer
analytics of payments data
$30 BILLION
IN PAYMENTS PER YEAR
LENDERS ARE OFFERING ONLINE PRODUCTS THAT PROVIDE FAST ACCESS TO ALTERNATIVE LOANS
ALTERNATIVE LENDING GAINS TRACTION
NON-TRADITIONAL
CREDIT DATA
PAYMENTS-BASED LENDING
PEER-TO-PEER LENDING
EXAMPLES:
Kabbage is the the fastest growing company in small
business finance history.
Karrot uses non-traditional account data to assess
a loan applicant’s creditworthiness.
EXAMPLE:
SQUARE CAPITAL, a division of Square,
offers small businesses advances which are paid
back by taking a portion of their payments
10,000
MERCHANTS
used the program in the first two months
EXAMPLE:
LENDING CLUB connects borrowers and investors
$2.7 BILLION
IN OUTSTANDING CONSUMER LOANS
LARGER PORTFOLIO THAN OVER
97% OF THE BANKING INDUSTRY
They analyze and make credit decisions
IN UNDER
7 MINUTES
When a loan is approved,
UP TO
$100,000
is immediately deposited in the customer’s account
BUSINESS LOANS
› bank account cash flows
› shipping account
› website page views
› PayPal payments
CONSUMER LOANS
› bank account cash flow
› income
› credit card balances
