e-channels in banking

February 2015

ELECTRONIC CHANNELS IN BANKING Nikolay Spasov Business & Project Development Manager Alpha Bank Bulgaria

Overview: Web & Banking or how web world in banking has progressed in decade plus time...

•  Static website •  Alternative publishing means •  Constrained budgets •  Every technocrats wish list

Pre Y2k

•  Reactive websites •  Web as a add-on revenue model

2000-2004

•  Interactive web portals •  Web as a Brand nurturing channel

2005-2007

•  CRM / SCM Integration •  Usability best practice integrated •  Social interactivity web 2.0 initiated •  Multi-channel Deployed

2007-2013

•  Customer experience framework •  Multi-technology stack •  Virtual world incorporated •  Channel Agnostic coverage

2014 +

2 Source: TATA Consultancy Service - Internet Banking Channel, A Case For Comprehensive Usage

Overview: Evolution of Channels in Banking or the way to transfer traditional banking in new era...

3 Source: A Market Leader in Ovum's Decision Matrix – Digital Banking Trends in 2014 – Webinar Recap

SINGLE CHANNEL

Customer and bank have a single

touch point

BRANCH

CUSTOMER

MULTI - CHANNEL

CUSTOMERS

Customer sees brand through multiple touch points

with bank using siloed communications

BRANCH WEB ADS

CUSTOMER

CROSS - CHANNEL

BRANCH WEB ADS

Customer sees unified brand through many touch points.

Bank has single customer view

OMNI - CHANNEL

CUSTOMER

ADS MOBILE WEB BRANCH

Customer has holistic brand experience.

Bank leverages unified view of customer

Overview: Digital Era & Banking where the focus is going...

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Branch-generated revenue growth is becoming more challenging

Transactions processing and customer service are becoming increasingly independent of the branch channel

Customer demographics are shifting, making Generation Y and ethnic groups vitally important.

YNew technologies are gaining widespread adoption, allowing customer relationship management to become channel independent.

WEB MOBILE

Source: Evolving Models of Retail Banking Distribution – Deloitte Center for Banking Solutions

e-Banking Definition

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The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels Internet banking (or E-banking) means any user with a personal computer and/or other mobile device and a browser can get connected to her/his bank’s website to perform any of the virtual banking functions

“

”

Source: Deloitte Center for Banking Solutions

e-Banking History

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how it all started...

Since the early 1980s banks are constantly pursuing innovations

First internet banking is brought to Nottingham

Building Society by Bank of Scotland - HOMELINK

Online banking is built into Microsoft Money software.

More than 100 000 households being accessing

bank accounts online

Stanford Credit Union creates the firs online

banking website

Source: Online Banking Report – Dec 2013

e-Banking History

7

how it all started...

19 million US households are accessing bank

accounts online

Yodlee creates the first account aggregation

software

Rules & regulations for remote authentication and

account access

Direct banks begin to offer online service

Personal finance platforms gain popularity


e-Banking History how it all started...


Apple - iPhone

54 million US household uses online banking

US banks initiate consolidation of branches

1/3 of consumer experience financial difficulties

40% of customers would benefit form personal finance

management tool

e-Banking History how it all started...

Online banking goes massive

E-services platforms emerging

Mobile cross banking platforms Source: Online Banking Report – Dec 2013

Why e-Banking?

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demanding

ATM

e-Banking Varieties

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Electronic Information Transfer System (Passive e-Banking)

Fully Electronic Transactional System (Active e-Banking)

e-Banking Benefits

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for the bank...

GLOBAL

PRODUCT VARIETY

FLEXIBILITY

NO FIXED LOCATION

LARGE CUTOMER DATABASE

PROFITABILITY

COST REDUCTION BRANCH OPERATION EFFECTIVNESS

e-Banking Benefits

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for the customer...

AVAILABILITY

BALANCE INQUIRY

CURRENCY RATES

MONEY TRANSFER TRANSACTION HISTORY

LOW FEES

ANYWHERE BANKING

% Of Users That Use Particular Channel

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more than once in the past 30 days

Source: ComScore, Inc. , courtesy of comScore, Inc.

Top Channel Preference By Banking Channel

15 Source: ComScore, Inc. , courtesy of comScore, Inc.

Top 10 Countries By e-Banking Penetration

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for 2013 in %


e-Banking Penetration Across Europe

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for 2013 in %


Where Are We?

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How Often Do You Use e-Banking?

19 Source: Customer Experience Research 2014 - Gartner

3 Most Used Transaction Types

20 Source: Customer Experience Research 2014 - Gartner

Digital Is Everywhere…In Banking

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WEB PLATFORMS MICRO WEB SITES CORPORATE WEB SITES

INTERNAL WEB TOOLS

VIDEO CHANNELS

MOBILE WEB SITES APPS

SOCIAL PRODUCTS

Digital In Alpha Bank Bulgaria

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CORPORATE WEB SITES

WEB PLATFORMS

MICRO WEB SITES

MOBILE WEB SITES

INTERNAL WEB TOOLS

APPS

VIDEO CHANNELS

PRODUCTS

HOUSING LOANS To feel the coziness of your new home

CONSUMER LOANS For everything that you may need

DEBIT AND CREDIT CARDS To make the most of your shopping

SAVINGS Safety for the future

SERVICES For more convenient banking on the go

Alpha Bank Products & The Digital

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Corporate Web Site

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Web Platform – Personal Loan Advisor

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Micro Web Site – Alpha e-Services

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Mobile Web Site – DYNAMIC & Ultima

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Internal Web Tools – Intranet

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Internal Web Tools – Call Centers Web Tool

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Internal Web Tools – Alpha Sales Tool

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APPS – Mobile Banking

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APPS – DYNAMIC App

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APPS – Emblematic Buildings

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YouTube Channel

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YouTube Channel

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YouTube Channel

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Social - Linkedin

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Social - Linkedin

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What is the first thing you reach in the morning? Your bed partner, yourself or your phone?

Simon Bond Chief Marketing Officer

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THANK YOU!

e-channels in banking

Economy & Finance