The Impact of Mobile on the Chinese Banking Industry David J. Lynch May 26 th Here for good Group Technology & Operations
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation Our approach to leading in mobile Conclusion 2
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation Our approach to leading in mobile Conclusion 3
The worldwide mobile phenomenon * Source: wiredcpu.com/mobile-marketing-in-numbers-infographic, data as of 9/10 4
Mobile penetration across the globe *Source: www.wilsonelectronics.com/inthenewsmashableinfographic.aspx 5
Smartphone adoption explosive across all age groups *Source: The State Of Consumers And Technology: Benchmark 2010, US Forrester report, Sept. 21 st, 2010 Mobile Ownership >1 per person in many markets now 6
Mobile usage is ubiquitous * from Statistical Report on Internet Development in China, July 2010 7
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation The key ingredients of a winning mobile strategy Conclusion 8
Per 100 inhabitants Rising mobility an irreversible global trend 100 Global ICT developments, 2000-2010* 90 80 70 60 50 Mobile cellular telephone subscriptions Internet users Fixed telephone lines Mobile broadband subscriptions Fixed broadband subscriptions 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* *Estimates Source: ITU World Telecommunication /ICT Indicators databasehttp://www.itu.int/ict/statistics 9
Mobile usage will overtake desktop/pc Mobile internet should take over desktop internet usage by 2014 (2007-2015E) *Source: Katy Huberty, Ehud Gelblum, Morgan Stanley Research, Data & estimates as of 2/11 * Source: wiredcpu.com/mobile-marketing-in-numbers-infographic 10
The future of retail banking is mobile Online Payment Market Value Internet Users 300M In 2008 In 2011e Online banking 33% SMS Banking Banking Services Channel Used Remote Banking App Usage Rate in all Smart Phone Users 40B USD In 2008 USD In 2011 e Mobile Users In 2011 e 641M In 2008 Mobile Web Users 118M In 2008 In 2011 e Invest Knowledge Phone Bank Social Networking You Communicate/ Plan Network Analyze/ Weather Research Saving Entertainment Transact News Expenses Music Video Taxes Travel Maps Shop Photos In SH/BJ/ GZ/SZ In SH/BJ/ GZ/SZ 92% In SH iphone Users in all Smart Phone Users 26% In SH Smart Phone In SH/BJ/ Users GZ/SZ 72% In SH Mobile will be the most significant industry disruptor of our time 11
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation Our approach to leading in mobile Conclusion 12
Enterprise mobility was where we started 13
We launched our own internal App Centre 14
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation Our approach to leading in mobile Conclusion 15
Our approach to mobile development Step 1: Team formation & intensive market research Step 2: Develop mobile participation model Step 3: Prioritise capabilities/platforms to business plan Step 4: Form strategic alliances Step 5: Design & build target capabilities Step 6: Iterate, enhance, monitor and engage 16
Step 1: Diversity in skills is essential Amanda Language Expert Freda Apple Evangelist Melissa -- Corporate Advisory Sherry Out-of-the-box Thinker Daisy Design Guru Vera -- Social Media Queen William Tech Expert Kylie Super Resourceful 17
Step 2: Our mobile participation model (illustrative) Reference Entertainment 10 8 Utilities 6 News Social Networking 4 mobile ecosystem and integration 2 Business 0 Productivity Finance Lifestyle Education Sports Navigation 18
Step 3: We defined our target platforms & capabilities Native Apps vs. Web / HTML5 iphone, Android, WP7, Blackberry, Feature Phones Which capabilities first Organisation capacity to deliver Quality and differentiation over quantity 19
Step 4: We formed strategic alliances 20
We formed strategic alliances 21
Step 5: Design & build target capabilities Augmented Reality Location 2D Barcode Reading Touch Screen Technology The smartphone disrupts the traditional context of banking 22
The smartphone changes the traditional context of banking 23
Breeze Living --- enriching our customer s lifestyle 24
Breeze Payments --- transaction convenience 25
Breeze Places --- ATM / Branch locator featuring Augmented Reality 26
Breeze --- our award winning transaction platform in MY/SG Coming soon to China 27
S2B Mobile --- mobile convenience for corporates 28
Agenda The worldwide mobile phenomenon Mobile s massive influence on retail banking Enterprise mobility and culture for innovation Our approach to leading in mobile Conclusion 29
Conclusion Mobile a hugely disruptive force Customer demand is driving investment Context, capability, quality, speed A seismic shift in the way banking is done Rising customer satisfaction should result 30