1. FEDERAL HOME LOAN BANK OF NEW YORK© 2011 FEDERAL HOME LOAN BANK OF NEW YORK • 101 PARK AVENUE • NEW YORK, NY 10178 • WWW.FHLBNY.COM
Back to the Future
David Aponte, Lauren Alin, Man Na Cheung, Jhoon Jeon,
Faranak Sadeghi Naieni Fard
June 2014

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» Demographics
» Online Banking
» Mobile Banking
» Conclusion
Agenda

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» Transitioning from Baby Boomers to Millennials
Demographics
Future of Branch Banking Notes

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» Branchless Banking
– Shift from brick and
mortar stores as bank
branches are closing
» Real Time Service
– Banks offer online
banking for real time
account information
and an electronic
payment system
Online Banking: Current State

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» Tailored Products
– Moving from traditional products to new consumer
needs in the digital channels
» Customized Marketing
– Activity based marketing and usage of analytics to
improve customer experience and interaction
» Emerging Businesses
– Savings banks and federal credit unions will move
towards 3rd party vendors for online banking
Online Banking: Trends

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» Automation/ Heading towards self-service
– 1Link
» Wires
» MULOC
» Multiplatform
» Updating Infrastructure
» Marketing
» Regulation
Impact on FHLBNY: Online Banking

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» Potential threats:
– Hacking
– Phishing
Security: Online Banking
NY State Dept. of Financial Services: Report on Cyber Security in the Banking
Sector
» Security must keep
pace with technology

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» Wide availability
– Offered by thousands of banks worldwide to regular
customers and small business owners
» Accessible on all platforms
– SMS, mobile sites, downloadable apps
» Variety of functions
– Most offer similar services, though certain banks can
provide specialized options
» Mobile wallet services
– Venmo, Google wallet
Mobile Banking: Current State

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» Growing number of users
– Significant numbers of mobile device users are
utilizing the mobile banking options available to them
» Functions tied to technology
– As hardware and software on phones and tablets
improves, so do the applications developed for them
» Corporate-level mobile banking
– Growing demand for shows that corporate mobile
banking may emerge as a strong market
Mobile Banking: Trends

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Mobile Banking: Trends
Corporate Mobile Banking: A Look at J.P. Morgan ACCESS Mobile

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» Increase efficiency
– Stay updated and approve transactions from any phone-
accessible location
» Low data costs
– Only transactional data is exchanged between the device
and the bank’s servers
» Apps for members
– Create customized solutions based on member statistics
Impact on FHLBNY: Mobile Banking

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» Physical security of mobile devices
– Stolen mobile devices can be sold or hacked
» Multi-stage authentication linked to current bank systems
» Device fingerprinting
– Record device-specific elements such as serial no.,
model, carrier, phone no.
» Secure encryption of data
Security: Mobile Banking

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» Changing Environment
» Update 1Link
» Integrate Social Media
» Efficiency and Convenience
» Future Outlook
Conclusion