Lecture part of the IAB Digital MasterClass 2015 held under the guidence of New Bulgarian University and IAB Bulgaria. The lecture covers the digital in banking and more specifically in electronic channels in banking. The lecture concerns case study of Alpha Bank Bulgaria and the e-channels used by the bank.
2. 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 +
2Source: TATA Consultancy Service - Internet Banking Channel, A Case For Comprehensive Usage
3. Overview: Evolution of Channels in Banking
or the way to transfer traditional banking in new era...
3Source: 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 MOBILEWEBBRANCH
Customer has holistic brand
experience.
Bank leverages unified view of
customer
4. Overview: Digital Era & Banking
where the focus is going...
4
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.
Y
New 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
5. e-Banking Definition
5
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
6. e-Banking History
6
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
7. 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
Source: Online Banking Report – Dec 2013
8. e-Banking History
how it all started...
Source: Online Banking Report – Dec 2013
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
9. 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
12. e-Banking Benefits
12
for the bank...
GLOBAL
PRODUCT VARIETY
FLEXIBILITY
NO FIXED LOCATION
LARGE CUTOMER
DATABASE
PROFITABILITY
COST REDUCTION
BRANCH OPERATION
EFFECTIVNESS
13. e-Banking Benefits
13
for the customer...
AVAILABILITY
BALANCE INQUIRY
CURRENCY RATES
MONEY TRANSFERTRANSACTION HISTORY
LOW FEES
ANYWHERE
BANKING
14. % Of Users That Use Particular Channel
14
more than once in the past 30 days
Source: ComScore, Inc. , courtesy of comScore, Inc.
15. Top Channel Preference By Banking Channel
15Source: ComScore, Inc. , courtesy of comScore, Inc.
16. Top 10 Countries By e-Banking Penetration
16
for 2013 in %
Source: ComScore, Inc. , courtesy of comScore, Inc.
19. How Often Do You Use e-Banking?
19Source: Customer Experience Research 2014 - Gartner
20. 3 Most Used Transaction Types
20Source: Customer Experience Research 2014 - Gartner
21. Digital Is Everywhere…In Banking
21
WEB PLATFORMS MICRO WEB SITESCORPORATE WEB SITES
INTERNAL WEB TOOLS
VIDEO CHANNELS
MOBILE WEB SITES APPS
SOCIAL PRODUCTS
22. Digital In Alpha Bank Bulgaria
22
CORPORATE WEB SITES
WEB PLATFORMS
MICRO WEB SITES
MOBILE WEB SITES
INTERNAL WEB TOOLS
APPS
VIDEO CHANNELS
PRODUCTS
23. 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
23