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Towards M-Banking What part of it is REAL? A software consultants’ perspective.

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Presentation on theme: "Towards M-Banking What part of it is REAL? A software consultants’ perspective."— Presentation transcript:


2 Towards M-Banking What part of it is REAL? A software consultants’ perspective

3 Agenda n Traditional Banking n Towards M-Banking: What part of it is REAL? A software consultants’ perspective n MyBank-In-MyPocket ! n Mob-IS: Infosys Mobile Information Systems Initiative n Questions?

4 Traditional Banking n Full-service branches absorb up to 65% of banks operating expenditures n It costs about 50% more to serve a customer in a lobby n Banks are losing money on 20% of their customers, and merely breaking-even on 20% of their customers - BAI, USA Cost of branch operations increasing Source : Booz Allen Hamilton

5 Traditional Banking Trade Finance Personnel Customer Customer has to visit several desks Deposit Personnel Customer Loans Personnel Customer

6 Internet Perspective Everyone’s “Internetworked” with the customer Internet Customer DepositsLoans Broking Trade Finance

7 $1.07 $0.27 $0.10 Branch ATMInternet Cost of Internet Banking lower and decreasing The Internet Perspective

8 The Prophecy n Internet Commerce is no longer a FAD ! n Internet can be used to deliver all banking services. n The Web has to be a strategic imperative at any progressive bank n Mobile devices (Cell-Phones, PDA’s) are getting increasingly Internet enabled and will be yet another channel for the Internet Access … Hence for Mobile-Internet Banking

9 Towards M-Banking n Convergence: Technology and Financial Services n The statistics: An indicator or a market creator n Are we talking about Multi-Channel Customer Service? n What are the Banking Services that the mobile customer would really want? n Experience Note

10 Convergence: Mergers and Acquisitions ! Technology ConvergenceFinancial Services Convergence Wireless Technology Internet Technology Handheld Devices Retail Banking Mutual Funds Stock Trading Insurance Providing Services Through Technology (reaching the Customer!)

11 Statistics: An indicator or Market creator? Over 3000 banks to offer Online Financial services (At least Accounts Inquiry) Users of Online Financial services growing at 220% Increasing number of Internet Only banks SFNB, Egg, WingSpanbank, Telebanc, Net.Bank & more. 40 million Bill Payments in US are through the Internet 30% of all US brokerage transactions are Internet generated

12 Mobility n Communications and Commerce n Ubiquitous Access Convergence n Voice, data, and video n Wireless-Wireline Critical Mass n Number of subscribers n Network scale n Penetration The Wireless Explosion n The number of digital mobile subscribers will grow from 210m in 1998 to 1,045m in 2003 n The number of digital handset shipments will grow from 143m in 1998 to 535m in 2003 n In some countries the penetration of mobile phones already exceeds 60% The Internet Explosion n Fastest ever adoption rate (compared to radio, TV, Cable) n The number of internet users will grow from 142 m in 1998 to 399m in 2002 n Growing consumer acceptance of internet- based applications The Wireless Internet Competition n Deregulation n Differentiation through enhanced services Co-operation n Standards n Partnership and Investment n M&A Sources: IDC, Forrester Research, US Dept. Of Traffic, The Yankee Group, Piper Jaffray The Global Wireless Internet Market Is Exploding

13 Are we talking about Multi-Channel Customer Service? Reaching to your customers Reducing the Requirement- Service Distance Channels are the enablers of services The m-Channel is yet another one-Ofcourse which adds/complements the existing ones PC- Internet Yours Services Cell Phone-Internet (WAP) Call Centers IVRS News papers TV ATM

14 Lets come down to the basics... Do we need m-Banking Services?A million dollar question? Lets Assume a Wireless Access that is Fast Cheap Secure Do I need Mobile A/C Transactions Check Alerts A/C status Mobile Technology does reduce the requirement-to-service distance Yesterdays luxury is tomorrows necessity What are the RIGHT m-services? A million dollar question !

15 Mobile Frictions ! Mobility of an entity is high if –Entity changes locations –Entity requires the service too often –Entity needs access to Information too often Mobile Friction can be thought of as any resistance faced by the Entities Mobile Frictions manifest themselves in the requirements to service distance Mobile Technology Acts as lubricant Degree of Mobility Mobile Frictions What is Mobility ? Example ATM

16 What are the Banking Services that must be m-Enabled n Reduce the requirements-to-service distance n have Medium Security Sensitivity n are Emergency based or Instantaneous n Reduce Bank’s operating costs Services that...

17 Towards e-Enabling Banks The Infosys Way A Solution Architecture

18 Infosys e-Enabling Process n Understand n Design n Implement n Deploy n Transform The m-Enabled Services The e-Enabled Services We have e-Enabled 25 Banks so far…. Understand Define Implement Not a Linear Approach

19 m-BankAway

20 WAP Banking Functionality n Account Balances n Last 5 Transactions n Funds Transfers n Bill Payments n Check stoppage/status inquiry n Loss of ATM Cards n Requests like Account Statements, Demand Drafts n Temporary Suspension

21 SMS Banking Functionality n Separate M-Pin maintained for SMS Banking maintained by customer himself n Account Balances n Last 5 Transactions n Funds Transfers n Bill Payments n Stop Cheques n Loss of ATM Cards n Requests like Account Statements, Demand Drafts

22 An m-BankAway Experience Note Creating acceptability & growth Generating returns from m-banking Security Issues Handling Varied Load of Customers

23 Acceptability & Growth What to do ? n Register Existing customers n Bundle with Promotion offers n Road shows in key metros n Sustain web advertising n Tie ups with popular cyber retailers, search engines Challenge Customer Attraction & Retention

24 Security What to Do n Understanding Risks & Threats n Deploying Robust Security Architecture n Deploying intrusion detection tools n Regular Audits n Update Security Implementation Challenge Robust Security Architecture

25 Varied Load of customers What to Do n Look at deploying server “farms” n Use scalable platforms n Use reliable communication carrier Challenge Fast response to customer requests in all situations

26 What are the essentials n Strategic Planning –Choosing right target segments –Clearly defining the web roadmap n Organisational Changes –Learning Culture –Willingness to streamline business processes Project Management Clear project scope Adequate funding Top management commitment Choosing capable partner(s)

27 The Infosys e-Enabling Offering n Consulting services for e-nabling banks n Technical consulting services on network & security architecture n Implementation & integration services n Customization of applications End-to-end services

28 Road Blocks The WAP Security hole! Back-End Integration with other Bank Operations Cost of the Wireless Access Identifying the RIGHT m-services Speed of the Wireless Access Unified m-Transaction Model

29 Future: MyBank-In-MyPocket ! Unified m-Transaction Model Zero Paper Currency Society Personalized MyBank In-MyPocket 911-Bank ! Unified Bank Account MyBank is My Money Manager

30 Mob-IS Infosys Mobile Information System Initiative Mob-IS Services M-BankAway OnScan Application Development, Testing and Integration Multi-Channel Portal Development WAP, BlueTooth High-End Technology Consulting Powered by InFlux TM

31 n Partners to build Information Infrastructure for the New Economy n Highest market capitalization among IT services companies listed on the NASDAQ n Forbes’ list of “ 20 for 2000 ” n SEI-CMM level 5 and ISO-9001 n Over 8000 people strong, and growing n 220+ clients including 32 new clients in Q1 FY 2001 Infosys Today Vision To be a globally respected corporation that provides best-of-breed software solutions delivered by best-in-class people

32 Worldwide Recognition “ Murthy tops almost every Indian survey as the most esteemed manager … ” “ Best managed Indian company... ” “Infosys has been a trail-blazer in creating incentives and delegating power to employees... ” “... the darling of many foreign investors - partly because its disclosure practices make it one of the most transparent companies in India... ” “It has set new standards for disclosure and for investor relations in India... ”

33 A few of our customers Internet & E-business engagements Fidelity Investments Apple CBS Sportsline Aon Insurance Nordstrom Samsung Dell EC Cubed Strategic outsourcing relationships Toshiba Nordstrom Goldman Sachs Aon Insurance Sainsbury’s Apple Aetna American Express Communication Projects Jetstream Quintessant Avici Cisco Nortel Networks Lucent Technologies Bell Atlantic Fujitsu Belgacom Mobile Paradyne

34 A few of our customers Enterprise Solutions & Package Implementation Large development & reengineering projects Maintenance, enhancements & production support Visa Nestle Reebok Belgacom Mobile Nordstrom Apple Rockport Dell Southern California Edison GAP General Electric Aon Ericsson Belgacom Mobile First Data Resources Aetna Bell Atlantic Goldman Sachs JCPenney Bank of America DHL Sainsbury’s GTE Nestle DeLaRue Adidas Reebok Belgacom Mobile Toshiba Apple AlphaSmart Rockport Dell Nordstrom

35 Questions? “Towards effectively deploying Mobile Technology for NexGen Banking ….”

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