BANKING INNOVATIONS

Customers today can use their mobile devices to gain instant access to news,

mail, photos, taxi services and more. They expect the same degree of access and convenience in banking—without

sacrificing safety. This expectation is fundamentally transforming banking—

from branch functions to payments, to lending and data deployment.

CONSUMERS EXPECT INSTANT AND MOBILE ACCESS TO EVERYTHING

Customers want to track their investment portfolios and make investment decisions on their mobile device.

INVESTMENTS

BANKING: WHAT CONSUMERS WANT

MAIL WEATHERNEWS

MUSIC MAPSCAMERA

Customers crave tools to help them manage budgets and meet goals. An Accenture survey found that:

EASY CASH MANAGEMENT

EXAMPLES: MINT automatically tracks spending and helps create budgets › more than 10 million users› consumer accounts at 1,800 financial institutions

MOVEN is a debit account that tracks your money and offers “safe to spend” advice

50%

46%

67%

of bank customers and

of millennial bank customers want banks to provide budgeting tools.

say their bank should proactively analyze their spending and provide feedback.

APPLE retail stores account for 11.7% of sales, but are still important because they:

Branches allow banks to connect with customers. BRANCHES STILL MATTER

› PROMOTE the brand’s image› PROVIDE live customer support if something goes wrong

11.7%

There is a clear and growing demand for mobile banking services.

of mobile deposit users use it at least once a month

growth in 2013 for SIMPLE users, an online-and-mobile-only “bank”

of PNC customers are primarily non-branched

MOBILE BANKING ON THE RISE

80%

47%

330%

HOW DO BANKS OFFER THE INSTANT AND MOBILE SERVICES CUSTOMERS WANT?

POINT OF SALE PEER-TO-PEER TRANSACTIONS

APPLE PAY contactless mobile payments via phone/watch

1 MILLION CARDS registered in first 72 hours

VENMO allows instant money transfers between mobile devices

$194 MILLION IN PAYMENTS IN 2013

POPMONEY vendor product allowing direct P2P transfers from one bank to another

1,400+ FINANCIAL INSTITUTIONS have integrated Popmoney into their internal systems

NEW PAYMENTS SYSTEMS OFFER CUSTOMERS FASTER AND MORE CONVENIENT TRANSACTIONS

FASTER, EASIER PAYMENTS

47% of retail Point of Sale terminals will be updated with new technology by the end of 2015

SQUARE› allows businesses to read a credit

card from a phone/tablet› offers businesses customer

analytics of payments data

$30 BILLION

IN PAYMENTS PER YEAR

LENDERS ARE OFFERING ONLINE PRODUCTS THAT PROVIDE FAST ACCESS TO ALTERNATIVE LOANS

ALTERNATIVE LENDING GAINS TRACTION

NON-TRADITIONAL CREDIT DATA

PAYMENTS-BASED LENDING

PEER-TO-PEER LENDING

EXAMPLES: Kabbage is the the fastest growing company in small business finance history. Karrot uses non-traditional account data to assess a loan applicant’s creditworthiness.

EXAMPLE: SQUARE CAPITAL, a division of Square, offers small businesses advances which are paid back by taking a portion of their payments

10,000 MERCHANTS used the program in the first two months

EXAMPLE: LENDING CLUB connects borrowers and investors

$2.7 BILLION IN OUTSTANDING CONSUMER LOANS

LARGER PORTFOLIO THAN OVER 97% OF THE BANKING INDUSTRY

They analyze and make credit decisions

IN UNDER 7 MINUTES

When a loan is approved,

UP TO

$100,000 is immediately deposited in the customer’s account

BUSINESS LOANS› bank account cash flows› shipping account› website page views › PayPal payments

CONSUMER LOANS› bank account cash flow› income› credit card balances

BANKS HOUSE A TREMENDOUS AMOUNT OF CUSTOMER DATA THAT CAN BE LEVERAGED TO BETTER SERVE CUSTOMERS

PUTTING DATA TO WORK

EXAMPLE: UBER predicts a customer’s exact destination with

75% ACCURACY before they ask

EXAMPLE: CARDLYTICS uses purchase data to deliver relevant ads to consumers through their mobile and online banking applications

ONE CUSTOMER PROFILE

WHAT IF YOU COULD PREDICT YOUR CUSTOMER’S NEEDS BEFORE THEY ASKED?

Banks can offer better service, reduce fraud and lower costs by connecting all their data points into one customer profile.

› Checking account spending habits

› Savings account

› Credit card

BANKS NEED TO EVALUATE AND TAKE ADVANTAGE OF OPPORTUNITIES TO OFFER THE INSTANT AND MOBILE BANKING SERVICES THAT TODAY’S CONSUMERS EXPECT.

© 2014 American Bankers Association From the ABA Center for Payments and Cybersecurity

› Online visits

› Location

› Branch visits