ey-smart commerce battling for customers in digital retail

7/27/2019 EY-Smart Commerce Battling for Customers in Digital Retail

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Smart CommerceBanks battle for customers

at the frontline of digital retail


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Contents

Introduction 01

Executive summary 02

Research methodology 04

Research results 06

01

The growing threat to banks 06

9& KeYjl;gee]j[]\]f]\ 07

:& KeYjl;gee]j[]\]eYf\Yf\\jan]jk 10

;& KeYjl;gee]j[]Y\ghlagf 12

D. The threat to banks 16

02Banks responses 19

A. Strategic ambitions and drivers 20:& Ghhgjlmfala]kZ]qgf\hYqe]fl 24

;& ;`Ydd]f_]klgkljYl]_q\]dan]jq 26

D. Skill and capability gaps 32

Gmjna]okYf\j][gee]f\Ylagfk gjfYf[aYdk]jna[]kafklalmlagfk +.

Contacts 38


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02

Smart Commerce

Banks battle for customers at the frontline of digital retail

Research results

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l`j]Yl^jgel`]eYkkY\ghlagfg^KeYjl;gee]j[]k]jna[]k&

J]khgf\]flkZ]da]n]l`Ylkaehda]\\a_alYdhYqe]fl$[gehd]e]fl]\Zq]fja[`]\

e]j[`Yfl'[gfkme]j[geemfa[Ylagf$oaddZ]Yll`]`]Yjlg^KeYjl;gee]j[]Zml

expect it also to include entirely new digital shopping services.

KeYjl;gee]j[]\]n]dghe]flakZ]af_\jan]ffglgfdqZq[gfkme]jf]]\kZml

YdkgZql`gk]gê]j[`YflkYf\ZqdYj_]hjglhggdk$kge]gmlka\]g^hYqe]flk&

Logg ]n]jqn]j]khgf\]flkZ]da]n]l`YlKeYjl;gee]j[]oaddZ]

a mass-market phenomenon within two years.

:Yfckj]_Yj\l`]eYafjakchgk]\lgl`]eZqKeYjl;gee]j[]Ykl`Ylg^

customer intermediation and the decline in bank relevance to consumer

commerce should this occur.

:YfckYj]hdYffaf_lg\]dan]jYeZalagmkKeYjl;gee]j[]k]jna[]klg[gmfl]jl`]

threat of intermediation.

Egklj]khgf\]flkoYfllgZ]YKeYjl;gee]j[]kgdmlagfhjgna\]jg ^]jaf_

integrated solutions incorporating both payments and broader purchasing

^Y[adalYlagfk]jna[]k]&_&$\a_alYddgqYdlq$hjgeglagfkYf\j][]ahlaf_!$Yf\

most intend to deliver this within two years.

Over 80% of respondents believe banks can support targeted digital merchant

promotions using customer data in addition to their traditional payment services

role; however, one in eight thinks that banks should stick to providing only

hYqe]flYf\fYf[]k]jna[]kafKeYjl;gee]j[]&

HYjla[ahYflka\]fla]\l`j]]eYaf[ Ydd]f_]klg\]dan]jqg KeYjl;gee]j[]

kljYl]_a]k2gn]j[geaf_[gfk]jnYlan]afl]jfYd[mdlmj]k3k]d][laf_l`]Z]kl

kgdmlagfo`]fl`]j]akfg[d]Yjoaff]jYf\^jYm\'\YlYk][mjalqjakckYj]Yc]q

concern; and ensuring regulators are kept up to speed.

Most participants also need to address capability and skills gaps notably in

distribution, mobile app development and in social media.

Gmjna]okYf\j][gee]f\Ylagfk^gjfYf[aYdservices institutions

At Ernst & Young we recognize both that the intermediation fears exhibited in

làkklm\qYj]o]dd^gmf\]\ZmlYdkgl`YlKeYjl;gee]j[]hj]k]flkYfmfmkmYd

ghhgjlmfalq^gjfYf[aYdk]jna[]kafklalmlagfklg_]f]jYl]j]n]fm]^jgeYhjgl

pool to which they have had little access to date: retail sales promotion.

O]Z]da]n]l`YlYddjekkmhhgjlaf_j]lYadhYqe]flkoaddf]]\lg\]ka_fYj]khgfk]

tailored to their market and competitive contexts, capabilities and ambitions but,YZgn]Ydd$oal`km^[a]fl]paZadalqlgeYfY_]l`]mf[]jlYaf^mlmj]aflàk]p[alaf_

and fast-moving space.

Executive summary

76%of respondents voicedconcern that Smart;gee]j[]oadd\aklYf[]them from customers ifcustomers start to usenon-bank digital walletsinstead of a bank cardto buy things.


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03

Smart Commerce



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04

Smart Commerce


Research methodology

Ernst & Young conducted in-depth interviews with

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Smart Commerce


05

Summary of interviews by industry and region

Americas2 Europe 9kaY%HY[a[ Total

Retail bank 6 11 2 19

Credit card processor or scheme 1 3 0 4

Financial services other , 7 0 11

Financial services companies 11 21 2 34

Fgf%fYf[aYdk]jna[]k[gehYfa]k 2 3 2 7

Total 13 24 4 41

1 Retail, technology and telecommunications

2 Includes one respondent from Latin America

To support our interviews, we provided respondents with a number of supplementary

\]k[jahlagfkYf\\]falagfklg[dYja^qim]klagfkYf\Ya\j]khgfk]k&O`]j]j]d]nYfl$

we have included this additional information alongside the relevant chart in the report.


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06

Smart Commerce


The growing threat to banks

Banks see their loss of relevance to customers dueto intermediation as the key threat from the massadoption of Smart Commerce services

C]qf\af_k2

9&KeYjl;gee]j[]\]f]\

J]khgf\]flkZ]da]n]l`Ylkaehda]\\a_alYdhYqe]fl$[gehd]e]fl]\Zq]fja[`]\e]j[`Yfl'[gfkme]j[geemfa[Ylagf$oaddZ]Yll`]`]Yjlg^KeYjl;gee]j[]Zml

expect it also to include entirely new digital shopping services.

B. Smart Commerce demand and drivers

KeYjl;gee]j[]\]n]dghe]flakZ]af_\jan]ffglgfdqZq[gfkme]jf]]\kZmlYdkg

Zql`gk]g^e]j[`YflkYf\ZqdYj_]hjglhggdk$kge]gmlka\]g^hYqe]flk&

C. Smart Commerce adoption

Logg^]n]jqn]j]khgf\]flkZ]da]n]l`YlKeYjl;gee]j[]oaddZ]YeYkk%eYjc]l

phenomenon within two years.

D. The threat to banks

:Yfckj]_Yj\l`]eYafjakchgk]\lgl`]eZqKeYjl;gee]j[]Ykl`Ylg^[mklge]j

intermediation and the decline in bank relevance to consumer commerce should

this occur.

01


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Smart Commerce


07

Section 01 The growing threat to banks

9&KeYjl;gee]j[]\]f]\

J]khgf\]flkZ]da]n]l`Ylkaehda]\\a_alYdhYqe]fl$

[gehd]e]fl]\Zq]fja[`]\e]j[`Yfl'[gfkme]j

[geemfa[Ylagf$oaddZ]Yll`]`]Yjlg^KeYjl;gee]j[]

but expect it also to include entirely new digital

shopping services.

9ll`]klYjlg^gmjafl]jna]ok$o]hjgna\]\gmjafl]jna]o]]koal`YZYka[\]falagf

g^l`]logc]qYj]Ykl`Ylo]Z]da]n][`YjY[l]jar]KeYjl;gee]j[]af[dm\af_Zgl`payment and additional services as follows:

1. Digital payment methods that simplify and enrich the experience at POS,

both physical and online

;gfkme]jkmk]\a_alYdoYdd]lkZgl gfdaf]Yf\afalaYl]\^jgeYegZad]lghYq

for face-to-face transactions.

HYqe]flmk]kYkaehd][gfkme]j%^ja]f\dqa\]fla[YlagfYf\n]ja[Ylagf

method, consistent across face-to-face and remote channels.

DgqYdlqhgaflkYj]YmlgeYla[YddqY\\]\YlHGK^gj[mklge]jkYf\ngm[`]jk'

coupons automatically redeemed with payment.

2. Rich communication between merchant and consumer, particularly

leveraging the mobile channel

L`][gfkme]j'e]j[ Yflj]dYlagfk ah ]Ylmj]kYj]_mdYj]p[`Yf_]g

information between selected merchants and their customers on all channels.

;gfkme]jkj][]an]lYj_]l]\Yf\j]d]nYfl\a_alYdhjgeglagfkYf\ngm[`]jkgf

l`]ajH;Yf\egZad]$g^l]fZYk]\gfl`]ajhjgpaealqlgYhmj[`Ykaf_ghhgjlmfalq&

L`]egZad]h`gf]'lYZd]lakY[gfklYflk ghhaf_[gehYfagflgl`][gfkme]j

and is also used by retailers to communicate in store to customers.

Afl]jna]o]]kj]khgfk]kgf`goY[[mjYl]dqlàk\]k[jahlagfg^KeYjl;gee]j[]eYl[`]\

their own views reveal much about the current standing, ambition and potential strategic

j]khgfk]kg^gmjj]khgf\]flk&KeYjl;gee]j[]oadd`Yhh]f&LàkhYjlg^l`]kmjn]qoYk

mf]imang[Ydoal`Yddj]khgf\]flkZ]da]naf_KeYjl;gee]j[]oadd\]n]dghafYld]Ykl

kge]g^l`]Yj]Yk\]f]\&

Seventy-three percent of respondents agreed with the retail future we described to a

dYj_]]pl]fl$oal`,)Z]da]naf_l`Yllàk\]k[jahlagfogmd\[`YjY[l]jar]l`]eYbgjalq

of purchases.

Nearly three-quartersof respondents agreedl`YlKeYjl;gee]j[]is coming.


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09

Smart Commerce


@go]n]j$kge]hYjla[ahYflk^]dll`Ylgmj\]falagfoYklggfYjjgoYf\l`YlKeYjl

Commerce will incorporate broader offerings than the digitization of the current

POS experience.

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a much broader service offering than the one outlined. In particular, respondents said

l`]qZ]da]n]\KeYjl;gee]j[]km[[]kkoaddaf[gjhgjYl]em[ègj]l`Yf\a_alaraf_l`]

current POS and retail experience, a step that was seen as merely a staging post en route

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This is partly because some respondents saw digital versions of payments and promotionsYkfgl]fgm_àfl`]ek]dn]klg[`Yf_][gfkme]jZ]`Ynagjka_fa[Yfldq&9[[gj\af_lggmj

interviews, there is little wrong, for example, with current in-store debit and credit card

hYqe]fle][`Yfakek&J]khgf\]flk[al]\l`] Yadmj]g^]paklaf_F]Yj>a]d\;geemfa[Ylagf

F>;!l][`fgdg_qlgY[à]n]oa\]khj]Y\Y\ghlagfl`mk^YjYkYhgo]j^md]pYehd]g^

consumers apathy toward incremental improvements, particularly those that fall into the

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Meanwhile, a number of targeted promotions and loyalty schemes already use mobile

phones as a channel. However, the majority of respondents do not believe there is scope

for a sustainable competitive advantage in mass discounting, whether digitally delivered

or not.

The real opportunity in Smart Commerce is in creating brand distinctiveness with a

differentiated digital personalized experience. We see Smart Commerce as addressing

How can I make you happy? not What can I sell you today?

International Retailer (Europe)

9[[gj\af_lggmjafl]jna]ok$l`]j]YdnYdm]afKeYjl;gee]j[]akdac]dqlg[ge]^jge

new services, which will genuinely improve consumers lives and help merchants meet

[gfkme]jkf]]\kegj]]^[a]fldqYf\[gfn]fa]fldq&EYfqg^l`]k]f]ok]jna[]kYj]Ydkg

likely to be disruptive to existing offerings. Our respondents said these disruptive services

are likely to bring together location tools, social networking, scanning, mobile and

payment technologies in new ways, potentially evolving in a manner that has not yet even

Z]]f[gfka\]j]\&Hmllaf_Yka\]\a^^]j]flna]okgf^mlmj]KeYjl;gee]j[]k]jna[]k$Ydd

respondents recognized that the creative and insightful use of data will be at the heartof these offerings. Our interviewees also recognized that the creation and ownership of

l`]ja_`l\YlYakdac]dqlgZ]Y[jala[Yd\a^^]j]flaYlgj^gjjekdggcaf_lghdYqYhYjlafY

KeYjl;gee]j[]^mlmj]&

The key part of Smart Commerce is actually not in the area of payments at all, but in the

area of cloud integration. For merchants this may involve non-payment functionality such

as stock control. For consumers it may involve functions such as the ability to pre-order

and have goods waiting for you when you get to the store.

Retail Bank (Americas)

The real value inKeYjl;gee]j[]aklikely to come fromnew services, whichwill genuinely improve

customers lives andhelp merchants meetconsumers needsegj]]^[a]fldqand conveniently.


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Smart Commerce


EYfqk]]ka_fa[Yfl[gee]j[aYd\jan]jk$afhYjla[mdYj$e]j[`YflkYd]khjgeglagfk&

E]j[`YflkYd]khjgeglagfkoYk$Zqkge]\aklYf[]$na]o]\Ykl`]c]qhjglhggd\janaf_

KeYjl;gee]j[]\]n]dghe]fl$[al]\Zqf]Yjdq^gmjgmlg^n]afl]jna]o]]k&L`]k]

j]khgf\]flkZ]da]n]l`Yl`]dhaf_e]j[`Yflklgk]ddegj]]^[a]fldqYf\]^^][lan]dqoadd

^mf\l`][gklkgâffgnYlagfZ]àf\em[`g^KeYjl;gee]j[]&

The focus of much digital payment effort to date has, by contrast, been focused on

helping consumers buy more conveniently. Respondents recognized that it is ultimately

retailers and manufacturers that pay for commerce services and have the most to gain

from digital improvements.

Merchant sales promotions

and loyalty schemes

Payments revenue

HGKfYf[]

Manufacturer sales promotions

18%

76%

47%

21%

:Yk]2>afYf[aYdk]jna[]kj]khgf\]flk+,!Respondents could select up to two answers

Oà[`Yj]l`]eYafhjglhggdk\janaf_KeYjl;gee]j[]\]n]dghe]fl7

While payments revenues were regularly mentioned by banks as a driver of Smart

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jgd]g^KeYjl;gee]j[]afhjgl][laf_]paklaf_j]n]fm]$YdZ]algf]o`]j]hja[af_ak

already under severe pressure. A number of other respondents, typically online and digital

companies, see the opportunity to gain share of the payments market and the criticalaehgjlYf[]g^hYqe]flklgYZjgY\]jKeYjl;gee]j[]g^ ]jaf_&Aflàkj]kh][l$k]n]jYd

banks explicitly imagined a world where the larger digital organizations would give away

l`]hYqe]fl]d]e]flafgj\]jlghjgegl]KeYjl;gee]j[]ljYfkY[lagfk&

Fundamentally retailers will pay for Smart Commerce to drive their sales but manufacturers

may also decide they can go direct to consumers and bypass retailers. There are no NEW

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Global Digital Payment Services Provider (Europe)

The large, online, digital payment platforms are looking to drive revenue out of the data

and are even willing to give away the payment revenue to make money on the promotion.


There is a belief that there is a new revenue stream in payments. There isnt.


Examples ofSmart Commerce

Digital couponsredeemedautomatically at the

point of payment

Digital statements asa vehicle for targetedoffers based on wherea consumer shops

Delivery of location-based messaging

to a customerssmart phonetriggered by proximityto a particular store


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Smart Commerce


Afqgmjna]o$oà[`Yj]l`]egklka_fa[YflafàZalgjk to Smart Commerce development?

Gmjkmjn]qhYjla[ahYflka\]fla]\YfmeZ]jg^gZklY[d]k$oà[èYqZ]j]klja[laf_l`]

hY[]g^KeYjl;gee]j[]\]n]dghe]fl&L`j]]afàZalgjko]j]e]flagf]\Zqegj]l`Yf

half of the respondents: the slow pace of retailer adoption, the lack of added consumer

value in digital payment solutions offered to date and the impasse brought about by

[gfa[laf_[gee]j[aYdafl]j]klkZ]lo]]fhYjla]kYl\a^^]j]flhgaflkafl`]nYdm][`Yaf&

While slow retailer adoption was mentioned most often, the reason cited for this by

respondents was frequently that retailers do not believe that the solutions delivered to

consumers so far offer enough value to encourage adoption. Respondents understood

that retailers are unlikely to invest heavily in the infrastructure for new POS propositions

that are not compelling to their end customers. Our respondents, though critical

afhYjl$Y[[]hll`Ylj]f]oaf_l]jeafYdkaf%klgj][Yjja]kka_fa[Yfl[gkl^gje]j[`Yflk&

There is also widespread recognition that the proliferation of smaller payment solutions

is a further contributory factor to slow retailer adoption when there is limited visibility

of likely winners.

Will merchants want to invest if there are no lifts in sales as a result? Investment is not

just in the technology, but in staff training and infrastructure. The question for merchants

will be does this bring me extra business? If the consumer proposition is strong, retailers

will adopt it as retailers follow consumer demand.

Global Digital Payment Services Provider (Europe)

Too many small solutions

to gain critical mass

Base: Financial services' answering(33)

27%18%

15%

9%

Slow pace of adoption of digitalacceptance methods by retailers

Afkm^[a]fl[gfkme]jnYdm]to encourage adoption

;gfa[laf_[gee]j[aYdinterests of participants

Improvements to existingpayment methods

Regulatory barriersto data sharing

Consumer resistance tosharing personal data

58%

55%

52%

Respondents could select up to three answers

50%say that it will take uplgn]q]Yjk^gjeYkkadoption to take placeas three inhibitorsremain to be addressed.


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Smart Commerce


;gfa[laf_[gee]j[aYdafl]j]klkoYkl`]l`aj\g^l`]l`j]]eYbgjZYjja]jklgKeYjl

;gee]j[]hjg_j]kk]phj]kk]\afgmjj]k]Yj[`&Afl`]egj]\]lYad]\j]khgfk]k$kge]

highlighted the sheer number of potential participants in the value chain and the absence

kg^Yjg^YfqeYbgjf]ohjglhggdk&Oal`f]ohdYq]jk[geh]laf_afdgf_%]klYZdak`]\

market with aggressive business models, the scope for commercial tensions and

disruption is seen as particularly problematic.

Its not clear who should take the lead in Smart Commerce. It is a bit like a gold rush.

Everybody in the value chain wants to get a share of the riches, even the shovel maker.

9ddjekYj]j]Y[`af_ gjegj]l`Yfl`]qYj]]flald]\lgZmlmdlaeYl]dq]n]jqgf]ak

[`Ykaf_l`]kYe]hjgl&

Retail Bank (Europe)

Other respondents singled out individual participant types for effectively holding Smart

;gee]j[]\]n]dghe]fllgjYfkgeYf\^gj\]eYf\af_o`Yll`]j]khgf\]flkgZnagmkdq

felt was an unreasonable proportion of sales values. Mobile network operators (MNOs)

were mentioned more than any other type of participant in this respect, with very little

j][g_falagf^jgegl`]jhYjla[ahYflkg^YfqnYdm]l`]q[mjj]fldqZjaf_lgKeYjl;gee]j[]&

9[[gj\af_lggmjafl]jna]ok$o`Ylhgo]jl`]EFGk`Y\`YkZ]]fka_fa[Yfldq\adml]\

since the launch of the iPhone and the subsequent launch of rival smart phones, which

act as platforms for third-party app development. Progress is now limited by arguments

over the share of transaction fees due to different industry participants.

EFGkYf\ZYfck`Yn]`]d\mh\]n]dghe]fl&>gjn]lgkapq]Yjkal`YkZ]]fl][`fa[Yddq

easy to build the solutions but MNOs wanted 10% of payment values. There is a mismatch

in expectations of value a commercial standoff. MNOs wouldnt give access to the

phones and they control access to the important secure element.

Global Credit Card Provider (Europe)


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Smart Commerce


:Yfckj]_Yj\l`]eYafjakchgk]\lgl`]eZq

KeYjl;gee]j[]Ykl`Ylg^[mklge]jafl]je]\aYlagf

and the decline in bank relevance to consumer commerce

should this occur.

Some banks are concerned about the potential loss of direct revenue from cards and

current account balances.

9dgf_ka\]l`]Z]da]^afYKeYjl;gee]j[] mlmj]$ZYfckYf\[Yj\hjg[]kkgjk ]]dl`j]Yl]f]\

by it. Most respondents indicated some concern about the direct revenue impact of their

customers adoption of digital wallets for purchasing. The poor relative economics of

accepting cards as a funding source makes it likely that wallet providers will strongly

]f[gmjY_]\aj][l mf\af_ jgeZYfcY[[gmflkl`jgm_ Yf9mlgeYl]\;d]Yjaf_@gmk]9;@!

instead. This is likely to reduce card usage and revenue for bank card issuers.

The other direct impact cited by a third of interviewees was that some consumers would

start to maintain a balance in their digital wallets, which previously would have been

held in a current account, thus reducing a vital source of low-cost funding previously

considered reliable and stable.

=n]flmYddqo]dgk]l`][mklge]jYf\Yddl`]oa\]jnYdm]l`Ylgok^jgel`]j]dYlagfk`ah

if we dont maintain the relevance of the bank.


Person-to-person (P2P) payment completely wipes out interchange and card transactions

so the options (for us) are bad, worse and worst.


Section 01 The growing threat to banks

D. The threat to banks


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Smart Commerce



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Smart Commerce


Banks responses

Banks are planning to deliver ambitious

Smart Commerce services to counter the threat

of intermediation

C]qf\af_k

A. Strategic ambitions and drivers

Egklj]khgf\]flkoYfllgZ]YKeYjl;gee]j[]kgdmlagfhjgna\]jg^^]jaf_

integrated solutions incorporating both payments and broader purchasing

^Y[adalYlagfk]jna[]k]&_&$\a_alYddgqYdlq$hjgeglagfkYf\j][]ahlaf_!$Yf\egkl

intend to deliver this within two years.

B. Opportunities beyond payment

Over 80% of respondents believe banks can support targeted digital merchant

promotions using customer data in addition to their traditional payment services

role; however, one in eight thinks that banks should stick to providing only payment

Yf\fYf[]k]jna[]kafKeYjl;gee]j[]&

C. Challenges to strategy delivery

HYjla[ahYflka\]fla]\l`j]]eYaf[`Ydd]f_]klg\]dan]jqg^KeYjl;gee]j[]

strategies:

1. Overcoming conservative internal cultures

2. K]d][laf_l`]Z]klkgdmlagfo`]fl`]j]akfg[d]Yjoaff]jYf\^jYm\'\YlY

security risks are a key concern

3. Ensuring regulators are kept up to speed

D. Skill and capability gapsMost participants also need to address capability and skills gaps most notably in

distribution, mobile app development and in social media.

02


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Smart Commerce


Egklj]khgf\]flkoYfllgZ]YKeYjl;gee]j[]

kgdmlagfhjgna\]jg^^]jaf_afl]_jYl]\kgdmlagfk

incorporating both payments and broader purchasing

^Y[adalYlagfk]jna[]k]&_&$\a_alYddgqYdlq$hjgeglagfk

and receipting), and most intend to deliver this within

two years.

Which strategy option shown below is the closest match to yourSmart Commerce strategy?

Smart Commerce solutions provider

Smart Commerce payment provider

Smart Commerce sales promoter

Smart Commerce enabler

Base: Financial services' answering (32)

62%

16%

3%

19%

D

C

B

A

Smart Commerce solution provider

Develop integrated Smart Commerce

solution incorporating e.g., payment,

loyalty, promotion and service

Smart Commerce payment provider

Provide your own digital payment

solution to your customers

Smart Commerce sales promoter

Provide targeted marketing and

loyalty services to your customers,

leveraging digital channels

Smart Commerce enabler

Enable your customers to use digital

payment and Smart Commercesolutions provided by others

Limited participation

D

C

B

A

Extensive participation

Nearly two-thirds of respondents have ambitious aims to be a Smart Commerce

solution provider and in short timescales.

Section 02 Banks responses



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Smart Commerce


21

afYf[aYdk]jna[]kYfko]jaf_+)!

35%

It has already happened 23%

29%

10%

3%

87%indicated that theirsolutions would bein market within twoyears, with a majority

of these intending todeliver within a year.

Nearly two-thirdsof respondents haveambitious aims to beYKeYjl;gee]j[]kgdmlagfhjgna\]jYf\in short timescales.


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Smart Commerce


Respondents Smart Commerce ambitions were motivated principally by enhancing

customer relationships and payment revenue.

The commercial drivers behind these ambitions were explored in our questions on the nature

g^l`]KeYjl;gee]j[]ghhgjlmfalq^gjj]khgf\]flkgj_YfarYlagfk&L`]egklhghmdYj

Yfko]jaf\a[Yl]kl`Yl`Yd^g^j]khgf\]flkk]]l`]ghhgjlmfalqafKeYjl;gee]j[]oalàf

the defensive commercial context of retaining and improving customer relationships.

J]khgf\]flkZglòalàfYf\gmlka\]g^ljY\alagfYdfYf[aYdk]jna[]kj][g_far]\ZYfck

as possessing a key asset in customer relationships and customer data with a very broad

view of their customers purchasing behavior. Many banks therefore see the opportunityin leveraging this data to increase customer loyalty and retain existing business revenues

by maintaining relevance to customers through improved customer experiences and

differentiated propositions. The customer experience examples mentioned by respondents

arise from the view that banks could offer more to customers, particularly in the post-

hmj[`Yk]K]jna[]klY_]g^l`][gee]j[]da^][q[d]&=pYehd]ke]flagf]\o]j]\a_alYd

receipting and tools to help consumers understand where they are spending their money.

O]Yj]]plj]e]dq\YlYja[`Zmlo]eYc]hggjmk]gâl&L`]ghhgjlmfalqakafegj]]^[a]fl

and effective use of our data to provide a truly differentiated offer in terms of value to

the customer. For example, if someone is about to spend 300 we could give them real-

time data that would tell them whether they can afford it, or whether they could afford it

but be in real trouble next week. We can then give customers options in terms of purchasing,

purchasing with an advance, etc. Customers have never been less trusting of retail banks

but never in more need of bank advice.


We have a fantastic advantage today if we wake up and do something. With balance sheet,

trust, distribution and global scale, we have a great opportunity to build the future for

digital payments.

Global Credit Card Provider (Europe)




25/40

23

Smart Commerce


Nearly a third of interviewees were seeking to gain or maintain payment revenues. While

digital payment providers are certainly targeting the payment revenues of the banks and

[Yj\af\mkljq$ZYfckl`]ek]dn]keYafdqk]]l`]hYqe]flkghhgjlmfalqafKeYjl;gee]j[]

gflog^jgflk2jkl$eYaflYafaf_]paklaf_j]n]fm]klj]YekZq\]dan]jaf_Yegj]k]Yed]kk

and enhanced payment solution, and second, growing the use of lower-cost and more

k[YdYZd]KeYjl;gee]j[]hYqe]flkgdmlagfkYll`]]ph]fk]g^[Yk`&

What do you see as the opportunities arising from Smart Commercefor organizations such as yours?

Developing differentiatedpropositions

Base: Financial services' answering(33)

32%

29%

24%

18%

Retaining and expandingrelationships with customers

Gaining/maintainingpayment revenue

Providing supporting servicesand technology

Delighting customers throughimproved experience

Extending alongthe value chain

50%

32%


Nearly a third ofinterviewees wereseeking to gain ormaintain paymentrevenues.

We have a fantasticadvantage today ifwe wake up and dosomething. Withbalance sheet, trust,distribution and globalscale, we have a great

opportunity to buildthe future for digitalhYqe]flk&

Global Credit CardProvider (Europe)


26/40

24

Smart Commerce


Over 80% of respondents believe banks can support

targeted digital merchant promotions using customer

data in addition to their traditional payment services role;

however, one in eight thinks that banks should stick

lghjgna\af_gfdqhYqe]flYf\fYf[]k]jna[]kaf

KeYjl;gee]j[]&

Beyond Purchase, which of the other three elements of theSmart Commerce value chain below can banks participate in?

The Smart Commerce value chain

Promote

Manage customer data

Design promotions

af[&j]oYj\'dgqYdlq

programs)

Target promotions

;geemfa[Yl]promotions

Redeem promotions

Service

Measure satisfaction

Provide support

Offer additional

services

Purchase

;Yhlmj]gj\]j

Provide payment

Hjgna\]fYf[]

Select

Supply product

information

Display product

Product trial

and testing

n/a83% 33% 47%

:Yk]2>afYf[aYdk]jna[]kYfko]jaf_+(!Respondents could select up to three answers

Eighty-three percent of respondents saw potential for banks to go beyond the

Hmj[`Yk]klY_]g^l`]nYdm][`Yaflgg^^]jk]jna[]kafKeYjl;gee]j[]hjgeglagf$

Ydl`gm_`j]dYlan]dq^]oY[lmYddq]phj]kk]\l`akYkYkh][a[ghhgjlmfalq^gjl`]ek]dn]k&

Once again, our interviewees recognized the powerful and valuable data that banks

`Yn]Yll`]ajf_]jlahk&


B. Opportunities beyond payment


27/40

25

Smart Commerce


however, one in eightthinks that banks shouldstick to providing onlyhYqe]flYf\fYf[]services.

The detail of responses from interviewees focused on developing end-to-end solutions

shows the desire to control customer data and the opportunities respondents believe may

exist to attract new customers and generate new revenue through differentiated offerings.

A new wave of promotions that use consumers bank payment transaction data in a more

intelligent and targeted manner was seen by many respondents as the most likely route

for banks to follow. This compares to the limited and imprecise nature of much existing

digital promotion, which is based on location or the purchasing history of a customer with

just a single merchant.

We plan to be very active. We want payment mechanisms put into digital wallet alongwith credit cards, promotions that create loyalty, rewards strategies that compound

savings giving customers meaningful discounts on some purchases.


Banks have an opportunity in the way they operate to use data to drive promotions.

However, they will need alliances to add value in other elements of the value chain.

Digital Payment Services Provider (Europe)

Assuming the current account remains the key processing hub then banks have a role to

play in promotion, but they need to move quickly to maintain their relevance.

Technology (Europe)

However, this was not a universally held view, with some respondents expressing concern

about banks participating in areas in which they have no experience and which may end

up damaging their reputation and brand. Others pointed out that while banks may want

to participate in all areas of the value chain, they doubted banks had the skill sets

f][]kkYjqlgY[`a]n]l`akdg^lqYeZalagfoal`dalld]lgY\\afl`]Hjgegl]Yf\K]d][l

k][lagfkg^l`]nYdm][`Yafaf[gehYjakgflgkh][aYdaklk&;j]\aZadalqaff]oYj]YkoYkYdkg

seen as an issue for banks to overcome when participating outside of the payments

sphere. In all, 12% of respondents suggested that banks should remain solely in the

Hmj[`Yk]klY_]g^l`]nYdm][`Yaf&

Banks are not the organizations to help consumers select and choose which productsto buy.


More than

80%of respondents believe

banks can supporttargeted digitalmerchant promotions


28/40

26

Smart Commerce


HYjla[ahYflka\]fla]\l`j]]eYaf[`Ydd]f_]klg\]dan]jq

g^KeYjl;gee]j[]kljYl]_a]k2

1. Overcoming conservative internal cultures

2. Selecting the best solution when there is no clear winner and fraud/data security

risks are a key concern

3. Ensuring regulators are kept up-to-speed

Most banks need to overcome a conservative culture, which nearly two-thirds say does

not support rapid innovation and change and nearly one-third feels is concerned about

the cannibalization of other services.

What are the key challenges you face in delivering yourSmart Commerce strategy?

For banks and credit card processors (and even one or two of the digital payment providers)

l`]\a^[mdlqg^[j]Ylaf_Y[mdlmj]kmhhgjlan]lgjYha\affgnYlagfYf\\]n]dghe]flakk]]f

ZqeYfq.*!YkYc]q[gfkljYaflgfKeYjl;gee]j[]hjg_j]kk&Oal`l`]Zmj\]fg^

legacy systems, are many banks even capable of the overhaul necessary to deliver the more

accelerated new product development that consumers now demand? Our respondents

[gf[]\]Yegj]]flj]hj]f]mjaYd[mdlmj]j]hj]k]flkYka_fa[Yfl[`Yf_]afYhhjgY[`^gj

organizations better known for robust and lengthy testing processes, and for building

bespoke in-house technology rather than buying bolt-on solutions. This conservative culture

Ydkgf\kYfgl`]j][`gafl`]*1g^j]khgf\]flk^gjo`ge[gf[]jfYZgml[YffaZYdarYlagf

of existing banking payment products is seen as another potential roadblock.

Designing from the perspectiveof the merchant and consumer

Base: Financial services' respondents (34)

32%

32%

29%

24%

Creating a culture of rapidinnovation and development

K]d][laf_kgdmlagfkoal ]fgm_ ]paZadalqlgmaintain technical and customer relevance

Gaining the internal share of voice and

afn]kle]fl gjl ]ghhgjlmfalqafl ][gfl]plg gl ]jeYbgjaf\mkljq[`Ydd]f_]k Y[]\

9[[]hlaf_l Ylf]ok]jna[]keYq[YffaZYdar][mjj]flk]jna[]k


29/40


30/40

28

Smart Commerce


What are the key operational risks that Smart Commerce providerswill have to manage in order to succeed?

L`]c]qgh]jYlagfYdjakcl`YlKeYjl;gee]j[]kgdmlagfhjgna\]jk`Yn]lgeYfY_]

regards the security of customer data in an environment where new devices and

participants will become part of the commerce ecosystem. Two-thirds mentioned fraud

YkYc]qgh]jYlagfYd[gf[]jf$-1\YlYk][mjalqYf\+0egZad]Yf\\a_alYdl][`fgdg_q

security the top three responses to this question.

O`ad]eYfqfYf[aYdk]jna[]khjgna\]jk`Yn]jgZmkld]_Y[qkqkl]ekYf\hjg[]kk]k

to help prevent and manage fraud risk, our respondents expressed concerns that thehjgda^]jYlagfg^kgdmlagfkgff]oYf\dYj_]dqmfl]kl]\hdYl^gjeke]YfkKeYjl;gee]j[]

is vulnerable to fraud.

According to our survey, these concerns are compounded by the potential scale and

\]hl`g^[mklge]j\YlYl`YlYj]dac]dqlgZ]afngdn]\afbgaf]\%mhKeYjl;gee]j[]

solutions and by the sheer number of parties likely to be involved in a single customer

purchase journey.

9fmeZ]jg^fYf[aYdk]jna[]kj]khgf\]flkYdkg]phj]kk]\[gf[]jfkl`Ylf]okgdmlagfk

providers are operating with less stringent risk models that will put the entire Smart

;gee]j[]afalaYlan]ZY[cq]Yjka^YeYbgjk][mjalqgj^jYm\Zj]Y[`g[[mjk&L`]j]o]j]

differing views expressed about whether banks would ultimately suffer reputational

damage in the event of a security breach outside of their control.

Mobile/digital security risks

Customer permissions risks

Payment process risks

Brand-contamination risks

Base: Financial services' respondents (34)

38%

Data security risks 59%

Fraud risks 68%

32%

26%

24%




Security and fraud arethe biggest issues.Data is just not goingto be secure thingsare not going to be

private and theresnot much you cando about it. In thatcontext customerpermissions maywell end up becomingn]jqka_fa[Yfl&

Retail Bank

(Europe)


31/40


32/40

30

Smart Commerce




Historically we have talked to ourselves when developing, rather than looking at the

merchant and consumer. There has also been a tendency to focus on protecting the

revenues we have. Looking forward, we have to decide who we are designing for is it a

52-year-old, or his 20-year-old daughter?

Card Processor (Americas)

We want to design solutions from the perspective of the merchant and consumer

but often get caught up in internal way of thinking.


9[[gj\af_lggmjj]khgf\]flk$l`]dY[cg^nakaZadalqYklgl`]Z]klYhhjgY[ eYc]k

kljYl]_a[hdYffaf_\a^[mdl$mf\]jhaffaf_l`]aehgjlYf[]g^j]lYafaf_]paZadalq&

One in four agreed that they still do not have a clear M&A strategy to support their

KeYjl;gee]j[]YeZalagfk&O`ad]Zmqaf_f]ol][`fgdg_qoYk^Yngj]\ZqgfdqY^]o

respondents, many of those that did believe acquisitions or commercial partnerships

`Y\Yjgd]lghdYqafddaf_kcaddk]l_Yhkj][g_far]alYkYoYqg^^YklljY[caf_l`]aj

KeYjl;gee]j[]kljYl]_q&

In contrast, some respondents saw acquisitions as a high-risk strategy, though it was

unclear from responses whether that view held consistently across hardware and software,

Y[jgkkY[imakalagfkg^Yddkar]kgjYlYddhgaflkafl`]nYdm][`Yaf&:YfckYdkg]phj]kk]\

concerns about committing to a single technology and the importance of retaining

l][`fgdg_q]paZadalq&L`]afl]flagflghYjlf]joal`l`aj\%hYjlql][`fgdg_qhjgna\]jk

lgk]]o`YlogjckoYkY[geegfj]khgfk]&

The answer is not clear today. Other banks want to be a leader in this space, but we are

still unsure on how to address the issue. We want to be a smart follower to leverage what

comes up and keep our options open.



33/40

31

Smart Commerce


Others feel they must also get regulators ready for Smart Commerce.

In some areas, regulators are seen by respondents to be somewhat in denial at the large-

scale adoption of new payment processes that could easily fall outside of the existing

regulatory framework. Some banks articulated the view that the newer payment solutions

are already operating beyond the remit of a single regulator. However, banks recognize

the role they have to play in helping to educate regulators and in shaping regulation that

akl^gjhmjhgk]afl`]ogjd\g^KeYjl;gee]j[]&

Within Europe, there is some debate over the need for single, cross-border regulations

lgj]hdY[]YhYl[`ogjcYhhjgY[`g^\a^^]jaf_fYlagfYdj]_mdYlagfkYkKeYjl;gee]j[]develops. Will a standard emerge led by a few key industry players?

The current regulatory mindset is based on a world where the bank owns the payment

system, but Smart Commerce changes this and regulators are not ready for this.


There will have to be changes to recognize that new organizations are entering

l`]kmhhdq[`Yafl`Yl\gflll`]]paklaf_\]falagfkg^j]_mdYl]\jekZq]paklaf_

authorities, for example, a company that maintains electronic/digital wallets; does

alll`]\]falagfg YfYf[aYdafklalmlagfgjY\]hgkallYc]j7



34/40

32

Smart Commerce


Most participants also need to address gaps in skills

and capabilities notably in distribution, mobile app

development and in social media.

L`]af\ana\mYdj]khgf\]flko]j]Yddafngdn]\afl`]KeYjl;gee]j[]nYdm][`YaflgY

greater or lesser degree but had varied roles within their organizations. Even accounting

for these differences, our bank participants expressed needs for a broad range of additional

[YhYZadala]klg\]dan]jl`]ajafl]f\]\KeYjl;gee]j[]kljYl]_a]k&L`]eYbgjalqà_`da_`l]\

two or three capabilities where they believed their organization needed to add to existingresource and skill sets.

Oalàfl`]ZjgY\[Yl]_gjqg^F]okcaddk$egZad]hjg\m[lYf\Yhhda[Ylagfkcaddko]j]Y

particular area of need cited. Meanwhile, enhanced distribution capabilities to retailers

Yf\Y\\alagfYdhjgeglagfkcaddk$hYjla[mdYjdqafl`]Yj]Yg^kg[aYde]\aY$o]j]a\]fla]\Zq

`Yd gjegj]g^gmjj]khgf\]flk&Hj]\a[lYZdq$Ykegklj]khgf\]flkYj]]klYZdak`]\fYf[aYd

k]jna[]khdYq]jk$^]o]j^]dll`Yll`]ajfYf[aYdeYfY_]e]fl[YhYZadala]kf]]\]\

Ym_e]flYlagflgkmhhgjll`]ajKeYjl;gee]j[]kljYl]_a]k&

Where interviewees planned to augment skills, most felt that recruitment was the preferred

approach over training or acquisition of an established business. The change required for

KeYjl;gee]j[]làfcaf_oYk$^gjeYfq$lgg_j]Yllg]ph][l]paklaf_klY^^lgZ]YZd]lg

Y\Yhlafk`gjl]fgm_`lae]k[Yd]k&:jaf_af_aff]oklY^ôYkk]]fYkY_gg\[YlYdqkl^gjlàk[`Yf_]&:mlY[imajaf_Yo`gd]Zmkaf]kk]&_&$YegZad]kg^loYj]\]n]dghe]flZmkaf]kk

was generally considered too much of a risk, and most wanted to manage the transition

from using third-party support to providing this internally more gradually.

Our decision on which route to take to address capability shortfalls depends on the

urgency. Mostly we like to build in-house, but if its urgent and its available we shouldnt

be afraid to buy.


60%of respondentshighlighted a needto bolster distributionto deliver their Smart;gee]j[]kljYl]_q&


D. Skill and capability gaps


35/40

33

Smart Commerce


O`a[`g^l`]n][gehd]e]flYjq[YhYZadalqlqh]kk`gofZ]dgo\g]k your organization need to deliver its Smart Commerce strategy?

:Yk]2>afYf[aYdk]jna[]kj]khgf\]flk+,!

Multiple-choice question whereby respondents selected all the categories that applied to them.

New technology resources

For example:

Handsets

Mobile network

Mobile software

Applications

EgZad]'\a_alYdjakceYfY_]e]fl

technology

Data warehouse and analysis

F]ofYf[aYdeYfY_]e]fl[YhYZadala]k

For example:

;mklge]ja\]fla[YlagfYf\n]ja[Ylagf

9ml`gjarYlagf'k]lld]e]fl

;j]\alYf\^jYm\jakcYkk]kke]fl

Funding

Payment

Deposit taking

New distribution resources

For example:

Mobile customer bases

Retailer relationships

Payment acceptance capability

(POS and remote)

;gfkme]j'j]lYad]jZjYf\k

New skills and capabilities

For example:

E9'hYjlf]jk`ah\]n]dghe]fl


36/40

34

Smart Commerce


:gl ZYfckYf\j]lYad]jk Yn]o]dd%]klYZdak`]\\akljaZmlagfklj]f_l`k$q]l.(g^j]khgf\]flk

à_`da_`l]\Yf]]\lgZgdkl]j\akljaZmlagflg\]dan]jl`]ajKeYjl;gee]j[]kljYl]_q&

Partnership was seen as the preferred route by banks seeking new distribution, focused

as they are on enabling merchants to accept their payment and other solutions. Such

partnership may take the form of a straightforward commercial arrangement to access

a retail client base through e.g., a promotions management company rather than a

more complex partnership or joint venture, which might be valuable if joint development

were required.

F]Yjdqlog%làj\kg^gmjj]khgf\]flkYdkga\]fla]\Yf]]\^gjf]ol][`fgdg_qkhYffaf_

wallets, payment services, data warehousing and analytics software and mobile apps for

ZYfcaf_$h]jkgfYdfYf[]eYfY_]e]flYf\e]j[`Yflhjgeglagfkmhhgjl&9^YajfmeZ]j

suggested that they would expect to use the technology built by third parties (e.g., the

card schemes digital wallets) to support their strategies but some banks still plan to build

such solutions internally. Where respondents expanded on their intentions to build new

technologies in-house, many did so in reference to the culture of their organization and

l`]\]kaj]lgZmad\Yf\gof]n]jqlàf_&

Segmentation, customer modeling, marketing (technology) because theyre available

and we need them quickly and Im not too worried about building in-house.



D. Skill and capability gaps


37/40

35

Smart Commerce



38/40

36

Smart Commerce


This is an exciting time to be involved in consumer

commerce. However, the speed of change and uncertainty

g^KeYjl;gee]j[]Ydkgd]Y\klgka_fa[Yfl[gf[]jfk&

One of the most surprising insights from this study was

the real and widespread fear articulated by established

gj_YfarYlagfkl`YlKeYjl;gee]j[]\]n]dghe]floadd

j]kmdlafafl]je]\aYlagf$oal`hgl]flaYddqka_fa[Yflconsequences for banks that go well beyond payment

service revenues.

L`]k]^]YjkYj]o]dd^gmf\]\&L`]f]ohdYq]jkafl`]KeYjl;gee]j[]nYdm][`YafYj]

already demonstrating aggressive business models that are vastly different from the

traditional payment and banking model. These models are based on rich data on consumer

transactions that cross-subsidize payment services by promoting and sharing in merchant

Yf\eYfm^Y[lmj]jhjglhggdkoal`hgl]flaYdlg^mjl`]j\akhdY[]ZYfckljY\alagfYdhdY[]af

the purchasing experience.

That so many of the respondents see themselves as potential providers of broad and

afl]_jYl]\KeYjl;gee]j[]kgdmlagfkak$o]Z]da]n]$YfY[cfgod]\_e]flg^làkl`j]YlYf\addmkljYl]k gjmk`gok]jagmkdqlàkakkm]akZ]af_lYc]faffYf[aYdk]jna[]afklalmlagfk

Y[jgkkl`]_dgZ]&Af\]]\$KeYjl;gee]j[]akgf]g^l`]^]oYj]Ykg^ka_fa[Yfl

discretionary investment still remaining in many banks in an environment of heightened

regulatory pressure and general cost reduction.

L`]\a^^]jaf_hY[]g^KeYjl;gee]j[]Y\ghlagf_]g_jYhà[Yddqakq]lYfgl`]jkljYl]_a[

challenge facing banks and a variety of strategies and partnerships are likely to unfold

against this backdrop. Larger banks may be able to leverage their distribution reach in

hYjlf]jkàhoal`keYdd]jjekl`Yl`Yn]YlljY[lan]KeYjl;gee]j[]l][`fgdg_qZmlfg

[d]YjhYl`lgeYjc]l&E]Yfoàd]$d]kkY__j]kkan]Yf\d]kkY_ad]fYf[aYdk]jna[]k_jgmhk

k`gmd\k]]l`]\]^]fkan]nYdm]af\]n]dghaf_KeYjl;gee]j[]k]jna[]klgeYaflYaf

competitive parity with payment intermediators (both new entrants and other banks).

AfYdd[Yk]k$`go]n]j$o]Z]da]n]l`YlYemdla%kljYf\KeYjl;gee]j[]kljYl]_qakoak]oàd]ka_fa[Yflmf[]jlYaflqafYfmeZ]jg^\ae]fkagfkj]eYafk&Làk[gmd\e]Yfjmffaf_

for a period with parallel or competing solutions.

LgeYaflYafj]d]nYf[]lgl`]aj[mklge]jk$ZYfckYf\hYqe]flhjgna\]jkoadd`Yn]lgf\

oYqkg Y[[geeg\Ylaf_l`]jYha\\]n]dghe]fllae]k[Yd]k\]eYf\]\ZqKeYjl;gee]j[]

within organizations used to a much slower pace of change. They will also need to think

aff]ooYqkYZgml`gol`]ajKeYjl;gee]j[]k]jna[]k[YfY\\nYdm]afl`]ZjgY\]j

context of consumers lives and merchants businesses as well as addressing the new

fraud and data security risks they present.

Our views and recommendations^gjfYf[aYdk]jna[]kafklalmlagfk

:Yfck^Y[]kge]k]jagmkthreats and the riskof gradually beingdiminished to utilitystatus. However,if they make the right

choices, banks couldf\l`]ek]dn]kenjoying a continuedand expanding role atthe forefront of theKeYjl;gee]j[]revolution.


39/40

Smart Commerce


37

For many this will involve relearning the merchant business with which many banks have

dgkl[gff][lagf&Af\]]\$e]j[`YflkYj]l`]f]onYdm]hggd^gjKeYjl;gee]j[]Yf\Yj]

innovating on their own account with services including payment. Larger merchants

(particularly online but also in physical retail) are already offering proprietary payment

services, which intermediate banks and threaten to go further. Smaller merchants will

YdkgoYfllgmk]l`]hgo]jg^KeYjl;gee]j[]kgdmlagfkhjgna\]\Zql`aj\hYjla]klg

enable them to punch above their weight.

With so much in this space still to be determined, we believe that the next few years hold

l`]hjgeak]g^Yj]Ydkl]h%[`Yf_]af[gfkme]j[gee]j[]&:Yfck Y[]kge]k]jagmkl`j]Ylk

and the risk of gradually being diminished to utility status. However, if they make the right

[`ga[]k$ZYfck[gmd\f\l`]ek]dn]k]fbgqaf_Y[gflafm]\Yf\]phYf\af_jgd]Yll`]

^gj]^jgflg^l`]KeYjl;gee]j[]j]ngdmlagf&


40/40

Ernst & Young

Assurance | Tax | Transactions | Advisory

About Ernst & Young

Ernst & Young is a global leader in assurance,

tax, transaction and advisory services.

Worldwide, our 167,000 people are united

by our shared values and an unwaveringcommitment to quality. We make a difference

by helping our people, our clients and our

wider communities achieve their potential.

Ernst & Young refers to the global organization

g^e]eZ]jjekg^=jfklQgmf_?dgZYd

Limited, each of which is a separate legal entity.

=jfklQgmf_?dgZYdDaeal]\$YMC[gehYfq

limited by guarantee, does not provide services

to clients. For more information about our

organization, please visit www.ey.com.

About Ernst & Youngs Global Banking

& Capital Markets Center

In todays globally competitive and highlyregulated environment, managing risk effectively

while satisfying an array of divergent stakeholders

akYc]q_gYdg^ZYfckYf\k][mjala]kjek&

=jfklQgmf_k?dgZYd:Yfcaf_;YhalYd

EYjc]lk;]fl]jZjaf_klg_]l`]jYogjd\oa\]

team of professionals to help you achieve

your potential a team with deep technical

experience in providing assurance, tax,

ljYfkY[lagfYf\Y\nakgjqk]jna[]k&L`];]fl]j

works to anticipate market trends, identify the

implications and develop points of view on

relevant sector issues.

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ContactsGlobal Financial Services

David Barker

Partner

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Americas Financial Services

Bernhard J. Klein Wassink

Principal

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Melanie Henderson

Senior Manager

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9kaY%HY[a[>afYf[aYdK]jna[]kRichard Williamson

Partner

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EMEIA Financial Services

Tariq Khatri

Partner

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Jon MaleDirector

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Japan Financial Services

Noboru Miura

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