Gearing up for a

mobile world

Naresh Vyas

Global Head, Channels

Group Technology and Operations

Standard Chartered Bank

2

Content

Market Landscape & Technology Enabler

Opportunities & Differentiation

Our Approach

Result

3

Mobile: the largest channel in our footprint…

Mobile operators have spent more than

$234 Billion USD building networks since

2002

There are 3.3 billion GSM connections worldwide

with 1.2 million new connections everyday

By 2013, mobile phones will overtake PCs as the most

common Web access device worldwide

64% of mobile users are in emerging markets

The world’s biggest GSM markets are China (483m),

India (176m) and Russia (168m)

By 2013, mobile payments are expected to cross

$ 600 Billion USD

By 2015, context will be as influential to mobile

consumer services and relationships as search engines are to the Web

Nearly 7 billion text messages are sent daily

By 2014, more than three billion of the world’s adult population will be able to transact electronically via

mobile and Internet technology

Source: GSMA

4

…with aggressive growth forecasted

for every 1 internet connection 7.4 mobile connections

there are in China & India

471 405

1,225

286 330

2,717

523 476

1,880

331

598

3,808

533 496

2,328

346

784

4,487

West Europe East Europe Asia USA Africa & Middle East Total

Number of mobile phone users (in Million)

2007 2011 2015 2007 2011 2015

65% of mobile users will be based in Asia, Africa &

the Middle East by end of 2012 The fastest growing

channel in our

markets…

Europe Americas Australia

…and Technological Advancement

Enhanced Display

resolution support

Enhanced Multi-Media

functionality

Updated WEB

Technologies

‘QWERTY’ keyboard

Easy Navigation

Touch Element

Intuitive sensor

technologies

Improved Security

Under lying Technology

Device Evolution

5

6

Content

Market Landscape & Technology Enabler

Opportunities & Differentiation

Our Approach

Result

Walking in the Customer’s Shoes

Fast paced lifestyle – Need for round-the-clock banking.

Unproductive “Wait” Time at branch, ATMs, phone banking, traffic jams, airport lounge etc.

Keeping track of payments on the move. For example, utility bills, school fees.

Concern about security. For example, instantaneous fraud notifications of transactions

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8

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Balance Enquiry

Mini-statements

Check Book/ Card

Request

Account Activity

Alert

Own Account

Funds Transfer

Credit card

payment

3rd Party Funds

Transfer

Portfolio View

FX Alerts

Not Applicable

SMS Marketing

Apply via SMS

ATM Locator

Alerts from other

systems like loans,

mortgages

Alerts on

cards/loan

processing and

approval

Mobile Top Up’s

Bill Payment

Bill presentment

P2P Payment

International

Remittance

Micro payments

Online Stock

Trading

Real-time Stock

Quotes & Alerts

Movie and airline

ticketing

Integration with

local

ecosystems.eg.

NETS (SG),

Octupus(HK)

Contact less

payments e.g. NFC

Location based

services

Enabling

application data

capture on PDA’s

for sales teams

and DSA’s

Mobile Services cover a broad spectrum B

as

ic / H

yg

ien

e

Em

erg

ing

Strong Potential

to Differentiate

Differentiation

limited to usability

MOBILE SERVICES

FU

NC

TIO

NA

LIT

Y

9

…across a range of solutions

Touch Push Pull

Push: Widely adopted with SMS alerts standard offering.

Pull: four competing technologies with no clear winner to date

SMS: Simplest solution. Security concerns and usability limit potential

beyond basic transactions

USSD: More secure than SMS. Menu driven with high dependency on

mobile operator. Limited usability. Popular in Africa markets

Smart Client: Highly user friendly, secure solution capable of meeting

Banking, payments and mCommerce needs. High dependency on

customers downloading clients (still unproven with mass usage).

Mobile Browser: Always on connectivity via internet banking optimized

for mobile screen. High dependency on data packages and mobile

network sophistication.

Touch: Emerging technology based on Near Field Communication

(NFC). Used most widely in Japan (Mobile eSuica) & Korea. Pilots

running in select markets focused on mass transport & retail POS.

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Value Creation Opportunities with Mobile

Cu

sto

me

r V

alu

e

Pro

po

sit

ion

Bank Value

Proposition

Sales & Marketing

Payments &

Transactions

Investment

Services

Banking &

Alerts

mCommerce

HIGH

LOW

LOW HIGH

Focus on completing

rollout of basic

Banking & Alerts to

drive tx convenience &

reduce call centre

volume

Enhance payments and

bill pay functionality

across markets

Exploring options for

launch of a smart client

that integrates

mCommerce & has P2P

payments in its

roadmap.

Significant potential

once regulatory

concerns are addressed

Unclear monitization

model for Banks other

than customer

stickiness

Potential for customer

value if integrated into

their lifestyle needs

MOBILE SERVICES OUR APPROACH

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Content

Market Landscape & Technology Enabler

Opportunities & Differentiation

Our Approach

Result

12

Classification of Markets based on

mobile readiness

Netw

ork

So

ph

isti

cati

on

Handset Complexity

Low

High

High

No Data

WAP

GPRS

EDGE

3G

4G/ Wi

Fi / WiMax

Advanced Mobile

markets

• Advanced regulatory

environment

• High network reliability

and data access speeds

Intermediate Mobile

Markets

• Intermediate-Advanced

regulatory environment

• Low data access speeds

Basic Mobile Markets

• Basic-Intermediate

regulatory environment

• Low network reliability

and data access speeds

KR

SG HK

TW

MY TH

IN

CN

AE

PH

ID

PK

VN

AF

BASIC Mobile

Markets

INTERMEDIATE

Mobile Markets

ADVANCED

Mobile Markets

Legend

Regulated markets

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Proactive customer communication, reduced call volumes at call centers and cost savings

through reduction in paper notifications

Mobile Services Update: Banking & Alerts

MARKET TRENDS

Fraud prevention is driving banks to offer

alerts services.

Increasingly regulators are advising banks

to use this channel for pro-active customer

communication.

OUR APPROACH

Core focus of our “Mobile Offering” .

Our SMS Banking and Alerts offer up to 120

alerts and 18 SMS banking functionalities

Next plan is to increase usage by simplifying

registration and focusing on marketing &

promotional activities.

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Benefit

Hygiene functionality offered increasingly by all Banks with limited points of

differentiation outside usability and ease of registration and sign up. Differentiation

LOW

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Provides transactional convenience which helps makes us the ‘Main Bank’ for our

customers

MARKET TRENDS

This service has been very popular in

Emerging Markets where the level of

regulation is low

Emergence of non-banks like non-bank

financial institutions, telcos and payment

Aggregators

OUR APPROACH

Currently offer own account fund transfer and

card payment and bill payments and inter-bank

funds transfer

Pilot with Local Telecom in Africa to offer P2P

payments including cross border transfers

Offer bill payments and inter bank funds transfer

In future engage with partners to provide cross-

border transfers & P2P payments

Remittances and P2P payments offer significant opportunity for banks but are currently

disallowed in many markets by regulators. In the near future, as regulations ease with

tighter controls on end-users of the service, the market is expected to grow rapidly.

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Mobile Services Update: Payments & Tx’s

Benefit

Differentiation

MED TO HIGH

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Requires significant initial investment and customer education for the successful

rollout

New revenue stream for bank which complements the wealth management offering

MARKET TRENDS

The focus of banks has been to offer online

stock trading

Most amount of progress has been made in

making trade/stock information available on

mobile device

Requirements of real time information and

fast processing makes this viable only in

markets with high mobile data speeds (3G and

above) like KR,HK,SG and AU

OUR APPROACH

Focus on investment and FX alerts.

Smart Client rollout in HK for Market Data and Investment Trading capabilities

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Mobile Services Update: Investments

Benefit

Differentiation HIGH

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Can be achieved by forging local partnerships with right ecosystem players

(telcos/aggregators)

Ability to increase our share of customer wallet and also deepen our customer relationship

MARKET TRENDS

Increase in adoption of contact-less payments using mobile device for retail POS and transportation

Discussions on integration between mass transport vendors and banks to offer NFC based payments

Banking the “unbanked” through Mwallet

OUR APPROACH

Participate in partnerships in high potential

markets. Examples: Partnership with Paymate

in India and Zain telecom in Africa

Smart client rollout in HK and IN to

offer utility payments, funds transfers and

mCommerce transactions

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Mobile Services Update: mCommerce

Benefit

Differentiation LOW to MEDIUM

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Can be achieved by using SMS to provide relevant offers in a non-intrusive manner

and leveraging SMS as part of cross-channel marketing campaigns

Potential low cost customer acquisition channel and allows for targeted marketing

MARKET TRENDS

Increased customer propensity to use SMS and

high cost of traditional sales channels (like

telesales) have led to increased use of SMS as a

marketing channel

Success of IPhone apps has opened up potential

for location-based marketing

OUR APPROACH

Our approach is to continue to use SMS

marketing, with an increased focus on

lead/consent capture in 2010

Due to complexity, location based services are

still expensive to develop and deploy and would

only be applicable to a small percentage of our

customer base due to limited penetration of

GPS-enabled phones.

Banking &

Alerts

Payments &

Transactions

Investment

Services

mCommerce

Sales &

Marketing

Mobile Services Update: Sales & Marketing

Differentiation LOW to MEDIUM

Benefit

18

Content

Market Landscape & Technology Enabler

Opportunities & Differentiation

Result

Our Approach

19

Dec 2008 4

Dec 2009 17

Dec 2010 21

Dec 2011 27

We have grown our mobile footprint rapidly..

Bangladesh

India

Pakistan

Sri Lanka

South Asia

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam

SE Asia

China

Hong Kong

Korea

Taiwan

NE Asia

Nigeria

Botswana

Kenya

Tanzania

Zambia

Ghana

Uganda

Africa

Live/ Pilot

Development

Region

Mobile Bahrain

Jordan

Lebanon

Middle East

Oman

Qatar

UAE

… Mobile solution (Wholesale Bkg)

Fully integrated channels catered to Corporate clients’ needs

Transaction authorizations on-the-go

Trade enquiry and authorisation

High sensitive transactions alerts

RMs Portal – Limit approval, Clearing authorisation, Dispute

resolutions

• Best Integrated Corporate Bank site in Asia, Middle East and Africa

• Best Online Cash Management in Middle East and Africa

• Best Trade Finance Services in Middle East and Africa

• Best Information and Security Initiatives in Middle East and Africa

• Best Corporate/ Institutional Internet bank in China, Ghana, India, Kenya,

Malaysia, Nigeria, Singapore, UAE

Corporate Mobile Banking will be limited to Alerts, Authorisation, MIS, Risk and

operations

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Industry Recognition

Industry Recognition

… Mobile solution (Consumer Bkg)

Fully integrated channels catered to Retail clients’ needs

Browser based Mobile Banking

Smart Client based Mobile Banking (Breeze)

Instantaneous Alerts

• Best Internet Banking in the World

• Best Investment Management Services

• Best Online Consumer Credit Site

• Best Web Site Design

• Best Integrated Consumer Bank Site

Breeze

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Innovative Staff Mobility Solutions

Won 14th Annual Webby Award “The Oscars of the Web”

People’s Choice for Integrated Mobile Experience

Over 10K entries

Beat stiff competition from Vodafone and Honda

Elite list with eBay, Facebook, and Yahoo!

Featured by Apple for Enterprise Mobility

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However …

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Multiple operating systems and industry standards

Wide range in terms of handset sophistication (testing)

Country / region specific settings with mobile operators and

issues with inter-connectivity

Operators charging for mobile services to be offered to their

customers and over their networks

Customer data protection and information security

Recent tightening of controls by regulators (e.g. recent

standards issued by RBI, HKMA, MAS)

KYC and AML concerns with involvement of Non Banking

Financial Institutions (NBFI’s) &Telcos in value chain

Individual Mobile Banking users expect rich and fanciful

features

Corporate Mobile Banking remains ‘transactional’ usage

Prospective Individual Mobile Banking users could be deterred by

additional internet cost

TECHNICAL

REGULATORY

BEHAVIORAL

… industry challenges do exist

Thank you

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