mobile banking: baby steps to get in the game - treasury strategies · w w w . t r e a s u r y s t...

© 2011 Treasury Strategies, Inc. All rights reserved.

Mobile Banking: Baby Steps to Get in the Game

May 19, 2011

PRESENTED BY: Phil Capodice, Consultant, Treasury Strategies

George Ravich, EVP & Chief Marketing Officer, Fundtech Ltd.

w w w . T r e a s u r y S t r a t e g i e s . c o m 2!

A New Path to Growth . . . and Challenges


Understanding the Underlying Forces


The Social Backdrop

1G - 1978

2G - 1991

3G - 2001

4G - 2008


Current Norms: •  User comfort •  Ubiquitous presence •  Immediacy

The Social Backdrop

1G - 1978

2G - 1991

3G - 2001

4G - 2008


Commercial Mobile Banking

1997: Merita Bank offers retail banking via text message: Coke anyone?

2006: Wells Fargo offers mobile alert services to small businesses

2007: Wells first to offer mobile banking app for corporates: CEOMobile

2010: Fundtech introduces Mobile ACCESSplus


Current Use is Limited

Reasons for Not Using Mobile Applications

Current bank(s) do not offer a mobile application for treasury or payments

Other

Don't believe data is secure

Don't use mobile devices

Do you use mobile banking applications for Treasury?

No

Yes


Comparison Between Norms

Personal Mobile Use

User comfort

Ubiquitous presence

Immediacy

1G - 1978

2G - 1991

3G - 2001

4G - 2008

1997: Merita Bank offers retail banking via text message: Coke anyone?

2006: Wells Fargo offers mobile alert services to small businesses

2007: Wells first to offer mobile banking app for corporates: CEOMobile

2010: Fundtech introduces Mobile ACCESSplus

Corporate Mobile Banking

Security concerns

< 4% of corporate users

Immediacy


Typical Treasury Structure

Median Worldwide Treasury FTE

0

5

10

15

20

Asia-Pacific Europe North America

Middle Market Mid-Corporate Large Corporate

<$1 Billion $1-5 Billion >$5 Billion Revenue:


User Base By Region

12%

13%

13%

25%

15%

15%

16%

12%

All other geographies (n=41)

Asia-‐Pacific (n=61)

North America (n=87)

Western Europe (n=121)

Q: If your bank were to offer mobile corporate banking services in the next 12 months, how likely would you be to use it to perform advanced

func@ons?

Very Likely Likely

Source: Aite Group, 2010


What Do They Want?

Information

Execution


What Do They Want?

31.0%

46.0%

56.0%

61.0%

70.0%

83.0%

99.0%

Reset user passwords

Other

Execute trades

Release payments

Approve payments for release

Confirm trades

View balances

Desired Uses of Commercial Mobile Banking

Source: 2010 TSI survey of 539 treasury practitioners globally


Other Insights

Extension of TMS

Easy to learn

Increased convenience

© Copyright 2011, Fundtech Ltd. All Rights Reserved.

Mobile Corporate Banking Baby Steps to Get In The Game

Thank You for Attending Today !


  Very brief company background

  Emergence of mobile corporate banking

  Mobile ACCESSplus

  Demo

Topics


Fundtech’s Operations Geography – 16 locations, 4 continents

5 Development Centers 2 Managed Service Centers 3 ASP Data Centers 16 offices

Sales by Geography

Europe 40%

North America 40%

ROW 20%

San Francisco

Los Angeles

Boston

Atlanta New Jersey

Frankfurt

Australia

Singapore

Tokyo

London Zurich

Geneva Wales N’ham

Pune

Tel Aviv

Revenue $142


Fundtech’s Product Domain

Bank Opera@ons Customer Facing

Payments (Domes@c, Cross-‐Border, SEPA, FX)

High Value Payments

ACH

Bank Liquidity Management

CLS

Mass Payments

Payments Services Hub

Financial Messaging

SWIFT

SWIFT Corporate Access

RTGS Connec@vity

Cash Management/ Electronic Banking

Cash Management

Domes@c & Mul@-‐Country Cash Management

Financial Supply Chain

Electronic Invoice Presentment and

Payment

Supply Chain Financing

Bacs Payments

Corp. Liquidity Management

Corporate Expense Report Mgt.

Cash Flow Opera@ons

Current Product Portfolio

Mobile Corporate Banking 2011 Presentation


Usage of Mobile Banking Services

  Fast growth in consumer use of mobile banking services.


Growth in Tablet Computers

  Tablets are a new business productivity tool.

  A “game changer” for mobile corporate banking

“Many business have raced to snap up iPads” Aug.24, 2010


Global Research of Treasury Execs.

  Fielded with gtnews October 2010   Analysis done by AiteGroup   320 Total respondents

Respondent Demographics


  Interest / Likely to Use –  65% likely to use basic functions –  56% likely to use advanced functions

  Key Benefits –  39% Anytime access to account info. –  38% take immediate action

  Key Concerns –  65% say that security is a concern –  Of those not interested – security is the reason

Key Findings


Willingness to Pay for Service

  49% willing to pay extra for mobile services   Fixed annual or transaction fee


Conclusions

“…first-mover advantage exists for any institution addressing the unmet market need for corporate mobile banking.” “Whether to offer corporate mobile banking services is something that all commercial banks around the globe should be considering.”

Christine Barry


  54% say mobile corporate banking top/very important priority

  42% rated customer interest extremely or very high

  31% believe its a competitive differentiator for their bank

  77% think fraud/security is biggest barriers to growth

PaymentsLIVE! Reasearch

The survey of 267 bankers


PaymentsLIVE! Research

Is mobile banking services an incentive for small businesses to move from the retail platform to the cash management platform?

168 banker responses

Mobile ACCESSplus The first mobile corporate banking platform


  Handle multiple operating systems   Institute security   Deal with mobile networks   Connect into bank’s backend / become a channel

Mobile ACCESSplus Platform and Apps


Which Platform and Devices ?

Platforms targeted by Mobile Applications in 2010


Which Platform and Devices ?

Projected platforms targeted by Mobile Applications in 2011


Mobile ACCESSplus Devices


Apps. Customized for Each OS – Ease of Use


Registration Daily Use Termination

Security Life Cycle


Security – Registration

Password

Digital Certificate

Activation

Approved

Mandate

Corporate KYC


  Authorization   Digital Signing   Encryption

–  Transmission –  Storage

  Location –  GPS feature in smartphones

Security - Daily Use


  Natural / Voluntary   Mandate revoked   Lost / Stolen

–  Remote Kill –  Encrypted Store

Security - Termination


  Visibility   Real-Time Information   Approval & Release   Payment Initiation   Payment Capture   Administration

Capabilities / Apps.

Treasurer +

Sales Person +

Managing Director


Leveraging Existing Infrastructure


CASHplus

CASHplus Desktop


CASHplus


Accountis EIPP


A New Path to Growth . . . and Challenges


Questions

Phil Capodice Consultant Treasury Strategies 312.628.69xx [email protected] George Ravich EVP & Chief Marketing Officer FundTech 201.215.6530 [email protected]


About Treasury Strategies, Inc.

Who We Are Treasury Strategies, Inc. is the leading treasury consulting firm working with corporations and financial services providers. Our experience and thought leadership in treasury management, working capital management, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions.

@TreasuryStrat

www.TreasuryStrategies.com/ networking/netCommunity.htm

What We Do Corporations We help you maximize worldwide treasury performance and navigate regulatory and payment system changes through a focus on best practices, technology, liquidity and controls. Treasury Technology We provide guidance through every step of the technology process. Our expert approach will uncover opportunities to optimize the value of your treasury through fully integrated technology solutions. Financial Services Our experience, analytic approach and benchmarks provide unique consulting solutions to help you strengthen and grow your business.

mobile banking: baby steps to get in the game - treasury strategies · w w w . t r e a s u r y s t...

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