Financial Services Approach to External Data
Monetization – The mobile commerce and payments
battle
Dirk Rohweder
DIGITAL DISRUPTION- FINANCIAL INDUSTRY
Disruptors
Pillars of
disruption
Mobile
Traditional
Business
Models ?
Social
Digital disruption has demolished
52% of the Fortune 500 since 2000
(SOURCE: CONSTELLATION RESEARCH,
2014)
Cloud
Big Data Analytics
“Banking industry is finally ripe for digital
disruption. The financial services industry
has yet to experience digital disruption that
radically changed other sectors, such as
retail and media.” Source Bryn Glick, 2015
THE MOBILE COMMERCE AND PAYMENTS
ECOSYSTEM BATTLE
FinTech
Sweet
spot
Big Data
Analytics
Real Time
Marketing
COMMERCE - THE BANKING OPPORTUNITY !
….of users are willing to buy goods and services by
mobile.
… but most of mobile shoppers are just browsing through
m-shops, not completing their purchases on mobile devices.
Main barriers for m-commerce adoption are security concerns and
worries about spending more than a consumer can afford.*
*According to: SAP -The Mobile Consumer Insights on Global Trends Impacting Mobile Momentum and Customer Engagement
FINANCIAL SERVICES MONETIZATION
Bank Ecosystem
• Banks directly target
consumers with relevant
messages
Bank Led Ecosystem
Smart Hub Ecosystem
• Banks lead an own
ecosystems based on
their card customers
• Bring together data from
different sources and
broker it
• Banks hyperprofile their
customer base
• Banks provide 3rd party
targeted Offers & Ads to
their customer base as an
additional revenue stream
• Additional revenues from
aggregating data by
selling insights
• Banks differentiate their
core product offering by
providing relevant
information
• Banks strengthen the
relationship with their
customers by providing
additional value
• Banks offer highly relevant
rewards to their customers
from a partner ecosystem
Bank
opportunity
Bank
opportunity
• Additional revenues by
facilitating advertisement
and commerce
Industry / Cross
Industry
opportunity
THERE IS A COMMERCE & INSIGHT SERVICES
OPPORTUNITY FOR FINANCIAL INSTITUTIONS
Extended Smart
Wallet
Extended Smart
Network
Extended Smart
Store
Extended Smart
Life
Commerce
Advertising
Extended Smart
Media (TV &Video)
Content
Services
Consumer Base
Aggregated, Anonymized Data
Insight Services
•Data matching
•Rich Customer Segmentation
•Rich propensity to act models
•Transport & Infrastructure Planning
•Site planning (Retail, ..)
•POI audiences (Venues, outdoors, ..)
•Smart Digital Signage
•Benchmark& Insight Reporting
•Industry Coding
SMARTNESS IS CREATED FROM CONSUMER
CHARACTERISTICS & CONSUMER CONTEXT
Consumer Characteristics
Demographics
• Gender
Buying Behavior
Interest
Attitudes
• Age
•
Shopping basket
•
App usage
•
Brand attitudes
• Income
•
Financial transactions
•
Web browsing
•
Customer
Satisfaction
• Education
Aspirations
Consumer Base
Geofences
•
Navigation
•
Environment
•
Weather
•
Pollen
•
Roadworks
Lifestyle
•
Health & Fitness
•
Environment
Lifestage events
Location
•
•
Sentiment
Time
•
Day of the week
•
Time of the day
Role
Intent
•
Business
•
Search
•
Private
•
Navigate to
Context and trigger events
•
Emotion
•
Mood
•
Relocation
•
Marriage, Divorce
ADDITIONAL INFORMATION SERVICES
1. Download open 2. Create geographical
clusters of high
crime data
crime with SAS
3. Create actionable 4.
geofences from
clusters with SAS
Send notification
if geofence is
broken
£
Other MyBank cardholders have reported
fraud in the Shoreditch
area. Please take care of
your card! For card safety
tips go to
www.mybank.com/safe.
12 Jun 13:35 via SMS
SUPERWALLET OR EXTENDED SMART WALLET
„We think mobile wallets will succeed if they
reinvent themselves as all-in-one apps that
will integrate all of a consumer's shopping
and finance needs into one place (…)”
Business Insider, BI Intelligence
white-label, in-app commerce platform for
banks which combines m-banking, m-commerce
and m-payments
makes bank’s customers able to buy daily
groceries, bus, train, parking or cinema tickets,
order take-away food, taxis or book flights. All
this within one bank app and one UI.
SUPERWALLET OR EXTENDED SMART WALLET
1. Activation
2. Set Preferences
5. View Offer on Map
3. See Featured Offers
Customer benefits
• Daily activities made fast and
simple
• All-in-one app from trusted
brand
• One unified UI for all services financial, payment and
commerce
• One click to order-pay-send
• One login/PIN (vs. many logins
and pwds) for many services of
ecosystem
• Safety ensured by bank
9. Redeem in
store
8. Buy in app
with Instant
Mobile
Checkout
7. Get Offer
6. View Offer Details
4 STAGES OF CARD LINKED OFFERS
SKU Based
Offers
Reward
Exchange
Value based
Loyalty Program
Value based
Cash back Offers
1. Value Based Cash back offers
to consumers
2. Value Based Loyalty Program
(convert cash back into loyalty
points)
3. Offer Rewards from Partner
Ecosystem
4. Targeted offers for specific
products (Brands / Product
Categories)
USER STORY 1
Opportunity – Increase
sales and loyalty through
‘top up’ shop
Step 2 – Targeted Offers
Emilia browses through the offers in
the home banking app and selects an
offer for Retail A. This is close to
where she lives and was selected as
a target offer by the analytics within
the CLO platform based on her past
spending.
Analysis– People that
live near a Retail A Store
Propensity– Spend in
both Retail A stores and
competitor stores
(NACE)
0
2
0
4
Step 4 – Second Shop
Emilia was delighted with both the
price and the quality of the produce
that she bought at Retail A so the
following day she returns to buy
more wine as well as bread, milk
and salad.
Urban Shopper
Offer– Offers for smaller
Retail A group stores
0
1
Step 1 – Home
Banking Application
Emilia is logged on to her
home banking application
and opts in to the new Card
Linked Offer Scheme
0
3
Step 5 – Reward
Receipt
Step 3 – Shopping
Experience
Coming home from work
Emilia goes in to her local
store and buys a few
essential items for her
evening meal. She also buys
a bottle of wine which is on
offer in the store
0
5
At the end of the
week Emilia is on her
way home when she
receives an SMS
from her bank telling
her that her account
has been credited by
€5,65 as a result of
her purchases.
FINANCIAL INSIGHT SERVICES


Transaction data
 Transaction type (ATM, Home Banking,
POS)
 Card (cardtype, issuer)
 Time of transaction
 Place of transaction
 Amount
Enrich transaction data
 Customer profile (country of origin)
 Customer profile (enhance with bank
data (anonymized)
 Time information (public holiday,
school vacation)
 Place (geocode) add Points of Interest
and shop outlet locations
 Merchant codes (classify POSs)
 Retail Hierarchy ( Aggregate POS)
 Time/place (events like festivals that
influence shopping behavior)

Market Share Insight:
Spend and number of trips relative to
competition analyzed by different regions
or times of the day including trending and
forecasting

Customer Loyalty Insight:
What is my share of wallet with
customers in my category. What other
categories do these customers spend
their money with

Customer churn:
Where do new customers come from and
to whom do I loose customers (loose but
also reduced share of wallet)

Customer Segmentation
New forms of customer segmentation
based on total wallet spend

Store location analytics
EXTERNAL MONETIZATION STREAM
Market
assessment
Data and
capabilities
Assessment
Pilot and
Trial
• Evaluate top use cases
• Estimate market potential (3-5 years)
• Conduct competition analysis
• Evaluate current assets and capabilities
• Identify gaps
• Quantify investments necessary to close gaps
• Identify partners (retailers) and customers
• Pilot with friendly customers
• Validate use case
Thank you