10 Trends Changing the Face of Financial Services Produced By Bohemia Group | 2012

Who are Bohemia Group? Bohemia is a new model, multidisciplinary marketing communications group that marries the art of strategy with the science of media and direct response. We do this through a deeper understanding of behaviour and what it takes to change it. Whether it's winning new customers or driving existing customers to buy more, we design and implement communication programs focused on delivering profitable and measurable behavioural outcomes for our clients. Behavioural change is achieved by harnessing the most powerful agents of change, client owned assets. Our clients staff, customers, physical assets, digital assets and growing sources of associated data are at the heart of every solution. We focus here first because owned assets are the most influential channels in the marketing mix and often overlooked by traditional media agencies. We then leverage a growing number of paid communication channels to accelerate this behavioural change. We venture further into the commerce of our clients business to integrate customer and sales data with the growing sources of behavioural data produced from the new communications landscape. This allows us to link our remuneration directly to delivery of desired behavioural outcomes.

An Introduction Over the coming slides you’ll find a number of growing trends that have, or are in some way influencing the future of the financial industry. Not every trend will change the way we behave, in some cases the ideas presented may actually reaffirm the an existing behavior and as a result slowly disappear into the annals of internet history. In any case we hope that what we share provokes thought, inspires imagination or serves as a resource of innovation from around the world. Warm Regards Bohemia Group

10 trends changing the face of financial services

6.  Social Settlements 7.  Identity

8.  Cash Cloud

9.  Crowd Financing

10.  Visible Banking

1.  Embedded Generosity 2.  Butlered Banking

3.  Pervasive Payments

4.  Fin-formation

5.  Perkanomics

EMBEDDED GENEROSITY

A resurgence in societal values has forced businesses to think about how they embrace the n o t i o n o f ‘ g e n e r o s i t y ’ . Historically slow to adapt financial institutions are starting to grasp the importance of conscious capitalism and value add for consumers looking to support change.

Frictionless giving via ATM

UK ATM operator LINK announced that UK banks, building societies and cash machine operators had come to a unanimous decision to incorporate charity donations directly into the cash withdrawal process creating a frictionless giving process. The scheme will accept almost all cards issued by UK banks and donations can be made ranging from GBP 0.10 to GBP 10. The scheme is planned to roll out through 2012.

Give Pennies at purchase

UK based Pennies, billed as an ”electronic charity box", aims to provide a simple mechanism for people to donate between 1 and 99 pence to partner UK charities. Launched with the support of Domino's Pizza, Pennies gives shoppers the option to make a micro donation when they pay by debit card, credit card or electronically. Using the service simply involves tapping a single button on the Chip or PIN terminal in-store, or thought one click when shopping online. 100% of every donation is passed on with 75% of donated funds going directly to the retailers nominated charity and the remainder helping children, the elderly, the sick or disabled.

BUTLERED BANKING

As t ime and considerat ion continue to be eroded pragmatic consumers are increasingly looking to brands or service providers to provide an increased level of convenience and service in exchange for their hard earnt money and precious attention

Umbrella banking with Simple

New York-based Simple aims to make banking simple through “human” customer service, plain English policies and full disclosure and transparency around fees. S imple wi l l offer a range financial management tools and services, as well as debit/credit cards and cheque-ing accounts, but it will not handle cash directly, instead opting to partner with "back-end" banks to handle the nitty-gritty details, leaving the company itself free to focus on customer service. Because it enjoys the partnership of multiple banks Simple can also juggle its customers' money accordingly for the best rates.

Visa curates location based offers

Visa is launching its own location based discount service as it looks to capitalise on a shoppers physical presence in order to share timely and relevant deals to its customers. However where competitors

products require a ‘check-in’ Visa is experimenting with SMS with offers sent to users who opt into the new program. In its initial phase, clothing retailer The Gap is partnering with Visa with discounts being

sent to consumers in predefined zip codes and demographics af ter qual i fy ing transactions are made with their Visa cards.

PERVASIVE PAYMENTS

With smar t phone usage beginning to tip toward the majority consumers are hungry for financial utilities that better fit with their mobile life.

Visual Pay by Denske Bank

Danish based Danske Bank launched a free visual pay mobile app that allows its customers to simply snap a picture of their utility bill and instantly click to pay. The app is available across iOS and Android devices and is perfect for busy professionals who want to manage their admin whenever is most convenient.

Track & pay bills anywhere with PageOnce

Everyone has bills to pay and managing all those bills isn’t an easy task. My Bill Pay by Pageonce has built a solution that lets you aggregate all your bills in one simple, secure place. Payments can then be made via mobile bill pay anywhere anytime. Control your mortgage, rent, babysitter, power, electric, water, gas, utilities, garbage, cell phones, telephone, cable, satellite, internet, insurance, car loans, student loans, home loans, TV, credit cards, education fees, membership fees and many more bills on the go and at your conveniance.

FIN-FORMATION

As the abundance of information continues to grow businesses and consumers are looking for ways to access, order and find meaning in their personal stream of financial data.

Money Visualized with Money Dashboard

Money Dashboard is a personal finance tool that links with consumers existing online transaction accounts and credit cards. The service helps to aggregate all of an individuals spending in one place helping them to understand their habits and behaviors in more depth. Users’ dashboards show the latest t ransact ions, whi le budgeting controls helps guide consumers toward improved financial health.

Staying financially fit with Mint

Mint makes personal finance a breeze combining all of you bank accounts, credit cards, spending habits and transactional data in a single multi platform experience. Users can instantly see the breakdown of their monthly spend, set saving goals, manage budgets and visualise their financial health in real time.

PERKANOMICS

As exceptional service continues to become expected brands are looking at ways to provide perks and privileges to their most valuable or influential customers.

Citi Bank says ThankYou

Citi launched a free app in conjunction with American Big Box retailer Best Buy called ‘Citi ThankYou Rewards’. The app allows cardholders to purchase items at Best Buy using points they've accrued from Citi's ThankYou Rewards program; a system which awards points when cardholders make purchases or perform other banking-related tasks. Customers simply scan the barcode of any Best Buy item they wish to purchase or choose the items online. The app displays how many points are needed for each item, and then takes the user through the checkout process. Once the transaction has been completed, items can be picked up in-store.

AMEX rewards its non-direct customers

American Express have launched a deals portal called "American Express Connect" as a way to connect with their many non direct customers using bank issued AMEX cards. Each day member offers are released including 70% off Samsung Galaxy Tablets and 55% Kitchen Aid Artisan Mixers, which are only available to AMEX users who register their details with the program. Once registered members receive ongoing updates on not only the AMEX Connect offers but other member benefits.

SOCIAL SETTLEMENTS

With the promise of a cashless society comes the need for finance to be socialized. Restaurant bills and bar tabs can now be settled on the spot, amongst friends without the need for cash or IOY’s!

Split bills with Paydivvy

PayDivvy is a social bill payment web and mobile service from California. The service enables US customers to split, send or pay personal or group bills all from a single source. The social element makes it easier to col lect money from fr iends and acquaintances, both of which can be added together within the ‘group’ functionality. PayDivvy provides bank-level security, with its customers’ funds insured by the government owned Federal Deposit Insurance Corporation. The service only charges users a fee of 3.5% when they make ‘Instant Payments’ with their debit or credit card.

Fire friends cash on Facebook

The Commonwealth Bank of Australia recently released an innovative mobile payments application called Kaching. Kaching lets you pay any friend, family member, work colleague and more without needing to know their bank details. Simply select their mobile number from your contacts, add their email address or even use your Facebook friend list to send money or settle a bill.

IDENTITY

As the conversation around your virtual identity continues to rumble on the need for a verified p ro fi l e o n l y i n c re a s e s i n i m p o r t a n c e . G i v e n t h e penetration of online banking financial institutions are well placed to take advantage of this growing trend.

Me authenticated with MiiCard

•  l Set for launch in 2011, UK based miiCard’s goal is to solve the conundrum of online identification. Traditionally when an identity needs to be verified a consumer will need to physically provide authentication thereby removing the convenience of the online channel. The miiCard lets consumers skip offline identity verification by providing a third party validated identity to vendor websites. Consumers sign up for the miiCard and provide multiple identity points to increase their “level of assurance” opening up more vendor/service options online.

Face Pay with FaceCash

FaceCash, a mobile payment platform launched by one of Facebook's founders, allows consumers to pay for goods and services via their mobile at the register. The transaction is done via a free app that operates like a funded debit or cash card. FaceCash's security features include a photo of the user appearing on the merchant's monitor at the time of purchase.

CASH CLOUD

With convenience and access driving financial sentiment and behavior consumers’ are finally beginning to warm to the long touted utopia of a cashless society.

Pay with Square

Pay with Square is a mobile app from Square, Inc that allows users to pay at participating merchants without ever needing to take their credit card out of their wallet. When you are ready to pay your name and photo will appear on the cash register where the cashier confirms its you to complete the sale. Currently around 75,000 US merchants allow customer to pay with square.

Loyalty in the cloud with Paycloud

Launched by US based gift and loyalty programs operator Sparkbase Paycloud Mobile Wallet is a free app for shoppers in the Chicago area. Available for iPhone and Android devices, the app enables customers to track loyalty account status, redeem coupons and check-in, simply by scanning their smartphone at the counters of participating merchants.

CROWD FINANCE

As consumer opinion and distrust of financial institutions continues to plague the sector consumers are looking for alternative ways to access tradit ional financial products or services.

Friendsurance

friendsurance is a German initiative that lets an individual set up insurance through a group of friends. Individuals set up a community of up to 15 people who can help cover a claim in the case of an accident. These friends can be pulled in from a user's Facebook account, and, once they have become a member, can provide between EUR 30-50 to help. When a claim exceeds the amount the group can provide, friendsurance will then cover the rest. The 'social insurance' model means that many small claims can be handled without the need for involvement from friendsurance itself, as well as supposedly reducing fraudulent activity.

Civilized Money

In late 2011 CivilisedMoney began to crowd-source funds so it could launch as a P2P financial services provider. Based in the UK, it will offer an ethical and transparent alternative to traditional banks. By removing the middlemen (banks) the company will allow users to transact, lend, borrow and i n v e s t d i r e c t l y w i t h e a c h o t h e r. CivilisedMoney will take a 5% fee of funds secured through its products and will be fully regulated with regards to r isk and compliance.

VISIBLE BANKING

The ubiquity of reviews, opinions and experiences means that no financial product or service can maintain a veil of secrecy for long. As a result financial institutions are beginning to embrace a more transparent and inclusive form of banking practice.

Feedback on Finance with CIBC

Canadian bank CIBC have taken the brave step of introducing consumer reviews around their key product lines. Consumers have license to share exactly what they like or dislike about a product as well as rating it against a series of pre-defined criteria. As of mid 2011, 83% of reviews were positive.

Field tested with First Direct Labs

The ‘first direct Lab’ is a community driven innovation environment. Emerging banking products are field tested and fed back on before wide spread release. This increased level of transparency and openness between first direct and its customers ensures that the end users are getting the features they want as opposed to what the bank thinks they want.

Lets talk Want to talk to one of the Bohemians? Our kettle is always on so please feel free to drop by, pick up the phone or send us an email or tweet. Fresh tea always available at 72 Christie St, St Leonard’s, NSW, Australia, or get in touch with; Brett Dawson Managing Partner Email : brettd@bohemiagroup.com.au Mobile : 0402 848 556 Direct : 02 9277 1235 James Collier Digital Director & Partner Email : jamesc@bohemiagroup.com.au Mobile : 0466 211 976 Direct : 02 9237 6374

Hat Tips

•  Link – www.link.co.uk •  Pennies – www.pennies.org.uk •  BankSimple – www.banksimple.com •  Denske Bank - www.danskebank.se/sv-se/privat/Hembanken/Tjanster-i-hembanken/Pages/mobilbank.aspx •  Money Dashboard - www.moneydashboard.com •  CitiBank Thank You Rewards - www.thankyou.com •  SaveUp - www.saveup.com •  PayDivvy - www.paydivvy.com •  Commonwealth Bank Kaching - www.commbank.com.au/mobile/commbank-kaching/what-is-kaching.aspx •  CIBC - www.cibc.com/ca/how-to-bank/mobile-banking/reviews-mobile.html •  MiiCard - www.miicard.com •  Facecash - www.facecash.com •  Paycloud - sparkbase.com/products/paycloud •  Friendsurance - www.friendsurance.de •  CivilisedMoney – www.civilisedmoney.com •  Visible Banking – www.visiblebanking.com •  Trendwatching – www.trendwatching.com •  Visa – www.visa.com •  CopyBlogger – www.copyblogger.com