SOUTHEAST ASIA BANKING TECHNOLOGY & INNOVATION SUMMIT 2016

B u i l d i n g a C o m p e l l i n gD i g i t a l B a n k i n g E x p e r i e n c e

R a j a Te h M a i m u n a hC h i e f E x e c u t i v e O f f i c e r

keynote:BANKING ONINNOVATION

140%MOBILEPENETRATION

99%MOBILEPENETRATION

SMARTPHONES28%

FEATURE PHONES

67% 30%B A N K I N GPOPULATION

< 80%B A N K I N GPOPULATION

SMARTPHONES79%

FEATURE PHONES

21%

so how do we fare?

Significant domestic cash in circulation

14th biggest remittance recipient in the world, receiving more than USD10.5 billion in 2015(up 22% from 2014)

notable attributes

Significant domestic cash in circulation

14th biggest remittance recipient in the world, receiving more than USD10.5 billion in 2015(up 22% from 2014)

notable attributes

The advantage belongs to Indonesiato achieve a larger & more rapid growth rate…through the advanced technology available today

but first, some mind-blowing numbers…

3.2b Online Users44% of world population*

47b E-Commerce & Mobiletransactions & payments2011-2015**

4.9bConnected thingsUp 30% vs 2014***

25b

Source: *International Telecommunications Union **Capegemini ***Gartner Inc.

There are more mobile phones than there are humans on this planet

*Cisco VNI 2015 / Statista

201420152016

2017

2018

2019

1.74EB2.96EB4.87EB

7.80EB

11.97EB

18.24EB

A LargeNovel

Informationin the human

genome

Annual World Literature

Production

All US Academic Research Libraries

2/3 of Annual World Production

of Information

A TinyAnt

Height ofa Short Person

Length of Auckland Harbour Bridge

Length of New Zealand The Sun’s Diameter

DATA

SIZ

EIN

PER

SPEC

TIVE

…. but if you were to combine the data from ALL digital devices…the volume of data processed in 2014 was approximately 6 zettabytes*. 6

zettabytes? :6,000,000,000,000,000,000,000 bytes.

*Source: IDC

How much data is that?

“It’s challenging isn’t it?”

Among global banking organizations, there are three groups in terms of readiness

In Malaysia, we’re doing pretty well

*IBM Institute of Business Value 2015

You’re heading in the right direction too!

Realization of BTPN Wow to promote financial inclusion among the lower-income segmentAllowing banks to use agents as an extension of the bank in reaching out to previously unbanked communitiesReducing the burden on banking operations as banks will not need to build infrastructure in the form of branchesJoint-commitment from 3 of Indonesia’s largest cellular operators to offer affordable rates & servicesAggressive education campaign

Following the footsteps of some of the world’s most innovative digital banks

CASE STUDY 1 -

A greenfield venture that

became Poland’s 3rd largest retail

bank

CASE STUDY 2 -

A branchless concept that continues to

open new segments for its

parent bank

Deposit, withdraw, transfer money and pay for goods and services with a mobile device.

Singlehandedly gave 20million Kenyans access to financial services (out of 44 million total population)Instrumental in bringing Kenya to 75% in banking population, highest in Africa, ahead of economic giants South Africa, Nigeria, Ghana.

PAKISTAN

Setup a bank account in just 3 minutes from a mobile phone. Enables users to visit any

Easypaisa shops to deposit and withdraw cash.

Users can also pay bills, transfer money, check balance, manage pin codes and more.

6 million accounts to date, making Easypaisa Pakistan’s 3rd largest bank.

KENYA

CASE STUDY 3 -

How feature phones can still

make a difference in

financial inclusion

KENYA&

“AGGREGATORS”

COMPARISON SITES

PERSONAL FINANCIAL

MANAGEMENT SOLUTIONS

Increase pressure on

loyalty & price

Become customers’

primary interface

“INNOVATORS”

SOCIAL INVESTING

APPS

PAYMENT PLAYERS

LENDING PLATFORMS

Becoming main

source of investment

advice

Attack banks’

traditional core

business

Leveraging on Big Data

“DISRUPTORS”

P2P PLATFORMS

EASY-BANKING PROVIDERS

Cutting out banks as the middle-

man

Appealing to customers

Non-banks & 3rd Party Technopreneurs are Chipping Away At Banks’ ExistenceExpect competition when landscape matures…

First of its kind remittance function in partnership with Finnet, Telkom Indonesia

Indonesian workers open virtual account and identify recipients in Indonesia

Insert MYR into cash deposit machine, select ExpressRemit function and select recipient

Insert Ringgit and machine will convert value into Rupiah

Recipient in Indonesia will receive notification, collection code

Collect funds at participating Finnet / Telkom outlet

PAYMENTEXPRESS

Peer-to-peer mobile money transfer

Send to mobile phone numbers, not bank accounts

Select from address book, key in amount, generates code

3 ways for recipients to collect:

- withdraw from HLISB/HLB ATM, no cards needed

- transfer online, directly to their own bank accounts

- to a fellow PEx user, it goes straight into recipient’s acc.

Send reminders requesting for a PEx transfer

Customer opts to pay retail/food bill with PEx+

MERCHANT PAYMENT

Merchant enters bill amount on their mobile device

A QR code is generated for the customer to scanBill amount is transferred from customers’ account into the merchant’s account instantly.

many morebut my time’s up…+

Other notable functions & services…

“Malaysia’s Best Internet Bank 2015”Global Banking & Finance Review