innovation edge. simple bank (english)

7/29/2019 Innovation Edge. Simple Bank (English)

1/62

page 1Innovation Edge January 2012 |SIMPLE BANK

Disclaimer: This is conidential inormation or internal use only. This inormation must not be disclosed to any third party, must not be used or advertising and/or promotion activities and not bereproduced in whole or part unless authorized in writing by an authorized representative o BBVA group. copyright BBVA 2012

1JANUARY 2012

alsoin this

issueTrending issues

Technology trends

Winning the customers trust

Customer centric, the new banking

Top experiences

New areas o growth

simplebankThe way the worldcalls our customercentric bank


2/62



newbankingis...

the secret o

The world has, is, and will probably continue to strugglethrough a prolonged period o unparalleled and discontinuouschange. In order to address the shit, businesses and institutions

have been exploring new business/operating models. Some

industries are moving away rom traditional productocused

models and beginning to embrace customercentric models

Customercentric business models blur the line between traditional

notions o value propositions, channels, and customer relationships. Inthe new model, it seems that the Channels are seamlessly integrated and

oer an assortment o touch points. The customers, when choosing to

purchase and receive products, reely decide what kind o relationship

they want to maintain at any given moment, or any given reason.

simple


3/62



customers

Winning the

trustShit happens and, in the business world,organizations are looking or new business modelinnovations to minimize risks and to maximizeopportunities. The idea is clear: rom pushingproducts to cultivating customers relationships.


4/62



Shit happens and its happening everywhere and all o the time. Some wouldeven say that we are in the midst o a Coper

nican Revolution:

1989 The all o the Berlin Wall. We areree to choose our uture.

1994 Netscape Navigator browser leads

the way. We can ind out anything that

we dont know already.

2002 Blackberry hits the streets. Wecan get stu done anytime, anywhere.

2003 MySpace provides our space. We

no longer need advice rom an expert; we

can tap into the wisdom o crowds.

In the business world, the shit and its inluence are evident as well. Disruptive changes

in technologies, customers, competitors, and

the environment are wreaking major havoc

in the business environment. The last three

Global CEO Studies published by IBM shed

some light on the CEOs perception o change.

Over the last six years, CEOs and leaders

worldwide noticed:

2006 The recuency o change.

2008The velocity o change.

2010 The complexity o change.

Shift in business models

In order to tackle the shit, business leaders

and organizations have been exploring new

business model innovations to minimizerisks and to maximize opportunities. As a

result o the aorementioned explorations,

there seems to a clear transition rom prod

uctocused business models to customer

centric business models.

Shift in Value Proposition

Traditionally, or rom a productocused

point o view, Customers Relationships and

Channels were used to distribute Value

Propositions (products) to a given Custom

er Segment. In customercentric business

models, it seems that the Channels are seam

lessly integrated and oer an assortment o

touch points. The customers, when choos

ing to purchase and receive products, reely

decide what kind o relationship they want

to maintain at any given moment, or any

given reason.


5/62



We are ree to choose our uture

November 11, 1989 East Berliners climb onto the Berlin Wall to

celebrate the eective end o the citys partition, 31st December 1989.

The all o the Berlin Wall

1986


6/62



We can ind out anything that we dont know already

June 3, 1996 Founder o Netscape James Clark speaks June 3, 1996 in Chicago, IL. Clark, who

ounded the Fortune 500 computer systems company Silicon Graphics, ounded Netscape in April

1994 with Marc Andreessen which currently employs more than 2000 people in 17 countries.

Netscape lead the way

1994


7/62



We can get stuf done anytime, anywhere

March 5, 2004 A traveler walks past an advertisement or Research In Motions BlackBerry

handheld email device March 5, 2004 at OHare International Airport in Chicago, Illinois. According

to Don Morrison, chie operating oficer o Research In Motion, the maker o the BlackBerry, the

handheld email devices are used by numerous government oficials on Capitol Hill.

Blackberry hits the streets

2002


8/62



We no longer need advice rom an expert;

we can tap into the wisdom o crowds

January 20, 2007 MySpace.com cocreators Tom Anderson (C) with producer Eren Ramirez

(L) and Director/Producer Chris Barrett (R) rom the ilm Ater School poses or a portrait during

the 2007 Sundance Film Festival on January 20, 2007 in Park City, Utah.

2003MySpace provides our space


9/62



Demographic change and technology innovation have let avisible impact on the way that customers interact with theirbanks. In a world where the customer has taken the control,the banks o the uture must help each customer to reach hisindividual goals.

customer centric,the

new banking

In the past, banks built customers trust byensuring them stability and solidity bypromising to stay the same orever. But

the world is changing drastically. Custom

ers want stability and lexibility; they want

banks that can guarantee their security and

respond to their individual needs. In a world

where the customer has taken control, the


10/62



banks o the uture must become the guide

that helps each customer reach her individ

ual goals. In the new world, value has less

to do with understanding money, and every

thing to do with understanding people.

Currently in the retailbanking sector, the shit

is already underway. Many actors (including

traditional banks, de novo banks, and new

nonbank entrants) are exploring and/or ex

ecuting new business models. According to

the EFMA report, Transorming Retail Banking

to Relect the New Economic Environment,many banks realize that the customercentric

business models are the uture o retail bank

ing: The vision o most banks is to provide

their customers with a seamless, ully integrat

ed and uniorm experience across all chan

nels. (However) many banks are still years

away rom achieving this.

One o the main dificulties or the incumbent

banks is the spaghetti inrastructure o the

current operating model; which are separated

into silos, with redundancies in inrastructure

and services causing disparate experiences

or banking customers. A customercentric

model would require an agile inrastructure,

which is designed with the customer as the

starting point or products, services, and inrastructure. This approach would provide a

consistent and uniied customer experience

and, in turn, would allow the banks to capital

ize growth opportunities, such as crossselling

and upselling. O course, de novo banks and

new entrants have a competitive advantage

in that they do not have to worry about digesting the old spaghetti.

Given the new reality, the banks and other ac

tors are responding to the customercentric

era o banking. This report oers a closer look

at BBVAs unique response to the shit towards

customercentric banking; and also oerssome concrete examples o customercentric

retail banking experience o other actors; o

cusing on Flagships, Mass Market Retail Bank

ing, and Virtual Banking.


11/62



top experiences

worldwideIn this inevitable change towards customer centricbanking, BBVA is leading. Major changes to the BBVAbusiness model have already begun, with the renewalo the back-end systems platorm and continue withseveral ront-end projects.Banks like BNP Paribas, Citibank or HSBC are also

addressing the concerns o the customer-centric erao banking, and testing ways o creating a personalrapport with customers. The vision o most banksis to provide their customers with a seamless, ullyintegrated and uniorm experience across all channels.Here is how they do it.


12/62



top experiences

worldwide 1

BBVA sanswerAt BBVA, we have been ocusing on CCB since 2008; the bankhas been hard at work to ensure that the eiciency side (theback-end) o the business model would be ready to oer acustomer-centric banking business model. With the goal ooering complete back-end capabilities or the Customer-Centric Bank by 2013, BBVA has mapped out its inrastructuretransormation.


13/62



Each new technology delivers value, butthe beneit to our customers and to BBVAbuilds exponentially as the technologies are

integrated:

Customer Oriented Service and Productivity (Commercial Scenarios; New Core

Banking; Digitalization; Operative Process

es Redesign).

Customized Solution (New Core Banking;

Commercial and Risk Intelligence; Private

Cloud; MIS Electronic Financial Record).

Convenient and Seamless User Interace

(Commercial and Risk Intelligence; NICE;

Mobile Channel; Public Cloud; New Inter

net).

Collaborative Relationship and SmartProcesses (MIS Electronic Financial Re

cord; Collaborative Front End; New Inter

net; Customer Processes Redesign; New

Branch Design)

Customer Centric Banking (New Branch

Design; Lola (Online Banking Virtual As

sistant)

For the value side (the rontend) o the busi

ness model, in putting customers at the cen

ter o experiences that meet their distinctive

needs, BBVA is committed to three principles,

which guided in the design o the CCB model:

Accessible Distribution. BBVA gives

me dierent ways to do my banking, any

where, anytime. Convenient, trustworthy,

and pervasive, channels give customers arange o ways to it banking easily into the

shape o their lives.

Transparent Solutions. BBVA knows what

I need, and oers solutions that it my lie.

In a webbased world dominated by social

networks, BBVA has access to enormousamounts o customer dataand a rich op

portunity to provide its clients with solutions

custommade to suit their needs. Instead o

the expert, whose value comes rom know

ing more than his customers, the CCB will

be the tailor who knows his customers bet

terand can recommend each o themwhat its best.

Human Understanding. The people o

BBVA really listen to me. I can always get

the guidance I need to igure out how to

get where I want to go. Instead o selling

to their customers, BBVA sta will work

closely with themto help clients under

stand what they really want rom their i

nancial utures, and map out the steps

theyll need to get there.


14/62



Easy bank

ABIL ATM

Flagship

Kiosk

Walking into de Easy Bank, the customer steps into awelcoming space where he can do what he needs toget done, on his own or with help rom sta


15/62



Easy bank

ABIL ATM

Flagship

Kiosk

BBVA ABIL ATM revolutionary banking machine. ABIL is a revolutionregarding the traditional selservice. It has a large touch screen,direct access to all common operations and has a surace that allowssupport personal items to operate with greater comort.


16/62



Easy bank

ABIL ATM

Flagship

Kiosk

In BBVA Bancomer customers can access specialized advice andreceive personal reassurance, at the same time lagships allowBBVA to buid out its brand, as well as oer customers daytodaybanking via the easy bank area o the branch.


17/62



Integrated to customers social networks

and activities

Easy bank

ABIL ATM

Flagship

Kiosk

These automated banking centers are avaliableto customers 24 hours a day oering a hassleree way to do any o the everday transactionsthey need.


18/62



Based on customer insights and the three de

sign principles, the BBVA CCB model oers:

More channels, more granular, and high

ly unctional

Consistent, simple, and collaborative uni

versal user interace

Real time intelligent processes

Highly customized solutions based on

customer understanding

Open to social networks and the web

The BBVA Bank o

the Future: CustomerCentric Bank o 2020

Customer needs

Based on conversations and collaboration

with customers, BBVA discovered that there

are two orms o interaction with customers.

In other words, there are two kinds o inan

cial needs: My Money (Getting Stu Done)

and My Lie (Financial Well Being).

My Money. Because everyday transac

tions happen so requently, they oer the

bank a chance to create an experience

or customers that weaves deeply into

the abric o their ordinary lives. Examples

include: getting cash; making deposits,

changing address

My Life. Interestingly, customer modal

ity changes as they move between these

dierent needs. The same customer who

cares most about convenience when shes

perorming everyday transactions want to

spend a great deal o time researching op

tions when planning or the longterm. Examples include: Buying a home, planning

or retirement, saving or education

Touch points

Through a lexible network o virtual and

physical touch points, BBVA oers custom

ers a wide range o connections to the services they need, available when they need

them, in the ways that best it their lives.

By dividing our current branch model into

a more granular set o components, we will

create an array o options that enable cus

tomers to choose the banking experience

that eels most comortablethereby weav

ing their relationship with BBVA more ully

into our customers daily lives.

At the same time, this modular approach en


19/62



ables us to adapt our presence to the spe

ciic needs o dierent marketsor example,

to ocus on lowcost, more automated chan

nels in some regions; and a greater number

o lagship stores to serve various needs

such as oering specialized advice, reassurance, brand building, marketing, client attrac

tion and capture; as well as oer daytoday

banking via the Easy Bank area o the bank.

Anchored to the internet, this lexible, modu

lar array enables us to tailor our oerings to

the needs o dierent customers, while deliv

ering bank services across a wide range oregions eectively and eficiently.

Physical Touch Points

Flagship. Customers can access special

ized advice and receive personal reas

surance; at the same time lagships allow

BBVA to continue to build out its Brand, aswell as oer customers daytoday bank

ing via the Easy Bank area o the branch.

Easy Bank. Walking into the Easy Bank, the

customer steps into a welcoming space

where he can do what he needs to get done

on his own, or with help rom sta.

Kiosk. These automated banking cen

ters are available to customers 24 hours a

day oering a hassleree way to do any

o the everyday transactions they need.

BBVA assistant is available to help.

Point of Sale Banking & Pocket Bank.

Customers can do basic banking trans

actions while shopping, using the cashier

to perorm ATMlike unctions; and usetheir phone to perorm routine transac

tions through local businesses including

making deposits and getting cash. These

pocket banks extend BBVA reach to more

remote areas where customers cannot

easily get to a physical branch.

ATM. The new BBVA ATMs improve pri

vacy, ease o use, and simplicity. All opera

tions, including PIN entry, are completed

on a 19inch touch screen that displays

only inormation relevant to the transac

tion at hand. All cash, statements and re

ceipts are handled in and out through asingle slot.

Virtual Touch Points

Computer & Web Enabled Phone (Inter-

net Banking). By computer and by phone,

BBVAs customers get their banking done

by connecting through a simple, intuitive,

and amiliar interace: The Internet Bank o

the Future (IBOF). Lola, the online banking

virtual assistant avatar, oers humanlike

guidance whenever customers need it.


20/62



Remote Support. By phone, video coner

ence, or inperson, customers can connect

with BBVA specialists or advice on topics

ranging rom home buying to retirement

planning or or help with simpler trans

actions.

Enhaced value proposition

BBVA has developed a new Value Proposition,

based on the ollowing customer insights:

Bank the way they want to

Simple, easy and transparent relationship

Real time resolution

Complete control over their inances


21/62



Currently, the branch is the main touch pointor retail banking and, as such, banks arecontinuing to invest in it. In general, the banksare utilizing flagships to increase the value othe brand and/or use them as testing grounds

or new customer experience innovations.

top experiences

worldwide 2

in customer centricInnovative experiences

banking


22/62



Flagships

Barclays, United Kingdom

Inspired by retail lagships, such as Apple and Nike, Barclays opened its Piccadilly Circus lagship

store at the end o 2008 and announced that they would open 50 more in the near uture. Accord-ing to Barclays, their lagships are more accessible, comortable, and simpler or customers in an

attractive and engaging manner.


23/62



Flagships

BNP Paribas, France

Launched in late 2010, BNP Paribas lagship aims to Oer everyone a new experience, a site

open to all; reinvent the relationship with clients and prospective customers, through open-ness and responsiveness, whether inorming people directly or helping them to learn; turn the

branch into a lab promoting innovation and new eatures; and position BNP Paribas as a pio-

neer o innovation.


24/62



Flagships

Citibank, USA

Citibank lagships oer hi-touch, specialist advisory services, and smart banking technologies

to improve the experience or clients across all channels in core markets. With the collabora-tion with Eight, Inc (responsible or Apple Stores design), the irst prototype store debuted in

Singapore in 2008. Over 100 branch-level processes were reengineered. There are even our

patents pending.


25/62



Flagships

CommBank, Australia

Opened in March 2011, CommBanks lagship aims to oer, seamless service through state-o-

the-art technology and lexible banking solutions, (their) goal is to solve any inancial need (thecustomers) may have, all in one place. Commenwealth Banks lagship oers: an online booking

system, interactive touchscreens, NetBank kiosks, iPads and iPod Touches, a welcome concierge

sta, experienced banking specialists, and a proessional barista ca.


26/62



Flagships

Deutsche Bank, Germany

Deutsche Banks Q110 is uture orientated, simple, and dierent. Opened in 2005, the lagship

makes bank products more tangible: customers shop or inancial products in o-the-shelboxes, like in a supermarket. Q110 osters innovation culture at Deutsche Bank by providing a

playground or the bank personnel, who are periodically rotated.


27/62



Flagships

HSBC, Hong Kong

Opened in 2008, HSBCs lagship model was part o the banks HK$300 million commitment to

revamp its retail presence. People are shiting rom the more traditional, transactional bank-ing - over the counter - to more sophisticated inancial planning, . . . The next step will be ind-

ing out how to make use o this good experience to build customer relationship. The eicient

handling o basic transactions allows customers to sit down and discuss wealth manage-

ment issues.


28/62



Flagships

Raifeisen Bank, Switzerland

Designed by world-renowned design irm NAU, Raieisens lagship branch on Zurichs Kreuz-

platz dissolves traditional barriers between customer and employee, creating a new type oopen bank, a space o encounter. Advanced technologies make banking inrastructure largely

invisible. ... This lounge eels more like a high-end retail environment than a traditional bank in-

terior. The lagship opened its doors in early 2011.


29/62



Skandia, Sweden

Opened in early 2011, everything is aimed at creating the right experience or the client.

Skandia believes that a committed and involved client is also a more loyal customer andcan be a greater act as an ambassador or us. In todays world o consumer power, inan-

cial turmoil and demand or transparency even banks must be open and accessible: a place

that can make peoples dreams and ideas come through. The lagship opened in early 2011.

Flagships


30/62



Massmarketbanking

BRE, Poland (MultiBank)

Established in 2001, MultiBank is a combination o traditional banking and modern banking,

oering comprehensive services in the Financial Services Centers across the country. Multi-Banks strategy is to continue to attract young and sophisticated clients and accompany them

as their aluence increases over time remaining their bank partner or lie. As part o the

banks plan, the IT inrastructure design is streamlined so that BRE can oer multiple services

eiciently, by having a market leading open-architecture.


31/62



CheBanca, Italy

Launched in 2008, CheBanca is both a physical and virtual branch. Its an innovative model

based on clients emotions, with the goal o providing an ideal banking experience where theprimary attributes such as security, transparency, convenience, disinterest (treated as equals),

etc. Everything is geared towards the client: physical space, employees, user interaces, and

multi-channel integration; all orientated to satisy the clients needs or wants.

Massmarketbanking


32/62



GE Money Bank, Czech Republic

GEMB is all about service, providing easily accessible, simple, and beneicial products and ser-

vices to retail and SME clients. GEMBs strategy creates a we relationship by accompanyingclients to do something (task oriented) or to ask something (question oriented).

Massmarketbanking


33/62



Virtualbanking

ASB Bank, New Zealand

In September 2010 ASB Bank opened its door to the worlds irst virtual branch in Facebook. Custom-

ers can log on to the service via Facebook and have real-time, secure conversations with ASB sta.The general manager o ASB, Anna Curzon, states, Customers will be able to chat with our dedicated

team about any issues - rom home loan options, to simple savings tips, or how to access oreign cur-

rency or an overseas trip. The Virtual Branch will be able to carry out the same services as our con-

tact centre. Initially, the virtual branch was launched to gauge customer interest.


34/62



Virtualbanking

Simple, USA

Imagine, or a moment, a bank that doesnt suck. A bank that doesnt gouge you with ees. A

bank that doesnt treat you like crap. A bank that cares about design, but gets out o your way. A bank thats building a platorm or the uture o personal inance. According to Simple, while

your money is FDIC-insured and held with our bank partner, we provide the tools and customer

support you need to manage, understand, and automate your everyday spending and saving.


35/62



VirtualbankingVirtual

banking

Bobber Interactive, USA

Winner o FinovateSpring 2010 Best o Show award, Bobber provides young adults an innova-

tive FDICinsured payment and savings platorm that combines social media and game psychol-ogy to drive user acquisition, engagement and loyalty. The company is targeting the 30 million

Gen Y consumers. Bobber will also drive optin lead generation or inancial institutions. As

o December 2011, Bobber Interactive is in Beta (invite only).


36/62



SmartyPig, USA

Opened in 2008, SmartyPig was the irst online banking application that combines Web 2.0 with

social networking. SmartyPig allows customers to open goal-based savings accounts, earn acompetitive interest rate, invite their riends and amily members to help them reach their goals,

and then get the most money or their money through cash incentive and smart spending pro-

grams. SmartyPig has been deemed Bank 2.0 by leading American inancial technology

opinion makers or being the only true banking application that is social.

VirtualbankingVirtual

banking


37/62



banksBy 2020, most othe consumerswill demand retailbanking products andservices specificallydesigned to meetor exceed theirneeds or desires(such as mobility,

social, simplicity,transparency, etc.).The customer-centricbanking experiencemay help the banksto explore new

opportunities. Manyfinancial institutionsare trying to movetowards it. Some aredoing it in dierentways, but, are theyeective?

36%

7%57%

yes

planning

no

growth orthe new areas o

Have you ever changedyour main bank?


38/62



US population by generation

GEN X BOOMERS GEN Y

34%

33%

32%

Percentchange2010-2020-

2%

2010 45%

2015 37%

2020 29%

Percentchange2010-2020-

16%

21%

30%

37%

Perce

ntchange2010-2020+

16%


39/62



The shit towards customercentricbanking is maniesting itsel in dierentorms and lavors. The retail banks, both tra

ditional and de novo types, seem to have a

preerence or physical touch points, while

the new entrants preer virtual touch points,particularly mobile and internet.

Many banks and other inancial institutions

are trying to move towards a customercen

tric banking experience. Some are doing it

by oering eyepopping lagships; others are

oering simpler yet eective mass retail banking experience. Are they eective? As an ana

lyst rom Jack Morton summarizes, But is the

physical remodeling o a bank branch to emu

late an Apple Store, or the addition o more

inancial advisers to a banks sta, really go

ing to be enough to adequately redeine the

customer experience at a bank branch? Orare these simply nothing more than stopgap

measures and speed bumps along the way to

branch obsolescence?

As or virtual banking, there are also some

major changes as well; customers can access

comprehensive banking services 24 hours, 7

days a week, and 365 days o the year. Though

virtual banking oers accessibility to custom

ers, it also invites competition; as they are only

one click away. It seems that a radical change

in paradigm is underway.

Reiterating the inding rom EFMAs Retail Fi

nancial Services Strategic Insights and Best

Practices, The vision o most banks is to

provide their customers with a seamless, ul

ly integrated and uniorm experience across

all channels. (However) many banks are still

years away rom achieving this.

Opportunities for

Customer-Centric Banks

The customercentric bank branches may

help the banks explore new areas o growth.

Demographic change

and technology

innovation have left a

visible impact on the

way that customers

interact with their

banks. In a world

where the customers

has taken the control,the banks of the

future must help each

customer to reach his

individual goals.


40/62



The lagships or the massmarket retail

branches can be living labs; a ertile testing

ground to explore new ways to doing busi

ness, helping banks continue to develop and

deliver products that delight and wow the

customers. Also, the physical branches canincrease brand awareness and equity by o

ering tangible and realworld experiences

o banking to customers.

Also, many pundits have talked about the

changing o the guards: the decline o the

boomers and the rise o Generation Y, withGen X going where the majority goes. In re

gards to retail banking, a study conducted

Ciscos Internet Business Solutions Group

(IBSG) in February 2010, suggests that by

oering value propositions that satisies the

banking needs o younger customers (Gen

Y or Millennials), the banks may capturearound 5 to 10 percent o additional growth

by increasing the crossselling ratios, oer

ing targeted value propositions, and increas

ing customer acquisition.

Gen Y is going to be the biggest customer

segment or retail banks by 2020 and they

will demand retail banking products and

services speciically designed to meet or

exceed their needs or desires (such as mo

bility, social, simplicity, transparency, etc.).

Banks must correctly manage a smooth

transition rom a traditional Boomer orien

tated business o today to a Gen Y oriented

business o the uture to ensure the surviv

ability or sustainability o the retail business

by designing, developing, and executing a

sophisticated CustomerCentric bankingmodel.

Potential Bumps in the road

As previously mentioned, retail banking

providers must make a smooth and (hope

ully) proitable transition rom 2011 to 2020.

Banking providers must correctly managethe complete lie cycle o the customers; but

must do so or three distinct generations and

all at once! Who said it would be easy? As

one member o EFMA succinctly expressed,

instead o looking at the branch o the u

ture, banks should be looking at the uture o

the branches.

I the changing o the guards wasnt com

plex enough, new technologies will continue

to wreak havoc on some banking providers,

especially the traditional banks; as new tech

nologies and applications (such as mobile,

social, cloud, and who knows what else) will

orce the banks to react to consumers ex

pectation. At the same time, the new tech

nologies will provide pick and shovels to

both current and new competitors, making

it more dificult to strike gold.


41/62



In depthA list o links to other useul tools and resources that you may ind useul as asupplement to the inormation oered on the Simple Bank report.

Books & publications

Business Model Generation ramework. Alex Osterwalder, 2009

IBM | 2010 Chie Executive Oicer Study

Booz Allen Hamilton | The Customer Centric Organization. 2004

Ernst & Young | A new era o customer expectation: Global Consumer Banking Survey 2011

PricewaterhouseCoopers | Getting to Know You: Building a Customer-Centric Business Mod-

el or Retail Banks. 2011

Brett King, Bank 2.0 How customer behaviour and technology will change the uture o inan-

cial services

True Virtual Banking Has Arrived. Online Banking Report, 198 (October 2011)


42/62



On the web

Barclays pilots Microsot Surace in new lagship concept branch

Is It a Branch? Or a Store? Its Deutsche Banks Q110

Branch experience or GE Money bank

Flagship sets sail

Raieisen Bank Zurich by NAU

Banking uture vision

Citi - Japan Flagship Branch Prototype

Commonwealth Bank - Vision or 2013, were improving customer service

BBVA The Bank o the Future

CScout Trend: Q110 in Second Lie

Crea International projected and developed the new concept or CheBanca!

Bobber Interactive, Winner o FinovateSpring 2010

What is Smartypig?

In depth


43/62



Trending issues Technology trends

In the ollowingsection, we outlinethe upcomingtechnologiesthat will changeeverything, withpredictions on whatmay come o themin inancial industry.

Summaries o themost relevant newso selected topics that

have been publishedover the course o themonth based on itsrelevance to the Bankingindustry. The summarieswere prepared by theeditorial board. Furtherinormation is madeavailable or each giventopic.

alsoin thisissue


44/62



Trending issuesIn this section, readers will ind summaries o the most relevant news o selected topics that have beenpublished over the course o the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further inormation is made available or each given topic.

Core banking platormInternet irruption causes so much data in the world and

its support is very expensive. There are some trends

searching new ways o save money and energy.

New ormatsBased on design principles ocused on customer insights,

New ormats ofers retail banking customers more

channels which are more granular and highly unctional;

a consistent, simple, and collaborative universal user

interace; real-time intelligent processes; highly personalizedsolutions; and is open to social networks and the web.

Mobile bankingBanking industry is changing its appearance to the

customer to make their transactions easier. Relevant news

about mobile banking platorms (which enable customers

to access inancial services, such as transers, bill payments,

balance inormation and investment options) can be ound

here.

Enterprise 2.0Big companies are using 2.0 tools that makes

communications easier beyond email.

Mobile paymentsBig actors are launching new mobile payment solutions

that will be most important than cash in a nearly uture.

Social Media

Social Media are becoming more specialized indiferent areas and users begin to use them as a new

communication channel.

Digital MarketingDigital Marketing o brands use all orms o digital

advertising channels to reach consumers, including social

media, via a wide range o delivery mechanisms such as

mobile phones, sms/mms, display / banner ads, etc.

Crowd financeDigital Marketing o brands use all orms o digital

advertising channels A process where small amounts are

money raised or a deinite purpose, Crowd inance sources

unds collectively rom individuals. In other words, the

money comes rom a wide range o individuals and not

rom a single entity. Read more about it here.

App ecosystemNomadic uses o inormation are driving a new plethora o

applications and a wealthy market.

New Gizmo eraThere are new amazing devices that will make us wiser and

healthier.

New banking conceptsBanks around the world continuously explore new

approaches to strengthen customer relationships, both

in the virtual and the physical worlds; including Virtual

assistants, natural language search tools, new marketingtools, diferent segmentation (children, gen Y,) etc. This

section will cover news along these lines.

Join & enjoyGamiication has become an important trending issue,

and games are not going to be just games anymore.

Companies are taking this trend and using it as an essential

tool.

Smart cities + urban mobilityDiferent companies rom diferent industries are lookingor business models that let them be present in the near

uture.

HealthNew tools will let us take our health control and manage it

in a easier way,


45/62



Trending issues

Core banking

platform

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy

Smart cities +urban mobility

Health

Centros de datos queusan chips de telonosinteligentesNo es ningn secreto que los centros de datoscada vez se enrentan a mayores exigencias(hay que almacenar en algn sitio todosesos 800 millones de perfiles de Facebook).No es sorprendente que las compaas queoperan estos almacenes estn preocupadaspor los costes de uso de toda esa energa.En septiembre, Google anunci que susoperaciones globales usaban de orma continua260 millones de megavatios de potencia,aproximadamente un cuarto de la energagenerada por una planta de energa nuclear.

Source: technologyreview | 14 noviembre 2011


46/62



Trending issues

Core banking

platorm

New formats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

Virgin Money: WhatMaking Everyone Better

O Means at the BranchLevelWhat does making everyone better o mean

at the branch level to Virgin Money, whichyesterday agreed to acquire Northern Rockrom the British government or $1.18 billion?

Rather, than describe it, we oer some imageso Virgin Moneys current and uture branches.

Source: Bank Innovation. November 18, 2011


47/62



Trending issues

Mobile banking trends to watch outor in 2012

Mobile banking will continue to grow next year across

a multiple ronts. Not only will more banks jump

into mobile with optimized sites and application, but

inancial institutions will also build their existing mobile

programs with a variety o new services.

Source: Mobile Comerce daily, December 30, 2011

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

BBVA y Bankialanzan el pago con

tarjeta sinirma ni pinBBVA y Bankia han lanzado un nuevo

servicio conjunto que permitir alcliente realizar pagos de hasta 20euros con tarjeta slo con acercarla

a un lector y sin necesidad de irmar

recibo ni teclear nmero pin, segnanunciaron ambas entidades.

Source: EUROPA PRESS


48/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

Google persuades Spanish bank

BBVA to use the cloudThe bank would use Google applications like email, calendar, docs,

chat, video conerencing and other collaboration tools to achievea cultural change and get the whole company working together

across the 26 countries where BBVA is based.

Source: BBC News, January 11, 2012


49/62



Trending issues

Adis Google Checkout,hola Google Wallet

Nuevos movimientos de lacompaa lder de Internet con

los que reorganizar su oerta de

servicios online..

Source: Desarrolloweb.com,

November 21, 2011

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

El mvil reemplazar al pago eneectivo en 2016, segn PayPal.En 2016, utilizaremos nuestros telonos mviles como mtodo depago de bienes y servicios casi en mayor medida que las compras

en eectivo, con cheques o tarjetas. As al menos lo consideraPayPal, que ha publicado un inorme (Money: The Digital Tipping

Point), llevado a cabo por Forrester, segn el cual 45 millonesde britnicos utilizan ya un mvil y cerca de la mida de los 550compradores mviles encuestados (49 por ciento) aseguran que

se estn planteando utilizar su terminal para comprar bienes yservicios al menos una vez cada tres meses..

Source: IDG


50/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

Las aplicacionessociales corporativascrecern un 61% al aohasta 2016Segn un estudio de Forrester, esta industriagenerar 6.400 millones de dlareshasta 2016. Los medios sociales no selimitan nicamente a la actividad privaday de ocio, sino que es un paradigma TICcompletamente vlido para los entornosproesionales. En ese sentido, el mercadode las aplicaciones sociales para el mundo

corporativo crecer a un envidiable ritmodel 61% al ao hasta 2016, ao en que suvolumen alcanzar los 6.400 millones dedlares.

Source: IDG


51/62



Trending issues

core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

The Brands With the TopRelationship Qualityon Facebook

On Facebook, like in lie, its notenough or someone to say he loves

you. He has to prove it. In FathomAnalytics new Relationship Quality

Index, the toprated brands onFacebook tend to be the ones with

the most likes. YouTube (48 millionlikes), MTV (29 million), CocaCola (36

million), Starbucks (26 million) and

Disney (29 million) make up the topive. But because o other actors,

such as engagement and emotion,those brands dont all in precise

order o an counts.

Source: IDG


52/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd finance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

The crowundingrevolution kickstarts anew economic hopeInspired by the success o unds likeKickstarter in the US, the crowdunding

revolution in 2011 broke onto the shores oEurope and or a country like Ireland battlingto reinvent itsel and fight its way out orecession, the business model has achievedtremendous success in just one year.

Source: Silicon Republic. December 30, 2011


53/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

Best iPhoneApps o 2011

For iPhone owners, 2011 brought a loodo new apps, but in many cases they

struggled to outshine last years best.

Source: The New York Times, December 21, 2011


54/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

At CES, Expect More GadgetsTelling You to Get O the CouchI your resolutions or the new year include health and itness goals,several new products showcased at the Consumer Electronics

Show in January just might help you get there. Two o the 25

TechZones on the showroom loor at the Las Vegas ConventionCenter will be geared speciically toward digital health, with more

than 171 exhibitors showcasing products as part o the DigitalHealth and Fitness category.

Source: Wall Street Journal Online (All Things), December 30, 2011


55/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

Movenbank: Theworlds irst cardlessbank launches in alphaWith Google Wallet, Square, PayPal and other

initiatives emerging in the mobile paymentsspace, it was only a matter o time beore a

dedicated mobile, cardless bank emerged.Movenbank, dubbed the worlds irsteveryday cardless bank, launched its Alpha

site this weekend. Its an exclusively online,new model o bank that uses social, mobile

and gamiication technology.

Source: The Next Web Insider, October 2011


56/62



Trending issues

El Louvre usar la Nintendo 3DS comoaudiogua

El museo del Louvre sustituir progresivamente

sus guas tursticas electrnicas por la consola.

Para ello dispondr de cinco mil unidades.

El museo ha valorado su uncionalidad 3D y

la doble pantalla para orecer a los visitantes

una nueva manera de descubrir las obras quealberga la instalacin. La consola propondr

una visita en tres dimensiones y ocho lenguas

sin necesidad de emplear gaas para disrutar

del eecto tridimensional. El museo tiene prevista la inversin de un

milln de euros para mejorar las aplicaciones mviles, para telonos

y tabletas, del museo, que han sido descargadas tres millones de

veces. El uso de la realidad aumentada igura en sus planes.

Source: EL PAS

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

El in de losvideojuegosPhilip Tan, investigador y

director del laboratorio de

videojuegos MIT-GAMBIT, creeque su uso cada vez mayorhar que los llamemos solo

juegos.

Source: Technologyreview.

October 25, 2011


57/62



Trending issues

Crean un sistemaoperativo para controlarlas ciudades

Este novedoso sotware recoge todala inormacin de sensores colocados

estratgicamente en las ciudades

para saber en todo momento lo que

est ocurriendo y dar avisos en caso

de que algo no uncione.

Source: The Inquirer, 3 Octubre 2011

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

La internet de los

objetosTwine es una cajita de sensoresprogramable pensada para amantesdel do it yoursel, gente con ganas

de experimentar y cierta mano parala tecnologa. La gracia del dispositivo

es que cuenta con una interaz deSotware muy sencilla. No hace alta

saber programacin para conseguir,

por ejemplo, que enve un SMS anuestro telono cuando algo ocurre.

Source: The Inquirer, 3 Octubre 2011

La recarga inalmbrica para vehculoselctricos ya es una realidad

Aquellos emprendedores digitales que quieren hacerse un

hueco en los negocios on line an tienen problemas para

poner en marcha un proyecto.

Source: eWeekEurope | 11 noviembre 2011


58/62



Trending issues

Core banking

platorm

New ormats

Mobile banking

Enterprise 2.0

Mobile payments

Social Media

Digital Marketing

Crowd inance

App ecosystem

New Gizmo era

New bankingconcepts

Join & enjoy


Health

La iebre de las aplicacionesmdicas mviles en Kenia

Este novedoso sotware recoge toda

la inormacin de sensores colocados

estratgicamente en las ciudades para

saber en todo momento lo que est

ocurriendo y dar avisos en caso de que

algo no uncione.

Source: TECHNOLOGY REVIEW

Esta caja envatus datos mdicosdirectamente a lanubeQualcomm aspira a integrar los aparatos

domsticos de seguimiento sanitario yproporcionar una acceso ms sencillo alos mdicos. Una nueva plataorma de

Qualcomm propone una sencilla cajaque detecta las seales de aparatos dedecenas de abricantes distintos y los

enva mediante una conexin mvil auna base de datos en la nube accesible

tanto para el personal sanitario comopara los pacientes.

Source: TECHNOLOGY REVIEW


59/62



The ollowing section outlines the upcoming technologies that will change everything,with predictions on what may come o them in inancial industry.

The latest inormation available in the month

o October related to LTE/4G maintains this

technology trend as a priority or BBVA or

the medium term time rame. Operators are

beginning to take up LTE/4G.

Growth projections or handsets with em

bedded LTE/4G are very bullish. For exam

ple, according to InStat analyst Chris Kissel,

There will be over 154 million LTE subscrip

tions by 2015, suggesting a CAGR o 79.3%

rom 2011 subscriber base o 14.9 million.

He goes on to say, Not only is the orecast

or the number o LTE/4G handsets moving

rapidly upward, so, too, is the total number

o cellular subscribers, estimated to be 6.5

billion in 2015 globally.

Thus ar, there are 26 carriers deployments

o LTE/4G worldwide. Interestingly, in 2011, 3

carriers will account or 47% o all subscrip

tion in 2011: Verizon Wireless, MetroPCS, and

AT&T (all in the US). The 3 American carri

ers will have 7 million o the 14.9 million sub

scribers worldwide.

The demand or LTE/4G will be strongly

driven by the mobile video and the cloud,

as LTE/4G oers superior speeds (especially

while uploading).

LTE/4G, enabling high

speed networking in your

handLTE will redeine the ofice, making it increasingly mobile.From realtime group video conerences to connecting

via mobile phone to applications that run in the cloud,employees can work rom anywhere, changing theundamental nature o the work environment.

g

Technology trends


60/62



IPv6, ready orthe internet oeverything?IPv6 is designed to solve problemso IPv4: we are running out o IP

addresses and its hampering, among

other things, technological progress.

There isnt enough IP addresses or all

things to be connected. Beneits o IPv6

oers improvement in addressing and

routing, security, address translation,administrative workload, and support o

mobile devices.

g

Technology trends

IPv6 is designed to solve problems o IPv4:we are running out o IP addresses and its

hampering, among other things, technologi

cal progress. There isnt enough IP address

es or all things to be connected. Beneits o

IPv6 oers improvement in addressing and

routing, security, address translation, admin

istrative workload, and support o mobile devices. Also, IPv6 includes a set o possible

migration and translation plans rom IPv4.

The latest inormation related to IPv6 keeps

this macro trend as a priority or BBVA or the

long term time rame. The survey conducted by Ipswitch, Inc in May 2011 concludes

that most companies networks are not yet

ready or the transition to IPv6: 67% o cor

porate networks are not prepared to accom

modate the IPv6 protocol and, the majority

o Internet networking equipment currently

sold supports only IPv4.

Despite its immaturity, no one doubts that IPv6

will be the successor to the currently used In

ternet protocol IPv4. 24 hour tests were suc

cessully taken worldwide on June 8;(3) which


61/62



showed that IPv6 works without problems.

A Webzine survey conducted by Network

World (IDG Group) in July 2011 shows that in

the next 24 months 65% o companies plan

to introduce IPv6 or their internal networks,

and 70% o IT departments are planning toupdate their websites to support IPv6.

The above data suggest signs o a begin

ning o the transition rom IPv4 to IPv6. How

ever, the duration o this transitional period

(where both protocols coexist) is likely to

continue on or several years until it reaches

a ull implementation o IPv6.

An mentionable IPv6 implementation project is being developed by Orange Labs in

their Smart Cities Demo.


62/62

CONTRIBUTORS IN THIS ISSUE

Reyes Bolumar

ngela Cobos

Iker Chinchetru

Antonio Garca

Eugenio Garca

Miguel ngel Iesta

Carmen LpezRigoberto Sez

Alicia Snchez

Marcelo Soria

Mara Tena

Gustavo Vinacua

BBVA InnovationEdge is the result o acollaborative work doneby all the people who areinvolved in innovationat BBVA Group.

innovation edge. simple bank (english)

Documents