Digital Banking Innovation - "a Look of Tomorrow"

Digital Banking Innovation - "a Look of Tomorrow"

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  Digital Innovation alook of tomorrow Raja Teh Maimunah Chief Executive Officer Hong Leong Islamic Bank Chief Operating Officer Digital Innovation & Transactional Banking | Hong Leong Bank
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  Everything evolves withtime…
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  The evolution oftrade, money & banking The modern banking era traced back to the early Italian Renaissance period Monte de Paschi (founded in 1472) is the world’s oldest bank still in existence, and has now also adopted digital banking Trading & banking date back to the ancient days of Assyria & Babylonia – circa 2000BC
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  Milestones in themodern banking era Methodologies & Institutionalization <17th Century 18th Century 19th Century Bank Debts Birth of regulations and first central bank - Amsterdam Goldsmiths and promissory notes in London, which gradually became bank notes. Standardized printed notes with signatures Clearing facilities, security investments, cheques and draft protections First overdraft facility introduced by The Bank of Scotland Fully printed notes which didn’t require signatures Rapid growth due to Industrial Revolution NYSE Rosthschild & Baring saw their merchant banks dominate the banking world Globalization, Technology & Self-Serve 20th Century 21st Century US Federal Reserve Charge Card (1928) IMF & World Bank (1944). Credit Card (1958) ATM machines (1960s) Home Banking – using keyboard, TV and telephone (1981) E-banking and SMS banking (1990s) Non-FIs enter the financial community (2001) Global growth in Islamic Banking iPhone (2007) = mobile banking applications Merchant payments through mobile-generated QR codes Mobile money transfers Cardless ATM withdrawals
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  Needless to say,digital banking adoption has a lot to do with the global growth in internet speed, accessibility and devices ‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12 INTERNET POPULATION 100m 1b INTERNET SPEED (Mbps) 1.5 5 10 50 100 200 YEAR SMARTPHONE USERS 100m 500m >500 Malaysia: 39% tablet penetration On average, 2 smartphones for every 9 people on earth Malaysia: 140% mobile phone penetration Malaysia’s Penetration: 63% smartphone 39% tablet Malaysia: 63% smartphone penetration >2.6b >1b
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  It’s all withtwo things in mind – CONVENIENCE & PRODUCTIVITY Transferring Money Receiving Money 20mins-1hr 5mins 10mins 5-10mins 1-3 days 1min 5mins 20mins-1hr 1min 2mins with mobile / digital banking…
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  Banks’ digital brands– a different business approach vs. its conventional peers
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  What we’re doingat
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  Overall Strategy digitization digital products marketing & social media partnerships & merchants Enabling and expanding Connect’s online banking capabilities across various digital platforms, with emphasis on innovation in mobility. Development of online banking products to replicate offline banking offerings. Some online products will have enhanced benefits. Continuous communication through advertising to educate consumers on Connect and its services, as well as promotions and acquisition campaigns to increase adoption. Value Creation via expansion of reach, increased usability and ecosystem enrichment
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  Tailored - Userinterface is customized and responsive to devices for better user experience. Holistic – usable across all operating systems and browsers.
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  Peer-to-peer Mobile Money Transfer function that allows HLB Connect users to send money to a phone number, no sharing of account details necessary. Merchant payment function where customers can pay for their purchases using their Connect Mobile app. Connect Mobile app users can generate their own collection code on their mobile phones to withdraw cash from ATMs without using their ATM cards
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  Watch the videoon YouTube. Search “Pex Hong Leong Bank”
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  What does thefuture hold? * Pwc research : Retail Banking 2020: Evolution or Revolution Develop customer-centric business models, including social banking & commerce Optimising distribution Simplifying frameworks & operating models Enabling innovation & fulfilling the capability requirements to foster it Proactively managing risks, regulation & capital
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  terima kasih thankyou