Towards M-BankingWhat part of it is REAL? A software consultants’ perspective

Agenda Traditional Banking Towards M-Banking:What part of it is REAL? A software consultants’ perspective

MyBank-In-MyPocket ! Mob-IS: Infosys Mobile Information Systems Initiative

Questions?

Traditional Banking Full-service branches absorb up to 65% of banks operating

expenditures It costs about 50% more to serve a customer in a lobby Banks are losing money on 20% of their customers, and

merely breaking-even on 20% of their customers - BAI, USA

Cost of branch operations increasing

Source :Booz Allen Hamilton

Traditional Banking

Trade Finance Personnel

Customer

Customer has to visit several desks

DepositPersonnel

Customer

Loans Personnel

Customer

Internet Perspective

Everyone’s “Internetworked” with the customer

InternetCustomer

Deposits Loans

BrokingTrade

Finance

$1.07

$0.27

$0.10

Branch ATM Internet

Cost of Internet Banking lower and decreasing

The Internet Perspective

The Prophecy Internet Commerce is no longer a FAD ! Internet can be used to deliver all banking services. The Web has to be a strategic imperative at any

progressive bank Mobile devices (Cell-Phones, PDA’s) are getting

increasingly Internet enabled and will be yet another channel for the Internet Access… Hence for Mobile-Internet Banking

Towards M-Banking Convergence: Technology and Financial Services The statistics: An indicator or a market creator Are we talking about Multi-Channel Customer Service? What are the Banking Services that the mobile

customer would really want? Experience Note

Convergence: Mergers and Acquisitions !

Technology Convergence Financial Services Convergence

Wireless Technology

Internet Technology

Handheld Devices

Retail Banking

Mutual Funds

Stock Trading

Insurance

Providing Services Through Technology (reaching the Customer!)

Statistics: An indicator or Market creator?Over 3000 banks to offer Online Financial services (At least Accounts Inquiry)Users of Online Financial services growing at 220%Increasing number of Internet Only banks SFNB, Egg, WingSpanbank, Telebanc, Net.Bank & more.

40 million Bill Payments in US are through the Internet 30% of all US brokerage transactions are Internet generated

Mobility Communications and Commerce Ubiquitous Access

Convergence Voice, data, and video Wireless-Wireline

Critical Mass Number of subscribers Network scale Penetration

The Wireless Explosion

The number of digital mobile subscribers will grow from 210m

in 1998 to 1,045m in 2003 The number of digital handset shipments will grow from 143m

in 1998 to 535m in 2003 In some countries the penetration of mobile phones already exceeds 60%

The Internet Explosion

Fastest ever adoption rate (compared to radio, TV, Cable) The number of internet users will grow from 142 m in 1998 to 399m in 2002 Growing consumer acceptance of internet- based applications

The Wireless Internet

Competition Deregulation Differentiation through enhanced services

Co-operation Standards Partnership and Investment M&A

Sources: IDC, Forrester Research, US Dept. Of Traffic, The Yankee Group, Piper Jaffray

The Global Wireless Internet Market Is Exploding

Are we talking about Multi-Channel Customer Service?

• Reaching to your customers

• Reducing the Requirement- Service Distance

• Channels are the enablers of services

• The m-Channel is yet another one-Ofcourse which

adds/complements the existing ones

PC-Internet

Yours Services

Cell Phone-Internet (WAP)

Call Centers

IVRS

News papers

TV

ATM

Lets come down to the basics...Do we need m-Banking Services? A million dollar question?

Lets Assume a Wireless Access that is

• Fast

• Cheap

• Secure

Do I need Mobile

•A/C Transactions

•Check Alerts

•A/C status

Mobile Technology does reduce the requirement-to-service distance

Yesterdays luxury is tomorrows necessity

What are the RIGHT m-services?

A million dollar question !

Mobile Frictions !

Mobility of an entity is high if– Entity changes locations

– Entity requires the service too often

– Entity needs access to Information too often

Mobile Friction can be thought of as any resistance faced by the Entities

Mobile Frictions manifest themselves in the requirements to service distance

Mobile Technology Acts as lubricant

Degree of Mobility

Mobile Frictions

What is Mobility ?

Example ATM

What are the Banking Services that must be m-Enabled

Reduce the requirements-to-service distance have Medium Security Sensitivity are Emergency based or Instantaneous Reduce Bank’s operating costs

Services that ...

Towards e-Enabling Banks

The Infosys Way

A Solution Architecture

Infosys e-Enabling Process

Understand Design Implement Deploy Transform

The m-Enabled Services

The e-Enabled Services

We have e-Enabled 25 Banks so far….

Understand

Defin

e

Implem

ent

Not a Linear

Approach

m-BankAway

AlertsWorkflow

IntegrationRequests forms

Information Feeds

Core ModuleAccounts inquiry

Funds Transfer

Depository

Mail

Requests

Administration tool

P aymentsModule

CorporateModule

Bill Payment & presentmentEngine

Integrated Shopping Mall

Trade Finance

Cash Management

forex rates, tickers, market rates, reviews

Secure mail

facility

Key Functional Modules

WAP Banking Functionality Account Balances Last 5 Transactions Funds Transfers Bill Payments Check stoppage/status inquiry Loss of ATM Cards Requests like Account Statements, Demand Drafts Temporary Suspension

SMS Banking Functionality Separate M-Pin maintained for SMS Banking maintained by customer

himself Account Balances Last 5 Transactions Funds Transfers Bill Payments Stop Cheques Loss of ATM Cards Requests like Account Statements, Demand Drafts

An m-BankAway Experience Note

• Creating acceptability & growth• Generating returns from m-banking • Security Issues• Handling Varied Load of Customers

Acceptability & Growth

What to do ? Register Existing customers Bundle with Promotion offers Road shows in key metros Sustain web advertising Tie ups with popular cyber retailers, search

engines

ChallengeCustomer Attraction & Retention

Security

What to Do Understanding Risks & Threats Deploying Robust Security Architecture Deploying intrusion detection tools Regular Audits Update Security Implementation

ChallengeRobust Security Architecture

Varied Load of customers

What to Do Look at deploying server “farms” Use scalable platforms Use reliable communication carrier

ChallengeFast response to customer requests in all situations

What are the essentials Strategic Planning

– Choosing right target segments– Clearly defining the web roadmap

Organisational Changes– Learning Culture– Willingness to streamline business processes

Project ManagementClear project scopeAdequate fundingTop management commitmentChoosing capable partner(s)

The Infosys e-Enabling Offering

Consulting services for e-nabling banks

Technical consulting services on network & security architecture

Implementation & integration services Customization of applications

End-to-end services

Road BlocksThe WAP

Security hole!

Back-End Integration with

other Bank Operations

Cost of the Wireless Access

Identifying the RIGHT m-services

Speed of the Wireless Access

Unified

m-Transaction

Model

Future: MyBank-In-MyPocket !

Unified m-Transaction Model

Zero Paper Currency Society

Personalized MyBank

In-MyPocket

911-Bank !

Unified Bank Account

MyBank is My Money Manager

Mob-IS Infosys Mobile Information System Initiative

Mob-IS ServicesM-BankAway

OnScan

Application Development, Testing and Integration

Multi-Channel Portal Development

WAP, BlueTooth

High-End Technology Consulting

Powered by InFluxTM

Partners to build Information Infrastructure for the New Economy

Highest market capitalization among IT services companies listed on the NASDAQ

Forbes’ list of “20 for 2000” SEI-CMM level 5 and ISO-9001 Over 8000 people strong, and growing 220+ clients including 32 new clients in Q1 FY 2001

Infosys Today

Vision To be a globally respected corporation that provides

best-of-breed software solutions delivered by best-in-class people

Worldwide Recognition

“Murthy tops almost every Indian survey as the most esteemed manager… ” “Best managed Indian company... ”

“Infosys has been a trail-blazer in creating incentives and delegating power to employees... ”

“... the darling of many foreign investors - partly because its disclosure practices make it one of the most transparent companies in India... ”

“It has set new standards for disclosure and for investor relations in India... ”

A few of our customersInternet & E-business engagements

Fidelity InvestmentsAppleCBS SportslineAon InsuranceAmazon.comNordstrommySAP.comSamsungDellbeyond.comEC Cubedpreis24.comStaples.com

Strategic outsourcing relationships

Toshiba

Nordstrom

Goldman Sachs

Aon Insurance

Sainsbury’s

Apple

Aetna

American Express

Communication Projects

Jetstream

Quintessant

Avici

Cisco

Nortel Networks

Lucent Technologies

Bell Atlantic

Fujitsu

Belgacom Mobile

Paradyne

A few of our customersEnterprise Solutions &Package Implementation

Large development &reengineering projects

Maintenance, enhancements & production support

Visa

Nestle

Reebok

Belgacom Mobile

Nordstrom

Apple

Rockport

Dell

Southern California Edison

GAP

General Electric

Staples.com

Aon

Ericsson

Belgacom Mobile

First Data Resources

Aetna

Bell Atlantic

Goldman Sachs

JCPenney

Bank of America

DHL

Sainsbury’s

GTE

Nestle

DeLaRue

Adidas

Reebok

Belgacom Mobile

Toshiba

Apple

beyond.com

AlphaSmart

Rockport

Dell

Petopia.com

Nordstrom

Questions?

“Towards effectively deploying Mobile Technology for NexGen Banking ….”